Case Law[2024] ZAGPPHC 750South Africa
Northern Coal v Minister of Mineral Resources and Energy and Others (2024-061972) [2024] ZAGPPHC 750 (24 July 2024)
High Court of South Africa (Gauteng Division, Pretoria)
24 July 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Northern Coal v Minister of Mineral Resources and Energy and Others (2024-061972) [2024] ZAGPPHC 750 (24 July 2024)
Northern Coal v Minister of Mineral Resources and Energy and Others (2024-061972) [2024] ZAGPPHC 750 (24 July 2024)
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sino date 24 July 2024
REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE
NO: 2024-061972
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
Date: 24 July 2024
In
the matter between:
NORTHERN
COAL
Applicant
and
MINISTER
OF MINERAL RESOURCES AND ENERGY
First
Respondent
THE
DIRECTOR GENERAL: DEPARTMENT OF MINERAL AND RESOURCES AND ENERGY
Second
Respondent
THE
REGIONAL MANAGER: MPUMALANGA PROVINCE, DEPARTMENT OF MINERAL
RESOURCES AND ENERGY
Third
Respondent
JAMENTS
(PTY) LTD
EMTHONJENI
INVESTMENT (PTY) LTD
Fourth
Respondent
Fifth
Respondent
JUDGMENT
DE
VOS AJ
[1]
Northern Coal mines coal. It has been mining coal on Farm Jagtlust in
Carolina,
Mpumalanga for years. Faced with the retrenchment of
hundreds of employees, Northern Coal sought to expand its mining
operations
by extending its mining area to include the neighbouring
farm, Farm Roetz. Farm Jagtlust and Farm Roetz are contiguous, and
Northern
Coal owns both farms.
[2]
The Minerals and Petroleum Resources Development Act 28 of 2002
(“MPRDA”)
specifically provides for the variation of a
mining right by extending the mining area. Section 102 permits the
variation of a
mining right “by extensions of the area covered
by it”. A section 102 variation requires consent from the first
respondent
(“the Minister”).
[3]
Northern Coal applied to the Minister, in terms of section 102, to
extend the
area of its mining right on the current mining area
(Jagtlust) to include the neighbouring farm (Roetz). The Minister
granted Northern
Coal consent to extend its mining area to include
the neighbouring farm ("section 102 consent"). Northern
Coal has been
mining on the neighbouring farm, keeping the
retrenchments at bay.
[4]
Parallel to this process, the fourth respondent (“Jaments")
applied
for a prospecting right on the neighbouring farm. Its
application was initially rejected because of the existing section
102 consent
application. Jaments then launched an internal appeal
against this rejection, which was successful. Jaments also requested
the
Minister to suspend Northern Coal’s section 102 consent.
[5]
On 24 May 2024, the Minister acceded to Jaments' application under
section 96
and suspended the consent for section 102 ("suspension
decision"). The effect of the suspension decision is that
Northern
Coal may no longer lawfully mine on the Farm Roetz. Northern
Coal seeks an urgent review of the suspension decision made by the
Minister. It relies on
among other things
sections 6 (2) (d),
(e)(iii), (e)(vi), (f)(ii), (h) of the Promotion of Administrative
Justice Act 3 of 2000 (“PAJA”).
[6]
The Minister has not filed any papers and did not appear at the
hearing. The
matter was heard shortly after the 2024 national
elections, during a time when the new government was still being
negotiated and
Ministers had not yet been appointed. The Court does
not know if this had a bearing on the Minister's absence during the
hearing.
[7]
Jaments opposes the relief. It supports the Minister's suspension
decision.
Jaments’ central case is that Northern Coal was, in
fact, seeking to consolidate the mining right (Jagtlust) with the
prospecting
right on the neighbouring farm (Roetz). However, as the
prospecting right on the neighbouring farm lapsed, the section 102
consent
was no longer valid, creating a gap for Jaments to apply for
the prospecting right over the neighbouring farm. Jaments’
opposition
is premised on the assumption that a prospecting right
over Farm Roetz had to be valid for the section 102 consent. From
Jaments’
perspective, the section 102 consent is subject to a
valid prospecting right over the neighbouring farm.
