Mount Gibson wins default payout

Mount Gibson Iron Ore has been awarded damages after legal action against a Chinese steel mill that defaulted on sales contracts.

Mount Gibson Iron Ore has been awarded damages after legal action against a Chinese steel mill that defaulted on sales contracts.
The miner was forced to fire staff at its Mid West and Kimberley projects following three Chinese steel mills defaulting on their contracts during the global financial crisis of 2008.
Mount Gibson will receive $127 million in damages from Rizhao Steel Holding Group, with the Pioneer Iron and Steel Company ordered to pay more than $25 million in restitution.
Managing director of Mount Gibson, Luke Tonkin was pleased with the result.
"I think it’s important that relationships between customers and suppliers are honoured by their agreement and it’s very clear that during the period from October to December the company was under enormous financial stress and it’s incumbent across the board and management to ensure that there is at least some recompense for the damage that was caused,” Tonkin said.

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