Case Law[2023] ZASCA 80South Africa
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)
Supreme Court of Appeal of South Africa
30 May 2023
Headnotes
Summary: Environmental Law – mining – whether mine operator has a continuing obligation to pump extraneous water from underground mining area notwithstanding cessation of underground mining activities – whether obligation extends to closure of mine.
Judgment
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## 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)
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)
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sino date 30 May 2023
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case No: 289/2021
In the matter between:
EZULWINI MINING
COMPANY (PTY) LTD
APPELLANT
and
MINISTER OF MINERAL
RESOURCES
AND ENERGY
FIRST
RESPONDENT
MINISTER OF
ENVIRONMENT,
FORESTRY AND
FISHERIES
SECOND
RESPONDENT
MINISTER OF HUMAN
SETTLEMENTS,
WATER AND
SANITATION
THIRD RESPONDENT
REGIONAL MANAGER:
MINERAL
REGULATION GAUTENG
REGION:
DEPARTMENT OF MINERAL
RESOURCES
FOURTH
RESPONDENT
GFI JOINT VENTURE
HOLDINGS (PTY) LTD
FIFTH
RESPONDENT
GOLD FIELDS OPERATION
LIMITED
SIXTH
RESPONDENT
LUCKY FARMS
PARTNERSHIP
SEVENTH
RESPONDENT
Neutral citation:
Ezulwini Mining Company (Pty) Ltd v Minister of Mineral
Resources and Energy and Others
(Case no 289/2021)
[2023] ZASCA
80
(30 May 2023)
Coram:
Petse AP,
Molemela and Makgoka JJA and Basson and Goosen AJJA
Heard:
24 November 2022
Delivered:
30 May 2023
Summary:
Environmental Law – mining – whether mine operator has a
continuing obligation to pump extraneous water from underground
mining area notwithstanding cessation of underground mining
activities – whether obligation extends to closure of mine.
ORDER
On appeal from:
Gauteng Division of the High Court, Pretoria (Fabricius J sitting as
a court of first instance):
1
Paragraph 1 of the order of the high court is set aside and replaced
with
the following:
‘
It is declared
that Ezulwini Mining Company (Pty) Ltd remains responsible for the
pumping and treatment of extraneous water from
the underground
workings of Ezulwini Mine until the Minister of Mineral Resources and
Energy has issued to it, a closure certificate
in terms of
s 43
of
the
Mineral and Petroleum Resources Development Act 28 of 2002
.’
2
Otherwise, the appeal is dismissed with costs, including the costs of
two
counsel.
JUDGMENT
Goosen AJA (Petse AP,
Molemela and Makgoka JJA and Basson AJA concurring):
[1]
Deep-level mining may require the
management of extraneous water that enters the underground mining
area. Mine shafts are sunk from
the surface occasionally to great
depths, in order to access rock seams containing mineral deposits. As
these mining areas are
worked to extract the mineral-bearing rock,
voids are opened. Groundwater from higher and adjacent areas seeps
through fissures
in the rock, under force of gravity, into the voids.
When this occurs, the extraneous water must be pumped out and
discharged at
the surface of the mine in order to continue safely and
effectively working these mining areas. Such dewatering of the
underground
mining area is, in these circumstances, an essential
feature of underground mining operations affected by the ingress of
extraneous
water.
[2]
The issue in the appeal is whether a mine operator’s obligation
to continue pumping extraneous
water from underground mining areas,
endures despite its cessation of underground mining operations. The
Gauteng Division of the
High Court, Pretoria (the high court)
answered that question in the affirmative. It consequently ordered
the appellant, Ezulwini
Mining Company (Pty) Ltd (Ezulwini) to
continue with such pumping, until the first respondent had issued to
it, a closure certificate
in terms of s 43 of the Mineral and
Petroleum Resources Development Act, 28 of 2002 (MPRDA). Ezulwini
appeals against that order,
with the leave of the high court.
