Case No. | Lower Court Judgments | Hearing Date | Judgment Date | Majority Author | Vote | |
CCT 58/13 | North Gauteng High Court, 20 Dec. 2011 SCA, 28 Mar. 2013 | 5 Sep. 2013 | 12 Dec. 2013 | Jafta J., and Moseneke DCJ | Unanimous |
By Duncan Wild on 12 December 2013
Prior the coming into effect of the Mineral and Petroleum Resources Development Act 28 of 2002 (“the MPRDA“), the Sishen Iron Ore Company (Pty) Ltd (“SIOC“) and ArcelorMittal South Africa Limited (“ArcelorMittal“) were co-holders of a mining right in respect of iron and quartzite on eight properties of twenty-one properties making up the Sishen mine. SIOC held 78.6% and ArcelorMittal 21.4% of the right. This right is referred to an an “old order” mining right, as it was granted under the pre-MPRDA regime. When the MPRDA came into force, ArcelorMittal and SIOC were entitled to convert their old order rights into new order mining rights under the MPRDA, as provided for in the MPRDA’s Transitional Arrangements. There was a five year period in which application needed to be made for the conversion, SIOC converted its right prior to the expiration of this period, but ArcelorMittal did not. After the expiration of the five year period, the Deputy-Director General: Mineral Regulation: Department of Mineral Resources (“Deputy D-G“) purported to grant a prospecting right in respect of iron ore in respect of seven of the eight Sishen properties to Imperial Crown Trading 289 (Pty) Ltd (“ICT“). The basis this prospecting right was granted was the assumption by the Deputy D-G that as ArcelorMittal had not converted its portion of the mining right. The grant of this right to ICT is the subject of this case. The Constitutional Court found that SIOC could only apply for and be granted the share of the right it had previously held (78.6%), but that only SIOC could apply for the remaining shares, and therefore it was not open to the D-G to any other party. Continue reading