The agricultural union TAU South Africa is in favour of talks instead of a court battle to resolve its objections to new mineral resources legislation.
A letter has been sent to the Department of Minerals and Energy, the union’s attorneys said on Monday.
On Friday, TAU SA informed the department of an intended class action lawsuit to secure compensation for farmers and other people who lost their mineral rights in terms of the new law.
In a letter of intent to the department, TAU SA demands compensation of R10-billion for the dispossessed holders of the so-called old-order mineral rights.
The union however acknowledges that a class-action lawsuit could have a negative impact on the country’s economy and discourage foreign investments.
”According to us, the consequences of the class action could be severely disruptive for the country’s economy,” the letter read.
”Our clients want to circumvent these negative consequences and have therefore decided to request the high-level negotiations.”
The union made it clear that it retained the option of litigation should negotiations fail.
The union also said in its letter that a provision for individuals to apply for prospecting licences was not practical as very few farmers had the finances to do a geological study, an environmental impact study and other such studies which were required by the department.
According to the new legislation farmers and other holders of old-order mineral rights lost those rights to the government when the new Act came into effect on May 1.
Initially, TAU SA approached Agri SA to join forces with it to fight the effects of the new minerals legislation. Agri SA, however, said in a newsletter last week that farmers would have to institute individual claims for compensation for lost mineral rights.
The union said a lawsuit would not have any legal grounds in terms of existing legislation.
Agri SA would, however, be able to approach the court at a later date on behalf of its members to ask for an explanatory order regarding the mineral legislation to ascertain whether dispossession has in fact taken place.
TAU SA spokesperson Tinus Taute said on Monday that the union was still receiving information from farmers and other people who had so-called old order mineral rights.
”We are receiving faxes in droves,” he said.
TAU SA has given the department until the end of January 2005 to pay out the compensation or to engage in negotiations over the issue.
Spokesperson for the ministry, Yvonne Mfolo, said the department would always be open for negotiations over the issue.
She said many companies had indicated that they wanted to claim compensation.
”It is a little premature, though,” she said.
”We cannot expropriate mineral rights. Nobody’s rights will be expropriated. Mineral rights and minerals belong to the people of South Africa. The government will only be the custodian of these rights and administer it.”
She said the legislation was in line with international practice.
”We did a lot of research for this law. It is the international norm for the government to be the custodian of mineral rights.” – Sapa