ArcelorMittal SA to source 4 million tonnes of iron ore from Sishen mine
Friday, 06 Nov 2009
Reuters reported that ArcelorMittal South Africa would like to source up to 4 million tonnes of iron ore from the expansion of Kumba Iron Ore's Sishen mine if it wins a legal case between the companies.
ArcelorMittal SA said that it expects the arbitration, meant to resolve differences between the two companies over their Sishen Supply Agreement, to be concluded by late 2009 or early 2010. The dispute revolves around whether ArcelorMittal can benefit from the expanded section of Kumba's iron ore mine.
Mr Kobus Verster financial director of ArcelorMittal SA said that "We have indicated that we would like to source 4 million tonnes of iron ore from Sishen South."
Mr Verster that said his company would pay for a portion of the project's capital expenditure equal to the 4 million tonnes it hopes to get. The total cost of the expansion, expected to lift Kumba's output by a total of 9 million tonnes, is ZAR 8.5 billion.
