By Devon Maylie
JOHANNESBURG--ArcelorMittal South Africa (ACL.JO) and Kumba Iron
Ore Ltd. (KIO.JO), South Africa's largest iron-ore producer, both
said Wednesday that they are negotiating an extension to an interim
pricing agreement over the sale of iron ore, following a dispute
over the Sishen mine.
At the end of last year South Africa's High Court ruled that
Kumba, a subsidiary of Anglo American PLC (AAL.LN), was the full
owner of Sishen after a small company called Imperial Crown Trading
had been awarded a lapsed stake previously owned by ArcelorMittal.
The ownership is now being appealed by Imperial.
Kumba used to sell iron ore, a key ingredient to make steel, to
ArcelorMittal at cost plus 3%. That agreement is being disputed
while the Sishen ownership issue is still going through the courts.
In the interim, ArcelorMittal and Kumba agreed on an interim
pricing structure, which lapsed in July. The two companies said
Thursday they are currently negotiating an extension to the interim
pricing agreement.
Write to Devon Maylie at devon.maylie@dowjones.com
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