[3]
Ezulwini is the holder of a mining permit and operator of a mine on
the West Rand of Gauteng (the Ezwulini
mine), which it acquired from
its predecessor in 2014. The mine has been worked since 1961. The
first, second, and third respondents
are the Ministers whose
departments are, respectively, responsible for the management of
relevant legislation. The first respondent,
the
Minister of
Mineral Resources and Energy, is responsible for
the MPRDA and the Mine Health and Safety Act, 29 of 1996 (MHSA). The
second respondent, the
Minister of Environment, Forestry and
Fisheries
, is responsible for the National
Environmental Management Act, 107 of 1998 (NEMA). The third
respondent, the Minister of
Water and Sanitation, is responsible for
the National Water Act, 36 of 1998 (the Water Act). The fourth
respondent is an official
in the Department of Mineral Resources,
based in Gauteng.
[4]
The fifth respondent, GFI Joint Venture Holdings (Pty) Ltd (GFI) is
the owner of a mine that is adjacent to Ezulwini
mine. The sixth
respondent, Gold Fields Operation Limited (Gold Fields) is the
operator of the mine owned by GFI. I shall refer
to them collectively
as Gold Fields and to the mine as the Gold Fields mine. The Gold
Fields and Ezulwini mines are interconnected.
The underground
connection has, however, been ‘plugged’ or sealed. The
seventh respondent, Lucky Farms Partnership
(Lucky Farms) conducts a
farming operation in the vicinity of the surface operation of the
Ezulwini and Gold Fields mines. It draws
water from a stream and
groundwater resources for its farming operation. It was cited for its
interest in the matter. Of all the
respondents, only the Minister of
Mineral
Resources and Energy (the Minister) and Gold Fields
participated in the appeal, and opposed the relief sought by
Ezulwini.
Lucky Farms filed a notice to abide
in this Court, and thus also took no part in the proceedings.
[5]
It was common ground that the pumping of extraneous water from the
underground works at Ezulwini has been carried
out for many years by
the mine’s previous operators. Indeed, the dewatering of mines
has occurred at many mines operated
on the West Rand. This has
resulted in dewatering of basins, which occur in the dolomite layers
between the surface and the deep-level
mining areas. Ezulwini has,
since it took over mining operations from its predecessor, continued
to pump extraneous groundwater
from its underground mining areas. The
extraneous water is pumped to the surface where it is treated before
being discharged into
natural water courses on the surface. Its
pumping and treatment of the extraneous water is licenced in terms of
the Water Act.
[1]
[6]
In September 2016, Ezulwini discontinued its underground mining
operations as these
were no longer economically viable. It has
continued to conduct certain operations involving the processing of
mineral-bearing
material at its surface mining area. In October 2017,
Ezulwini applied to the fourth respondent, for an environmental
authorisation
to cease the pumping of extraneous underground water in
terms of s 24 of NEMA (the NEMA application). It also applied to the
Provincial
Head of the Settlements, Water and Sanitation Department,
for an amendment of its water use licence issued in terms of the
Water
Act (the water use amendment application).
[7]
In May 2018, Ezulwini’s NEMA application was refused. It lodged
an appeal against
the refusal, to the first respondent. The appeal
was upheld in part, in that the application was remitted for
reconsideration following
a public participation process.
[8]
Neither the NEMA, nor the water use application has been finalised.
Acting upon legal
advice to the effect that neither application was
lawfully required, Ezulwini brought an application before the Gauteng
Division
of the High Court, Pretoria (the high court) seeking
declaratory relief in regard to its legal obligation to continue
pumping extraneous
groundwater from the underground works (the main
application). The main application was commenced on 24 July 2019. The
primary
declaratory relief it sought was that neither an
environmental authorisation (in terms of NEMA), nor an amendment to
the water
use licence is required to allow Ezulwini to cease pumping
extraneous underground water. It sought, in the alternative, an order
authorising it to cease the pumping, based on environmental, health
and safety and cost considerations. In the further alternative
it
sought an order to the effect that, if it is obliged continue the
pumping, Gold Fields should contribute to the costs of such
pumping,
on the basis that it is continuing with underground operations at its
mine.
[9]
In addition to opposing Ezulwini’s application alongside the
Minister, Gold
Fields also filed a counter-application. As mentioned,
the Ezwulini and Gold Fields mines are inter-connected, although the
inter-connection
had been sealed. Gold Fields’
counter-application was premised on that fact. in It sought the
following orders:
‘
1.
Declaring that [Ezulwini] remains responsible for the pumping and
treatment of extraneous
water from the underground workings of the
Ezulwini mine until at least when the [first respondent] has issued a
closure certificate
in terms of section 43 of the [MPRDA] to
[Ezulwini] or such longer period as contemplated in section 24R of
[NEMA].
