(Adds details, background)
JOHANNESBURG Aug 1 (Reuters) – South African iron ore miner
Kumba Iron Ore said on Wednesday it had yet to agree
with ArcelorMittal South Africa on extending a pricing
deal that expired this week.
Kumba, a unit of global miner Anglo American, said
it would continue to supply ArcelorMittal’s South African arm
with iron ore on terms currently being discussed between the
two, without disclosing the terms.
Kumba in 2010 suspended its agreement to supply the unit of
the world’s top steelmaker with iron ore at a discount. The
suspension came after ArcelorMittal allowed a partial mining
right it held in Kumba’s Sishen mine to lapse.
Kumba now wants market prices for the ore, although
ArcelorMittal insists the preferential deal still stands.
Until an arbitration hearing resolves the dispute, the
companies had agreed an interim supply deal that expired on July
31, under which ArcelorMittal paid a fixed price of $50 per
tonne for ore for its Saldanha plant and $70 per tonne for its
inland plants.
ArcelorMittal has said it was confident the arbitration
hearing would rule in its favour, although it may take until
next year to resolve the dispute. The company had paid 1.1
billion rand ($133.90 million) more for iron ore in 2011 due to
the dispute.
($1 = 8.2151 South African rand)
(Reporting by Olivia Kumwenda and Agnieszka Flak)
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