Case Law[2024] ZASCA 84South Africa
Minister of Mineral Resources and Energy and Others v Sustaining the Wild Coast NPC and Others (58/2023; 71/2023; 351/2023) [2024] ZASCA 84; 2024 (5) SA 38 (SCA) (3 June 2024)
Supreme Court of Appeal of South Africa
3 June 2024
Headnotes
Summary: Review – failure by court to consider question of just and equitable relief under s 172 of the Constitution when setting aside grant and renewals of exploration right – court on appeal – empowered to do so – suspending order setting aside decisions.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Supreme Court of Appeal
South Africa: Supreme Court of Appeal
You are here:
SAFLII
>>
Databases
>>
South Africa: Supreme Court of Appeal
>>
2024
>>
[2024] ZASCA 84
|
Noteup
|
LawCite
sino index
## Minister of Mineral Resources and Energy and Others v Sustaining the Wild Coast NPC and Others (58/2023; 71/2023; 351/2023) [2024] ZASCA 84; 2024 (5) SA 38 (SCA) (3 June 2024)
Minister of Mineral Resources and Energy and Others v Sustaining the Wild Coast NPC and Others (58/2023; 71/2023; 351/2023) [2024] ZASCA 84; 2024 (5) SA 38 (SCA) (3 June 2024)
Download original files
PDF format
RTF format
Links to summary
PDF format
RTF format
make_database: source=/home/saflii//raw/ZASCA/Data/2024_84.html
sino date 3 June 2024
FLYNOTES:
ADMINISTRATIVE – Review –
Just
and equitable relief
–
Seismic
surveys off Wild Coast – Consultation process inadequate –
High Court set aside decision to grant exploration
right as well
as two decisions to grant renewals – High Court failed to
consider question of just and equitable relief
and erred in not
weighing up relevant factors – Within power of Supreme Court
of appeal to direct that as part of third
renewal application,
further public participation process be conducted to cure
identified defects in process – Constitution,
s 172(1)(b).
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case no: 58/2023
71/2023
351/2023
In
the matter between:
MINISTER
OF MINERAL RESOURCES
AND
ENERGY
FIRST APPELLANT
SHELL
EXPLORATION AND PRODUCTION
SOUTH
AFRICA
B.V.
SECOND APPELLANT
IMPACT
AFRICA LIMITED
THIRD APPELLANT
BG
INTERNATIONAL LIMITED
FOURTH APPELLANT
and
SUSTAINING
THE WILD COAST NPC
FIRST RESPONDENT
MASHONA
WETU DLAMINI
SECOND RESPONDENT
DWESA-CWEBE
COMMUNAL PROPERTY
ASSOCIATION
THIRD RESPONDENT
NTSHINDISO
NONGCAVU
FOURTH RESPONDENT
SAZISE
MAXWELL PEKAYO
FIFTH RESPONDENT
CAMERON
THORPE
SIXTH RESPONDENT
ALL
RISE ATTORNEYS FOR CLIMATE
AND
THE ENVIRONMENT NPC
SEVENTH RESPONDENT
NATURAL
JUSTICE
EIGHTH RESPONDENT
GREENPEACE
ENVIRONMENTAL
ORGANISATION
NPC
NINTH RESPONDENT
Neutral
citation:
Minister
of Mineral Resources and Energy and Others v Sustaining the Wild
Coast NPC and Others
(Case no 58/2023;
71/2023; 351/2023)
[2024] ZASCA 84
(3 June 2024)
Coram:
PONNAN, MOCUMIE and MATOJANE JJA and SMITH and
SEEGOBIN AJJA
Heard
:
17 May 2024
Delivered
:
This judgment was handed down electronically by circulation to the
parties’ representatives by email,
publication on the Supreme
Court of Appeal website, and release to SAFLII. The date for hand
down is deemed to be 3 June 2024 at
11h00.
Summary:
Review – failure by court to
consider question of just and equitable relief under s 172 of the
Constitution when setting aside
grant and renewals of exploration
right – court on appeal – empowered to do so –
suspending order setting aside
decisions.
