Dow Jones Newswires reported that Australian steel major BlueScope Steel said that miner Xstrata has lodged in court a AUD 120 million claim alleging the steel maker failed to honor contracts.

A BlueScope spokesman said that the company didn't enter into the contracts with Xstrata as claimed in its legal summons and doesn't consider it has any liability to the claims.

He said “BlueScope will defend the claims.”

He however added that “In light of the legal proceedings, it is not appropriate for BlueScope to comment further.”

The Swiss based miner filed a claim in the NSW Supreme Court, alleging Melbourne based Bluescope failed to take delivery of coal agreed to in the contracts.

(Sourced from DJ)