JOHANNESBURG (miningweekly.com) – The Competition Commission has recommended the Competition Tribunal approve ArcelorMittal South Africa’s (AMSA’s) proposed acquisition of the Thabazimbi mine, in Limpopo.
Kumba Iron Ore in February agreed to transfer the mine to AMSA.
Until 2014, the mine was a captive mine owned and run by Kumba subsidiary Sishen Iron Ore Company (SIOC), but was funded by and supplied ore exclusively to AMSA. AMSA is, therefore, responsible for 96% of the mine’s rehabilitation liability while SIOC is responsible for the site’s management and the remainder of the liability.
The transfer of the mine to AMSA will simplify the arrangement, with AMSA to be solely responsible for the closure and rehabilitation of the mine.
Mining operations at Thabazimbi ceased in September 2016 and the identified assets and liabilities of the mine are being sold to AMSA for R1, plus the assumed liabilities.
The commission found that the proposed transaction was unlikely to substantially prevent or lessen competition in the affected markets. In addition, the proposed transaction did not raise any public interest concerns.