ArcelorMittal USA is facing a lawsuit that claims it is reneging on a $40 million deal to buy more than 200,000 tons of a type of coal used to make steel.
The suit filed by a subsidiary of Linthicum Heights, Md.-based Foundation Coal Holdings claims ArcelorMittal began asking to re-negotiate before the deal went into effect this month. Foundation's Kingston Resources says ArcelorMittal accepted just three barges of coal and now refuses to take more.
The suit filed Monday in U.S. District Court in Pennsylvania says ArcelorMittal agreed to pay more than $200 a ton for the coal last September. Steel prices have since collapsed, dragging down prices of coking coal.
Kingston is seeking damages and an injunction requiring ArcelorMittal to follow the contract.
Sourcr: Forbes
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