SAULT STE. MARIE, ON, Jan. 5 /CNW/ - Essar Steel Algoma Inc. (ESAI)
announced today that it is making a US $129 Million true-up payment to
its iron ore supplier, which the supplier claims represents the
difference between amounts invoiced in 2010 and amounts due under the
recent arbitration award with respect to a pricing dispute. ESAI is
paying the amount, on a without prejudice basis, to ensure continuity
of iron ore supply during the critical winter months. ESAI has filed a
court application to vacate the arbitration award which, if successful,
would result in a substantial rebate.
A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault
Ste. Marie, Ontario. As a fully integrated steel producer, the Company
derives its revenues primarily from the manufacture and sale of hot and
cold rolled steel products including sheet and plate.
SOURCE Essar Steel Algoma Inc.
For further information:
Manager Corporate Communications