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MMK pays $2.6 million fine to Kazakhstan's TransCom company

In the beginning of 2024, the Arbitration Court of the Chelyabinsk Region resolved a dispute between Russia's Magnitogorsk iron & Steel Works plant and Kazakhstan's TransCom, a member of Eurasian Resources Group (ERG).

MMK pays $2.6 million fine to Kazakhstan's TransCom company

The dispute, arising from a delay in the return of railcars, ended with a $2.6 million fine to be paid by MMK to TransCom.

At the centre of the dispute were 124 pellet wagons, which TransCom demanded to return to itself, as well as a fine for the retention of these wagons. According to the materials of the case, TransCom and ERG Sales AG concluded a contract, according to which TransCom was to transport ERG's goods within and beyond Kazakhstan. In doing so, ERG supplied Magnitogorsk iron & Steel Works with iron ore materials produced at the Sokolovsko-Sarbaisky Mining and Processing Production Association.

In 2022, Magnitogorsk Iron and Steel Works received iron ore materials from ERG 160 thousand tonnes of pellets, which were transported on 145 wagons supplied through TransCom, and returned only part of the wagons. The case was pending for more than a year from February 2023. In March 2024, TransCom clarified its claims, asking for a larger fine - in the amount of 244 million rubles (2,6 mln dollars). At the same time, the company abandoned its claims to return 124 wagons to it because Magnitogorsk Iron and Steel Works gradually returned the equipment to it from May to December 2023. In November 2022, MMK stated that the downtime of the wagons was due to reasons outside of its control. TransCom sued the company and its claims were satisfied.


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SteelRadar Insight - Sayı 1 (Haziran 2024)

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