[miningmx.com] — GOVERNMENT might force the mining sector to participate in beneficiation activities, at least as far as the supply of raw materials were concerned, according to a speech to be delivered by former Director General Sandile Nogxina at the Africa Down Under mining conference in Australia.
Nogxina, who was appointed special advisor to Minister of Mineral Resources Susan Shabangu in July, would be addressing the conference in Perth on Wednesday on Shabangu’s behalf. Shabangu is part of the ANC’s disciplinary committee that would this week review the disciplinary charges brought against Youth League leader Julius Malema.
A copy of Nogxina’s speech was made available on Tuesday.
Pointing to Cabinet’s adoption of the policy framework for beneficiation in July, Nogxina said government was aiming to finalise the strategy by November.
“The beneficiation strategy will provide a framework within which orderly development of the country’s mineral value chains will occur,’ Nogxina said. “The specific interventions that will be located within the framework, provided by the strategy, will therefore encourage the development of the mineral value chain to the point of final product manufacturing where most of the labour absorptive industries are located.’
Nogxina said the proposed amendment Bill for the Mineral Resources and Petroleum Development Act (MPRDA) would make provision for the new strategy, especially for security of minerals supply.
“There is also a need to align the provisions of Section 26 (of the MPRDA) with the cabinet approved beneficiation strategy to ensure that there is sufficient feedstock available for downstream beneficiation,’ he said.
Section 26 of the MPRDA provides for the Minister of Mineral Resources to promote beneficiation, and in doing so might compel mining companies to beneficiate minerals up to a certain level.
MORE AMENDMENTS
Nogxina mentioned more new provisions to be contained in the proposed amendment Bill. These included:
• making provisions for the mining of associated minerals;
• prescribing a detailed consultation process to protect the interests of landowners;
• strengthening the Minister’s powers to address the rehabilitation of derelict and ownerless mines;
• making provision for the processing of a single application to finality, before accepting other applications in respect of the same minerals and land;
• making provision for the issuing of an integrated license that would include water use rights as well as environmental authorisations.
STATE INTERVENTION
Nogxina defended the continued involvement of the state in the mining sector.
“The question concerning intervention is not whether but how, and how much,’ he said.
“We are mindful of the effect of the current nationalisation debate on our country as an investment destination. We are also mindful that there is nothing as unhelpful as debates for the sake of debate, particularly about something that may have long-term consequences for our nation.
“I am confident that, when the right time arrives, the ruling party will take sensible far-reaching decisions that will balance, among other things, imperatives such as economic growth and the creation of decent and sustainable jobs, the security of tenure together with transformation, role of the state in the economy, the need for investment in the mining industry, as well as local beneficiation.’
