| Wed 3 Mar 2010, 15:32 | | KIO - Kumba Iron Ore Limited - Sishen Supply Agreement |
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KIO
KIO
KIO - Kumba Iron Ore Limited - Sishen Supply Agreement
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
("Kumba")
SISHEN SUPPLY AGREEMENT
On 26 February 2010, Kumba issued an announcement indicating that its
subsidiary, the Sishen Iron Ore Company (Pty) Ltd ("SIOC"), had notified
ArcelorMittal South Africa Limited ("Mittal") on 5 February 2010, that, as
Mittal had failed to convert its 21.4% undivided share in the old order
mining rights which it held in relation to the Sishen mine in terms of the
Mineral and Petroleum Resources Development Act ("MPRDA"), Mittal was no
longer entitled to receive iron ore from the Sishen mine on a cost plus 3%
basis. SIOC, however, tendered to supply iron ore to Mittal on commercial
terms. This tender was repeated by SIOC on 25 February 2010.
On 26 February 2010 Mittal advised SIOC that it had declared a dispute in
response to SIOC`s notification.
Subsequently, SIOC has made certain interim proposals to Mittal in relation
to the supply of iron ore to Mittal from the Sishen mine, pending the
resolution of the dispute between the parties. SIOC has also held
discussions with Mittal in relation to the interim proposals and has
continued the supply of iron ore to Mittal.
SIOC has been advised by Mittal that it is currently considering SIOC`s
interim proposals, which could result in iron ore being supplied to Mittal on
an agreed basis pending the conclusion of an expedited dispute resolution
process between SIOC and Mittal.
The supply of iron ore to Mittal from the Thabazimbi mine remains unaffected
by this process.
SIOC is also engaged in discussions with the Department of Mineral Resources
in relation to the residual 21.4% old order mining rights in respect of the
Sishen mine.
For further information please contact:
Tebello Chabana
Tel.: +27 (0)12 683 7067
3 March 2010
Pretoria
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 03/03/2010 15:32:01 Produced by the JSE SENS Department.
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