AGRI SA WINS CRITICAL PROPERTY RIGHTS CASE

"The High Court judgment issued in Pretoria by Judge Ben du Plessis today to the effect that the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002), the "Act", in fact implies the expropriation of mineral rights as of 1 May 2004, serves as a direction-giving ruling following Agri SA's many attempts over the years to protect property rights," says Agri SA president Johannes Möller.

Agri SA's intention with this test case was to prove expropriation of mineral rights, which would oblige the state to pay compensation.

The judge found that "for the reasons stated the objects of the MPRDA could not be achieved without depriving mineral rights holders of their property and without vesting in the state similar rights. While not expressly stated, expropriation was one of the purposes of the MPRDA."

This welcome ruling follows a previous judgment by Judge Hartzenberg in March 2009 that it was indeed possible for holders of ‘old order' mineral rights to prove expropriation.

"This ruling confirms the fundamental principle in section 25 of the Constitution, namely that property cannot be expropriated without compensation," says Möller.

Agri SA has since 2004 kept its members informed of the manner in which claims for compensation due to this expropriation should be lodged. Such claims must reach the regional offices of the Department of Mineral Resources by not later than 30 April 2011.

Agri SA wish to thank its affiliates for their support, financial and otherwise, in respect of this lawsuit.

Statement issued by Johannes Möller, President Agri SA, April 28 2011

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