Steel group ArcelorMittal said Friday it had decided not to proceed with taking over operations at Kumba Iron Ore's Thabazimbi mine due to both geological and market conditions.
ArcelorMittal South Africa undertook due diligence on the mine, after Kumba's announcement of July 16 to commence closure of the mine, the Luxembourg-based company said in a quarterly update.
"Due diligence revealed that given the immediate reserves available which is further aggravated by the slope failure and depressed economic conditions in the iron ore market, there is currently no viable option available for AMSA to take over the mine and operate it successfully," ArcelorMittal said.
"Kumba is thus proceeding with the closure of the Thabazimbi mine."
The Anglo American mining unit decided to close the mine due to high costs and difficult mining conditions, with a slope failure occurring in June. It would meet contracted iron ore sales to ArcelorMittal through its Northern Cape operations from 2016 onward, Kumba's last interim statement said.
