26 Mar 2015

SCA Rules on Abandonment of Mineral Right: Update from the Mining, Minerals & Energy Department

Practice Area(s): Mining, Minerals & Energy |

Last week the SCA ruled that abandonment of a mineral right is never presumed. In order for abandonment to be proved, there must be clear evidence that the holder intended the result with the full knowledge of the implications of abandonment – this intention is determined by the outward manifestation of the holder's conduct.

Although the ruling dealt with old-order mining authorisations under the Minerals Act rather than mineral rights in terms of the MPRDA, the rationale behind the decision would be the same. As such, the ruling is important for mineral right holders that may be adversely affected by a decision of the DMR to grant competing rights for the same minerals and area, on the basis that it presumed the original right had been abandoned, as well as those holders intending to abandon a right. Unless there is a clear indication of abandonment to the Minister: Mineral Resources, abandonment cannot be presumed.