MATHONSI
J: The
applicant seeks a declarator that it is the lawfully registered
holder of mining claims called Kapata 11, registered number 11769 BM
held by certificate of registration number T30249.
All
the respondents have opposed the application mainly on the ground
that applicant's said claims overpeg already existing and
registered claims of the 3rd
Respondent.
Sometime
in 2001, Kapata Syndicate hired an approved prospector Mr Mguni to
conduct investigations and carry out due diligence search with a view
to establish if it was appropriate to prospect, peg and register 3
special base metal block claims in the area. Mguni duly carried out
the work which cleared the area for pegging resulting in the 3 claims
being registered and registration certificates number 11768 BM, 11769
BM and 11770 BM being issued to Kapata Syndicate by the Mining
Commissioner Bulawayo.
The
claims are located in the Dete Area of Hwange.
Work
on the area commenced thereafter to develop it resulting in boreholes
being sunk and equipped, road networks were opened, geological
exploration, mining engineering work, metallurgical plant designs and
so on were done.
In
2002 the claims were transferred from Kapata Syndicate to the
applicant.
The
applicant maintained and paid for the claims throughout in accordance
with the provisions of the Mines and Minerals Act, Chapter 21:05
('the Act').
By
letter dated 9 July 2009, Zimbabwe Mining Development Corporation
('ZMDC') complained to the 1st
Respondent that the applicant's claims overpegged extant claims
belonging to 3rd
Respondent. The locus
stand in judicio
of ZMDC having been questioned at the hearing, counsel for the 3rd
Respondent submitted that this entity owns 3rd
Respondent 100%.
It
turns out that in 1977 and 1979, the 3rd
Respondent had pegged and registered certain Kapata claims some of
which may have been encroached by applicant's claim number 11769BM.
The position is not clear but what is pretty obvious is that a
pegging dispute has therefore arisen. Both the applicant and the 3rd
Respondent appear to hold title to conflicting claims.
In
response to the complaint made by the 3rd
Respondent the 1st
Respondent addressed a letter to the Secretary for Mines dated 19
August 2009 in which she stated that a survey conducted by the
Regional Survey Department had shown that applicant's claims
encroached onto 3rd
Respondent's claims and should thus be relocated.
Clearly
therefore 1st
Respondent determined that applicant should relocate to those of its
claims which did not overpeg 3rd
Respondent's claims. This was confirmed by the Chief Mining
Commissioner who said applicant's claims must be cancelled.
It
is pertinent that 1st
and 2nd
Respondents have proceeded on the premise that the applicant's
claims have been cancelled and that 1st
Respondent's decision to cancel was based on a survey by the
Regional Survey Department whose officials she says state that 3rd
Respondent's beacons were in place and that applicant went to peg
its own claims despite the existence of beacons.
This
conclusion is in sharp contrast with what the Regional Mining
Surveyor says in his letter of 8 December 2009 addressed to the
Regional Mining Engineer which reads as follows:
''Re:
Survey
of dispute between Kamativi Tin Mines and BMG Mining claims'
This
minute is a reply to your request of the need to see the survey
report of the beacons mentioned by the Mining Commissioner concerning
the above issue. It is alleged that the Regional Survey office
carried out a survey in the area and it was one of the fact (sic)
that the Mining Commissioner used to determine the results of the
dispute. The dispute was never ever brought to the attention of the
Regional Mining Engineer's Department – Bulawayo.
I
categorically state that there was no survey work carried out in
connection with the dispute, that is the survey that helps the Mining
Commissioner in reaching the conclusions in the determination of the
dispute concerning the blocks of claims.
Mr
Alex Saurombe, on or about 20 February 2008, approached the Survey
office requesting for a GPS Survey to be carried out in his three
special blocks of base metal claims (Kapata 1, Kapata 11 and Kapata
111) for the purpose of producing a general Surface Plan.
