By Alex MacDonald
South Africa's Department of Mineral Resources and a small,
politically connected company called Imperial Crown Trading are
seeking to appeal a recent court ruling which maintained that ICT
doesn't have any rights over Sishen, the country's largest iron-ore
mine.
Almost a month ago, the Supreme Court of Appeal upheld a
previous High Court decision which said that Kumba Iron Ore Ltd
(KIO.JO), Sishen's majority owner and operator, is also the
exclusive holder of rights to mine Sishen, thereby stripping
Imperial Crown Trading of a right to prospect for ore at the
mine.
The Supreme Court decision was expected to end a lengthy legal
battle over Sishen's mining rights that began in 2010 after the
Department of Mineral Resources awarded a 21.4% stake in the mine
to Imperial Crown Trading. The stake was previously owned by steel
titan ArcelorMittal (MT).
Kumba Iron Ore said Tuesday that both the DMR and Imperial Crown
Trading have now lodged applications for leave to appeal to South
Africa's Constitutional Court the decision of the Supreme Court of
Appeal.
An appeal to the Constitutional Court is the last legal step a
company can take to defend its rights, but there is no guarantee
the court will accept the case, a person familiar with the matter
said.
Kumba said in a statement it would keep its shareholders
informed of any further material developments regarding the
application submitted by the DMR and Imperial Crown to the
Constitutional Court.
Kumba is a majority-owned division of globally diversified,
U.K.-listed Anglo American PLC (AAL.LN).
Write to Alex MacDonald at alex.macdonald@dowjones.com
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