Mineral Resources Minister Mosebenzi Zwane flagged a range of factors troubling the local mining industry on Monday‚ but participants at the Mining Indaba were disappointed at the lack of firm action to deal with their concerns.Issues Zwane addressed included regulatory uncertainty‚ an unsettled labour environment and corruption or favouritism in his department.
The delay of more than a year in correcting and passing a bill amending the Mineral and Petroleum Resources Development Act (MPRDA) has heightened uncertainty.
The bill has become mired in parliamentary processes to address problematic areas, which prompted President Jacob Zuma to return it to parliament early last year.
After meeting chief executives and investors before and at the indaba attended by about 6000 delegates‚ Zwane told a packed hall he was fully aware of the need to expedite the passage of the bill and allay concerns.
“I assure you that the government ... has prioritised the processing and finalisation of the MPRDA amendment bill as a matter of urgency‚” he said.
Later he said the bill would be finalised in the second quarter of this year‚ while a review of the Mining Charter‚ which governs the transformation of the sector‚ would be finalised by the end of April.
The bill is currently in the National Council of Provinces.
Chamber of Mines chief executive Roger Baxter said: “Bring it on ... We have been waiting for this amendment bill since 2012‚ so the sooner the better.”
The chamber started court proceedings against the department last year to seek a declaratory order on the empowerment obligations in the charter. It wants clarity on the contested “once empowered‚ always empowered” aspect of the charter.
The matter is due in court next month‚ but Zwane wants the parties to settle out of court.
“We have had engagements with the government on the process of trying to resolve the declaratory order,” Baxter said.
“The dual process in court and the discussions are continuing. We cannot predict or preempt what result we will get to in the short term.”
Mining lawyer and Herbert Smith Freehills partner Peter Leon said Zwane “made all the right noises about fast-tracking the bill and the Mining Charter”.
“If you actually consider his speech and reflect on what he said at his press conference, there wasn’t anything of real substance to give effect to these noble aspirations‚” he said.
Other delegates agreed. Grant Thornton mining law specialist Jacques Barradas said: “The minister’s speech was of a person still finding his feet. It was non-committal and non-specific.”
Anglo American chief executive Mark Cutifani delivered a bleak assessment for the year ahead after a difficult 2015.
Global mining stocks had lost $1.4-trillion (R22-trillion) of market value since 2011‚ he said.
“For many of us in the industry‚ 2016 is already shaping up to be the most challenging yet ... things may still get worse‚” he said. — BDlive
Right noises but ‘no substance’
Issues Zwane addressed included regulatory uncertainty‚ an unsettled labour environment and corruption or favouritism in his department.
The delay of more than a year in correcting and passing a bill amending the Mineral and Petroleum Resources Development Act (MPRDA) has heightened uncertainty.
The bill has become mired in parliamentary processes to address problematic areas, which prompted President Jacob Zuma to return it to parliament early last year.
After meeting chief executives and investors before and at the indaba attended by about 6000 delegates‚ Zwane told a packed hall he was fully aware of the need to expedite the passage of the bill and allay concerns.
“I assure you that the government ... has prioritised the processing and finalisation of the MPRDA amendment bill as a matter of urgency‚” he said.
Later he said the bill would be finalised in the second quarter of this year‚ while a review of the Mining Charter‚ which governs the transformation of the sector‚ would be finalised by the end of April.
The bill is currently in the National Council of Provinces.
Chamber of Mines chief executive Roger Baxter said: “Bring it on ... We have been waiting for this amendment bill since 2012‚ so the sooner the better.”
The chamber started court proceedings against the department last year to seek a declaratory order on the empowerment obligations in the charter. It wants clarity on the contested “once empowered‚ always empowered” aspect of the charter.
The matter is due in court next month‚ but Zwane wants the parties to settle out of court.
“We have had engagements with the government on the process of trying to resolve the declaratory order,” Baxter said.
“The dual process in court and the discussions are continuing. We cannot predict or preempt what result we will get to in the short term.”
Mining lawyer and Herbert Smith Freehills partner Peter Leon said Zwane “made all the right noises about fast-tracking the bill and the Mining Charter”.
“If you actually consider his speech and reflect on what he said at his press conference, there wasn’t anything of real substance to give effect to these noble aspirations‚” he said.
Other delegates agreed. Grant Thornton mining law specialist Jacques Barradas said: “The minister’s speech was of a person still finding his feet. It was non-committal and non-specific.”
Anglo American chief executive Mark Cutifani delivered a bleak assessment for the year ahead after a difficult 2015.
Global mining stocks had lost $1.4-trillion (R22-trillion) of market value since 2011‚ he said.
“For many of us in the industry‚ 2016 is already shaping up to be the most challenging yet ... things may still get worse‚” he said. — BDlive
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