Kumba Iron Ore Ltd. (KIO.JO), South Africa's largest producer of the steelmaking ingredient, said Thursday that it hopes the arbitration process with ArcelorMittal South Africa Ltd. (ACL.JO) over iron ore pricing is resolved within a year.

"We hope for a speedy resolution, hopefully by the end of 2011 or early 2012," Kumba said.

Kumba, a unit of Anglo American PLC (AAL.LN), in March ended a long-running deal to supply ore from Sishen to ArcelorMittal SA at 3% above the cost of production after the steel company failed to renew mining rights on a stake in the mine by a government-imposed deadline.

The companies in July agreed to an interim pricing arrangement for ore from Sishen, although ArcelorMittal SA has continued to argue that the status of the mining rights wasn't grounds to cancel the supply deal.

Kumba is also challenging the Department of Minerals on its decision to award the lapsed ArcelorMittal right to little known company Imperial Crown Trading and its rejection of Kumba's mine rights application for the minority stake previously help by ArcelorMittal.

The iron ore miner said it cannot make any long-term iron ore agreements at Sishen until the legal issues are resolved.

"We believe that it is good for the South African mining industry, for foreign investment and for Kumba that these issues are tested in a court of law," Kumba chief executive officer Chris Griffith said.

-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483; devon.maylie@dowjones.com
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