[miningmx.com] — YOU can get a good conspiracy theory going on why the mineral resources department asked at the eleventh hour for the inclusion of President Jacob Zuma as a speaker the Indaba Mining Conference.
The conference, now in its 14th year if I’m not mistaken, is likely to be quiet this year but the inclusion of Zuma has raised all kinds of questions about whether he intends to deliver a seismic message to foreign and local investors.
I wonder whether he’ll address the mooted nationalisation of South Africa mines by saying definitively it’s not going to happen. Hopes for this fade somewhat when remembering Zuma has not often been definitive about economic policy.
He may also address possible changes likely to flow from the review of the mining charter and then extend the discussion to the Royalty Act, effective from May. This is the legislation that asks mining firms to pay a levy for use of South Africa’s mineral patrimony.
Or Zuma is just out to smooze investors; becalming them considering he was not the president the last time they met at the Indaba in February 2009.
I suppose what one can say is that the mining industry, its regulation remains a priority for government.
For the record, the DMR’s request was for Zuma to speak for 40 minutes after a brief 10 minute introduction by mines minister Susan Shabangu, another new incumbent for foreign investors to digest. (Better 40 minutes of Zuma than another Shabangu rant as per her address at the Chamber of Mines’ annual general meeting last year in which she accused the sector of acting like villains).
So, all eyes on the Indaba. Zuma is scheduled to begin his speech at 8.05am, February 2 in Cape Town.
All eyes, too, on Sandile Nogxina, director-general of the DMR. He says that the government review of the mining charter has been completed, and will be submitted to cabinet mid-January ahead of release to industry at the beginning of February.
Says Nogxina: “The review of the mining charter is really just some suggestions and findings for the industry to discuss.
“The charter was originally written on a consensual basis. And we want that to continue,” he said in an interview.
That doesn’t sound too onerous. But it depends. Will the government express dissatisfaction, as it has done before, on indebtedness of empowerment partners, and ask industry to find a way of avoiding this?
That’s likely to rankle industry big time.
And industry will have its own questions. I’m certain players in the mining sector will want to know why application for exploration rights is opaque at best amid claims that the non-transparent nature of the mineral right awards enables the DMR to dish out mineral rights to friends.
And how is the process of awarding new order mineral rights proceeding? Is there a backlog or has the DMR surprised its critics by keeping bang up to date?
It will make interesting reading.
