http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.20Change: -0.29
R/$ = 13.43Change: -0.16
Au 1140.25 $/ozChange: -0.80
Pt 1004.00 $/ozChange: -4.00
 
 
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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Dual-listed miner DiamondCorp’s first diamond sale from its Lace mine, in the Free State, has been scheduled for October, when tunnel and initial slot drive tonnage would have provided a sufficiently representative parcel of kimberlite diamonds.   The result of...
More
 
 
Latest News
Updated 6 hours ago The African Development Bank (AfDB) will focus in coming years on tackling Africa's chronic power shortages to try to unlock its economic potential and end its vulnerability to fluctuations in commodity prices, its new president said. Though it boasts nearly a...
Updated 7 hours ago To increase the number of international arrivals in Cape Town from 1.56-million to 2.1-million a year over the next five years, which could potentially create 100 000 jobs in the Western Cape’s multibillion-rand tourism sector, the provincial Minister of Economic...
Eqstra Contract Mining Division CEO Justin Colling
Updated 7 hours ago JSE-listed Eqstra’s embattled contract mining and plant rental division is showing signs of recovery and is nearly ready to look after itself, the unit’s new CEO Justin Colling said on Tuesday. The division plunged into turmoil last year, dragging its parent’s...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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