ORDER
On
appeal from
:
Eastern Cape Division of the High
Court, Makhanda (Mbenenge JP, Nhlangulela DJP and Norman J, sitting
as court of first instance):
a
Save to the extent set out hereunder, the appeal is dismissed with
costs,
including those of two counsel to be paid jointly and
severally by the appellants.
b
The order of the court below is amended by the addition of the
following:
‘
5.
Paragraphs 1, 2 and 3 hereof are suspended pending determination of
the application submitted on 21 July 2023 pursuant to
s 81
of the
Mineral and Petroleum Resources Development Act 28 of 2002
for the
renewal of exploration right 12/3/252.’
JUDGMENT
Ponnan
JA (Mocumie and Matojane JJA and Smith and Seegobin AJJA concurring):
[1]
This appeal has its genesis in the grant, on 29 April 2014, of an
exploration right
by the first appellant, the Minister of Mineral
Resources and Energy (the Minister), to the third appellant, Impact
Africa Limited
(Impact), to be exercised by the second appellant,
Shell Exploration and Production South Africa B.V. and the fourth
appellant,
BG International Limited (BG) (the second and fourth
appellants are collectively referred to as Shell). On 17 May 2017,
Impact
applied for a renewal of the exploration right, which was
granted on 20 December 2017. On 13 March 2020, Impact applied for a
second
renewal of the exploration right, which was granted on 30 July
2021.
[2]
When Impact and Shell sought to exercise the exploration right by
conducting seismic
surveys off the Wild Coast of South Africa, the
first to seventh respondents approached the Eastern Cape Division of
the High Court,
Makhanda for urgent interdictory relief on 2 December
2021. Relief was sought in two parts. Part A served before Bloem J,
who,
on 28 December 2021, interdicted Impact and Shell from
undertaking seismic survey operations under the exploration right,
pending
the finalisation of Part B. The eighth respondent, Natural
Justice and the ninth respondent, Greenpeace Environmental
Organisation
NPC, thereafter sought and obtained leave to join as the
eighth and ninth applicants in the proceedings.
[3]
Part B was heard on 30 and 31 May 2022 by a specially constituted
court of three judges
consisting of Mbenenge JP, Nhlangulela DJP and
Norman J (the high court). In a written judgment delivered on 1
September 2022 the
high court held:
‘
1.
The decision taken by the first respondent on 29 April 2014 granting
exploration right
12/3/252 to the fourth respondent for the
exploration of oil and gas in the Transkei and Algoa exploration
areas is reviewed and
set aside.
2.
The decision taken by the first respondent on 20 December 2021 to
grant a renewal
of the exploration right is reviewed and set aside.
3.
The decision taken by the first respondent on 26 August 2021 to grant
a further
renewal of the exploration right is reviewed and set aside.
4.
The first, fourth and fifth respondents shall pay [the] costs of this
application,
jointly and severally, the one paying the other to be
absolved, such costs to include, in the case of the first to seventh
applicants,
the costs of three counsel and, in the case of the eighth
and ninth applicants, the costs of two counsel.’
[4]
In arriving at that conclusion, the high court declined the
invitation by the respondents
to declare that Shell and Impact were
not entitled to commence any exploration activity without first
seeking and obtaining an
environmental authorisation in terms of the
National Environmental Management Act 107 of 1998 (NEMA). The high
court took the view
that the success of the review would render the
relief sought under NEMA, which had been raised in the alternative to
the main
relief, redundant. With the leave of the high court, the
Minister, Shell and Impact appeal, as the first to third appellants
respectively,
against the judgment and order of the high court and
the respondents challenge by way of a cross appeal the refusal of the
high
court to consider and determine the relief sought under NEMA. At
the bar, it came to be accepted that the cross appeal was, in truth,
in the nature of a conditional cross appeal, and that the need to
enter into it would only arise were we to uphold the main appeal.
[5]
The judgment of the high court has been reported
sub nom
Sustaining the Wild Coast NPC and Others v Minister of Mineral
Resources and Energy and Others
2022 (6) SA 589
(ECMk), it is
accordingly not necessary for the facts or litigation history, which
has been set out therein, to be repeated here.
