NUMSA Statement on the ArcelorMittal and Imperial Crown Trading Looting Scheme
1. The National Union of Metalworkers of South Africa (Numsa) is dismayed, disgusted and shocked by what clearly appears to be a get-reach-quick scheme involving a so-called BEE consortium, Imperial Crown Trading (ICT) 289. The scheme, recently announced by ArcelorMittal, includes the buy-back for R800 million of the iron ore mineral rights previously allocated to ICT.
2. Numsa is aware that many allegations have been made regarding the allocation of mineral rights previously owned by ArcelorMittal by the Department of Mineral Resources (DMR) to ICT. This occurred after ArcelorMittal failed to comply with the mineral rights act and did not re-apply for the mineral rights on time. Allegations were then widely reported that ICT is a fake company with absolutely no capacity to mine iron ore. All that seemingly qualified them to earn the rights were their strong political links to key centres of political power.
3. Numsa rejects with contempt the dubious deal permitted by DMR. It seems that the deal was allowed and that millions will change hands, despite the fact that ICT appears to have possessed no capacity to utilize the rights it was granted.
4. A further question is how ICT is permitted to sell the rights back to ArcelorMittal without the direct involvement of the DMR?
5. If the department has in fact approved the deal, on what basis can it have done so, given the obvious atmosphere of corruption that surrounds it? DMR has a lot of explaining to do.