Cape Town – South Africa’s Mineral and Petroleum Resources Minister Gwede Mantashe has rejected an appeal by Seriti Power, led by mining entrepreneur Mike Teke, in a dispute over two coal-bearing portions of land at Khutala Colliery in Mpumalanga, backing rival miner Kunolwazi Resources in the contested mining rights.
According to Billionaires.Africa, Mantashe upheld an April 16, 2026, decision by the Department of Mineral and Petroleum Resources’ director-general, Edson Ragimana, allowing Kunolwazi to amend its mining right to include portions 4 and 28 of Kilppoortjie farm.
The dispute stems from an agreement reached by Seriti and Kunolwazi in December 2024 under which Seriti was to relinquish the two portions as part of a black economic empowerment and socioeconomic transaction. Seriti maintains that the agreement lapsed because a condition precedent was not fulfilled, arguing that the land was never legally abandoned or transferred.
Mantashe rejected Seriti’s argument that the transfer required Eskom’s consent, saying the company had not made that condition clear in its application.
“The argument by Seriti to the effect that the decision-maker committed an error is without merit and cannot be considered,” Mantashe said, according to TimesLIVE’s Business Times.
Smaller miner’s operations and employment
Seriti has challenged the outcome, describing Kunolwazi as “highly opportunistic in its approach to a failed transaction” and saying it “will take whatever steps are necessary to protect its rights.” The company maintains that related appeals and court applications remain before the courts.
The dispute has also raised concerns about the smaller miner’s operations and employment. Kunolwazi director Tshepo Seema told the court that the company and its subsidiary, Mbali Coal, which together employ about 300 staff and contractors, were facing “catastrophic and immediate financial prejudice” after operations on the disputed portions were halted in May.
The case unfolds against wider pressures in South Africa’s coal industry. EWN has reported that almost 800 jobs were at risk at Seriti Resources, highlighting the employment challenges facing the major Eskom coal supplier. The report provides broader context for the potential economic consequences of disputes affecting coal operations and workers.
Khutala Colliery produces about 5.5 million tonnes of coal annually, supplying Eskom’s Kendal power station. Seriti acquired the operation through its 2021 purchase of South32’s South African coal business, strengthening its position as one of Eskom’s major coal suppliers.
Mantashe’s decision leaves the parties embroiled in a legal dispute over the mining rights, with Seriti continuing to contest the outcome. Further legal proceedings could determine control of the disputed land and the implications for the companies and their workers.
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Compiled by Betha Madhomu
