High Court Sets Aside Grant of Chrome-Ore Mining Right to Samancor
Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU ISIN: ZAE000145686
(‘Bauba’ or ‘the Company’)
HIGH COURT SETS ASIDE GRANT OF CHROME-ORE MINING RIGHT TO SAMANCOR
Shareholders are advised that on 16 November 2018 the Company won a litigious dispute against
Samancor Chrome Limited (‘Samancor’), including the costs of three Counsel. The High Court of South
Africa (Gauteng Division, Pretoria) (‘High Court’) has set aside the grant of a chrome-ore mining right
to Samancor by the Minister of Mineral Resources (‘Minister’) in respect of the farms Wintersveld
417KS, Jagdlust 418KS and Zeekoegat 421KS (‘Properties’), due to the lack of proper notice and
consultation with interested and affected parties, as prescribed by law.
The interested and affected parties of whom Samancor failed to notify and consult were, inter alia, the
occupiers of the Properties of whom included local communities.
As background, Samancor initially applied for the chrome-ore mining right in November 2011. The
application was initially refused by the Director General (‘DG’) of the DMR due to the lack of proper
notification and consultation with interested and affected parties. Pursuant to the DG’s refusal of
Samancor’s mining right, the Proprieties become open for application. Accordingly, Bauba (through a
wholly-owned subsidiary) lodged an application for a prospecting right over the farm Zeekoegat 421KS
in June 2016. Bauba’s application was accepted by the DMR. However, Samancor soon thereafter
appealed the DG’s refusal of its mining right to the Minister who in turn upheld its appeal and granted
the mining right to Samancor.
It is the grant of this chrome-ore mining right by the Minister which the High Court has now set aside.
In setting aside the Minister’s decision to grant Samancor the mining right and remitting it back to the
Minister for reconsideration, the High Court concluded that there indeed was inadequate notification
and inadequate consultation with interested and affected parties and consequently has directed the
Minister to reconsider Samancor’s application and to give proper weight and consideration to
Samancor’s failure to adequately notify and consult with interested and affected parties.
Samancor has requested written reasons for the decision from the High Court and that should be
furnished shortly. Samancor may apply for leave to appeal and this process (and any appeal) will be
finalised in the ordinary course. If the High Court or the Minister uphold the DG’s refusal of Samancor’s
application for a mining right, then Bauba’s application for a prospecting right will be next in line for
consideration by the DMR. Bauba is confident that its application will be considered favorably. This
chrome-ore asset is valuable to Bauba due to the size of the underground and opencast LG6 resource
and its close proximity to our Moeijelijk Mine, being approximately 13km north on the regional R37 road.
7 December 2018
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