According to the Associated Press, Kingston and ArcelorMittal had a $US40 million contract signed in September for the supply and delivery of 200,000 tons of output, but after taking three barges in early January, Foundation is claiming that ArcelorMittal is refusing to accept any more.

Foundation is seeking a minimum of $75,000 in damages as well as an order for ArcelorMittal to comply to and complete its contract.

The deal inked last year outlined a price of $200 per ton for the tonnage from Kingston, according to Foundation’s suit filed this week in the US District Court for the Western District of Pennsylvania.

However, the downturn in the steel market left ArcelorMittal seeking a renegotiation with the producer by year’s end.

ArcelorMittal has not made an official statement on the situation, and the AP said the steelmaker had not filed a response to Foundation’s suit.

Kingston Resources operates two Central Appalachia room and pillar complexes, Kingston No. 1 in Fayette County and Kingston No. 2 in Raleigh County, both of which are low-seam operations.

Kingston 1 mines from the Glen Alum seam while Kingston 2 cuts from the Douglas seam.

Its other Central Appalachian mines include Laurel Creek, Rockspring and the Pioneer operations.