Natural gas and helium producer Renergen has raised concern about a “looming threat” to mineral rights in SA.
Renergen’s unease stems from a dispute with Sola Group over a solar power plant that is being built on land covered by the petroleum production right of its subsidiary Tetra4.
Renergen said construction of the Springbok Solar Power Plant, which is sponsored by Sola, had commenced without obtaining consent from Tetra4, despite the parties being aware of the production right.
“This move has significant implications for the mining industry, as it could set a precedent for the disregard of mineral and petroleum rights in favour of new developments,” Renergen said in a statement on Tuesday.
Section 53 of the Mineral and Petroleum Resources Development Act stipulates that any developer of a nonagricultural project must apply to the mineral resources & energy minister or a delegated local official for permission to proceed with the development.
“The situation highlights a crucial issue: if the departments of mineral resources & energy condone construction without obtaining consent from existing mineral and petroleum right holders, it could lead to a scenario where all mineral and petroleum rights in SA are subordinated to developments on the mining right area or production area,” Renergen CEO Stefano Marani said in a statement published on the Stock Exchange News Service on Tuesday.
The company has filed an appeal with the mineral resources department to set aside a decision granting Springbok the section 53 consent.
The Springbok Solar Power Plant, in Virginia, the Free State, is in advanced stages of construction and, according to Sola, will connect to the grid in the third quarter of 2025.
In late October, Sola said the area designated for the solar facility was not highlighted for gas or mineral production activities in any of Renergen’s existing publicly available prospecting or production plans or permit applications.
The company said that despite Renergen being consulted many times from April 2022, including in-person meetings, it did not express objections until several months into construction.
Sola also claims Renergen’s claim to helium rights are unlawful, and it has commenced an appeal of the amendment to the production right.
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