The share price of Renergen, JSE-listed owner of South Africa's only onshore gas production facility, increased sharply by over 15% on Thursday after it announced a significant success in an ongoing legal dispute.

Renergen has successfully appealed a MDPRA (Mineral and Petroleum Resources Development Act) approval that had been granted to another company, Springbok Solar Power Plant (RF).

A dispute had arisen between Renergen subsidiary Tetra4 and RF regarding their solar development encroaching upon Tetra4's production right in Virginia, in the Free State.

Tetra4 had instituted urgent motion proceedings in the High Court of South Africa, Free State Division, seeking an interim interdict restraining the solar developer from proceeding with construction activities.

The matter was heard on February 20, 2025, and judgment has been reserved, with the outcome expected to be announced in due course.

In addition to the High Court proceedings, Tetra4, which is the only company that owns an onshore gas production right in South Africa, simultaneously filed an appeal with the Department of Mineral Resources against the flawed approval the solar developer obtained, as it only covered gold, silver, and uranium and not petroleum, which is the basis of the dispute.

“The defective Section 53 MPRDA approval for the solar developer's facility has been formally revoked,” Renergen CEO Stefano Marani said Thursday.

“The Director-General of the Department of Mineral and Petroleum Resources ruled in favour of Tetra4 on April 9, 2025, thereby upholding Tetra4's appeal against the regional manager of the Department of Mineral and Petroleum Resources' decision concerning land use rights,” he said in a statement Thursday.

Marani said the Director-General had found procedural defects in the approval process by the regional manager. “Specifically, the solar developer failed to consult Tetra4 as required by the MPRDA Regulations.”

Renergen has seen its share price fall significantly over the past few years due to delays in getting its helium and liquid natural gas (LNG) up to nameplate production capacity, and the R6.92 that it traded at Thursday afternoon remains well below the R13.40 it traded one year ago, and massively lower than the R41.43 it traded at three years ago.

But things are looking up for the group, as it said in its fourth-quarter production report this month that their first helium export from the facility and sale had now occurred, while LNG production had increased by 22% from the previous reporting period.

In January, Renergen also gained a significant new shareholder, Mazi Asset Management, which by January 27 had acquired 13.53% of Renergen’s shares.

Mazi Asset Management is a 100% staff-owned boutique investment management company founded in 2006 by Malungelo Zilimbola. Renergen has also expressed its intention for a Nasdaq listing.

BUSINESS REPORT