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# South Africa: North Gauteng High Court, Pretoria
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## Beestepan Boerdery (Pty) Ltd v Vandabyte (Pty) Ltd (021118/2024)
[2025] ZAGPPHC 1283 (14 November 2025)
Beestepan Boerdery (Pty) Ltd v Vandabyte (Pty) Ltd (021118/2024)
[2025] ZAGPPHC 1283 (14 November 2025)
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sino date 14 November 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
number: 021118/2024
(1) REPORTABLE:
(2)
OF INTEREST TO THE JUDGES:
(3)
REVISED.
DATE:
14/11/2025
SIGNATURE:
Date:
2025
In
the matter between:
BEESTEPAN
BOERDERY (PTY) LTD
Applicant
and
VANDABYTE
(PTY) LTD
Respondent
JUDGMENT
BRAND
AJ
Introduction
and background
[1]
This matter concerns the interpretation of section 54 of the Minerals
and Petroleum
Resources Development Act 28 of 2002 (the ‘MPRDA')
and the question whether a holder of a mining right may enter onto
land
to which that right applies and commence mining despite the
dispute resolution process provided for in section 54 to determine
compensation for loss that may result from the mining for the owner
of the land not having been exhausted. The matter comprises
an
application (‘the main application’), coupled with an
interlocutory application; and a counter application.
[2]
With the main application the applicant seeks to prevent the
respondent from accessing
one of its farms and commencing open-cast
coal mining in terms of a mining right that it holds, until the
process prescribed in
section 54 of the MPRDA to determine
compensation for any loss caused the applicant by the mining has been
concluded, and such
compensation paid; and to gain access to
information concerning the respondent’s mining right.
[3]
In the interlocutory application the applicant seeks leave to file a
supplementary
affidavit; to join another party (the Minister of
Minerals and Energy – ‘the Minister’); and to amend
its notice
of motion in the main application to add prayers for
orders related to the respondent’s duties concerning
rehabilitation
of the applicant’s land once mining has been
concluded.
[4]
With the counter application – in essence the flipside of the
main application
- the respondent seeks to force the applicant to
allow it to move onto its farm and commence mining, in exercise of
the mining
right that it holds, despite that the compensation issue
has not yet been resolved.
Background
[5]
The applicant is Beestepan Boerdery (Pty) Ltd (‘Beestepan’),
a commercial
farming concern based in Middelburg, Mpumalanga.
Beestepan farms crops and stock on several farms in the Steve Tshwete
Local Municipality
in Mpumalanga. These farms include a portion of
the farm Dunbar,
[1]
which
Beestepan owns.
[6]
The respondent is Vandabyte (Pty) Ltd (‘Vandabyte’), a
company based in
Centurion, Gauteng but with its sole director, one
Deale, resident in Middelburg in Mpumalanga.
[7]
Vandabyte holds a mining right to conduct open-cast coal mining on
parts of several
farms around Middelburg, including Dunbar farm. It
obtained this right through the processes prescribed in the MPRDA.
[8]
Vandabyte was granted the mining right on 15 June 2023, for a period
of 10 years,
until 15 June 2033. It is required to execute the mining
right (ie, commence mining) within one year after the date of grant.
To
do so, it requires access to the land to which the mining right
applies, including Dunbar farm.
[9]
Substantially before the grant of the right, Vandabyte, through its
majority shareholder,
Dunbar (Coal) (Pty) Ltd (‘Dunbar Coal’)
already entered into discussions with Beesteplaas about access to
Dunbar farm.
While there may be dispute about the content of those
engagements and the positions taken by the protagonists (the idea at
the
time was that Vandabyte would purchase either a part of or the
whole Dunbar farm, with disagreement on the purchase price and
valuations),
the parties are agreed that they engaged either through
correspondence or in meetings at least eight times before the mining
right
was granted.
[10]
Once the mining right was granted these engagements continued. On 31
July 2023, Dunbar Coal on
behalf of Vandabyte wrote Beestepan to
inform it that it had acquired the mining right. It also indicated
that it required access
to Dunbar farm to execute the mining right,
that its intention to acquire Dunbar farm for that purpose remained
and that its previous
offer to purchase it was still in place.
[11]
Beestepan responded through its attorneys that Vandabyte’s
offer was not acceptable. It
proposed a meeting to resolve the issue.
This meeting indeed took place on 4 September 2023, but no agreement
resulted, with the
sticking point still the purchase price.
[12]
On 13 September 2023, Beestepan submitted a notice in terms of
section 54 of the MPRDA to the
Regional Manager of the Department of
Minerals and Energy (‘the DME’) informing him that
Beestepan was likely to suffer
damages or loss as a result of
Vandabyte’s proposed mining on Dunbar Farm and that the
parties, despite attempts at reaching
a resolution concerning
compensation for that loss or damage, were unable to do so. On 26
October 2023, Vandabyte for its part,
also in terms of section 54 of
the MPRDA, notified the Regional Manager that in its view, Beestepan
was making unreasonable demands
in return for access to Dunbar farm.
It requested the Regional Manager to set in motion the dispute
resolution process provided
for in section 54 to resolve the impasse
between it and Beestepan.
[13]
The Regional Manager responded to Vandabyte’s notice on 22
November 2023, requesting Beestepan
and Vandabyte to attend a meeting
on 29 November 2023 to try to reach agreement. In the meantime, on 23
November 2023, Beestepan
wrote Vandabyte with another offer to
purchase a portion of Dunbar farm. This offer was rejected as
Vandabyte did not accept the
purchase price.
[14]
The meeting with the Regional Manager took place on 29 November 2023.
There Vandabyte and Beestepan
agreed each to obtain and exchange
independent valuations of Dunbar farm by 31 January 2024 and then to
meet on 12 February 2024
to try to reach agreement. In the event this
failed, the Regional Manager would be informed.
[15]
Both parties obtained and then exchanged their independent
valuations. The valuations were markedly
different. In this light,
the planned meeting of 12 February did not take place. Instead, on 13
February 2024, Vandabyte informed
Beestepan in writing that, because
they had proven unable to agree on an amount of compensation, it had
decided to refer the determination
of compensation to arbitration or
a competent court, ‘as anticipated by the provisions of section
54(4) of the [MPRDA]’.
[16]
On the same day, Vandabyte also delivered a notice to Beestepan in
terms of section 5A(c) of
the MPRDA. In this notice, it informed
Beestepan that it intended commencing with mining on Dunbar farm on
18 March 2024 and would
for that purpose enter onto Dunbar farm on
that date.
[17]
Beestepan responded in writing on 17 February 2024 that it denies
Vandabyte access to Dunbar
farm. It also requested an undertaking
from Vandabyte that it would not attempt to access and commence
mining on Dunbar farm until
proper consultation concerning
compensation for loss occasioned by the mining had taken place and
such compensation had either
been agreed or determined in terms of
section 54 of the MPRDA.
[18]
Vandabyte responded on 22 February 2024 that there was no reason why
access could be withheld
and that the consultation process concerning
compensation could proceed parallel to commencement of mining.
[19]
To this Beestepan replied on 23 February, that in light of
Vandabyte’s refusal to provide
the undertaking sought, it would
launch proceedings to interdict Vandabyte from entering onto Dunbar
farm and commencing mining
there. True to its word, Beestepan filed
and served its application for this interdict (the main application
in this matter) on
26 February 2024.
[20]
On 29 February 2024 Vandabyte wrote Beestepan that it undertook not
to access Dunbar farm until
the then current maize crop had been
harvested, which was estimated to be around the end of July 2024. It
also repeated its proposal
that the matter of compensation be
referred for arbitration, but while mining commences.
[21]
On 28 February 2024, Vandabyte noted its opposition to the main
application. On 5 March it filed
its answering affidavit to the main
application and at the same time (and on the basis of the same
affidavit) launched its counter
application in which it sought an
order granting it access to Dunbar farm and prohibiting Beestepan
from interfering with such
access. Although both the main and counter
application were originally urgent, the parties later agreed that
they should instead
proceed in the ordinary course.
[22]
This was no doubt at least in part prompted by the fact that the
parties had reached agreement
on referring the determination of
compensation to an arbitrator. During the first half of April 2024,
the arbitration agreement
was finalised, and the arbitrator was
appointed. From there the arbitration process proceeded parallel to
the still pending litigation.
Statements of claim and defence were
finalised and the arbitration hearings commenced on 14 March 2025.
Indeed, when this matter
came before me for hearing on 14 and 15 May
2025, the arbitration hearing was ongoing and it was in fact set to
conclude on 16
May, one day after the hearing before me.
[2]
[23]
As could be expected, the parallel litigation and arbitration
processes dealing with ostensibly
different (but obviously closely
related) aspects of one and the same dispute, could not be
hermetically sealed from one another.