[8]
First, the Court must be satisfied that the matter is urgent.
Urgency
[9]
The applicant relies on commercial urgency. It relies on the fact
that the Farm
Jagtlust has reached the end of the life of mine, and
the applicant can only conduct mining operations on the Farm Roetz.
The effect
of the Suspension Decision is that the applicant can no
longer mine on the Farm Roetz or at all. The Suspension Decision
poses
“an existential threat” to Northern Coal. If the
matter is not urgently considered, Northern Coal will be forced to
go
into liquidation. Without its income from its mining operations,
Northern Coal cannot continue to shoulder the financial burden
of its
fixed expenses for R 5 million in salaries a month; contractual
penalties charged by contractors; fixed depreciation costs
of R 8
million per month; and complying its environmental and water use
authorisations.
[10]
On this basis, Northern Coal contended that the application meets the
requirements of commercial urgency
and, as it will essentially be
bankrupted in the absence of immediate relief – it will
not be afforded substantial
redress at a hearing in the ordinary
course.
[11]
Jaments opposes urgency on the basis that the facts leading to the
Minister's decision in May 2024
were on the cards in December 2023
and January 2024. As these were known to Northern Coal before the
decision was taken, Northern
Coal’s urgency is self-created.
[12]
The Court considers that the relief sought by Northern Coal is to
review the suspension decision. The
need for the application arises
solely due to the suspension decision. There was no basis to expect
Northern Coal to institute
a review of the Suspension Decision before
such a decision was taken. Northern Coal could not, in fact, or law,
bring such proceedings
any earlier. It is only now that the decision
has been made that any application to review the Suspension Decision
is ripe for
hearing. Before May 2024, there was no need to launch
these proceedings, as no cause of action existed.
[13]
The Court must consider if Northern Coal dragged its feet after the
suspension decision. The applicant
has set out the steps it took
after it was informed of the decision and how it approached the
matter as one of urgency. The Suspension
decision was taken on 24 May
2024 and transmitted to the applicant on 27 May 2024. On 5 June 2024,
Northern Coal launched this
urgent review application. The present
application was launched in less than 6 working days. The applicant
did not create urgency
or drag its feet when coming to Court.
[14]
The Court must be satisfied that Northern Coal cannot obtain
substantial redress in due course. In
addition to the financial
losses already considered, if shut down, Northern Coal cannot meet
its environmental duties of (i) monitoring
underground water seepage
and wastewater to ensure that it does not contaminate the local water
supply; and (ii) active dust suppression
on road, dumps and
stockpiles.
[15]
In addition, if no relief at this stage – Northern Coal will be
liquidated. This will have an
impact on its employees. Specifically,
315 of Northern Coal’s contractors’ employees; and 187
employees of Northern
Coal will lose their livelihoods.
[16]
If Northern Coal is liquidated, its mining rights, amended to include
the area of the Farm Roetz, will
lapse. Northern Coal has presented
facts that any internal appeal process will be rendered moot, and a
review of the ordinary course
will have been for nought. For the same
reason, Northern Coal submits it cannot wait for the internal appeal
process to complete,
as these processes typically take approximately
two years to conclude.
[17]
The Court
concludes that the facts of this case fall within the type of
commercial urgency contemplated in
Twentieth
Century Fox Film Corporation v Anthony Black Films (Pty) Ltd,
[1]
Northern Coal will not be afforded substantial redress at a hearing.
As it currently exists, Northern Coal will not be around at
a hearing
in due course.
[18]
On this basis, the Court rejects the submission that urgency was
self-created and concludes that the
matter is urgent, not only
because the applicant's commercial livelihood is at stake, the
potential job losses, but also because
of the environmental impact
that flows from the dispute.
Facts
[19]
On 31 March 2009, Northern Coal was granted a mining right over Farm
Jagtlust. In 2013, Northern Coal
purchased Farm Roetz, and in January
2020, it applied for consent, in terms of section 102 of the MPDRA,
to extend its mining area
to include Farm Roetz.