Before
the Survey was done the Survey office checked the status of the
blocks of claims to verify whether they were current or not, and
whether the blocks of claims are marked on the claims plan of the
state to a scale of 1:25,000 that is under the custody of the Mining
Commissioner.
The
BGM claims were found to be in order and marked clearly on the claims
plan and there were no Kamativi blocks of claims appearing on the
claims plan or plans kept by the Mining Commissioner. The Survey
office was satisfied with the search.
Therefore,
the Mine Surveyors went out into the field with the full knowledge
that they were stepping on and carrying out the requested survey work
on BMG Mining claims only.
Denis
Eshmael Katema 'REGIONAL MINING SURVEYOR'' (Emphasis added).
It
is therefore unlikely that the findings of the 1st
Respondent regarding the conflicting claims were informed by a survey
conducted by the Survey office as alleged.
Having
been disowned by the Regional Mining Surveyor, the 1st
Respondent then prevaricated in her opposing affidavit where at
paragraph 8 she says:
“(a)
Applicant is now the registered owner of the claim and it is
immaterial who did the pegging.
(b)
It was an administrative error that Kapata Syndicate was allowed to
register claims over current mining locations.
(c)
The survey was carried out at the instance of the applicant.
Officials from the Regional Survey Department informed the 1st
Respondent that Kamativi beacons were in place. Contents of Annexure
'L' are factually incorrect and were not relied on in reaching
the decision to cancel the said claims.”
This,
coming from a person who earlier on said she relied upon the same
survey, is difficult to understand.
1st
Respondent is definitely not credible in this aspect and it remains a
mystery on what basis she decided to cancel the applicant's claims.
What
is more, this puts into issue the question whether any beacons
belonging to the 3rd
Respondent existed.
Both
1st
and 2nd
Respondents claim that applicant's claim was cancelled but they are
silent as to when and how the cancellation was affected.
In
her submissions Ms Mashiri for 1st
and 2nd
Respondents stated that the “claims were cancelled in line with
section 50 of the Mines and Minerals Act, Chapter 21:05 which
provides for cancellation of such certificates of registration
notwithstanding the provisions of section 58 of the same Act.”
The
issue which then arises is whether such cancellation was done in
accordance with the provisions of the Act.
The
applicant has vehemently argued that it was not and that because
there was no compliance, it remains the lawful holder of claim number
11769BM. Applicant asks for a declaratory order to that effect.
If
a cancellation is done by the 1st
Respondent in breach of the Act, such cancellation is void ab
initio
because anything done by an official in excess of the powers
conferred upon him or without following the procedure for such
cancellation is null and void. Musara
versus Zinatha
1992 (1) ZLR 9 (H) at 13A.
In
that case Robinson J went on to state at 13B–C that an interested
person should be at liberty and entitled, at any time, to approach
this court for an order declaring the act in question to be null and
void and that the court should be slow to turn a party away where it
seeks a declaratory order about its status. At 13F the learned judge
concluded that:
“I
consider that the same approach should be adopted by the court in a
civil case where, on the papers before it – the more so where those
papers seek a declaratory order – an act of glaring invalidity is,
as in this matter, staring the court straight in the face. For the
court to refuse, save in exceptional circumstances justifying such
refusal, to declare the act in question null and void ab
initio
on some technical ground would, I agree, be to ignore the courts
fundamental duty to see that justice is done which, after all, is the
duty which the layman expects the courts to discharge.”
Accordingly,
I do not agree with Mr Tsivama for the 3rd
Respondent that the application for a declaratory order should not be
entertained as it amounts to the court usurping the power of the 1st
Respondent to adjudicate and cancel the registration certificate.
To
deny the applicant audience in the face of glaring inconsistencies on
the part of 1st
Respondent's conduct and clear violations of the provisions of the
Act amounts to an abdication of duty.
