Lonrho Mining SA (Pty) Ltd v Theta Mining (Pty) Ltd and Others (1481/2010) [2010] ZANCHC 57 (27 September 2010)

Lonrho Mining SA (Pty) Ltd v Theta Mining (Pty) Ltd and Others (1481/2010) [2010] ZANCHC 57 (27 September 2010)

The court found that the second applicant lacked locus standi to seek a stay of the arbitration proceedings, as it was not a party to the arbitration and had no direct or substantial legal interest in its outcome. The claim to a 20% shareholding in Theta was unsupported by any agreement or legal cause, and the alleged condition imposed by the Department of Minerals and Energy was ultra vires and unenforceable. The application was not urgent, as any urgency was self-imposed due to the applicants' delay in filing. Even if urgency and locus standi were established, the court was not persuaded to exercise its discretion to stay the arbitration, as the applicants' prospects of success in the...

Citation
[2010] ZANCHC 57
Parties
Applicant: Lonrho Mining SA (Pty) Ltd; Applicant: African Exploration Mining & Finance Corporation (Pty) Ltd; Respondent: Theta Mining (Pty) Ltd; Respondent: Sydney-on-Vaal/Vaalbos Communal Property Association; Respondent: Regional Director: Department of Minerals and Energy, Kimberley; Respondent: Minister of Minerals and Energy, Pretoria; Respondent: Director-General Department of Minerals and Energy, Pretoria; Respondent: Deputy Director-General Department of Minerals and Energy, PTA; Respondent: John Riet N.O.; Respondent: Joseph Victor Riet N.O.; Respondent: Cecil Deon Katz N.O.; Respondent: John Williams N.O.; Respondent: Joseph Joe Fletcher N.O.; Respondent: Samuel Phelo Kweetsang N.O.; Respondent: Selohela Joseph Pholoholo N.O.; Respondent: Edward David Carvell N.O.; Respondent: Ockert James Langeveldt N.O.; Respondent: Henry Walter George van Branden N.O.; Respondent: Sabina Susan Molethlegi N.O.; Respondent: Denise Desiree Samuels N.O.; Respondent: Rex van Schalkwyk
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
27 September 2010
Case Number
1481/2010
Procedural Posture
Stay Application / Application for Stay of Arbitration Proceedings Pending Finalisation of Action
Outcome
Application dismissed with costs on an attorney and client scale, including costs of two counsel.
Judges
HJ Lacock
Legal Topics
Stay of Arbitration, Locus Standi, Shareholders Agreement, Pre Emption Rights, Rectification of Share Register, Urgency in Applications
Civil Procedure Commercial and Corporate Stay of Arbitration Locus Standi Shareholders Agreement Pre Emption Rights Rectification of Share Register Urgency in Applications

Case Brief

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Parties

Lonrho Mining SA (Pty) Ltd

Applicant

African Exploration Mining & Finance Corporation (Pty) Ltd

Applicant

Theta Mining (Pty) Ltd

Respondent

Sydney-on-Vaal/Vaalbos Communal Property Association

Respondent

Regional Director: Department of Minerals and Energy, Kimberley

Respondent

Minister of Minerals and Energy, Pretoria

Respondent

Director-General Department of Minerals and Energy, Pretoria

Respondent

Deputy Director-General Department of Minerals and Energy, PTA

Respondent

John Riet N.O.

Respondent

Joseph Victor Riet N.O.

Respondent

Cecil Deon Katz N.O.

Respondent

John Williams N.O.

Respondent

Joseph Joe Fletcher N.O.

Respondent

Samuel Phelo Kweetsang N.O.

Respondent

Selohela Joseph Pholoholo N.O.

Respondent

Edward David Carvell N.O.

Respondent

Ockert James Langeveldt N.O.

Respondent

Henry Walter George van Branden N.O.

Respondent

Sabina Susan Molethlegi N.O.

Respondent

Denise Desiree Samuels N.O.

Respondent

Rex van Schalkwyk

Respondent

Procedural Posture

Stay Application / Application for Stay of Arbitration Proceedings Pending Finalisation of Action

Legal Issues

  1. 1 Whether the applicants are entitled to a stay of arbitration proceedings pending the outcome of the action.
  2. 2 Whether the second applicant has locus standi to seek the relief claimed.
  3. 3 Whether the application was brought with sufficient urgency.

Ratio Decidendi

The court found that the second applicant lacked locus standi to seek a stay of the arbitration proceedings, as it was not a party to the arbitration and had no direct or substantial legal interest in its outcome. The claim to a 20% shareholding in Theta was unsupported by any agreement or legal cause, and the alleged condition imposed by the Department of Minerals and Energy was ultra vires and unenforceable. The application was not urgent, as any urgency was self-imposed due to the applicants' delay in filing. Even if urgency and locus standi were established, the court was not persuaded to exercise its discretion to stay the arbitration, as the applicants' prospects of success in the...

Court Disposition

Application dismissed with costs on an attorney and client scale, including costs of two counsel.

Orders

  • The dismissal of the application is confirmed.
  • The applicants are directed to pay the opposing parties' costs on the attorney and client scale, including the costs of two counsel.