Judgement on Agri SA welcomed

(Image: GCIS)

The Constitutional Court has dismissed an appeal brought by Agri SA against a decision of the Supreme Court of Appeal.

Agri-SA had instituted legal action against the Minister of Mineral Resources, Susan Shabangu, in the North Gauteng High Court.

The organisation had argued that the commencement of the application of the Mineral and Petroleum Resources Development Act (MPRDA) had effectively expropriated coal rights privately held by Sebenza mining company and undermined property rights in South Africa. At the time of the application, Sebenza had ceded the coal rights to Agri SA.

Appeal against decision

Agri SA's legal action against the minister was successful, and the North Gauteng High Court awarded it R700,000, instead of the R2m it had applied for, as compensation for the loss of its coal rights.

The minister then appealed the decision of the High Court to the Supreme Court of Appeal, which sustained the appeal. Dissatisfied with the Supreme Court ruling, Agri SA then approached the Constitutional Court, which subsequently dismissed the appeal.

The minister on Thursday said the judgement reaffirmed the Constitution, with regard to the custodianship of natural resources of the country, and further provided certainty to security of tenure in the mining industry.

"The Agri SA case has always been identified by some in the investor community as a risk to investment in the mining sector. The judgment therefore brings closure to this perception, and opens an avenue for investor appetite.

"We are very much delighted by the judgement, as it affirms that our work as the department is taking a trajectory that will see the sector's sustainable growth and transformation.

"The decision affirms the objects of the MPRDA in seeking to redress the injustices of the past, and bringing in fairness in the sector," said Shabangu.