mining

Bowman Gilfillan has established itself as a leader in the field of mining law in South Africa and was instrumental in the development of the new mining law regime. We regularly advise on all matters relating to mining legislation, assets and the conversion, acquisition and disposal of mining rights and titles. Our expert advice is sought for environmental and occupational health-and-safety issues as well as mining regulation issues. The Group also has expertise in advising on a wide range of natural resource exploitation and beneficiation projects, ranging from forestry to gas.

The commencement of the Mineral and Petroleum Resources Development Act (MPRDA) in April 2004 radically transformed the law governing rights to mineral resources in South Africa. This has caused a significant increase in the number of transactions in this sector. Bowman Gilfillan is well placed to take advantage of this upsurge in transactions and our mining lawyers have represented a number of foreign companies seeking a foothold in the lucrative South African mining sector. Moreover, our mining attorneys have also represented a number of BEE companies, and have given them an opportunity to acquire a stake in the wealth of South Africa’s natural resources.

Contact Bowman Gilfillan today for advice from an experienced mining lawyer.

mining advice

The firm’s mining lawyers act for a number of listed and unlisted mining companies. We frequently advise on transfers of mining rights, protection of mining assets and sales of mining companies. For example, our work in this sector covers the following areas:

• Advising on mining assets and the conversion, acquisition and disposal of mining rights and titles.
• Advising on the validity and transferability of mineral rights, and the manner in which transactions should be structured to protect mineral rights.
• Opinion work in a transactional and day-to-day context on the Mining Charter, how it fits within the Broad-based Black Economic Empowerment (BEE) Act, the BEE Codes of Good Practice, and how the Department of Minerals and Energy (DME) approaches BEE.
• Assisting the DME in drafting legislation that has completely replaced the existing regime in respect of minerals and mining.
• Successfully pursuing numerous appeals against decisions of the DME regarding the grant of prospecting and mining rights.
• Instituting review proceedings in the High Court against the Minister of Minerals and Energy in respect of such decisions. We have acted for both local and international clients in this capacity.
• Advising on and obtaining ministerial consent in terms of Section 11 of the MPRDA for the transfer of an interest or control in a licence holder.
• Pursuing the cancellation of a mineral right granted over a community's property in an improper way and pursuing the cancellation of lapsed mining rights.
• Advising on the interaction of environmental and mining statutes and the environmental requirements of mining.
• Advising on beneficiation and royalty issues.
• Speaking on these issues at conferences. We have a good relationship with the Department of Minerals and Energy in Pretoria as well as relationships with officials in a number of regional offices.
• Authoring of the Mining and Minerals Chapter in the widely-used Butterworths Forms and Precedents series.

A sample of transactional work in the mining-related and BEE context

Bowman Gilfillan’s mining attorneys have many years of experience in dealing with issues regarding mining legislation and registration. The corporate department of Bowman Gilfillan, headed by Ezra Davids, has advised on a number of high-profile deals in South Africa, including many in the mining sector.

Bowman Gilfillan’s mining lawyers continue to be the main corporate advisors to listed mining groups such as Mvelaphanda Group, which has a wide range of mining interests, former Bowman Gilfillan partner Patrice Motsepe’s listed African Rainbow Minerals Group, and the JSE-listed Metorex Group. The firm acts for Coal of Africa (an Australian company with a secondary listing on the JSE), Canadian Homeland and Mmakau Mining (a junior miner).

The firm also acts for international resources funds such as American Metal and Coal International Inc First Reserve in respect of their South African holdings.

Our mining attorneys have been involved in a number of financing transactions in the last year, including acting for Goldman Sachs, UBS and Morgan Stanley.

Transaction highlights of the last year:

• Advised Mvelaphanda Resources Limited, a listed BEE company in its acquisition of the Booysendal Platinum interests of Anglo Platinum Limited to the amount of R4 billion.
• Acted for AMCI Capital and First Reserve Corporation advising on the acquisition by Pamodzi Resources Fund of a controlling interest in a US$420 million Uranium company comprising Harmony Gold’s Uranium and Gold assets on the West Rand.
• Acting for African Mining and Exploration Limited and the State Mining Company, as well as the Central Energy Fund and a variety of its subsidiaries in complex litigation regarding disputed titles in Mpumalanga Coal field involving areas that previously housed the State’s strategic fuel store.
• Acted for Metorex in its R3 billion capital and debt restructuring program, which involved a fresh equity capital injection of R744 million, a bridging finance facility of R300 million and a restructuring of the approximately R2 billion of current debt in relation to its Congo operations.
• Acted as the South African legal advisors to Goldman Sachs, UBS and Morgan Stanley as underwriters to a Rights Offer by AngloGold Ashanti of approximately R12 billion. Our mining lawyers also acted for Global Coordinator and for the Joint Bookrunners, Goldman Sachs International and UBS disposal by Anglo American of more than 20% of its shareholding in AngloGold Ashanti. The deal value was US$2.9 billion (just over R20 billion).
• Advised First Reserve Corporation and AMCI Capital on their US$1.3 billion investment in the Pamodzi Resources Fund - the largest private equity fund in South Africa. Thereafter, our mining attorneys advised First Reserve Corporation and AMCI Capital in respect of their private equity investments in various privately held mining groups in South Africa.
• Advised TSX-listed Homeland Energy Group on the disposal of up to 50% of its South African coal mines and prospecting operations to India’s GMR Group in a transaction valuing Homeland South Africa at US$310 million.
• Acted for Coal of Africa on various acquisitions related to the Vele Colliery Project, which will be the largest open cast coal project in South Africa, as well as a number of other acquisitions.
• Provided advice on potentially litigious environmental processes and rights application processes.

Contact Bowman Gilfillan to receive legal advice for your mining concerns from an experienced mining lawyer or peruse our other fields of oil and gas, energy and environmental, natural resources and climate change law.