[24]
Once the arbitration process took shape, the object of the parties’
engagement changed.
Prior to this, they negotiated about an
appropriate purchase price for Dunbar farm, on the assumption that
Vandabyte wished to
acquire ownership of the farm to enable mining to
commence. In the arbitration the object became determination of
compensation
for loss that Beestepan as owner of Dunbar farm would
suffer as a consequence of Vandabyte’s mining.
[25]
To Beestepan, this indicated that Vandabyte no longer wished to
acquire Dunbar farm and that
it stood to remain owner of Dunbar farm
for the duration of the execution of Vandabyte’s mining right,
and after its conclusion
after 10 years. In its view, this meant that
it no longer faced only the loss occasioned by the interference in
its farming activity
on Dunbar farm, which could perhaps have been
fully recompensed through an appropriate purchase price. It also
incurred the risk
of potential liability for a possible failure by
Vandabyte properly to rehabilitate the farm once mining has been
concluded.
[26]
In part to anticipate and cater for this potential risk, Beestepan
then launched its interlocutory
application on 20 December 2024. In
this application Beestepan sought leave to file a supplementary
affidavit. This supplementary
affidavit was intended to serve as
founding affidavit for its interlocutory application, placing facts
before court related to
the new potential harm Beestepan perceived,
and as a supplementary answering affidavit to Vandabyte’s
counter application.
Beestepan in the interlocutory application also
sought several additional orders that would enable it, on its
version, to mitigate
and manage the risk occasioned by it remaining
owner of Dunbar farm.
[27]
The interlocutory application triggered the exchange of several sets
of additional affidavits.
In addition to the supplementary affidavit
for which Beestepan sought leave to admit in the interlocutory
application there followed
three opposing/replying/further affidavits
from Vandabyte; and two replies from Beestepan.
[28]
All of this contributed to the further burgeoning of an already
voluminous set of papers. In
this light not surprisingly, when this
matter came before Basson J on its first hearing date, 12 February
2025, it was transferred
to a Special Motion Court and by agreement
postponed to 14 and 15 May 2025.
Issues
[29]
As stated at the outset, I am called upon against this background to
decide a main application;
coupled with an interlocutory application;
and a counter application. Below I address the interlocutory
application first and then
the main and counter applications. But
before I do so, it pays to identify what the issues in this matter
are. These cut across
and are determinative of all three
applications.
[30]
Despite the seeming complexity of this matter that prompted the
parties to expand the papers
to such an extent that a hearing before
a special motion court was warranted, the main and counter
applications relate to the same
basic question, namely whether or not
Vandabyte is entitled to enter onto and commence mining operations on
Dunbar farm before
the dispute between the parties concerning
compensation for loss that will be caused to Beestepan through
Vandabyte's mining on
Dunbar farm has been resolved through the
processes provided for and to the extent required by section 54 of
the MPRDA. More precisely,
only two concrete substantive issues
arise:
[30.1] whether Vandabyte
is entitled to access Dunbar farm to execute its mining right before
compensation for Beestepan has been
either agreed to or determined,
and in particular before an arbitration process concerning this,
initiated in terms of section
54(4) of the Minerals and Petroleum
Resources Development Act 28 of 2002 (‘the MPRDA’) has
been concluded; and
[30.2] whether Vandabyte
is entitled to access Dunbar farm to execute its mining right before
whatever compensation has been either
agreed to or determined, has
been paid to Beestepan.
[31]
To be sure, these two basic issues raise several sub-questions
concerning the interpretation
of section 54 of the MPRDA and the
nature and extent of the entitlements that arise for its holder from
a mining right. But these
must be determined only in aid of
determining the two main issues above.
[32]
What is not before this court for determination is in the first place
the quantum of any compensation
Beestepan is entitled to; and
secondly for which items of loss, potential in the longer term or
imminent now, Beestepan is entitled
to claim. These are issues that
stood to be determined in the arbitration the parties have agreed to
subject themselves to and
as a result of which an award was delivered
on 1 October 2025, not by this Court.
The
interlocutory application
[33]
Beestepan’s interlocutory application comprises three
substantive prayers. First, Beestepan
seeks leave to file a
supplementary affidavit. Second, Beestepan wishes to join the
Minister of Minerals and Energy (‘the
Minister’) as
party, due to a supposed interest in the additional relief Beestepan
seeks to introduce through the amendment
of its notice of motion,
concerning Vandabyte’s rehabilitation duties. Third, Beestepan
seeks the amendment of its notice
of motion in the main application,
through addition of several prayers directed at itself and the
Minister concerning Vandabyte’s
rehabilitation duties. Below I
address each of these three aspects of the interlocutory application
in turn.
The
supplementary affidavit
[34]
Ordinarily in motion proceedings only three sets of affidavits are
allowed: a founding, answering
and replying affidavit. However, in
terms of Uniform Rule 6(5)(e), a court may, in its discretion, allow
further affidavits. Further
affidavits will ordinarily be allowed
only upon application for leave to the court and whether to grant
such leave is in the discretion
of the court. This discretion must be
exercised judiciously, in light of all the relevant facts
[3]
but on the understanding that leave will be granted only in
exceptional circumstances.
[4]
[35]
The following factors may play a role in the exercise of the court’s
discretion:
[5]
-
The reason the evidence was not produced earlier.
-
The materiality of the evidence.
-
The possibility that it may have been filed to ‘relieve the
pinch of the shoe’.
-
The balance of prejudice if the application is refused or granted.
-
The stage of the litigation.
-
The possibility of an appropriate cost order to address the late
filing.
-
The need for finality in judicial proceedings.
-
The appropriateness of visiting attorneys’ faults upon the
heads
of their client.
Of
course, not all these factors will be relevant to every case –
below I address only those that indeed clearly relate to
this one.
[36]
The purpose of the supplementary affidavit Beestepan seeks now to
have admitted is twofold. First,
it serves as a supplementary answer
to Vandabyte's counter application. Second, it founds the remainder
of the interlocutory application
– the prayers to join the
Minister and to amend the main application through adding additional
relief. On both these counts
the affidavit contains evidence
concerning the extent of Vandabyte’s planned mining operations
and Vandabyte’s compliance
and capacity in future to comply
with its statutory obligations to rehabilitate Dunbar farm once
mining on it has been concluded.
This evidence relates to what on
Beestepan’s version is the liability that it as owner of Dunbar
farm will incur for rehabilitation
should Vandabyte not comply with
its rehabilitation obligations.
[37]
Beestepan submits that the reason for it providing this evidence only
at the late stage that
it did is likewise twofold. First, it avers
that when it launched the main application it did not have insight
into Vandabyte’s
Environmental Impact Assessment (EIA) and its
Environmental Management Programme (EMP). It also did not yet have
available its
own expert report on the adequacy of Vandabyte’s
rehabilitation plans nor its own statement of claim (SOC) in the
arbitration
proceedings that it later agreed to. Because all of these
things on Beestepan’s version are relevant to the main
application,
once it did become available at a later stage it had to
be placed before court.
[38]
Second, Beestepan avers that, prior to it launching the main
application, Vandabyte had throughout
indicated that it wished to buy
Dunbar farm, so that the issue in dispute between them was only the
appropriate purchase price.
However, once the main application had
been launched, Vandabyte made what Beestepan calls an ‘about-turn’,
no longer
willing to acquire Dunbar farm but only willing to
negotiate about compensation. It was only then that Beestepan, on its
version,
realised that its potential loss resulting from the mining
could also include a possible liability for the failure of Vandabyte
properly to rehabilitate Dunbar farm; and it was only then that it
realised that the evidence concerning that potential liability
was
relevant to the main application and must be placed before court.
[39]
Neither of these two reasons hold water. In its affidavit in
opposition to the interlocutory
application Vandabyte through its
deponent avers that Beestepan ‘had sight’ of the EIA and
the EMP long before it had
even started preparing, let alone
finalising and launching its main application. It shows with
supporting documentary evidence,
that these documents were provided
to Beestepan in draft form on 16 October 2019 and again on 12
November 2021 (to both one of
Beestepan’s directors, a Mr
Kane-Berman and its lawyers, as now Webber Wentzel Inc). When
Vandabyte’s EIA was approved
on 15 September 2022 and its
Integrated Environmental Authorisation (EA) granted on the same date,
Beestepan was likewise notified,
including of its right of appeal
against those decisions.
[40]
Against Beestepan’s bare averment that it had not had sight of
the EIA or the EMP prior
to launching its main application these
detailed and documented denials of Vandabyte’s version must
prevail, not only because
this is indicated in terms of the
Plascon
Evans
rule
[6]
(with Vandabyte’s
version that of the respondent) but also because Vandabyte’s
version is clearly documented while
Beestepan’s is simply
asserted.
