Mount Gibson Iron Ltd
(ASX:MGX) says it has been awarded US$114 million in damages from its dispute with Rizhao Steel Holding Group Ltd.
Rizhao did not fulfil its obligations under a long term agreement for the supply of iron ore during the GFC placing Mount Gibson in a difficult financial position.
As part of the proceedings, Mount Gibson says Rizhao had counterclaimed for wrongful termination of the agreements and misleading conduct.
Both claims have been dismissed by the arbitrator who ordered the company to pay US$114 million in damages as well as Mount Gibson’s legal costs.
Managing Director Luke Tonkin says the result vindicated the company’s decision to take legal action.
Mount Gibson Iron reported a profit of $42.6 million for the year to 30 June 2009.
