<\/p>\n
African Bank was granted an order last week by the Mpumalanga High Court allowing the sheriff to enter Kego Mining\u2019s premises and seize assets to recover a R51.1 million debt.<\/p>\n
The bank had extended a R50 million overdraft facility to the mining company, secured by way of two general notarial bonds over its mining assets.<\/p>\n
Read:<\/p>\n
A tale of two banks and the perils of succession \u2026
\nAfrican Bank boss Kennedy Bungane resigns with immediate effect<\/p>\n
The court order allows African Bank to \u201cperfect\u201d its security over the assets by compiling an inventory, marking and identifying the assets, and appointing someone to act as its agent in keeping and exercising possession of the assets.<\/p>\n
The order places the assets under the control of African Bank until such time as it is made final.<\/p>\n
Overdraft facility<\/p>\n
Court papers show Kego was granted an overdraft facility of R32 million in March 2021, secured by two general notarial bonds covering movable assets valued at R40 million. The facility was originally granted by Grindrod Bank, later acquired by African Bank.<\/p>\n
The overdraft was intended to cover working capital, service and legal fees, and was repayable on demand.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n
At the time, the interest rate was 1% above prime, with a clause allowing the bank to increase this to 5% above prime in the event of default.<\/p>\n
In June 2022, the overdraft limit was increased to R50 million, secured by an additional covering mortgage bond of R30 million and a guarantee of R25 million by Olympic Park Trading.<\/p>\n
Read: No more \u2018prime\u2019 \u2013 Reserve Bank wants key rate to be used to price loans<\/p>\n
The facility expired in April 2025, by which time Kego had exceeded the borrowing limit by R869 200.<\/p>\n
African Bank\u2019s claims<\/p>\n
In an urgent ex parte hearing (where only one party is present) before the Mpumalanga High Court, African Bank alleged that Kego breached the loan agreement and, by March 2026, owed R51.1 million.<\/p>\n
The bank asked the court for the right to perfect its general notarial bond, saying there was \u201ca real risk that the assets over which the security exists may be attached and sold by other creditors, dissipated, or otherwise placed beyond the creditor\u2019s reach before perfection can occur\u201d.<\/p>\n
African Bank also claims that Kego was likely in a precarious financial position with regard to other creditors, who might institute legal proceedings of their own to recover monies owed.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
Previous court action<\/p>\n
This is not the first time Kego Mining has been in the news.<\/p>\n
Moneyweb previously reported on another court action brought by Liberty Coal against the company for recovery of R600 million in damages, after it was accused of illegally extracting more than 900 000 tonnes of coal from Liberty\u2019s site between April 2023 and March 2024.<\/p>\n
Read:<\/p>\n
You want proof of illegal mining \u2013 here it is, says Liberty Coal
\n\u2018We did nothing illegal\u2019 \u2013 Kego Mining\u2019s response to R600m lawsuit from Liberty Coal<\/p>\n
Kego has denied these charges, saying it was conducting mining operations with the lawful owner of the mining rights at the time.<\/p>\n
The site in question was previously under the control of the old Gupta-owned Optimum Coal Mine, later acquired by Liberty Coal and removed from business rescue.<\/p>\n
Moneyweb reached out to Kego Mining for comment but did not receive a reply prior to publication.<\/p>\n
#Court #orders #sheriff #seize #Kego #Minings #assets #R51m #debt<\/p>\n","protected":false},"excerpt":{"rendered":"
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