Azerbaijan, Baku, Feb. 16 / Trend E. Kosolapova/
Kazakh company ENRC has agreed to provide the Russian Magnitogorsk Metallurgical Plant with the market discount under the contract on iron ore supply, Novosti-Kazakhstan reported referring to Prime agency.
ENRC is a major iron ore supplier to Magnitogorsk Plant. The contract on supplies was signed by the parties in 2007.
Meanwhile, prices on iron ore fell down significantly in the second half of 2012 and Magnitogorsk Plant began to buy raw materials from alternative suppliers, which offered lower prices. Moreover, Magnitogorsk Plant proposed ENRC to change contract terms taking into account the market situation. Kazakh company did not agree and appealed to the court. Later, however, ENRC withdrew its claim and the parties reported about peaceful settlement of the disputes.
"The parties have reached consensus. ENRC and Magnitogorsk Metallurgical Plant have agreed to review volumes and prices of supplies. Magnitogorsk Plant will have a market discount. Meanwhile, the volume of supplies are restricted compared to the previous contract," a source familiar with the negotiations told Prime.
Magnitogorsk Metallurgical Plant is one of the largest steel producers in the world and is a leading ferrous metallurgy enterprise in Russia.
Eurasian Natural Resources Corporation (ENRC) is one of the leading diversified natural resources groups with integrated mining, processing, energy, logistical and marketing operations. ENRC production assets are largely located in Kazakhstan. Moreover, the company operates in China, Russia, Brazil and Africa (the Democratic Republic of Congo, Zambia, Mozambique and South Africa). ENRC is the world's largest producer of ferrochrome on a chrome content basis and one of the world's significant iron ore and alumina producers.