Afrimat Transnet IOEC mining rights ruling

Afrimat, a leading mining and materials company, has secured a High Court order compelling South Africa’s Minister of Mineral and Petroleum Resources to approve, within four days, the transfer of a mining right tied to the company’s iron ore export operations on Transnet’s Iron Ore Export Corridor (IOEC).

The ruling clears a major hurdle for the JSE-listed miner as it races to secure rail allocation capacity needed to continue exporting iron ore from the Northern Cape.

The Minister of Mineral and Petroleum Resources, the director-general of the Department of Mineral and Petroleum Resources (DMPR), and the department’s Northern Cape regional manager had initially opposed Afrimat’s application. They later withdrew their opposition and agreed to abide by the court’s decision.

At the center of the dispute was whether Lungile Mlotshwa had a direct interest in the Ochre Shimmer mining right that Afrimat acquired on May 30, 2025.

Mlotshwa, who was married in community of property to the late BN Mhlangu, a shareholder in Ochre Shimmer, argued that her interest should be considered before consent for the transfer could be granted. She was later allowed to intervene in the proceedings and opposed the application.

Judge Anthony Millar, however, found that the mining right belonged to Ochre Shimmer as a corporate entity and not to individual shareholders.

He ruled that any interest held by shareholders did not amount to a direct interest in the mining right itself.

“For this reason, the argument advanced on behalf of Mlotshwa must fail,” Millar said in the judgment handed down in Pretoria on Monday.

IOEC rail allocation deadline extended

Afrimat operates several iron ore mines in the Northern Cape, including Demaneng, Jenkins and Driehoekspan, supplying both domestic and export markets.

But the company faces growing pressure as its Demaneng mine approaches the end of its operating life, with closure expected by late 2026 or early 2027.

To maintain exports, Afrimat needs continued access to Transnet’s IOEC rail network, which miners rely on to move iron ore to ports.

The latest IOEC allocation process opened in December 2025, with deadlines later extended to May 29, 2026.

For Afrimat, timing became critical because the allocation process requires proof of a valid mining right linked to iron ore reserves in the Northern Cape.

The Ochre Shimmer mining right, acquired by Afrimat last year, runs until March 2032.

Afrimat applied for ministerial consent to transfer the right in June 2025, as required under the Mineral and Petroleum Resources Development Act. Nine months later, no decision had been taken.

Judge Millar said the urgency of the matter was clear given the looming IOEC deadline and the commercial risks facing the company.

He noted that rail transport remains the only practical way for Afrimat to move iron ore at the scale required for its export operations.

Employment tied to Afrimat operations

Beyond the legal questions, the court also considered the broader economic effect of delays.

Millar said Afrimat’s iron ore business currently supports about 175 permanent employees and roughly 930 contractors, leaving more than 1,100 families dependent on the operation.

He added that the Doornfontein mining area, linked to the disputed mining right, could help absorb workers from Demaneng once that mine closes.

According to the judgment, the project is also expected to create around 150 additional opportunities for contractors and local service providers.

“Any interruption or interference with Afrimat’s future operations is likely to have a serious consequence to its continued ability to employ its workforce,” Millar said.

The judge also said Afrimat risked losing a substantial capital investment if consent for the transfer was delayed further.

He found that the delay stemmed largely from what he described as a misunderstanding by the DMPR director-general.

“Any further delays would leave Afrimat with no remedy,” the ruling said.

Regulatory delay and final order

Millar reviewed and set aside the failure by the director-general to decide on the transfer application.

He ordered the director-general, alternatively the mineral resources minister, to grant consent for the transfer and provide written confirmation to Afrimat no later than May 20, 2026.

Costs were awarded against the director-general of the DMPR.

Afrimat’s broader expansion strategy

Founded in 1963 and listed on the Johannesburg Stock Exchange since 2006, Afrimat has evolved from a construction materials supplier into a diversified mining and bulk commodities group.

Its portfolio now spans construction inputs, industrial minerals, contract mining, and agricultural-linked phosphate supply, with growing exposure to regional mining value chains across southern Africa.