Minerals and Energy on pre-existing unused prospecting and mineral
rights

16 March 2009

The Department of Minerals and Energy (DME) today Monday, 16 March announced
that it has noted the judgment handed down in the Pretoria High Court on Friday
6 March 2009 in the case of Agri South Africa and another. The Minister of
minerals and energy, in which the plaintiffs contend that certain mineral
rights which were not being used for prospecting or mining were expropriated
when the Mineral and Petroleum Resources Development Act, no. 28 of 2002 (the
MPRDA) came into effect.

Bheki Khumalo, Spokesperson for the Department of Minerals and Energy said,
“Although the judgment may seem to be an early setback in the litigation
process with these particular plaintiffs concerning their unused mineral
rights, the effect of the judgment should not be overstated. The case is at a
preliminary stage. The court dismissed two exceptions raised by the department
against the plaintiffs’ claims. The merits of the main case remain to be
decided by the High Court.”

The department will continue to contest the case vigorously. It now has an
opportunity to file its plea in the high court responding to the plaintiffs’
claims and to raise defences in terms of the MPRDA and the Constitution. It
will take advice on further proceedings on appeal at the appropriate time.

“The department is confident that, in the end, the government’s view that
the MPRDA did not expropriate pre-existing mineral rights will prevail. That is
a question of vital public importance which may have to be resolved in the
final instance by the Constitutional Court,” Khumalo said.

Enquiries:
Bheki Khumalo
Cell: 082 773 2388
Tel: 012 679 9032

Issued by: Department of Minerals and Energy
16 March 2009