KIO - Kumba Iron Ore Limited - Sishen Supply Agreement
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
This SENS announcement follows Kumba`s SENS announcements of 26 February 2010
and 3 March 2010 and ArcelorMittal South Africa Limited`s ("Mittal") SENS
announcement of 30 March 2010.
As indicated in previous announcements, Kumba has informed Mittal that it is no
longer entitled to receive 6.25mtpa iron ore contract mined by SIOC, at cost
plus 3%, from the Sishen mine, given the fact that Mittal failed to convert its
old order mining right.
SIOC has also notified Mittal that the agreement (in relation to the supply of
iron ore from the Sishen mine which was concluded in 2001 and which was premised
on Mittal owning an undivided 21.4% interest in the mineral rights to iron ore)
became inoperative in its entirety as of 1 May 2009, as a result of Mittal`s
failure to convert its old order mining right.
SIOC has, in the interim, tendered to supply iron ore to Mittal at market
related prices.
SIOC has continued to supply Mittal with iron ore from the Sishen mine and has
recently invoiced Mittal for the deliveries for the month of March and requested
Mittal to pay the cost-plus price directly to SIOC and the difference between
the cost-plus price and the market related price into an escrow account (with a
registered financial institution) pending the resolution of the dispute
resolution process.
Furthermore, SIOC has, on Monday 19 April, served its Statement of Claim on
Mittal in order to progress the arbitration process.
For further information please contact:
Anne Dunn
Tel.: +27 (0)11 502 7404 / +27 (0)82 448 2684
19 April 2010
Pretoria
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/04/2010 09:51:14 Produced by the JSE SENS Department.
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