ARCELORMITTAL, the world's biggest steel maker, must pay R241m towards the Kalagadi Manganese project, the high court in Johannesburg ruled yesterday.

The mine and sinter plant project is housed in Kalagadi Manganese, an unlisted company 50% owned by ArcelorMittal, the parent of the local steel maker ArcelorMittal SA, 40% by Kalahari Resources, with the Industrial Development Corporation owning the remaining 10%.

Relations between ArcelorMittal and Kalahari, which is headed by Daphne Mashile-Nkosi, have broken down, with the steel maker alleging a lack of corporate governance in Kalagadi.

Kalahari accuses ArcelorMittal of wanting to wrest control of Kalagadi away from other shareholders.

Matters came to a head when Kalahari approached the court to compel ArcelorMittal to pay R241m towards the project and to honour its obligations under a shareholders' agreement.

In June, the court ruled in Kalahari's favour, but ArcelorMittal lodged an application to appeal and did not pay.

Yesterday, ArcelorMittal was ordered to comply with the ruling while it awaited leave to appeal for the June judgment.

ArcelorMittal said that because the payment would be made ahead of its application being heard at the end of this month, Kalahari had to put up security. It said this included "a pledge of all Kalahari Resources' shareholding and loan account in Kalagadi Manganese, in the event that ArcelorMittal was successful in the appeal process".

Ms Mashile-Nkosi declined to comment on this statement, saying she wanted to see the written judgment of yesterday's ruling before commenting.

"There's a difference of opinion about that matter and I don't want to comment on it," Ms Mashile-Nkosi said.

ArcelorMittal said the appeal process would start soon if its leave to appeal was granted.