Kumba Iron Ore Ltd. climbed to the highest in more than a month after saying South Africa granted it a right to mine all of the steelmaking material at the continent’s biggest operation, ending a long-running dispute.
The 21.4% residual right to the Sishen mine given by the Department of Mineral Resources will be incorporated into the 78.6% that Sishen Iron Ore Co, a Kumba unit, already has, said the Pretoria-based company on Thursday.
The right was subject to years of legal battles after a permit belonging to the continent’s biggest steel producer, ArcelorMittal South Africa Ltd (AMSA) expired, and Kumba terminated an accord to supply AMSA with ore at below-market prices.
In 2013, the pair reached a new supply deal that could have lapsed if Kumba had lost part of the Sishen right.
The department granted Kumba, a unit of Anglo American Plc, the right on condition that it continues to supply AMSA at export-parity prices should an international index price for the metal fall below $60 a metric ton.
Kumba advanced as much as 6.5% to the highest since 12 September and traded 1.5% higher at 127.89 rand by 9:38 a.m. in Johannesburg. The stock has more than tripled this year.