Sunday, 05 Jun 2011
AFP reported that ArcelorMittal SA was seeking to join Kumba Iron Ore in its case against the Department of Mineral Resources and Imperial Crown Trading to protect its right to receive iron ore at cost plus 3%.
The steel maker's application to join Kumba as an applicant in the case was heard by the North Gauteng High Court. Judgment was reserved and is expected to be delivered early next week.
The company said that "ArcelorMittal anticipates receiving a positive ruling."
It did, however, clarify that by seeking to be joined as an applicant, it was not siding with any of the parties.
Kumba initiated proceedings to join ArcelorMittal as a co respondent in its application against the Department of Mineral Resources and Imperial Crown Trading. This was opposed by both.
Imperial Crown Trading is the holder of a prospecting right over ArcelorMittal's previous 21.4% portion of Kumba's Sishen mine. The issue before the court is founded on the assumption that the state erred in granting a prospecting right over a share of Sishen to Imperial Crown Trading.
Kumba and Imperial Crown Trading have based their cases on the fact that a distinct right relating to 21.4% of the iron ore at Sishen exists and can be allocated, but ArcelorMittal contends that Sishen Iron Ore Company holds a 100% right on its conversion since the Mineral and Petroleum Resources Development Act does not allow for conversion of only a fraction of an old order mining right.
The portion that was said to have been held by ArcelorMittal could therefore also not have been converted. The fact that ArcelorMittal had not converted its portion of the mining right was the basis on which Kumba decided to stop supplying the steel maker with iron ore at a discounted price.
ArcelorMittal had until early last year been receiving 6.25 million tons of iron ore a year from Sishen Iron Ore Company at a discounted price of cost plus 3%. (sourced IOL)
AFP reported that ArcelorMittal SA was seeking to join Kumba Iron Ore in its case against the Department of Mineral Resources and Imperial Crown Trading to protect its right to receive iron ore at cost plus 3%.
The steel maker's application to join Kumba as an applicant in the case was heard by the North Gauteng High Court. Judgment was reserved and is expected to be delivered early next week.
The company said that "ArcelorMittal anticipates receiving a positive ruling."
It did, however, clarify that by seeking to be joined as an applicant, it was not siding with any of the parties.
Kumba initiated proceedings to join ArcelorMittal as a co respondent in its application against the Department of Mineral Resources and Imperial Crown Trading. This was opposed by both.
Imperial Crown Trading is the holder of a prospecting right over ArcelorMittal's previous 21.4% portion of Kumba's Sishen mine. The issue before the court is founded on the assumption that the state erred in granting a prospecting right over a share of Sishen to Imperial Crown Trading.
Kumba and Imperial Crown Trading have based their cases on the fact that a distinct right relating to 21.4% of the iron ore at Sishen exists and can be allocated, but ArcelorMittal contends that Sishen Iron Ore Company holds a 100% right on its conversion since the Mineral and Petroleum Resources Development Act does not allow for conversion of only a fraction of an old order mining right.
The portion that was said to have been held by ArcelorMittal could therefore also not have been converted. The fact that ArcelorMittal had not converted its portion of the mining right was the basis on which Kumba decided to stop supplying the steel maker with iron ore at a discounted price.
ArcelorMittal had until early last year been receiving 6.25 million tons of iron ore a year from Sishen Iron Ore Company at a discounted price of cost plus 3%. (sourced IOL)
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