Czech FinMin says cancels $110 mln Mittal fine

...which had been levied for alleged overpricing of coke, the ministry said on Friday.

The ministry upheld Mittal's appeal against the fine by a regional finance directorate, claiming Mittal had been overpricing coke used for pig iron production supplied to rival Vitkovice Steel.

"The Finance Ministry... decided to cancel the first-level decision and return the matter to the Finance Directorate in Ostrava for a new consideration and ruling," the ministry said in a statement.

Mittal Steel welcomed the decision.

"The management of Mittal Steel Ostrava hopes that the decision will contribute to the cessation of unauthorised and unjustified attacks which damage the company and the entire Mittal Steel group," the company said.

Mittal Steel is separately locked in an arbitration dispute with the Czech government over the privatisation of Vitkovice Steel, bought by Russia's Evraz .

The government banned Mittal from taking part in the privatisation due to the coke price disputes. Mittal demands 20 billion crowns in compensation.

[PRAGUE/Reuters/Finance.cz]