Kumba Iron Ore and the Department of Mineral Resources at it again. This time I guess it is serious. Every time it is serious, but this one is most concerning for shareholders. And I must be honest, I think that it is going to go all the way to the courts. And that friends, will be the litmus test of how favourable it is for hard earned shareholder funds to be put to work in South Africa. Which then has the consequences for everyone.
OK, first the background again, if you are confused, this is the company's side: Sishen Supply Agreement and Mineral Rights. And new news, Reuters reported this update this morning ---> S.Africa says Kumba mine right bid "fraudulent": paper. Which is seemingly from all the articles that I have read, laughable, because the ICT papers were thought to be a copy paste of those of Kumba Iron Ore's. Thought to be. There is a whole lot of news on the issue, the thing that I care about most is how does this reflect on the country as an investment destination, if it runs the full course?
I am seemingly the only one overreacting here, the stock is higher this morning. Perhaps the release from Kumba Iron Ore this morning puts folks minds at rest. SOIC is the Sishen Iron Ore Company, the asset in question: "SIOC rejects the DMR's unsubstantiated allegations that the submission of SIOC's May 2009 Application was in any way premature or irregular in any respect.