Pricing Dialogue--Iron-ore, steel belligerents have reportedly met on possible interim pricing agreement

摘要

South African iron-ore-miner Kumba Iron Ore (KIO) and steel group ArcelorMittal South Africa (AMSA) have reportedly held meetings recently on the contentious issue of an interim supply agreement, which KIO argues needs to be in place to safeguard continued supply of material from the Sishen mine, in the Northern Cape. Such an interim arrangement, should one be agreed, could remain in place for the duration of an arbitration process, which was precipitated by KIO's move of February 5 to cancel a 2001 supply agreement. The agreement entitled AMSA to 6,25-million tons a year of material from KIO's Sishen Iron Ore Company (SIOC) on a cost-plus-3% basis, struck at the unbundling of Iscor into separate mining and steel companies. However, KIO argued that the deal was no longer valid as AMSA had failed to convert a 21,4% undivided share of the mineral rights at Sishen ahead of the April 30,2009, deadline.