Update on Kumba and Lonmin mining rights dispute

Aug. 26, 2010 - Kumba Iron Ore and Lonmin have challenged the South African government's grant of a prospecting right to Imperial Crown Trading and Keysha Investments respectively, over areas they were mining.
Below is a summary of the mining act and a short chronology of both disputes.
SOUTH AFRICA'S MINING ACT
1. Mining companies were required to convert their mining rights by a set date to conform with a new mining act that took effect in 2004, or lose them altogether.
2. To regain a lost right, they would need to file a new application, which would be processed on a first come, first served basis.
3. Companies that planned to mine for associated minerals produced as offshoots from their main mining operations needed to file a separate application to do so.
THE KUMBA DISPUTE
April 30th 2009
ArcelorMittal South Africa's mining right over a 21.4% stake in Kumba's Sishen mine lapses after the steelmaker fails to convert it into a new one.
May 4th 2009
Kumba files an application for ArcelorMittal's lapsed right, while ICT files a bid for prospecting linked to the 21.4% stake.
Feb 26th 2010
Kumba suspends preferential iron ore supply deal with ArcelorMittal South Africa and says it would supply the steelmaker at market prices from March 1. ArcelorMittal insists the deal still stands.
March 1
Kumba launches an appeal against the mining ministry granting a prospecting right to ICT.
May 11
ArcelorMittal says it will take its dispute with Kumba to arbitration.
May 21
Kumba applies to court to review the mining ministry's granting of a prospecting right to ICT.
July 22
ArcelorMittal and Kumba say they have reached an interim agreement for the steelmaker to buy ore from Kumba over the next year at about half of the market price pending resolution of the dispute.
Aug 10
ArcelorMittal says it plans to buy ICT for ZAR 800 million to regain its rights over the Sishen mine and put the preferential pricing deal back in place. Kumba says the acquisition would have no impact on the dispute.
ArcelorMittal also says it would transfer 26% of its shares to a group of black investors including ICT and an investment group led by the son of South African President Jacob Zuma and employees.
Aug 17
Mining Minister Susan Shabangu overturns Kumba's appeal and upholds ICT's right, but says she will investigate ArcelorMittal's plan to buy ICT. Kumba says it will continue fighting the case in court.
THE LONMIN DISPUTE
2006-2008
Lonmin converts its old rights to mine Platinum Group Metals into a new mining right.
May 2009
Keysha Investments is awarded a prospecting right for base metals over parts of Lonmin PGM mining areas.
December 2009
Lonmin files application to mine associated minerals in all areas where it mines for PGMs.
June 2010
Lonmin appeals the granting of a prospecting right to Keysha. A high court orders Lonmin to account to Keysha on its sale of base metals from Keysha's prospecting areas.
Aug 11
South Africa's mining ministry grants Lonmin the right to mine associated minerals, except for the area over which Keysha holds a prospecting right.
Lonmin said that it remains entitled to mine and dispose of the associated minerals mined from the Keysha area under a court order. This entitlement will remain until Keysha converts its prospecting right to a mining right.