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Steel downturn leads to Fortescue legal tussle

  •  5 January 2009
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THE GLOBAL downturn of the steel business has been fingered as a key factor behind a $130m lawsuit being filed against Fortescue Metals by Greek shipping group Angelicoussis.

According to the Greek group, Fortescue cancelled a five-year charter and refused to take delivery of its vessel. It is suing the iron ore miner in the US court for its suspension of the long-term, cost-and-freight contracts.

The dismal state of the steel business has led to many steel producers seeking to delay or suspend shipments of Australian ore.

Fortescue has defended itself, saying it was merely exercising its rights under the shipping contracts.

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