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The government gave Imperial the 21.4 percent-stake in the rights, which reverted to the state after ArcelorMittal South Africa Ltd. failed to renew them in time, Department of Mineral Resources spokesman Jeremy Michaels said in a text message today. “The right had reverted to the state, which is the custodian of South Africa’s mineral wealth,” he said. He didn’t respond to a text seeking details on Imperial.

Kumba’s Sishen Iron Ore Co. Ltd. unit had applied for the stake and lodged an appeal against the state’s decision to grant them to a third party, it said in a statement yesterday. The government awarded the rights to a company linked to the ruling African National Congress, the News24 online news service reported, without saying where it got the information.

Kumba, a unit of Anglo American Plc, applied for the mining rights after ArcelorMittal South Africa failed to renew its mining rights by May 2009, prompting Kumba to cancel a nine year-old supply contract that provided Africa’s largest steelmaker with discounted ore. The companies are in talks over the contract, which provides ArcelorMittal South Africa with ore at cost plus 3 percent.

ArcelorMittal South Africa spokeswoman Marion Green- Thompson didn’t immediately respond to a message left on her mobile phone seeking comment.

Source from:www.businessweek.com