According to media reports, AK Steel Holding Corp. agreed to pay $37.5 million to end an iron ore pellet agreement with Magnetation LLC, which last week said it may cease operations.
AK Steel has a 49.9 percent stake in Magnetation, which filed for bankruptcy in May. However, Magnetation may reportedly terminate its settlement agreement with AK Steel if it receives an alternative offer that would avoid a shutdown.
AK Steel told media it expects to stop purchasing iron ore pellets from Magnetation near the end of September, and record a charge of $37.5 million during whichever quarter the bankruptcy court approves the agreement.
AK Steel also said it expects increased flexibility in purchasing pellets after its contract with Magnetation is terminated.