2.
Directing [Ezulwini] to take such steps as are necessary to maintain
the shafts
and pumping infrastructure required for the pumping and
treatment of the water from Ezulwini’s underground workings
where
it has ceased mining for such period as it remains responsible
for the pumping and treatment of extraneous water.
3.
Directing [Ezulwini] to allow the Fifth and Sixth Respondents access
to the Ezulwini
mine for purposes of inspecting the condition of the
entire Cooke 4 shaft and infrastructure required for purposes of the
pumping
and treatment of extraneous water from the Cooke 4 shaft.’
[10]
Gold Fields contended that Ezulwini’s proposed cessation of
water pumping had the potential
that the seal of the connected
underground areas could fail. This would result in the Gold Fields
mine being flooded with water
from the Ezulwini mine, resulting in
significant health and safety risks to the mining operations
conducted by Gold Fields, especially
to its employees.
[11]
The matter came before Fabricius J in December 2020 and was decided
without oral argument, and
judgment was delivered on 15 January 2021.
The learned judge determined the counter-application on the basis
that it was dispositive
of the disputed issues between the parties.
He issued a declaratory order in terms of which Ezulwini remained
responsible for the
pumping and treatment of extraneous water from
the underground workings of its mine. This would endure until at
least when the
first respondent has issued a closure certificate in
terms of section 43 of the MPRDA to it or such longer period as
contemplated
in section 24R of NEMA. The high court dismissed the
relief sought in prayers 2 and 3 of Gold Field’s
counter-application.
Costs were awarded in favour of Gold Fields.
[12]
The issue on appeal, as it was in the high court, is a crisp one. Is
Ezulwini obliged in law
to continue pumping extraneous water from its
underground mining works despite its cessation of underground mining?
If so, when
does the obligation cease? The answer requires the
interpretation of s 43 of the MPRDA and s 24N of NEMA.
[13]
The legislative framework regulating all aspects of mining and
mineral extraction has its origin
and is intended to give effect to
the rights enshrined in
s 24 of the Constitution.
[2]
The primary legislative instrument to give effect to
s 24 of the
Constitution is NEMA. It establishes a framework for the
authorisation of activities that impact or affect the environment,
and for management of such impacts so as to meet the objectives of s
24 of the Constitution.
[3]
[14]
The concept of the ‘environment’ is broadly and
extensively defined, in line with
the Constitution, to cover the
‘surroundings within which humans exist’ including
physical, biological, and chemical
elements, the interrelationship
between them and the social, economic, and cultural properties and
conditions that influence human
health and well-being.
[4]
[15]
Section 2 of NEMA provides for a set of principles that apply to the
actions of all organs of
state that may affect the environment. These
principles serve as a general framework within which environmental
management and
implementation plans must be formulated.
[5]
They also guide the interpretation, administration, and
implementation of NEMA, and any other law concerned with the
protection
or management of the environment.
[6]
[16]
NEMA provides for a system of environmental authorisation for
specified or listed activities.
In order to obtain an environmental
authorisation an assessment of the impact of the activity must be
undertaken. The authorisation,
when granted, generally requires the
implementation of, and adherence to, an environmental management
plan.
[17]
Mining and the extraction of mineral and other natural resources, is
an economic activity which
self-evidently has extensive impact and
effect upon the environment. The MPRDA is the primary legislative
instrument by which effect
is given to s 24 of the Constitution in
relation to mining activities. Section 2
(h)
of the MPRDA
provides that its object is:
‘
to
give effect to section 24 of the Constitution by ensuring that the
nation’s mineral and petroleum resources are developed
in an
orderly and ecologically sustainable manner while promoting
justifiable social and economic development.’
[18]
Chapter 4 of the MPRDA regulates the acquisition of mining and
prospecting rights and permits.
In relation to environmental
management, s 37 provides that:
‘
The
principles set out in s 2 of [NEMA],
(a)
apply to all prospecting and mining operations, as the case may be,
and any matter or activity
relating to such operation; and
(b)
serve as guidelines for the interpretation, administration, and
implementation of the environmental requirements of this Act.’
[19]
Section 38A of MPRDA stipulates that the Minister of Minerals and
Energy Resources (in this case
the first respondent) is responsible
for implementing the provisions of NEMA that relate to prospecting,
mining, exploration and
production or activities incidental thereto.
