Indian steelmaker Essar Steel's Ontario, Canada-based subsidiary Essar Steel Algoma Inc. (Essar) announced on May 31 that it has filed an application with the Ontario Superior Court of Justice in respect of a dispute with Cleveland-Cliffs Iron Company (current name Cliffs Natural Resources) and certain of its affiliates (Cliffs).
According to an Essar statement, the dispute relates to the pricing and supply of iron ore pellets, which has been interrupted as a result of the pricing dispute, under the pellet sale and purchase agreement between Essar and Cliffs dated January 31, 2002. Essar has also commenced arbitration proceedings, in accordance with the agreement, to resolve the pricing dispute.
Essar said it seeks to ensure supply of iron ore pellets pending the resolution of the pricing dispute.