[miningmx.com] — THE department of mineral resources has rejected Kumba Iron Ore’s right application over a disputed portion of the Sishen mine because of the “fraudulent’ and “premature’ application for the stake, Business Day reported on Thursday.
According to the report, the department’s licensing committee met on Monday and rejected Kumba’s application for a number of reason, including the “irregular, misleading and fraudulent manner’ in which it was submitted.
“I can confirm we have responded to their application but we do not comment on the refusal or acceptance of mining or prospecting right applications,’ the report quoted the department’s director-general Sandile Nogxina.
In a rejection letter addressed to Kumba, the department said granting Kumba the mining right would lead to the concentration of iron-ore production and frustrate the Mineral and Petrolum Resources Act, intended to encourage historically disadvantaged groups’ entry into the sector.
The report also stated Kumba’s application did not include scoping and environmental impact assessment reports as required by the act, and Kumba had failed to submit an environmental management plan.
Kumba initially appealed the department’s decision to award the right to Imperial Crown Trading 289, saying there were anomalies in the government’s decision making process.
In September, Mines Minister Susan Shabangu said the department had rejected the appeal, but added court proceedings would have the final say on the matter.
In papers filed at the High Court in Pretoria, Kumba alleged ICT got hold of its application for the prospecting rights and forged parts of it over the long weekend extending from April 30 to May 4 2009.
It is likely that the reasons for refusing Kumba’s mining application will form the basis of the department’s response to Kumba’s arguments in court.
