Trading in shares in ArcelorMittal South Africa was today halted at the request of the company. The company has received notification from Kumba Iron Ore that it will not supply iron ore to ArcelorMittal from its Sishen iron ore mine under the terms of the supply agreement entered into by the two parties in 2001.
ArcelorMittal rejects Kumba’s cancellation of the contract and is engaging the management of Kumba as a matter of urgency. If the matter is not resolved satisfactorily then ArcelorMittal South Africa will proceed with legal action.
A further announcement will be made next week.
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For further details contact:
Marion Green-Thompson, ArcelorMittal South Africa external relations manager
Tel: +27 (0)16 889 2184
Mobile
: +27 (0)83 384 3629
Marion.Green-Thompson@arcelormittal.com
SENS STATEMENT
26 February 2010, Johannesburg
ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1989/002164/06)
Share code: ACL
ISIN: ZAE000134961
("ArcelorMittal” or "the company")
ANNOUNCEMENT
Shareholders are notified that ArcelorMittal has received notice from Sishen Iron Ore Company (Proprietary) Limited (“SIOC”) cancelling the supply agreement entered into between the company and SIOC in 2001 ("the agreement"), and advising that with effect from 1 March 2010, it will no longer supply Iron Ore to ArcelorMittal, on a cost plus 3% basis.
ArcelorMittal has rejected SIOC's repudiation of the agreement and will institute urgent proceedings against SIOC to enforce the agreement if the appropriate undertakings are not received from SIOC..
Due to the price sensitive nature of this information, the company has requested that the JSE halt trading until a further announcement is made on Wednesday 3 March 2010.
26 February 2010
Vanderbijlpark
Sponsor to ArcelorMittal South Africa Limited
Deutsche Securities (SA) (Proprietary) Limited
For further information please contact:
Marion Green Thompson
Tel.: +27 (0)16 889 2425
Mobile +27 (0)83 384 3629