| Mon 1 Mar 2010, 8:54 | | AGL - Anglo American Plc - Kumba Iron Ore statement |
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AGL
ANAAL
AGL - Anglo American Plc - Kumba Iron Ore statement
Anglo American Plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
1 March 2010
Kumba Iron Ore statement
Anglo American plc wishes to draw attention to an announcement by Kumba
Iron Ore Limited ("Kumba") in relation to the Sishen Supply Agreement.
The text of that announcement is copied below:
Sishen Iron Ore Company (Pty) Ltd ("SIOC"), a subsidiary of Kumba,
notified ArcelorMittal South Africa Limited ("Mittal") on 5 February
2010 that, with effect from 1 March 2010, SIOC would no longer supply
iron ore from the Sishen Mine to Mittal at a cost plus 3% price, but has
tendered to sell iron ore to
Mittal on commercial terms.
In terms of the Sishen Supply Agreement, which has been in effect since
2001,SIOC has, by virtue of Mittal`s ownership of a 21.4% undivided
share of the mineral rights to the Sishen Mine, acted to contract mine
at the Sishen Mine on behalf of Mittal, and to supply 6.25 million
tonnes of iron ore per annum, representing Mittal`s share of production
from that mine.
As a result of Mittal having failed to convert its old order mining
right in respect of its 21.4% undivided share of the mineral rights to
iron ore at Sishen Mine, as required in terms of the Mineral and
Petroleum Resources Development Act, SIOC notified Mittal that it was no
longer obliged to supply the iron ore at cost plus 3%. SIOC has offered
to sell an equivalent amount of iron ore to Mittal from the Sishen Mine
on commercial terms.
SIOC received no communication from Mittal until 26 February 2010, when
Mittal advised SIOC inter alia that it had declared a dispute in
response to SIOC`s
notification.
SIOC denies that it has repudiated the agreement and will respond in due
course to the undertakings sought by Mittal.
The effect of these developments cannot be quantified with certainty at
present, but may have a material impact on Kumba`s share price.
- End of Kumba announcement.
Notes to Editors:
Anglo American plc is one of the world`s largest mining groups. With its
subsidiaries, joint ventures and associates, it is a global leader in
platinum group metals and diamonds, with significant interests in
copper, iron ore, metallurgical coal, nickel and thermal coal, as well
as a divestment portfolio of other mining and industrial businesses. The
Group is geographically diverse, with operations in Africa, Europe,
South and North America, Australia and Asia.
www.angloamerican.co.uk
Sponsor: UBS
Date: 01/03/2010 08:54:25 Produced by the JSE SENS Department.
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