Following the granting of a prospecting right to an entity known as Imperial Crown Trading 289 (Proprietary) Limited (ICT), the Department of Mineral Resources (DMR) has received written concerns from Sishen Iron Ore Company (Proprietary) Limited (SIOC). The following serves to state the position of the DMR with regard to the above.
During 2005, SIOC applied for conversion of its old order mining right which it held in respect of properties comprising an area commonly known as the Sishen Mine. At that time, SIOC held a 78.6 percent undivided share in the rights to minerals relating to the properties involved, whilst Arcellor Mittal South Africa Limited (AMSA) held the remaining 21.4 percent undivided share of the said mineral rights The old order mining right of SIOC was subsequently converted into a new mining right on 12 May 2008.
AMSA, however, failed to convert its old order mining right by 30 April 2009, as was required by law. The effect of this omission by AMSA was that its old order mining right ceased to exist and reverted to the custodianship of the state, thus enabling any person to be legally entitled to make an application in terms of the Minerals and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002). It was in the light of this, that SIOC and ICT both applied for a mining right and a prospecting right respectively, on the same day and in respect of the Sishen Mine.
The department duly accepted both applications, as required by law, and duly started processing these applications in accordance with the relevant statutory provisions. On 30 November 2009, this administrative process duly led to the granting of a prospecting right to ICT in respect of the area (certain parts of the Sishen Mine) and the minerals (manganese and iron ore) applied for by the company. The prospecting right was granted in respect of the 21.4 percent undivided shares and was subsequently issued.
The written representations received from SIOC subsequent to the granting of the abovementioned prospecting right, appear to raise various concerns of a legal and technical nature. The DMR has accordingly been requested by the company to consider these concerns and address same through an internal appeal or review process.
Having perused the written representations by SIOC, the department is of the view that the company’s concerns warrant further investigation into the legal and technical aspects of the matter. It is therefore deemed appropriate to initiate an internal review process provided for in the act, whereby the matter will ultimately be forwarded to the Minister of Mineral Resources for a final ruling in terms of the relevant statutory provisions of the act Mining and Petroleum Resources Development Act (MPRDA).
Enquiries:
Thabo Gazi
Cell: 082 4466 065
Tel: 012 679 9081
E-mail: thabo.gazi@dme.gov.za
Issued by: Department of Mineral Resources
23 March 2010
