http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.29Change: -0.09
R/$ = 11.70Change: -0.05
Au 1207.85 $/ozChange: 1.57
Pt 1174.50 $/ozChange: -1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 26, 2012

Kalagadi says ArcelorMittal ordered to pay R241m

Back
Johannesburg|Port|Africa|Industrial|Industrial Development Corporation|Kalagadi Manganese|Kalahari Resources|Mining|PROJECT|Resources|Sustainable|Africa|South Africa|Eastern Cape|Northern Cape|Daphne Mashile-Nkosi|Operations|Eastern Cape
Port|Africa|Industrial|Mining|PROJECT|Resources|Sustainable|Africa||||Operations|
johannesburg|port|africa-company|industrial|industrial-development-corporation|kalagadi-manganese|kalahari-resources|mining|project|resources|sustainable|africa|south-africa|eastern-cape|northern-cape|daphne-mashilenkosi|operations|eastern-cape-province-or-state
© Reuse this



JOHANNESBURG (miningweekly.com) – The South Gauteng High Court on Tuesday ordered ArcelorMittal International to meet its R241.3-million shareholders’ agreement with Kalagadi Manganese within ten days, Kalagadi chairperson Daphne Mashile-Nkosi reported on Tuesday.

High Court Judge P Coppin also ordered the company to pay the costs of the legal proceedings and ruled that ArcelorMittal discharge its financial obligations in the future - prorata to its shareholding in Kalagadi Manganese.

A three-member joint venture (JV), comprising ArcelorMittal with a 50% stake, Kalahari Resources with 40% and the Industrial Development Corporation (IDC) with a 10% shareholding, agreed on a funding strategy during 2009, in which each party’s equity funding obligations were outlined and plans to raise external debt funding in South Africa and on international markets were established.

The equity of the funding was set at 40%, or R4.2-billion, and the debt element at 60%, or R6.5-billion.

To date, Kalahari Resources injected over R1.3-billion into the JV, while the IDC has invested R100-million. Kalagadi said ArcelorMittal’s equity funding obligation reached about R500-million.

Kalahari Resources brought the matter to the High Court in May to ensure ArcelorMittal honoured its shareholder-agreement obligations, after the group failed to settle the matter out of court.

ArcelorMittal’s application to have Kalahari Resources placed under business rescue was also struck from the roll with costs.

ArcelorMittal said in a statement that it was disappointed with the High Court ruling, as it did not resolve “the real” issues. The company claimed that certain material obligations under the Kalagadi Manganese shareholders agreement had been breached and that there remained “serious shortcomings” in terms of corporate governance in the mining firm.

ArcelorMittal said it would review the judgment and consider its options.

Mashile-Nkosi did not believe there would be any hostility between the parties as they moved forward in the best interests of the JV and its operations.

“We are now focused on moving ahead, completing the project and enabling it to meet the enormous potential it has to move South Africa up the beneficiation curve, create sustainable jobs and contribute to the national economy,” she said.

While Kalagadi’s three-tier project experienced challenges with its equity funding, she said local and international investment roadshows have elicited a strong response from debt funders.

Kalagadi Manganese was currently in the final stages of developing a three-million-ton-a-year manganese mine and sinter plant, in Hotazel, in the Northern Cape, and expected to cold commission the mine at the end of July and hot commission it by the end of October.

The mining company also planned to develop a 320 000 t/y high-carbon ferromanganese smelter at Coega, in the Eastern Cape, during 2014.

“The ruling means the people of the Northern Cape will get their two-in-one project – the mine and the sinter plant - while the people of the Eastern Cape will get the smelter which will provide a major anchor project for the Port of Coega,” Mashile-Nkosi added.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Rio Tinto CEO Sam Walsh
Diversified giant Rio Tinto on Friday announced that it would streamline its business, condensing its assets into four product groups namely; aluminium, copper and coal, diamonds and minerals, and iron-ore. The miner said that the new copper and coal product group...
Updated 6 hours ago Gas has the potential to account for more than 40% of the electricity generated in sub-Saharan Africa (SSA) from 2020 onwards, a new report by McKinsey & Company shows, adding that, by 2040, gas-fired capacity could be responsible for more than 700 terawatt-hours in...
More
 
 
Latest News
Updated 1 hour 50 minutes ago The Gauteng Provincial Government has outlined plans to develop a handful of “mega” human settlements as part of an ambitious long-term housing development strategy aimed at narrowing the housing backlog, with plans afoot to replace informal settlements with...
Eskom power stations
Updated 2 hours 3 minutes ago While State-owned power utility Eskom was unable to cut off electricity supply to some of its neighbouring trade partners, it was able to reduce energy exports by 10% when load shedding was implemented locally. The Department of Public Enterprise explained that Eskom...
Finance Minister Nhlanhla Nene
Updated 2 hours 7 minutes ago While the new tax introductions and hiked levies outlined in Finance Minister Nhlanhla Nene’s inaugural budget speech this week were likely to hit consumers hard, it was deemed the most efficient option for government to narrow its fiscal gap without hurting South...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
In a recent letter to the editor that I sent to Engineering News (Concerns regarding South African portion of Square Kilometre Array) and in a follow-up article elaborating further (We must start preparations to build our own synchrotron light source), I stated my...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96