Kumba Iron Ore Ltd. (KIO.JO) said Monday it has initiated a court review of a decision by the South African government to grant a little-known company a prospecting right at its core Sishen mine.

The company launched an appeal at the beginning of March against a prospecting right granted to Imperial Crown Trading 289 on a 21.4% stake in the iron-ore mine that had previously been held by ArcelorMittal South Africa Ltd. (ACL.JO).

It said it has now submitted a review application at the North Gauteng High Court "to protect its interests and to avoid prescription."

ArcelorMittal ceded its right to the stake in the Sishen mine after failing to convert its mining right by a government deadline last year, and Sishen Iron Ore Co., a unit of Kumba, then applied for a mining right relating to the 21.4% stake itself. Kumba has argued that, as a result, the terms of a 2001 deal that entitle ArcelorMittal to receive 6.25 million metric tons of ore a year from the Sishen mine at 3% above cost are no longer valid.

Kumba said the 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."

ArcelorMittal has repeatedly said it believes its 2001 contract with Kumba, a unit of Anglo American PLC (AAL.LN), remains valid.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com
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