Rizhao Steel Holding Group has been ordered to pay an Australian iron ore miner US$114M for breaching a long-term iron ore purchase contract in 2008, when the financial crisis slashed commodity prices.
Rizhao Steel Holding Group has been ordered to pay an Australian iron ore miner US$114M for breaching a long-term iron ore purchase contract in 2008, when the financial crisis slashed commodity prices.
Mount Gibson Iron Ltd, the miner, said an arbitrator decided on the award after finding Rizhao repudiated its obligations under the long-term agreement.
Shandong-based Rizhao had counterclaimed for wrongful termination of the term contract and for misleading and deceptive conduct, but both counterclaims were dismissed.
It has to pay Mount Gibson the damages, plus interest of 6% percent and Mount Gibson's legal costs.
Chinese mill Shougang Corp indirectly holds a stake in Mount Gibson.
Mount Gibson’s Managing Director Luke Tonkin said: "Of the three customers against whom legal proceedings were commenced, Mount Gibson has now recovered US$25M by way of a settlement, and received arbitral awards in its favour of US$23M and US$114M.
"The settlement and the arbitral awards go some way to compensating shareholders for the events of late 2008.”
