https://www.miningweekly.com
Coal|Energy|Mining|Resources
Coal|Energy|Mining|Resources
coal|energy|mining|resources

Shuka settles legacy dispute with Upendo Group over Tanzania licence

An image showing stockpiles at the Rukwa coal mine

Stockpiles at the Rukwa mine

15th February 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

Aim-listed Shuka Minerals, previously known as Edenville Energy, has signed a definitive settlement agreement with Upendo Group, which holds a historic residual 10% interest in the Rukwa coal mining licence, in Tanzania.

The dispute with Upendo, regarding the interpretation of the “residual” interest entitlements, has been ongoing for many years.

Upendo had obtained a judgment for $110 000, with interest and costs and $108 000 was previously lodged by Shuka with the court in Tanzania, as announced in June last year.

Upendo is also seeking further amounts, including a potential claim for 10% of all gross sales revenue from Rukwa, both historically and going forward.

Shuka says the dispute has been vigorously defended and, where necessary or appropriate, appealed by the company in the Tanzanian courts.

“It has been taking time, management resources and causing reputational and relationship damage to the company in-country. As a result, the board believes a settlement drawing a line under the dispute is the most appropriate route forward,” Shuka emphasises in a statement.

The settlement involves the immediate payment to Upendo Group of $110 000, the immediate settlement of all proceedings and a waiver of all or any related claims by all parties howsoever arising.

Shuka will use the funds already lodged in court to meet the majority of the settlement costs.

In addition, Upendo will have a right to nominate a director to be appointed to the local Rukwa operating subsidiary, which currently has five directors nominated by Shuka, and Upendo will earn a royalty of $1.95/t of coal sold from Rukwa.

Upendo has agreed to communicate the settlement to all the relevant authorities in Tanzania, Shuka informs.

The settlement agreement provides that the royalty described above and the right to nominate a board member to the local company are the only rights attaching to the Upendo residual interest in the licence, it adds.

“We are very pleased to have achieved the amicable settlement with Upendo, as it enables us to review and determine the strategic direction of our coal mining interests at Rukwa, without the prospect of an overhanging legacy dispute. This clears the way for us to be more decisive and cohesive in our future decisions,” says Shuka CEO Noel Lyons

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (01/11/2024)
1st November 2024 By: Martin Creamer
Magazine round up | 01 November 2024
Magazine round up | 01 November 2024
1st November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.074 0.101s - 143pq - 2rq
Subscribe Now