A project report submitted to the Faculty of Engineering, University of the Witwatersrand, Johannesburg, in partial fulfillment of the requirements for the degree of Master of Science in Engineering. / This study addresses a principal issue associated with the small-scale mining industry in South Africa, namely mineral rights. Firstly it defines a small-scale mine and its role in the South African economy. It then examines the current mineral rights policy and the conditions under which the current mineral rights policy could be reformed in order to encourage the growth of the small-scale mining sector. Various models and proposals have been examined in an attempt to suggest the most suitable policy in terms of acquisition and distribution of mineral rights, Acquisition of mineral rights remains one of the major obstacles facing small-scale mining companies. The need to change the legal framework surrounding the acquisition of mineral rights is clearly demonstrated in this project report. Simplification of the legal framework would lead to easy access to mineral rights by both large-scale and small-scale, South African and foreign mining companies and remove the traditional complexities associated with the current South African mineral rights policy which tend to sterilise mineral rights. These complexities include subdivision of mineral rights, potential lockup of mineral rights by private companies and individuals and the State. Analysis of methods to rationalise the mineral rights policy have demonstrated that nationalisation and expropriation of mineral rights are counter productive and can not be used as vehicles for access to mineral rights. In order to strengthen the small-scale mining industry changes to the mineral rights have been proposed. A model mineral rights policy framework has been designed to promote small-scale mining. Introduction of a mineral fights tax, taking into consideration the specifics of the South African mining industry, similar to that of Swaziland of 1958 is proposed as one of the ways of discouraging the sterilisation of mineral rights. It introduces a cost element in the locking up of mineral rights by private companies and individuals. It is envisaged that when the cost of holding these mineral rights is greater than the benefits of holding the mineral rights, mineral rights holders would relinquish them thereby allowing access to these mineral rights to other interested parties. The relinquished mineral rights should revert to the State, which in tum should allocate them to qualified mining companies. Due considerations of the unique characteristics of the South African mining industry need to be taken into account when designing any mineral rights policy. Implementation of any such policy should therefore be done with the consensus of the mining industry. Access to State mineral rights is also considered vital. Whilst it is important to provide the small-scale mining sector with access to mineral rights it is recognised that the success of the sector depends many factors, mineral rights among others. A holistic approach that take into all facets of small-scale mining are included in the proposed policy framework for the development of the small-scale mining industry in South Africa. / AC2017

A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Science in Engineering Johannesburg 2015 / Regardless of the strategic role that mining plays in South Africa‟s economic growth and development, there are perceptions that mining benefits are still enjoyed by a few elite individuals. This is partly due to high expectations from lower level workers in the sector and communities where mining takes place. Failures in the implementation of some of the policies that are social in nature are making people question the wisdom of the current mining legislation, the Mineral and Petroleum Resources Development Act (MPRDA). The main question of this research paper is whether the MPRDA, in its current form, is a suitable mining legislative framework that can usher a better dispensation for all or whether there is a need to overhaul it in order to deliver the desired end results that are expected by the majority of South Africans. It is against this background that this research was undertaken, by studying best practice in other mining jurisdictions and conducting a survey of those involved in the South African mining sector. From the research and surveys, recommendations are proposed on what amendments could be effected on the MPRDA to make the South African mining sector more attractive and simultaneously, meet the citizens‟ expectations.

Over the past decade, the regulation of mining in South Africa has undergone a fundamental transformation in order to promote equitable access to the nation’s mineral and petroleum resources. The Mineral and Petroleum Resources Development Act 28 of 2002, drastically changed the regulation of mining by placing the nation’s mineral and petroleum resources under the custodianship of the state. The transformative objectives of resource reform, as envisaged in the Constitution of the Republic of South Africa, 1996, could however not be achieved without a measure of sacrifice -- most notably, that which had to be shouldered by the owners of the land in which the minerals are contained. Under common law, minerals vested in the owners of land and no one could compel them to extract or consent to the extraction of these minerals. Landowners were able to safeguard their land from mining activities by refusing to consent to mining. The Mineral and Petroleum Resources Development