Mining Rights on Your Land: What Landowners and Small Operators Should Know

The ground under your farm may be worth more than the farm. Since the Mineral and Petroleum Resources Development Act came into operation, though, the question of who owns the minerals has one clear answer: the mineral rights vest in the State, and the State grants the right to prospect or mine. A landowner holds the surface, and the holder of a mining right holds what is beneath it. The two interests must live together, and the law gives each side protections.

The rights, and how long they run

• A prospecting right gives the holder the right to explore for a defined mineral over a defined area, generally for up to five years, and it can be renewed.
• A mining right gives the holder the right to mine and to sell the minerals, generally for up to 30 years, and it can be renewed for the life of the mine.

Applications are considered by the Department of Mineral Resources and Energy, and the process includes consultation with the landowner, the lawful occupier and the interested and affected community.

What the landowner can expect

What small operators should check first

How We Can Help

• You may be notified before any work begins on your land, and the holder must reach agreement with you on access, and on compensation for any loss or damage caused by the operation.
• Your surface rights continue. Mining does not give the holder a free hand to ignore fencing, gates, water and existing uses, but it does give enforceable access for the purpose of the operation.
• If a prospecting or mining right is already registered against your land, the notices that arrive are not optional mail. Failing to engage at the notice stage removes most of your later remedies.
• Confirm the mineral and the area are actually available before spending on a consultant's report.
• Confirm the landowner and the community consultation requirements are understood; a rushed consultation is a common ground for objections.
• Budget for the environmental plan and the financial provision; the regulator requires rehabilitation security before the operation starts.
• Know the difference between buying the surface rights and holding a mining right. One does not give you the other.

OM Baloyi Inc advises landowners, communities and small operators across the mining field, from applications and objections to compensation and access agreements. If a prospecting notice has arrived, or you want to move a mining application properly, speak to us while the process is still young.

OM Baloyi Inc | Attorneys, Conveyancers, Notaries, Properties, Tax, Mining 51 Bouvet Avenue, Bellairspark Ext 5, Northriding, 2162 T: 087 265 1059 | E: info@ombaloyi.co.za | www.ombaloyi.co.za