ArcelorMittal South Africa and Sishen Iron Ore Company, a unit of Kumba Iron Ore Limited, said that arbitration linked to a mining rights dispute could not proceed until a related court case had been resolved.

The arbitration focuses on a dispute over a supply agreement under which ArcelorMittal received iron ore at preferential rates from Kumba.

In the court case, Kumba, a unit of global miner Anglo American, has challenged the government's award of a prospecting right over part of Kumba's Sishen mine to little known yet politically connected Imperial Crown Trading.

The mineral rights awarded to ICT had originally belonged to ArcelorMittal but had lapsed. This expiry lies at the heart of this supply dispute.

The mineral right allowed ArcelorMittal to source iron ore from Kumba at a discount. The steelmaker hopes to prove that it never lost that privilege to obtain cheap iron ore.

A judge is to rule on the Kumba ICT dispute on December 15th 2011.

While the supply agreement will not be included in the ruling, arbitrators may look to the outcome to help determine their decision.

(Sourced from www.reuters.com)