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Mbeki must intervene in minerals legislation - Peter Leon, attorney, WWB
In an interview on ClassicFM @ 18:50 on Thursday, 2 August 2007
[miningmx.com] -- SOUTH African president, Thabo Mbeki, had to intervene in the application of minerals legislation because it was beginning to affect the health of the economy, a leader attorney has said.
According to Peter Leon, an attorney at Webber Wentzel Bowen, the South Africa's Mineral and Petroleum Resources Development Act (MPRDA), promulgated in May 2004, was beginning to affect the balance of payments.
"This needs some serious intervention not just from the minerals and energy department, but from the president," Leon said. He was speaking on Classic Business, a week nightly radio programme.
The South African mining industry had lost 32% in investment over the last three years owing to technical deficiencies in the mining bill, said Leon. "That is alarming."
Leon's comments come hot on the heels of key amendments to the MPRDA. In terms of the amendment
process, the act was due for a reading in the National Assembly in August even though it contained "technical deficiencies," said Leon.
One of the specific problems with the MPRDA was that mineral rights were being granted to empowerment companies and not the company that qualified for the mineral rights in the first place.
Said Leon: "If a mining company applies for prospecting rights and they come along with the black economic empowerment (BEE) company, the minister grants the rights to the BEE company. It is pretty daft".
Leon also claimed a number of mining companies had accused the South African government of corruption. "Sometimes government prescribes to these companies who they should do the BEE deals with. This really brings the question of whether or not there is some corruption in the process," he said.
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