Subsection (2) requires that an environmental authorisation be issued
by the Minister
as a condition prior to the issuing of a permit or
granting of a right in terms of the MPRDA.
[20]
The legislative scheme requires that an
environmental authorization be obtained for the commencement of
mining activity or mining
operations. To obtain such authorization,
an environmental management program (EMP) must be submitted. Section
24N(2)
(a)
requires
that the EMP must, inter alia, contain information on any proposed
management, mitigation, protection, or remedial measures
that will be
undertaken. This includes environmental impacts or objectives which
relate to:
‘
(i)
planning and design;
(ii) pre-construction and
construction activity;
(iii) the operation or
undertaking of the activity in question;
(iv) the rehabilitation
of the environment; and
(v) closure, if
applicable.’
[21]
What is envisaged therefore, is that the conduct of the authorized
operation is subject to prior
assessment of potential impacts and
management in accordance with the EMP. The reference to closure
plainly refers to mining activities.
Subsection 3
(b)
requires
that the EMP must, where appropriate,
‘
contain
measures regulating responsibilities for any environmental damage,
pollution, pumping and treatment of polluted or extraneous
water or
ecological degradation which may occur inside and outside the
boundaries of the operation in question.’
[22]
Section 24N(7)(
c
) obliges the holder of an environmental
authorization,
to manage all
environmental impacts –
‘
(i)
in accordance with his or her approved environmental management
programme, where appropriate; and
(ii) as an integral part
of the prospecting or mining, exploration, or production operation,
unless the Minister responsible for
mineral resources directs
otherwise.’
[23]
The provisions of NEMA require that all environmental impacts which
arise from the conduct of
mining operations are managed in accordance
with an approved EMP or as an integral part of the production
process. They also require
that the holder plans for closure. This is
specifically stated in s 43(8) of the MPRDA. The effect is that all
mining operations
are subject to environmental management throughout
the life cycle of such activity. It accords with s 2
(e)
of
NEMA which embodies the principle that:
‘
Responsibility
for the environmental health and safety consequences of a policy,
programme, project, product, process, service or
activity exists
throughout its life cycle.’
[24]
Section 43 deals with mine closure. Subsection (1) states that the
holder of,
inter alia
, a mining permit,
‘
.
. . remains responsible for any environmental liability, pollution,
ecological degradation, the pumping and treatment of extraneous
water, compliance to the conditions of the environmental
authorisation and the management and sustainable closure thereof,
until
the Minister has issued a closure certificate in terms of this
Act to the holder or owner concerned.’
[25]
The section imposes an obligation upon the holder of a mining permit
to apply for a closure certificate
in specified circumstances. These
include the cessation of mining operations.
[7]
It provides for a set of procedures to be followed, and the
submission of information, plans, and reports as required by the
MPRDA
and NEMA.
[8]
Section 43(7)
requires that the holder of a mining permit must plan for, manage,
and implement such procedures and requirements
at mine closure as may
be prescribed.
These
are provided for in the
Mineral and Petroleum Resources Development
Regulations.
[9
]
Regulation 57
specifies what is required upon submission of an application for a
closure certificate. This includes a closure plan and an
environmental
risk report. A closure plan must include,
inter
alia
:
‘
(f)
a description of the methods to
decommission each prospecting or mining component and the mitigation
or management strategy proposed
to avoid, minimize, and manage
residual or latent impacts.
(g)
details
of any long-term management and maintenance expected.’
[10]
[26]
Section 43
(8)
states that procedures and requirements as they relate to
environmental authorisation for mine closure are prescribed in terms
of NEMA. These include
sections 24N
,
24P
and
24R
and the
Regulations
pertaining to the Financial Provision for Prospecting, Exploration,
Mining or Production Operations, 2015 (the Financial
Provision
Regulations).
[11]
For present
purposes it is not necessary to deal with these regulations. It
suffices to note that they deal extensively with a
holder’s
post-closure obligations. The closure plan submitted upon application
for closure, must also set out details of
the closure costs and
financial provision for maintenance and post-closure management as
provided in the Financial Provision Regulations.
