Tendele Litigation Update
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET
("Petmin" or the "Company")
Update on status of litigation between Petmin's subsidiary, Tendele Coal Mining
Proprietary Limited and one of its customers
As previously disclosed in more detail in paragraph 57 of the combined offer circular to
Petmin shareholders posted on 3 April 2017, Petmin's subsidiary, Tendele Coal Mining
Proprietary Limited ("Tendele"), is currently involved in legal proceedings with one of
its former customers ("Customer") pertaining to disputes arising from a supply of
discard agreement ("Contract").
On 14 September 2015 Tendele instituted proceedings in the High Court of South
Africa, Gauteng Division, Pretoria ("High Court Action"), in terms of which it sought,
amongst other things, declaratory relief to the effect that the Contract is void or
voidable, premised on the grounds of fraud, bribery and corruption.
Petmin announced on 3 December 2015 on SENS that it had withdrawn from the
arbitration proceedings relating to the disputes arising from the Contract as a result of
information that had come to Tendele's and the Company's attention during the course
of the arbitration proceedings. Notwithstanding Tendele's withdrawal from the
arbitration proceedings and the institution of the High Court Action, the arbitration
proceedings continued to finality at the insistence of the Customer on an uncontested
basis and the arbitrator delivered an adverse award against Tendele. The Customer was
notified that Tendele would oppose any attempt to have the arbitration award made an
order of Court.
On 4 February 2016 Tendele was notified that the Customer had applied to the High
Court of South Africa, Gauteng Local Division, Johannesburg to make the arbitration
award an order of the Court ("Enforcement Application"). Tendele opposed the
Enforcement Application and brought a counter application for an order declaring that
the Contract is void or voidable and to consolidate all the litigation in the High Court of
South Africa, Gauteng Division, Pretoria.
On 17 May 2017 Tendele received a notice from the Customer in which the Customer
withdrew its Enforcement Application and tendered Tendele's costs on a party to party
Tendele's remaining litigation, including the High Court Action continues.
+27 11 706 1644
Jonathon Rees (Communications and investor relations)
+27 76 185 1827
Sponsor and Corporate Adviser
+27 834 408 365
24 May 2017
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