[6]
Before turning to the substantive merits of the appeal, it is
necessary to consider
two preliminary issues raised by the appellants
before the high court and persisted in on appeal. It is contended
that: (i) the
review application should have been dismissed on the
ground that the respondents unreasonably delayed in launching their
challenge,
thus falling foul of the 180-day time limit under s 7(1)
of the Promotion of Administrative Justice Act 3 of 2000 (PAJA); and,
(ii) the appellants failed to exhaust their internal remedies, namely
an appeal in terms of s 96 of the Mineral and Petroleum Resources
Development Act 28 of 2002 (the MPRDA) against the grant of the
exploration right and the renewals, prior to bringing their review
application.
As to (i):
[7]
The respondents maintain that they became aware of the grant of the
exploration right
in late October and early November 2021. The review
application was initiated, by way of an amendment to the notice of
motion in
January 2022, after the grant of the interim interdict by
Bloem J, well within the 180-day limit, according to the respondents.
[8]
Shell asserts that it does not matter when the individual persons or
communities became
aware of the impugned decisions and their reasons,
because, so the assertion proceeds, the decisions affected the public
at large
and (relying on the
OUTA
decision)
[1]
the clock started ticking when the public at large might reasonably
have been expected to have become aware of the decisions and
the
reasons for them, regardless of when the concerned individuals had
themselves become aware. Shell maintains that this occurred
on 20 May
2020, when an Environmental Compliance Notice was sent to interested
and affected persons [IA&Ps], and to the general
public,
allegedly alerting them to the grant of the exploration right.
[9]
Impact adopts a similar approach to Shell, claiming that the
applicable test is when
the public at large could reasonably be
expected to have become aware of the decisions and their reasons.
Impact maintains that
this occurred in 2013, when it notified the
public of its application for an exploration right. The Minister
adopts the same stance
as Impact, stating that the public at large
would reasonably have been expected to have become aware of the grant
of the exploration
right around 29 April 2014, some seven years
before the institution of the review.
[10]
The appellants accordingly contend that the high court erred in
applying the test under s 3 of
PAJA (which relates to administrative
action affecting a person) as opposed to s 4 (which relates to
administrative action affecting
the public). As a result, so the
contention proceeds, the high court focused on the fact of when the
individual applicants actually
obtained knowledge of the decisions
sought to be reviewed rather than the question of when the public at
large might reasonably
be expected to have knowledge of the
administrative action. But, even if it is assumed in the appellants’
favour that the
high court should have applied s 4, instead of s 3,
of PAJA, it makes no difference. There is no evidence that the
Minister (or
his delegate) gave the public notice of the decisions
prior to October 2021.
[11]
Under s 3(2)
(b)
of PAJA, an administrator is required to
afford all persons whose rights are materially and adversely affected
by administrative
action:
‘
(i)
adequate notice of the nature and purpose of the proposed
administrative action;
(ii) a reasonable
opportunity to make representations;
(iii) a clear statement
of the administrative action;
(iv) adequate notice of
any right of review or internal appeal, where applicable; and
(v) adequate notice of
the right to request reasons in terms of section 5.’
[12]
No evidence has been adduced that the Minister or his delegates gave
the public notice that the
exploration right had initially been
granted or later renewed. The Minister does not point to any notice
or publication. It is
simply asserted that the public would have
become aware of the grant of the exploration right around April 2014.
Nor, does Impact
specify how the public became aware of the relevant
decisions prior to October 2021. Impact contends that the general
public would
have ‘become aware of the exploration right in
2013, when there was public notification of the exploration right
application
by means of: notices in four newspapers on 22 March 2013;
emails to stakeholders on 22 March 2013 . . .; emails to all IA&Ps
on 17 and 24 May 2013 notifying of the draft EMPr’s
[environmental management programme’s] availability for review
and comment; and three public meetings in Port Elizabeth, East London
and Port St Johns on 3, 4 and 5 June 2013’.
[13]
However, these processes gave notice of Impact’s application
for an exploration right,
not of the grant of the exploration right
or the renewals thereof. In any event, the grant of Impact’s
exploration right
occurred on 29 April 2014, after the above notices
were given and meetings held. Both the Minister and Impact attempt to
skirt
around this problem by focusing on the applicability of ss 3
and 4 of PAJA. However, the argument misses the point. The
point
is that the Minister should have given clear notice of his
decision to grant the exploration right and its renewals and informed
all affected persons (being individuals and the public) of their
right to appeal the decisions or request reasons. The Minister
failed
to do so. In the absence of a clear announcement of the decisions,
the public could not reasonably have known of their existence.