Act, 2002, changed this by providing that landowners could no longer prevent the state from granting qualifying applicants authorisation to mine. The transformative objectives of resource reform, have inevitably made great inroads into a landowner’s rights to use and enjoy his property optimally. The main focus of this study revolves around the limiting impact of South Africa’s current mineral-law dispensation on township development, and conversely, how township development impairs or limits the mining of coal. For a better understanding of the limitations which the current legislative provisions create in respect of the rights of landowners and holders of mining rights, a brief evaluation of the historical development of the right to mine coal is provided. The entitlements and reciprocal obligations of holders of mining rights and owners of the affected land are considered, and the parties’ legal remedies to resist interference in their respective rights are explored. In the process of considering possible remedies to resolve the conflict which inevitably arises, I explain why English-law principles governing lateral support (support owed by two adjacent properties [neighbour law]), and subjacent support (where the landowner may not be deprived of the vertical support his property derives from the sub-surface minerals) were incorrectly transplanted into our law. In Anglo Operations Ltd v Sandhurst Estates (Pty) Ltd, the South African Supreme Court of Appeal rejected the previously-held view that the right to subjacent support -- like the right to lateral support -- is a natural property right incidental to the ownership of the land. It was further held that conflict between holders of rights to minerals and owners of land should be resolved, not in accordance with English-law principles of neighbour law, but in terms of the law developed for rights relating to the use of servitudes. In summary, the court found that where the parties have not specifically contracted against the specific action (such as opencast or planned-subsidence mining), and provided that it was reasonably necessary for the mining right holder to use this invasive method, he may do so, so long as he does so in the manner least injurious to the entitlements of the surface owner. This decision, however, did not take into account the changes brought about by the comprehensive statutory framework of the Mineral and Petroleum Resources Development Act 28 of 2002 which I argue has replaced the earlier servitude construction. In this dissertation I consider whether possible solutions to resolve the conflict can be found in the principles relating to neighbour law, and whether the principles governing the use of servitudes remain relevant in resolving conflicts between landowners and holders of mining rights. I evaluate possible legal remedies and place special emphasis on the constitutionality of the curtailment of a landowner’s use and enjoyment of his property resulting from mining activities on or under his land. I further consider whether the exercise of a mining right, granted by the state, which results in a serious infringement of a landowner’s ownership, could in certain circumstances amount to a deprivation or possibly an expropriation in terms of section 25 of the Constitution. I discuss the position where the state’s regulatory interference is so severe that it deprives a landowner of the ability to exercise any, or a substantial portion of his ownership entitlements. I evaluate the possibility that such interference may constitute de facto expropriation for which compensation may be claimed. In the penultimate chapter I briefly mention how the relationship between landowners and holders of mining rights is managed and conflict is defused in other jurisdictions such as China, Australia, the United States of America, India, Germany and Swaziland. I conclude this dissertation with suggestions on possible ways in which the conflict may be resolved or at least minimised in future. / Die regulering van mynbou in Suid-Afrika het die afgelope dekade ‘n fundamentele verandering ondergaan ten einde breër toegang tot die nasie se minerale en petroleum hulpbronne te bevorder. Die Mineral and Petroleum Resources Development Act,6 Wet 28 van 2002, het ‘n radikale ommekeer in die mynbou industrie meegebring deurdat die regulering van mynbou aktiwiteite onder die toesig en beheer van die nasionale regering geplaas is. Die transformatiewe oogmerk van hulpbron hervorming ingevolge die Grondwet van die Republiek van Suid-Afrika kon egter nie geskied sonder ‘n mate van opoffering nie. Die grootste aanslag van die nuwe mineraalreg bedeling word sonder twyfel gevoel deur die eienaars van grond ten opsigte waarvan mynregte deur die regering aan ‘n ander party toegeken word. Ingevolge die gemenereg was die eienaar van grond voorheen ook die eienaar van die minerale wat in die grond voorgekom het. Gevolglik was dit onder die uitsluitlike beheer van die eienaar om te bepaal of enigiemand anders die reg kon verkry om minerale op of in die betrokke grond te ontgin. Na aanvang van die inwerkingtreding van die Mineral and Petroleum Resources Development Act is hierdie posisie egter omvêrgewerp aangesien die regering voortaan die bevoegdheid het om te bepaal wie en op watter voorwaardes iemand die reg verkry om minerale te ontgin. Die toekenning van die reg om minerale te ontgin op ‘n ander se eiendom sonder die eienaar se toestemming, maak dus ernstige inbreuk op sy regte. Grondeienaars se bevoegdhede wat uit hul eiendomsreg voortvloei word in talle gevalle ernstig ingeperk