London, England — MININGREVIEW.COM — 2 August 2010 – ANGLO American “’ the world’s third largest resources group “’ says it is still committed to South Africa despite the recent challenges its iron ore business Kumba Iron Ore has come up against.
“We are committed to South Africa,” says Anglo American chief executive Cynthia Carroll.
Releasing the group’s interim results here, Carroll said the group’s business in South Africa “’ which included iron ore, platinum and coal “’ were performing exceptionally well.
“We see considerable growth opportunities in South Africa in the long term,” she added, saying that the mining rights issues with Kumba had not in any way deterred investment from South Africa.
Besides the arbitration with ArcelorMittal South Africa, which relates to the suspension of a favourable supply agreement, Kumba is currently in arbitration with the South African government over its awarding of prospecting rights at its Sishen mine in the Northern Cape to a third party.
Media reports last week suggested that South African mines minister Susan Shabangu would make a decision on disputed prospecting rights within the next week.
In the meantime, Anglo American remains excited about the outlook for iron ore.
The group this week increased its shareholding in Kumba by 2.8% through the exercise of options purchased in 2008 for US$301 million (R2.2 billion). This increased its shareholding in Kumba from 62.5% to 65.3%.