It was
only after 29 October 2021, when SLR Consulting (at the instance of
Shell) gave notice of Shell’s intention to commence
with the
seismic survey and the issue was picked up in the media, that the
public at large might reasonably have become aware of
the decisions.
It could thus never be that the general public could reasonably be
expected to have knowledge that a right had been
granted merely
because the general public had knowledge that a right had been
applied for.
[14]
There is thus no basis for the appellants to claim that the public
might reasonably have been
expected to become aware of the decisions
prior to late October 2021. As such, the 180-day time period only
began running in October
2021 and there was no delay in launching the
review proceedings.
As to (ii):
[15]
According to the respondents, they did not pursue an internal appeal
for four reasons: First,
they only found out about the grant and the
renewals in November 2021, almost seven years after the exploration
right was granted.
Second, the initial approach to the Court was for
urgent interdictory relief, in circumstances where the commencement
of the seismic
survey was imminent and would likely have been
concluded prior to the resolution of any appeal thereby rendering
nugatory any internal
appeal process. Third, there existed a
reasonable apprehension of bias against them on the part of the
Minister, which was based
on the Minister’s opposition to part
A of their application despite no relief being sought against him, as
well as his application
for leave to appeal the judgment and order
granted under part A. The apprehension was fortified by several
public statements made
by the Minister, criticising public interest
groups for challenging the seismic surveys and maintaining his
refusal to review the
exploration right. The Minister was quoted as
saying: ‘We consider the objections to these developments as
apartheid and
colonialism of a special type, masqueraded as a great
interest for environmental protection.’ The Minister did not
engage
at all with the reasons advanced by the first to seventh
respondents for not pursuing an internal appeal.
[16]
It is suggested that the respondents cannot rely on the conduct and
public statements of the
Minister after the litigation commenced to
justify their failure to exhaust internal remedies prior to applying
for the review
and the setting aside of the Minister’s
decisions. What this ignores, however, is that the grounds giving
rise to the perception
of bias all arose before the notice of motion
was amended to include the review of the Minister’s decisions.
The obligation
to exhaust internal remedies, and the realisation that
this would be fruitless, was not an issue at the time of the launch
of the
application and the hearing of part A. This perception of bias
only arose after part A of the application had been finalised, when
the review relief was introduced by way of the amendment to the
notice of motion.
[17]
It is not in dispute that neither the public nor the IA&Ps was
given notice of the decisions
or informed of their right to appeal or
to ask for reasons. The failure to do so, which is unexplained on the
papers, is subversive
of the procedural entitlements of the
appellants. What is more, after learning of the existence of the
exploration right, the Minister
and the Petroleum Agency of South
Africa (PASA) was approached on behalf of Natural Justice and
Greenpeace Africa with a request
for copies of the exploration right
and the other impugned decisions as well as reasons for those
decisions and for an extension
of the period within which to bring an
appeal. The request was ignored. Thus, details of the impugned
decisions came to be seen
for the first time when the rule 53 record
in the review was furnished. In the circumstances, the high court can
hardly be faulted
for its finding that: ‘[t]his is a classic
case of an internal remedy that would not have been objectively
implemented and
which would have rendered nugatory the values of
administrative justice enshrined in the Constitution and upheld by
PAJA’.
[18]
Moreover, the test for interference with the exercise of a discretion
of this nature has not
been satisfied. The high court had a wide
discretion to exempt the respondents from the relevant internal
remedy provisions. This
was a permissible option available to it in
terms of s 7(2)
(c)
of
PAJA.
[2]
When it did so, it
exercised a true discretion. The test for interference with such a
discretion on appeal is that this Court would
have to be satisfied
that the discretion was not exercised judicially or was influenced by
wrong principles or wrong facts.
[3]
The appellants have not come close to satisfying this test.
[19]
Turning to the merits: The right to procedurally fair administrative
action is entrenched in
s 33 of the Bill of Rights. The grant of an
exploration right constitutes administrative action.
[4]
When administrative action materially and adversely affects the
rights of any person, their right to procedural fairness is
triggered.
