Mantashe backs Kunolwazi in land row with Seriti

Minister of mineral & petroleum resources Gwede Mantashe has ruled in favour of junior coal miner Kunolwazi Resources in its fight with Mike Teke’s Seriti Power over mining rights in Khuthala, Mpumalanga.

Mantashe last month dismissed an appeal lodged by Seriti in the dispute over portions 4 and 28 of Kilppoortjie farm that arose from a now-contested agreement with Kunolwazi two years ago under which Seriti was to abandon its rights to the two portions as part of a BEE-socioeconomic transaction.

An agreement concluded between the parties in December 2024 lapsed due to the non-fulfilment of a condition precedent and is of no force and effect.

Mantashe said Seriti had “abandoned a small, stranded block within the Khuthala mining area”.

When Seriti and Kunolwazi applied for the minister’s consent in terms of section 102 of the MPRDA, Seriti did not state in its application that it was conditional on consent by Eskom. Therefore, the argument by Seriti to the effect that the decision-maker committed an error is without merit and cannot be considered.

Mantashe said Seriti’s appeal did not demonstrate that the decision was “unreasonable nor procedurally unfair.”

Asked what its next move would be, Seriti said: “Kunolwazi Resources is highly opportunistic in its approach to a failed transaction, and Seriti will take whatever steps are necessary to protect its rights.”

Kunolwazi had to halt operations at the two portions in May when Seriti appealed in the Pretoria high court against the DG’s decision. In court documents, Kunolwazi director Tshepo Seema said the decision would cause “irreparable” harm to Kunolwazi, its subsidiary Mbali Coal and their employees.

Seema had said in his affidavit that Seriti’s action posed an existential threat to Kunolwazi and Mbali, which supported 300 staff and contractors and was suffering catastrophic and immediate financial prejudice.

Seema said the agreement with Seriti would prevent the “sterilisation” of the two portions and ensure “optimal extraction” in line with the spirit of the MPRDA.