ten einde die oogmerke van hulpbron transformasie te bereik. Die ondersoek wat hierna volg, is daarop toegespits om die beperkende aanslag van die regulering van steenkoolmynbou-aktiwiteite op die ontwikkeling van dorpsgebiede asook dié van die ontwikkeling van dorpsgebiedie op steenkoolmynbou beter te verstaan. Ten einde hierdie invloed beter te verstaan, word die geskiedkundige ontwikkeling van die reg om minerale in Suid-Afrika te ontgin kortliks oorweeg. Die regte en verpligtinge van die houers van mynregte en die eienaars van die grond wat deur die uitoefening daarvan geraak word, asook die remedies waaroor die onderskye partye beskik ten einde hul regte teen inbreukmaking deur die ander party te beskerm, word daarna oorweeg. In genoemde ondersoek toon ek aan waarom die Engelsregtelike burereg- beginsels van laterale steun en onderstut nie toepassing in ons reg behoort te vind nie en waarom die botsing wat ontstaan vanweë die uitoefening van die grondeienaar en die houer van ‘n mynreg se regte liefs versoen moet word deur die Suid-Afrikaanse serwituutreg beginsels toe te pas soos aangetoon in die beslissing van Anglo Operations Ltd v Sandhurst Estates. Hiedie beslissing het egter nie die veranderinge wat meegebring is deur die nuwe bedeling van die Mineral and Petroleum Resources Development Act in ag geneem nie en daar word gevolglik aangevoer dat die serwituut beginsels vervang is deur ‘n breedvoerige wetgewende stelsel. Die grondwetlikheid van die beperking op die bevoegdhede van ‘n grondeienaar om sy eiendom te gebruik en te geniet, word ondersoek, asook of daar enige gronde vir ‘n eis om skadevergoeding mag wees. In besonder word daar oorweeg of die leerstuk van konstruktiewe onteiening moontlik toepassing kan vind in gevalle waar die staat se regulering ‘n uitermatige beperkende effek het op die bevoegdhede van ‘n grondeienaar om sy eiendomsreg uit te oefen. In die voorlaaste hoofstuk ontleed ek baie kortliks hoe die verhouding tussen eienaars van grond in mynbougebiede en houers van regte om minerale te ontgin in Sjina, Australië, die Verenigde State van Amerika, Indië, Duitsland en Swaziland gereguleer word. Ter afsluiting word aandag gegee aan moontlike maniere om die belangebotsing tussen die betrokke partye uit die weg te ruim of te beperk. / Private Law / LL.M.

Over the past decade, the regulation of mining in South Africa has undergone a fundamental transformation in order to promote equitable access to the nation’s mineral and petroleum resources. The Mineral and Petroleum Resources Development Act 28 of 2002, drastically changed the regulation of mining by placing the nation’s mineral and petroleum resources under the custodianship of the state. The transformative objectives of resource reform, as envisaged in the Constitution of the Republic of South Africa, 1996, could however not be achieved without a measure of sacrifice -- most notably, that which had to be shouldered by the owners of the land in which the minerals are contained. Under common law, minerals vested in the owners of land and no one could compel them to extract or consent to the extraction of these minerals. Landowners were able to safeguard their land from mining activities by refusing to consent to mining. The Mineral and Petroleum Resources Development Act, 2002, changed this by providing that landowners could no longer prevent the state from granting qualifying applicants authorisation to mine. The transformative objectives of resource reform, have inevitably made great inroads into a landowner’s rights to use and enjoy his property optimally. The main focus of this study revolves around the limiting impact of South Africa’s current mineral-law dispensation on township development, and conversely, how township development impairs or limits the mining of coal. For a better understanding of the limitations which the current legislative provisions create in respect of the rights of landowners and holders of mining rights, a brief evaluation of the historical development of the right to mine coal is provided. The entitlements and reciprocal obligations of holders of mining rights and owners of the affected land are considered, and the parties’ legal remedies to resist interference in their respective rights are explored. In the process of considering possible remedies to resolve the conflict which inevitably arises, I explain why English-law principles governing lateral support (support owed by two adjacent properties [neighbour law]), and subjacent support (where the landowner may not be deprived of the vertical support his property derives from the sub-surface minerals) were incorrectly transplanted into our law. In Anglo Operations Ltd v Sandhurst Estates (Pty) Ltd, the South African Supreme Court of Appeal rejected the previously-held view that the right to subjacent support -- like the right to lateral support -- is a natural property right incidental to the ownership of the land. It was further held that conflict between holders of rights to minerals and owners of land should be resolved, not in accordance with English-law principles of neighbour law, but in terms of the law developed for rights relating to the use of servitudes. In summary, the court found that where the parties have not specifically contracted against the specific action (such as opencast or planned-subsidence mining), and provided that it was reasonably necessary for the mining right holder to use this invasive method, he may do so, so long as he does so in the manner least injurious to the entitlements of the surface owner. This decision, however, did