Petmin subsidiary to continue legal action against customer

JOHANNESBURG (miningweekly.com) – Tendele Coal Mining, a subsidiary of anthracite producer Petmin, will not record a liability in relation to an award made by an arbitrator against Tendele, as the company and its advisers believe the prospect of success in a High Court case is good

Petmin had announced in May that Tendele had withdrawn from arbitration with a customer and that the subsidiary would seek relief from the High Court to have the contract declared void, as Petmin and Tendele had discovered incidents of fraud, bribery and corruption in connection with the conclusion of the contract for the sale of discard product to the customer.

Tendele instituted action in the High Court in September.

However, despite the subsidiary’s withdrawal from the arbitration, the process continued uncontested, despite Tendele having requested the arbitration be postponed pending the outcome of the High Court action.

The arbitrator on December 2 delivered an award against Tendele, which the company believed “disregarded” material evidence presented by Tendele up to and until the point of its withdrawal from the arbitration.

Tendele maintained that the award against it was invalid and said the customer had been notified that Tendele would vigorously oppose any approach to the High Court to enforce the award.