Govt eyes SA’s mineral rights
DARREN SCHUETTLER, Johannesburg | Wednesday
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THE South African government will unveil its long-awaited Minerals Development Bill next week which will vest the country's extensive mineral resource rights in the state.
A spokesman for Minerals and Energy Minister Phumzile Mlambo-Ngcuka said the bill would address industry concerns about security of tenure, and discuss compensating companies that lost mineral rights.
South Africa's mining industry is particularly worried about the "use it or lose it" portion of the bill, which would stop companies from hoarding mineral rights.
"The minister will be talking about the security of tenure issue because it is of concern to a lot of mining companies," said Mlambo-Ngcuka's spokesman Kanyo Gqulu.
The minister will release the draft bill in Pretoria on Monday, and seek public input before it becomes law.
Under the new bill, a company that held mineral rights but had no plans to exploit the deposit would have six months to make a presentation to government.
If the government is not satisfied with the company's plan, then the state will take ownership of those rights, Mlambo-Ngcuka told industry leaders last month.
South Africa is one of the few countries in the mining world that has a system of dual state and private ownership of rights.
Critics say this system allows big companies to hold rights with no immediate intention of using them, which discourages the development of small-scale mining, a key industry growth area.
The government has argued that the current system has an element of racism and curbs black enterprise in an industry dominated by whites for more than a century.
Mlambo-Ngcuka said last month that she was disappointed with the level of black empowerment in mining, and would make it a top priority in 2001.
Bobby Godsell, chief executive of world number one gold producer AngloGold, acknowledged this week that the industry's management and ownership ranks were far too white.
The Chamber of Mines, which represents most major mining firms, is not opposed to making the state the custodian of the country's natural resources. But it wants the bill to properly acknowledge the constitutional rights of existing owners of mineral rights and properties.
Some R70bn in mining projects are in the pipeline in South Africa over the next five years, and the Chamber has warned the bill would determine future investment commitments. - Reuters
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