MBABANE – The current operator of Maloma Colliery Limited, is faced with a demand of over E155 million following an alleged agreement reportedly concluded 26 years ago between the estate of the late H.H. Henwood and the then owners of the mine.
The demand for compensation in the sum of E155 850 000, according to papers filed in the High Court by the estate and Randolf Henwood, is based on the alleged oral agreement purportedly concluded in June 1999 at Maloma on Farm 481 and Farm 422, two decades before the ownership of the mine changed hands in 2020.
The plaintiffs (Randolf and the estate) allege that the said agreement permitted Maloma Colliery to mine the coal based on ‘invalid surface rights or proper mining authorisation’.
According to the combined summons filed by Randolf and the estate in the High Court, the amount being demanded is in respect of damages and compensation.
Defendants in this matter are Maloma Colliery, the commissioner of mines, cited as a government department responsible for regulating mines and resolving disputes involving mines and landowners, the master of the High Court, cited as the office responsible for the administration of the estate, and the attorney general.
The summons alleges that the terms of the oral agreement, as pleaded, were that Maloma Colliery would pay any compensation due in terms of the law, specifically the Mining Act 1958, including the market value of the expropriated land due to coal mining.
The plaintiffs also claim that the mine is in breach of the agreement and they seek a total of E155 850 000, broken down as: Financial loss for use of both farms (E57 600 000), surface rental/surface use (E33 million), legal fees incurred (E250 000), full rehabilitation/environmental rehabilitation (E60 million) and punitive damages/and any other compensations incidental thereto (E5 million). They are also seeking interest at the rate of nine per cent per annum from the date of issue of the summons until the date of settlement.
The plaintiffs also inform the court that they allegedly repeatedly approached the mine for payment. Furthermore, they allege that on July 21, 2025, they approached Maloma Colliery for the repayment of the amount purportedly owed and the mine is said to have declined and neglected to pay.
“On July 21, 2025, the plaintiff approached the first defendant for the repayment of the sum owed and the plaintiff has refused and neglected to pay the amount claimed herein.
“The first defendant failed to pay the amount on due date and has not paid it since. Consequently, the defendant is in breach of the agreement and the plaintiff is entitled to cancel the agreement and claim back the sum of E155 850 000 without any prior demand. The plaintiff claims an order for the payment of E155 850 000,” reads the summons.
The veracity of these allegations is still to be tested in court. The defendants are still to file their opposing papers.
Meanwhile, the defendants are warned in the summons that they must file and serve a Notice of Intention to defend, within 14 days of service and, thereafter, file a plea, exception or notice to strike out within 21 days. Failure to do so may result in a default judgment, according to the summons.
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The plaintiffs are alleging that the 1999 agreement permitted Maloma Colliery to mine coal based on ‘invalid surface rights or proper mining authorisation’. (File pic)
