Share

Kumba granted residual mining right

Johannesburg – The Department of Mineral Resources (DMR) has granted Kumba Iron Ore [JSE:KIO] the residual 21.4% share of the mining right for the Sishen mine. 

The residual has been granted to Kumba’s subsidiary Sishen Iron Ore Company (SIOC). According to a statement released by the company, this follows the completion of an internal appeal process.

READ: Kumba Iron Ore to appeal R5.5bn tax ruling

SIOC is now the “sole and exclusive” holder of the right to mine iron ore and quartzite at the Sishen mine. “This residual mining right will be incorporated into the 78.6% Sishen mining right that SIOC successfully converted in 2009,” stated the company.

The consent to amend the SIOC mining right comes with conditions. This includes the continuation of the existing export parity price-based supply agreement between SIOC and ArcelorMittal [JSE:ACL]. This is to ensure ArcelorMittal maintains its role as a strategic South African steel producer, and that SIOC continues to support skills development, research and development and initiatives to enable preferential procurement. 

“Kumba welcomes the news of being awarded the residual right for the Sishen mine… Kumba is fully committed to transformation and will continue contributing towards the achievement of South Africa’s developmental objectives,” said Kumba CEO Themba Mkhwanazi.

Kumba shares were up 3.05%, trading at R129.91 at 11:28. 

ALSO READ: Kumba slapped with another R1bn tax bill

In September, SIOC announced its decision to dispute a R1bn tax bill from the South African Revenue Service (Sars) for the 2011 tax year.

Fin24 previously reported that the company would cooperate fully with Sars, but disagreed with its audit findings.

In addition to the R1bn tax assessment for 2011, Sishen had also received a R5.5bn tax claim in February for the 2006 to 2010 tax years. The company also disputed that.



Read Fin24's top stories trending on Twitter:


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders