Minister of Mineral Resources and Others v Sishen Iron Ore Company (Pty) Limited and Another

Before the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) came into force on 1 May 2004, Sishen Iron Ore Company (Pty) Ltd (Sishen) and ArcelorMittal South Africa Ltd (AMSA) held old order mining rights in undivided shares of 78.6% and 21.4% respectively over iron ore and quartzite on properties in the Northern Cape. These shares were lawfully approved and registered under the Minerals Act 50 of 1991, and each company held its own mining authorisation. After the MPRDA commenced, holders of old order mining rights were required to apply for conversion within five years. Sishen applied timeously and its conversion was approved. AMSA failed to apply for conversion within the statutory period. After AMSA’s old order right lapsed, Sishen applied for a mining right in respect of the 21.4% share previously held by AMSA, while Imperial Crown Trading 289 (Pty) Ltd applied for a prospecting right over the same land. The Department granted Imperial Crown a prospecting right. Sishen successfully reviewed that decision in the High Court, which held that Sishen’s conversion covered 100% of the mining right. The Minister and others appealed to the Constitutional Court.

Leave to appeal was granted. The appeal was upheld. The orders of the High Court and the Supreme Court of Appeal were set aside. It was declared that Sishen’s converted mining right covered only its 78.6% share, that AMSA’s old order mining right lapsed due to non-conversion, and that the grant of the prospecting right to Imperial Crown was not invalid on the basis asserted by Sishen.

The case is a leading authority on the interpretation of the transitional provisions of the MPRDA, particularly the conversion of old order mining rights held in undivided shares. It clarifies that the MPRDA treats each holder’s entitlement as a separate right for conversion purposes, reinforcing the transformative purpose of the Act and preventing the unintended perpetuation of old order entitlements. The judgment also limits the misuse of the Oudekraal principle in the mining context.