You want proof of illegal mining – here it is, says Liberty Coal

Liberty Coal, which assumed control of Optimum Coal Mine after it was taken out of business rescue in April, has hit back at Kego Mining’s claims that it was innocent of illegal mining.

The group has filed two claims in the Mpumalanga High Court accusing Kego of illegally extracting more than 900 000 tonnes of coal from its site between April 2023 and March 2024. It is asking the court to award it more than R600 million in damages.

The coal was allegedly mined unlawfully while Optimum Coal Mine was subject to a preservation order granted to the National Director of Public Prosecutions in March 2022 in terms of the Prevention of Organised Crime Act.

Optimum Coal used to be owned by the Guptas before it was placed in business rescue.

Last week Kego claimed it had done nothing illegal and had at all times been mining under contract with the lawful owners of the mining rights. It further claimed that Woestalleen Holdings, currently in business rescue, was the initial holder of the mining right and that the right later vested in Balmoral under Section 11 of the Mineral and Petroleum Resources Development Act (MPRDA).

In a separate action, Woestalleen Holdings launched an urgent interdict in September to prevent Kego from conducting any mining activities on its mining area.

ALSO READ: NPA goes after Gupta’s Optimum Coal Mine

Proof

In November, Kego claimed Liberty Coal is unable to produce proof that Liberty Coal is the holder of the mining right over the mining area.

Liberty Coal last week tendered what it says is the proof in the form of a court ruling by Judge Mpopelele Langa issued in the Mpumalanga High Court on 21 October 2024: “….I find that factually and legally, the alleged cession has not been established.

“There is no factual basis to conclude that Woestalleen ceded its mining right to Balmoral in July or on 1 August 2023.”

The judge further ruled that Balmoral has no right to mine the site and cannot therefore pass a right it does not have to Kego.

The ruling goes on to say that the unlawful mining by Kego reduces the coal reserves available to Woestalleen, which affects its business rescue.

ALSO READ: State Capture: R2.1b for Optimum Coal was sourced from criminal funds – Here’s how

Kego responds

Kego last week reiterated that it had done nothing illegal.

“Liberty Coal appears to have embarked on a calculated attempt to tarnish Kego Mining’s reputation as a responsible and legally compliant mining operation.

“Kego Mining strongly disputes the baseless and slanderous statements made by Liberty Coal.

“As a proud junior mine operator, Kego Mining lawfully conducted mining operations in terms of contract mining agreements with Balmoral, the lawful holders of the mining rights under Section 11 of the Mineral and Petroleum Resources Development Act (MPRDA).”

Adds Owen Nelson, director of Kego Mining: “Kego Mining remains steadfast in our commitment to transparency and the rule of law. We will not engage in a public mudslinging or sensationalism.”

ALSO READ: Optimum Coal Mine business rescue practitioners’ discretion questioned

‘Pattern of illegal mining’

Liberty Coal goes on to say in a statement that there appears to be a substantial and consistent pattern of Kego Mining’s illegal mining activities.

“This pattern appears to be Kego Mining’s modus operandi, and Liberty Coal appeals to the public to report any known or suspected further instances in which Kego Mining has mined illegally.”

It adds that Kego’s auditors may have unknowingly signed off on its financial statements without realising the revenues were allegedly from unlawful mining.

“Whilst the coal belonging to Liberty Coal and/or Woestalleen has been allegedly stolen, the coal itself and/or the proceeds of such crimes are unaccounted for,” says Liberty Coal’s statement.

“If Kego Mining sold this stolen coal to state owned or private purchasers of coal, they have, albeit potentially unknowingly, purchased stolen goods. Kego Mining’s bankers have, potentially unknowingly, received monies which are ultimately the proceeds of crime.”

This article was republished from Moneyweb. Read the original here.