Case Law[2025] ZAGPPHC 967South Africa
Rio Tinto Mining and Exploration Proprietary Limited v Buchuberg Resources Proprietary Limited and Others (2024/044452) [2025] ZAGPPHC 967 (1 September 2025)
High Court of South Africa (Gauteng Division, Pretoria)
1 September 2025
Headnotes
it in abeyance — until Buchuberg's application was refused or, if granted, until it expired.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Rio Tinto Mining and Exploration Proprietary Limited v Buchuberg Resources Proprietary Limited and Others (2024/044452) [2025] ZAGPPHC 967 (1 September 2025)
Rio Tinto Mining and Exploration Proprietary Limited v Buchuberg Resources Proprietary Limited and Others (2024/044452) [2025] ZAGPPHC 967 (1 September 2025)
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sino date 1 September 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 2024-044452
(1)
REPORTABLE: YES/NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED:
DATE1/9/25
SIGNATURE
In
the matter between:
Rio
Tinto Mining and Exploration
Proprietary
Limited
Applicant
and
Buchuberg
Resources Proprietary Limited
First
Respondent
Regional
Manager: Mineral Regulation,
Western
Cape
Province
Second
Respondent
Deputy
Director General: Mineral and Petroleum
Regulation
Third Respondent
Order:
1.
The application is dismissed.
2.
The Applicant is ordered to pay the costs of the First Respondent,
including
the
costs of two
counsel where so employed.
JUDGMENT
TOLMAY
J
1.
The
applicant Rio Tinto Mining and Exploration Proprietary Limited
(“RTME”) applies for an interim interdict to prohibit
the
first respondent Buchuberg Resources Proprietary Limited
(“Buchuberg”) from conducting prospecting in terms of
two
prospecting rights granted to Buchuberg in November 2023 by the third
respondent (“Deputy Director-General”) in
terms of the
Minerals and Petroleum Resources Development Act
[1]
(MPRDA).RTME says that it became aware of the decisions to grant
prospecting rights (“the Grant Decisions”)in February
2024.RTME has up to date hereof not brought any challenge to the
Grant Decisions. But has indicated that it intends doing so in
the
future. It seeks interim relief pending the determination of a review
application (“the Review Application”) it
brought in 2022
against the decisions taken by the second respondent (“the
Regional Manager”) in 2021 to accept Buchuberg’s
application for prospecting rights that was submitted by Buchuberg in
January and February 2021 (“the Acceptance Decisions”).
2.
The following issues need to be determined:
2.1.
Whether RTME has established the requirements for an interim
interdict.
2.2.
Whether the legality, validity and effectiveness of the Prospecting
Right Decisions
should be suspended on an interim basis pending the
final determination of the Review Application, under section 8(1)(e)
of the
Promotion of Administrative Justice Act (PAJA).
2.3.
Whether RTME should be exempt from the duty to exhaust any internal
remedies.
3.
RTME first launched an urgent
application seeking materially the same relief as in this application
on 28 March 2024 (‘the
first urgent application”) but
withdrew it on 18 April 2024 after receiving Buchuberg’s
answering affidavit. RTME then
launched another urgent application on
22 April 2024, (the second urgent application). This application was
struck from the roll
due to lack of urgency. On 18 June 2024, RTME
set down this application for an interim interdict on the opposed
motion roll for
hearing.
4.
The background facts are that on 27 August
2020, Buchuberg applied for two prospecting rights on contiguous
areas on the West Coast
of the Western Cape. Buchuberg submitted
prospecting right application WC30/5/1/1/2/10338PR ("application
10338PR") and
application WC30/1/1/2/10339PR ("application
10339PR").
5.
On 28 August 2020, RTME submitted its own
application for a prospecting right to prospect for the same minerals
as Buchuberg on
56 properties, including 32 properties that were the
subject of Buchuberg's applications (the overlapping properties").
This
application is referred to as application 10340PR.
6.
On 1 and 8 September 2020, the Regional
Manager accepted Buchuberg’s applications 10338PR and 10339PR
(the initial applications)
respectively. On 21 September 2020, the
Regional Manager partially accepted RTME’s application 10340PR,
the acceptance excluded
prospecting rights on the overlapping
properties.
