The Directorate for Priority Crimes Investigation (DPCI), also known as the Hawks, raided the offices of the Department of Mineral Resources (DMR) in Pretoria and Kimberley on Wednesday.

Spokesperson McIntosh Polela told Mining Weekly Online the raids followed allegations of fraudulent activity related to the awarding of prospecting rights.

He said that the Sishen Iron Ore Company (SIOC), which is 74% held by Anglo American’s Kumba Iron Ore (Kumba), had laid criminal charges with the South African Police Services.

“The charges relate to a second company fraudulently receiving mining rights with assistance from people at the DMR,” Polela explained.

A lawyer for Imperial Crown Trading 289 (ICT) told newswire Bloomberg that the company’s offices were also raided on Wednesday by South African investigators.

Kumba is currently involved in a high-profile High Court review of a controversial decision by the DMR to grant a prospecting right to ICT in respect of a right previously held at the Sishen mine, in the Northern Cape, by ArcelorMittal South Africa.

The DMR said it is fully cooperating with the Hawks and would provide all the assistance required by them.