UPDATE 1-ENRC, MMK Renegotiate Iron Ore Contract for 2012

Industry News 10:08:56AM Feb 22, 2012 Source:SMM

LONDON Feb 21 (Reuters) - Kazakh miner ENRC and Russia's Magnitogorsk Iron and Steel Works have agreed on a renegotiated iron ore supply contract for 2012, just over two months after the two companies settled a dispute over prices.

The miner and the steelmaker clashed late last year, when, according to market sources, MMK cut the volume of iron ore purchased monthly from ENRC after a disagreement on pricing, despite a contract that obliged it to take 1 million tonnes of iron ore per month.

Under the new contract, ENRC will supply a minimum of 8 million tonnes in 2012, the company said in a statement.

The contract is in line with prices for the region, currently at a discount of around 15 percent to world free-on-board (FOB) prices, ENRC said.

ENRC and MMK settled their dispute in December and ENRC has since also ceased an arbitration process through which it was seeking compensation from MMK for not fulfilling contractual obligations.
 

Key Words:  ENRC  iron ore 

UPDATE 1-ENRC, MMK Renegotiate Iron Ore Contract for 2012

Industry News 10:08:56AM Feb 22, 2012 Source:SMM

LONDON Feb 21 (Reuters) - Kazakh miner ENRC and Russia's Magnitogorsk Iron and Steel Works have agreed on a renegotiated iron ore supply contract for 2012, just over two months after the two companies settled a dispute over prices.

The miner and the steelmaker clashed late last year, when, according to market sources, MMK cut the volume of iron ore purchased monthly from ENRC after a disagreement on pricing, despite a contract that obliged it to take 1 million tonnes of iron ore per month.

Under the new contract, ENRC will supply a minimum of 8 million tonnes in 2012, the company said in a statement.

The contract is in line with prices for the region, currently at a discount of around 15 percent to world free-on-board (FOB) prices, ENRC said.

ENRC and MMK settled their dispute in December and ENRC has since also ceased an arbitration process through which it was seeking compensation from MMK for not fulfilling contractual obligations.
 

Key Words:  ENRC  iron ore