Kumba Iron Ore Ltd. (KIO.JO), South Africa's largest producer of the steel-making ingredient, will challenge the decision of South Africa's Department of Minerals to reject its application for mining rights to a portion of the Sishen mine and has already reapplied, the company said Thursday.

The Department of Minerals told Kumba Tuesday that it had refused the application made in May 2009 for a mining right over a 21.4% stake in Sishen. Kumba said it reapplied Wednesday and will appeal the Department's decision.

The minority right over Sishen used to rest with ArcelorMittal South Africa Ltd. (ACL.JO) but was ceded to the government after it failed to renew the rights by a government deadline in 2009.

Kumba last year launched a challenge to the government's earlier decision to award prospecting rights on the 21.4% stake in Sishen to Imperial Crown Trading, taking its dispute to the High Court in Pretoria.

-By Devon Maylie, Dow Jones Newswires; +44 (20) 7842 9483; devon.maylie@dowjones.com
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