UK-listed miner Eurasian Natural Resources Corp (ENRC) has provided an update on the
iron ore supply contract renegotiated with Russian steelmaker Magnitogorsk Iron and Steel Works (
MMK) for 2012.
The revised contract is in line with regional
CIS pricing, which is currently at approximately a 15 percent discount compared to global FOB prices based on the Platts
iron ore pricing system.
ENRC has agreed to supply
MMK with a minimum of 8 million mt of
iron ore in 2012. Accordingly, ENRC has ceased the arbitration process commenced at the Federal Court of Australia seeking compensation from
MMK for not fulfilling their previous contractual obligations.