|
ArcelorMittal in agreement with Kumba |
|
23.07.2010:An interim pricing agreement between Kumba Iron Ore and ArcelorMittal South Africa (Amsa) yester day, saying critical issues arising from the dispute between the parties were still unresolved. Kumba and Amsa announced that they had reached an interim pricing agreement for iron ore supplied from Kumba subsidiary Sishen Iron Ore Company after the government stepped in last week to mediate a deal.
The conclusion of the interim agreement, which is in force until the end of July 2011, has seen Amsa withdraw its threat to shut down Saldanha Steel, its plant in the Northern Cape. The continuation of the operations ensures that up to 4000 jobs that were at risk are now secure and that steel exports continue.
But despite being concluded, the government remained cautious. “While government notes that the threats of retrenchment and production cuts have been withdrawn following the interim settlement, critical issues arising from the dispute remain unresolved,” |
|