[27]
Section 43(5) states that:
‘
No
closure certificate may be issued unless the Chief Inspector and each
government department charged with the administration of
any law
which relates to any matter affecting the environment have confirmed
in writing that the provisions pertaining to health
and safety and
management [of] pollution to water resources, the pumping and
treatment of extraneous water and compliance to the
conditions of the
environmental authorisation have been addressed.’
[28]
It is in the context of this legislative scheme and in the light of
the purposes it seeks to
achieve that s 43 of the MPRDA and
s 24N of NEMA must be interpreted. The approach to
interpretation of statutory instruments
is, by now, well settled and
it is unnecessary to repeat the much-cited passage from
Natal
Joint Municipal Pension Fund v Endumeni Municipality.
[12]
It is a unitary exercise, not a mechanical consideration of text,
context, and purpose.
[13]
More recently its essence was expressed by Unterhalter AJA in
Capitec
Bank Holdings Limited and Another v Coral Lagoon Investments 194
(Pty) Ltd and Others
as
follows:
‘
It
is the language used, understood in the context in which it is used,
and having regard to the purpose of the provision that constitutes
the unitary exercise of interpretation. I would only add that the
triad of text, context and purpose should not be used in a mechanical
fashion. It is the relationship between the words used, the concepts
expressed by those words and the place of the contested provision
within the scheme of the agreement (or instrument) as a whole that
constitutes the enterprise by recourse to which a coherent and
salient interpretation is determined. . .’
[14]
[29]
The legislative purpose is to
ensure that environmental impacts, whether positive or negative, are
identified, assessed, and managed.
In the case of mining activity
this includes the impacts and consequences of all aspects of mining
operations. It is to achieve
this purpose that the cessation of
mining operations and the closure of a mine is extensively regulated.
[30]
Ezulwini contended that it is under no legal obligation to continue
the pumping operations to
remove extraneous water seeping into its
now unworked underground mining area. It asserted that the pumping
operations were not
undertaken pursuant to an imposed obligation, but
in order to dewater the mining area, as a necessary adjunct to its
mining activity.
It obtained a water use licence, in terms of the
Water Act, as it was required to do. The water use licence conferred
upon it a
right of use. It does not, it argued, oblige it to exercise
such right.
[31]
In regard to s 43 of the MPRDA, Ezulwini argued that the section
establishes liability only,
and does not impose any obligations. The
section, it was submitted, must be read with s 24R of NEMA, which
deals with mine closure
upon environmental authorisation and s 24P
which requires financial provision for remediation of environmental
damage. None of
these provisions, according to Ezwulini, imposes an
obligation to pump extraneous water. Ezulwini is entitled, so it was
argued,
to cease such pumping because it has ceased underground
mining operations.
[32]
Counsel for the Minister submitted that the obligation to pump
extraneous water does not arise
from s 43(1) of MPRDA, but
pursuant to s 24N(7)
(f)
of NEMA. Ezulwini is the holder of a
mining permit. Its mining operations are authorised in terms of an
approved EMP. This constitutes
an environmental authorisation. The
section provides that:
‘
(7)
The holder and any person issued with an environmental authorisation─
.
. .
(f)
is responsible for any environmental damage, pollution, pumping
and treatment of polluted or extraneous water or ecological
degradation
as a result of his or her operations to which such right,
permit or environmental authorisation relates.’
[33]
It was argued on behalf of the Minister that the need to pump
extraneous water arises because
of the inherent conditions under
which the mining operations occurred. The seepage of water into the
underground mining area, is
a consequence of the mining operations,
which open voids into which the water flows. The cessation of pumping
will, over time,
result in the mining voids being filled. That
process necessarily impacts the immediate mining areas and the
dolomite formations
above the mine. Whether such impacts are positive
or negative, is, for present purposes, irrelevant. They are impacts
which flow
from the cessation of mining operations and, therefore,
fall within the ambit of the regulated process of mine closure. Gold
Fields
supported the position advanced by the Minister, save that it
argued that upon a proper interpretation, s 43(1) also imposes an
obligation upon Ezulwini to continue to pump extraneous water from
the mine until permitted to cease pumping by an environmental
authorisation issued for mine closure.
