MINISTRY
MINERAL RESOURCES
REPUBLIC OF SOUTH AFRICA

Enquiries: Pieter Alberts

Mr Chris Griffith
Executive Director and Chief Executive Officer
Sishen Iron Ore Company

Dear Sir

APEAL IN TERMS OF SECTION 96 AND REQUEST FOR WITHDRAWAL IN TERMS OF SECTION 103(4)(b) OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT (ACT NO 28 OF 2002 AGAINST THE GRANTING OF AN APPLICATION FOR A PROSPECTING RIGHT AND THE APPROVAL OF THE EMP TO IMPERIAL CROWN TRADIGN 289 (P1Y) LTD: REFUSAL OF APPLICATION FOR A MINING RIGHT AND REFUSAL TO APPROVE EMP OF SISHEN IRON ORE COMPANY (PTY) LTD: THE REMAINING EXTENT OF PORTION 1 OF THE FARM SIMS 462, REMAINING EXTENT 0F PORTION 3 AND 4 OF THE FARM GAMAGARA 542, REMAINING EXTENT OF PORTION 1 AND REMAINING EXTENT OF THE FARM SISHEN 543 AND REMAINING EXTENT OF PORTION 2, 3, AND 4 OF THE FARM SACHA 468 ADMINISTRATIVE DISTRICT OF KURUMA "THE PROPERTIES"

1. Your above mentioned appeal on behalf of Sishen Iron Ore Company dated 1 March 2010 has reference.

2. KindIy be informed that the decision forming the subject of your appeal is a ministerial decision taken under delegated authority. Therefore the Minister has dealt with this matter in terms of the provisions of section 103(4) of the Act.

3. After careful consideration of the application in terms of section 103(4) (b) of the Mineral and Petroleum Resources Development Act. 2002 (Act 28 Of 2002), hereinafter referred to as "the Act", for the withdrawal of the decisions made by the Deputy Director General: Minerals Regulation and the Regional Manager: Northern Cape Region, by virtue of powers deIegated, I, Ms. S Shabangu. MP, Minister of Mineral Resources of the Republic of South Africa, by virtue of powers conferred on me in terms of section 103(4) of the Act, have decide to uphold the decisions of the Deputy Director-General to grant the application for prospecting right to Imperial Crown Trading 289 Proprietary limited and the approval of the EMP by the Regional Manager Northern Cape, in respect of the properties forming the subject of your appeal

4. The reasons for my decisions are as follows:

4.1 Although it is common cause that the Minister may, in terms of section 103(4)(b) of the Act revisit the decision taken by the Deputy Director-General: Mineral Regulation, it is deemed inappropriate to do so in circumstances where existing rights of other persons are affected. In this instance, the granting and issuing of a prospecting right to ICT constitutes such an existing right, which is a limited real right upon registration.

4.2 The withdrawal of such a right by the authority, which initially granted it, will inevitably create legal uncertainty, which In turn will compromise one of the key objects of the Act, namely security of tenure.

4 3 Having therefore performed the authorised administrative act by granting the prospecting right I now consider myself functus officio and therefore precIuded from again considering the matter, even if new arguments or evidence are presented. This is so, because exercising my discretion in terms of section 1 03(4)(b) in favour of the Appellant, will adversely affect a rig that was prima facie lawfully granted.

4.4 Having due regard to my constitutional obligation of taking administrative action that is lawful reasonable and procedurally fair. I am therefore prevented from reviewing any decisions which will have the effect of withdrawing the aforementioned prospecting right issued in favour of ICT. It is further submitted that only a competent Court is able to review the above mentioned decisions forming subject of this appeaI.

5 It is further hereby confirmed that no decision has been taken in respect of the application for Sishen Iron Ore Company for a mining right in respect of the abovementioned properties. However, you will in due course be informed by my Department of the outcome of the abovementioned application.

Yours faithfully

SIGNED

Ms S SHABANGU, MP
MINISTER
DATE: 13/08/2010

Note: Transcribed from the PDF. Please check against the original here.

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