THE Supreme Court of Appeal has ruled that a multi-billion rand debt dispute between Kalagadi Manganese and its lenders must proceed to arbitration, dealing a blow to the miner’s attempts to avoid the process.
Kalagadi Manganese, led by Daphne Mashile-Nkosi, owes the Industrial Development Corporation (IDC) at least R7bn, along with money owed to the African Development Bank (AfDB) and Absa. The total debt, including accrued interest, has ballooned to approximately R8.5bn, according to a report by BusinessLive this week.
In a unanimous ruling, the SCA declared Kalagadi’s attempts to prevent the IDC from pursuing arbitration as “unsustainable.” The court dismissed the miner’s argument that the IDC is legally precluded from entering arbitration agreements, stating that lending money is key to the IDC’s mission of promoting economic growth.
The IDC, which holds a 20% stake in Kalagadi alongside being a major creditor, is owed R3bn. The AfDB is owed a similar amount, while Absa is owed nearly R1bn.
Kalagadi operates in the Northern Cape’s Kalahari basin, which contains 80% of the world’s known land-based manganese reserves. The company sits on mining rights covering over 960 million tons of manganese ore across three farms.
A parallel business rescue application filed by the IDC four years ago remains tied up in legal proceedings. Kalagadi opposes this, arguing its assets exceed liabilities and seeking debt restructuring instead.
The company said it is studying the judgment and considering all legal options, including a possible further appeal.
