US coking coal producer and exporter Walter Energy announced on December 4 that it has settled its dispute with Turkish flat steel producer Erdemir over 280,000 metric tons of premium coking coal that the steelmaker had contracted to purchase during the 2008-2009 contract year at $319 per metric ton.
At the end of the December 2009, it was reported that Walter Energy was to sue Erdemir following Erdemir's refusal to accept delivery of the last four shipments of the eight-shipment contract
Under the settlement, Erdemir will accept delivery of all remaining carryover tons of coal between April 1, 2010, and March 31, 2011.
Prior to the disputed deliveries, Walter Energy had already delivered half of the original contract total of 560,000 metric tons and received payment in full for the shipped volume at the original contract price.
"We are happy to have this issue resolved, and we look forward to continuing what has been a long and mutually beneficial relationship with one of our most important customers," said Victor P. Patrick, CEO of Walter Energy.