Anglo American update re: Kumba Iron Ore

RNS Number : 1384B

Anglo American PLC

28 March 2013

 



28 March 2013

Anglo American update re. Kumba Iron Ore

Anglo American plc draws attention to an announcement issued by Kumba Iron Ore, the text of which is set out below:

Supreme Court of Appeal decision in relation to the appeal in respect of the High Court decision relating to the grant of a prospecting right to Imperial Crown Trading 289 (Pty) Ltd

Background:

Shareholders were advised on 15 December 2011 that the North Gauteng High Court ruled that, when the Department of Mineral Resources ("DMR") effected a conversion of Sishen Iron Ore Company (Pty) Ltd`s ("SIOC") old order mining right in 2008, SIOC was granted the exclusive right to mine at the Sishen Mine, and accordingly no other party could be granted the right to mine iron ore or quartzite at the Sishen Mine.  The High Court therefore reviewed and set aside the grant of the prospecting right to Imperial Crown Trading 289 (Pty) Ltd ("ICT").

Each of ICT and the DMR were separately granted leave to appeal against the decision.

The SCA Judgment 28 March 2013:

The Supreme Court of Appeal ("the SCA") has dismissed the appeals of both the DMR and ICT.  The SCA held that SIOC lodged its application for conversion of its old order right in 2005. The SCA held that the DMR granted to SIOC the exclusive mining right in 2008.  The SCA further held that ArcelorMittal South Africa Ltd ("AMSA") retained the right to lodge its old order right (21.4% undivided share) for conversion before midnight on 30 April 2009, but failed to do so. As a matter of law and as at midnight on 30 April 2009, SIOC became the sole holder of the mining right to iron ore in respect of the Sishen Mine, after AMSA failed to convert its undivided share of the old order mining right.

This means that SIOC has the exclusive right to mine iron ore at the Sishen Mine. 

As a further consequence of this finding, the SCA upheld the High Court ruling setting aside the prospecting right granted by the DMR to ICT.

It had been agreed between SIOC and AMSA that the arbitration proceedings relating to the inoperative Sishen Supply Agreement would be stayed pending the final resolution of the mining rights dispute. No date for this arbitration has yet been agreed.  In the interim, the sale of iron ore from the Sishen Mine to AMSA remains regulated in terms of the Interim Pricing Agreement concluded between the parties in December 2012.

Shareholders will be informed of any further material developments in this regard. 

 

 

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