Afrimat has obtained a high court order forcing the Minister of Mineral and Petroleum Resources to approve, within four days, the transfer of a mining right it purchased in order to avoid losing its allocation on Transnet’s iron ore export corridor (IOEC).
The minister, the director-general of the Department of Mineral and Petroleum Resources (DMPR), and the department’s regional manager of mineral regulations for the Northern Cape initially opposed the application by Afrimat but subsequently withdrew their opposition and indicated that they would abide by the court’s decision.
The case centred on the interpretation of the Mineral and Petroleum Resources Development Act (MPRDA) and whether Lungile Mlotshwa has any interest in the Ochre Shimmer mining right in the Northern Cape that would need to be considered before consent to the transfer could be granted.
Mlotshwa was the wife in community of property of the late BN Mhlangu [correct according to the judgment], a shareholder in Ochre Shimmer, whose mining right had been acquired by Afrimat on 30 May 2025.
Mlotshwa was granted permission to intervene in Afrimat’s application and opposed it, claiming that she has an interest in the mining right.
IOEC rail allocation deadline
Afrimat presently conducts mining operations in the Northern Cape and operates mines from which iron ore is extracted, including at Demaneng, Jenkins and Driehoekspan. Besides selling it locally, Afrimat also exports the iron ore it mines.
However, Afrimat’s Demaneng mine is reaching the end of its productive life and will cease operations by the end of this year or in early 2027.
Afrimat uses Transnet’s rail network for its mining operations and has an allocation on the IOEC, which Transnet makes available to miners for capacity allocation. Once allocated, it is then used by miners to move mined iron ore.
IOEC allocations are made for 10 years. The latest bids were opened on 1 December 2025, but the bid window was extended to 30 April 2026 and then again to 29 May 2026.
The only viable method of transporting the iron ore at the scale Afrimat operates is by rail.
However, for Afrimat to apply for the same or an increased allocation, it must demonstrate it can meet that capacity or the increased capacity.
The IOEC application allocation specifically requires Afrimat to provide a certified copy of a valid and current mining right issued by the DMPR relating to iron ore reserves located in the Northern Cape.
The Ochre Shimmer mining right purchased by Afrimat was granted in terms of the MPRDA, commenced on 24 March 2021, and will continue for a period of 11 years, expiring on 23 March 2032.
Afrimat applied to the minister for consent to the transfer of the mining right on 30 June 2025, in line with the requirements of the MPRDA.
In a judgment handed down in the High Court in Pretoria on Monday, Judge Anthony Millar said nine months had passed since the application was submitted.
He said that in order for Afrimat to submit its IOEC application on time, consent for the transfer of the mining right must be granted before 29 May 2026.
Claim to direct interest rejected
Judge Millar said all the parties agreed the matter was urgent: Afrimat due to the time constraints it faces and potential commercial harm if it is unsuccessful, and Mlotshwa because the question of whether her consent is required could influence whether the underlying sale of the mining right is valid or not.
He ruled the mining right is held by Ochre Shimmer, subject to the shareholding of Ochre Shimmer specified in it, and not by private individuals.
Judge Millar added that none of the individuals referred to in respect of Ochre Shimmer’s compliance with sections of the MPRDA hold any interest in the mining right itself; any interest they have is only as shareholders in Ochre Shimmer.
He said that for this reason, the argument advanced on behalf of Mlotshwa must fail.
Judge Millar said the urgency is self-evident in view of the impending closure of the window within which Afrimat must apply for its allocation on the IOEC.
He said it was argued that Afrimat faces the current situation because of the conduct of third parties and through no fault of its own, and that there is no other alternative but to seek an order compelling the minister to consent to the transfer of the mining right, together with consequential relief.
Judge Millar said that, beyond Afrimat’s clear commercial interest in the matter, there were other, perhaps equally compelling, reasons why it would be just and equitable under the Promotion of Administrative Justice Act to grant such an order.
Millar noted that these reasons include the fact that Afrimat’s iron ore operations currently employ about 175 permanent staff and 930 contractors, meaning that at least 1 100 families are dependent on Afrimat for their livelihoods.
Judge Millar said Doornfontein, where the mining right in issue is located, is sufficiently close to Demaneng that it will help preserve the employment of the 500 employees at Demaneng when it closes, and is also expected to add about 150 additional jobs for contractors and local service providers.
He said any interruption or interference with Afrimat’s future operations is likely to have a serious consequence to its continued ability to employ its workforce and for employment in the area generally.
Further delays unjustified …
Judge Millar added that if consent for the transfer of the mining right is not granted timeously, Afrimat stands to lose a significant capital investment already made in the asset.
He stressed the only reason consent for the transfer was not given was due to a misunderstanding on the part of the director-general of the DMPR.
“While ordinarily it is undesirable for a court to step into the shoes of the decision-maker, in the circumstances of this case it is apposite and necessary to avert the unintended consequences that any further delay may have by preventing Afrimat from timeously submitting its bid for an IOEC allocation.
“Any further delays would leave Afrimat with no remedy,” he said.
Judge Millar reviewed and set aside the failure by the director-general to take a decision in accordance with MPRDA to grant consent for the transfer of a mining right from Ochre Shimmer.
He ordered the director-general, alternatively the DMPR minister, to grant the consent and provide Afrimat with written confirmation of that decision by no later than 20 May 2026.
Costs were awarded against the director-general of the DMPR.
This article was republished from Moneyweb. Read the original here.
