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.