It can hardly be in dispute that Impact was required to
meaningfully consult with the communities and individuals that would
be
affected by the seismic blasting. The duty to do so derives from:
(i) the obligations imposed upon it, as an applicant for an
exploration
right, by the MPRDA; and, (ii) the self-standing duty
under PAJA to consult with the communities as holders of existing
customary
rights (particularly customary fishing rights) that would
be adversely affected by the seismic blasting.
[20]
Section 3 of PAJA sets out the requirements for procedural fairness.
These include that persons,
whose rights are impacted, must be given
adequate notice of the nature and purpose of the proposed
administrative action and a
reasonable opportunity to make
representations.
[5]
In the
context of exploration and mining, PAJA must be read together with
the MPRDA. When an application for an exploration right
is made, the
MPRDA imposes obligations on an applicant to consult with any
affected party.
[6]
[21]
The general principles that are applicable to consultation of
communities in relation to applications
under the MPRDA were set out
by the Constitutional Court in
Bengwenyama
Minerals (Pty) Ltd and Others v Genorah Resources (Pty) Ltd and
Others
(
Bengwenyama
).
Two bear emphasis: First, interested and affected persons must be
informed in sufficient detail of the proposed mining activities
and
what those will entail, so that they can properly assess its impact.
The provision of the necessary information will allow
such persons to
make an informed decision in relation to the representations that
they will submit to the decision-maker.
[7]
Second, a meaningful consultation process is integral to ensuring
procedural fairness. The Constitutional Court stated that ‘any
administrative process conducted or decision taken in terms of the
[MPRDA] must be taken in accordance with the principles of
lawfulness, reasonableness and procedural fairness. The prescripts of
the [MPRDA] in this regard are subject to the provisions of
PAJA’.
[8]
Although
Bengwenyama
dealt
with consultation in relation to prospecting right applications, the
reasoning applies with equal force to the applications
encountered
here.
[22]
The adequacy of the
consultation process adopted in this case has been subjected to
wide-ranging criticism by the respondents, including
that:
(i) the language used is
technical and inaccessible – by way of example, the work
programme is described as including the
following steps: ‘Phase
1: Airborne geophysics acquisition (gravity and magnetics) to define
existing structural trends,
identify additional features and to
address depth to basement/magnetic source. Phase 2: 2D and 3D seismic
surveys followed by processing
and interpretation . . .’; and,
(ii) the geographic
location that will be affected is described in vague and overbroad
terms as the ‘Transkei/Algoa area off
the Eastern Cape Coast of
South Africa’ and ‘the proposed Exploration area
(45 838km
2
) extends from the coast out to a maximum
water depth of approximately 4000m’, making it impossible for
communities to know
if the notice was applicable to them.
[23]
However, by far the most trenchant criticism – one from which
there appears to be no escape
for the appellants – is that the
notices that were published in the four newspapers were inaccessible
to many members of
the respondent communities. Three of the
newspapers are in the English language and one in Afrikaans. Few
people in the respondent
communities (particularly the Amadiba
community) read English, and virtually nobody speaks Afrikaans. The
majority of residents
along the Wild Coast speak isiXhosa or
isiMpondo. If Impact wanted to meaningfully engage with them, it
should have prepared notices
in their language. In addition, there is
no newspaper circulating in Amadiba or in the communities of
Dwesa-Cwebe. Newspapers are
not delivered to these communities.
Newspaper advertisements would simply not reach them, even if in a
language of their choice.
[24]
As is the case with many communities along the Wild Coast, the people
of Amadiba mostly get their
news from the radio. They mainly listen
to Ukhozi FM and Umhlobo Wenene. The respondents say that had there
been notice or discussion
of Shell’s proposed seismic blasting
on the radio, they would certainly have commented. The adverts in the
four newspapers
were intended to notify the public about the proposed
project and provide details of the consultation process and
information as
to how members of the public could provide input in
respect of the forthcoming survey. In the circumstances, the choice
of print
media was plainly ill-advised. This was exacerbated by the
choice of English and Afrikaans language newspapers. The process,
which
was more illusory than real, was thus manifestly inadequate.
