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Arqomanzi (Pty) Ltd, a mining investment company, and its Empowerment partner the SSC Group, a black owned diversified minerals and mining company warmly welcomes the recent ruling by the Supreme Court of Appeal (SCA) in relation to Vantage Goldfields (Pty) Ltd. The SCA decision, which dismisses Vantage Goldfields' appeal with costs, marks a significant step forward in the case regarding the business rescue of the Lily and Barbrook mines in Mpumalanga.

In a judgment signed by Justice Visvanathan Ponnan and Justice Keoagile Matojane on 27 June 2023, the SCA upheld the order of Judge President Legodi, dated 26 October 2021, dismissing Vantage's appeal against it. This decision comes after two prior high court applications, with the most recent one being resolved by the Court on appeal.

The central issue in question was whether the high court's confirmation of a rule nisi, restraining the business rescue practitioners of three companies, including Vantage Goldfields (Pty) Ltd, from implementing amended business rescue plans, was correct. Despite the passage of seven years since the Vantage companies entered business rescue, it is acknowledged that these companies are still viable for rescue.

By dismissing Vantage's appeal, the SCA unanimously confirmed the following:

·       Arqomanzi had lawfully acquired loan claims against Vantage Goldfields (Pty) Ltd and Barbrook Mines (Pty) Ltd from The Standard Bank of South Africa.

·       Arqomanzi is an independent creditor of both Vantage Goldfields (Pty) Ltd and Barbrook Mines (Pty) Ltd.

·       Only R14 million of Arqomanzi's loan claim against Vantage Goldfields (Pty) Ltd had been subordinated.

·       Only R17 million of Arqomanzi's loan claim against Barbrook Mines (Pty) Ltd had been subordinated.

·       The acquisition of Vantage Goldfields Limited (Australia) by Macquarie in 2020 required consent from the Minister of Minerals and Energy under section 11 of the Minerals and Petroleum Resources Development Act. Consequently, the mining rights held by Makonjwaan Imperial Mining Company (Pty) Ltd and Barbrook Mines (Pty) Ltd remain inoperable until the Minister grants section 11 consent.

·       Vantage Goldfields (Pty) Ltd and the business rescue practitioners are permanently prohibited from stating that the Ministerial consent was not required.

Furthermore, the SCA affirmed that the original business rescue plans, adopted after the Lily Mine collapse, were interdependent, had failed, and cannot be implemented any longer. The SCA ordered Vantage Goldfields (Pty) Ltd to bear the costs of both Arqomanzi (Pty) Ltd and the Minister, including the costs of two legal counsels employed. As a result of the appeal's dismissal, the mining rights cannot be operated by Vantage or any other entity until the Minister grants consent. Vantage is fully aware that its management's alarming safety record will adversely affect its chances of obtaining such consent.

THE WAY FORWARD FOR THE BUSINESS RESCUE PRACTITIONERS

In their statutory reports to Affected Persons for January, February, and March 2023, the business rescue practitioners (BRPs) stated their commitment to abide by the Roelofse judgment but awaited the outcome of the final appeal. With Wednesday's judgment, it is now clear that the BRPs must present new business rescue plans to creditors for consideration and adoption.

The BRPs have already prepared drafts of these new business rescue plans, and Arqomanzi will be meeting with them next week to make progress towards publishing these plans and convening meetings of creditors for their consideration and voting.

Arqomanzi remains actively engaged with the BRPs, and creditors will be duly informed of further developments. Finally, Arqomanzi urges all creditors to carefully consider that Vantage Goldfields (Pty) Ltd has lost three cases in the High Court and has had two appeals dismissed by the Supreme Court of Appeal. 

Fred Arendse – CEO of the SSC Group says . “Over a span of more than seven years, Vantage has demonstrated no efforts to support its former employees and the community, and we remain committed and have been consistent with our plans in reopening the Mines and provide closure to the affected families of the three employees”.

Issued by Ngokwethu Communication on behalf of the SSC Group (Pty) Ltd