[20]
On 30 March 2021, Northern Coal lodged its application for renewal of
the Roetz Prospecting Right via
e-mail as the DMRE’s online
SAMRAD system was experiencing technical difficulties. On 31 March
2021, Northern Coal delivers
a hard copy of its application to renew
the Roetz prospecting right. Also, on 31 March 2021, Jaments
submitted an application for
a prospecting right over the Farm Roetz.
The Regional Manager accepts Northern Coal’s application and
rejects Jaments’
application.
[21]
The parties dispute whether the prospecting right over Farm Roetz
lapsed on 30 March 2021 because Northern
Coal failed to lodge the
renewal on time and online. However, this dispute only needs to be
resolved if the validity of a prospecting
right over Farm Roetz
affects the section 102 consent.
[22]
On 24 December 2021, Jaments lodged an internal appeal against the
Regional Manager's decision to reject
Jaments’ application for
a prospecting right over the Farm Roetz.
[23]
On 26 October 2023, the DMRE granted Northern Coal its environmental
authorisation to extend the mining
area to include the Farm Roetz. On
16 November 2023, the Director-General upheld Jaments’ internal
appeal against the Regional
Manager’s decision to reject its
application for a prospecting right. On 29 November 2023, the
Regional Manager accepted
Jaments' application for a prospecting
position right over the Farm Roetz.
[24]
On 14 December 2023, the Director-General granted consent in terms of
section 102 to amend/vary the
Jagtlust Mining Right to include the
Farm Roetz (the “Section 102 Consent”). On 10 January
2024, Northern Coal and
the Acting Regional Manager executed a
notarial deed of amendment to include the Farm Roetz in the mining
area of the Jagtlust
Mining Right.
[25]
On 29 February 2024, Jaments launched an internal appeal under
section 96(1) of the MPRDA against the
decision to grant the Section
102 Consent to Northern Coal (the "Section 102 Appeal"). As
part of the Section 102 Appeal,
Jaments sought to suspend the Section
102 Consent.
[26]
On 9 April 2024, Northern Coal launched an internal appeal against
the Director-General's decision
to uphold Jaments’ appeal
against the Regional Manager’s decision to reject its
application for a prospecting right
over the Farm Roetz. Thereafter,
Northern Coal filed its answering affidavit in the Section 102
Appeal, and Jaments filed its replying
affidavit in the Section 102
Appeal.
[27]
On 24 May 2024, the Minister decided to suspend the operation of the
Section 102 Consent, in terms
of Section 96(2) of the MPRDA, pending
the finalisation of the Section 102 Appeal.
[28]
On 27 May 2024, Moorosi Attorneys, on behalf of Jaments, sent the
suspension decision by e-mail to
Briel Inc, on behalf of Northern
Coal.
[29]
The facts show that Northern Coal's application for consent and
Jaments' application for a prospecting
right ran in parallel
processes. It also shows that while the section 102 application was
being considered, Jaments ran an internal
appeal concerning its
application for a prospecting right.
[30]
These background facts indicate that the section 102 consent
application took so long that the prospecting
right on the
neighbouring came close to lapsing. Believing it was about to lapse,
Northern Coal applied for its extension over
e-mail as the online
systems were not working. It did so out of an abundance of caution.
Jaments, believing it had lapsed, applied
for the prospecting right.
Jaments' application was rejected as there was an existing
application over the property. Jaments successfully
appealed that
rejection. While it sought to appeal the rejection, it also asked the
Minister to suspend section 102 consent.
Does
a section 102 consent hinge on a valid right over the neighbouring
farm?
[31]
The dispute between the parties is whether Northern Coal extended its
area of mining operations or
consolidated its mining right over its
existing mining area (Jagtlust) with a prospecting right (Roetz). The
case hinges on this
characterisation.
[32]
Northern Coal contends it extended a mining area. It did not require
the existence of a valid prospecting
right on the neighbouring farm.
