Case Law[2025] ZAGPPHC 414South Africa
Mamokebe Investments (Pty) Ltd v Minister of Mineral and Energy and Others (2025/036849) [2025] ZAGPPHC 414 (22 April 2025)
High Court of South Africa (Gauteng Division, Pretoria)
22 April 2025
Headnotes
all the shares in die applicant. Matjoadi held 51% and Mphahlele held 49 %. They concluded a shareholder’s agreement on 13 September 2016 in terms of which they sold 70% of the shares to Alucento (Pty) Ltd. In terms of this agreement Alucento would be entitled to appoint 3 directors to the Board of the applicant and Matjoadi would be entitled to appoint 2 directors.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Mamokebe Investments (Pty) Ltd v Minister of Mineral and Energy and Others (2025/036849) [2025] ZAGPPHC 414 (22 April 2025)
Mamokebe Investments (Pty) Ltd v Minister of Mineral and Energy and Others (2025/036849) [2025] ZAGPPHC 414 (22 April 2025)
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sino date 22 April 2025
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG DIVISION,
PRETORIA
CASE NO: 2025/036849
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES / NO
(3)
REVIEWED: YES/NO
22
April
2025
In
the application by
MAMOKEBE
INVESTMENTS (PTY) LTD
Applicant
And
MINISTER
OF MINERAL AND ENERGY
1st
Respondent
DIRECTOR
GENERAL: DEPARTMENT OF MINERAL
RESOURCES
2
nd
Respondent
REGIONAL
MANAGER: MPUMALANGA REGIONAL
DEPARTMENT
OF MINERAL RESOURCES
3
rd
Respondent
MAMOKEBE
COLLIERY (PTY) LIMITED
4
th
Respondent
JUDGMENT
Raubenheimer
AJ:
Order
[1]
In this matter I make the following order:
1.
The application is dismissed with costs on scale C.
[2]
The reasons for the order follow below.
Introduction
[3]
The applicant approached the court on an urgent basis for the
following relief:
3.1
That the first, second and third respondents are directed and ordered
to refrain from prosecuting, processing or giving effect
to the
transfer of mining right MP10341MR to Mamokebe Colliery (Pty) Ltd or
any other party;
3.2
That the order in para 3.1 shall endure as an interim order, pending
the final adjudication of the applications instituted in the
High
Court of South Africa, Gauteng Division, Pretoria, under case numbers
(i) 2023-100053, (ii) 2023-067386 and (iii) 2023-071300.
The
Parties
[4]
The applicant is a company involved in mining of coal as the holder
of a mining right on the farm Grootspruit in the district of
Wakkerstroom. The mining right applied for in 2021 and was eventually
issued 21 May 2024 with the commencement date of the right
as 5 April
2024 and would endure for a period of 10 years.
[5]
Before being granted the mining right the company was granted a
prospecting right on the same property on 16 September 2010 for
a
period of 5 years. The prospecting right was renewed for a period of
3 years in 2015.
[6]
The first
respondent, the Minister of Mineral Resources and Energy, is the
executive authority of the relevant department in terms
of sect
ion
11 of the Mineral and Petroleum Resources Development Act
[1]
(MPRDA)
[7]
The second respondent is the Director General of the Department of
Mineral Resources and Energy cited in his capacity as the highest
ranking civil servant of the mentioned department.
[8]
The third respondent is the Mpumalanga Region Regional Manager of the
Department of Mineral Resources in his capacity as the administrative
head of that particular region in terms of section 8 of the MPRDA.
[9]
The fourth respondent was granted leave to intervene in the
application by order of Mnquibisa-Thusi J on 2 April 2025 due to its
interest in the application as the entity to which the mining right
of the applicant is to be transferred.
Background
[10]
The
applicant initially had five directors but two of them, Motjoadi and
Mphalele, were removed on 9 December 2022 in terms of an
ordinary
resolution of the shareholders in accordance with section 71(1) of
the Companies Act
[2]
. One of
these directors has since passed on in August 2024.
[11]
Before being removed the mentioned two removed directors held all the
shares in die applicant. Matjoadi held 51% and Mphahlele
held 49 %.
