The new owners of the former Gupta-owned Optimum Coal Mine in Mpumalanga, Liberty Coal, have launched a high-stakes legal battle against Kego Mining, seeking a staggering R600-million in damages.
The Mpumalanga High Court is hearing this explosive case, which centres on Kego Mining’s alleged illegal extraction, processing and sale of 900 000 tonnes of coal from the Optimum Coal Mine’s rights areas, starting in April 2023.
Liberty Coal has filed summons in court, claiming that Kego Mining should “return of all coal mined, processed, and/or removed from the Klipbank, or alternatively, pay an amount of R431 855 081 plus interest.
According to Liberty Coal, Kego Mining’s actions are nothing short of outrageous and unlawful. “This is a blatant violation of legal and ethical norms,” a spokesperson for Liberty Coal stated emphatically. The coal giant is uncompromising in its pursuit of justice and compensation for the massive losses it claims to have suffered at the hands of Kego Mining.
The high court granted a preservation order in March 2022, safeguarding the assets of Optimum Coal Mine. This order, which included the appointment of a curator bonis to oversee and preserve property, was supposed to culminate in a forfeiture order, potentially transferring ownership to the state.
However, a settlement agreement on February 1, discharged this order, paving the way for Liberty Coal to acquire Optimum Coal Mine’s assets and business.
Despite the preservation order’s clear directives, Kego Mining allegedly defied legal constraints. Liberty Coal asserts that while the preservation order was still in force, they extracted 850 464 tonnes illegally.
Liberty Coal said this not only showed contemptuous disregard for legal mandates, but it also directly challenged the authority of the national director of public prosecutions (NDPP), who appointed the curator bonis.
Kego Mining allegedly ignored the curator bonis’s September 2023 demand that it cease its operations. “Kego Mining’s flagrant breach of the preservation order and its continued illegal activities are unprecedented,” Liberty Coal decried.
By sidelining legal authority, Kego Mining had allegedly caused significant harm to Liberty Coal and its stakeholders, resulting in a loss of R600-million that could have been used to rehabilitate the mine, settle debts and benefit employees or community trusts.
Liberty said the legal implications for Kego Mining and its director, Owen Nelson, are severe.
Under Section 75 of the Prevention of Organised Crime Act, non-compliance with preservation orders and hindering the curator bonis can result in fines or imprisonment of up to 15 years.
“The egregious conduct of Kego -Mining cannot go unpunished,” Liberty Coal said.
The company is adamant that justice must be served, not only to recoup financial losses but also to uphold the rule of law.
Liberty Coal also demanded answers from the NDPP and the curator bonis about their inaction in protecting the preserved assets.
“Liberty Coal will in due course seek to engage with the NDPP and the NPA appointed curator bonis to understand why no action was taken to protect the assets under preservation and eagerly awaits the outcome of any action by the NPA to recover the unlawful proceeds resulting from Kego Mining’s illegal and unlawful dealings.”
“Why were no measures taken to safeguard our interests?” Liberty Coal questioned, expressing its frustration.
