Save
Print[Ferro-alloys.com]Kumba believes a Supreme Court of Appeal ruling in the battle over mining rights at its Sishen mine may make it more difficult for steelmaker Arcelor Mittal to have its cheap iron ore supply contract reinstated.
Kumba said that the supply agreement, which entitled ArcelorMittal to an annual 6.25 million tonne of iron ore at cost plus 3%, lapsed when the steelmaker failed to convert its 21.4% right in Sishen by April 30th 2009.
ArcelorMittal said that it could not apply for conversion as a full 100% new order right was awarded in 2008 to Kumba's Sishen Iron Ore Company.
Iron ore supplies have since been covered by an interim agreement. The latest deal, still at discounted rates but at significantly higher prices than cost plus 3%, was brokered after the intervention of Trade and Industry Minister Rob Davies. Final arbitration over the supply contract can now proceed following the supreme court ruling on Thursday.
The court ruled that ArcelorMittal could have applied for a conversion of its stake, but that its failure to do so meant SIOC has been the exclusive holder of mining rights over the Sishen properties as of April 30th 2009.
A spokesman for Kumba said that "As the court has held that Amsa could have converted its rights, but failed to do so, this ruling does favour SIOC's argument that the contract lapsed."
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Online inquiry
Contact
Tell Us What You Think