A new version of draft legislation governing mineral and mining rights in South Africa has removed the minerals and energy minister’s discretion in granting those rights. It also guarantees security of tenure to existing mining and prospecting companies.
The Minerals and Petroleum Resources Development Bill replaces the Minerals Development Bill, which last year received harsh criticism from the industry, owing to concerns over the powers it gave the executive branch of the government.
The bill aims to transfer all mineral rights to the state; also, companies will have to apply to the ministry for prospecting and mining rights. The government would control and manage access to the country’s natural resources.
However, in contrast to the original bill, the minister of minerals and energy would have to grant the rights based on stipulated criteria, not his own discretion.
Under the new criteria, companies would have access to finance and the technical ability to prospect or mine, and they would be required to demonstrate further support for “black economic empowerment” and create jobs accordingly. As well, stricter environmental regulations would be enforced.
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