1st
Respondent claimed to be acting in terms of section 50 of the Act in
cancelling the claims. That section provides:
“(1)
Subject to subsection (2) the mining commissioner may,
notwithstanding subsection (1) of section 58, at any time cancel a
certificate of registration issued in respect of a block or site if
he is satisfied that;
(a)
At the time when such block or site was pegged it was situated on
ground reserved against prospecting and pegging under section 31 or
35 on ground not open to pegging in terms of subsection (3) of
section 258; or
(b)
Provisions of this Act relating to the method of pegging a block or
site were not substantially complied with in respect of such block or
site.”
In
a case which falls under subsection (1), the 1st
Respondent is required to act in terms of subsections (2) and (3)
which provide;
“(2)
At least thirty days before cancelling a certificate of registration
under sub section (1) the mining commissioner shall give notice to
the holder of the block or site of his intention to cancel such
certificate and of the grounds for such cancellation and of the
proposed date of such cancellation, and shall at the same time inform
the holder that he may, at any time before that date, appeal in
writing to the Minister against such cancellation.
(3)
Such notice shall be given by registered letter addressed to the
holder of the block or site at the postal address recorded in the
office of the mining commissioner or, if no such address is recorded,
by publication thereof in the Gazette.”
There
has been a signal failure to comply with any of these provisions
relating to cancellation of the registration certificate.
What
the 1st
Respondent has done is merely to announce the cancellation without
more.
So
even assuming that section 50 applied to this case, which is unlikely
given that the area was not reserved against prospecting and pegging
under sections 31 or 35 and section 258(3) has no bearing and the
pegging method has not been questioned, the 1st
Respondent has not complied with the procedure for cancellation set
out in subsections (2) and (3) of section 50.
This
therefore means that her actions not only offended the audi
alteram partem
principle but also that failure to comply with the mandatory
procedural requirements renders her decision ultra
vires
section 50. See
Cluff Mineral Exploration
(Zimbabwe)
Ltd versus Union Carbide Management Services (Pvt) Ltd Ors
1989 (3) ZLR 338 (S) at 347E-F.
It
was half–heartedly argued by Mr Tsivama that 1st
Respondent has not yet cancelled the registration certificate and as
such due process must be allowed to take its course.
Unfortunately
that argument directly contradicts the submissions made by Ms Mashiri
on behalf of the 1st
and 2nd
Respondents. Ms Mashiri unequivocally, submitted that applicants
“claims were cancelled in line with section 50 of the Mines and
Minerals Act Chapter 21:05” in paragraph 6 of her heads of argument
and maintained that position during the hearing.
Accordingly,
the cancellation was effected and in view of the violations referred
to above, it cannot be allowed to stand.
If
the 1st
Respondent has reason to believe that the registration of applicant's
claims is questionable or that there may be a case of overpegging,
she must investigate the matter thoroughly and act in accordance with
the provisions of the Act. Overpegging complaints should be dealt
with in terms of sections 353 and 354 of the Act and this has not
been followed in this case.
1st
Respondent appears to have acted in terms of the complaint made on
behalf of the 3rd
Respondent and did not conduct any meaningful investigation let alone
commission a survey in terms of section 353. This explains why she
has found it difficult to explain how she arrived at a decision to
cancel the certificate and why she has found herself contradicting
the Regional Mining Surveyor.
In
the result the provisional order made on 15 January 2010 is confirmed
in the following terms, that:-
1.
It be and is hereby declared that applicant is the lawfully
registered holder of claims named Kapata 11 registered number 11769BM
as recorded on certificate of registration after transfer number
T30249.
2.
If there are any complaints of encroachment such should be dealt with
by the 1st
Respondent in compliance with the provisions of the law.
3.
1st
and 2nd
Respondents should bear the costs of this application.
Messrs.
Majoko & Majoko, applicant's
Legal Practitioners
Civil
Division of the Attorney Generals Office, 1st
and 2nd
Respondent's Legal Practitioners
Messrs
Sawyer & Mkushi 3rd
Respondent's Legal Practitioners c/o Calderwood, Bryce Hendrie &
Partners