Mining contractor Meropa Resources (Pty) Ltd has issued a final legal notice to Minergy Coal, threatening to approach the courts for liquidation proceedings over an outstanding debt of more than P139 million.
This arises from a multi-billion pula mining services contract. In a letter dated February 2026, Meropa, through its attorney Koketso Motswagol,e said Minergy is in breach of a contract for open-cast mining, materials handling, and road access and maintenance services.
The contract between the two institutions was initially signed on December 14, 2023 and was later amended on August 16, 202,4 valued at P2 billion. Meropa argues that Minergy has failed to honour its end of the deal as it failed to process its payment despite repeated contractual notices. According to the letter, Minergy was first placed on notice of its default on August 28, 2025. Meropa says the breach has not been remedied for over six months, during which penalties and interest (P&Gs) have continued to accumulate.
“As at present, an amount of P139 905 253.85 is due and payable to the client,” the attorneys stated. Meropa says the lack of response from Minergy has left it with no alternative but to seek liquidation, arguing that the coal producer is no longer a going concern.
“The failure to settle a debt owed to a critical service provider is evidence of insolvency,” the letter states, adding that Minergy is now a candidate for business rescue and insolvency proceedings under the Companies Act. Meropa has given Minergy until the close of business on February 26, 2024, to enter into a settlement agreement or make arrangements to settle the debt.
"If there is no Settlement Agreement relating to the debt owed by your company, by close of business on February 26, 2026, the client shall initiate liquidation proceedings. It is the client’s hope that this matter shall be resolved without undue litigation, which the client shall not shy to pursue to enforce its rights”