[41]
Given that it had these documents available before it started
preparing its main application,
Beestepan has only itself to blame
for its failure to obtain an expert opinion of its own concerning the
adequacy of Vandabyte’s
rehabilitation plans at an earlier
stage. It was not prevented from obtaining its own expert opinion
earlier and presenting it
to this Court earlier – it either
decided not to do so itself or neglected to do so when it could have.
[42]
It is unclear why the fact that Beestepan did not have its own SOC in
the arbitration proceedings
at its disposal when it launched its main
application is a reason motivating admission of a supplementary
affidavit containing
references to that SOC now. The reasoning
concerning this seems entirely circular – Beestepan offers its
wish to have this
evidence admitted as a reason for its submission.
[43]
Beestepan’s averment that Vandabyte surprised it with a sudden
‘about-turn’
to compensation instead of purchasing Dunbar
farm after Beestepan had already launched its main application
doesn’t accord
with the common cause facts. The last time that
purchasing Dunbar farm was still in issue between the parties was on
12 February
2024, when they were supposed to meet to compare and
discuss their respective valuations of Dunbar farm. After this
meeting failed
to take place because the two valuations differed too
dramatically, the dispute turned into one about compensation more
broadly.
[44]
On 13 February 2024 Vandabyte informed Beestepan in writing that,
because they had proven unable
to agree on an amount of compensation,
it would refer the determination of
compensation
to
arbitration or a competent court in terms of section 54(4) of the
MPRDA. Every interaction between the parties after that referred
explicitly to compensation rather than purchase of Dunbar farm. This
culminated in Beestepan launching its main application on
22 February
2024. Tellingly, in its notice of motion it too refers to
compensation rather than an appropriate purchase price for
Dunbar
Farm. In sum, it stretches credulity that Beestepan did not know
before it launched its main application that the dispute
between the
parties was no longer about settling on an appropriate purchase
price, but more broadly about compensation for loss
occasioned by
mining.
[45]
Beestepan also does not meet the requirement concerning the degree of
materiality of the evidence
it seeks to place before this Court
through its supplementary affidavit. In
Porterstraat
69 Eiendomme (Pty) Ltd v PA Venter Worcester (Pty)
[7]
Davis J made it clear that at issue here is not simply relevance in
general, but the question of what bearing the new evidence
at issue
would have on the outcome of the application concerned. If the new
evidence has a ‘significant bearing on the outcome
of the …
application’
[8]
then that
is a strong indication in favour of its admission.
[46]
Mr Franklin SC submitted on behalf of Beestepan that the evidence in
the supplementary affidavit
should be admitted as it is relevant to
determining the main application and specifically the balance of
convenience, irreparable
harm and interest of justice aspects for the
interdict.
[47]
The more than 300 pages of evidence pertaining to the extent of
Vandabyte’s planned mining
on Dunbar Farm and the potential
liability for deficient rehabilitation arising from that for
Beestepan contained in the supplementary
affidavit certainly is
relevant in general terms to the determination of the nature, scope
and extent of the loss that Vandabyte’s
mining could cause
Beestepan, and in that way to determination of the compensation to be
paid Beestepan.
[48]
But it is at best tangentially relevant and certainly not material to
the main application. What
is at issue in the determination of the
balance of convenience, irreparable harm and interest of justice in
the main application
is the extent to which Beestepan’s
capacity to recoup any losses it may suffer as a result of
Vandabyte’s mining will
be affected should the mining be
allowed to commence before the nature and quantum of loss (and so
compensation) has been determined.
What should be before this court
concerning loss and compensation to determine that issue, is at best
for Beestepan an indication
of the different kinds or items of loss
that are likely to arise for it from Vandabyte’s mining. The
reams of evidence in
the supplementary affidavit concerning the scope
and size of Beestepan’s potential liability for Vandabyte’s
potential
failure properly to rehabilitate Dunbar farm post-mining
need not.
[49]
In this matter the most important consideration determining
admissibility of the supplementary
affidavit is the stage of the
litigation at which it was introduced. The interlocutory application
containing the supplementary
affidavit was launched on 23 December
2024, slightly more than 10 months after the main application.
[50]
The interlocutory application not only had the effect that Vandabyte
had to file several additional
affidavits of its own to answer to the
supplementary affidavit (something that can of course be remedied
with an appropriate order
as to costs). It also caused Basson J at
the originally allocated hearing date to postpone the matter to place
it on the special
motions roll for 14 and 15 May 2025, to accommodate
the additional submissions required by the more than 300 pages of
additional
evidence. Given that this matter, originally prosecuted by
both parties as urgent, despite the fact that it was since moved by
agreement to the ordinary roll, remains manifestly time-sensitive for
Vandabyte, this delay caused by the attempt to admit the
supplementary affidavit is significant.
[51]
More importantly, by the time Beestepan sought to introduce the
supplementary affidavit through
the interlocutory application the
parties had long since agreed to refer the question of the scope and
quantum of compensation
due Beestepan to arbitration. Indeed,
Beestepan's statement of claim (that is of course referred to in the
supplementary affidavit)
had already been finalised and in general
the issues and evidence that would be subject to the arbitration had
been agreed. This
places this court in an invidious position: if the
supplementary affidavit is to be admitted, I will be required to
consider and
evaluate evidence that at the same time is being
considered and evaluated by the appointed arbitrator and that, in the
event were
eventually decided by the arbitrator before this judgment
was handed down, on 1 October 2025.
[52]
This cannot be countenanced. It is in part to avoid this very problem
– ‘a situation
where different [tribunals] pronounce on
the same issue with the risk that they may reach differing
conclusions’
[9]
–
that in general the same parties, in terms of the doctrine of
lis
alibi pendens
,
are not allowed to litigate the same issues and evidence at the same
time in two or more different fora.
[53]
Although a plea of
lis pendens
was not raised and would not
apply in this matter, it would be imprudent for this court by
admitting the supplementary affidavit
to put itself in a position
where it might make findings of fact and draw conclusions from facts
that may conflict with the findings
made and conclusions drawn by the
arbitrator about the very same facts. For this and the other two
reasons set out above, taken
together but also each on its own, the
leave sought to admit the supplementary affidavit cannot be granted.
The
amendment of the notice of motion
[54]
Beestepan applies to amend its notice of motion in the main
application through insertion of
the following prayers:
2A The Applicant is
directed to submit all information relevant to the Respondent's
rehabilitation obligations on the Remaining
Extent of Portion 2 of
the farm Dunbar No 189 Registration Division /.S. Mpumalanga,
measuring 637,5316 Hectares, held by Deed
of Transfer T16868/2016
(“the Property”) to the Department of Mineral Resources
and Energy.
2B The
Department of Mineral Resources and Energy is permitted to call for
additional information from the Applicant and/or
the Respondent
concerning the Respondent's rehabilitation obligations on the
Property.
2C The Minister of
Mineral and Petroleum Resources, responsible for mineral resources is
directed to consider, under section 47
of the Mineral and Petroleum
Resources Development Act No 28 of 2002 (“MPDRA”),
whether the Respondent has submitted
inaccurate, false, fraudulent,
incorrect or misleading information for the purposes of the
application or in connection with any
matter required to be submitted
under the MPDRA concerning the Respondent's Mining Right on the
Property and whether the Minister
should cancel or suspend the Mining
right.
2D The Minister of
Mineral and Petroleum Resources, responsible for mineral resources is
permitted, in his discretion, and after
having considered the
information provided by the Applicant and called for by the
Department of Mineral Resources and Energy, to
direct that the
Respondent's environmental management programme, including the
Respondent’s financial provision to the Department
of Mineral
Resources and Energy according to the requirements of Section 24PA of
the National Environmental Management Act No 107
of 1998 (“NEMA”)
concerning the Property, be adjusted in such a way as the Minister or
the MEG may require.
2E. The Minister of
Mineral and Petroleum Resources, responsible for mineral resources is
permitted, in his discretion, to require
that the Respondent make
financial provisions to the Department of Mineral Resources and
Energy according to the provisions of
Section 24PA of NEMA read with
the Financial Provision Regulations, 2015, promulgated in terms of
NEMA, to the reasonable satisfaction
of the claimant, for the costs
to remedy the environmental degradation caused by the Respondent's
proposed opencast mining activities
on the Property, in the aggregate
of- -
2E(i) The potential
rehabilitation liability for Opencast 1, being R473 860 647, minus
the Respondent's estimation and guarantee
of R13 330 768.07 (Exel.
