6 Questions
What was the main issue that sparked the conflict between Merafong and Anglogold?
The increase in cost of industrial water provided by Merafong to the mines around Carltonville.
What was the initial reaction of Anglogold to the increased water cost?
Anglogold complained to the National Minister for minerals and energy rather than engaging with the municipality.
What was the minister's response to Anglogold's complaint?
The minister overruled the municipality and reversed the water charge.
What should Merafong have done instead of threatening to cut off Anglo's water supply?
Merafong should have gone to court or to an intergovernmental platform to try to reverse the minister's decision.
What was the court's ruling on the matter?
The court stated that municipalities must work with National and Province, be good constitutional citizens, and solve disputes under section 41 and IGRFA.
What should municipalities do if they cannot resolve disputes through other means?
They must approach a court rather than taking the law into their own hands.
Study Notes
Merafong Municipality and Anglogold Dispute
- Merafong local municipality increased the cost of industrial water supplied to mines around Carltonville.
- Anglogold Ashanti, unhappy with the price hike, complained to the National Minister for Minerals and Energy instead of engaging with the municipality.
- The minister overruled the municipality's decision, reversing the water charge increase, although this was outside their constitutional authority.
- According to the constitution, water regulation is a municipal executive competence, and the minister's intervention was unconstitutional.
- Merafong should have challenged the minister's decision through the courts or an intergovernmental platform, but instead threatened to cut off Anglogold's water supply if it didn't pay the increased rate.
- The municipality eventually cut off the water supply, prompting Anglogold to take the matter to court.
Court Ruling and Constitutional Obligations
- The court ruled that municipalities must work with national and provincial authorities and resolve disputes through constitutional means, specifically Section 41 and the Intergovernmental Relations Framework Act (IGRFA).
- Municipalities should not take the law into their own hands; instead, they must try to solve disputes through negotiation and, if necessary, approach a court to resolve the issue.
Dispute between Merafong Municipality and Anglogold over industrial water charges, involving the National Minister for Minerals and Energy.
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