Cliffs Natural Resources, which owns and operates several Minnesota iron mining operations, announced Tuesday that it is ending its sale of taconite pellets to Essar Steel Algoma in Sault Ste. Marie, Ontario - and Essar has responded with a temporary restraining order against the termination.
The termination of Cleveland-based Cliffs' pellet sale and purchase agreement with Essar, effective Monday, was due to Essar's "multiple and material breaches under the agreement," according to Cliffs' news release Tuesday.
"While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement," Cliffs stated in the news release.
In response, Essar filed a temporary restraining order against Cleveland-based Cliffs' termination of the agreement.
"The matter of supply is currently in dispute and before a federal judge in Cleveland, Ohio. Essar Steel Algoma fully expects Cliffs to honor the supply agreement until such time as the matter has been justly resolved," Essar stated in its news release Tuesday.
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Essar's construction of a taconite plant in Nashwauk has created tensions between the two companies. Lourenco Goncalves, chief operating officer of Cliffs, told the News Tribune in January that the plant is threatening Cliffs operations because it will create a glut of taconite in the U.S.
