Dispute with Sishen Iron Ore Company (Proprietary) Limited (SIOC)

On 15 December 2011 Judge Zondo, in the North Gauteng High Court review application brought by SIOC against the Department of Mineral Resources (DMR) and Imperial Crown Trading 289 (Proprietary) Limited (ICT) of which ArcelorMittal South Africa was joined at the request of SIOC, ruled that SIOC owned 100% of the rights in the Sishen mine and set aside the grant of the prospecting right to ICT. This ruling supports ArcelorMittal South Africa’s argument in the review application and the arbitration proceedings that SIOC was awarded 100% of the mining right in the Sishen mine. SIOC and ArcelorMittal South Africa agreed to postpone the arbitration proceedings, which were scheduled to take place in May 2012, until the appeal process in the High Court review application is finalised. We remain convinced that SIOC erred in cancelling our supply agreement and we have full confidence that the arbitration process will rule in our favour.