Court approves Essar Steel Algoma iron ore supply deal

02 January 2017

Essar Steel Algoma Inc. (“Algoma”) announced today that the Ontario Superior Court of Justice has approved a Term Sheet between Algoma and Cliffs Mining Company (“Cliffs”) for the supply of iron ore pellets from January 1, 2017 through December 31, 2020, with a proviso for a one year extension.

The Term Sheet, when combined with the existing Pellet Sale and Purchase Agreement provides surety of supply for 70 per cent of Algoma’s pellet requirements.

Essar Steel Algoma Chief Executive Officer Kalyan Ghosh commented on today’s ruling, “This Term Sheet comes as a result of a competitive process that secures the economic provision of this critical raw material for Algoma.  It represents an important milestone in moving Algoma towards a successful restructuring and emergence from CCAA proceedings.”

Source – Sootoday