LIBERTY Coal said on Friday it had launched a R600m damages claim in the High Court against Kego Mining which it alleges illegally mined Optimum Coal.
Kego Mining rejected the allegation. It said over the weekend it had been operating lawfully in terms of the Minerals and Petroleum Resources Development Act (MPRDA).
Liberty’s claim is that about 900,000 tons were mined by Kego mining between 1 April 2023 and March this year. Most of the tons were mined during the time a preservation order was in place at Optimum, Liberty Coal alleged.
The preservation order, obtained by the National Director of Public Prosecutions on 23 March, 2022 while it pursued a forfeiture order related to the period when the Gupta family ruled the roost. In January the NDPP settled with Liberty which will pay the Criminal Asset Recovery Fund R461m, according to a report on the matter by News24.
Liberty Coal said the NPA ordered Kego Mining to stop mining in September last year “… a demand which Kego Mining blatantly ignored”.
“In a flagrant breach of the Preservation Order and not withstanding illegal mining activities in contravention to the MPRDA, Kego mining ignored the NPA appointed Curator’s demands, thereby interfering with the performance of his functions and powers,” said Liberty Coal.
Liberty said the funds earned by Kego during this time could have been used to “rehabilitate the mine, pay off Optimum Coal Mine’s creditors in terms of the Business Rescue Plan, benefit the employee or community trusts or pay Liberty Coal’s obligations to the NPA in terms of the settlement of the forfeiture proceedings”.
Kego replied that it mined the areas in terms of contract mining agreements with the relevant mining rights holder, Woestalleen Holdings and Balmoral which is the lawful holder of the mining right currently, both in terms of the MPRDA.
Kego also mined outside the area specified in the preservation order, said Wilhelm Botes, spokesperson for the company.
“Throughout the period, Kego mining activities were conducted openly, with the full knowledge of the DMR … and Liberty Coal,” he said. “The recent contrary claims and allegations by Liberty Coal … are baseless.”
Kego Mining stopped mining on October 204 pending resolution of the disputes.
Liberty Coal has previously stated it faced major financial pressure related to keeping Optimum Mine in production while not having permits to export its coal. Legal costs, the cost of preserving its export allocation and the NDPP settlement also weighed heavily.
In March, Liberty Coal and Richards Bay Coal Terminal (RBCT), the privately owned export handling facility, crossed swords when it was claimed Optimum Coal was being unfairly treated. According to reports RBCT was allegedly demanding additional conditions be met by Liberty Coal fearing Optimum Coal was not sufficiently capitalised by shareholders to meet operating expenses.
RBCT and Liberty Coal subsequently settled their differences.