[25]
It follows, and this is the logical corollary to the inadequacy of
the consultation process,
that when assessing (and ultimately
granting) Impact’s application for an exploration right, a
number of relevant factors
were not considered, including but not
limited to: the detrimental impact that the surveying activities
would have on the spiritual
and cultural practices of the affected
communities; the livelihood of the members of the communities along
the Wild Coast, inasmuch
as the sea is the primary – and in
many cases the only – source of nutrition and income for them;
and, the requirements
of the National Environmental Management:
Integrated Coastal Management Act 24 of 2008 (ICMA), which creates
specific measures
for the protection of the coastal zone.
[26]
It is thus clear that there was a failure to take relevant
considerations into account and as
such the decision is reviewable
under s 6(2)
(e)
(
iii
)
of PAJA.
[9]
Once a ground of
review under PAJA has been established, s 172(1)
(a)
of
the Constitution requires the decision to be declared unlawful, but
that is not the end of the matter. The consequence of a declaration
of unlawfulness is that it must then be dealt with under s 172(1)
(b)
of
the Constitution.
[10]
Not only
did the high court fail to consider the question of just and
equitable relief under section 172 of the Constitution, but
it went
so far as to hold that: ‘[a]uthorising new oil and gas
exploration, with its goal of finding exploitable oil and/or
gas
reserves and consequently leading to production, is not consistent
with South Africa complying with its international climate
change
commitments.’ On any reckoning such a far-reaching finding,
which has a sterilising effect and for which there can
be no warrant,
cannot be endorsed.
[27]
In exercising powers under s 172(1)
(b)
,
courts have the widest possible remedial discretion.
[11]
The appellants submit that our courts have been cognisant of ensuring
that innocent parties are not unduly prejudiced,
[12]
and that it is thus necessary for this Court to revisit the aspect of
remedy. The Constitutional Court in
Electoral
Commission v Mhlope & others
,
[13]
emphasised the need for courts to be pragmatic in crafting just and
equitable remedies in the exercise of its wide remedial powers.
A
just and equitable remedy must be: proportionate (the Constitutional
Court has found that it is disproportionate to set aside
an entire
project as a consequence of an imperfect process);
[14]
fair and just in the context of the particular dispute;
[15]
ample and flexible and should place substance above form.
[16]
[28]
Seeing as the high court ered in not weighing up the relevant
factors, this Court is empowered
to do so. There has been an almost
eight-year delay between the granting of the exploration right and
the review and, acting in
reliance on the validity of the decisions,
there has been significant financial expenditure in the region of
R1.1 billion, dating
back to 2012 when Impact applied for its
technical co-operation permit (which preceded the exploration right).
Two renewals of
the exploration right have been granted, accordingly
there will be only one more opportunity to renew the exploration
right. A
moratorium has since been placed on exploration rights over
the entire South African coast,
[17]
thus Shell and Impact may never get the opportunity to exercise the
right.
[29]
The appellants also argue that the high court failed to consider the
adverse consequences for
the public in whose interests the
decision-maker purportedly acts. Shell and Impact provided evidence
of the economic and social
benefits that will fail to materialise
without the exploration being undertaken. Sight cannot also be lost
of the public interest
in the finality of administrative
decision-making and the degree or materiality of the irregularity or
that the long delay and
lack of legal certainty may well have a
chilling effect on foreign investment. The appellants contend that
all of these can be
mitigated by the possibility of directing that
measures be implemented, including that a further public
participation process be
undertaken. In the circumstances, so the
contention goes, considerations of justice, equity and the principles
of finality and
certainty, dictate that the harshness of the
exploration right being set aside, can and should be ameliorated.
[18]
[30]
In
Joubert
Galpin Searle Inc
,
Plasket J thought it necessary ‘to temper the setting aside . .
. in a way that minimises the negative effects’. He
accordingly
decided to ‘suspend the order reviewing and setting aside . . .
so that something remains in place, imperfect
as it may be’.
[19]
There is much to commend that approach in a matter such as this,
particularly in the light of what follows. Shortly before the
hearing
of the appeal, we raised the following with the parties:
‘
Inasmuch
as each of the first and second renewal of the exploration right,
which issued on 20 December 2017 and 26 August 2021 respectively,
was
not to exceed two years, the parties will be required at the hearing
of the matter to address whether the decision sought in
the appeal
will have any practical effect or result within the meaning of
s
16(2)
(a)
(i)
of the
Superior Courts Act 10 of 2013
.’
