[miningmx.com] – ARCELORMITTAL, the European steelmaker, has
applied for leave to appeal a South Gauteng High Court decision that it pay Kalahari
Resources, its 50% joint venture partner in Kalagadi Manganese, R241.3m in capital
contributions for the development of a manganese mine and sinter plant.
The court is currently in recess and would decide on the appeal application next week,
ArcelorMittal spokesperson, Julian Gwillim said.
Regardless of whether ArcelorMittal is granted leave to appeal, the future funding of
the manganese mine and sinter plant, as well as a proposed ferro-manganese smelter
in Coega, representing a combined investment of R10.7bn, has been thrown into
doubt.
ArcelorMittal’s decision to challenge the court decision is probably behind statements
attributed to Kalahari Resources CEO, Daphne Mashile-Nkosi, in Business Day
yesterday in which she said she wanted to buy out ArcelorMittal’s 50% stake in
Kalagadi Manganese. ArcelorMittal has committed $430m, about R3.5bn, to the project
so far.
However, ArcelorMittal responded this morning saying it was committed to its 50%
stake in Kalagadi Manganese, and even construction of a manganese smelter if that
proved financially feasible, but said corporate governance standards in Kalagadi
Manganese, had to be honoured by joint venture partner, Kalahari Resources.
A dispute between Kalahari Resources and ArcelorMittal was made public last month
when the steelmaker was ordered by the South Gauteng Court to pay Kalahari
Resources R241.3m in capital development to the project.
ArcelorMittal said it had withheld the funds because it believed its directors had been
subject to corporate governance abuses. ArcelorMittal subsequently said it would
consider an appeal: “ArcelorMittal will review the judgement and consider all available
options,’ it said.