7.
Because Buchuberg’s initial
applications were submitted before RTME’s, application they had
to be dealt with ahead of
RTM’s applications in terms of s 9 of
the MPRDA. Once Buchuberg's applications were accepted, RTME’s
own application
for a prospecting right in respect of the overlapping
properties could not be accepted by the Regional Manager, in terms of
s16(2)(c)
of the MPRDA. The Regional Manager therefore issued a
letter to RTME in September 2020 indicating that he had accepted
application
10340PR only in respect of the properties that were not
the subject of Buchuberg’s initial applications.
8.
Section 9 of the MPRDA reads as follows:
“
Order
of processing of applications:
(1) If a Regional
Manager receives more than one application for a prospecting right, a
mining right or a mining permit, as the
case may be, in respect of
the same mineral and land, applications received on-
(a) the
same day must be regarded as having been received at the same time
and must be dealt with in accordance with
subsection (2);
(b)
different days must be dealt with in order of receipt.
[Para. (b) substituted
by s. 6 (a) of Act 49 of 2008 (wef 7 June 2013).]
(2) When the Minister
considers applications received on the same day he or she must give
preference to applications from historically
disadvantaged persons.
[Sub-s. (2)
substituted by s. 6 (b) of Act 49 of 2008 (wef 7 June 2013).]”
9.
On 22 January 2021, Buchuberg lodged
applications WC30/5/1/1/2/10352PR ("application 10352PR")
and WC30/5/5/1/1/2/10353PR
("application 10353PR"), which
were identical to the initial applications. On 3 February 2021,
Buchuberg withdrew the
initial applications. Application 10352PR was
accepted by the Regional Manager on 10 February 2021 and application
10353PR was
accepted by the Regional Manager on 3 March 2021.
10.
RTME accepts that its application was
correctly rejected by the Regional Manager at the time it was
submitted, on 8 April 2021.
It is however of the view that once the
initial applications were withdrawn, its application 10340PR was
revived. And seeing that
it was next in line, the prospecting rights
on the overlapping properties should have been granted to RTME.
11.
RTME submitted an appeal to the
Director-General in terms of s96 of the MPRDA against the Regional
Manager's decisions to accept
Buchuberg's applications 10352PR and
10353PR. On 20 January 2022 the Director-General dismissed RTME’s
appeal (“the
Appeal Decision”).
12.
On 20 December 2022, RTME launched the
Review Application to review and set aside the Director-General’s
Appeal Decision and
the Acceptance Decisions. Buchuberg opposes the
Review Application. This application is still pending.
13.
Buchuberg's applications were evaluated by
the DMRE and in November 2023, the Deputy Director-General issued the
decision granting
the prospecting rights. The prospecting rights were
notarially executed on 25 January 2024 and registered in the Mineral
and Petroleum
Titles Registration Office on 27 February 2024 and 15
March 2024. Buchuberg informed RTME that it had been granted
prospecting
rights on 20 February 2024.
14.
At this point the Grant Decisions have not
been challenged. RTME has now taken steps to include such a
challenge in the review
application. An amended notice of motion was
delivered in the
R
eview
A
pplication,
which included relief in respect of the Grant Decisions. Buchuberg
objected to the amendment as it did not comply with
Rule 28 of the
Uniform Rules of Court.
15.
RTME withdrew the amendment and gave notice
of an amendment in terms of Rule 28 of the Uniform Rules of Court.
Buchuberg again objected
on the basis that the decision-maker of the
Grant Decisions, the Deputy Director-General, was not a party in the
Review Application
and no relief could be sought in respect of the
Grant Decisions, and on the basis that there were no allegations in
the founding
papers in the Review Application in support of the
relief sought in respect of the Grant Decisions. RTME then allowed
the proposed
amendment to lapse.
16.
In August 2024, RTME brought an application
to join the Deputy Director-General as a respondent in the Review
Application, which
it says was enrolled for hearing in March 2025. It
says that once the Deputy Director-General has been joined as a
respondent,
it will seek to amend its notice of motion and deliver a
supplementary founding affidavit in the Review Application. No
information
regarding the joinder application’s outcome was
provided to this Court.
