| Fri 14 Jan 2011, 15:48 | | 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 previously advised that, as a result of the failure by
ArcelorMittal South Africa Limited ("Mittal") to convert its former old order
mining right as to a 21.4% undivided share in the Sishen Mine, its old order
mining right had lapsed. Accordingly, Sishen Iron Ore Company (Proprietary)
Limited ("SIOC"), which mines the Sishen Mine, applied for a mining right in
relation to the 21.4% undivided rights in respect of the Sishen Mine.
SIOC was informed, during February 2010, that the Department of Mineral
Resources ("DMR") had granted a prospecting right on 30 November 2009 to
Imperial Crown Trading 289 (Proprietary) Limited ("ICT") in relation to the
residual undivided 21.4% of the Sishen Mine.
Shareholders were advised on 24 May 2010 that SIOC had initiated a review
application in the North Gauteng High Court on 21 May 2010 in relation to, inter
alia, the decision of the DMR to grant a prospecting right to ICT and the
failure by the DMR to consider and grant SIOC`s application for a mining right
("the review application"). Neither the DMR nor ICT has as yet filed their
answering affidavits in the review application.
In November 2010, in order to avoid further litigation against either the DMR or
ICT, SIOC requested ICT to provide SIOC with an undertaking that, pending the
final determination of the review application, ICT would not apply for a mining
right in respect of the Sishen Mine. SIOC also requested the DMR to provide
SIOC with an undertaking that, pending the final determination of the review
application, the DMR would neither accept an application from ICT to be granted
the residual undivided 21.4% mining right, nor grant such residual undivided
21.4% mining right to ICT.
The DMR and ICT both declined to provide such undertakings and, accordingly,
SIOC initiated an application on 14 December 2010 to interdict ICT from
submitting an application for a mining right for a 21.4% undivided share, and to
interdict the DMR from either accepting such an application or granting such a
mining right to ICT.
Following numerous enquiries to the DMR, SIOC was informed by the DMR on 12
January 2011 that ICT had applied for a mining right on 9 December 2010. The
DMR also stated that it had accepted ICT`s application for a mining right in
terms of the provisions of the Minerals and Petroleum Resources Development Act,
2002 ("the MPRDA") on 23 December 2010.
The acceptance of the ICT application by the DMR does not result in ICT
acquiring any mining rights at the Sishen mine but rather commences the process
for the DMR to consider the ICT application. Before any mining right can be
granted, the detailed processes stipulated in the MPRDA must be complied with by
ICT as well as the DMR.
SIOC does not believe that it was lawful for the DMR to have accepted ICT`s
application for a mining right. The company will object to the acceptance of
the ICT application, and will further commence a process to appeal the decision
by the DMR to have accepted the ICT mining right application. In addition, SIOC
does not believe that there is any legal basis for the DMR to grant the ICT
application in due course. SIOC will continue to take the necessary steps to
protect its shareholders` interests in this regard.
14 January 2011
Pretoria
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 14/01/2011 15:48:01 Produced by the JSE SENS Department.
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