PRETORIA, Dec 15 – A South African judge ruled on Thursday that a company with no mining experience and business links with President Jacob Zuma’s son could not keep mineral prospecting rights it was awarded.
South Africa previously awarded Imperial Crown Trading the right to prospect for minerals at the Sishen mine operated by Kumba Iron Ore, a unit of global miner Anglo American.
The stakes went far beyond one commercial dispute.
ArcelorMittal South Africa had allowed the right to lapse in 2009, putting in jeopardy a lucrative multi-billion rand supply deal it had with Sishen that allowed it to source iron ore at a discount.
Judge Raymond Zondo also said he agreed with ArcelorMittal’s contention that Sishen held 100 percent of the right to the operation and it was not open for anyone to apply for the lapsed right.
Kumba disagreed that the decision had any bearing on the supply dispute, which is being fought out in a separate arbitration process.
Source: Reuters Africa newsletter
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