On February 26, ArcelorMittal South Africa (ArcelorMittal SA), subsidiary of the world's largest steel maker ArcelorMittal, has announced that it has received notification from Johannesburg Stock Exchange-listed Kumba Iron Ore that it cancels the supply agreement entered into between the two companies in 2001, and advises that with effect from 1 March 2010, it will no longer supply iron ore to ArcelorMittal SA, on a cost plus three percent basis.
ArcelorMittal SA went on to state that it rejects Kumba's cancellation of the contract and is engaging the management of Kumba as a matter of urgency. The company says that if the matter is not resolved satisfactorily it will proceed with legal action.
ArcelorMittal SA said that a further announcement will be made next week.