African Exploration Mining and Finance Corporation (Pty) Ltd and Another v Minister of Mineral Resources and Others

AFEX applied in February 2010 for a coal prospecting right over land (Klippoortje 32 IS). The application was refused because Tavistock Collieries held an old order mining right over the same land. Tavistock’s old order right was converted into a new mining right in March 2010 under item 7 of Schedule II to the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). AFEX sought to review both the refusal of its prospecting application and the conversion decision, arguing that Tavistock had ceased exercising its mining right prior to conversion due to alleged non-compliance with mining rate obligations under a notarial mineral lease.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the nature of old order mining rights under the MPRDA as statutory transitional rights and confirms that, where the requirements of item 7 of Schedule II are met, the Minister has no discretion to refuse conversion. It reinforces security of tenure during the transitional regime and limits third-party challenges to converted mining rights.