Gauteng High Court in Johannesburg has ordered Wesizwe’s flagship project and subsidiary, Bakubung Minerals, to immediately pay China Coal No. 5 Construction South Africa R201 million ($12.59 million), enforcing an adjudicator’s award linked to the development of the Bakubung Platinum Mine.

Judge NP Mali ruled on September 1 2026, that Bakubung, situated near Rustenburg on the Western Limb of the Bushveld Complex, south of the Pilanesberg Alkaline Complex, must pay R71.82 million ($4.5 million) awarded for compensation events and R129.04 million ($8.09 million) in repayment of low-performance damages, together with applicable interest. The court also ordered payment of a further R178,681.25 ($11,191) plus interest under an addendum to the adjudicator’s decision.

Court enforces R201 million adjudication award

The dispute arose from a November 2017 contract under which China Coal was appointed to undertake mining development, engineering, construction and related works at the Bakubung Platinum Mine.

The contract incorporated NEC3 dispute-resolution provisions, under which an adjudicator’s decision remained binding unless subsequently revised through the agreed process.

After several disputes emerged during the project, China Coal referred outstanding matters to adjudicator Francois Spies in early 2024. Spies issued his decision in September 2024, with the award delivered on October 24. Bakubung subsequently refused to comply, prompting China Coal to seek enforcement in the High Court.

Bakubung sought to delay payment

Bakubung did not dispute that the adjudicator had awarded money to China Coal but asked the court to stay enforcement while it pursued a review. Alternatively, it sought an order requiring the funds to be placed in an attorney’s trust account rather than paid directly to China Coal.

Bakubung argued that China Coal had limited ongoing operations in South Africa and might be unable to repay the funds if the adjudicator’s decision was later overturned. China Coal maintained that the award was contractually binding and that a potential future challenge did not justify withholding payment.

‘Pay now, argue later’ principle prevails

The court rejected Bakubung’s request, finding that NEC3 adjudication was designed to provide a rapid interim mechanism for resolving construction disputes.

Judge Mali held that alleged errors of fact, law or procedure by an adjudicator generally do not prevent enforcement of the decision. The court applied the established “pay now, argue later” principle, under which an adjudication award must be honoured pending its revision through arbitration or another agreed process.

“The Employer entered into the contract with full knowledge that the Contractor had only a single project in this jurisdiction,” Mali said. The court found that requiring payment into a trust account would undermine the purpose of interim adjudication.

$12.59 million award adds to Bakubung’s costs

The R129.04 million ($8.09 million) repayment of low-performance damages and R71.82 million ($4.5 million) compensation award amount to approximately R200.86 million ($12.58 million) before interest. Including the R178,681.25 ($11,191) addendum, the monetary orders total approximately R201.04 million ($12.6 million), excluding interest.

The court also ordered Bakubung Minerals Limited, the operating company for the Bakubung Platinum Mine (BPM) project located in the North West province of South Africa to pay China Coal’s legal costs on an attorney-and-client basis, citing delays in filing its answering affidavit and its failure to pay its share of the adjudicator’s fees. The ruling leaves Bakubung facing the immediate payment of R201 million ($12.59 million)-plus, interest, and punitive legal costs, while retaining the right to pursue review or arbitration through the contractually agreed process.

For mining and construction companies operating under NEC3 contracts, the judgment underscores the importance of complying with interim adjudication awards, even when the underlying dispute has not yet reached final resolution.