[miningmx.com] – ENERGY companies operating in South Africa had been left in limbo after proposed legislation that would give the country’s government a 20% stake in new ventures remained stuck in Parliament, said Bloomberg News.
While Parliament approved the Mineral and Petroleum Resources Development Amendment Bill last year, President Jacob Zuma declined to sign the proposal because he said it may violate the constitution, the newswire said.
“Without clarity, investment decisions will be hampered,’ Mike Davies, the founder of Cape Town-based Kigoda Consulting, which has advised oil companies, told Bloomberg News.
The state’s ownership provisions “are not clearly defined. This allows for multiple interpretations of the possible costs, which will make proper appraisal of potential exploration opportunities virtually impossible,” he said.
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