Kumba iron ore to appeal $341 million South Africa tax ruling

Kumba Iron Ore Ltd., majority owned by Anglo American Plc, will appeal a tax ruling by the South African Revenue Service saying it owes 5.5 billion rand ($341 million).

The sum includes 3.7 billion rand in interest and penalties and relates to the tax years from 2006 to 2010, the company said in a statement Monday. It applies to Sishen Iron Ore Co., which is 73.9 percent owned by Kumba and is Africa’s biggest mine for the steelmaking ingredient.

Sishen “has cooperated fully with SARS during the course of the audit, but, supported by its specialist tax and legal advisers, disagrees with SARS’ audit findings,” the company said.

Kumba will object “vigorously” to the assessment and apply to SARS to suspend payment of the money until the matter is resolved, it said.

Faced with an iron ore price that’s down 67 percent since the beginning of 2013, parent Anglo American said this month it will exit its 69.7 percent stake in Kumba by next year.

-Bloomberg