[31]
We were informed, in response, that prior to the end of the second
renewal period of the exploration
right and, pursuant to exercising
their exclusive right to do so in accordance with
s 82(1)
(b)
of
the MPRDA, Impact and BG timeously submitted an application to PASA
on 21 July 2023, to enter into a third renewal period as
permitted by
s 81(4)
of the MPRDA. In terms of
s 81(5)
of the MPRDA, an
exploration right in respect of which an application for renewal has
been lodged shall, notwithstanding its expiry
date, remain in force
until such time as the application has been granted or refused. Thus,
despite the current expiration date
of 26 August 2023, the
exploration right remains in force until the third renewal
application has been granted or refused. It would
thus be entirely
within the power of this Court to direct that as part and parcel of a
proper consideration of the third renewal
application, a further
public participation process be conducted to cure the identified
defects in the process already undertaken,
especially as the parties
who claim to have an interest in the matter have now been identified
and the matters warranting consideration
have been fully canvassed in
a 19-volume record consisting of some 4000 pages. Consequently, save
for suspending the orders setting
aside the granting of exploration
right 12/3/252 and each of the two renewals dated 20 December 2017
and 26 August 2021 respectively,
the appeal is otherwise dismissed.
[32]
In the result:
a. Save to the extent set
out hereunder, the appeal is dismissed with costs, including those of
two counsel to be paid jointly and
severally by the appellants.
b. The order of the court
below is amended by the addition of the following:
‘
5.
Paragraphs 1, 2 and 3 hereof are suspended pending determination of
the application submitted on 21 July 2023 pursuant to
s 81
of the
Mineral and Petroleum Resources Development Act 28 of 2002
for the
renewal of exploration right 12/3/252.’
V M PONNAN
JUDGE OF APPEAL
Appearances
For
the first appellant:
A
Beyleveld SC and AC Barnett
Instructed
by:
The
State Attorney, Gqeberha
The
State Attorney, Bloemfontein
For
the second appellant:
A
Friedman
Instructed
by:
Shepstone
& Wylie, Durban
McIntyre
van der Post, Bloemfontein
For the third
appellant:
C
Loxton SC, A Nacerodien and P Schoeman
Instructed
by:
Cliffe
Dekker Hofmeyr Inc., Cape Town
Honey
Attorneys, Bloemfontein
For
the first to seventh respondents:
E
Webber and N Stein
Instructed
by:
Richard
Spoor Inc., Cape Town
Matsepes
Inc., Bloemfontein
For
the eighth & ninth respondents:
N
Ferreira and L Moela
Instructed
by:
Cullinan
and Associates Inc., Cape Town
CWA
Attorneys, Bloemfontein.
[1]
Opposition
to Urban Tolling Alliance v South African National Roads Agency Ltd
[2013]
ZASCA 148
;
[2013] 4 All SA 639
(SCA) para 27.
[2]
S
7(2)
(c)
of
PAJA provides: ‘A court or tribunal may, in exceptional
circumstances and on application by the person concerned, exempt
such person from the obligation to exhaust any internal remedy if
the court or tribunal deems it in the interest of justice’.
[3]
Trencon
Construction (Pty) Limited v Industrial Development Corporation of
South Africa Limited and Another
[2015]
ZACC 22
;
2015 (5) SA 245
(CC);
2015 (10) BCLR 1199
(CC) paras 83 and
88.
[4]
Bengwenyama
Minerals (Pty) Ltd and Others v Genorah Resources (Pty) Ltd and
Others
[2010]
ZACC 26
;
2011 (4) SA 113
(CC);
2011 (3) BCLR 229
(CC) (
Bengwenyama
).
[5]
S
3(2)
(b)
(
i
)
and (
ii
)
of PAJA.
[6]
These
are derived from
s 79(4)
of the MPRDA, which deals with applications
for exploration rights. At the time that the exploration right was
granted, this
section provided that:
‘
(4)
If the designated agency accepts the application, the designated
agency must, within 14 days of the receipt of the application,
notify the applicant in writing –
(a) to notify and
consult with any affected party; and
(b) to submit an
environmental management programme in terms of
section 39
within a
period of 120 days from the date of the notice.’
