| Wed 21 Dec 2011, 17:50 | | ACL - ArcelorMittal South Africa Limited - North Gauteng High Court judgment |
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ACL
ACL
ACL - ArcelorMittal South Africa Limited - North Gauteng High Court judgment
released
ArcelorMittal South Africa Limited
(Incorporated in the Republic of South Africa)
Registration number: 1989/002164/06
Share code: ACL & ISIN: ZAE000134961
("ArcelorMittal South Africa")
NORTH GAUTENG HIGH COURT JUDGMENT RELEASED
Further to the announcement released on 15 December 2011, ArcelorMittal South
Africa`s shareholders are referred to a judgment released by the North Gauteng
High Court (the Court), in relation to the undivided Sishen mining rights, in
which Judge Raymond Zondo presided.
The judgment follows a review application brought by Sishen Iron Ore Mining
Company Limited (SIOC) against the Department of Mineral Resources (DMR) and
Imperial Crown Trading 289 (Pty) Limited (ICT) (the application). ArcelorMittal
South Africa Limited was joined in the application at the request of SIOC.
ArcelorMittal South Africa`s argument was that SIOC has held a 100 per cent
mining right since May/June 2008 when it applied (in December 2005) to convert
its old order mining right into a mining right under the Minerals and Petroleum
Resources Development Act ("MPRDA").
Judge Zondo agreed with ArcelorMittal South Africa`s assertion that SIOC was
granted a 100 per cent mining right in accordance with the MPRDA. ArcelorMittal
South Africa therefore believes the ruling confirms the view that SIOC has an
ongoing obligation to supply the 6,25Mt of iron ore at cost plus three per cent
in terms of the existing, valid and legally-binding, agreement.
Whilst SIOC disputed the DMR`s awarding of a 21.4 per cent prospecting right to
ICT in relation to the Sishen mine, the Court ultimately found that the
acceptances by the DMR of any application for a mining or prospecting right
relating to iron ore lodged after 2008, including SIOC`s application for a 21.4
per cent mining right, were void from the outset. The Court has therefore set
aside the grant of the prospecting right by the DMR to ICT.
The judgment has emphasised that the Minister of Mineral Resources (the
Minister) granted Sishen (SIOC) the sole and exclusive full mining right to the
iron ore in 2008, which was before the expiry of the prescribed five year period
for lodging of old order mining rights. ArcelorMittal South Africa could not,
therefore, competently lodge its old order mining right at any stage after the
grant to Sishen of the converted mining right, but before the expiry of the five
year period on 30 April 2009. If ArcelorMittal South Africa had lodged its old
order mining right, the Minister would not in law have been able or competent to
convert it into a mining right.
Shareholders will be kept informed of any further developments.
Vanderbijlpark
21 December 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
For further information please contact:
Themba Hlengani - Manager: Corporate Communications
Tel: (016) 889 2425 or 083 440 0158
Date: 21/12/2011 17:50:24 Produced by the JSE SENS Department.
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