[miningmx] — KALAHARI Resources has won another round in its legal battle against its joint shareholder in the Kalagadi Manganese project, ArcelorMittal.
The South Gauteng High Court on Thursday ordered ArcelorMittal to immediately pay R241.1m as part of the group’s shareholding commitment towards the Kalagadi project in execution of a court judgment delivered on June 26, despite the global steel giant’s intention to request leave to appeal against the earlier judgment.
However, Kalahari is required to provide sufficient security, including a pledge of all its shareholding and loan accounts in Kalagadi Manganese, in the event that ArcelorMittal is successful in the appeal process. Its application for leave to appeal would be heard on August 31.
Kalagadi Manganese has built a manganese mine and sinter plant near Hotazel in the Northern Cape. There are also additional plans to build a ferro-manganese smelter in Coega; a total investment of some R11.2bn.
ArcelorMittal, a 50% shareholder in Kalagadi, said its initial refusal to pay over the R241.1m was based on corporate governance issues and its skepticism over the viability of the ferro-manganese smelter. It has already invested more than $430m on the project.
“ArcelorMittal believes in the development of the mine and sinter project, and potentially also the smelter, provided the feasibility of the smelter is reviewed and demonstrated to be financially feasible on a standalone basis,’ the steel giant said in a statement.
Daphne Mashile-Nkosi, chairwoman of both Kalahari Resources and Kalagadi Manganese, told Miningmx the mine and sinter plant were cold commissioned on Monday, with the project on track to make its first delivery before the end of the year.
She said the R241m would go towards the completion of some infrastructure around the project, like the ore preparation plant and rail connection to Transnet Freight Rail’s main manganese line. She also said the payment would unlock the funding secured from debt providers towards the construction of the smelter.
