Otmane El Rhazi : AMSA flags iron-ore import plan as it seeks new pricing deal with Kumba

Otmane El Rhazi from Mining Weekly | Ferrous Metals Home.

Steel producer ArcelorMittal South Africa (AMSA) signalled on Friday that it was aiming to reopen historically fraught iron-ore pricing negotiations with Kumba Iron Ore, with CEO Paul O’Flaherty describing the current cost-plus arrangement as unsustainable in light of dramatic declines in iron-ore and steel prices. O’Flaherty even reported that AMSA was seriously investigating iron-ore importation options, which could be introduced as early as this year, starting with its Saldanha Steel mill, in the Western Cape. But he stressed that importation was not AMSA’s preferred option.