The Department of Trade and Industry (the dti) views with grave concern the announcement today by Kumba Iron Ore (KIO) of the lack of progress between KIO and Arcelor Mittal South Africa (AMSA) in achieving an interim pricing arrangement for the supply of iron ore, pending the outcome of arbitration between the two parties on this matter.
The dti reiterates its view that a dispute between two companies should not escalate to the point that it risks imposing negative consequences on the economy. In particular that the current impasse should not lead to a situation where:
- Iron ore (which has previously been processed in the country) is exported in un-beneficiated form.
- Domestic steel production is disrupted.
- Domestic steel is priced even further above the internationally uncompetitive levels which have prevailed prior the dispute.
We therefore call on both parties as a matter of urgency to responsibly resolve this dispute in a manner which does not lead to negative economic consequences for the country. We wish to repeat our offer that has been extended to both parties that the dti is available to mediate on this matter, if requested by either party.
Notwithstanding the fact that this offer has not been taken up to date, it remains open to both parties. the dti will be assessing all options available to ensure that in the event of a failure of the parties to reach a responsible settlement, the economy does not suffer negative consequences.
Enquiries:
Sidwell Moloantoa Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za
Source: Department of Trade and Industry
