[miningmx.com] – ONE of the reasons for wanting the quick passage of amendments to South Africa’s mining legislation is that it promises to improve the wait time for mining and environmental licences to a year from three years.
In that respect, the amendments can’t come quickly enough especially as something seems awry in the Department of Mineral Resources (DMR) and Department of Water Affairs (DWA). There are no less than three events in the past month demonstrating how a sluggish regulator can directly hurt business.
One is the failure of Aquarius Platinum’s $37m sale of platinum assets to a Chinese consortium which was put back so many times – nine in all – that the consortium turned on its heels and left. Aquarius said at the time it had been kept waiting on South African government approvals.
The second is plans by Ivanhoe Mines to lay off hundreds of people at its IvanPlats platinum prospect in the North West province. Ivanhoe says it has no option but to consider retrenchments of people who should have been put to work if only a mining licence could have been timeously granted.
A penny for the thoughts of Robert Friedland, president of Ivanhoe Mines. He has run a formidable PR job with the South African government promising excellent wages and working conditions for miners working at IvanPlats.
He also recently completed a broad-based BEE deal in double quick time (Lonmin and Northam have just completed their BEE deals after several years). Yet little good faith seems to have been generated with the South African government.
A third, albeit relatively minor case, is no less important to the company. Wescoal Holdings CEO, Andre Boje, said he became so frustrated in his wait for an integrated water use licence for his recently acquired Elandspruit mine from the Department of Water Affairs that he sent his chairman to chase the permit.
“We found an application for an integrated water use licence sitting in someone’s office so our chairman [Robinson Ramaite] had to personally walk it through the department [of Water Affairs] to get it approved,’ Boje said. “They are just very tardy.”
Earlier this week Miningmx lodged questions regarding the delays with the DMR, but as yet has not received a response. It will update this story when a response is received.
One question is whether the DMR can do anything to resuscitate the interest of the Chinese consortium in the assets that Aquarius Platinum wanted to sell?
It said at the time that “… it would appear that … crucial information might have not been well communicated to the Chinese investors and the situation was made to look as if the DMR was delaying the situation, which is not the case”.
“The DMR will be engaging with all parties with a view of finding a solution to this matter,” it said.
Mines minister Ngoako Ramatlhodi, who has now presided over the DMR for five months this weekend, said earlier this month that he was “… increasing the capacity of the DMR to supervise the labour and social plans… [A]t the moment, we are not fully empowered to do so. Certain things get through the cracks and people get away with murder”.
Might it be that his work in beefing up the capacity of the DMR is temporarily affecting its responsiveness to the industry … Or is this a vain hope?
