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% 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