CRA was retained in a dispute in international arbitration between a worldwide producer of iron ore and a world-leading industrial company serving the mining industry. The claimant alleged interruption of its business and lost profits due to problems with the mill supplied by the respondent. CRA provided expert testimony on economic issues and the iron ore industry. These issues included the operation of a grinding mill and mining complex, factors affecting operation and downtime of the plant, the return to normal operations after the alleged business interruption, loss causation, supply and demand for iron ore, the costs of producing iron ore, iron ore market pricing, and the estimation of lost profits but for the alleged problems with the mill.
Mining arbitrations involving offtake agreements: Industry and damages considerations
Under an offtake mining agreement, a buyer or offtaker commits to purchase a specified quantity or portion of a seller’s future mining output. Offtake mining...