Norgold Investments (Pty) Ltd v Minister of Minerals and Energy of the Republic of South Africa and Others

The case concerned competing claims to prospecting rights over the farm De Goedeverwachting 332KT in Limpopo. Rhodium Reefs Ltd held an old order prospecting permit issued under the Minerals Act 50 of 1991 and applied in April 2005 to convert it into a prospecting right under item 6 of Schedule 2 of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The conversion application was lodged at the Mpumalanga Regional Office, although the land fell within Limpopo. The conversion was approved in January 2006 by the Deputy Director-General: Mineral Regulation acting under delegated authority from the Minister. Norgold Investments (Pty) Ltd later applied for a prospecting right under s 16 of the MPRDA in Limpopo, but its application was refused because Rhodium already held prospecting rights. Norgold sought to review and set aside the conversion decision, arguing inter alia that the application was lodged at the wrong regional office, that Rhodium’s old order permit had lapsed before conversion, that Rhodium had not conducted prospecting immediately before the MPRDA commenced, and that the decision-maker lacked authority.

The appeal was dismissed with costs, including the costs of two counsel, and the decision of the North Gauteng High Court was upheld.

The case clarifies the interpretation of transitional arrangements under the MPRDA, particularly item 6 of Schedule 2. It confirms that procedural requirements relating to the lodging of applications at specific regional offices are directory when their purpose is administrative, provided the application reaches the competent decision-maker. The judgment also protects holders of old order rights against prejudice arising from administrative delays and affirms the validity of ministerial delegations under s 103 of the MPRDA.