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
On 29 April 2010 ArcelorMittal South Africa Limited ("ArcelorMittal") released a
SENS announcement that contained the following statement:
"SIOC has further advised that it will continue to invoice ArcelorMittal South
Africa on a cost plus 3% basis until the dispute has been resolved, but will
seek to hold ArcelorMittal South Africa liable for the difference between a
price derived from an export parity principle and the contractual cost plus 3%
price, in the event SIOC prevails in the arbitration."
That statement is incorrect. The true position is as described in Kumba`s SENS
announcement of 19 April 2010, namely that SIOC requires ArcelorMittal to accept
its interim proposal that ArcelorMittal pay the contractual price (cost plus 3%)
to SIOC and the difference between that price and the interim price proposed by
SIOC into escrow or provide a suitable guarantee for its payment in the event of
SIOC being successful in the arbitration.
ArcelorMittal has thus far declined to accept that proposal or make a firm
counter-proposal regarding an interim price or payment mechanism.
SIOC has never advised ArcelorMittal that it will be content to recover the
difference between the two prices from ArcelorMittal in the event of it
succeeding in the arbitration. On the contrary, SIOC has advised ArcelorMittal
that should the parties not come to a firm agreement on an interim pricing
mechanism in the near future, SIOC will review the basis upon which it will
continue to supply iron ore to ArcelorMittal.
For further information please contact:
Anne Dunn
Tel.: +27 (0)11 502 7404 / +27 (0)82 448 2684
4 May 2010
Pretoria
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04/05/2010 15:15:02 Produced by the JSE SENS Department.
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