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Constitutional court decision: Sishen Mine
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
Registration number 2005/015852/06
JSE Share code: KIO
ISIN: ZAE000085346
("Kumba")
CONSTITUTIONAL COURT DECISION: SISHEN MINE
Background:
Shareholders were advised on 28 March 2013 that the Supreme Court of Appeal (“SCA”) dismissed
the appeals of the Department of Mineral Rights (“DMR”) and Imperial Crown Trading 289 (Pty) Ltd
(“ICT”) against the decision of the North Gauteng High Court, which, inter alia, set aside the grant of
a prospecting right to ICT by the DMR and held that Sishen Iron Ore Company (Pty) Ltd (“SIOC”)
became the exclusive holder of the mining rights in respect of the Sishen mine in 2008 when the
DMR converted SIOC’s old order mining rights. The SCA held that as a matter of law and as at
midnight on 30 April 2009, SIOC became the sole holder of the mining right to iron ore in respect of
the Sishen Mine, after ArcelorMittal South Africa Ltd (“AMSA”) failed to convert its undivided share
of the old order mining right.
On 23 April 2013, shareholders were advised that both ICT and the DMR lodged applications for
leave to appeal against the SCA to the Constitutional Court.
The Constitutional Court hearing was held on 3 September 2013.
Constitutional Court Decision:
On 12 December 2013, the Constitutional Court granted the DMR’s appeal in part against the SCA
judgment. In a detailed judgment, the Constitutional Court clarified that SIOC, when it lodged its
application for conversion of its old order right, converted only the right it held at that time (being a
78.6% undivided share in the Sishen mining right). The Constitutional Court further held that AMSA
retained the right to lodge its old order right (21.4% undivided share) for conversion before midnight
on 30 April 2009, but failed to do so. As a consequence of such failure by AMSA, the 21.4% undivided
right remained available for allocation by the DMR.
The Constitutional Court ruled further that, based on the provisions of the Mineral and Petroleum
Resources Development Act (“the MPRDA”), the opportunity to apply for the residual 21.4%
undivided share of the Sishen mining right is open to SIOC only.
Shareholders have previously been advised that SIOC and AMSA have concluded a new agreement
regulating the sale and purchase of iron ore to AMSA from SIOC’s mines with effect from 1 January
2014 and that this agreement settles various disputes between AMSA and SIOC. For more
information, shareholders are referred to the joint announcement which was made on 5 November
2013
Shareholders will be informed of any further material developments in this regard.
Pretoria
12 December 2013
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information please contact:
Media Investors and analysts
Gert Schoeman Esha Mansingh
Tel: +27 (0)12 683 7019 Tel: +27 (0)12 683 7257
Date: 12/12/2013 11:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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