VAT), which equals R460 829 879 plus VAT,
alternatively
an
amount to be determined by the Department of Mineral Resources and
Energy; and
2E(ii) The potential
rehabilitation liability for Opencast 2 and other intended mining
activities on the remainder of the Property
in the amount of R473 860
647 plus VAT, or such other amount which the Applicant will quantify
upon receipt of the Respondent's
mining plan regarding Opencast 2 and
other intended mining activities on the remainder of the Property,
alternatively
an amount to be determined by the Department of
Mineral Resources and Energy."
[55]
If the opposing party does not agree to it, amendment of a notice of
motion will usually be permitted
upon it being applied for to court,
‘unless it is made
mala
fide
or
would cause prejudice to the other party which cannot be compensated
for by an order for costs or by some other suitable order
such as a
postponement’.
[10]
[56]
Mr Wickins SC for Vandabyte suggested both in written heads of
argument and during the hearing
before me that Beestepan had brought
its interlocutory application, including the application to amend the
notice of motion
mala fide
, with the intention to delay and
frustrate the due prosecution of the main and counter applications.
Although, as found above it
is difficult to discern what reason other
than that Beestepan had for launching the interlocutory application
there is not enough
before me to conclude that the amendment of the
notice of motion is indeed motivated by such bad faith.
[57]
Nonetheless, the amendment sought cannot be permitted because in at
least two important ways
it causes prejudice that can be remedied
neither by an appropriate order as to costs nor by a postponement,
nor by any other apparent
means.
[58]
In
Imperial
Bank Ltd v Barnard and Others NNO
Mpati P provided as one example of an instance where an amendment
would cause undue prejudice, cases where the amendment ‘has
the
effect of introducing a new cause of action’.
[11]
For the amendment to be permitted it must relate to substantially the
same cause of action as the main application, in the sense
that it is
‘recognisable or identifiable’ in the original cause of
action and goes no further than clarifying or correcting
the previous
pleading in which the original cause of action is set out.
[12]
[59]
The cause of action of the main application is what on Beestepan’s
version is its statutory
right in terms of section 54 of the MPRDA to
deny Vandabyte access to Dunbar farm to commence mining until
compensation that may
be due it has been agreed or determined (and
paid) and a threatening breach of that right through Vandabyte’s
intention to
indeed enter Dunbar farm and start mining. The main
application is an application for a prohibitory interdict that would
prevent
such breach of that right.
[60]
Although somewhat difficult to make sense of (more on this below),
the amendment, apart from
prayer 2A in which Beestepan seeks relief
against itself, comprises an application for several declaratory
orders concerning the
Minister’s powers related to Vandabyte’s
rehabilitation duties and what appears to be an order directing the
Minister
to exercise certain of his statutory powers and to exercise
them in a certain way. The orders sought all relate to the validity
and sufficiency of Vandabyte’s undertakings concerning
rehabilitation of the land on which it seeks to mine, and the
Department's
and Minister's oversight functions and powers concerning
those.
[61]
As such the amendment is not a clarification, amplification or
correction of the main application,
substantially related to the
cause of action in the main application. It is instead, as ably
submitted by Mr Wickens SC for Vandabyte,
an entirely new and
distinct application with a new cause of action, albeit difficult to
discern: provisions of the MPRDA other
than section 54 and of related
environmental legislation that impose rehabilitation duties on
Vandabyte and the perceived danger
that the provision Vandabyte made
for rehabilitation is somehow inadequate and might lead to liability
and loss for Beestepan in
the future. It should have been brought
separately, not as an amendment to the existing main application.
[62]
Beestepan’s amendment cannot be permitted also for a second
reason: all five proposed prayers
are bad in law and will be
excipiable should they be allowed. In the first prayer – 2A –
Beestepan asks this court
to direct it to provide certain information
to the Minister. That is, it seeks directory relief against itself.
No more needs be
said.
[63]
Prayers 2B, D and E are alike. They are all prayers for what look
like declaratory orders, that
the Department and/or the Minister is
‘permitted’ to do certain things. These prayers all three
face the following
intractable bind: A public entity such as the
Department or the Minister can only exercise those powers that are
explicitly or
by necessary implication conferred on it by
legislation. If legislation does not so confer authority on the
Department to ‘call
for additional information from the
Applicant and/or the Respondent concerning the Respondent's
rehabilitation obligations on the
Property’, or on the Minister
to ‘direct that the Respondent's environmental management
programme be adjusted’
and to ‘require that the
Respondent make financial provisions to the Department of Mineral
Resources and Energy according
to the provisions of Section 24PA of
NEMA read with the Financial Provision Regulations, 2015, promulgated
in terms of NEMA, to
the reasonable satisfaction of the claimant, for
the costs to remedy the environmental degradation caused by the
Respondent's proposed
opencast mining activities on the Property’
then they do not have that authority and this court cannot through
its orders
confer that authority on them. But if legislation does in
fact confer those powers on them, then these prayers are wholly
superfluous,
and this court should not entertain relief that has no
practical purpose. Either way, if permitted, they will certainly be
excipiable.
[64]
Likewise prayer 2C. In prayer 2C, Beestepan seeks an order directing
the Minister to exercise
its statutory power in terms of section 47
of the MPRDA. There is a particular remedy in our administrative law
through which one
obtains an order directing an administrator to
exercise a statutory power. Under the common law it used to be called
an application
for a mandamus. Currently it is an application for the
review of the administrator's failure or refusal to exercise the
relevant
power, in terms of section 6(2)(g) of the Promotion of
Administrative Justice Act 3 of 2000 (‘the PAJA').
[65]
Both at common law and under the PAJA such an application to direct
the exercise of a statutory
power must follow a particular process
and be presented in a particular form. Apart from the fact that this
remedy is available
only when an administrator was under a duty to
exercise the power and then failed to do so within a reasonable time,
currently
it can only be accessed through the process for the review
of an administrative action as prescribed in the PAJA and in terms of
Uniform Rule 53. None of these processes and requirements have been
followed or complied with concerning prayer 2C. As such, it
is also
legally incompetent and if admitted, would certainly be excipiable.
[66]
In light of the above, this is one of those exceptional cases where
the amendment of the notice
of motion applied for cannot be
permitted.
The
Minister's joinder
[67]
A party may be joined to an existing application only if it has a
direct or substantial interest
in the relief sought, or alternatively
a legal interest. Clearly, the Minister has no interest in
Beestepan's main application,
which in fact does not concern the
Minister at all – Beestepan made no claim to the contrary.
[68]
Beestepan sought the Minister's joinder because of a perceived
interest in the amended prayers
for which admission was sought in the
interlocutory application. On the face of it, it does seem as if the
Minister is directly
implicated in several of the amended prayers
(prayer 2D is specifically directed at it) but I need not come to any
conclusion on
this. Given that I have already held above that the
amendment of the notice of motion of the main application is not
permitted,
any interest that the Minister may have had in this matter
had the amendment been permitted, falls away. Accordingly, also the
application for the joinder of the Minister must fail and the
interlocutory application in its entirety must be dismissed.
The
main and counter applications
[68]
The central issue in both the main and the counter application is the
same: access for Vandabyte
to Dunbar farm, to commence mining there.
Beestepan seeks orders that would prevent such access and
commencement until compensation
has been agreed or determined and
paid; Vandabyte with its counter application seeks orders that such
access and commencement must
be allowed forthwith, despite the
arbitration to determine compensation still being pending.
[69]
The two applications in this sense are two sides of the same coin.
Dismissal of the main application
would inevitably mean that
Vandabyte would be allowed to enter onto Dunbar farm and commence
mining. Grant of the main application
in turn would inevitably mean
that the counter application fails. Moreover, the issues that arise
in both applications are generally
the same. In this light it would
make little sense to address the two applications separately.
Instead, I proceed below to consider
and decide the issues for both
applications together. I am aided in adopting this approach by the
fact that concerning the issues
raised for both applications, the
salient facts are mostly common cause, so that the application of
Plascon
Evans
[13]
presents no problems.
[70]
One preliminary issue must be disposed of first. Beestepan brings its
main application as one
for an interim rather than a final interdict,
on grounds that, should it be granted, the interdict sought will only
be in place
pending agreement or determination, and payment of
compensation. Vandabyte disputes this characterisation, submitting
instead that
the interdict applied for is final. Mr Wickens pointed
out that what renders an interdict final rather than interim in
nature,
is not the period for which it will apply if granted, so that
an interdict that applies only until some other intervening fact
occurs at a later stage (such as here) will for that reason be
interim rather than final. Instead, an interdict is final if it
determines the rights of the parties finally, for whatever period
those rights once determined would then apply. An interim interdict
by contrast is one that determines the rights of the parties in the
interim until they may be determined finally in a further proceeding.
As much was held in
Pikoli
v President of the Republic of South Africa
[14]
where Du Plessis J described it as follows:
[An] interim interdict
does not involve a final determination of the parties’ rights
and it does not affect such final determination.