Jaments contends that Northern Coal consolidated the mining right
with a prospecting right, in
which case the prospecting right over
the neighbouring farm would have to be extant. If Northern Coal's
characterisation is correct,
the validity of the prospecting right is
irrelevant. If Jaments is correct, then the validity of the
prospecting right is central.
[33]
Northern Coal’s position is that the MPRDA, whether under
section 102 or otherwise, does not
require that the holder of a right
also hold a right over the property it seeks to add to the mining
area of its existing right.
From this, Northern Coal's section 102
application (which led to the section 102 consent) takes precedent
over any subsequent application
lodged with the Department. A valid
prospecting right over the neighbouring property is irrelevant to the
Section 102 application.
[34]
Jament's position is that section 102 consent required an existent
prospecting right on the neighbouring
farm. As the prospecting right
on the neighbouring farm lapsed, Jaments could apply for it.
[35]
The Court has carefully considered the party's submissions in this
regard.
[36]
The starting point is section 102. Section 102 reads –
“
A mining right may
not be amended or varied (including by extension of the area covered
by it or by the additional of minerals or
a shares or seams,
mineralised bodies or strata, which are not at the time the subject
thereof) without the written consent of
the Minister.”
[37]
Section 102 does not require that the applicant hold an existing
right over the extended area when
extending a mining right, and there
is no such requirement elsewhere in the legislation. Jaments could
not refer me to any case
law or provisions for this requirement.
[38]
Section 102 does not require a valid right over the new area or a
consolidation of rights. However,
the section expressly refers to an
extension of a mining area. Northern Coal sought that, and the
Minister granted that consent.
[39]
The entire premise of Jament's case is that the prospecting right
over the neighbouring farm had lapsed,
and therefore, the section 102
consent was affected. The premise of this position is unclear. It is
so that the Department required,
whilst the prospecting right over
the neighbouring farm was extant, that it be consolidated under
section 11. That requirement
must fall away if the prospecting right
lapses. But even if not so, there is no basis to contend that
Northern Coal's section 102
consent, once granted, required an
existent prospecting right over the neighbouring farm.
[40]
It is unclear how the lapsing of the prospecting right impacts
Northern Coal's mining right over the
neighbouring farm. I see no
basis in the MPDRA, particularly in section 102, to support the
Minister's position.
[41]
The Court would have to read section 102 in language to the effect
that the consent is subject to the
existence of a valid right over
the new area to support Jament's interpretation. There is no language
in the text of section 102
to support Jaments’ read-in
requirement that the prospecting right be valid.
[42]
It appears to be nonsensical to subject the extension of a mining
right to a new area to the existence
of a valid existing mining right
over the new area. It would result in an irrational requirement. If
there is such a valid existing
right, that right either precludes the
extension or already permits the extension. Either way, there would
be no logical reason
to seek an extension.
[43]
The question before the Court is whether the Minister’s
decision to suspend the mining right
over the neighbouring farm to
permit Jaments to pursue its application for a prospecting right is
reviewable. I see no basis in
law to conclude that the section 102
consent required the existence of a prospecting right over the
neighbouring farm.
[44]
Jaments leans on language in the applications by Northern Coal that
referred to a consolidation of
rights. The odds stack equally, as
there are equal references to the consolidation of rights and the
extension of a mining area
in the various permissions sought from the
Department on the papers before the Court. However, whatever the
parties may have termed
the issue and whatever language various
consultants may have used during the applications, the Court must
consider the substance
of the application, the legislation and the
Minister’s section 102 consent decision.
[45]
Substantively,
Northern Coal sought to extend the area on which it could mine. The
Court must have regard to substance over form.
[2]
Substantively, it was a section 102 consent application –
whatever language may have been used. Even if Northern Coal
had
faltered in the format of some of its correspondence, it is clear
from the facts that what it sought was to farm over an extended
area
– onto the neighbouring farm. In substance, this is apparent
from the papers. Despite what is written on various documents,
Northern Coal applied in terms of section 102 for a variation of an
existing mining right.
[46]
Northern Coal did not seek to mine on Jagtlust and prospect on Roetz.
It sought, plainly, to extend
the area it is entitled to mine.
