Mineral and Petroleum Resources Minister Gwede Mantashe has formally dismissed the appeal lodged by Springbok Solar Power Plant against the amendment of Tetra4’s production right, thereby confirming the inclusion of helium as a by-product of petroleum or natural gas in the Virginia gas project.

This decisive outcome follows a comprehensive review of legal and scientific arguments and brings an end to the debate over Tetra4 parent company Renergen’s right to extract and commercialise helium from its resource in the Free State, Renergen points out in a statement.

Mantashe found that this interpretation “not only aligns with a purposive reading of the Mineral and Petroleum Resources Development Act, but also upholds the principles of resource efficiency and regulatory consistency within the framework governing petroleum production”.

Renergen asserts that the ruling brings finality to the question of whether helium is regulated as a mineral or as a by-product of petroleum, confirming that its rights to extract and produce helium are secure and fully compliant with South African law.

“By dismissing what was deemed a vexatious appeal, the Minister has protected Renergen’s ability to unlock the full commercial value of its helium reserves, safeguarding the company’s long-term growth prospects and investment case,” the company states.

“This 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 Africa's premier helium and natural gas producer,” says Renergen CEO Stefano Marani.

This Ministerial decision, combined with the recent decision by the Department of Mineral and Petroleum Resources director-general, which effectively set aside the Section 53 approval relied upon by the Springbok Solar Project, renders the development unlawful, Renergen states.

Following the director-general’s ruling, Renergen attempted to obtain urgent temporary relief against further construction-related activities, as the Springbok Solar Project has continued.

The hurdle for urgency was not met in Bloemfontein High Court on May 23, but the court instructed the company to place this matter on the ordinary roll, ensuring it has sufficient time to review the merits of the case.

The matter will most likely be heard in the early part of June, Renergen says.