The transfer of ownership of the Thabazimbi iron-ore mine, from Kumba Iron Ore to steel producer ArcelorMittal South Africa (AMSA) has been finalised, Kumba said on Friday.
Kumba in early 2017 agreed to transfer the mine, in Limpopo, to AMSA, for R1, plus the assumed liabilities.
Until 2014, the mine was a captive mine owned and run by Kumba subsidiary Sishen Iron Ore Company, but was funded by and supplied ore exclusively to AMSA. The transfer of the mine to AMSA will simplify the arrangement, with AMSA to be solely responsible for the closure and rehabilitation of the mine, which ceased operating in September 2016.
The transfer had been dependent on certain conditions being fulfilled.
“The conclusion of this process allows us to take full ownership of the Thabazimbi mine and continue with our investigation to decide the future of the operations,” commented AMSA CEO Kobus Verster.
He added that the company remained committed to ensuring that the transition process was managed in the best interest of the Thabazimbi mine employees and local communities.