JOHANNESBURG (Reuters) - Kumba Iron Ore on Saturday dismissed allegations by a former government official that it was manipulating the system to gain rights to a stake in one of its mines previously held by ArcelorMittal South Africa.
Former deputy director general at the Mining Ministry, Jacinto Rocha said Kumba had applied for the mining right before ArcelorMittal's right expired, fuelling an ongoing dispute between Kumba and the South African unit of the world's largest steelmaker (see here).
Kumba, the world's 10th largest producer of iron ore, ended a preferential deal under which it sold ore to ArcelorMittal at a discount this year after ArcelorMittal failed to convert its mining right over a 21.4 percent stake in Kumba's Sishen mine.
A prospecting right over that same stake was later awarded to Imperial Crown Trading (ICT), which Kumba, a unit of Anglo American, is contesting in court, saying the government's decision was "fundamentally flawed".
ArcelorMittal's mining right was expiring on April 30 last year, and Rocha said Kumba launched its application the same day, asking officials to date it May 1, a public holiday.
Rocha, who was part of the team which later awarded the right to ICT, said Kumba did so to gain advantage over other applicants, as ICT applied for its prospecting right on May 4, the first working day after the expiry of ArcelorMittal's right.