A Satisfactory Marriage

After initially taking a hard line position in negotiations, Fortescue Metals Group and Bocimar announced that they had reached an agreement to settle the dispute that arose when Fortescue cancelled two contracts for the use of two vessels, one for ten years and the other for five years, that were concluded in February 2008. Under the terms of the new agreement, the companies have agreed to establish a shipping joint venture, which will charter three of Bocimar’s Capesize vessels of which two will deliver promptly. The third vessel will delivered in 2010.

The time charters were concluded at market rates for a period of 10 years and include a profit sharing arrangement. In consideration, Bocimar will receive $28 million in Fortescue shares on December 31, 2009 based upon a

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