[miningmx.com] — KUMBA Iron Ore on Thursday rubbished the department of mineral resources’ (DMR’s) assertion that its bid for the disputed mineral right at Sishen mine was irregular or fraudulent, saying it will do whatever is necessary to challenge the refusal of the application.
“Sishen Iron Ore Company (SIOC, a Kumba subsidiary) rejects the DMR’s unsubstantiated allegations that the submission of SIOC’s May 2009 application was in any way premature or irregular,’ read a statement issued by the company.
“It should be noted in this regard that the DMR has not provided SIOC with any evidence whatsoever to substantiate these allegations. SIOC will accordingly take the necessary steps to challenge the DMR rejection decision.’
The announcement came after the DMR notified Kumba in a letter delivered on Tuesday that the group’s application was turned down for a number of reasons, including the “irregular, misleading and fraudulent manner’ in which it was submitted, according to a report in Business Day newspaper.
Kumba said it was dismayed over the fact that SIOC was only formally notified of the DMR’s decision nearly two years after the group submitted the application for the 21.4% mining right in Sishen, which previously belonged to ArcelorMittal.
The DMR’s letter further read granting Kumba the mining right would lead to the concentration of iron ore production and frustrate the Mineral and Petroleum Resources Act, intended to encourage historically disadvantaged groups’ entry into the sector.
The letter 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 previously 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.
In the latest statement, Kumba accused the DMR and ICT of delaying legal proceedings, saying neither party has honoured undertakings to file answering affidavits by January 18 and 24 respectively.
“On receipt of such affidavits, SIOC will respond appropriately,’ said Kumba.
In a statement issued late Thursday afternoon, the DMR said it would file its answering affidavit before the close of business.
“It is expected that the First Respondent’s (Shabangu) answering papers will be served on the applicant and other Respondents by close of business today, and filed with the Registrar of the High Court soon thereafter.”
