ArcelorMittal South Africa has announced that the company is in talks to discuss a new supply agreement for iron ore from Anglo American subsidiary Kumba Iron Ore's Sishen and Thabazimbi mines, to ensure long-term stability and security of iron ore supply for domestic use.
As SteelOrbis previously reported, in December 2012 ArcelorMittal South Africa reached an interim pricing agreement with the South African iron ore producer Sishen Iron Ore Co. for iron ore supply from the Sishen mine with effect from January 1, 2013 until December 31, 2013.
According to the supply agreement, Kumba supplies a maximum annual volume of 4.8 million mt of iron ore to ArcelorMittal South Africa at a weighted average price of US$65/mt.