MOSCOW, December 1 - RAPSI. The Australian Federal Court froze the Australian-based assets of Russian steelmaker Magnitogorsk Iron and Steel Works' (MMK) worth $866 million on November 25, including MMK's five-percent stake in the Fortescue Metal Group, according to the court materials published on the Australian Flinders Mines' website.
MMK is the world's leading steelmaker.
MMK's major iron ore supplier ENRC Marketing AG filed a lawsuit with the Australian Federal Court against MMK and its Luxembourg-registered 100-percent subsidiary Mining Assets Management. The lawsuit was filed on November 25.
Switzerland-registered ENRC Marketing AG is a part of Kazakh-based ENRC.
ENRC Marketing AG is the primary iron ore supplier for MMK under a long-term contract valid until 2017. ENRC earlier reported that it may sue the Russian steelmaker for its failure to meet the purchase volume stipulated by the contract.
MMK made a $537 million bid for Australian-based Flinders Mines. The acquisition deal must be agreed upon with the Australian regulatory authorities and should be wrapped up by March 2012.