Kumba Says ArcelorMittal Price Doesn't Apply to Phoenix Expansion Project

Kumba Iron Ore Ltd., embroiled in a dispute over the price of raw material it sells to Arceharga mesin pemecah batupage2lorMittal South Africa Ltd., said a 2001 accord setting out costs for its steelmaking customer doesn’t extend to a planned mine expansion. The contract for the Thabazimbi mine shouldn’t apply to the Project Phoenix expansion plan, Kumba said.

“Mittal made the election not to participate in Project Phoenix,” the unit of Anglo America Plc. said in an e-mailed response to questions. The Thabazimbi mine, in Limpopo, ships all of its ore to the metal producer at the same rate. The expansion adds 20 years of life to the site. “According to the agreement, it is the responsibility of SIOC to extend the life of the mine for as long as possible,” ArcelorMittal South Africa Chief Financial Officer Kobus Verster, said in a text message today, referring to Kumba unit Sishen Iron Ore Co. Ltd., which runs Sishen and Thabazimbi.