By Devon Maylie
JOHANNESBURG--ArcelorMittal South Africa (ACL.JO) said Monday
that Sishen Iron Ore, a unit of Kumba Iron Ore Ltd. (KIO.JO),
declared a force majeure on its supplies last week after an illegal
strike shut the mine.
Kumba said earlier in the day that it is losing 120,000 metric
tons of production a day at Sishen --the country's largest iron ore
mine. ArcelorMittal sources a large part of its iron ore supplies,
a key ingredient to make steel, from Sishen, the company said.
"The duration of the force majeure is unknown, but [Sishen]
anticipates that it might endure for approximately two weeks,"
ArcelorMittal said.
Of 12,000 miners employed at the mine in Sishen, 300 have been
on strike since last Wednesday, demanding an increase in their
monthly wages of 15,000 rand ($2,166). On Thursday the company was
forced to close the mine after the strikers blocked the
entrances.
ArcelorMittal said its Saldanha plant will be "negatively
affected" by the force majeure if it lasts for more than one and a
half weeks. It has stockpiles of iron ore to operate in the
interim.
"The other plants have enough stockpiles and alternatives should
the industrial action continue for an extended period,"
ArcelorMittal said.
Write to Devon Maylie at devon.maylie@dowjones.com
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