Norton Rose Fulbright South Africa secures Constitutional Court victory for Glencore in municipal bylaws dispute

Norton Rose Fulbright South Africa has secured a decisive victory in the Constitutional Court on behalf of Glencore Operations South Africa (Pty) Limited and its related group companies, resolving a critical legal dispute regarding municipal by-laws and property rights.

On 19 November 2024, the Constitutional Court delivered its judgment in Govan Mbeki Local Municipality v Glencore Operations South Africa (Pty) Limited and Others and Emalahleni Local Municipality v Glencore Operations South Africa (Pty) Limited and Others, ruling in favour of Glencore. This judgment upholds earlier rulings by the High Court and the Supreme Court of Appeal, affirming the unconstitutionality of municipal by-law that placed undue restrictions on property transfers in order to enforce planning by-laws.

The case focused on contentious sections in the Govan Mbeki Spatial Planning and Land Use Management By-Law 2016 and the Emalahleni Municipal By-Law on Spatial Planning and Land Use Management 2016. These provisions required property owners to obtain certificates of planning compliance from municipalities before transferring ownership of properties in the Deeds Office. The Constitutional Court confirmed that these provisions amounted to arbitrary deprivation of property and exceeded the municipalities’ legislative authority.

“This ruling is a significant moment for property rights in South Africa and clarifies the principles of legislative competencies of municipalities as one of the three spheres of government in South Africa. We are proud to have successfully represented Glencore at every stage of this matter, ensuring a just outcome for our client and setting a clear precedent for the future.”, state André Vos, director and disputes practice group leader for Norton Rose Fulbright South Africa, and Anneke Higgs, head of mining law.

The Court’s decision has far-reaching implications for municipalities and property owners across South Africa, emphasizing the need for legislative compliance with constitutional principles. This victory demonstrates Norton Rose Fulbright’s expertise in complex constitutional litigation, mining law and real estate law matters.