Assmang tax misstep deepens Motsepe-Sacco mining feud - TimesLIVE

The battle for control of the iron ore and manganese ore mining house Assmang by JSE-listed African Rainbow Minerals (ARM) and Assore has taken a new twist, with the latter seeking to have senior ARM executive Kajal Bissessor declared a delinquent director.

Assmang is jointly controlled by Assore and ARM, each of which holds 50% share capital and voting rights.

The basis of Assore’s court application to have Bissessor declared a delinquent director is the failure by Assmang to file its tax returns for financial 2025 timeously.

Assore says this failure was due to Bissessor, who is chief commercial officer at ARM, failing to put the interests of Assmang ahead of those of ARM in her dual roles. It says in its particulars of claim the failure by Assmang to meet the tax deadline amounted to gross negligence.

But ARM has put the blame for Assmang’s failure to file its tax returns timeously on lack of information from Assore, which conducts marketing activities for the joint venture.

ARM has demanded access to Assore’s bank statements, a demand Assore has rejected on the grounds that it has already provided comprehensive financial information for tax and accounting purposes during the 20-year lifespan of the joint venture.

Assore sees the failure to submit the tax returns on time as part of a bigger plan to paint it as a rogue partner in the relationship, Business Times has learnt. This is illustrated in the group’s particulars of claim, in which it asks the court to safeguard its rights to be informed and partake in decision-making over the affairs of Assmang without being reduced to a junior partner.

“The non-filing of returns was thus an illegitimate and unlawful means to advance ARM’s shareholder position through the guise of Assmang, and, in so doing, Ms Bissessor — as Assmang’s public officer — preferred ARM’s position to Assmang’s, as she adopted ARM’s cause even though this stood materially to prejudice Assmang, and knowingly and deliberately breached her statutory and fiduciary duties owed to Assmang,” Assore’s court papers read.

Bissessor first attempted to weaponise the information requests ... [she] has caused Assmang harm by causing it to miss statutory filing deadlines and exposing it to the potential imposition of penalties, reputational damage and enhanced regulatory scrutiny

“Ms Bissessor first attempted to weaponise the information requests ... Ms Bissessor has caused Assmang harm by causing it to miss statutory filing deadlines and exposing it to the potential imposition of penalties, reputational damage and enhanced regulatory scrutiny.”

The tax return for the year in question was due by the end of June 2026, but had yet to be submitted as of this weekend.

The dispute pits two of South Africa’s prominent mining families — ARM is chaired by Patrice Motsepe, while Desmond Sacco sits on top of the Assore empire — against each other for control of Assmang.

The tensions, which have now culminated in Assore going to court, have been brewing for the past 16 months. Assore, which delisted from the JSE in 2020, accuses ARM of undermining the shareholder agreement governing the joint venture and of taking unilateral decisions.

Assmang is a material asset for both Assore and ARM, contributing meaningfully to their earnings bases.

Assore says in its papers that the tax issue is not an isolated event but forms a pattern of what it says has been a blatant disregard of its rights by ARM since July last year.

Assore contends that in this period, it has been denied access to critical reports — including those of quarterly Assmang management meetings and its weekly operations — and to information about management decisions concerning the appointment of material service providers.

Assore cites the appointment of several senior Assmang managers that were made without its knowledge, together with the suspension of senior staffers, as part of a pattern of ARM running the venture unilaterally and in breach of the shareholder agreement.

“Assore’s representatives were not only excluded from considering which candidates fell to be shortlisted for the SGM [senior general manager] positions but were further excluded/to be excluded entirely from the final appointment decision, with an ARM-only panel making the ultimate decisions in this regard,” the particulars of claim reads.

“ARM has continued to exclude Assore and has unlawfully and unilaterally made, or intends to make, the appointments of the Black Rock and Khumani SGMs.” These are two Northern Cape mining operations run by Assmang.

Motsepe and his Assore counterparts met early in September to try to resolve their differences, to no avail. Assore said Motsepe stuck to ARM’s position at the meeting, resulting in the decision to go to court. It wants an order declaring it is entitled to information related to Assmang operations and should be privy to decision-making, including the hiring of senior managers.

ARM informed the market two weeks ago about Assore’s application.

“Based on legal advice received, ARM believes that Assore’s claims and allegations have no substantive merit. ARM intends to defend the proceedings and will be bringing its own proceedings against Assore relating, inter alia, to its rights to manage Assmang in accordance with the shareholders’ agreement and to obtain the information and records required to comply with Assmang’s legal and regulatory obligations,” ARM said.

ARM Ferrous, which houses the Assmang investment, reported a 42% plunge in headline earnings in financial 2025 to R2bn, driven by lower contributions from the iron ore and manganese divisions.

Assmang reported sales of R33bn in the year ended June 2026, with ARM’s 50% share amounting to R16.6bn.

Motsepe’s Ubuntu-Botho owns about 43% of ARM, which is worth R32bn on the JSE.