Renergen secures helium rights as SA minister dismisses Springbok Solar's appeal

South Africa’s Minister of Mineral and Petroleum Resources has dismissed an appeal by Springbok Solar Power Plant against Renergen’s helium extraction rights at the Virginia Gas Project, affirming the company’s legal authority to extract and commercialise helium as a by-product of natural gas.

The decision, announced on Monday, ends a protracted dispute and strengthens Renergen’s position as a key player in South Africa’s helium and natural gas sector.

The ruling follows a thorough review of legal and scientific arguments, resolving a contentious debate over whether helium should be classified as a mineral or a petroleum by-product under South African law. The Minister’s decision confirms that helium extraction falls within Tetra4’s existing Production Right, a subsidiary of Renergen, aligning with the Mineral and Petroleum Resources Development Ac.

The Minister said this interpretation promotes “resource efficiency and regulatory consistency” in South Africa’s petroleum framework.

“This is a landmark decision for Renergen and its shareholders,” said Stefano Marani, the CEO of Renergen. “The appeal was a tactical move to challenge our position, but with this matter now settled, we can focus on scaling up production and delivering value as South Africa’s leading helium and natural gas producer.”

The decision also has implications for Springbok Solar, whose appeal was deemed “vexatious” by Renergen. Additionally, a recent ruling by the Director-General of the Department of Mineral and Petroleum Resources set aside a Section 53 approval critical to the Springbok Solar Project, rendering its development unlawful. Renergen sought urgent relief to halt construction at the solar project but was denied by the Bloemfontein High Court on May 23, 2025, due to procedural urgency requirements. The court instructed Renergen to place the matter on the ordinary roll, with a hearing expected in early June.

The ruling secures Renergen’s ability to tap into its world-class helium reserves in the Free State, a critical asset given helium’s growing demand in industries such as medical imaging, aerospace, and semiconductor manufacturing. Analysts say the decision bolsters investor confidence in Renergen’s long-term growth, as the company moves to ramp up production at the Virginia Gas Project.

Marani expressed optimism about ongoing negotiations with Springbok Solar, stating, “We are confident this resolution paves the way for a mutually beneficial outcome.” However, with the solar project’s legal standing in question, the dispute may continue to unfold in court next month.

Renergen's share price at 9.11am was flat at R11.54 on the JSE.

Last Tuesday Renergen’s share price rocketed 44.7% following the announcement of a buyout offer for South Africa’s only onshore gas production company by Nasdaq-listed ASP Isotopes, to create a merged company focused on globally sought-after critical materials.

ASP Isotopes, which only last month indicated it wished to do a secondary listing on the JSE later this year, has made a firm share-for-share offer to acquire 100% of the shares in Renergen, by way of a scheme of arrangement or standby general offer. | www.businessreport

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