Kumba Says S. Africa Supreme Court Dismisses Sishen Mine Appeal
Kumba Iron Ore Ltd. (KIO), which owns Africa’s biggest mine of the material, said a South African court dismissed an appeal by the government and Imperial Crown Trading 289 (Pty) Ltd. to have rights to the complex reinstated.
Today’s ruling by the Supreme Court of Appeal means Kumba’s Sishen Iron Ore unit has the exclusive right to mine the steelmaking material at the Sishen mine in the Northern Cape province, Centurion-based Kumba said in a statement.
“The Supreme Court of Appeal upheld the High Court ruling setting aside the prospecting right granted by the Department of Mineral Resources to ICT,” Kumba said.
In March 2010, Kumba canceled a 2001 accord to supply 6.25 million metric tons of ore a year from Sishen to ArcelorMittal South Africa at cost plus 3 percent. Kumba said it lapsed because ArcelorMittal failed to renew its mining license for a portion of the deposit, an argument rejected by the steelmaker.
Kumba erased earlier declines, rising 1.2 percent to 1:32 p.m. in Johannesburg.
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