[miningmx.com] – SPECIAL economic zones around mines, a new South-African mineral-based “national champion’, and stronger community participation are some of the initiatives mines minister, Ngoako Ramatlhodi, announced at the Mining Indaba in Cape Town to remedy the wealth gap in South Africa.
“Despite being home to the some of the largest reserves of extractable minerals, Africa is the least beneficiary of the mineral wealth,’ Ramatlhodi said. “To remedy this, a Mining Vision for Africa was developed which would give life to this.’
Ramatlhodi said he was aware of the restructuring plans of some mines in South Africa and that government will take advantage of it and “turn adversity into advantage’.
This will give birth to a “new South-African mineral-based national champion’.
Ramatlhodi said government is considering buying assets from companies that want to sell some of their domestic operations, such as Anglo American and BHP Billiton.
“We want to engage with experienced players – companies that won’t sell and run and leave the flock in the veld looking for greener pastures. We want to say to these companies, “this is the way in which we want you to dispose of your assets.’’
Ramatlhodi reassured investors that they’re welcome in South Africa and that the country’s constitutional democracy and strong monetary and fiscal regime are testament of this.
South Africa is eager provide regulatory certainty and for this reason the Minerals and Resources Amendment Act was referred back to parliament to make sure it passes constitutional muster.
“There were some legalities with the Act and I’m testing some provisions in the Act at the Constitutional Court upfront,’ he said.
“We have respect for the rule of law in South Africa and anyone who feels short-changed can approach our courts. Our policies are as clear as the blue skies of South Africa and you’ll be hard pressed to find a similar legal regime in the world.’
The Act was also sent back to parliament to make provision for the separation of oil and gas exploration, Ramatlhodi said.
In the current Act oil and gas exploration are also included with regard to compliance. Government still intends to propose a free-carried interest on oil and gas exploration – 20% for the state and 10% for black economic empowerment (BEE) in the Act.
“If the free-carried interest is stated in the regulations it may be arbitrarily changed. But we’ll put a cap on it so that we don’t take away control from investors,’ Ramatlhodi said.
As for labour relations in the mining industry, Ramatlhodi said government encourages the various parties to act within the ambit of the laws of the country.
“We are firm on discouraging violence as an instrument of contest between unions and we’ll arrest, charge and put those in prison who don’t adhere to this. There’s no turning back on that.’
Wage negotiations in the gold mining industry will start in May and Ramatlhodi said he has had discussions with CEOs of gold mining companies and asked them to be open and transparent when they negotiate with unions.
“We’ll say to these companies, bring your books and let’s see your figures and what is available in the kitty. We should also consider looking at CEOs remuneration packages.’
When asked about how his department intends on dealing with the electricity supply crisis, Ramatlhodi said government is allowing independent power producers to come onto the grid.
“We’ve received applications from producers to build a third coal-fired station. These have been processed. We’re tackling the electricity shortage because we know there’s no mining without electricity.’
