The Mpumalanga High Courts dismisses Kego Mine’s appeal to set aside an order stopping the company from mining in the area.
ILLEGAL mining isn’t only a concern with zama zamas.
Large corporations also face similar accusations.
Recently, Kego Mining and Subpromex lost their appeal to overturn a Mpumalanga High Court order that stopped them from mining illegally in the area.
In a judgment handed down on Monday, 18 November, Judge Mpopelele Bruce Langa found that the applicants failed to show the order of 21 October is appealable.
“I find that the interim order is just that and not a final order as contended. The order was clearly granted pendente lite to avoid injustice and hardship and was only a prima facie determination of the facts and legal principles on the issues in Part A,” he said.
He said the grounds of appeal also lacked merit and should be dismissed.
The matter stems from an agreement between Woestalleen, Kego, and Subpromex, entitling the two companies to mine coal in the area and sell it for their own profit.
Woestalleen was granted the mining right on 22 June 2023.
Kego and Subpromex were required to comply with all legal requirements, including the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA), the National Water Act 36 of 1998 (NWA), and the Mine Health and Safety Act 29 of 1996 (MHSA).
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They had to ensure optimal and efficient mining in accordance with all applicable legislation and best practices.
However, Woestalleen realised that the companies didn’t have the necessary water use licence and failed to submit reports on their mining operations.
Woestalleen then approached the court to stop them from mining. Due to the alleged conduct, in a letter dated 13 September 2024, Woestalleen and Business Rescue Practitioner Kurt Knoop informed Kego and Subpromex that they were in material breach of the agreement.
They demanded specific information and documentation to prove compliance. The letter and a subsequent one were ignored.
The companies later claimed that Woestalleen wasn’t the mining rights holder, and that Balmoral was.
However, the court found no factual basis to conclude that Woestalleen ceded its mining right to Balmoral in July or on 1 August 2023.
Langa ruled: “In this case, there’s no doubt that the unlawful conduct of the respondents (Kego and Subpromex) is in breach of Woestalleen’s mining rights and various statutory provisions.”
Meanwhile, Kego is facing a R600 million lawsuit from Liberty Coal for the alleged same crime.
Liberty alleged that the company unlawfully extracted, processed, and sold about 900 000 tons of coal from or about 1 April 2003 to March 2024.
“These funds could have been utilised by Liberty Coal to rehabilitate the mine, pay off Optimum Coal Mine’s creditors in terms of the Business Rescue Plan, benefit employee or community trusts, or pay Liberty Coal’s obligation to NPA in terms of the settlement of the forfeiture proceedings,” said Liberty.
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