Trojan Exploration Company Proprietary Ltd. and Another v Rustenburg Platinum Mines Ltd. and Others (609/94) [1996] ZASCA 74; 1996 (4) SA 499 (SCA); [1996] 4 All SA 121 (A); (31 May 1996)

Parties

Procedural Posture

Civil Appeal / Appeal From the Transvaal Provincial Division

Legal Issues

1. 1 Whether the holder of rights to precious metals may mine ore containing base metals and retain base metals for its own account when another holds the rights to base metals.
2. 2 Whether the 1966 cession of mineral rights should be interpreted to allow the precious metals holder to appropriate base metals.
3. 3 How competing real rights to minerals in the same ore are to be accommodated under South African law.

Ratio Decidendi

The Supreme Court of Appeal held that the rights to precious metals and base metals, as split in the 1966 cession, must be interpreted according to their ordinary meaning and the common law. The holder of precious metals rights may mine ore containing base metals, but is not entitled to appropriate and sell the base metals for its own exclusive benefit. Co-ownership arises upon severance of ore containing both types of minerals, and the rights of each holder must be exercised civiliter modo. The mixing of ores and subsequent sale by the precious metals holder does not extinguish the base metals holder's rights, and an accounting is required for the proceeds of base metals. Statutory...

Court Disposition

Appeal allowed with costs; declaratory relief granted in favour of the appellants regarding their rights to base metals in ore mined by the respondents.

Orders

• The application to amend the notice of motion by replacing the existing prayers with paragraphs 1 and 3 of the draft order is granted; any wasted costs caused are to be paid by the appellants.
• The application to amend by inserting paragraph 2 of the draft order is refused; the appellants are to pay the wasted costs (if any) of the application on an opposed basis.