Cape Town | Tuesday
THE South African government on Monday introduced a revised version of a controversial Minerals Development Bill, which effectively transfers control of mineral rights from private companies and individuals to the state.
A memorandum attached to the second draft of the bill — renamed the Mineral and Petroleum Resources Development Bill –says it is accepted internationally that states have sovereignty over all their mineral and petroleum resources.
The bill aims to give effect to this principle.
The first draft of the bill raised concerns when it was published towards the end of 2000.
The mining industry feared their existing rights would be endangered with a transition of mineral rights from private companies and individuals to the state, and that the legislation could affect long-term planning and the securing of finance.
The industry subsequently held discussions with the department of minerals and energy in an attempt to address concerns, and in June last year the Chamber of Mines said agreement had been reached on about 80% of the issues.
Among the concerns were lack of legal redress and security of tenure where mining authority and mineral rights had already been granted.
Also at issue was a fear that Mineral and Energy Minister Phumzile Mlambo-Ngcuka was being given too much power in granting or removing mining and prospecting licences.
Agreements included making these powers open to challenges in court.
The memorandum says the law will promote equitable access to mineral and petroleum resources for all South Africans, expanding opportunities for the historically disadvantaged.
The opposition Democratic Alliance (DA) gave “an initial guarded welcome” to the bill.
DA representative Ian Davidson said he believed it represented a considerable improvement on the old bill and “somewhat of a climb-down by the minister in a number of key areas”.
Among other things, it retreated from the concept in the original bill of the state being the owner of the mineral rights, focusing now on its appropriate right to administer the rights in a way conducive to the objects of the bill.
It also specifically recognised the rights of mineral rights holders to compensation, should the minister decide to expropriate, Davidson said. – AFP