Anglo Operations Ltd v Sandhurst Estates (Pty) Ltd (634/05) [2006] ZASCA 118; [2007] 2 All SA 567 (SCA); 2007 (2) SA 363 (SCA) (29 November 2006)

Anglo Operations Ltd v Sandhurst Estates (Pty) Ltd (634/05) [2006] ZASCA 118; [2007] 2 All SA 567 (SCA); 2007 (2) SA 363 (SCA) (29 November 2006)

The Supreme Court of Appeal held that the holder of mineral rights is entitled, by virtue of a term implied by law, to conduct open cast mining when it is reasonably necessary to remove the minerals, provided that it is done in a manner least injurious to the interests of the surface owner. The principle of lateral or subjacent support, as a rule of neighbour law, does not automatically apply to the relationship between mineral rights holder and surface owner in South African law. The property should be considered in the context of the larger coal field, and the rights acquired include ancillary rights necessary for mining. The diversion of the stream is permissible as it is reasonably...

Citation
[2006] SCA 146 (RSA)
Parties
Appellant: Anglo Operations Ltd; Respondent: Sandhurst Estates (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
29 November 2006
Case Number
634/05
Procedural Posture
Civil Appeal / Appeal From Pretoria High Court; Judgment Delivered
Outcome
Appeal allowed with costs, including costs of two counsel. The order of the court a quo is set aside and replaced with orders granting the appellant's application to supplement its founding affidavit, declaring entitlement to open cast mining and stream diversion, and directing the respondent to pay costs.
Judges
Brand, Howie, Mthiyane, Mlambo, Theron
Legal Topics
Mineral Rights, Open Cast Mining, Servitude Principles, Civiliter Modo, Stream Diversion, Constitutional Property Rights
Land and Property Commercial and Corporate Mineral Rights Open Cast Mining Servitude Principles Civiliter Modo Stream Diversion Constitutional Property Rights

Case Brief

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Parties

Anglo Operations Ltd

Appellant

Sandhurst Estates (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Pretoria High Court; Judgment Delivered

Legal Issues

  1. 1 Whether the holder of mineral rights is entitled to conduct open cast mining on the property absent express or tacit exclusion in the grant.
  2. 2 Whether the diversion of a stream to facilitate open cast mining is permissible under the mineral rights held.
  3. 3 Whether the principle of lateral or subjacent support applies to the relationship between mineral rights holder and surface owner.

Ratio Decidendi

The Supreme Court of Appeal held that the holder of mineral rights is entitled, by virtue of a term implied by law, to conduct open cast mining when it is reasonably necessary to remove the minerals, provided that it is done in a manner least injurious to the interests of the surface owner. The principle of lateral or subjacent support, as a rule of neighbour law, does not automatically apply to the relationship between mineral rights holder and surface owner in South African law. The property should be considered in the context of the larger coal field, and the rights acquired include ancillary rights necessary for mining. The diversion of the stream is permissible as it is reasonably...

Court Disposition

Appeal allowed with costs, including costs of two counsel. The order of the court a quo is set aside and replaced with orders granting the appellant's application to supplement its founding affidavit, declaring entitlement to open cast mining and stream diversion, and directing the respondent to pay costs.

Orders

  • The appeal is allowed with costs, including the costs occasioned by the employment of two counsel.
  • The order of the court a quo is set aside and substituted with: (a) The applicant's application to supplement its founding affidavit is granted; (b) It is declared that the applicant is entitled to undertake open cast mining and construct a stream diversion on the property as specified; (c) The respondent is...