HomeBase MetalsKumba wants to be paid up front

Kumba wants to be paid up front

Kumba Iron Ore “’
must be paid in
advance by
Johannesburg, South Africa — MININGREVIEW.COM — 16 July 2010 – From August, Kumba Iron Ore Limited may only load trains with the raw material to deliver to steelmaker ArcelorMittal’s South African unit after receiving prior payments.

Revealing this in a statement issued here, Kumba “’ a unit of global miner Anglo American Plc “’ said attempts to end a supply dispute with the steelmaker had been unsuccessful, even after it proposed two new pricing systems for supplies from its subsidiary, Sishen Iron Ore Company

Both proposals had been rejected by ArcelorMittal.

“Accordingly, Sishen Iron Ore will adopt this pay-and-take basis in relation to the supply of iron ore to Mittal from the Sishen Mine from 1 August, 2010,” Kumba added in its statement.

ArcelorMittal was not immediately available to comment.

In February, Kumba “’ the world’s 10th largest iron ore producer “’ terminated the long-term deal under which it sold ore to the ArcelorMittal unit at a discount, and said it would then sell iron ore at market rates from March.

The dispute has been in mediation since.