[34]
Sections 43(1) of the MPRDA and 24N(7)(
f
) of NEMA both employ
the phrase ‘responsible for . . . the pumping and treatment of
extraneous water’. Section 43(1),
stripped of unnecessary words
not relevant for the present, provides that, ‘the holder of a
mining permit remains responsible
for . . . the pumping and treatment
of extraneous water . . . until the Minister has issued a closure
certificate.’ The word
‘responsible’ in its
ordinary meaning means ‘having an obligation to do something’,
or ‘having control
over something or someone’. It also
means, being the cause of something, or having to account for or be
answerable for something
or to someone. It covers a broader ambit
than the word ‘liable’. The latter, in its ordinary
sense, connotes that which
is obligated by law. It is, by definition,
a narrower concept. The phrase ‘pumping and treatment’
when used with ‘responsible’
suggests responsibility for
the activity of pumping and treatment of water.
[35]
As indicated, Ezulwini contended that s 43(1) of the MPRDA deals with
legal liability, which
persists until a closure certificate is
issued. It does not impose an obligation and cannot be construed as
imposing an obligation
where no
antecedent
obligation existed.
(Emphasis added). There are several difficulties with the argument.
Section 43(1) addresses the status of obligations
of a holder of a
mining permit as they exist during the operation of the mine. It
directs that the holder remains responsible.
The use of the adjective
form ‘responsible’ and its noun ‘responsibility’,
is to be contrasted with ‘liability’
used elsewhere in s
43. Subsection (2) provides that ‘the Minister may ‘transfer
such environmental liabilities and
responsibilities’ as may be
identified as a closure plan to a person suitably qualified. In
subsection (12), which addresses
the closure of interconnected mines
of which social, health and environmental impacts are integrated, the
Minister may apportion
liability for mine closure.
[36]
Subsection (1) also makes use of the two concepts of responsibility
and liability. It does so
because it deals with both legal
obligations and activities. Pumping and treatment of extraneous water
is one such activity which
remains the responsibility of a holder
until mine closure.
[15]
S
ection
43(1), when read in conjunction with subsections (4), (5), (7) and
(8), obliges the holder of a mining permit to submit its
mining
operations to regulated closure. Section 24N(7)(
f
)
of NEMA is to similar effect.
[37]
In this case Ezulwini undertook the pumping of extraneous water from
its underground mining area.
The pumping was an essential and
integral component of its underground mining operation. It can hardly
be suggested that the ingress
of extraneous water was not an impact
of the act of mining underground. Ezulwini managed the impact during
its production operations
by pumping extraneous water, treating it,
and discharging it on the surface. It was authorized to do so in the
light of its approved
EMP and its water use licence.
[38]
It can also not be suggested that the cessation of pumping will have
no impact upon the immediate
physical environment of the underground
mining area, or that of the adjacent underground environment. On the
contrary, the cessation
of pumping will result in a significant
impact: the mine will fill with water and, in time, the dolomitic
voids above the mine,
from which the ground water has drained, will
fill. This impact plainly requires full and proper assessment before
it occurs, as
is required by the mine closure process.
[39]
Section 43(5), it should be stated, cannot be given effect to where
pumping of extraneous water
is stopped before the procedures for
closure have been met. The subsection envisages that ‘provisions
pertaining to the pumping
and treatment of extraneous water’
must be stipulated in the closure process. If not, the Chief
Inspector would not be able
to confirm that they ‘have been
addressed’. It cannot be the case that a mine operator who for
operational reasons
has pumped extraneous water from its mine works,
may simply cease pumping, and then allow the mine to fill with water
without assessment
of the consequential impacts. Such an
interpretation of s 43 of the MPRDA and s 24N of NEMA would give rise
to absurdity. It would,
in my view, conflict with s 2(4)(vii) of
NEMA, which serves as a guiding principle of interpretation. That
principle requires that:
‘
a
risk-averse and cautious approach is applied, which takes into
account the limits of current knowledge about the consequences
of
decisions and actions.’
[40]
This Court rejected a similar argument in
Harmony
Gold Mining Company Ltd v Regional Director: Free State Department of
Water Affairs and Others
.
