| Mon 24 May 2010, 8:59 | | KIO - Kumba Iron Ore Limited - Proceedings in relation to the residual Sishen |
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KIO
KIO
KIO - Kumba Iron Ore Limited - Proceedings in relation to the residual Sishen
Mine Mineral Rights
Kumba Iron Ore Limited
A member of the Anglo American plc group
Incorporated in the Republic of South Africa)
Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
("Kumba")
PROCEEDINGS IN RELATION TO THE RESIDUAL SISHEN MINE MINERAL RIGHTS
Shareholders were advised on 26 February 2010 that, on 5 February 2010, Kumba
informed ArcelorMittal South Africa Limited ("Mittal") that, as a result of
Mittal`s failure to convert its old order mining rights in relation to an
undivided 21.4% interest in the Sishen Mine into new order mining rights in
terms of the relevant provisions of the Mineral and Petroleum Resources
Development Act ("MPRDA"), Mittal is no longer entitled to receive 6.25mtpa of
iron ore contract mined by Kumba`s subsidiary, Sishen Iron Ore Company (Pty) Ltd
("SIOC"), at cost plus 3%.
Shareholders were further advised on 17 March 2010 that:
- As a result of Mittal`s failure to convert the old order mining right, SIOC
had applied for a mining right in relation to the residual 21.4%;
- In February 2010, SIOC was informed that an undivided prospecting right had
been granted to Imperial Crown Trading 289 (Pty) Ltd ("Imperial Crown
Trading") in relation to 21.4% of the Sishen Mine; and
- On 1 March 2010, SIOC lodged an appeal with the Department of Mineral
Resources ("DMR") against the grant of the prospecting right to Imperial
Crown Trading. This appeal process remains ongoing.
SIOC has engaged with relevant stakeholders in relation to the grant of a
prospecting right to Imperial Crown Trading and is continuing to do so.
Shareholders are now advised that, in order to protect its interests and to
avoid prescription, SIOC initiated a review application in the North Gauteng
High Court on 21 May 2010 in relation to the decision of the DMR to grant a
prospecting right to Imperial Crown Trading.
This review application does not detract from SIOC`s continued engagement with
relevant stakeholders, with a view to finding an amicable resolution of this
matter as soon as possible.
24 May 2010
Pretoria
For further information please contact:
Anne Dunn
Tel.: +27 (0)11 502 7404 / +27 (0)82 448 2684
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/05/2010 08:59:01 Produced by the JSE SENS Department.
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