[47]
The legislation is clear, section 102 applies to a variation of the
area over which a mining right
applies. There is no requirement in
either section 22 (relating to applications for mining rights) or
section 102 of the MPRDA
that an applicant for a mining right or an
amendment/variation thereof must hold a prospecting right or any
other right or permit
over the property which it intends to mine
(i.e. the prospective mining area) before it may apply for or be
granted a mining right.
[48]
In
Rustenburg
Platinum Mines Limited and Another v The Regional Manager, Limpopo
Region, Department of Mineral Resources and Others
,
[3]
The Supreme Court of Appeal confirmed that a prospecting right is not
a prerequisite for a mining right. A prospecting right is
also not a
prerequisite for an application in terms of section 102, which seeks
to vary a mining right to include another property
in the mining area
of that right.
[49]
In addition, the Court weighs the text of section 102 and the
language of the actual section 102 consent,
which unambiguously
provides that Northern Coal is permitted to extend the area covered
by its mining right. The consequence of
such a substantive consent
was that Northern Coal had the right to mine on the Farm Roetz.
[50]
Nothing in the language of section 102 or the section 102 consent
supports Jaments’ interpretation
that the section 102 consent
was for the consolidation of a mining right and a prospecting right.
[51]
Of course, it would operate in Jaments' favour if this requirement is
read in, as that would introduce
a question of the validity of the
prospecting right and its application for the prospecting right.
However, as the Section 102
application and the Section 102 consent
did not hinge on a prospecting right's existence, the prospecting
right's validity is entirely
irrelevant to these proceedings.
[52]
The Court accepts Northern Coal’s submission that this dispute
is a red-herring due to Northern
Coal's existing application for
consent in terms of section 102, which long preceded the facts which
give rise to the dispute mentioned
above and which is, in fact,
dispositive thereof.
[53]
The Court concludes that section 102 of the MPRDA does not require
the consolidation of existing rights
to extend the area of a mining
right.
First
in time, first in right
[54]
Northern Coal submits that an application in terms of section 102 is
either an application for a mining
right or is akin to an application
for a mining right in substance and that the first-in-time principle
applies.
[55]
The Court considers that section 102 applies expressly to mining
rights. It provides for the extension
of a mining right – and
grants, it follows, a mining right. The Section 102 application
sought to incorporate the Farm Roetz
into the mining area of the
Jagtlust Mining Right. The definition of a “mining area”
in “relation to a mining
right, means the area on which the
extraction of any mineral has been authorised and for which that
right or permit is granted".
If the mining area is extended
under section 102, it grants a mining right over it.
[56]
In other words, if consent is granted to amend the mining area of the
Jagtlust Mining Right in terms
of section 102 of the MPRDA to include
the Farm Roetz, Northern Coal is after that entitled to mine on the
Farm Roetz in terms
of the amended Mining Right.
[57]
The text of section 102, read with the definition of mining area,
indicates that what section 102 covers
is a mining right. At all
relevant times before the Section 102 Consent being granted, Northern
Coal's application in terms of
Section 102 was, therefore, in
substance, an application for a mining right in respect of the same
mineral and land which remained
to be granted or refused as
contemplated in section 16(2)(c) of the MPRDA and the Regional
Manager could, therefore, not accept
any subsequent applications for
prospecting or other rights for coal over the Farm Roetz.
[58]
The Court upholds Northern Coal’s primary submission that the
section 102 consent granted a mining
right. Consequently, the
principle of first in the right—first in time applies, and
Jaments's subsequent application ought
not to have been validly
received by the Department.
[59]
As I am sitting as a court a quo, I should follow a belt-and-braces
approach and also consider Northern
Coal's alternative submission
that a section 102 application is akin to an application for a mining
right.
[60]
Northern Coal's alternative submission is that upon a proper
interpretation of the MPRDA, such an application
is akin to an
application for a mining right and ought to be processed by the DMRE
in the same manner as any other application.