They concluded a shareholder’s agreement on 13 September 2016
in terms of which they sold 70% of the shares to
Alucento (Pty) Ltd.
In terms of this agreement Alucento would be entitled to appoint 3
directors to the Board of the applicant
and Matjoadi would be
entitled to appoint 2 directors.
[12]
On 7 April 2024, Motjoadi and Mphahlele resolved to enter into a sale
of shares agreement in terms of which they sold 26% and 25%
of their
shares to Kubeka (Pty) Ltd who would be able to appoint two
representatives as directors to the Board of Directors of
the
applicant. After this transaction the two former directors would have
a shareholding of 24% and 25% respectively and Kubeka
would have a
51% shareholding.
[13]
After the sale of shares the new directors of the applicant would be
Motjoadi, Mphahlele, De Wit and Kubeka.
The
litigation chronology
[14]
There is a protracted litigation history between the applicant and
the fourth respondent as well as between their directors and
shareholders.
[15]
The disputes are as follows:
15.1
Motjoadi, Mphahlele and the applicant launched and application on 10
July 2023 to have the shareholders agreement with Alucento
declared
null and void, to declare the appointment of Adam, Jansen and Maine
as directors of the applicant as null and void. This
matter is
pending under case number 2023-067386 in this court
15.2
An urgent application was launched under case number 2023-071300 in
this court by Matjoadi, Mphahlele and the applicant on
19 July
2023 to prevent Alucento (Pty) Ltd and the directors of the applicant
from convening meetings of the Board of Directors
in respect of the
third applicant and staying the operation of resolutions carried at
the meeting of 19 July 2023 pending the outcome
of the application
mentioned in paragraph 15.1. This matter was struck off the roll due
to lack of urgency.
15.3
Matjoadi and Mphahlele launched an urgent application citing as
respondents Alucento (Pty) Ltd, the four directors of the applicant,
the applicant and the Companies and Intellectual Property Commission
on 3 October 2023 under case number 2023-100053 for the rectification
of the share register of the applicant to the effect that the
applicants were the shareholders of the shares in the applicant from
2006 until the date of the application, setting aside the appointment
of the directors of the applicant, setting aside the removal
of
Matjoadi and Mphahlele as directors of the applicant, setting aside
the appointment of the Chief Executive officer of the applicant,
interdicting the convening of meetings of directors or shareholders
and interdicting the CEO of representing the applicant in any
manner
pending the outcome of the application mentioned in paragraph 15.1.
15.4
Mphahlele launched an urgent
ex parte
application under case
number 6453/2024 in the High Court in Middelburg. This application
was launched in the name of the applicant
to interdict the SAPS from
closing the illicit mining operations conducted on the area of the
mining right. The directors of the
applicant intervened in the
application and had the
rule nisi
discharged on 7 February
2025.
15.5
The Kubeka
Organisation (Pty) Ltd, with shareholders de Witt and Kubeka, brought
an urgent application in the Middelburg High Court
under case number
775/2025 against the majority shareholder of the applicant, Alucento
and the SAPS. This application was struck
off
due to lack
for
want
of
urgency.
15.6
On 26 February 2025 the applicant and Shokela, one of its directors,
launched an urgent application under case number 2025-028369
in this
court to have the names of the directors, Mphahlele, Kubeka and de
Witt, instilled as a result of the shareholders agreement
of 7 April
2024 removed as directors and those directors be interdicted from
acting or representing themselves as directors of
the applicant. This
application was settled and an order operating as an interim
interdict pending the final adjudication of the
matters referred to
in par 15.1, 15.2 and 15.3 was granted by me by agreement. The effect
of the order was that the directors of
the applicant was restored as
directors and that Mphahlele was also so restored and shall remain a
director of the applicant pending
the finalisation of the matters in
15.1-15.3.
[16]
The fourth respondent was incorporated after Matjoadi and Mphahlele
was removed as directors of the applicant in December 2022.
[17]
The directors of the fourth respondent is Matjoadi, Mphahlele, de
Witt and Kubeka. Who are the same persons appointed as directors
of
the applicant after the sale of shares to Kubeka (Pty) Ltd in 2024.
