The Chinese steel mill Rizhao Steel Holding Group Co Ltd. was arbitrated to pay a contract-breach compensation of about 700 million yuan ($114 million) to the Australian Mount Gibson Iron Ltd., said the latter Tuesday.

The arbitrator deemed Rizhao had not fulfilled its obligations in a long term iron ore supply contract with Mount Gibson and caused the latter party a loss of $114 million, Mt Gibson said in a statement.

In July 2007, the two companies signed a 15-year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson.

But due to the 2008 financial crisis and price downturn in the international iron ore market, many small steel makers, including Rizhao, were unable to fulfill their duty stipulated in their contracts.

However, the Chinese steel mill’s case is far from unique. Previously this year, Mount Gibson received $25 million and $23 million in compensations from disputes with a Hong Kong company and an Indian company, reports said.