When considering
whether to grant or refuse an interim interdict, the court seeks to
protect the integrity of the proceedings in
the main case.
[72]
With this application, although the interdict prohibits Vandabyte’s
entry and commencement
of mining for an interim period (only until
such time as compensation has been agreed or determined, and paid),
were the interdict
to be granted, Beestepan’s right to exclude
would be determined finally, countering Vandabyte’s right of
entry equally
finally. The interdict applied for is accordingly
final.
[73]
I agree with this characterisation: The interdict Beestepan seeks is
indeed final. Nonetheless,
as becomes clear below, my conclusions
remain the same whether I apply the more stringent requirements for
final or the more lenient
ones for interim relief.
[74]
The requirements for a final interdict are a) a clear right; b) an
injury actually being committed
or reasonably apprehended; and c) the
absence of an adequate alternative remedy.
[15]
I consider each of these requirements on the facts of this matter
below.
A
clear right
[75]
The clear right that an applicant relies on in an application for a
final interdict must both
be established as a matter of law and
proven indeed to accrue to the applicant on the evidence, on a
balance of probabilities.
[16]
[76]
The right that Beestepan asserts for purposes of this first leg of
the interdict enquiry is its
right as owner to deny Vandabyte access
to Dunbar farm to commence mining until such time that compensation
for the injury Vandabyte’s
mining activity on Dunbar farm may
cause Beestepan has been either determined or agreed and has been
paid. It grounds this right
in section 54 of the MPRDA, which it says
creates a procedure for determining or agreeing to such compensation,
that the Constitutional
Court in
Maledu
v Itereleng Bakgatla Mineral Resources
[17]
held must be exhausted before a holder of a mining right such as
Vandabyte may gain access to the land to which that mining right
applies and commence mining. It proposes that the section 54 process
is only exhausted once compensation has either been agreed
or
determined and paid (which on the facts of this case for it means
once the arbitration has been finally concluded).
[77]
The right that Vandabyte relies on for its counter application is its
right to execute its mining
right by entering onto land to which it
applies and commencing mining, once that right has been granted and
after it has given
the owner or lawful occupier of the land to which
its right applies 21 days advance notice of its intention so to do.
It grounds
this right in section 5(3) read with 5A(c) of the MPRDA.
[78]
Whether either of these rights exist in law depends on the proper
understanding of the relationship
between section 54 on the one hand,
and section 5(3) read with 5A(c) of the MPRDA. That relationship was
decided by the Constitutional
Court in
Maledu
, a judgment that
Beestepan and Vandabyte understand differently. This means that the
existence of either of these (mutually exclusive)
rights depends on
the interpretation this court affords the judgment in
Maledu
.
[79]
Section 54 of the MPRDA determines the following:
54. Compensation
payable under certain circumstances
(1)
The holder of a reconnaissance permission, prospecting right, mining
right or mining permit
must notify the relevant Regional Manager if
that holder is prevented from commencing or conducting any
reconnaissance, prospecting
or mining operations because the owner or
the lawful occupier of the land in question-
(a)
refuses to allow such holder to enter the land;
(b)
places unreasonable demands in return for access to the land; or
(c)
cannot be found in order to apply for access.
(2)
The Regional Manager must, within 14 days from the date of the notice
referred to in subsection
(1)-
(a)
call upon the owner or lawful occupier of the land to make
representations regarding the
issues raised by the holder of the
reconnaissance permission, prospecting right, mining right or mining
permit;
(b)
inform that owner or occupier of the rights of the holder of a right,
permit or permission
in terms of this Act;
(c)
set out the provisions of this Act which such owner or occupier is
contravening; and
(d)
inform that owner or occupier of the steps which may be taken, should
he or she persist
in contravening the provisions.
(3)
If the Regional Manager, after having considered the issues raised by
the holder under subsection
(1) and any written representations by
the owner or the lawful occupier of the land, concludes that the
owner or occupier has suffered
or is likely to suffer loss or damage
as a result of the reconnaissance, prospecting or mining operations,
he or she must request
the parties concerned to endeavor to reach an
agreement for the payment of compensation for such loss or damage.
(4)
If the parties fail to reach an agreement, compensation must be
determined by arbitration
in accordance with the Arbitration Act,
1965 (Act No. 42 of 1965), or by a competent court.
(5)
If the Regional Manager, having considered the issues raised by the
holder under subsection
(1) and any representations by the owner or
occupier of land and any written recommendation by the Regional
Mining Development
and Environmental Committee, concludes that any
further negotiation may detrimentally affect the objects of this Act
referred to
in section 2(c), (d), (f) or (g), the Regional Manager
may recommend to the Minister that such land be expropriated in terms
of
section 55.
(6)
If the Regional Manager determines that the failure of the parties to
reach an agreement
or to resolve the dispute is due to the fault of
the holder of the reconnaissance permission, prospecting right,
mining right or
mining permit, the Regional Manager may in writing
prohibit such holder from commencing or continuing with prospecting
or mining
operations on the land in question until such time as the
dispute has been resolved by arbitration or by a competent court.
(7)
The owner or lawful occupier of land on which reconnaissance,
prospecting or mining operations
will be conducted must notify the
relevant Regional Manager if that owner or occupier has suffered or
is likely to suffer any loss
or damage as a result of the prospecting
or mining operation, in which case this section applies with the
changes required by the
context.
[80]
The relevant parts of sections 5(3) and 5A(c) in turn read as
follows:
5. Legal nature of
prospecting right, mining right, exploration right or production
right, and rights of holders thereof
…
(3)
Subject to this Act, any holder of a prospecting right, a mining
right, exploration right
or production right may-
(a)
enter the land to which such right relates together with his or her
employees, and bring
onto that land any plant, machinery or equipment
and build, construct or lay down any surface, underground or under
sea infrastructure
which may be required for the purpose of
prospecting, mining, exploration or production, as the case may be;
(b)
prospect, mine, explore or produce, as the case may be, for his or
her own account on or
under that land for the mineral or petroleum
for which such right has been granted
…
…
(e) carry out any other
activity incidental to prospecting, mining, exploration or production
operations, which activity does not
contravene the provisions of this
Act.
5A. Prohibition
relating to illegal act
No person may prospect
for or remove, mine, conduct technical co-operation operations,
reconnaissance operations, explore for and
produce any mineral or
petroleum or commence with any work incidental thereto on any area
without—
…
(c)
giving the landowner or lawful occupier of the land in question at
least 21 days written
notice.
[80]
The interplay of these sections and the manner in which they provide
resolution to the tensions
between the rights of mining right holders
and the holders of surface rights to land to which mining rights
apply were authoritatively
described by the Constitutional Court in
Maledu
. In
Maledu
, the mining right holder had sought
to exercise its rights in terms of section 5(3) first by simply
unilaterally entering onto
the land in question and commencing
preparation for mining. Once it was stopped from doing this through a
successful application
for a spoliation order brought by the surface
right holders, it obtained an order for their eviction in the Limpopo
division of
this court. Crucially, it did so having given notice to
the Regional Manager that the surface rights holders were in its view
unreasonably
withholding access to the land and requesting its
intervention, but without having made any prior or resultant effort
to engage
with the surface right holders and obtain a resolution
through mediation or negotiation (apart from having given them the
required
notice in terms of section 5A(c)) or to take the section 54
mediation process through the Regional Manager any further.
[81]
In this light the issue before the Constitutional Court on appeal
against the eviction order
was whether a mining right holder that had
given notice in terms of section 5A(c), was by virtue of section 5(3)
entitled to evict
surface rights holders to commence mining despite
that the section 54 dispute resolution process had been initiated but
taken no
further and in the absence of any other attempts at good
faith negotiation with the surface rights holders about the impact
that
mining would have on their rights. Petse AJ (as he then was)
held as follows concerning this:
[S]ection 54 itself
provides for a speedy dispute resolution process that is premised on
parties reaching some sort of agreement
through mediation. It also
provides that if parties fail to reach an agreement, then they may
approach a court. It is unclear why,
pending the finalisation of
this
process
[emphasis added], a mining rights holder should be entitled to mine.
On the contrary, to allow them to do so will undermine the
purpose of
section 54 and the MPRDA: to strike a balance between the interests
of the mining right holder and the owner.
[18]
[82]
The crucial part of this passage for this case is the highlighted
phrase ‘this process’
and the question when it is that
this process has been finalised so that the mining right holder is
‘entitled to mine’.
Beestepan holds the position that
Vandabyte is precluded from commencing with mining until the amount
of compensation it is entitled
to has been either agreed or finally
determined and paid. It interprets the word ‘process’
used by Petse AJ to refer
not only to the engagement between the
parties under direction of the Regional Manager referred to in
sections 54(1), (2) and (3),
but to also include the arbitration or
litigation that may ensue should the parties be unable to reach
agreement on compensation
and the matter is referred to court or
arbitration in terms of section 54(4).
