Force Majeure at Iron Ore Mine Could Affect Production at ArcelorMittal South Africa
10/09/2012 - On Friday 5 October 2012 SIOC issued a force majeure notice informing ArcelorMittal South Africa that its supply obligations will be suspended due to unprotected industrial action at its Sishen mine which affects production and operations.
SIOC supplies iron ore to ArcelorMittal South Africa. On Friday 5 October 2012 SIOC issued a force majeure notice informing ArcelorMittal South Africa that its supply obligations will be suspended due to unprotected industrial action at its Sishen mine which affects production and operations. The duration of the force majeure is unknown, but SIOC anticipates that it might endure for approximately two weeks.
The ArcelorMittal South Africa Saldanha plant will be negatively affected if the above continues for more than one week and a half as it has stockpiles to continue its operation for a limited period. The other plants have enough stockpiles and alternatives should the industrial action continue for an extended period.
Shareholders were advised of potential operational disruptions which might arise as a result of the current transport strike. The nature of these potential operational disruptions will be disclosed once these have been firmed up or become clearer.
