ArcelorMittal South Africa has announced that it has signed a new iron ore supply agreement with Kumba Iron Ore which will regulate the sale of up to 6.25 million mt per year of iron ore by Sishen Iron Ore Company (SIOC) to ArcelorMittal South Africa, complying with agreed specifications from both the Sishen and Thabazimbi mines. The agreement will become effective from January 1, 2014, and settles various pending disputes between the two companies.
Accordingly, the price of iron ore sold to ArcelorMittal South Africa by SIOC will be determined with reference to the cost associated with the production of iron ore at the Sishen mine. The agreement also provides a possible extension offor the life of the Thabazimbi mine, securing jobs for 1,300 employees.