ArcelorMittal USA is retaining Cliffs Natural Resources as its sole supplier of iron ore pellets to its US operations, according to an online media report.
The company has signed a long-term deal with the company to supply ArcelorMittal USA steel mills in Indian Harbour East, West and Cleveland.
John Brett, president and CEO of ArcelorMittal USA, said that the deal struck with Cliffs Natural Resources will provide the steelmaker with increased financial flexibility, better alignment of raw materials costs with pricing conditions in the market and the capability of adjusting volumes based on market conditions.
The exact terms of the deal are not being disclosed, but it is widely believed that the price paid by ArcelorMittal USA will vary based on market indices and general inflation.
Lourenco Goncalves, president and CEO of Cliffs Natural Resources, described the deal as 'mutally beneficial' and reinforces the strength of the business relationship between the two companies. He said that both companies 'recognise the importance of bringng sustainable value to our respective businesses'.
The new deal replaces all previous agreements between the two companies.
Source: North West Indiana Times.