Buyelwa Sonjica, Minerals and Energy Minister, South Africa
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Minister signals changes to SA mining laws
Allan Seccombe
Posted: Fri, 22 Jun 2007

[miningmx.com] -- SOUTH Africa will change its mining laws to increase communities’ participation in mines, Minerals and Energy Minister Buyelwa Sonjica said on Friday.

Mining bosses were also singled out by Sonjica for the poor safety record on South African mines. She said chief executives would be held accountable for each death at their operations. In 2006, 199 people were killed on South African mines.

It was not immediately clear what Sonjica meant by wanting to increase community involvement in mines. It was unclear if it referred to communities holding equity in mining companies or if it meant changes to companies' social and labour commitments under the Mining Charter.

may have implications for BEE
When asked if this meant a change in the 26% minimum black ownership of companies, Sonjica said the proposal was in its very early stages and would be thrashed out between the government, industry and labour.

“That matter is going to be debated. This may have implications for the social labour plan. It may have implications for BEE (black economic empowerment),” Sonjica told a media briefing in Pretoria.

“We need to look at all of that as stakeholders. We are not yet there. I don’t want to commit to anything here and down the line,” she said. “We have agreed in principle we will do it and the debate is now going to begin.”

She was clear, however, that the Mining Charter was going to be amended to ensure greater community participation.

"We have decided to look at amending the law in a way that will enhance the participation of communities."

Some foreign investors, while recognising the need for redressing the wrongs of apartheid under the former white government, are unhappy about being obliged to sell a 26% stake in their potential South African investments.

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If mining companies do not, amongst other requirements, have 15% black equity ownership by 2009 and 26% by 2014, they will not qualify for prospecting or mining rights.

There is a strong emphasis on making empowerment partners as broadbased as possible to include communities near the mines, women's groups and a broader mix of people rather than just the few people who have grown immensely wealthy in the early days of empowerment.

Mzolisi Diliza, the chief executive of the Chamber of Mines, told Miningmx his understanding was that the desire for community involvement in mining companies did not revolve around equity participation.

It could extend to a ring-fencing of royalty payments, which are due to begin in 2009, to benefit these communities. This would involve negotiating with the National Treasury about the destination of the funds raised in royalty payments.

The definition of communities affected by mining extended beyond villagers living near a mine, but also communities from which labour was drawn.

Community entitlement has been enshrined in the Mining Charter, which forms part of the Mineral and Petroleum Resources Development Act (MPRDA) enacted in 2004, but these entitlements need to be fleshed out for when the Charter comes up for review in 2009, Diliza said.

Sonjica said the DME would seek changes to the tax and companies’ laws to ensure employee share ownership schemes were uniform and benefited workers.