[16]
In
that matter a directive had been issued in terms of s 19(3) of the
Water Act, requiring Harmony, which managed gold mining operations
on
behalf of a landowner, to take anti-pollution measures in respect of
water contamination caused by the mining operations. The
entire
mining operation and the land were sold to another entity, which
assumed the obligations imposed upon Harmony. When that
company went
into liquidation, Harmony resumed its obligations. Harmony, however,
took the position that since it no longer had
any connection to the
land, the directive was unenforceable against it since it was not the
landowner. It requested the directive
to be withdrawn. When that was
refused, it unsuccessfully challenged the decision on review. On
appeal, this Court held that,
‘
An
interpretation that does not impose the limitation on the Minister’s
powers under ss (3) contended for by Harmony is consistent
with the
purpose of the NWA (reducing and preventing pollution and degradation
of water resources); accords with the NEMA principles
that pollution
be avoided or minimized and remedied and that the costs of
preventing, minimizing, controlling and remedying pollution
be paid
for by those responsible for harming the environment; and gives
expression and substance to the constitutionally entrenched
right of
everyone to an environment that is not harmful to health or wellbeing
and to have it protected through reasonable measures
that, amongst
others, prevent pollution and ecological degradation.’
[17]
[41]
Ezulwini argued that its expert assessment was that allowing the
re watering of the mine
and the aquifer and dolomitic voids,
would be the best possible environmentally sensitive approach.
Whether that is so or not is,
for present purposes, of no relevance.
The assessment of such an impact and any risks which may flow from it
is a matter to be
addressed in the process of mine closure.
[42]
Upon a proper interpretation of s 43(1) of the MPRDA and s 24N
of NEMA, Ezulwini is
obliged to continue to pump and treat extraneous
water from its underground mining areas until authorized to cease
pumping in accordance
with the procedures for mine closure.
[43]
This brings me to the ancillary question raised in the appeal,
namely, when the obligation ceases.
The question arises because the
order of the high court incorporated a reference to s 24R of
NEMA.
[44]
Section 24R of NEMA has as its heading ‘mine closure and
environmental authorisation’.
It provides:
‘
(1)
Every holder, holder of an old order right and owner of works remain
responsible for any environmental
liability, pollution or ecological
degradation, the pumping and treatment of extraneous water, the
management and sustainable closure
thereof notwithstanding the
issuing of a closure certificate by the Minister responsible for
mineral resources in terms of the
[MPRDA] to the holder or owner
concerned.
(2)
When the Minister . . . issues a closure certificate, he or she must
return such portion
of the financial provision contemplated in
section 24P as the Minister may deem appropriate to the holder
concerned, but may retain
a portion of such financial provision
referred to in subsection (1) for any latent, residual or any other
environmental [impact],
including the pumping of polluted or
extraneous water, for a prescribed period after issuing a closure
certificate.’
[45]
Section 24R (1) of NEMA, in contrast to s 43(1) of the MPRDA,
however, at face value, extends
responsibility beyond the issuing of
a closure certificate. Counsel for Ezulwini argued that, in the first
instance, the section
relates to the provision of financial
guarantees for remediation of environmental damage. A mine owner is
required to make financial
provision at the stage that a mining
permit is sought. Section 24R therefore deals with the liability of
the permit holder after
closure has been certified. It does not
impose a perpetual obligation to pump extraneous water, even beyond
authorised closure
of the mine. Seen in this light, the
‘responsibility’ imposed by s 24R is confined to
‘liability’ and does
not impose an obligation to carry
out an activity such as continued pumping of extraneous water, after
closure.
[46]
In my view, it is unnecessary to decide the ambit of s 24R. It
addresses a post-closure situation
and the financial provision
provided in terms of s 24P of NEMA. It accords with the so-called
‘polluter pays’ principle
embodied in s 2(4)(
p
) of
NEMA. On the facts of this case, the process of mine closure has not
yet been initiated. Until that occurs and the process
of determining
appropriate conditions upon which the closure certificate may be
issued, any consideration of post-closure obligations
would be
premature, if not inappropriate.
[47]
The incorporation of a reference to s 24R of NEMA in the order of the
high court was, in the
circumstances, unwarranted. It follows that
the order as framed cannot be confirmed. However, for the reasons I
have set out, the
high court was correct in its determination of the
obligations of Ezulwini until a closure certificate is issued. The
appeal must,
subject to the correction of the order of the high
court, therefore fail. There is no reason why costs should not follow
the event.
[48]
In the result, the following order is made:
1
Paragraph 1 of the order of the high court is set aside and replaced
with
the following:
‘
It
is declared that Ezulwini Mining Company (Pty) Ltd remains
responsible for the pumping and treatment of extraneous water from
the underground workings of Ezulwini Mine until the Minister of
Mineral Resources and Energy has issued to it a closure certificate
in terms of
s 43
of the
Mineral and Petroleum Resources Development
Act 28 of 2002
.’
