Werksmans Director Chris Stevens speaks on mining of associated minerals, subdivision of mining rights, undivided shares & joint ventures at the Junior Mining & Exploration Conference 8th November 2012.

1. JUNIOR MINING AND
EXPLORATION
MINING OF ASSOCIATED MINERALS
SUBDIVISION OF MINING RIGHTS
UNDIVIDED SHARES
JOINT VENTURES

2. MINING OF ASSOCIATED MINERALS
 INTRODUCTION
Mining of mixed or associated minerals
Conflicts normally arise in relation to platinum and
chrome, gold and platinum, and manganese and iron ore
 COMMON LAW POSITION PRE MINERALS ACT
Leave minerals underground
Stockpile
Dispose and account to mineral right holder
 MINING RIGHTS ACT
Definition of precious metals includes the ores of precious
metals
Effect of Trojan Exploration v RPM 1996 (4) SA 490 (A)
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3. MINING OF ASSOCIATED MINERALS
 MINERALS ACT
Section 5(3)
Old order mining rights
 Section 5(3) still applicable
 MPRDA
Converted rights and terms and conditions
 Only convert what one has
New rights
 No equivalent of section 5(3)
Reference to ores and groups of minerals
Who owns other minerals
 State or landowner
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4. MINING OF ASSOCIATED MINERALS
Apply under section 16 and 102 of MPRDA to protect other
minerals
Section 49 request to Minister
 REMEDIES
Appeal
 Section 96 of the MPRDA
 Section 16(2)(b) and 22(2)(b) of the MPRDA
Objections
 Health and safety
 Environmental
 Optimal mining
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5. SUBDIVISION
 INTRODUCTION
Ownership in undivided shares versus divided ownership
 COMMON LAW POSITION
Mineral rights were capable of being partitioned or divided
 SUBDIVISION OF AGRICULTURAL LAND ACT
Subdivision does not apply to prospecting, mining or mineral
rights
Will apply if mineral rights not separated from land ownership
 MINING RIGHTS ACT
Mentioned subdivision of mining leases
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6. SUBDIVISION
 MINERALS ACT
 No subdivision of mining authorisations
 Common law mineral rights could be subdivided
 Temporary authorisation under section 10
 MPRDA
 No mention of subdivision
 Sections 11 and 102 of the MRA
 Policy of the DMR:
 no subdivision or section 11
 numbering system
 no relationship between holder and State
 splitting of obligations
 no execution of subdivision in MPRDA
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7. SUBDIVISION
 SOLUTIONS
Partial abandonment and section 102
Partial abandonment and section 16 or 22
Reciprocal section 102
Practical issues
 EMP
 Social and labour plan
 Work programme
 consultation
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8. SUBDIVISION
 TRANSFER OF UNDIVIDED SHARES
Section 11
Is possible
Problem on conversion – Sishen Iron Ore v ICT
 JOINT VENTURES
Transfer of undivided shares
Section 11
HDSA transactions
Incorporated v unincorporated
Transfer of controlling interest
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9. THANK YOU
Chris Stevens
8 November 2012
Nothing in this presentation should be construed as formal
legal advice from any lawyer or this firm. Readers are
advised to consult professional legal advisors for guidance
on legislation which may affect their businesses.
© 2012 Werksmans Incorporated trading as Werksmans
Attorneys. All rights reserved.