not take into account the changes brought about by the comprehensive statutory framework of the Mineral and Petroleum Resources Development Act 28 of 2002 which I argue has replaced the earlier servitude construction. In this dissertation I consider whether possible solutions to resolve the conflict can be found in the principles relating to neighbour law, and whether the principles governing the use of servitudes remain relevant in resolving conflicts between landowners and holders of mining rights. I evaluate possible legal remedies and place special emphasis on the constitutionality of the curtailment of a landowner’s use and enjoyment of his property resulting from mining activities on or under his land. I further consider whether the exercise of a mining right, granted by the state, which results in a serious infringement of a landowner’s ownership, could in certain circumstances amount to a deprivation or possibly an expropriation in terms of section 25 of the Constitution. I discuss the position where the state’s regulatory interference is so severe that it deprives a landowner of the ability to exercise any, or a substantial portion of his ownership entitlements. I evaluate the possibility that such interference may constitute de facto expropriation for which compensation may be claimed. In the penultimate chapter I briefly mention how the relationship between landowners and holders of mining rights is managed and conflict is defused in other jurisdictions such as China, Australia, the United States of America, India, Germany and Swaziland. I conclude this dissertation with suggestions on possible ways in which the conflict may be resolved or at least minimised in future. / Die regulering van mynbou in Suid-Afrika het die afgelope dekade ‘n fundamentele verandering ondergaan ten einde breër toegang tot die nasie se minerale en petroleum hulpbronne te bevorder. Die Mineral and Petroleum Resources Development Act,6 Wet 28 van 2002, het ‘n radikale ommekeer in die mynbou industrie meegebring deurdat die regulering van mynbou aktiwiteite onder die toesig en beheer van die nasionale regering geplaas is. Die transformatiewe oogmerk van hulpbron hervorming ingevolge die Grondwet van die Republiek van Suid-Afrika kon egter nie geskied sonder ‘n mate van opoffering nie. Die grootste aanslag van die nuwe mineraalreg bedeling word sonder twyfel gevoel deur die eienaars van grond ten opsigte waarvan mynregte deur die regering aan ‘n ander party toegeken word. Ingevolge die gemenereg was die eienaar van grond voorheen ook die eienaar van die minerale wat in die grond voorgekom het. Gevolglik was dit onder die uitsluitlike beheer van die eienaar om te bepaal of enigiemand anders die reg kon verkry om minerale op of in die betrokke grond te ontgin. Na aanvang van die inwerkingtreding van die Mineral and Petroleum Resources Development Act is hierdie posisie egter omvêrgewerp aangesien die regering voortaan die bevoegdheid het om te bepaal wie en op watter voorwaardes iemand die reg verkry om minerale te ontgin. Die toekenning van die reg om minerale te ontgin op ‘n ander se eiendom sonder die eienaar se toestemming, maak dus ernstige inbreuk op sy regte. Grondeienaars se bevoegdhede wat uit hul eiendomsreg voortvloei word in talle gevalle ernstig ingeperk ten einde die oogmerke van hulpbron transformasie te bereik. Die ondersoek wat hierna volg, is daarop toegespits om die beperkende aanslag van die regulering van steenkoolmynbou-aktiwiteite op die ontwikkeling van dorpsgebiede asook dié van die ontwikkeling van dorpsgebiedie op steenkoolmynbou beter te verstaan. Ten einde hierdie invloed beter te verstaan, word die geskiedkundige ontwikkeling van die reg om minerale in Suid-Afrika te ontgin kortliks oorweeg. Die regte en verpligtinge van die houers van mynregte en die eienaars van die grond wat deur die uitoefening daarvan geraak word, asook die remedies waaroor die onderskye partye beskik ten einde hul regte teen inbreukmaking deur die ander party te beskerm, word daarna oorweeg. In genoemde ondersoek toon ek aan waarom die Engelsregtelike burereg- beginsels van laterale steun en onderstut nie toepassing in ons reg behoort te vind nie en waarom die botsing wat ontstaan vanweë die uitoefening van die grondeienaar en die houer van ‘n mynreg se regte liefs versoen moet word deur die Suid-Afrikaanse serwituutreg beginsels toe te pas soos aangetoon in die beslissing van Anglo Operations Ltd v Sandhurst Estates. Hiedie beslissing het egter nie die veranderinge wat meegebring is deur die nuwe bedeling van die Mineral and Petroleum Resources Development Act in ag geneem nie en daar word gevolglik aangevoer dat die serwituut beginsels vervang is deur ‘n breedvoerige wetgewende stelsel. Die grondwetlikheid van die beperking op die bevoegdhede van ‘n grondeienaar om sy eiendom te gebruik en te geniet, word ondersoek, asook of daar enige gronde vir ‘n eis om skadevergoeding mag wees. In besonder word daar oorweeg of die leerstuk van konstruktiewe onteiening moontlik toepassing kan vind in gevalle waar die staat se regulering ‘n uitermatige beperkende effek het op die bevoegdhede van ‘n grondeienaar om sy eiendomsreg uit te oefen. In die voorlaaste hoofstuk ontleed ek baie kortliks hoe die verhouding tussen eienaars van grond in mynbougebiede en houers van regte om minerale te ontgin in Sjina, Australië, die Verenigde State van Amerika, Indië, Duitsland en Swaziland gereguleer word. Ter afsluiting word aandag gegee aan moontlike maniere om die belangebotsing tussen die betrokke partye uit die weg te ruim of te beperk. / Private Law / LL. M.