CHARLESTON, W.Va. (AP) ¿ Foundation Coal Holdings said Monday it has settled a lawsuit against steelmaker ArcelorMittal over a $40 million coal supply contract.
The suit accused ArcelorMittal, the world's largest steel producer, of reneging on a deal to buy more than 200,000 tons of coking coal to fire blast furnaces. Foundation said the settlement calls for ArcelorMittal to take "significant" volumes from its Kingston operation in southern West Virginia over several years, but offered no additional details.
"The negotiated settlement agreement is fair to both parties, provides greater visibility and certainty to Foundation, and represents an important step forward in the relationship between the two companies," Foundation Chief Executive James Roberts said in a statement.An ArcelorMittal spokesman declined to comment. The supply deal was signed in 2008, when coal prices more than doubled to at times $300 a ton on strong international demand. A lack of demand for steel has cut demand for coking coal sharply and prices have fallen into the $130 a ton range this year.