Kumba Iron Ore statement
03 March, 2010
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:
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.