Ispat Iscor in iron ore talks with Kumba

Ispat Iscor in iron ore talks with Kumba

Recent market news suggests that South African steel producer Ispat Iscor initiated talks with Kumba Resources to obtain additional iron ore. The talks come following an agreement signed between Kumba and Transnet on March 7, 2005. Kumba announced earlier this week that it would invest Rand 3 billion ($511.8 million) in the Sishen mine to expand production up to 12 million tons per year. In return, Transnet would invest Rand 4.5 billion ($767 million) in its rail and port facilities to support Kumba's expansion plan. Iscor relies on Kumba's Sishen and Thabazimbi mines for 6.75 million tons and 2.6 million tons of iron ore respectively. Iscor forecasts that it will need an additional 2 million tons of iron ore this year.