Use it or lose it Bill will boost mining communities
Solomon Makgale
December 18 2000
Johannesburg - The draft Minerals Development Bill sought to entrust the country's mineral resources to the State and guarantee security of tenure for existing mining companies, Phumzile MlamboNgcuka, the minister of minerals and energy, said yesterday.
MlamboNgcuka said the Bill also aimed to promote rural economic development and social upliftment of communities affected by mining, promote black participation in the sector, while redressing past racial discrimination.
To achieve this, all mining houses, which at present contribute 40 percent of South Africa's exports directly and 10 percent more indirectly through closely associated beneficiated products, would be prevented from hoarding mineral rights through the "use it or lose it" principle.
The Bill sought to remove barriers to entry and to make specific provision for assistance to historically disadvantaged people. MlamboNgcuka said in cases where ownership of private property was transferred to the State, the owner would be compensated.
"In the event that the proposal for the draft Bill amounts to expropriation of property, the State will pay compensation as required by the constitution," she explained.
She said the proposal to pass the ownership of mineral rights to the State was not a concept unique to South Africa. "On the contrary, it is an internationally accepted concept," she explained.
MlamboNgcuka said the concept served the purpose of addressing the State's responsibilities in "controlling, managing, administering and granting access to South Africa's mineral resources".
Responding to concerns over giving discretionary powers to the minister, MlamboNgcuka said the power had been restricted in that the minister or the officials were guided by prescribed objective criteria. She said the criteria would be strengthened by detailed provisions in the regulations.
The minister told reporters that the draft Bill would assist the government "recognise that mineral resources are the common heritage of all South Africans and collectively belong to all the people of South Africa".
The minister also announced plans to abolish the Diamond Board and have its functions transferred to the mining department and the South African Revenue Service. The Chamber of Mines, an organisation representing mining companies, expressed concern about mineral rights in that any changes to the existing system should deal with existing rights fairly, as directed by the constitution.
The other two worries were that the changes should not disrupt existing mining and exploration activities, and should offer security of tenure for all investors, that were fully internationally competitive.
Tokyo Sexwale, the executive chairman of Mvelaphanda, the mining and energy group, welcomed the publication of the draft Bill saying that it had opened the debate "in this crucial sector". "Much more work needs to be done," he said. |
