Kumba challenges ICT mining right award

Fri Sep 3, 2010 5:09pm GMT

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* Says ICT used Kumba's title deeds in application

JOHANNESBURG, Sept 3 (Reuters) - Kumba Iron Ore (KIOJ.J: Quote) has challenged an application lodged by Imperial Crown Trading (ICT) over a disputed mineral prospecting right at Kumba's Sishen mine in South Africa, court documents showed on Friday.

Kumba, a unit of global miner Anglo American (AAL.L: Quote), said in the documents filed in court that ICT had used its title deeds to form part of the documents it had submitted to apply for a prospecting right.

Kumba said there were also anomalies in the government's decision-making process to award ICT a prospecting right.

"The ICT application is fraudulent and the product of a corrupt process," read papers lodged by Kumba at the North Gauteng High Court in Pretoria.

ICT, a little-known privately-owned firm, won the rights after steel giant ArcelorMittal's South African unit (ACLJ.J: Quote), which held mining claims over that same stake, failed to renew the right.

ICT was not immediately available to comment.

South Africa's handling of this and another disputed mine right awards has damaged the resource-rich country's reputation and raised investor concerns over transparency and governance. [ID:nLDE67F17V] Continued...

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