Zincede Ngokwakho Housing (Pty) Ltd and Another v Matatiele Local Municipality

The Matatiele Local Municipality owned property known as Postershoek Quarry. In May 2012, Zincede Ngokwakho Housing (Pty) Ltd was granted a mining right under the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) to mine gravel on the property for ten years. Following litigation, Zincede and the Municipality concluded a settlement and a lease agreement in August 2016, linking the lease duration to the mining right and any extensions. In December 2020, with the Minister’s consent, Zincede ceded the mining right to Stonewell Quarry (Pty) Ltd t/a Dorning Crushers. Before expiry of the mining right, Stonewell applied for renewal, which by operation of s 24(5) of the MPRDA kept the right in force pending determination. Stonewell gave notice to extend the lease, but the Municipal Council declined to ratify the extension and resolved instead to sell the property. The Municipality then sought and obtained a High Court order declaring the lease invalid and evicting Zincede and Stonewell. The appellants appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing the Municipality’s application with costs.

The case clarifies that under South African law a valid mining right under the MPRDA independently entitles its holder to access and occupy land for mining purposes, and that a landowner cannot rely on lease expiry or municipal asset regulations to defeat an existing mining right. It reinforces the primacy of statutory mining rights and the duty of cooperation between landowners and mining right holders.