Johannesburg - Iron
ore miner Kumba Iron Ore [JSE:KIO] said on Wednesday it had yet to agree with
ArcelorMittal SA [JSE:ACL] on extending a pricing deal that expired
Kumba, a unit of global miner Anglo American [JSE:AGL], 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 R1.1bn more for iron ore in 2011 due
to the dispute.