/ 18 April 2011

Widespread violations in mining sector

South Africa has found widespread violations during an audit of miners and other mineral rights holders in the country, minerals minister Susan Shabangu said on Monday.

Shabangu said the inspections, conducted during a moratorium on the awarding of mining rights and licenses, had resulted in over 400 notices being issued for prospecting violations. Over 700 notices were issued for environmental violations.

“We will be revoking some of the licences [on environmental violations],” Shabangu said.

The minister was speaking at the official launch of a new online mineral rights application system that aims to ensure transparency and end administrative blunders.

A series of scandals last year and disputes over rights upset many companies operating in the world’s top platinum producer and major supplier of gold, denting confidence in a sector vital to South Africa’s economy.

The mining ministry imposed a six-month halt on new prospecting bids last year to overhaul mining laws, iron out irregularities in the way rights are awarded and audit existing exploration and drilling contracts.

Shabangu said the department had extended the moratorium on the awarding of mining rights in the country’s Mpumalanga province by six months.

“I would like to repeat that the moratorium is being lifted everywhere in our country except Mpumalanga where it will remain in place until the end of September this year,” Shabangu said. — Reuters