A dispute between African Rainbow Minerals (ARM) and Assore over control of Assmang has escalated, with Assore seeking to have ARM executive Kajal Bissessor declared a delinquent director. The move is related to Assmang's failure to file its tax returns for financial 2025 on time. Assore claims Bissessor's actions led to the delay, while ARM blames a lack of information from Assore. The disagreement has been brewing for 16 months and pits two prominent South African mining families against each other.
Assmang is jointly controlled by ARM and Assore, each holding 50% share capital and voting rights. The company's tax return for the year in question was due by the end of June 2026 but had yet to be submitted as of the past weekend. Assore's court application claims Bissessor failed to prioritize Assmang's interests over those of ARM, leading to gross negligence. ARM has demanded access to Assore's bank statements, which Assore has rejected, citing comprehensive financial information already provided.
The dispute involves two of South Africa's prominent mining families, with ARM chaired by Patrice Motsepe and Assore led by Desmond Sacco. The tensions have been building for 16 months, with Assore accusing ARM of undermining the shareholder agreement and taking unilateral decisions. Assmang is a significant asset for both companies, contributing substantially to their earnings.
Assore claims the tax issue is part of a larger pattern of ARM disregarding its rights since July last year. The company says it has been denied access to critical reports, including quarterly Assmang management meetings and weekly operations updates. Assore also cites the appointment of senior Assmang managers without its knowledge as part of ARM's unilateral actions.
ARM has responded to Assore's application, stating that it believes the claims have no merit and intends to defend the proceedings. The company will also bring its own proceedings against Assore relating to its rights to manage Assmang and obtain necessary information. ARM Ferrous reported a 42% plunge in headline earnings in financial 2025, driven by lower contributions from Assmang's iron ore and manganese divisions.
The disagreement has significant implications for both ARM and Assore, with Assmang reporting sales of R33bn in the year ended June 2026. ARM's 50% share of Assmang's sales amounted to R16.6bn. Motsepe's Ubuntu-Botho owns about 43% of ARM, which is worth R32bn on the JSE. The companies' efforts to resolve their differences have so far been unsuccessful.
Motsepe and Sacco met in early September to try to resolve their differences, but the meeting was unsuccessful. Assore is seeking an order declaring its entitlement to information related to Assmang operations and decision-making, including the hiring of senior managers. The outcome of the court application and subsequent proceedings will have significant implications for the control of Assmang and the future of the joint venture.
Key points
- - The dispute between ARM and Assore is over control of Assmang, with Assore seeking to have ARM executive Kajal Bissessor declared a delinquent director. - The disagreement has been brewing for 16 months and pits two prominent South African mining families against each other. - The outcome of the court application will have significant implications for the control of Assmang and the future of the joint venture.
