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KIO - Kumba Iron Ore Limited - Sishen Supply Agreement

Release Date: 19/04/2010 09:51
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 This SENS announcement follows Kumba`s SENS announcements of 26 February 2010 and 3 March 2010 and ArcelorMittal South Africa Limited`s ("Mittal") SENS announcement of 30 March 2010. As indicated in previous announcements, Kumba has informed Mittal that it is no longer entitled to receive 6.25mtpa iron ore contract mined by SIOC, at cost plus 3%, from the Sishen mine, given the fact that Mittal failed to convert its old order mining right. SIOC has also notified Mittal that the agreement (in relation to the supply of iron ore from the Sishen mine which was concluded in 2001 and which was premised on Mittal owning an undivided 21.4% interest in the mineral rights to iron ore) became inoperative in its entirety as of 1 May 2009, as a result of Mittal`s failure to convert its old order mining right. SIOC has, in the interim, tendered to supply iron ore to Mittal at market related prices. SIOC has continued to supply Mittal with iron ore from the Sishen mine and has recently invoiced Mittal for the deliveries for the month of March and requested Mittal to pay the cost-plus price directly to SIOC and the difference between the cost-plus price and the market related price into an escrow account (with a registered financial institution) pending the resolution of the dispute resolution process. Furthermore, SIOC has, on Monday 19 April, served its Statement of Claim on Mittal in order to progress the arbitration process. For further information please contact: Anne Dunn Tel.: +27 (0)11 502 7404 / +27 (0)82 448 2684 19 April 2010 Pretoria Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 19/04/2010 09:51:14 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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