In casu
on this basis
its claim is that Vandabyte is precluded from mining until the
arbitration between them has been finally concluded.
[83]
In support of this interpretation Beestepan submits that the impact
of the award of a mining
right on surface rights to the land to which
it applies (such as its ownership of Dunbar farm) amounts to or is at
least akin to
expropriation, in that it causes the loss of those
rights in their entirety, or of central aspects of those rights.
Relying on
section 25 of the Constitution of the Republic of South
Africa, 1996 (‘the Constitution’), it then proceeds to
point
out that expropriation of any property right can only occur for
or against ‘just and equitable’ compensation. Such
compensation, it continues, must be finally determined before the
expropriation itself (the actual ‘taking’ of the right
in
question) occurs. It cites the matter of
Haffejee
NO and Others v Ethekwini Municipality and Others
[19]
in support of this final contention and also claims that
Maledu
supports it.
[20]
The ‘process’
that in terms of
Maledu
must be concluded before mining may commence must in this light, so
it concludes, include the arbitration or court process ensuing
from a
section 54(4) referral, as, unless it is agreed, compensation will
only finally be determined once those processes as applicable
in any
given case have been concluded.
[84]
Vandabyte in turn says that the ‘process’ Petse AJ
referred to in
Maledu
concludes sooner – on the facts of
this matter in its view, as soon as it transpires that the parties
are unable to reach
resolution of their dispute through the mediation
required in terms of sections 54(1) to (3). This means for it that
its section
5(3) right to enter onto Dunbar farm and commence mining
became operative the moment that it was clear that parties were not
going
to reach agreement and would have to resolve the issue of
compensation through arbitration, while Beestepan’s right to
deny
it access ceased at that same moment.
[85]
For Vandabyte, section 54 is intended to create an informal mediative
process, conducted under
the direction of the Regional Manager, to
allow the mining right and surface rights holders to resolve their
disputes (whether
about access, conflicting land use, compensation
for loss or damage caused by mining or whatever else arising from the
fact of
competing rights exercised concerning the same piece of land)
through negotiation aimed at reaching an agreement. It is only this
process that, while it is ongoing, suspends the mining right holder’s
entitlement to access and commence mining. When this
process fails to
result in a solution by agreement, it concludes. Section 54 then
provides two different and distinct alternative
processes through
which the issues causing the deadlock and conclusion of the mediation
process can be resolved (expropriation
in terms of section 54(5) and
referral of the determination of compensation to arbitration or a
competent court in terms of section
54(4)).
[86]
Against this background it is for Vandabyte clear that the process
that Petse AJ refers to in
Maledu
that suspends the exercise
of a mining right is only the mediation process shepherded by the
Regional Manager, as that is the process
that section 54 was created
for, with the other processes (arbitration, litigation,
expropriation, all extraneous to the MPRDA)
ensuing only when the
section 54 process has failed and so concluded. Once this process had
concluded through its failure, on Vandabytes
view it was free to
commence mining.
[87]
This question of until when the execution of a mining right remains
suspended by the operation
of the section 54 process has been
considered and decided by two different divisions of this court, in
Sydney
on
Vaal
Property Association v Theta Mining (Pty) Ltd
[21]
and
Stuart
Coal (Pty) Ltd v Regional Manager of the Department of Mineral
Resources and Energy, Mpumalanga & Another
,
[22]
judgments to which Messrs Woodrow SC (in heads of argument) and
Wickens SC (at the hearing) helpfully referred me.
[88]
In
Sydney on Vaal
, the applicant (‘the CPA’), a
communal property association and beneficial owner of land concerning
which the first
respondent (‘Theta’), a mining concern
held a mining right, sought
inter alia
an order prohibiting
Theta from entering onto its property and commencing mining there,
until the compensation to be paid to the
CPA for loss or damage
occasioned by Theta’s mining had been determined by agreement
in terms of section 54.
[89]
The CPA, to establish its clear right to exclude Theta from its land
pending determination of
compensation, relied squarely on the above
quoted passage from
Maledu
to argue that execution of Theta’s
mining right through entry onto the land and commencement of mining
was suspended until
compensation had been determined by agreement in
terms of section 54.
[90]
Williams J disagreed. To her,
Maledu
could be distinguished in that it did not concern a dispute about
compensation. Instead, on her reading
Maledu
was about ‘two competing rights in the context of evictions’,
the surface rights holders’ right of occupation
to the land for
which they had statutorily protected tenure rights and the mining
right holder’s statutory right to commence
mining, in a context
where these two rights could not co-exist, in the sense that ‘it
was not possible for the respondents
to undertake their mining
operations while the applicants remained in occupation of the
farm’.
[23]
For her, that
is,
Maledu
was purely about access and occupation and not about compensation. As
such, Petse AJ’s remark concerning access and commencement
of
mining being suspended until the section 54 process had been
concluded, were made on an understanding of that process as dealing
with disputes about access and commencement of mining. Those remarks
do not apply to disputes concerning compensation. On this
basis she
then proceeded to hold that the CPA does not have the right it
claims, so that the interdict application failed.
[91]
In
Stuart Coal
, the mining right holder sought an interdict
providing it with access to the land to which its mining right
applied and prohibiting
the landowner from preventing such access
and/or the commencement of mining. In this matter the parties had
utilised section 54
in an attempt to reach agreement about access and
compensation but were unable to reach agreement. This then prompted
the mining
right holder to approach the High Court for determination
of compensation. The landowner continued to refuse access on the
basis
that access and commencement of mining remain suspended until
compensation has been finally resolved, whether by agreement or
determination
in court as it is only then that the section 54 process
would be concluded in terms of
Maledu
.
[92]
Langa J rejected this interpretation of section 54 and
Maledu
,
as follows:
[24]
[29]
In my understanding section 54 only creates and facilitates a quick
dispute resolution process
led by the Regional Manager in respect of
compensation … The Regional Manager is in charge of this
process which, if it
fails, must be dealt with by arbitration or a
court. Consequently, once there is a deadlock, the involvement of the
Regional Manager
in the mediation process comes to an end and so does
the section 54 mediation process. In my view the section 54 process
would
have become exhausted at this stage.
[30]
… [O]nce the negotiations have failed, and the issue [is]
referred to arbitration or court,
it is out of the ambit of section
54. So, there is only one process provided for by section 54 which is
mediation and once it fails
the matter either goes to arbitration or
court.
[31]
… The argument that the section contemplates a final
determination of the compensation
payable first cannot be correct.
Nowhere in the section or the MPRDA is it provided that the
compensation must be determined first
before mining operations can
commence.
[93]
While I do not share the distinction that Williams J seeks to draw
between disputes about mutually
exclusive rights and access on the
one hand and those about compensation on the other to reach it, I
agree with the conclusion
in both these judgments, that section 54
does not contemplate nor is
Maledu
authority for the
proposition that access and commencement of mining is suspended until
compensation has finally been determined,
whether by agreement,
arbitration or court.
[94]
I do so for several reasons. First, the text of section 54 indicates
this. The only dispute resolution
process that is created anew for
purposes of the MPRDA in section 54 is the notification and mediation
process referred to in sections
54(1) to (3). The other processes
referred to in section 54(4) and (5) (arbitration; litigation;
expropriation) are pre-existing
processes regulated by other
legislation that resort may be had to only once the section 54
process has failed to achieve resolution.
[95]
Tellingly, also in support of the position that these other processes
when resorted to no longer
suspend exercise of the mining right,
section 54(6) determines that only in the exceptional case where the
Regional Manager determines
that the failure to resolve the dispute
about compensation is the fault of the mining right holder, the
Regional Manager may prohibit
the commencement of mining until
arbitration or a determination through a court has concluded.
Clearly, unless this determination
is made by the Regional Manager,
the suspension of execution of the mining right lifts as soon as the
matter is referred to arbitration
or a competent court. Section 54(6)
would be wholly superfluous were this otherwise.
[96]
Second, in my view the passage from
Maledu
that Beestepan relies on for its understanding that access and mining
are suspended until compensation has been finally determined,
in fact
means the opposite. The first sentence of that passage reads as
follows: ‘[S]ection 54 itself provides for a
speedy
dispute resolution process
[emphasis added] that is premised on parties reaching some sort of
agreement through mediation.’ Petse AJ then proceeds to
say
that ‘[i]t [section 54]
also
[emphasis added] provides that if parties fail to reach an agreement,
then they may approach a court.’ The ‘also’
in the
second sentence quite clearly indicates that Petse AJ regards the
arbitration and court process referred to in section 54(4)
as
separate from – ie not part of – the ‘speedy
dispute resolution process’ that section 54 ‘provides
for’, which is in turn the process that Petse AJ refers to when
he continues in the third sentence to say that ‘[I]t
is unclear
why, pending the finalisation of this process [emphasis added], a
mining rights holder should be entitled to mine.’
