Buyelwa Sonjica, Minerals and Energy Minister, South Africa
Send this article to a friend
Print this page

» The burning questions at Indaba
» Which uranium stock is hot?
» How will the market remember 2007?
» People to watch at Indaba 2007

If you want to share this article, simply sign into one of these sites and select your network. It’s that easy Click here to find out more about how to use this button

SA to change Mining Act
Allan Seccombe
Posted: Tue, 06 Feb 2007

[miningmx.com] -- SOUTH AFRICA is to tweak its mineral legislation to address complaints about the three-year-old legislation and smooth the way for further investment in one of the largest employment sectors in the economy, mines minister Buyelwa Sonjica said on Tuesday.

“There have been concerns that have been raised by the industry on a number of issues, but there are certain things that are sacrosanct and that we will not change,” Sonjica told Miningmx on the sidelines of the Mining Indaba in Cape Town.

“We are looking at changing parts of the Act that are onerous to the industry, but these will not be fundamental changes,” she said.
not fundamental changes
The provisions governing equity levels, environmental management plans and the social involvement requirements will remain untouched.

The Department of Minerals and Energy launched the review of the Mineral and Petroleum Resources Development Act (MPRDA) late last year, and has reviewed submissions made by the industry.

The state law advisors are going through the submissions and suggestions collated by the DME to make the necessary changes. The revised Act will then pass through the parliamentary processes.

“We are hopeful that the amendments will be completed and enacted by the end of this year, but parliament has a very busy programme this year,” said Abe Mngomezulu, the deputy director general at the DME.

Click Here to subscribe to our daily newsletter
One of the major changes coming for legislation governing the mining sector and downstream industries is defining the level where the mining process ends and where beneficiation starts and what credits mining companies will earn if they venture into beneficiation. Under the MPRDA, mining companies can offset their equity empowerment requirements against their progress in beneficiation, or adding downstream value to their production.

The DME is focussing on five key production streams: gold, platinum, chrome, manganese and industrial minerals to define at what level the mining process ends. For example, the mining process ends when gold is 99.99% pure. What happens to the metal there after is considered beneficiation.

Another important change is that exploration companies have to submit their data to the Council for Geosciences instead of the DME.

Other changes are on a semantic level and clarifying terms that vexed the industry.

The Diamond Amendment Act and the Diamond and Precious Metals Act were enacted in 2006, but have yet to be implemented. The DME is waiting for Treasury to two list the State Diamond Trader and the precious metals regulator that will regulate the Act.

“Once Treasury lists those institutions we’ll be able to start implementing those Acts within two and a half months,” Mngomezulu said.