adminKumba Iron Ore, a unit of global miner Anglo-American Corporation, had challenged the state’s award of a prospecting right over a stake in Kumba’s Sishen mine to little-known Imperial Crown Trading.
The government previously awarded Imperial Crown Trading the right to prospect for minerals at a mine operated by Kumba Iron Ore.
ArcelorMittal South Africa had allowed the right to lapse, putting in jeopardy a multi-billion rand supply deal it had with Sishen that allowed it to source iron ore cheaply.
Judge Raymond Zondo also said he agreed with ArcelorMittal’s contention that Sishen held 100 percent and that it was not open for anyone to apply for the stake.
“The judgment of the High Court serves to confirm our view that Sishen remains obliged to supply 6,25 metric tonnes of iron ore to us at cost plus 3 percent in terms of our agreement,” ArcelorMittal said in a statement.
ArcelorMittal’s share price soared over 5 percent after the verdict.
Imperial Crown Trading immediately signalled it would appeal.
“Certainly we will appeal, we don’t agree with the judgment, it’s contrary to what we have been contending all along,” Imperial Crown Trading lawyer Ronnie Mendelow told journalists after the ruling. — Fin24.
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