[61]
The MPRDA does not contain any express provisions relating to the
order of processing applications
received by the Minister in section
102. This must be compared to other application processes prescribed
in the MPRDA. I see no
reason why a section 102 consent application
is not akin to an application for a mining right and ought to be
dealt with by the
DMRE in accordance with the first-in-time
principle. The process that is to be followed is akin to a mining
right application.
The considerations are akin. The applicable
principle of first in time, it follows, should also fins application.
[62]
In any
event, the principle of first in time, first in right, would apply,
regardless of the characterisation of the right. The
first-in-time
principle expressed by the maxim
qui
prior est tempore potior est jure
is
based on equity.
[4]
In addition,
real rights are stronger than personal rights, and in a conflict
between real rights, the maxim
qui
prior est tempore potior est jure
applies.
[5]
I see no reason why this principle of equity should not apply to a
section 102 consent application when it applies to other
types of
mining right applications, particularly in light of the nature of the
right at play.
[63]
The inequity of not applying the principle means that Jaments can
rely on it to further its interests
in seeking a prospecting right,
but Northern Coal cannot rely on it to extend an existing right. The
unfairness is clear.
[64]
In addition, Northern Coal submits that the first-in-time principle
is recognised throughout the MPRDA
as the orderly basis on which the
DMRE processes applications for the same land and the same mineral.
Section 6 of the MPRDA gives
effect to the first-in-time principle
concerning other applications as a reasonable and procedurally fair
manner to process all
applications under the MPRDA.
[65]
The Court is persuaded by this submission. I see no reason not to
apply the principle to the present
matter. If not, core
administrative justice principles will be eroded, particularly those
relating to a fair process.
[66]
The Court also embraces its duty under section 39(2) of the
Constitution to interpret legislation in
a manner that best gives
effect to the Constitution. Interpreting section 102 in a manner that
gives effect to the first-in-time
principle accords with the
Constitutional right to administrative justice and administrative
action, which is procedurally fair.
[67]
Northern Coal submits that such an interpretation further avoids a
gap in the legislative scheme and
any absurdity or repugnancy in the
MPRDA where, for some unknown reason, a later application takes
precedence over Northern Coal's
Section 102 Application. The
submission is that such an assertion is “insensible and
unbusinesslike and would, with respect,
lead to chaos in the
processing of applications. I am persuaded by this submission.
[68]
These submissions persuade the Court. The Court, therefore, finds
that in the event it erred in finding
that a section 102 consent is a
mining right, then the alternative argument by Northern Coal that it
is akin to a mining right
is correct.
Review
[69]
The Minister's reasons for the suspension decision read as follows –
“
My
decision is based on the following reasons:
1.
The Appellant has demonstrated sufficiently that there is potential
prejudice on its part should the Third Party [Northern Coal]
continue
to mine on [Farm Roetz] without allowing it to exhaust internal
remedy (sic).
2. There is prima facie
evidence that the DG’s decision to grant in terms of section
102 of the MPRDA the amendment of the
Third Party’s mining
right dated 14 December 2023 contradicts his appeal-decision to set
aside the rejection of the Appellant’s
prospecting right
application in a letter dated 16 November 2023.”
[70]
The Minister’s suspension decision provides two reasons for the
decision.
[71]
The first is that Jaments has sufficiently demonstrated potential
prejudice on its part should [Northern
Coal] continue to mine on
[Farm Roetz] without affording it an opportunity to exhaust internal
remedies. Jaments' alleged
prejudice is that if “Jaments
is certain that if Northern Coal’s illegal conduct continues
unabated, Jaments will suffer
severe financial losses.”
[72]
The Court has held, above, that a valid prospecting right is not
needed for the section 102 consent.
Jaments could only lawfully apply
for a prospecting right if it was not subject to a section 102
consent application. As the section
102 consent application was first
in time and did not lose its validity on the alleged lapsing of the
prospecting right, Jament's
application for prospecting rights was
not first in time, ought not to have been accepted and bear no
prospects of being granted.