17.
There is no dispute that in this matter,
the Regional Manager's decisions to accept Buchuberg's initial
applications were correct
at the time they were taken. RTME’s
complaint is that rather than rejecting their application, the
Regional Manager ought
to have held it in abeyance — until
Buchuberg's application was refused or, if granted, until it
expired.
18.
At this stage this Court is only seized
with an application for an interim interdict. The legal requirements
for an interim interdict
are well established. It must be
demonstrated that —
18
.1
a prima facie right exists to final relief in due course.
The applicant must
establish a prima facie right, which means
demonstrating the existence of a right in terms of substantive law.
This right does
not need to be clear or definitive at this stage but
must be sufficient to justify the interim relief sought;
1
8
.2
a reasonable apprehension of irreparable harm if the interim
interdict is not granted This
harm must be such that it cannot be
adequately remedied by other means, such as damages, and must be
objectively assessed;
1
8
.3
that the balance of convenience favours the grant of an interim
interdict. The court must
weigh the prejudice that the applicant will
suffer if the interim interdict is not granted against the prejudice
the respondent
will suffer if it is granted. The stronger the
applicant's prospects of success, the less the need for the balance
of convenience
to favour them, and vice versa and;
1
8
.4
that there are no reasonable alternative remedies available.
19.
These requirements are interrelated and
must be considered holistically by the court. The court retains a
discretion in granting
or refusing an interim interdict, and this
discretion must be exercised judicially based on the facts of each
case.
20.
As
far as the requirement for a prima facie right is concerned RTME
submits that it has prospects of success in the Review Application.
The crux of RTME’s argument is that s9 of the MPRDA envisages a
queuing system and for purposes of the argument relies on
Aquila
Steel (South Africa) (Pty) Ltd V Minister of Mineral Resources and
Others
[2]
.
This was a
R
eview
A
pplication
under PAJA seeking to set aside prospecting rights that was granted
in terms of the MPRDA. The Constitutional Court explained
that:
“
Section
9 requires that, if received on the same day, competing applications
from historically disadvantaged persons must enjoy
preference; but,
if received on different days, competing applications must be dealt
with in the order in which they are received.’
Section 9
indeed provides for a queuing system which may indeed imply that one
cannot withdraw an application and replace it with
a new application
and by so doing jump the queue.”
[3]
21.
It was argued on behalf of Buchuberg that
even if RTME obtains the final relief it currently seeks in the
Review Application, this
will not have the effect of prohibiting
Buchuberg from conducting prospecting. This is because the Review
Application challenges
only the lawfulness of the Acceptance
Decisions and these decisions have been superseded by the Grant
Decisions.
22.
RTME
counters this argument by submitting that the setting aside of the
Grant Decisions must follow if it is successful in setting
aside the
Acceptance Decisions. In so doing it relies on
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
[4]
the argument is that the judicial invalidation of an administrative
decision has the automatic effect of invalidating every
subsequent
administrative decision that has been made as a consequence of the
administrative decision that the court has declared
unlawful.
23.
What
Oudekraal
made clear is that in appropriate circumstances a consequential act
may be declared invalid, once an earlier act is declared invalid.
The
principle is not that the consequential act must be automatically set
aside. In review proceedings the court has a wide discretion
to grant
an appropriate remedy where an impugned decision is found to be
unlawful and such a remedy must be fair to all effected
by it while
vindicating the right that was violated.
[5]
In
Bengwenyama
the
Constitutional Court explained:
‘
The
apparent anomaly that an unlawful act can produce legally effective
consequences is not one that admits easy and consistently
logical
solutions. But then the law often is a pragmatic blend of logic and
experience. The apparent rigour of declaring conduct
in conflict with
the Constitution and PAJA unlawful is ameliorated in both the
Constitution and PAJA by providing for a just
and equitable
remedy in its wake. I do not think that it is wise to attempt to lay
down inflexible rules in determining a just
and equitable remedy
following upon a declaration of unlawful administrative action. The
rule of law must never be relinquished,
but the circumstances of each
case must be examined in order to determine whether
factual certainty requires some
amelioration of legality and, if so,
to what extent. The approach taken will depend on the kind of
challenge presented —
direct or collateral; the interests
involved, and the extent or materiality of the breach of the
constitutional right to just administrative
action in each particular
case. ‘
[6]
24.
