Renergen applies for construction to halt at SOLA Group’s Springbok Solar Project after minister’s ruling

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  • Renergen is pleased to announce that the minister of the Department of Mineral Resources has dismissed the appeal by SOLA Group’s Springbok Solar Project against its helium rights in the Virginia Gas Project in South Africa.
  • The news comes as ASP Isotopes seeks to aquire Renergen. Read moreย 

The Minister of Mineral and Petroleum Resources has formally dismissed the appeal lodged by Springbok Solar Power Plant (SSPP) against the amendment of Tetra4โ€™s Production Right thus confirming the inclusion of helium as a by-product of petroleum/natural gas in the Virginia Gas Project.ย This decisive outcome follows a comprehensive review of legal and scientific arguments and brings an end to the long-standing debate over Renergenโ€™s right to extract and commercialise helium from its world-class resource in the Free State.

Key Highlights for Renergen Shareholders:

  • Ministerial Endorsement: The Ministerโ€™s decision affirms that helium, when extracted with natural gas, rightfully falls within the scope of Tetra4โ€™s existing Production Right. The Minister found that this interpretation โ€œnot only aligns with a purposive reading of the MPRDA but also upholds the principles of resource efficiency and regulatory consistency within the framework governing petroleum productionโ€.
  • Legal Certainty: The ruling brings finality to the question of whether helium is regulated as a mineral or as a by-product of petroleum, confirming that Renergenโ€™s rights to extract and produce helium are secure and fully compliant with South African law.
  • Protection of Shareholder Value: By dismissing what was deemed a vexatious appeal, the Minister has protected Renergenโ€™s ability to unlock the full commercial value of its helium reserves, safeguarding the Companyโ€™s long-term growth prospects and investment case.

Renergen CEO Stefano Marani commented:

โ€œThis decision closes the chapter on the question of our helium rights once and for all. The appeal was a tactical attempt to undermine our position during negotiations, but with this matter now resolved, we are confident that ongoing negotiations will yield an outcome satisfactory to both parties. Our focus now remains on ramping up production and delivering on our commitments as South Africaโ€™s premier helium and natural gas producer.โ€

This Ministerial decision, combined with recent decision by the Director-General of the DMPR which effectively set aside the Section 53 approval relied upon by the Springbok Solar Project renders the development unlawful.

Following the Director Generalโ€™s ruling, Renergen attempted to obtain urgent temporary relief against further construction related activities, as the Springbok Solar Project has continued unabated and unlawfully. The hurdle for urgency was not met in Bloemfontein High Court on the 23rd of May 2025, but the Court instructed the Company to place this matter on the ordinary roll ensuring the Court has sufficient time to review the merits of the case. The matter most likely be heard in the early part of June 2025.

Author: Bryan Groenendaal

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