Rizhao Steel to sue Mount Gibson Iron against heavy fine

14:13, August 23, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese steel producer Rizhao Steel Holding Group Co., Ltd. said recently that it would sue Mount Gibson Iron, Ltd. to seek a "fair and reasonable" solution for the 114 million U.S. dollars in fines it faces.

Rizhao Steel was fined 114 million U.S. dollars by an arbitrator in Australia for the breach of a 15-year supply contract it reached with Australian iron ore company Mount Gibson Iron, Ltd. in July 2007.

According to the rules of international commercial arbitration, only when the parties involved agree to seek arbitration from an arbitration institution or arbitrator and approve the arbitration's legal effect, the arbitration process will start, said experts.

Rizhao Steel claimed that the breach of the contract was the result of the low quality of iron ore supplied by Mount Gibson Iron. According to the contract, Mount Gibson Iron would supply 2.40 million tons of iron ore to Rizhao Steel annually.

The Rizhao case is the first fine Chinese steel mills have faced for a breach of contract since the global financial crisis.

Industrial experts believe that the possibility that Australian iron ore suppliers follow Mount Gibson Iron's lead is very low. As a small iron ore producer, claim for compensation was their only choice.

By People's Daily Online

(Editor:祁澍文)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A coser performs in the third Western China Animation Comic Game (ACG) Festival in Chongqing Municipality, Sept. 29, 2011. The festival includes activities such as cosplay show, Hip-pop competition, forum and exhibitions. (Xinhua/Li Jian)
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
Hot Forum Discussion