The
above illustrates that a court has a wide discretion whether to grant
or withhold a remedy even if a ground of review has been
established.
[7]
One can then conclude that
the court hearing the Review Application will consider all the
relevant circumstances of this case before
determining an appropriate
remedy, if any, even if it is established that the impugned decision
was unlawful. The prospect of success
is thus not as clear as was
proposed by RTME. and whether the interim interdict should be granted
will require a balancing and
weighing up of all the requirements of
an interim interdict. There is a further aspect that impacts on the
prospects of success
and that is that RTME did not exhaust the
internal remedies available to it under the MPRDA. This aspect is
discussed later in
the judgment when the issue of internal remedies
is considered.
25.
Whether RTME will suffer irreparable harm
if the interdict is not granted is now considered. The applicable
test is objective and
must be determined on the facts before the
court.
26.
RTME
is not the owner of the overlapping properties and even if any
physical harm occurs, Buchuberg will be liable for that damage.
Buchuberg was obliged to provide an environmental management plan in
terms of the MPRDA and the National Environmental Management
Act
[8]
(“the NEMA”).
These acts collectively require an applicant for a prospecting right
to obtain an environmental authorisation
for its prospecting
activities. It is also required to undertake an environmental
assessment of the likely impact of prospecting
and to put in place
remedial measures to mitigate any such impacts. An applicant is also
obliged to put in place financial provision
sufficient to remedy such
impact.
27.
Buchuberg has concluded land access
agreements with the relevant owners of the properties. Section 54 of
the MPRDA makes provision
for the payment of compensation to a
landowner for any loss or damage caused by prospecting, even without
such an agreement. Consequently,
there is no merit in the argument
that RTME will suffer physical harm if the interdict is not granted.
28.
Another argument raised by RTME is that
Buchuberg will analyse and obtain valuable information in respect of
the mineral resources
on the prospecting area that should be
proprietary to RTME if it succeeds in obtaining its own prospecting
right .However, if the
review application succeeds ,RTME will be
granted prospecting rights and will have exclusive mining rights and
any information
obtained by Buchuberg will be of no use to it.
29.
Finally, RTME says that Buchuberg, in its
prospecting, will remove material that contains the “best
data”, preventing
RTME from accessing this data. In its
answering affidavit, Buchuberg says that its drilling is limited in
scale and scope. RTME
does not provide a substantive response to this
in its replying affidavit.
30.
The enquiry into balance of convenience
follows .There is a relationship between the prima facie right that
must be established
and the balance of convenience. It is an
established principle that the weaker an applicant’s prospects
of success is, the
greater the need for the balance of convenience is
to favour it. RTME says that it will suffer irreparable harm if the
interim
interdict is not granted. This argument has already been
dealt with and it was shown that there simply is no merit in it.
31.
There is no merit in the argument that
Buchuberg will suffer no prejudice if the interdict is granted.
Buchuberg has already spent
approximately R5.4 million on
prospecting. This money can only be recouped if and when the mining
ultimately starts mining. The
granting of interim relief will delay
the process.
32.
There is also a public interest element at
play. The general principle underlying the MPRDA is to ensure the
greatest possible access
to the national mineral resources. Once a
prospecting right is granted, the public interest supports the
exploitation of the resources.
The granting of interim relief will
postpone the benefits that prospecting and ultimately mining will
bring to both the local communities
and the public in general. This
must be weighed against the interests of RTME which is at this stage
purely commercial in nature
It is obvious that the public interest
should be preferred. The balance of convenience accordingly does not
favour RTME.
33.
RTME faces another obstacle as in respect
of the Grant Decisions, RTME has not exhausted internal remedies.
Section 7(2) of
PAJA requires the exhaustion of any internal remedy,
unless exceptional circumstances exist. No case is made out on the
papers
that exceptional circumstances exist.
