Sishen Supply Agreement
17 May, 2011
Shareholders were previously advised that Sishen Iron Ore Company (Proprietary) Limited ("SIOC") and ArcelorMittal South Africa Limited ("AMSA")had reached an interim pricing agreement on 22 July 2010 ("the current interim agreement") in respect of the supply of iron ore to AMSA from the Sishen Mine for the period from 1 March 2010 to 31 July 2011.
In view of the fact that the arbitration proceedings between the two companies are anticipated to take place in the first half of 2012, SIOC and AMSA have now agreed to an addendum to the current interim supply agreement which extends the terms and conditions of the current interim agreement to allow sufficient time for the arbitration process to be finalised.
The new interim agreement will commence on 1 August 2011 and endure to 31 July 2012. The pricing of the iron ore to be supplied to AMSA remains the same as that in the current interim agreement, being US$70 per ton for iron ore despatched to AMSA's inland steel mills and US$50 per ton for iron ore despatched to AMSA's Saldanha Steel facility.