JSE-listed iron ore producers Kumba and Assore, along with local steel producer ArcelorMittal, rallied on fears of supply disruptions following Friday’s dam disaster at a mine owned by Vale in Brazil. Kumba’s share price rose 6.1% to R323 on Wednesday, taking its rise since Friday to 11%. Assore gained 5% to R334.95, taking its run since Friday to 7.3%. The JSE-listed South African operations of ArcelorMittal rose 5.4% to R3.69 on Wednesday, bringing it back to Friday’s level. Thanks to its contracts with Kumba, the local steelmaker may gain a competitive advantage over international rivals dependent on Vale. BHP’s share price has not suffered from the latest iron ore tailings dam disaster in Brazil because it is not a shareholder, unlike the 2015 disaster at Samarco mine in which it is Vale’s partner. BHP rose 1.43% to R298.83 on Wednesday, taking its gain since Friday to 4.45%. Vale, the world’s largest iron ore producer, reduced its production target of 400-million tonnes for 201...
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