Here it
should also be kept in mind that in
Maledu
,
while the mediation process in terms of section 54(1) to (3) had been
initiated it had not proceeded any further than that, so
that it
cannot be said to have been concluded in any sense. Also, the
eviction application that the mining right holder had brought
was not
a referral of a compensation dispute to court in terms of section
54(4) – indeed, Petse AJ concludes that the eviction
application was an impermissible circumvention of the statutory
remedy provided to the mining rights holder in section 54.
[25]
All this indicates that Petse AJ did not contemplate the process that
he holds suspends access and commencement of mining to be
anything
more extensive than the mediation process provided for in sections
54(1) to (3).
[97]
But third, and most importantly, there is also a substantive reason
why the interpretation that
Beestepan advances cannot stand. There
seems to me to be a particular reason why it is necessary for access
and commencement of
mining to be suspended specifically while the
‘speedy dispute resolution process that is premised on parties
reaching some
sort of agreement through mediation’ that
sections 54(1) to (3) provides for is ongoing. A negotiation through
which parties
in conflict attempt to reach agreement to resolve the
dispute between them can only be a real and effective negotiation if
both
parties have some element of bargaining power. If one party
holds all the cards, then there can be no negotiation – the
other
then simply places itself at the mercy of the holder of all the
cards. In the context of section 54, the only real card that a
surface right holder has to play against the mining right holder’s
statutory entitlement to commence mining is its capacity
to withhold
access and prevent commencement of mining. Without that, it is at the
mercy of the mining right holder.
[98]
That Petse AJ regards the section 54 mediation process as a process
of mediated negotiation of
conflicting interests and rights where a
mutually beneficial agreement to the satisfaction of both parties is
the goal, is clear.
He describes the purpose of section 54 as ‘to
strike a balance between the interests of the mining right holder and
the owner’
[26]
and he
commences his judgment (citing the earlier Constitutional Court
judgment in
Bengwenyama
)
[27]
by reminding that all the consultative and mediative processes
prescribed by the MPRDA, including section 54 should be understood
as
intended to reach a mutually beneficial accommodation of the
respective interests and rights of the mining right holder and
surface right holder.
[28]
[99]
The section 54 mediation process can only be this if the surface
rights holder still has its
only card – withholding access –
to play. However, the same is not true once that process has
concluded and the determination
of compensation is referred to
arbitration or a court in terms of section 54(4). The processes of
arbitration or litigation in
court are not negotiations. Instead,
both are processes where parties place their dispute before an
independent, objective and
impartial adjudicator for determination on
the law and the facts. As no bargaining occurs there, no bargaining
chips are required.
In contrast to during the mediation process,
there is no substantive reason why a surface rights holder must still
be able to withhold
access and prevent commencement of mining once
the dispute has been referred to either arbitration or court.
Accordingly, I hold
that, while a mining right holder such as
Vandabyte’s section 5(3) right to enter onto land and commence
mining is indeed
suspended once the dispute resolution process
provided for in sections 54(1) to (3) has been initiated and is still
ongoing, that
suspension is lifted as soon as this process concludes,
and in particular no longer applies once the dispute has been
referred
to either arbitration or court for determination in terms of
section 54(6).
[100]
Beestepan’s attempt to base its counter-interpretation of
section 54 on section 25 of the Constitution and
the notion that just
and equitable compensation must be determined before expropriation
occurs has no wings. While it may well
be so that in case of
expropriation, compensation must always be determined before the
right in question is taken, Beestepan’s
obstacle here is that
Petse AJ held in
Maledu
that the award of a mining right, while clearly subtracting in
significant respects from the
dominium
of a landowner or holder of other surface rights does not constitute
expropriation of such rights.
[29]
This means that section 25 and the authority cited by Beestepan
doesn’t apply. For sake of completeness, concerning Beestepan’s
claim that in case of expropriation, compensation must not only be
determined beforehand, but also actually paid: Beestepan provides
no
authority for this proposition so that it too must be rejected.
[101]
To be sure, Beestepan might (and did) complain that it was not agreed
that the mediation process had failed so
that the compensation
dispute had to be referred to arbitration by virtue of section 54(4).
Even were this so (the facts show differently)
then there was a
remedy in section 54 at its disposal that it should have utilised at
the time: It could have approached the Regional
Manager and requested
it to exercise its power in terms of section 54(6) to determine that
access and commencement of mining would
remain suspended while the
arbitration unfolded as the failure of mediation was Vandabyte’s
fault. This section 54(6) remedy
is an important mechanism to prevent
mining right holders from referring matters to arbitration or court
prematurely, without having
made a good faith effort first to resolve
the dispute through mediation in terms of section 54(1) to (3). But
Beestepan did not
invoke it, so that it no longer has the right to
withhold access and prevent commencement of mining.
[102]
It follows that, given that in this matter the section 54(1) to (3)
process had concluded through failure and
arbitration had commenced,
Beestepan no longer has the clear (nor even the
prima facie
)
right it requires to found its interdict. On that basis, the main
application fails.
[103]
The converse is true for Vandabyte. There is no dispute that
Vandabyte possesses the clear right to enter onto
Dunbar farm and
commence mining, in terms of its mining right and by virtue of
section 5(3) of the MPRDA. While Beestepan was correct
that this
right was suspended while the section 54(1) to (3) mediation process
was ongoing, once it ended in failure and arbitration
ensued as
required by section 54(6) its clear right became operative and could
be exercised. It has established the clear right
it requires for its
interdict in the counter application.
[104]
While my conclusion that Beestepan has failed to establish either a
clear right or one that is
prima facie
, although open to some
doubt means that its main application has reached the end of the
road, Vandabyte’s has not. I continue
to consider the remaining
two requirements for a final interdict concerning the counter
application.
An
injury committed or reasonably apprehended
[105]
For an applicant for a final interdict to succeed it must show that
it has either actually suffered an injury
(in the form of irreparable
harm) or reasonably apprehends such an injury.
[30]
An injury in this context refers to a prejudicial invasion of or
interference with an applicant’s right.
[31]
[106]
Beestepan continuing to prevent Vandabyte from accessing Dunbar farm
and commencing mining operations undeniably
interferes with
Vandabyte’s established clear right in terms of section 5(3) of
the MPRDA – it completely prevents
the exercise of that right
and so renders it nugatory for the time being. It is also an unlawful
interference: As concluded above,
once the section 54(1) to (3)
mediation process had failed and ended, Beestepan no longer had any
right in law to withhold access
and prevent mining.
[107]
It can also not be gainsaid that this unlawful interference with
Vandabyte’s right causes it irreparable
prejudice. It is common
cause that Vandabyte’s mining right has been awarded it for a
finite period of 10 years only. Every
day that Vandabyte is unable to
proceed with mining is one day less of the potential life of the
mine, with a clear resultant loss
in overall profit. This loss is
irreversible (those days of potential production cannot be recouped)
and it has a range of spin-off
effects on Vandabyte’s
profitability as a business and its capacity to expand and maintain
itself. I conclude therefore that
Vandabyte has shown the injury
actually committed that is required of it.
[108]
For the sake of completeness: Had I concluded above that Beestepan
indeed possessed the
prima
facie
right it claims for purposes of what it styles as its interim
interdict, its application would have failed at this second hurdle,
in that it would not have been able to show the irreparable harm
reasonably apprehended that is required. While it is clear that
in
such case Beestepan’s right would have been imminently
threatened with invasion, Beestepan would not have been able to
show
that this invasion and the resultant prejudice is irreparable, as it
must be to found an interim interdict.
[32]
Beestepan, before it approached this court had at its disposal the
mediation process provided for in section 54(1) to (3) of the
MPRDA
through which to agree to compensation for any loss it may suffer and
thereafter has been by agreement engaged in the arbitration
with the
very purpose of determining the compensation it is due. These
processes were designed precisely to ensure that its harm
is indeed
repaired.
Absence
of an adequate alternative remedy
[107]
It remains to consider this last requirement for the award of a final
interdict in relation to Vandabyte’s
counter application. In
Hotz v
University of Cape Town
[33]
the Supreme Court of Appeal per Wallis JA held that an alternative
remedy, to be adequate and so to prevent the grant of an interdict,
must be a legal remedy (ie, one a court may grant) and must be one
that affords substantially the same relief and achieves substantially
the same purpose as the interdict sought would.