[7]
Bengwenyama
paras
66–67.
[8]
Bengwenyama
para
61.
[9]
In
terms of
s 6(2)
(e)
(iii)
of PAJA, a court or tribunal has the power to judicially review an
administrative action if the action was taken because
irrelevant
considerations were taken into account or relevant considerations
were not considered.
[10]
Allpay Consolidated
Investment Holdings (Pty) Ltd and Others v Chief Executive Officer
of the South African Social Security Agency
and Others
[2013]
ZACC 42
;
2014 (1) SA 604
(CC);
2014 (1) BCLR 1
(CC) para 25.
[11]
Economic
Freedom Fighters v Speaker of the National Assembly and Others;
Democratic Alliance v Speaker of the National Assembly
and Others
[2016]
ZACC 11
;
2016 (5) BCLR 618
(CC);
2016 (3) SA 580
(CC) para 132.
[12]
Millennium
Waste Management (Pty) Ltd v Chairperson of the Tender Board:
Limpopo Province and Others
[2007]
ZASCA 165
; [2007] SCA 165 (RSA);
[2008] 2 All SA 145
;
2008 (2) SA
481
;
2008 (5) BCLR 508
;
2008 (2) SA 481
(SCA) para 23.
[13]
Electoral
Commission v Mhlope & others
[2016]
ZACC 15
;
2016 (8) BCLR 987
(CC);
2016 (5) SA 1
(CC) para 132.
[14]
Mazibuko
and Others v City of Johannesburg and Others
[2009]
ZACC 28
;
2010 (3) BCLR 239
(CC);
2010 (4) SA 1
(CC) para 134.
[15]
Head
of Department: Mpumalanga Department of Education and Another v
Hoërskool Ermelo and Another
[2009]
ZACC 32
;
2010 (2) SA 415
(CC);
2010 (3) BCLR 177
(CC) para 96.
[16]
Ibid
para 97.
[17]
See
GN 657 in GG 41743 of 28 June 2918; GN 1664 of GG 42915 of 20
December 2019. See further GN 71 in GG 37294 of 3 February 2014;
and
GN 932 in GG 35866 of 16 November 2012.
[18]
See:
Khumalo
and Another v Member of the Executive Council for Education:
KwaZulu-Natal
[2013]
ZACC 49
;
2014 (3) BCLR 333
(CC); (2014) 35 ILJ 613 (CC);
2014 (5) SA
579
(CC) at para 53. And more specifically in relation to the MPRDA
and/or NEMA;
[19]
Joubert
Galpin Searle Inc and Others v Road Accident Fund
[2014]
ZAECPEHC 19;
[2014] 2 All SA 604
(ECP)
2014 (4) SA 148
(ECP) paras
105 and 106.
sino noindex
make_database footer start
Similar Cases
Transasia 444 (Pty) Ltd v Minister of Mineral Resources and Energy and Others; Transasia Minerals (SA) (Pty) Ltd v Minister of Mineral Resources and Energy and Others (702/2023; 707/2023) [2024] ZASCA 145 (23 October 2024)
[2024] ZASCA 145Supreme Court of Appeal of South Africa97% similar
Gensinger and Neave CC & Others v Minister of Mineral Resources and Energy [2024] ZASCA 49; 2025 (4) SA 84 (SCA) (15 April 2024)
[2024] ZASCA 49Supreme Court of Appeal of South Africa97% similar
Ezulwini Mining Company (Pty) Ltd v Minister of Mineral Resources and Energy and Others (289/2021) [2023] ZASCA 80; 2023 (5) SA 112 (SCA) (30 May 2023)
[2023] ZASCA 80Supreme Court of Appeal of South Africa97% similar
Makwakwa and Others v Minister of State Security (1316/2022) [2024] ZASCA 41 (5 April 2024)
[2024] ZASCA 41Supreme Court of Appeal of South Africa97% similar
Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service (728/2022) [2023] ZASCA 144; 86 SATC 474 (8 November 2023)
[2023] ZASCA 144Supreme Court of Appeal of South Africa97% similar