Minister of Mineral Resources and Energy and Others v Sustaining the Wild Coast NPC and Others

In 2014 the Minister of Mineral Resources and Energy granted an offshore exploration right to Impact Africa Limited, to be exercised by Shell Exploration and Production South Africa B.V. and BG International Limited, for seismic surveys along South Africa’s Wild Coast. The exploration right was renewed in 2017 and again in 2021. When Shell sought to commence seismic surveys in late 2021, several communities, individuals and environmental organisations applied urgently to the Eastern Cape High Court for interdictory and review relief. They challenged the grant and renewals of the exploration right on the basis of inadequate consultation, lack of procedural fairness, and failure to consider environmental, cultural and livelihood impacts. The High Court reviewed and set aside the original grant and both renewals. The Minister, Shell and Impact appealed to the Supreme Court of Appeal, arguing inter alia unreasonable delay under PAJA, failure to exhaust internal remedies, and errors in remedy. The respondents conditionally cross-appealed on environmental authorisation under NEMA.

The appeal was dismissed on the merits with costs. The High Court’s order was amended to suspend the setting aside of the grant and renewals of the exploration right pending the determination of an application for renewal under section 81 of the MPRDA.

This case is significant for affirming stringent procedural fairness and meaningful consultation requirements in offshore oil and gas exploration, particularly for coastal and customary communities. It clarifies the application of PAJA time limits where there is a failure to give notice of administrative decisions, reinforces exemptions from internal remedies in exceptional circumstances, and emphasises the constitutional obligation on courts to craft just and equitable remedies under section 172 of the Constitution.