[miningmx.com] — KUMBA Iron Ore said on Tuesday it would extend its interim iron ore supply agreement with ArcelorMittal SA until July next year to conclude arbitration between the two firms.
ArcelorMittal South Africa, a unit of the world’s top steelmaker, has been at loggerheads with Kumba, a unit of Anglo American, over iron ore prices since February last year.
“(The companies) have now agreed to an addendum to the current interim supply agreement which extends the terms and conditions of the current interim agreement to allow sufficient time for the arbitration process to be finalised,’ Kumba said in a statement.
Under the terms of the deal, ArcelorMittal will continue to pay a fixed price of $50 per tonne for ore for its Saldanha plant and $70 per tonne for its inland plants for one year until July 2012.
Kumba last year suspended a preferential iron ore supply deal with ArcelorMittal and said it would supply the steelmaker at market prices after ArcelorMittal failed to convert its mining right over a 21.4% stake in Kumba’s Sishen mine.
ArcelorMittal insists the preferential deal still stands.
The steelmaker said last week that the arbitration hearing has been set for May next year.
