A fierce mining dispute has erupted between Liberty Coal and Kego Mining, centring around allegations of illegal coal extraction from the Klipbank portion of the embattled Optimum Coal Mine.
The conflict comes amid ongoing legal proceedings as Liberty Coal accuses Kego Mining of deliberately misrepresenting the facts to downplay its claims of unlawful mining activities.
IOL has reported that the re-opening of Optimum Coal Mine under the control of Liberty Coal in April, with potential to produce 13.5 million tons of the energy commodity, was expected to boost Eskom’s generation capacity.
Liberty Coal contends that from April 1 to June 21, 2023, Kego Mining illegally mined, processed, and removed an astonishing 232 864 tonnes of coal from the portion of the mine under its control.
Documents filed in Mpumalanga High Court indicate that Liberty Coal has launched two summonses against Kego Mining, alleging that this activity was not only intentional but also carried out with a flagrant disregard for the mining rights owned by Optimum Coal Mine (Pty) Ltd, currently under business rescue.
According to Liberty’s case, Kego Mining’s actions led to damages exceeding R600 million. The First Liberty Summons asserts that the unlawful extraction caused OCM damages of at least R168 146 557, while a subsequent appeal magnified those figures further, estimating damages upwards of R431 855 081.
Liberty Coal insists that Kego Mining has failed to respond to these claims and has unjustly profited at the expense of the beleaguered Optimum Coal Mine.
The ongoing legal saga reached a new chapter on October 31, 2024, when Kego Mining launched an urgent request for declaratory relief regarding its operations. However, the company removed the matter from court just as it was set to be heard, raising further questions about its intentions.
In a bold rebuttal, Kego Mining declared Liberty Coal’s damage claims as baseless. The company asserts that its mining operations are sanctioned by Woestalleen Holdings, the lawful owner of the mining rights that subsequently transferred to Balmoral during their business rescue phase.
Furthermore, Kego argues that their efforts are occurring outside an NPA-imposed preservation order from March 2023, which was lifted in 2024 following a settlement agreement.
Liberty Coal, however, remains steadfast in its accusations, pointing out that the curator of Optimum Coal Mine demanded Kego Mining to cease its alleged illegal operations in September 2023 — a demand the latter reportedly ignored.
In a statement, Liberty Coal indicated that about 850 464 tonnes of the illegally mined coal occurred during a time when Optimum Coal Mine was under the jurisdiction of the Mpumalanga High Court’s preservation order.
Kego Mining has rebutted the statements made by Liberty saying no steps were taken by the Department of Mineral Resources and Energy, the former curator acting on behalf of the National prosecuting Authority, or Liberty Coal for Kego Mining to cease the mining activities.
“We remain committed to transparency and compliance with all applicable laws, including those regulating mining rights and environmental management. Kego Mining values its partnerships with stakeholders and continues to prioritise responsible mining practices that contribute positively to the communities and economy in which we operate,” Kego Mining said.
The Star