Steel Mills

Cliffs Lawsuit Against Essar Steel Algoma Dismissed

Written by Sandy Williams


A law suit filed by Cliffs Natural Resources against Essar Steel Algoma was dismissed without prejudice on Dec. 3 by the Court for the Northern District of Ohio, in recognition of Algoma’s current CCAA proceedings. The ruling includes the suit filed on January 12, 2015 by Cliffs for US $90 million and Essar Steel Algoma’s counterclaim filed February 13 for damages in excess of US $164 million.

Essar Steel Algoma’s Chief Executive Officer Kalyan Ghosh commented on the development, “We are very pleased with this decision by the Ohio Judge. We believe the issues between Cliffs and the Company can be effectively addressed in conjunction with the CCAA proceeding and, if required, the US chapter 15 Court. The Ohio Court’s action appears consistent with this belief.”

Essar Steel Algoma last week asked courts in Ontario and Detroit to reinstate shipments of ore that Cliffs Natural Resources terminated in October. The company wants Cliffs be declared a critical supplier so that Algoma can finish supplying its ore inventory before navigation on the Great Lakes ends for the season. 

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