2
Otherwise, the appeal is dismissed with costs, including the costs of
two
counsel.
G GOOSEN
ACTING JUDGE OF APPEAL
Appearances
For
appellant:
C
D A Loxton SC (with him P Lazarus SC)
Instructed
by:
Warburton
Attorneys, Johannesburg
Lovius
Block, Bloemfontein
For
second respondent:
J
Rust SC (with her N Fourie)
Instructed
by:
State
Attorney, Pretoria
State
Attorney, Bloemfontein
For
fifth and sixth respondents:
G
L Grobler SC (with him J L Gildenhuys SC)
Instructed
by:
Werksmans
Attorneys, Johannesburg
Webbers
Attorneys, Bloemfontein
[1]
Section 21(
j
)
of the Water Act defines a ‘water use’ to include
‘removing, discharging or disposing of water found underground
if it is necessary for the efficient continuation of an activity or
for the safety of people’. Ezulwini holds a licence
issued in
terms of this section.
[2]
Section 24 provides:
Everyone has the right─
(a)
to an environment that is not harmful to their
health or well-being; and
(b)
to have the environment protected . . . through
reasonable legislative measures that─
(i)
prevent pollution and ecological degradation;
(ii)
promote conservation; and
(iii)
secure ecologically sustainable development and use of natural
resources while
promoting
justifiable
economic and social development.
[3]
See
Maccsand
(Pty) Ltd v City of Cape Town and Others
[2012]
ZACC 7
;
2012 (4) SA 181
(CC) para 9.
[4]
Section 1 of NEMA;
BP
Southern Africa (Pty) Ltd v MEC for Agriculture, Conservation,
Environment and Land Affairs
2004
(5) SA 124
(W) at 145B-E.
[5]
NEMA
s 2(1)
(a)
.
[6]
NEMA
s 2(1)
(e)
.
[7]
MPRDA
s 43(2)
(b)
.
[8]
MPRDA
s 43(4).
[9]
Mineral and Petroleum Resources Development Regulations, GNR446
in
GG38855 (3 June 2015).
[10]
Ibid Regulation 62.
[11]
Regulations
pertaining to the Financial Provision for Prospecting, Exploration,
Mining or Production Operations, GNR 1147 in GG
39425 (20 November
2015).
[12]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]
ZASCA 13
;
[2012] 2 All SA 262
(SCA);
2012 (4) SA 593
(SCA) para 18.
[13]
Chisuse
v Director-General, Department of Home Affairs
[2020]
ZACC 20
;
2020 (10) BCLR 1173
(CC);
2020 (6) SA 14
(CC) para 52
;
University of Johannesburg v Auckland Park Theological Seminary and
Another
[2021] ZACC 13
;
2021 (8) BCLR 807
(CC);
2021 (6) SA 1
(CC) para 65.
[14]
Capitec
Bank Holdings Limited and Another v Coral Lagoon Investments 194
(Pty) Ltd and Others
[2021]
ZASCA 99
;
[2021] 3 All SA 647
(SCA);
2022 (1) SA 100
(SCA) para 25.
[15]
The word ‘mine’ has a defined meaning in terms of s 1 of
the MPRDA. When –
‘
(a)
used as a noun, it means:
(i)
any excavation in the earth, including any portion under the sea or
under
other water or in any residue deposit, as well as any
borehole, whether being worked or not, made for the purpose of
searching
for or winning a mineral;
(ii)
any other place where a mineral resource is being extracted,
including the
mining area and all buildings, structures, machinery,
residue stockpiles, access roads or objects situated on such area
and which
are used or intended to be used in connection with such
searching, winning or extraction or processing of such mineral
resource
. . . ;
(b)
[When] used as a verb . . . it includes any operation or activity
which is incidental [to the mining or extraction of a mineral].’
‘
A
‘mining operation’ is defined to mean ‘any
operation relating to the act of mining and matters directly
incidental thereto.’
[16]
Harmony
Gold Mining Company Ltd v Regional Director: Free State Department
of Water Affairs and Others
[2013] ZASCA 206
;
[2014] 1 All SA 553
(SCA);
2014 (3) SA 149
(SCA).
[17]
Harmony
para 25.
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