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Chief Executive Officer of ARM Mike Schmidt.

African Rainbow Minerals (ARM) might consider a bid for Kumba Iron Ore, the com-pany that Anglo American wanted to exit, the diversified mining company controlled by billionaire Patrice Mot-sepe said.Chief Executive Officer of ARM Mike Schmidt.Even if ARM and its iron ore ven-ture partner Assore decided against a possible purchase of Kumba, the company would seek to save costs by combining overheads with the Anglo unit, because many of their operations were located near one another, Chief Executive Mike Schmidt said on Friday 11 March 2016.
The company would decide in the next few weeks whether it would in-form Kumba of its intent to study the business, Mr Schmidt said. “We know their ore bodies, they know our ore bodies.”
ARM's interest in Kumba comes after Anglo American said last month that it planned to dispose of its 69.7 percent stake as part of plans to fo-cus on mining platinum, copper and diamonds.
The company is looking at acquisi-tions after all its units, except the steelmaking-commodities division, suffered half-year losses. Earnings fell 51 percent to R507-million from a year earlier, aided by a R599-million profit from its ferrous unit, ARM said. All of its other divisions, including platinum, coal and copper, had re-ported losses for the period, the company said.
“ARM has responded pro-actively to the commodity price downturn and has implemented operating and capital cost reduction initiatives at all its operations,” the company said in a statement.
ARM cut planned spending for the first half of 2016 by 15 percent to R1.4-billion, mainly from curtail-ments in the ferrous metals Black Rock Project, which is its most capi-tal intensive venture.
The company said it would cut jobs at its iron ore mines Beeshoek and Khumani, but did not say how many positions were on the line. Bloom-berg & Reuters

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