Fortescue Metals Group
(ASX:FMG) says it has won its arbitration dispute with freight company Armada Pte Ltd, with the miner advising damages incurred are less than first forecast.
In January 2009 Fortescue says it terminated its five year freight contract with Armada, after which Armada brought the proceedings against the miner seeking over US$70 million in damages.
The miner says it has always vehemently denied the claims and before the hearing offered to settle the dispute for US$4 million, that was later rejected by Armada.
The finalisation of the dispute brings to an end the settlement of all the shipping contracts suspended by Fortescue in December 2008 following the GFC.
With the case now settled, Fortescue says total damages incurred are around US$159 million, less than the US$171 million originally expected.
Fortescue posted a profit of $681.62 million for fiscal 2010.