34.
RTME should have submitted an appeal to the
Director-General in terms of s96 of the MPRDA. In terms of
s96(2)(a) of the MPRDA,
RTME could have requested the
Director-General to suspend the Grant Decisions pending the
determination of the appeal. Such a suspension
would have provided
the relief sought in this application.
35.
RTME raised several reasons why it was not
obliged to exhaust the internal remedy provided for in s96 of the
MPRDA. First, RTME
says the remedy of a suspension request is not
adequate because the MPRDA does not expressly make provision for the
determination
of requests for suspensions on an urgent basis. No
specific time periods are set out in the MPRDA for the request for
suspension
and there is nothing to indicate that it could not have
been brought on an urgent basis.
36.
Second, RTME makes the cynical observation
that it should not be required to exercise the internal remedy
because it should not
be required ‘to place its faith in the
off-chance that the Director-General will agree to suspend the
Prospecting Right Decisions
and do so urgently.’ This argument
cannot be supported as it would require the court to disregard
legislation and the important
role administrators play. Such an
approach would place the principle of separation of powers in
jeopardy. The Director-General’s
powers and duties are set out
in the MPRDA and he is obliged to act within the confines of the
statutory framework. If he fails
to comply with his obligations RTME
will be entitled to approach the court for appropriate relief.
37.
Third, in the heads of argument RTME argued
that it could not submit an appeal to the Director-General because it
does not seek
to challenge the merits of the Grant Decisions. This
argument does not have any merit. The fact that RTME sought to
include the
Grant Decisions in the review by way of amendment points
to a contradictory position. In any event, the fact that an appeal
may
not be meritorious can never justify non-compliance with
legislation. In any event s96 makes specific provision for the
suspension
of the Grant Decision which could have addressed the
dispute pending the determination of the Review Application. RTME
therefore
had an alternative remedy and should have availed itself of
it.
38.
When one considers the requirements for an
interim interdict holistically it is apparent that RTME did not
succeed in making out
a case for such relief. The facts underlying
this case justifies an exercise of the Court’s discretion in
favour of Buchuberg.
39.
In
prayer 4 of the notice of motion, RTME prays for an order
“
to
the extent that the court deems it necessary to do so for the
purposes of granting
”
the
interim interdict. In the heads of argument RTME clarified that the
suspensory relief is aligned with the primary relief sought.
This
prayer can only be granted if it was found that RTME satisfied the
requirements for an interdict and the suspension of the
Grant
Decisions is necessary. Due to the conclusion reached in relation to
the interdictory relief this Court does not have to
consider this
aspect.
The following order is
made:
1.
The application is dismissed.
2.
The applicant is ordered to pay the costs of the respondent,
including costs
for two counsel if employed on scale C.
R
TOLMAY
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Appearances
Counsel
for Applicant: Adv MD Stubbs instructed by Webber Wentzel
Counsel
for First Respondent: Adv M Wesley SC & Adv P Maharaj-Pillay
instructed by Malan Scholes Inc
Date
heard: 6 February 2025
Date
of Judgment: 01 September 2025
[1]
28
of 2002.
[2]
2019 (3) SA 621
(CC) (15 February 2019).
[3]
Id.
at para 77.
[4]
2004 (6) SA 222
(SCA) (28 May 2004).See also Seale v Van
Rooyen no and Others; Provincial Government, North West Province v
Van Rooyen
NO and Others
2008 (4) SA 43
(SCA) (27 March 2008).
[5]
Steenkamp NO v Provincial Tender Board of the Eastern Cape 2007(3)
SA 121 (CC) par29;
BENGWENYAMA
MINERALS (PTY) LTD AND OTHERS v GENORAH RESOURCES (PTY) LTD AND
OTHERS
2011 (4) SA 113
(CC).(Bengwenyama)
.
[6]
Id. Par.85.
[7]
NATIONAL
ENERGY REGULATOR OF SOUTH AFRICA AND ANOTHER v PG GROUP (PTY) LTD
AND OTHERS
2020 (1) SA 450
(CC) par.89.
[8]
107 of 1998.
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