Johannesburg, South Africa — MININGREVIEW.COM — 18 March 2010 – South Africa’s Kumba Iron Ore “’ a unit of mining giant Anglo American Plc “’ has announced that it intends appealing against the granting of a prospecting right at its Sishen mine to a third party.
The 21.4% stake in the mining right in Kumba’s Sishen mine was previously held by ArcelorMittal South Africa, entitling the steel maker to receive iron ore from Kumba at a discount. Kumba terminated the preferential deal with the steel maker, claiming that ArcelorMittal South Africa had failed to renew its mining rights in Sishen as per South African mining laws.
Kumba said last month it would only sell its commodity to the steelmaker at market rates from March 1. Kumba said its unit “’ Sishen Iron Ore Company “’ had applied for ArcelorMittal South Africa’s stake last May, but authorities had granted a prospecting right over the share to a third party instead.
Meanwhile ArcelorMittal South Africa says the long-term preferential supply agreement signed with Kumba in 2001 is still valid, and the two companies are in talks to resolve the dispute.