[8] It has now turned out that, on first respondent’s own admission, some of these reasons are ‘inaccurate’. In his answering affidavit in opposition to the relief sought by the applicant, the first respondent states that the applicant, by its own admission, applied for an exclusive reconnaissance licence for dimension stone ‘as contemplated in s59(1)(b)’ of the Act when it was not the holder, again by its own admission, of a reconnaissance licence. This, the first respondent says, is not sanctioned by the Act and there was therefore no valid application for an exclusive reconnaissance licence before the first respondent which could be granted or refused.
[9] In the replying affidavit, the applicant denies that an application for an exclusive reconnaissance licence by a non-holder of a reconnaissance licence is not competent. In oral argument however, Mr Smuts SC conceded on behalf of the applicant that since the applicant was not a holder of a reconnaissance licence when it applied for ERL 79, it could not have applied for an exclusive reconnaissance licence in terms of s59(1)(b); but that an exclusive reconnaissance licence was competent under s59(1)(a) of the Act and that the reference to s59(1)(b) was erroneous. Messrs Oosthuizen and Heathcote for the first and second respondents respectively, retort that s59(1)(a) only authorizes the granting of a reconnaissance licence simpliciter and not an exclusive reconnaissance licence. Mr Smut’s counter argument was that reconnaissance licences are granted under s62 (1) and that s59, as shown by its side note which reads ‘Exclusive rights to carry on reconnaissance operations licences’ deals only with exclusive reconnaissance licences and that, for that reason, the licence envisaged in s59 (1) (a) is an exclusive reconnaissance licence and not an ordinary reconnaissance licence.
[10] Mr. Smuts did not deal with this issue in the heads of argument because, throughout, the applicant had maintained that its application was ‘in terms of s59 (1) (b)’. After hearing oral argument on 18 January 2008, I reserved judgment and invited counsel for the parties to submit further written submissions on or before 25 February, if they wanted to, in order to elaborate on the point of law that I am being asked to decide. The applicant and second respondent submitted further submissions to which I have had regard.
[11] As I stated before, the applicant now concedes that as a non-holder of a reconnaissance licence, it could not have applied for an exclusive reconnaissance licence under s59 (1) (b). This is what the section states:
”59(1)
Subject to the provisions of subsection (2), the Minister may, on application by –
(a)
…
(b)
the holder of a reconnaissance licence, cause an endorsement to
be made on such reconnaissance licence;
by virtue of which an exclusive right is conferred upon such person …”
[12] The concession is therefore properly made and that ends that party of the debate. I must now decide whether s59 (1) (a) authorizes the granting of an exclusive reconnaissance licence as contended by the applicant.
[13] Part IX of the Act comprises ‘Provisions relating to reconnaissance licences’. The first section in Part IX is 58. Subsection (1) thereof sets out the activities the holder of a reconnaissance licence is authorized to undertake, while subsection(2) sets out things a holder of a reconnaissance licence may not do. Subsection (3) then states that a reconnaissance licence does not confer on a holder of a reconnaissance licence any preferential right to any other licence while the reconnaissance licence exists. It also states that the Minister is not prevented from granting any other licence in respect of any mineral or group of minerals or any area of land in the reconnaissance area to which the licence relates.
[14] That is the reason why the applicant wants an exclusive reconnaissance licence. It wants exclusivity which an ordinary reconnaissance licence does not confer. That exclusivity arises under s59 (1), in the words beginning with ‘by virtue’ after the semi-colon at the end of the sentence appearing at para (b).
Section 59 reads as follows:
“(1)
Subject to the provisions of subsection (2), the Minister may, on application by –
(a)
a person applying for a reconnaissance licence, grant to such person a reconnaissance licence; or
(b)
the holder of the reconnaissance licence, cause an endorsement to be made on such reconnaissance licence;
by virtue of which an exclusive right is conferred upon such person to carry on in the reconnaissance area to which such reconnaissance licence relates, reconnaissance operations in relation to any mineral or group of minerals specified in such licence, if the Minister is on reasonable grounds satisfied that the extent of the reconnaissance operations to be carried out and the expenditure to be incurred in or in relation to the reconnaissance area justifies the grant of such exclusive right.”
[15] If the applicant’s alternative argument is to succeed, then it would mean that s59(1)(a) creates a special class of reconnaissance licence which, without more, attracts exclusivity and, therefore, not subject to the limitations of subsection (3) of s58 which I set out in para 13 of this judgment. In that case s59 (1) (a) would read as follows:
“Subject to the provisions of subsection (2), the Minister may, on application by-
(a) a person applying for a reconnaissance licence, grant to such person a reconnaissance licence;
by virtue of which an exclusive right is conferred upon such person to carry on in the reconnaissance area to which such reconnaissance licence relates , reconnaissance operations in relation to any mineral or group of minerals specified in such licence , if the Minister is on reasonable grounds satisfied that the extent of the reconnaissance operations to be carried out and the expenditure to be incurred in or in relation to the reconnaissance area justifies the grant of such exclusive right.’
The question is, is that what the legislator intended?