The High Court in Mpumalanga has granted an order allowing African Bank to take control of the movable assets of Kego Mining after the company allegedly failed to repay more than R50-million in debt.
The order, issued on Tuesday in the Middelburg High Court, authorises the bank to “perfect” its security under two general notarial bonds registered over the mining company’s assets.
Kego Mining is a South African junior mining operator primarily focused on coal extraction and non-metallic mineral mining, headquartered in Middelburg, Mpumalanga.
In terms of the ruling, the sheriff is empowered to enter Kego Mining’s premises, take possession of its movable property, compile an inventory, and, if necessary, arrange for the sale of those assets to recover the outstanding debt.
The court also issued a rule requiring Kego Mining to appear on May 8 to show cause why the order should not be made final.
Court papers show that the dispute arises from a loan facility initially granted in March 2021 by Grindrod Bank, which was later incorporated into African Bank as part of a business transfer.
The facility, which was increased to R50-million through subsequent agreements, was
secured by notarial bonds over the company’s movable assets.
African Bank alleges that Kego Mining breached the agreement by failing to repay the outstanding amount by April 1, 2025.
According to the bank, the company’s debt stood at
more than R51.1-million, including interest, as of March this year.
The bank further claims that the debt is not disputed and that all amounts have become immediately due and payable following the default.
The bank approached the court on an urgent basis, arguing that it was entitled to enforce its security and secure control of the company’s assets.
In its application, African Bank stated that the purpose of the order is to preserve the assets and prevent any risk of dissipation while the matter is finalised.
The court granted interim relief, meaning the bank may immediately exercise control over the assets pending the final hearing.
Kego Mining has indicated its intention to oppose the
application.
The company will have an opportunity to file answering papers and challenge the relief before the return date in May.
If the order is confirmed, African Bank may proceed with selling the assets to recover the outstanding debt.
If the order is set aside, control of the assets will revert to the company.
