R1.5-billion multi-pronged asset seizure order sees authorities tighten illegal coal mining noose

The seizure of the property follows reports of an illegal coal mine said to have been operating at Portion 11 and Portion 12 of the Witkranz 53 IT farm near Carolina in Mpumalanga. It is estimated that about 270,000 tons of coal was illegally mined at Portion 11 of the farm over a period of about two years, from November 2021 to September 2023, by a company named GNJ Mining (Pty) LTD (GNJ Mining).

According to regional spokesperson for the National Prosecuting Authority (NPA) Mpumalanga Monica Nyuswa, the minimum estimated market value price of R980 per ton, coupled with the estimated 270,000 tons that were illegally mined amounted to approximately R264-million worth of coal extracted at the farm over the two years.

The seized assets, Nyuswa added, consist of a farm in the Carolina district, stockpiles/heaps of coal in two separate areas (coal ore material and “washed” coal), heavy-duty mining machinery (yellow machines), equipment and motor vehicles (heavy-duty trucks, etc), as well as washing plant machinery, portable buildings, machines, equipment, and motor vehicles used at Droog Valley farm Barrel Coal Processing and Washing Plant near Carolina.

The NPA further contends that the assets were seized on the grounds that they were reasonably believed to be used as instruments to commit various illegal large-scale coal mining and environmental offences at the farm, and/or that the assets are reasonably believed to be the proceeds of unlawful activities, namely large-scale illegal coal mining and environmental offences.

The seizure, is the result of a joined multi-agency investigation and cooperation between the specialised SAPS illegal mining unit (Detective Service Organised Crime Investigation Unit in Gauteng), the Mpumalanga Organised Crime component at the Mpumalanga Director of Public Prosecutions’ office, the Mpumalanga Asset Forfeiture Unit, the enforcement section of the Department of Mineral Resources and Energy (DMRE) and the enforcement section of the Department of Agriculture, Rural Development, Land and Environmental Affairs (Dardlea).

“The seizure of the property follows an illegal coal mine that was conducted at Portion 11 and Portion 12 of the farm Witkranz 53 IT (the farm) in the Carolina, Mpumalanga area. It is estimated that about 270,000 tons of coal was illegally mined at Portion 11, of the farm during a period of about 2 years from November 2021 to September 2023, by a company named GNJ Mining (Pty) LTD (GNJ Mining).

“GNJ Mining never had lawful authorisation/permit from the DMRE and/or the Dardlea to mine coal at the farm. The illicit coal that was mined at the farm was taken to Droogvalley Barrel Plant (Droogvalley) in the Carolina area, where the coal was processed and “washed” to prepare it for sale to GNJ Mining’s coal-using clients,” Nyuswa explained.

Police targeting syndicates

Excavators, bull dozers and dump trucks are among those seized by police during a prior intelligence-driven take down operation on Tuesday, 19 September 2023. (Photo: Supplied SAPS)

Illegal coal mining rife

1.  SARS tip-offs lead to successful multi-province coal smugglers search-and-seizure operation.


2. Introducing the four crime cartels that have brought Eskom and South Africa to their knees.


3. Mpumalanga, where criminality surrounding the coal value chain is widely seen as rife, remains the main bottleneck for applications for mining permits in South Africa. These would be for open-pit operations that are no more than five hectares and require little in the way of environmental and social compliance.


4. Grain SA CEO: Poorly regulated coal mining is a threat to SA’s food security.