[18]
Matjoadi, Mphahlele, de Witt and Kubeka are also the shareholders of
the fourth respondent.
[19]
The applicant submitted the application for the transfer of the
mining right to the fourth respondent and the application was
submitted on behalf of the applicant by Matjoadi in her capacity as a
director of the applicant and is dated August 2024.
[20]
Urgency
[21]
The applicant contends that the application is urgent on the basis of
an announcement made by Ms Dlamini, employed at the third
respondent,
to the effect that the office of the third respondent had already
recommended the transfer and forwarded the recommendation
to the Head
Office of the Department and is awaiting final approval which is
immanent and that the transfer could only be prevented
from occurring
was through a court interdict.
[22]
This announcement was conveyed to the applicant after the Department
was informed on 7 March 2025 of the court order and that the
Board of
Directors had resolved to withdraw the application for the transfer
of the mining right with immediate effect. The Department
was
requested to confirm that the processing of the transfer will not be
proceeded with. No such confirmation was forthcoming
[23]
On 10 March 2025 the Department was again requested not to proceed
with the processing of the transfer application and to provide
an
undertaking to that effect. The Department acknowledged receipt of
the communication and referred the applicant’s representatives
to Ms Dlamini in so far as the undertaking was concerned.
[24]
The CEO of the applicant, Dr Adam attended to the offices on 12 March
2025 and delivered a hard copy of the court order of 7 March
as well
as the resolution of 7 March. Ms Dlamini agreed to meet with a
delegation of the applicant . It was during this meeting
that the
announcement mentioned in paragraph 21 was conveyed.
[25]
The
applicant further contends that the effect of the granting of consent
by the first respondent is that the mining right is transferred
resulting in the loss of that asset to the applicant. The basis of
this contention is that all the other processes for the transfer
and
registration of the mining right in terms of the Mining Titles
Registration Act
[3]
(MTRA) is a
mere formality. The applicant further contends that the first
respondent does not have a discretion is the granting
of the consent
as the MPDRA obliges the first respondent to consent to the transfer
when the jurisdictional factors mentioned in
sect 23 have been found
to have been met.
[26]
The jurisdictional factors mentioned in section 23 of the MPDRA deals
with requirements to be complied with in respect of the operations
of
the new holder, guarantees to be provided as well as viability and
sustainability factors. The applicant contend that the majority
of
the factors have already been assessed and found to be compliant and
that the first respondent will consequently obliged to
grant consent
for the transfer.
[27]
The applicant denies that there are any other legal remedy and that
when the right has been transferred it has been lost in perpetuity
by
the applicant.
[28]
The contentions by the respondents are essentially that the
application is not urgent as the first respondent has not made a
decision
and that the application is to interdict future
administrative action. They further contend that the granting of an
interdict would
amount to an infringement of the separation of powers
and that the first respondent should be allowed to exercise his
statutory
obligations.
[29]
The first
three respondents contends that the applicant has alternative
remedies namely sect
ion
96 of the MPRDA in terms of which the applicant can lodge an appeal
and apply for the administrative action to be suspended pending
the
outcome of the appeal.
[30]
The fourth respondent essentially raises the same grounds in
opposition of the urgency of the application. It raises the further
opposing point that the urgency is self-created as the applicant has
had knowledge of the application for consent since January
2025.
Discussion
[31]
The discussion shall deal with the requirement of urgency first.
[32]
The applicant states that it became aware of the application for the
transfer of the mining right in January 2025 when a contract
miner,
Greenlands, informed the directors of the applicant that the fourth
respondent had submitted an application for the transfer
of the
mining right to the fourth respondent.
[33]
Between January and April 2025 the applicant brought the urgent
application on 26 February and which culminated in the order granted
on 7 March which restored the directors of the applicant as such so
that they could resolve to withdraw the transfer application.
[34]
This does not amount to undue delay neither does it constitute
self-created urgency.
[35]
The meeting referred to in paragraph 24 occurred after the order of 7
March 2025 which restored the directorship of Mphahlele and
the
resolution of the Board of Directors withdrawing the application both
of which were provided to the third respondent. .
