ArcelorMittal SA plans to join Kumba in case against ICT

ArcelorMittal South Africa, a local unit of global steelmaking giant ArcelorMittal, has decided to join South Africa's largest iron ore producer Kumba Iron Ore in its court case against Imperial Crown Trading (ICT). ICT is the current holder of a prospecting right over ArcelorMittal's previous 21.4 percent portion of the Sishen mine, in which Kumba Iron Ore holds the rights over the remaining 78.6 percent.

Kumba, which is a subsidiary of Anglo American plc, and Imperial Crown Trading have based their cases on the fact that a distinct right relating to 21.4 percent of the iron ore at Sishen exists and can be allocated, but ArcelorMittal wants a chance to prove that the 21.4 percent share in Sishen is not at play and that Sishen Iron Ore Company holds a 100 percent right on its conversion.

Meanwhile, as SteelOrbis previously reported, ArcelorMittal and Kumba have been at loggerheads over iron ore prices since February last year. Kumba decided to stop supplying the steelmaker with iron ore at a discounted price. The pricing dispute is currently the subject of arbitrational proceedings due to get underway next year.