Pan African Mineral Development Company (Pty) Ltd & Others v Aquila Steel (S Africa) (Pty) Ltd

ZIZA Limited held unused old order mineral rights over certain Kuruman properties in the Northern Cape. Within the one-year exclusivity period created by Item 8 of Schedule II to the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA), ZIZA lodged an application for a prospecting right under s 16 of the Act, which was accepted by the Regional Manager in August 2005. While ZIZA’s application was still pending, the Department of Mineral Resources accepted and granted a prospecting right over overlapping land and minerals to Aquila Steel (S Africa) (Pty) Ltd. This resulted in two prospecting rights being granted over the same land. Aquila later applied for and was refused a mining right because of the existence of ZIZA’s prospecting right. Aquila unsuccessfully pursued an internal appeal and then brought a PAJA review application in the High Court, which set aside the Minister’s decisions and substituted them with decisions in Aquila’s favour. ZIZA, PAMDC and the State appealed to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. Aquila’s cross-appeal was dismissed with costs. The High Court’s order was set aside and replaced with an order dismissing Aquila’s application with costs.

The case authoritatively clarifies the interpretation of Item 8 of Schedule II to the MPRDA, confirming that the exclusivity attached to unused old order rights endures until an application is finally granted or refused. It reinforces the principle that the Department of Mineral Resources may not accept or process competing applications while an earlier old order application is pending, and it provides important guidance on substantial compliance with statutory and regulatory requirements in administrative law.