[34]
[108]
The only claim that Beestepan makes of a remedy alternative to the
interdict at Vandabyte’s disposal is
the rather circular one
that Vandabyte can continue to subject itself to the process that it
has been participating in for determination
of Beestepan’s
compensation and once that is concluded and compensation has been
determined, it will gain the access it seeks.
[109]
Patently, this, if it is a remedy at all, is not adequate in the
sense described by Wallis JA in
Hotz
. The purpose with which
Vandabyte applies for its interdict is nothing other than to obtain
the assistance of this court to order
Beestepan to allow it to
exercise its right of access and commencement of mining
while the
process to determine compensation is ongoing
. Simply to allow
that process to unfold to conclusion does the opposite of achieving
Vandabyte’s interdict’s purpose
– it subverts it.
Accordingly, I conclude that there is no adequate alternative remedy
at Vandabyte’s disposal.
[110]
As Vandabyte has succeeded in establishing a clear right, an injury
actually committed and the absence of an alternative
remedy, its
counter application succeeds and must be granted.
Costs
[111]
Above I have concluded that a) Beestepan’s interlocutory
application as a whole is dismissed; b) Beestepan’s
main
application is dismissed; and c) Vandabyte’s counter
application succeeds. What remains is to determine the issue of
costs.
[112]
Concerning the interlocutory application, I see no reason why costs
should not follow the result and that it should
not be awarded simply
on a party-to-party basis. I did during the hearing rule that the
third additional affidavit filed by Vandabyte
in response to the
interlocutory application is not admitted, but given that the
interlocutory application that gave rise to this
multiplication of
affidavits has failed, this ruling has no bearing on costs. While
some references were made in passing both in
the heads of argument
and at the hearing that Beestepan brought the interlocutory
application in bad faith, consciously to delay
proceedings further,
these were not seriously pursued so that I cannot find that any form
of punitive costs order at a higher scale
applies.
[113]
For the main application I likewise conclude that costs should follow
the result on the ordinary scale. While
it remains unclear to me why
it was necessary for Vandabyte to launch and persist with its counter
application rather than simply
to oppose Beestepan’s main
application I cannot conclude that it was unnecessary for it to do
so. Vandabyte’s success
there indicates that the unsuccessful
party, Beestepan should carry the costs for the counter application,
again on the ordinary
scale.
[114]
For all three applications the complexity and scope of the matter
warrants the briefing of two counsel and costs
for such counsel at
scale C.
Order
[115]
Accordingly, I order as follows:
1.
The applicant’s (‘Beestepan’s’) interlocutory
application
is dismissed with costs, which costs include that of two
counsel at scale C.
2.
Beestepan’s main application is dismissed, with costs, which
costs include
that of two counsel at scale C.
3.
The respondent’s (‘Vandabyte’s’) counter
application
is granted, with costs, which costs include that of two
counsel at scale C:
3.1
Access is granted to Vandabyte to the property described as Portion 2
of the Farm Dunbar
189 IS, within the magisterial district of Bethal,
Mpumalanga (‘the property’), for purposes of executing
Vandabyte’s
mining right, as contemplated by the Minerals and
Petroleum Resources Development Act 28 of 2002.
3.2
Beestepan, its representatives, employees and anyone associated with
it or acting upon its
instructions are interdicted from interfering
with and/or preventing and/or restricting in any manner, Vandabyte,
and its employees,
contractors, representatives and anyone involved
with or related to Vandabyte’s mining operations, to enter upon
the property
to establish and execute mining operations in terms of
Vandabyte’s mining right.
JFD
Brand
Acting
Judge of the High Court
Gauteng
Division, Pretoria
COUNSEL
FOR THE APPLICANT: A
Franklin SC
AJR Booysen
INSTRUCTED
BY:
Webber Wentzel Attorneys
COUNSEL
FOR THE RESPONDENT: G Wickins SC
I Oschman
INSTRUCTED
BY:
Malan Scholes Inc
DATE
OF THE HEARING:
14 and 15 May 2025
DATE
OF JUDGMENT:
14 November 2025
[1]
The Remaining Extent of Portion 2 of the farm Dunbar, No. 189
Registration Division I.S., Mpumalanga (‘Dunbar farm’).
[2]
In the event, the arbitration award was delivered on 1 October 2025.
[3]
Hano
Trading CC v JR 209 Investments (Pty) Ltd
2013 (1) SA 161
(SCA) at 165A-C.
[4]
Impala
Platinum Ltd v Monageng Mothiba N.O. and Others
(JR2567/13)
[2016] ZALCJHB 475 (10 June 2016 at para [4].
[5]
Porterstraat
69 Eiendomme (Pty) Ltd v PA Venter Worcester (Pty) Ltd
2000 (4) SA 598 (C).
[6]
Plascon-Evans
Paints (TVL) Ltd. v Van Riebeck Paints (Pty) Ltd
.
(53/84)
[1984] ZASCA 51
;
[1984] 2 All SA 366
(A);
1984 (3) SA 623
;
1984 (3) SA 620
(21 May 1984).
[7]
Porterstraat
69 Eiendomme (Pty) Ltd v PA Venter Worcester (Pty) Ltd
2000 (4) SA 598
(C) (Porterstraat 69 Eiendomme).
[8]
Porterstraat
69 Eiendomme
(above) at 617H-I.
[9]
Per Wallis JA in
Caesarstone
Sdot-Yam Ltd v The World of Marble and Granite CC
(741/12)
[2013] ZASCA 129
(26 September 2013) at para [2].
[10]
Four
Tower Investments (Pty) Ltd v Andre’s Motors
2005 (3) SA 39
(N) at para [15] (‘Four Tower Investments’)
cited with approval in
Imperial
Bank Ltd v Barnard and Others NNO
2013 (5) SA 612
(SCA) (‘Imperial Bank’) at para [8].
[11]
Imperial
Bank Ltd v Barnard and Others NNO
2013 (5) SA 612
(SCA) (‘
Imperial
Bank’
)
at para [8].
[12]
Neon
and Cold Cathode Illuminations (Pty) Ltd v Ephron
1978 (1) SA 463
(A) at 474A;
Sentrachem
Ltd v Prinsloo
1997 (2) SA 1
(A) at 15J-16D (the amendment must not amount to more
than a clarification (‘opklaring’) of the previous
pleading
in which the original cause of action is set out).
[13]
Plascon
Evans
(above).
[14]
2010 (1) SA 400
(GNP) (‘
Pikoli’
)
at 403I.
[15]
See for a recent statement of this well-settled set of requirements
Equistock
Properties 8 (Pty) Ltd and Another v Oosthuizen and Others
[2025] ZASCA 06
(‘
Equistock’
)
at para [17].
[16]
Equistock
(above) at para [17].
[17]
Maledu
and Others v Itereleng Bakgatla Mineral Resources (Pty) Limited and
Another
(CCT265/17)
[2018] ZACC 41
;
2019 (1) BCLR 53
(CC);
2019 (2) SA 1
(CC) (25 October 2018) (‘
Maledu’
).
[18]
Maledu
(above) at para [92].
[19]
Haffejee
NO and Others v Ethekwini Municipality and Others
2011 (6) SA 134
(CC) (‘
Haffejee’
)
at para [21]
[20]
Maledu
(above) at para [90] to [92].
[21]
Sydney
on Vaal Property Association v Theta Mining (Pty) Ltd
2020 JDR 0519 (NCK) (‘
Sydney
on Vaal’
).
[22]
Stuart
Coal (Pty) Ltd v Regional Manager of the Department of Mineral
Resources and Energy, Mpumalanga & Another
[23]
Sydney
on Vaal
(above) at para [23.4].
[24]
Stuart
Coal
(above) at para [29]
et
seq
.
[25]
Maledu
(above) at para [109].
[26]
Maledu
(above) at para [92].
[27]
Bengwenyama
Minerals (Pty) Ltd v Genorah Resources (Pty) Ltd
[2010] ZACC 26
;
2011 (4) SA 113
(CC);
2011 (3) BCLR 229
(CC) at para
63.
[28]
Maledu
(above) at para [78] to [81].
[29]
Maledu
(above) at para [103].
[30]
Equistock
(above) at para [17].
[31]
V&A
Waterfront Properties (Pty) Ltd and Another v Helicopter and Marine
Services (Pty) Ltd and Others
(392/2004)
[2005] ZASCA 87
;
[2006] 3 All SA 523
(SCA);
2006 (1) SA
252
(SCA) (26 September 2005) (‘
V&A
Waterfront’
)
at para [21].
[32]
Setlogelo
v Setlogelo
1914 AD 221.
[33]
Hotz
and Others v University of Cape Town
(730/2016)
[2016] ZASCA 159
;
[2016] 4 All SA 723
(SCA);
2017 (2) SA
485
(SCA) (20 October 2016) (‘
Hotz’
).
[34]
Hotz
(above) at para [36].
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