Kumba and ArcelorMittal South Africa have reached an interim pricing agreement for the supply of iron ore from Kumba’s Sishen mine.
The agreement would be retrospective to March 1 and would last until July 31 2011, the parties said in a statement on Thursday.
The deal followed mediation by the Trade and Industry Department.
The dispute arose when ArcelorMittal failed to apply to convert its 21,4% right in the Sishen mine to a new-order mining right by April 30, which led Kumba to cancel a cheap iron-ore supply agreement with the steel-maker.
Under the interim agreement, ArcelorMittal would pay $50 a metric ton for iron ore deliverable to its Saldanha plant, and $70 per ton or iron ore delivered to its inland plants. — Sapa