A captive mine owned and run by Sishen Iron Ore Company Proprietary Limited, SIOC has been transferred to ArcelorMittal South Africa Limited, AMSA.
In mail statement released to the JSE, Sishen Iron Ore said it has entered into a concrete agreement to transfer the closure and rehabilitation responsibilities of the mine to ArcelorMittal.
Sishen Iron Ore said under the former arrangement, it was supplying ore exclusively to ArcelorMittal from the mine but ArcelorMittal was accountable for 96% of the Mine’s current rehabilitation liability, with While Sisen Iron Ore was responsible for the site’s management and the remaining liability.
However, Sishen Iron The has now transferred total ownership to ArcelorMittal who is now ‘responsible for Thabazimbi’s closure and rehabilitation’.
Commenting on the agreement, Wim De Klerk, CEO of ArcelorMittal South Africa.“In line with our strategy to manage our costs more efficiently in what is a particularly difficult time for the local steel industry, this agreement allows us to take full management control of the processes and costs related to the rehabilitation liability at the Thabazimbi mine. In addition we will investigate the feasibility of different options to possibly restart operations at the mine in order to supplement the company’s sources of iron ore and with the potential of job creation”
Speaking for Sishen Iron Ore, Themba Mkhwanazi, CEO of Kumba Iron Ore Limited, the parent company of Sishen, said, “A transfer of the Thabazimbi mine to AMSA demonstrates Kumba’s continued support for local beneficiation. This also simplifies the contractual relationship between the parties around the effective management of rehabilitation. We are pleased with this development as it would be to the benefit of both companies and stakeholders.”