Natural Resources Inc. has entered into a long-term agreement
to supply AK Steel Corp. with iron ore pellets for 10 years
starting in 2014.
The contracted volumes
will be sold at annual prices determined by a formula-based
pricing mechanism, Cliffs said Aug. 27. The minimum and
maximum prices were not disclosed.
"The annual price is
adjusted by multiple factors, including seaborne pricing for
iron ore and certain producer price indices," said
Cleveland-based Cliffs, which will continue to supply AK Steel
with iron ore pellets for the remainder of 2013 and 2014 under
the companies previous 1.5-million-tonne-per-year
Cliffs iron ore
supply agreements with its largest customer, Luxembourg-based
ArcelorMittal SA, will expire in 2015 and 2016, while its
15-year supply agreement with its second-largest customer,
Sault Ste. Marie, Ontario-based Essar Steel Algoma Inc., will
end in 2016.
Both West Chester, Ohio-based AK Steel and Essar Steel are
developing new U.S. iron ore supplies, reducing their
dependence on third-party iron ore.
A version of this article was first published by AMM sister
publication Steel First.