https://www.engineeringnews.co.za

Kumba in talks with DMR on 21.4% residual Sishen mining-right conditions

3rd November 2015

By: Terence Creamer

Creamer Media Editor

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Anglo American’s Kumba Iron Ore reported on Tuesday that it was considering the legal and practical implications of the conditions proposed by the Department of Mineral Resources (DMR) in relation to an amendment of the Sishen Iron Ore Company’s (SIOC’s) mining right.

Kumba confirmed that it had received notice that the DMR’s director-general had consented to an amendment granting, with conditions, SIOC the residual 21.4% undivided share of the mining right for the Sishen mine, in the Northern Cape – SIOC already held 78.6% of the mine.

The 21.4% share, initially held by ArcelorMittal South Africa, had been the subject of a long-running legal dispute, which arose in 2010 after the DMR controversially granted the right to a politically connected entity known as Imperial Crown Trading (ICT).

In December 2013, the Constitutional Court ultimately ruled the residual 21.4% undivided share remained available for allocation by the DMR, but that based on the provisions of the Mineral and Petroleum Resources Development Act only SIOC could apply, which it subsequently did.

Kumba told shareholders it was currently considering the terms of the consent to amend SIOC’s mining right, which was subject to a number of conditions, described by the DMR as “proposals”.

“Once Kumba and SIOC have had an opportunity to engage fully with the DMR in this regard and to consider the precise meaning and scope of the proposed conditions, shareholders will be updated as appropriate,” the company said in a statement, adding that shareholders should exercise caution when trading in Kumba shares.

Kumba spokesperson Nikki Wetzlar told Mining Weekly Online that the talks between the DMR officials and senior Kumba executives were ongoing, but that she was unable to provide a timeframe for their conclusion.

Kumba aimed to resolve the areas of uncertainty without resorting to the courts, but it would keep its legal options open.

No details were shared as to the nature of the proposed conditions.

Edited by Creamer Media Reporter

Comments

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.645 0.704s - 166pq - 2rq
Subscribe Now