South African billionaire Patrice Motsepe’s ARM faces delay in bid to liquidate two mining firms

African Rainbow Minerals (ARM), the mining group led by South African billionaire Patrice Motsepe, has suffered another setback in its attempt to liquidate two distressed mining companies as it seeks to recover an outstanding claim of R55.34 million ($3.32 million), plus interest and costs.

The Johannesburg High Court postponed ARM’s applications against Technology and Mineral Holdings, known as Mintech, and TAM Holdings after their business rescue practitioner and another creditor sought permission to intervene and file further opposition. The court gave them 15 court days to submit their affidavits, leaving the liquidation applications postponed indefinitely.

ARM is the largest independent creditor of both companies. It wants the court to set aside their voluntary business rescue resolutions and convert the proceedings into liquidation. The mining group argues that the companies have no credible prospect of being rescued and that liquidation offers a better route to resolving their financial obligations.

The applications had been scheduled for a hearing in late October. However, business rescue practitioner Gerhardus Theodoris Daniel Holtzhauzen and creditor PGVM Investments approached the court shortly before the hearing, seeking to participate in the proceedings and obtain more time to oppose ARM’s applications.

A key issue in the dispute is a proposed sale of a stockpile of approximately 1.5 million tonnes of manganite, which represents TAM Holdings’ only asset. Holtzhauzen told the court that he had received an irrevocable offer for the stockpile and intended to incorporate the proposed transaction into an amended business rescue plan.

ARM questioned whether the proposed sale and revised rescue arrangements were commercially viable, including whether TAM could meet its contractual obligations and secure the financing and supply arrangements required to deliver additional stockpiles.

The court nevertheless granted the postponement, saying the interests of creditors and other affected parties needed to be considered before deciding the companies’ future. It also ordered Holtzhauzen and PGVM Investments to pay ARM’s costs arising from their intervention and postponement applications. Holtzhauzen was made personally liable for the relevant wasted costs.

The ruling does not decide whether Mintech and TAM should be liquidated. Instead, it gives the parties opposing ARM’s applications another opportunity to present their case before the court considers the substantive requests.

The dispute adds to the legal and operational challenges facing Motsepe’s mining group. ARM has also been involved in a separate court battle with Assore over the management of Assmang, their jointly owned iron ore and manganese business. The disagreement has centred on management authority, executive appointments and access to company records.

The pressure comes as ARM navigates weaker manganese earnings and a changing mining environment. As previously reported in Billionaires.Africa’s coverage of Motsepe’s ARM stake, the value of his shareholding in the listed miner has also come under pressure.

Motsepe, who founded ARM and remains its executive chairman, built his fortune through investments in mining and other sectors. The company has interests spanning iron ore, manganese, platinum group metals, coal and other minerals.

For now, ARM’s effort to move the two companies from business rescue into liquidation remains unresolved, with the next stage dependent on the additional court filings.