[73]
Neither the law nor the facts support the Minister's reliance on
financial losses. Jaments has no right
in law to apply – let
alone be granted a prospecting right over a piece of land on which a
section 102 consent application
is pending. Factually, it cannot
suffer any losses based on a non-existent right. In this way, the
Minister had regard to irrelevant
considerations.
[74]
The Court finds the Minister's suspension decision reviewable on this
basis alone.
[75]
The Minister failed to apply his mind to the provisions of section
102 of the MPRDA and erred in law.
Had the Minister applied his mind,
he would have concluded that as Jaments' application for a
prospecting license is not first
in time, it ought not to be
accepted. Further, no financial loss can flow from a right to which
someone is not entitled. In this
way, the Minister failed to apply
his mind to the facts of the case.
[76]
In addition, the Minister failed to consider the real and imminent
irreparable harm that granting the
Suspension Decision would have on
Northern Coal. This Court has set out the real prejudice above, which
amounts to R 14 million
per month, potentially hundreds of job losses
and severe environmental consequences. On this basis, also, the
Minister's decision
needs to be reviewed and set aside as he failed
to consider all relevant facts.
[77]
The second reason the Minister provided in support of the Suspension
Decision is that on first sight,
the Director-General’s
decision to grant the Section 102 Consent on 14 December 2023
contradicts his decision of 16 November
2023 to set aside the
rejection of Jaments’ prospecting right application.
[78]
These decisions only appear contradictory on the surface and devoid
of circumstances. The contradictory
appearance is caused by the fact
that the section 102 application took years to finalise—two
years, in fact. During these
two years, the internal appeal was
instituted. The legal position changed between the two decisions –
so they are not in
effect contradictory – despite how they
appear on first sight.
[79]
The issue is that the legal position changed whilst the internal
appeal was being considered, as the
section 102 consent was granted.
However, in any event, the fact that two decisions appear
contradictory is not a sufficient basis
to essentially withdraw a
mining license.
[80]
For these reasons, the Court reviews and sets aside the Minister’s
suspension decision
Just
and Equitable Remedy
[81]
Northern
Coal seeks that the Court not remit the decision but rather
substitute the decision of the Minister. It relies on this
Court's
powers in PAJA to do so. Courts must be slow to assume a discretion
which has been entrusted by statute to another functionary,
[6]
and that, as a general rule, the Court will not substitute its own
decision for that of the administrator.
[7]
Northern Coal must show that specific, exceptional circumstances
permit such a substitution. Indeed, section 8(c)(ii)(aa) of PAJA
provides that a Court may only do so in exceptional circumstances.
[82]
Northern
Coal submits, however, that exceptional circumstances are not exotic,
rare, or bizarre but circumstances that sensibly
justify an alternate
route.
[8]
It further relies on
the authority of
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd
,
where the Constitutional Court stated the factors and test for
exceptional circumstances to be present before a Court ought to
substitute its own decision for the administrator’s if it is
just and equitable which involves a consideration of fairness
to all
implicated parties and that the Court will consider factors such as
whether the Court is in as good a position as the administrator.
[83]
Guided by these principles, the Court considers the specific facts of
this case. The present review
does not concern a technical field
where the Minister is part of a board composed of certain
specialities considering the suspension
application with the benefit
of experience and access to relevant information or expertise
sources.
[84]
The review turns on the interpretation of the MPDRA. It is a matter
of interpretation, not about policy,
politics, or technical
competencies. Here, scientific considerations do not abound. It is a
purely legal issue: does section 102
require a valid right on the new
area before the current area can be extended? It is purely a legal
consideration.
[85]
The Court weighs that the suspension decision is judicial in nature:
it involves the application of
law and the weighing up competing
legal rights. It does not require any particular skills or expertise
peculiar to the Minister.
[86]
The Court also has the necessary documents to consider the issue. The
Court has the documents that
served before the Minister and is in the
same position as the Minister when the Minister made the suspension
decision.
[87]
The Court also weighs that the parties do not have factual disputes
or disagreements regarding the
weight to be attributed to certain
facts. The dispute between the parties is purely one of legal
interpretation.
