Ensuring the company’s operations can continue without disruption. From Moneyweb.
Kego Mining says it has reached an agreement with African Bank over an outstanding debt of R51 million, and the company’s operations are continuing as normal.
Read:
Court orders sheriff to seize Kego Mining’s assets over R51m debt
A tale of two banks and the perils of succession …
This follows an ex parte court order granted against the junior miner earlier this month in the Mpumalanga High Court, which authorised the sheriff to seize the company’s assets in recovery of the debt.
Debt background
The company was initially granted a R32 million overdraft facility in March 2021 by Grindrod Bank, later acquired by African Bank. This facility was later increased to R50 million and secured by various bonds and company assets.
The facility expired in April 2025, by which time Kego had exceeded its borrowing limit by R869 000.
This prompted the bank to approach the high court for an order allowing the sheriff to enter the company’s premises, compile an inventory or assets, and appoint an agent to protect the assets.
This was an interim order, giving the company until 8 May 2026 to explain why it should not be made final.
In a statement issued on Friday, Kego said that following constructive engagement with the bank, an agreement had been reached between the parties.
No assets have been removed or sold by the sheriff or anyone else, and “all operations across the business continue as normal”.
“Kego emphasises that the matter is administrative in nature and relates to only one specific site, with no impact on Kego’s broader operations,” the statement added.
Operations remain unaffected
The affected site remains fully operational, with no disruption to production, employees or stakeholders, the statement said.
African Bank confirmed to Moneyweb that Kego’s media statement “is reflective of the current legal process on this matter”.
Kego says it is committed to maintaining strong relationships with its financial partners, clients, employees, and broader stakeholders.
“Our priority is to ensure stability for our employees and the communities in which we operate. There is no impact on our operations, and no cause for concern,” said Kego CEO Owen Nelson, adding that Kego remains focused on delivering on its operational and commercial commitments.
No details were provided regarding the terms of the settlement.
Separate lawsuit
A separate court case has been brought against Kego by Liberty Coal, the former Gupta-owned Optimum Coal (now out of business rescue), which is claiming R600 million in damages.
Read:
You want proof of illegal mining – here it is, says Liberty Coal
‘We did nothing illegal’ – Kego Mining’s response to R600m lawsuit from Liberty Coal
Liberty alleges that Kego extracted more than 900 000 tonnes of coal from its site between April 2023 and March 2024.
Kego has denied the charges, stating that it always operated within the law and with the consent of the lawful owner of the mining rights at the time. The company ceased all mining activities on these sites on 24 October 2024, pending the resolution of the court case.
