Rhino Plat (Pty) Ltd and Another v Minister of Minerals and Energy and Others (34514/2008) [2009] ZAGPPHC 42 (28 April 2009)

Rhino Plat (Pty) Ltd and Another v Minister of Minerals and Energy and Others (34514/2008) [2009] ZAGPPHC 42 (28 April 2009)

The court found that the only reason advanced for refusal of the section 11 application was the perceived inadequacy of historically disadvantaged shareholding, which was not supported by the facts. The joint venture agreement allocated 26% equity to a 90% black African owned company, and further provided that any future disposal of interest would be to a BEE entity, thereby promoting the transformation objectives of section 2(d) of the MPRDA. The applicants met all requirements under section 17(1), and the refusal decision was not justified. The court held that remitting the matter would serve no purpose and that the applicants were entitled to the relief sought, including substitution...

Citation
[2009] ZAGPPHC 42
Parties
Applicant: Rhino Plat (Pty) Ltd; Applicant: Beverley Investments Ltd; Respondent: Minister of Minerals and Energy of the RSA; Respondent: Director General of the Department of Minerals and Energy; Respondent: Regional Manager, Limpopo Region: Polokwane, Department of Minerals and Energy; Respondent: Umtha Resources (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
28 April 2009
Case Number
34514/2008
Procedural Posture
Review Application / First Instance Judgment on Review
Outcome
Application granted; Minister's refusal set aside and consent to transfer ordered.
Judges
Seriti
Legal Topics
Mineral and Petroleum Resources Development Act, Review of Administrative Action, Prospecting Rights Transfer, Black Economic Empowerment, Section 2d Objects, Section 11 Refusal
Administrative Law Land and Property Mineral and Petroleum Resources Development Act Review of Administrative Action Prospecting Rights Transfer Black Economic Empowerment Section 2d Objects Section 11 Refusal

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Parties

Rhino Plat (Pty) Ltd

Applicant

Beverley Investments Ltd

Applicant

Minister of Minerals and Energy of the RSA

Respondent

Director General of the Department of Minerals and Energy

Respondent

Regional Manager, Limpopo Region: Polokwane, Department of Minerals and Energy

Respondent

Umtha Resources (Pty) Ltd

Respondent

Procedural Posture

Review Application / First Instance Judgment on Review

Legal Issues

  1. 1 Whether the Minister's refusal to consent to the transfer of prospecting rights under section 11 of the MPRDA was lawful.
  2. 2 Whether the joint venture agreement structure undermined the transformation objectives of section 2(d) of the MPRDA.
  3. 3 Whether the court should substitute its own decision for that of the Minister or remit the matter for reconsideration.

Ratio Decidendi

The court found that the only reason advanced for refusal of the section 11 application was the perceived inadequacy of historically disadvantaged shareholding, which was not supported by the facts. The joint venture agreement allocated 26% equity to a 90% black African owned company, and further provided that any future disposal of interest would be to a BEE entity, thereby promoting the transformation objectives of section 2(d) of the MPRDA. The applicants met all requirements under section 17(1), and the refusal decision was not justified. The court held that remitting the matter would serve no purpose and that the applicants were entitled to the relief sought, including substitution...

Court Disposition

Application granted; Minister's refusal set aside and consent to transfer ordered.

Orders

  • The decision of the respondents to refuse the application in terms of section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002 is set aside.
  • The first respondent is ordered forthwith to consent to the applicants' application for transfer of prospecting rights.