[miningmx.com] — ARCELORMITTAL SA (Amsa) has emerged the apparent winner in the North Gauteng High Court case over a disputed mineral right in Sishen Iron Ore. As for the other parties, some believe this is only round one.
Judge Raymond Zondo on Thursday delivered a summary of his judgment. It took him less than 17 minutes to give a rundown of his findings in the case where the unknown, but well-connected, Imperial Crown Trading was awarded a 21.4% prospecting right by the department of mineral resources (DMR) over the Sishen iron ore mine.
The core of Zondo’s findings became clear in the first paragraph:
“It is hereby declared that the first applicant, Sishen Iron Ore Company Ltd (Sioc) became, with effect from 5 May 2008, alternatively 18 June 2008, the exclusive holder of a converted mining right in terms of.the Mineral and Petroleum Resources Development Act, 2002 (MPRDA) for iron ore and quartzite in respect of the properties comprising the Sishen Mine.’
In other words, even though Sioc maintains it only applied for a 78.6% right in Sishen in the second quarter of 2008, it was granted a 100% right by the DMR. Any application lodged after June 2008 for the “so-called’ 21.4% right in Sishen would be void, Zondo said.
This was the view held by Amsa, which was arguing there was no need to convert its own 21.4% old order right in the mine.
As a consequence of Zondo’s order, ICT no longer holds the 21.4% right granted to it by DMR.
Kumba Iron Ore, owner of Sioc, also put a positive spin on the outcome, saying it was “delighted that the judgment has confirmed that Sioc is the only holder of the mining rights over Sishen.”
This is not exactly what Sioc was asking for, though. Sioc does want to be recognised as the 100% owner of the Sishen right, but will prefer to show it obtained this by first converting a 78.4% old order right, as well as being granted the 21.4% portion which Amsa held under the previous rights regime.
If this was to be the case, Kumba could’ve argued (and has done before) that Amsa’s favourable supply agreement from Sishen was tied to the 21.4% right. Amsa now has the backup of a judgment that it wouldn’t have been allowed to apply for the conversion of its 21.4% right.
“The judgement.serves to confirm our view that Sioc remains obliged to supply 6.25 million tonnes of iron ore to us at cost plus three percent in terms of our agreement,’ Amsa said in an official response.
ONLY THE START
Most parties, however, view Thursday’s judgment as the start of the next round in a protracted battle. Zondo said he would release his full judgment only on Tuesday, in which he would motivate his verdict.
“Given what’s at stake I doubt whether this will be the end of the road,’ said a member of ICT’s legal team.
“Due to the fact that the full judgment was not released today it is not possible for the department to apply its mind on the matter and therefore determine the way forward,’ said the DMR.
The parties have until 7 February to submit appeals, whereafter cross-appeals may be made for another 10 days.
“Due to the fact that the full judgment was not released today it is not possible for the department to apply its mind on the matter and therefore determine the way forward,’ said the DMR.
The parties have until 7 February to submit appeals, whereafter cross-appeals may be made until 10 days later.
