Anglo Challenges South Africa About Award Of Coal Mining Rights to Melody
Anglo American Plc, the biggest private employer in South Africa, said it is challenging South Africa’s Department of Mineral Resources in court over the award of some coal mine rights.
While confirming the legal case, Pranill Ramchander, a spokesman for the company in Johannesburg, declined to comment further because it is a legal matter.
Melody Street Trading was last year granted prospecting rights over land containing 540 million metric tons of coal that Anglo believes it should have the rights to, Johannesburg’s Business Report newspaper said today, citing documents in its possession.
Susan Shabangu, South Africa’s mines minister, has frozen the award of new prospecting licenses for six months while the relevant departments are audited after Anglo’s Kumba Iron Ore Ltd. unit and Lonmin Plc challenged the award of rights at their mines.
Keysha Investments 220 Ltd. said yesterday it had written to the Department of Mineral Resources after South Africa mistakenly gave it mineral rights in an area earlier handed to Impala Platinum Holdings Ltd. Keysha is controlled by former government officials.
Anglo successfully appealed to Buyelwa Sonjica, Shabangu’s predecessor, over the award to Melody but her decision wasn’t conveyed to department officials, Business Report said, citing the documents.
Jeremy Michaels, a spokesman for the department, said it won’t oppose Anglo’s court bid, according to the newspaper. A call to Michaels’ mobile phone was not answered today.
To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net
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