[88]
The Court also concludes that it would be nonsensical to conclude
that legally, section 102 consent
does not require a valid
prospecting right over the neighbouring farm but then remits the
matter for consideration by the Minister.
Having decided the dispute,
a remittal would serve no purpose. The Minister would have no new
facts or reasons and would be bound
by the decision of this Court.
Here, the decision to be substituted, is a foregone conclusion. In
the circumstances of this matter,
there is only one proper outcome at
the Minister's discretion: to refuse the suspension application. To
remit the matter in these
circumstances would only result in a
further delay of the matter.
[89]
Thus, exceptional circumstances justify the Court substituting its
decision for the Minister's Suspension
Decision rather than remitting
it back to the Minister. The Court substitutes the decision.
Declaratory
relief
[90]
Northern Coal seeks an order declaring that its Section 102
Application (which led to the Section 102
Consent) takes precedence
over any subsequent application lodged at the DMRE. Jaments contends
that such a declaration is unnecessary.
[91]
The Court is, however, persuaded by Jaments' submission that the
declarator serves no purpose other
than to be of academic assistance.
The relief granted – in particular, the substitution- means
there is no need to make a
formal declaration.
Costs
[92]
The applicant is successful in its application and is entitled to its
costs. The matter is complex.
There is no existing case law on the
issue, and the matter is just shy of 2000 pages long. Oral argument
took the entire day, and
the parties filed extensive and substantive
submissions. The matter is further complex as it involves multiple
applications for
different rights within the MPDRA. This justifies
costs on Scale C.
Conclusion
[93]
The Court orders:
a) The
first respondent’s decision in terms of section 96(2)(a) of the
MPRDA to suspend the operation of
the consent granted to the
applicant by the second respondent in terms of section 102 of the
MPRDA is reviewed and set aside;
b) The
first respondent’s decision in terms of section 96(2)(a) of the
MPRDA is substituted with the following:
“
The Appellant’s
application to suspend the operation of the Director-General’s
decision to grant consent in terms of
section 102 of the MPRDA to
Northern Coal pending the outcome of the Appellant’s appeal is
dismissed.
”
c)
The fourth respondent is to pay the costs of this application,
including the costs of two counsel on
scale C.
I de Vos
Acting Judge of the High
Court
Delivered:
This judgment is handed down electronically by uploading it to the
electronic file of this matter on CaseLines.
As a courtesy gesture,
it will be e-mailed to the parties/their legal representatives.
Counsel
for the applicant:
C
Woodrow SC
JL
Verwey
Instructed
by:
Briel
Inc
Counsel
for the fourth respondent:
T
Modise
Instructed
by:
Moorosi
Attorneys
Date
of the hearing:
25
June 2024
Date
of judgment:
24
July 2024
[1]
1982 (3) SA 582
(W) at 586
[2]
Dadoo Ltd and Others v Krugersdorp Municipal Council
1920 AD 530
at
547.
[3]
Unreported judgment, Rustenburg Platinum Mines Limited and Another v
The Regional Manager, Limpopo Region, Department of Mineral
Resources and Others (1109/2020)
[2022] ZASCA 157
(18 November
2022). Available on SAFLII at
https://www.saflii.org/za/cases/ZASCA/2022/157.html At paragraph 54
[4]
Wahloo Sand BK en Andere v Trustees, Hambly Park Trust en Andere
2002 (2) SA 776
(SCA) at 788D
[5]
Contract Forwarding (Pty) Ltd v Chesterfin (Pty) Ltd
2003 (2) SA 253
(SCA) at 258BC.
[6]
Medirite (Pty) Limited v South African Pharmacy Council 2015 JDR
0564 (SCA) at para 20
[7]
Johannesburg City Council v Administrator, Transvaal
1969 (2) SA 72
(T) at 76D-E.
[8]
ABSA Bank Ltd and Another v Commissioner, South African Revenue
Service
2021 (3) SA 513
(GP) at para 27.
Gauteng
Gambling Board v Silverstar Development Ltd
2005 (4) SA 67
(SCA) at
para 29.
2015 (5) SA 245
(CC) at paras 47 to 55
sino noindex
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