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Johannesburg - Imperial Crown Trading 289 (ICT) has advised Kumba Iron Ore [JSE:KIO] it wants to access the Sishen mine site to investigate ways in which it can exercise its controversially gained prospecting rights.
If ICT exercises its rights, this would force production at the Sishen mine - one of the world's biggest iron ore producers - to a standstill.
Jagdish Parekh, the controlling shareholder in ICT, told Sake24.com in an exclusive interview his company needed to apply to Kumba for access to the property to discover the best way of exercising its rights. Kumba has been asked to respond within 14 days so that ICT can take its geologists and technical teams to Sishen.
On Friday, Kumba confirmed that it had received the notice from ICT's legal representatives, but had informed ICT access to Sishen was denied, pending finalisation of a review of the rights awarded to ICT.
In a declaration that forms part of court documents, Kumba's legal head Robert Both spelt out the consequences if ICT should gain access to the site.
He stated Kumba would have to halt its production of iron ore, because geological aerial surveys cannot be done while blasting is in progress. Blasting is done every day at Sishen, said Botha
According to him, Kumba will also have to remove all heavy machinery and vehicles, as well as all electrical equipment, because their presence on the mining site would disturb geophysical surveys.
Earlier this year in a highly controversial manner ICT gained the rights that had previously belonged to ArcelorMittal before they lapsed. As a consequence Kumba no longer delivers iron ore to ArcelorMittal at bargain prices, which to the end of last year had been saving ArcelorMittal up to R4bn a year.
Meanwhile, Anglo American [JSE:AGL] stated in court documents that Sishen mine rights were being "grabbed", similarly to the way Zimbabwean farmers were deposed of their farms.
At the end of May, Kumba submitted a court application to the North Gauteng High Court in Pretoria to contest the decision by the department of minerals.
However, the court file - a legal public document - has since disappeared. It is apparently illegally being withheld from public view to prevent it being disclosed and souring relations between Anglo and the government, which could nullify chances of a settlement over the Sishen rights.
Anglo, by far the largest holder of mineral rights in the country, is seemingly attempting to avoid a court confrontation, preferring to reach a negotiated settlement via a review by the department of mineral resources.
- Sake24.com
If ICT exercises its rights, this would force production at the Sishen mine - one of the world's biggest iron ore producers - to a standstill.
Jagdish Parekh, the controlling shareholder in ICT, told Sake24.com in an exclusive interview his company needed to apply to Kumba for access to the property to discover the best way of exercising its rights. Kumba has been asked to respond within 14 days so that ICT can take its geologists and technical teams to Sishen.
On Friday, Kumba confirmed that it had received the notice from ICT's legal representatives, but had informed ICT access to Sishen was denied, pending finalisation of a review of the rights awarded to ICT.
In a declaration that forms part of court documents, Kumba's legal head Robert Both spelt out the consequences if ICT should gain access to the site.
He stated Kumba would have to halt its production of iron ore, because geological aerial surveys cannot be done while blasting is in progress. Blasting is done every day at Sishen, said Botha
According to him, Kumba will also have to remove all heavy machinery and vehicles, as well as all electrical equipment, because their presence on the mining site would disturb geophysical surveys.
Earlier this year in a highly controversial manner ICT gained the rights that had previously belonged to ArcelorMittal before they lapsed. As a consequence Kumba no longer delivers iron ore to ArcelorMittal at bargain prices, which to the end of last year had been saving ArcelorMittal up to R4bn a year.
Meanwhile, Anglo American [JSE:AGL] stated in court documents that Sishen mine rights were being "grabbed", similarly to the way Zimbabwean farmers were deposed of their farms.
At the end of May, Kumba submitted a court application to the North Gauteng High Court in Pretoria to contest the decision by the department of minerals.
However, the court file - a legal public document - has since disappeared. It is apparently illegally being withheld from public view to prevent it being disclosed and souring relations between Anglo and the government, which could nullify chances of a settlement over the Sishen rights.
Anglo, by far the largest holder of mineral rights in the country, is seemingly attempting to avoid a court confrontation, preferring to reach a negotiated settlement via a review by the department of mineral resources.
- Sake24.com
