Trojan trilogy: II Cession of mineral rights

• Jurisdiction: South Africa
• Date: 27 May 2019
• Published date: 27 May 2019
• Pages: 326-337
• Author: PJ Badenhorst

TROJAN TRILOGY: II CESSION OF MINERAL

RIGHTS

Trojan Exploration

Co

(Ply) Ltd v Rustenburg Platinum

Mines Ltd

1996 4 SA 499 (A)

PJ Badenhorst

BLC LLM LLD

Professor, University of Port Elizabeth

Continued from 1998

Stell

LR

143

1 Introduction

Mineral rights, held under separate title (such as a certificate of rights

to minerals or a registered notarial deed of cession) may be ceded by the

holder thereof to a cessionary by registration of a notarial deed of cession

in the deeds office!

In determining the meaning of the concept "mineral" (or

in casu

"precious metals") in a deed of cession of mineral rights, for purposes of

establishing the ambit of the mineral right granted to a cessionary, it is

necessary to determine the intention with which the concept "mineral" (or

in casu

"precious metal") is used.

2

The intention of the parties has to be

determined in accordance with the rules of the interpretation of contracts.

For instance, the inquiry must not be what the parties had in mind, but what

their common intention was, as expressed in the words of the contract.

3

A primary rule of construction is that the words used by the parties have

to be given their ordinary and natural grammatical meaning.

4

The

qualification of the rule is that where the ordinary meaning leads to an

absurdity, or to something which, from the instrument as a whole it may

clearly be gathered that the parties could not have intended, a court is

justified in departing from the literal meaning of the words.

5

Unless there

are clear indications of a contrary intention, the words are therefore to be

understood in their usual, normal or everyday meaning.

6

2 Facts

The facts of the case have been set out in the previous discussion of the

Trojan decision.'

S 16 of the Deeds Registries Act 47 of 1937;

Government of the Republic of South Africa v Oceana

Development Investment Trust plc

1989 1 SA 35 (T) 37B; Franklin & Kaplan

The Mining and Mineral

Laws of South Africa

(1982) 603-604.

2

Falcon Investments Ltd v CD of Birnam (Suburban) (Pty) Ltd

1973 4 SA 384 (A) 400B—C.

3

Finbro Furnishers (Pty) Ltd v Registrar of Deeds, Bloemfontein

1983 3 SA 191 (0) 194C.

4

Finbro Furnishers (Pty) Ltd v Registrar of Deeds, Bloemfontein supra

194B—C;

Trojan Exploration Co

(Pty) Ltd v Rustenburg Platinum Mines Ltd 1996 4 SA 499 (A)

518G/H.

5

Trojan

case

supra

518H.

6

Van Waveren v Swart

1994 1 SA 579 (T) 587E—F.

7

Badenhorst "Trojan Trilogy: I Competing Mineral Rights" 1998

Stell LR

143.

326

(1998) 9 Stell LR 326

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