A coal mining company and its directors have been accused of stealing more than R600-million worth of coal in a criminal case linked to alleged illegal mining in Mpumalanga in Hendrina.
In an affidavit, Liberty Coal director Ulrich Bester says he is laying charges of theft against junior coal miner Kego Mining, and its directors, Owen William Nelson and Kevin Patrick Nelson.
“I depose to this affidavit in support of criminal charges of theft to be laid against Mr Owen William Nelson… and Mr Kevin Patrick Nelson… as well as against the company… Kego Mining,” Bester states.
The alleged illegal mining is said to have taken place on specific portions of the Klipbank mine area. The troubled Optimum Coal Mine, previously owned by the Guptas and subsequently taken over by Liberty Coal, is the holder of the mining right over the area in question.
The allegations are stark: that the Kego Mining mined coal for nearly a year without legal authority, extracting massive volumes from a site where it had no rights to operate.
According to the affidavit, the accused “conduct[ed] mining operations at the mine… without the necessary mining right” and did so “without the knowledge and consent” of the lawful rights holder.
Bester quantifies the scale of the alleged losses in blunt terms. “The accused have stolen 915 105 tonnes of coal from the complainant,” he says, placing the value at “approximately R600 001 658”.
The alleged mining is said to have started in April 2023 and continued until March 2024 – despite repeated attempts to stop it.
“Upon becoming aware of Kego’s illegal mining, Optimum immediately sent urgent correspondence… demanding that they stop,” the affidavit reads.
Legal pressure escalated quickly. A letter of demand followed within days, and further correspondence was exchanged over several months.
Yet, according to Bester, the response was defiant.
“A number of further legal letters were sent… with Kego admitting that they were mining but refusing to stop,” he states.
The company, through its lawyers, pushed back at the time, arguing that its operations were lawful because another entity held the mining right.
But that claim is disputed in the affidavit, which says Optimum remained the rightful holder and had not granted permission.
The dispute unfolded while Optimum was under business rescue and subject to a High Court preservation order – conditions that, according to the
affidavit, prohibited any interference with the mine and its assets. “Despite this, the accused conducted and continued to carry on with their illegal conduct,” Bester says.
Company records confirm that both Nelsons are listed as active directors of Kego Mining, a firm registered in 2009 and still operating.
Beyond the theft allegations, the affidavit points to potential breaches of the Mineral and Petroleum Resources Development Act, which bars mining without a valid right, as well as the Prevention of Organised Crime Act.
If pursued, the case could become a test of how aggressively authorities are willing to act against alleged illegal mining operations in the country’s coal belt.
The accused had not responded to the allegations at the time of publication. Mpumalanga police spokesperson Col Mavela Masondo said: “Police can confirm that a case of fraud has been opened at Hendrina Police Station, investigation is underway. No arrest has been made yet.”
However, Kego Mining has reportedly rejected the allegations by Liberty Coal that it unlawfully extracted coal worth more than R600 million, insisting its operations were legal and conducted with proper authority.
- A coal mining company and its directors have been accused of stealing more than R600-million worth of coal in a criminal case linked to alleged illegal mining in Mpumalanga in Hendrina.
- In an affidavit, Liberty Coal director Ulrich Bester says he is laying charges of theft against junior coal miner Kego Mining, and its directors, Owen William Nelson and Kevin Patrick Nelson.
- “I depose to this affidavit in support of criminal charges of theft to be laid against Mr Owen William Nelson… and Mr Kevin Patrick Nelson… as well as against the company… Kego Mining,” Bester states.
- The alleged illegal mining is said to have taken place on specific portions of the Klipbank mine area.
- The troubled Optimum Coal Mine, previously owned by the Guptas and subsequently taken over by Liberty Coal, is the holder of the mining right over the area in question.
