South African court judgment bolsters expropriation charge over Black Economic Empowerment legislation in the mining sector

By Damon Vis-Dunbar
23 March 2009

A South African judicial ruling has opened the door for two plaintiffs to seek compensation for alleged expropriation of their mineral rights, in a case that echoes the complaints made by European investors in a pending international arbitration against South Africa under bilateral investment treaties.

The judgment* comes in response to claims lodged with the Pretoria High Court, in which the plaintiffs (Agri S.A. and AM van Rooyen) argue that their rights to coal and clay were expropriated without compensation in 2004 under the Minerals and Petroleum Resources Development Act (MPRD).

The MPRD Act is intended to boost the black population’s participation in the mining sector, and forms part of a wider effort by the South African government to address the country’s racial inequalities rooted in a legacy of apartheid.

Under the Act, private ownership of mineral rights was replaced with a system of licenses offered by the government. Companies who held mineral rights under the old regime were given an opportunity to apply for licenses under new regime; however, mining companies complain that so-called new order rights are not equivalent in value to the rights they enjoyed previously.

The Ministry of Minerals and Energy sought to dismiss the lawsuits by Agri S.A. and AM van Rooyen on the ground that they fail to provide sufficient facts to support their claims.

In 6 March 2009 ruling, however, the High Court has rejected the Ministry's charge that the plaintiffs' claims are "vague", allowing the claims to proceed to the merits stage.

Trafficking cops postponed

Tue, 24 Mar 2009 17:02
The case against four top cops arrested on charges related to drug trafficking was postponed in the Roodepoort Magistrate's Court on Tuesday, police said.
Crime intelligence spokesperson Senior Superintendent Tummi Golding said the case was postponed to Wednesday for bail application.
Senior Superintendent Dumisane Jwara, 45, Captain Landro Mokgosani, 40, Captain Victor Julie, 38, and Captain Sakhepi Caiphus Shange, 43, were in the meantime detained in the Johannesburg Central High Risk Facility Unit.
"The reason they were detained at the high risk facility unit was because of the merit of the case," Golding said.

ANC amends tribunal views

Tue, 24 Mar 2009 16:45

The African National Congress said on Tuesday its view on establishing a media tribunal was "shifting".
Spokesperson Jessie Duarte said it was "not the time or place for a tribunal".
Duarte was speaking at a debate on political party's media strategies ahead of the upcoming national elections.
The ANC had proposed a media tribunal at its Polokwane conference in December 2007.
Duarte said the proposal was "still on the table" but that views about the setting up of a media tribunal were shifting.
The party was, however, still going ahead with earlier proposals to set up an ANC newspaper and had started the process with newsletters aimed at particular communities.
Duarte said the media in South Africa was historically hostile towards the ANC and still remained so.