Ispat Iscor initiates iron ore talks with CVRD
South African steel producer Ispat Iscor announced yesterday that it was negotiating new
iron ore prices with Brazilian mining giant Companhia
Vale do Rio Doce (CVRD).
Even though Kumba Resources meets most of Ispat Iscor's
iron ore requirements, Ispat Iscor's Saldanha plant must be supplied with imported
iron ore pellets because the particular grade necessary for the plant's operation is not available in South
Africa.
In 2004, Ispat Iscor relied upon
Brazil to meet only 5% of its
iron ore requirements. Regardless, the recent price increase enacted by CVRD is still expected to impact Ispat Iscor.