Liberty Coal has openly refuted Kego Mining’s claims regarding its mining activities and labelled them factually and legally incorrect, as the R600-million damages claim against the latter continues.
The crux of the conflict between Liberty Coal and Kego Mining revolves around allegations of unlawful mining activities by Kego Mining on portions of the Optimum Coal Mine (OCM) and Woestalleen Holdings mining rights.
Despite Kego Mining’s assertions that “Liberty Coal is unable to produce proof that Liberty Coal is the holder of the mining right over the mining area”, Liberty Coal has countered that these rights were legally registered to them as of November 1, 2024.
Liberty Coal said a series of court findings and ongoing legal proceedings have contradicted Kego Mining’s narrative that it operates within the legal framework.
The company had filed substantial legal claims of R600-million against Kego Mining, asserting that their actions have resulted in significant financial damages.
The legal battle intensified on March 25, 2024, when Liberty Coal issued the first summons against Kego Mining.
This document outlined that Kego Mining had mined, processed, and removed over 232 864 tonnes of coal from the Klipbank Portions, infringing on OCM’s mining rights.
Liberty Coal claims this illegal operation resulted in damages amounting to R168 146 557.
According to the summons, despite repeated demands, Kego Mining had failed to compensate OCM, leading to unjust enrichment at OCM’s expense.
Accusations of illegal activities
Liberty Coal filed a second summons on April 19, 2024, accusing Kego Mining of further illegal activities from June 2023 to January 2024 and again in February and March 2024.
In this instance, Kego Mining allegedly extracted 617 600 tonnes of coal from OCM’s mining rights and 64 641 tonnes from boundary pillars, causing additional damages of R431 855 081.
Kego Mining has defended its actions, saying that Woestalleen Holdings, the rightful owner of the mining rights, conducted its mining operations with them before transferring them to Balmoral.
Kego claims that its operations fell beyond the scope of a preservation order that the National Prosecuting Authority (NPA) issued in March 2023.
The Department of Mineral Resources and Energy (DMRE) granted the mining right to Balmoral, reinforcing their position.
Kego said that its operations were transparent and conducted under the watchful eyes of the DMRE, the former court-appointed curator, and Liberty Coal.
Liberty Coal has taken control of the former Gupta-owned Optimum Coal Mine and begun exports but contests Kego’s mining rights.
Kego argues that Liberty Coal lacks proof of its claim over the mining area in the legal proceedings initiated in 2024. Kego maintained that its operations were lawful, environmentally responsible, and beneficial to local communities.
The company said their commitment to legal compliance and dispute resolution, having ceased operations on October 24, 2024, pending a legal resolution.
Kego dismisses claims by Liberty Coal and Woestalleen Holdings as unfounded.
Separately, Woestalleen Holdings filed an urgent interdict application on September 27, 2024, against Kego Mining, seeking to restrain them from conducting mining operations on their land.
The business rescue practitioner at Woestalleen highlighted in a founding affidavit that Kego Mining was conducting operations without the necessary environmental approvals and licenses.
Court rules against Kego Mining
The high court, under Judge Bruce Langa, addressed this dispute.
The court found no legal basis for Kego Mining’s claim that they had an arrangement with Balmoral, a purported cessionary of the mining rights from Woestalleen.
Langa noted: “In the absence of a valid cession, it cannot be concluded that Woestalleen ceded its mining right to Balmoral.”
The ruling emphasised that Kego Mining’s operations were unlawful, significantly affecting Woestalleen’s business rescue prospects.
Liberty Coal said in a statement that “Kego Mining’s assertions are not just incorrect; they are deliberately misleading. The court’s findings are clear in their determination of Kego’s unlawful conduct.”
The company urged the mining community and public to remain vigilant and report any further instances of Kego Mining’s alleged illegal activities.
Liberty Coal has also called upon Kego Mining’s associates, including customers and auditors, to audit their dealings for any involvement in the processing or sale of potentially stolen coal.
- This is a developing story