[36]
There is
consequently no application for the transfer of the mining right
s
before the first applicant for consideration and as such the first
respondent has no basis to consider the application any longer.
[37]
Section 96 of the MPRDA provides as follows:
(1)
Any
person whose rights or legitimate expectations have been materially
and adversely affected or who is aggrieved by any administrative
decision in terms of this Act may appeal in the prescribed manner to-
( a) the
Director-General, if it is an administrative decision by a Regional
Manager or an officer; or
(b) the Minister, if
it is an administrative decision by the Director-General or the
designated agency.
(2) An appeal in terms
of subsection ( 1) does not suspend the administrative decision,
unless it is suspended by the Director-General
or the Minister, as
the case may be.
(3) No person may
apply to the court for the review of an administrative decision
contemplated in subsection (1) until that person
has exhausted his or
her remedies in terms of that subsection.
(4) Sections 6. 7(1)
and 8 of the Promotion of Administrative Justice Act, 2000 (Act No. 3
of 2000), apply to any court proceedings
contemplated in this
section.
[38]
This right of appeal does not deal with an appeal based on a decision
by the first respondent to grant consent. The section deal
only with
an appeal to the first respondent based on a decision by a
subordinate official or entity such as the Director General
or the
designated agency appointed in terms of section 70 of the MPRDA.
[39]
For a transfer of a mining right or an interest in such right the
written consent of the Minister is required in terms of section
11(1)
of the MPRDA.
[40]
As there is no appeal to the Minister based on his own decision this
provision does not constitute an alternative remedy.
[41]
After the consent of the first respondent have been obtained the
process of registration of the transfer has to occur. This is
done in
terms of the (MTRA).
[42]
Registration
of a transfer of a mining right in terms of the MTRA occurs when the
registrar affixes his signature thereto.
[4]
[43]
Before
registration the registrar is required to examine all documents
submitted to him for registration. If the registration is
not
permitted by the MTRA or any other law or as to which any other valid
objection exists the registrar shall reject the registration
of such
document.
[5]
[44]
In the
process of examination of any document presented to him for
registration, the registrar has the power to require the production
of proof by way of affidavit of any fact necessary to be established
in connection with any matter sought to be performed by him.
[6]
[45]
The granting of the consent by the first respondent for the transfer
of the mining right consequently does not constitute the transfer
of
the right. It is a mere step in the process. The registrar is
entitled to entertain objections to the registration and has to
satisfy himself as to compliance with the applicable requirements in
respect of registrability of the transfer of the mining right.
[46]
The MTRA provides for an alternative remedy to be exercised during
the registration process. The applicant can avail itself of
the right
to object to the registrar and can even provide the registrar with
factual evidence under oath in its objection.
Conclusion
[47]
Based on the reasons above I make the order in paragraph 1
E
Raubenheimer
ACTING
JUDGE OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION
PRETORIA
Electronically
submitted
Delivered:
This judgement was prepared and authored by the Acting Judge whose
name is reflected and is handed down electronically
by circulation to
the Parties / their legal representatives by email and by uploading
it to the electronic file of this matter
on CaseLines. The date of
the judgment is deemed to be
COUNSEL
FOR THE APPLICANT:
Adv Naude SC
INSTRUCTED
BY:
Jaffer Inc
COUNSEL
FOR THE FIRST TO THIRD RESPONDENTS:
Adv Mpakane
INSTRUCTED
BY:
State Attorney
COUNSEL
FOR THE FOURTH RESPONDENT
:
Adv Stoop SC
INSTRUCTED
BY
Hajibey Bhayay
Mayet
& Stein Inc
DATE
OF ARGUMENT: 10 April 2025
DATE
OF JUDGMENT: 22 April 2025
[1]
Act 28 of 2002
[2]
Act 71 of 2008
[3]
Act 67 of 1967
[4]
Sect 13(1) Mining Titles Registration Act.
[5]
Sect 5(1)(b) Mining Titles Registration Act
[6]
Sect 6(1)(a) Mining Titles Registration Act
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