TORONTO (miningweekly.com) – US coal miner Foundation Coal has reached a settlement agreement to end a dispute with ArcelorMittal, the firm said on Monday.

Foundation had previously launched legal action against the steelmaker, claiming breach of contract, but ArcelorMittal has now agreed to take delivery of “significant volumes” of metallurgical coal from Foundation's Kingston mine in 2009 and future periods.

“The negotiated settlement agreement is fair to both parties, provides greater visibility and certainty to Foundation, and represents an important step forward in the relationship between the two companies which we hope will be long-lasting and successful going forward," Foundation CEO James Roberts said.

The company said last month that a refusal by ArcelorMittal to accept contracted shipments had reduced Foundation's earnings by some $15-million in the first quarter.

The coal miner expects to ship between 70-million and 73-million tons of coal in 2009, and 70-million to 74-million in 2010 and 2011.

Around 99% of 2009 shipments are already committed and priced, and 75% for 2010.

Alpha Natural Resources, the biggest supplier of metallurgical coal in the US, announced on May 12 it agreed to buy Foundation Coal for about $1,5-billion in shares, creating what will be the nation's third-biggest coal miner.

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