Kumba, ArcelorMittal SA still in talks on pricing agreement
Kumba Iron Ore said on Wednesday it had yet to agree with ArcelorMittal South Africa on extending a pricing deal that expired this week.
Kumba, the South African iron-ore unit of global miner Anglo American, said it would continue to supply ArcelorMittal SA with iron ore on terms currently being discussed between the two, without disclosing the terms.
Kumba in 2010 suspended its agreement to supply the South African unit of the world's top steel maker with iron ore at a discount. The suspension came after ArcelorMittal SA allowed a partial mining right it held in Kumba's Sishen mine to lapse.
Kumba now wants market prices for the ore, although ArcelorMittal insists the preferential deal still stands.
Until an arbitration hearing resolves the dispute, the companies had agreed an interim supply deal that expired on July 31, under which ArcelorMittal paid a fixed price of $50 per ton for ore for its Saldanha plant and $70 per ton for its inland plants.
ArcelorMittal has said it is confident the arbitration hearing will rule in its favour, although it may take until next year to resolve the dispute. The company paid R1,1bn more for iron ore in 2011 due to the dispute.
More in this section
- Disillusioned SA will learn to walk like Egyptians
- Chaskalson transcended his bias and loyalties
- EDITORIAL: The problem with ANC branches
- People were central to Chaskalson’s endeavours
- THICK END OF THE WEDGE: Zuma’s Get Out of Jail Free card
- NEWS ANALYSIS: ANC’s winner in Mangaung may still lack legitimacy