Johannesburg – Manngwe Mining has raised the alarm over what it describes as an abuse of monopsony power by ArcelorMittal South Africa (AMSA).
Manngwe states that AMSA, the dominant buyer of its iron ore, was attempting to “force ownership of the operation out of the hands of its shareholders and community”.
AMSA was, in effect, the sole buyer of the iron ore produced at Manngwe’s Assen Iron Ore Mine.
Manngwe accuses AMSA of using that monopsony position to withhold and ration purchase orders.
AMSA allegedly made their resumption conditional on Manngwe surrendering equity in the business — pressure that ultimately forced the Assen operation to halt.
Manngwe Mining is a 100% black-owned mining company with several mining interests, of which the Assen Iron Ore Mine near Brits in the North West Province is one.
The company has confirmed that the dispute is ongoing, with legal processes underway and further filings expected before the Competition Tribunal this week.
According to Manngwe Mining, AMSA’s conduct has undermined more than a decade of investment, development, and community-centred growth — and is being pursued by leveraging AMSA’s power as effectively the only buyer of the mine’s output.
“AMSA was, in effect, our only buyer — and it was that monopsony position that made this possible,” says Manngwe Mining CEO Mutheiwana Rambuwani.
“To make the resumption of orders conditional on our parting with equity placed unsustainable pressure on the business.
“We believe that conduct is unfair, and not in line with the spirit of the Competition Act and the protections it affords suppliers — and it is the reason we have approached the Tribunal.”
The company has sought interim relief from the Competition Tribunal, with AMSA expected to file its responding affidavit this week.
Manngwe Mining maintains that the conduct it has experienced — the use of monopsony power to extract equity — amounts to an abuse of a dominant position under the Competition Act 89 of 1998 and is not only commercially unreasonable but also damaging to the broader ecosystem that relies on the mine’s continued operation.
“Our foremost concern is the people who depend on this enterprise — our employees, our suppliers, our shareholders, and our community,” Rambuwani explains.
“They built the Assen operation into the going concern it is today, and committed their capital and their labour to it.
“Those are the livelihoods now at stake, and safeguarding them is our responsibility.”
Manngwe Mining has also expressed concern about the reputational impact of the ongoing dispute, noting that AMSA’s conduct has already created uncertainty among the workers, families, and those whose livelihoods depend on the Assen operation.
This includes suppliers and the surrounding communities of Rasai and Kwaarikraal villages that have grown alongside the mine over more than a decade.
“The uncertainty created by this dispute has placed real strain on the many stakeholders who rely on this operation — our workforce, our suppliers, and our community,” laments Rambuwani.
“They deserve clarity and fairness, and it is they who carry the cost of a situation they did nothing to create.”
Despite the escalating tensions, the company emphasises that it remains committed to constructive engagement and to finding a resolution that protects the integrity of the business.
“We have always valued our commercial relationship with AMSA, and we invested heavily to meet their specifications and security-of-supply requirements over many years,” Rambuwani notes.
“We continue to believe a negotiated resolution is achievable — one that keeps Manngwe Mining’s Assen Iron Ore Mine in the hands of its current shareholders while we continue to supply AMSA on fair commercial terms, as we always have.”
Manngwe Mining has pledged full cooperation with the Competition Tribunal and all relevant authorities and stakeholders as the process unfolds.
The company intends to provide all necessary information to demonstrate the harm that could result from AMSA’s conduct.
“Competition law exists, in part, to ensure that a dominant buyer cannot turn a supplier’s success in building a valuable asset into the price for its survival,” Rambuwani concludes.
“We are confident in the strength of our position and that a fair examination of the facts will vindicate it.
“We will continue to engage in good faith, on terms that keep the Assen mine in our hands and protect the jobs it sustains, the opportunities it creates for our communities, and the suppliers who depend on it.”
AMSA has denied Manngwe Mining’s accusations of monopoly abuse, insisting that its actions were part of normal commercial negotiations, not coercion.
In the main, Manngwe alleges AMSA tried to force it into selling its R606 million Assen iron ore mine for just R1, but AMSA rejects claims of abuse of dominance, racial discrimination, or unlawful buyer power.
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The dispute is now before the Competition Commission and Tribunal.
