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KIO - Kumba Iron Ore Limited - Sishen Supply Agreement

Release Date: 03/03/2010 15:32
Code(s): KIO
Wrap Text

KIO - Kumba Iron Ore Limited - Sishen Supply Agreement Kumba Iron Ore Limited A member of the Anglo American plc group (Incorporated in the Republic of South Africa) (Registration number 2005/015852/06) JSE Share code: KIO ISIN: ZAE000085346 ("Kumba") SISHEN SUPPLY AGREEMENT On 26 February 2010, Kumba issued an announcement indicating that its subsidiary, the Sishen Iron Ore Company (Pty) Ltd ("SIOC"), had notified ArcelorMittal South Africa Limited ("Mittal") on 5 February 2010, that, as Mittal had failed to convert its 21.4% undivided share in the old order mining rights which it held in relation to the Sishen mine in terms of the Mineral and Petroleum Resources Development Act ("MPRDA"), Mittal was no longer entitled to receive iron ore from the Sishen mine on a cost plus 3% basis. SIOC, however, tendered to supply iron ore to Mittal on commercial terms. This tender was repeated by SIOC on 25 February 2010. On 26 February 2010 Mittal advised SIOC that it had declared a dispute in response to SIOC`s notification. Subsequently, SIOC has made certain interim proposals to Mittal in relation to the supply of iron ore to Mittal from the Sishen mine, pending the resolution of the dispute between the parties. SIOC has also held discussions with Mittal in relation to the interim proposals and has continued the supply of iron ore to Mittal. SIOC has been advised by Mittal that it is currently considering SIOC`s interim proposals, which could result in iron ore being supplied to Mittal on an agreed basis pending the conclusion of an expedited dispute resolution process between SIOC and Mittal. The supply of iron ore to Mittal from the Thabazimbi mine remains unaffected by this process. SIOC is also engaged in discussions with the Department of Mineral Resources in relation to the residual 21.4% old order mining rights in respect of the Sishen mine. For further information please contact: Tebello Chabana Tel.: +27 (0)12 683 7067 3 March 2010 Pretoria Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 03/03/2010 15:32:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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