Apr 19, 2010
Kumba wants iron-ore price difference to go into third-party accountBack
Engineering|Africa|ArcelorMittal South Africa|Kumba Iron Ore|Sishen Iron Ore Company|Africa|Sishen Mine|Iron-ore Miner|Mining|Steel|Iron Ore|Iron-ore|Julian Gwillam
© Reuse this
KIO said on Monday that its subsidiary Sishen Iron Ore Company (SIOC) had continued to supply AMSA with iron-ore from the Sishen mine and had invoiced AMSA for the deliveries for the month of March.
KIO added, however, that it had requested AMSA to pay the cost-plus price directly to SIOC and to pay the difference between that price and the market-related price into an escrow account with a registered financial institution.
Furthermore, KIO said, SIOC had served a statement of claim on AMSA on April 19, in order to advance the arbitration process.
AMSA spokesperson Julian Gwillam told Engineering News Online that he could confirm that that AMSA had received the SIOC's statement of claim and that the company was in discussion on what its response would be, as this was an issue of materiality.
AMSA announced earlier that it would be imposing a R600/t or 10% surcharge on every ton of steel that it sold from May 1 to cover the cost to AMSA of the new higher iron-ore prices, which has incurred the wrath of the South African government and local steel consumers.
Both KIO and AMSA have said that they would like the dispute to be settled quickly, but no arbitration date had been announced at the time of going to press.
KIO reiterated that the cost-plus deal became inoperative in its entirely from May as a result of AMSA failing to convert its old-order mining right on the April 30 deadline.
The cost-plus agreement, concluded nine-years ago, was premised on the steelmaker owning an undivided 21,4% interest in the mineral right.
AMSA previously received 6,25-million tons of iron-ore a year at the special price.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Metals News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...