Kumba hails rights award as victory for institutions
Conditions placed on granting of stake will cost Anglo American subsidiary about R100m to fulfil
Kumba Iron Ore’s success in obtaining full rights to the Sishen iron ore mine following an eight-year legal battle has been hailed by the company and its parent Anglo American as a sign that SA’s institutions do work to fight corruption, if businesses use them constructively. This comes after the Department of Mineral Resources granted the contested 21.4% in the Sishen mine to Kumba, which already owned the rest of the Sishen right, following a 2013 Constitutional Court ruling in Kumba’s favour. The conditions placed on the granting of the stake will cost the Anglo American subsidiary about R100m to fulfil, and although these were agreed in talks between Kumba and the department within months of the court ruling, Kumba ultimately had to launch an internal appeal process in terms of the mining legislation to obtain Mineral Resources Minister Mosebenzi Zwane’s signature on the award. Anglo American CEO Mark Cutifani said on Thursday the granting of the share to Kumba was a positive ou...
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