Issued by African National Congress - Parliament
19 June 2003
Madam Speaker,
Honourable Members
Today, marks another significant milestone on the road towards the transformations of the minerals and petroleum industry of South Africa. Last year, on 26 June, this august house passed the Mineral and Petroleum Resources Development Bill, 2002. This piece of legislation set the direction for the overall transformation of the minerals and petroleum industries.
Consultation with stakeholders
Our Constitution requires that Government consults with the publixc in the development of policy and legislation and that Parliament plays an oversight role over the activities of the executive.
When this amendment Bill was presented to the Portfolio Committee for consideration, the Committee felt that the Department had not sufficiently consulted with stakeholders. The committee therefore, requested to go back and consult with the stakeholders. Our intervention led to an improved an Bill and one which did not cause a lot of raucus within the industry. This is an indication of the important role Parliament plays in making sure that the Executive gives effect to its constitutional obligations.
The public hearings were conducted in a manner which gave all parties an opportunity to express their views on the Bill and present alternatives to the proposals presented by the Executive. The hearings were open to all those who wished to participate. It is therefore, the view of the committee that we have sufficiently consulted with the public. In so doing we have complied with our constitutional obligations and rules of Parliament relating to consultation.
Therefore, the Bill presented to this house today, broadly represents the views of all stakeholders in the minerals and petroleum industries.
Critique of the Mining Titles Registration Act, 1967
The Mining Titles Registration Act, 1967, gave effect to the registration requirements of the Mining Rights Act, 1967 and other related mining legislation of the time. As you may recall, it was the policy of the Apartheid and colonial Governments to exclude blacks from participating in the minerals industry. Since the registration Act dealt with rights granted in terms of a discriminatory legislation, its obvious that the discriminatory practices were also reinforced in and by the registration legislation.
The promulgation of the Minerals Act, 1992 led to the duplication of registration of prospecting and mining right in two government departments. Those rights granted prior to 1992, the date of commencement of the Minerals Act, 1991 continued to be registered in the Mining Titles Office and those granted after 1992, were registered at the Deeds Office. This state of affair cannot be allowed to continue within a legislative framework which commits Government to "effective and efficient administration" and to the principles of Batho Pele and service delivery.
In a nutshell, the Mining Tiles Registration Act, 1967 is completely out of sink with the legislative and policy realities of the new South Africa. It is therefore, crucial that that Act be brought in line with the governance and legislative principles of the new South Africa. In so doing, Parliament is giving effect to the Constitutional provision that states that "all law that was in force when the new Constitution took effect, continues in force until subject to any amendment or repeal" by the National Assembly.
Linkages with the Mineral and Petroleum Resources Development Act
The Mineral and Petroleum Resources Development Act, guarantees security of tenure of prospecting and mining rights, an efficient and effective administration of rights and the registration thereof. Furthermore, that Act enshrines the transformatory agenda of Government.
In line with the requirements of the law, the Department in consultation with the stakeholders, developed the Broad bases socio-economic empowerment charter and the score card. These two documents gives effect to the empowerment policy of Government. These instruments, have re-defined Black Economic Empowerment by expanding the areas within which the original definition was confined to. The new definition addresses, issues such as equity, participation in management, human resources development and employment equity, community development, procurement, migrant labour and housing and living conditions and beneficiation.
The amendment of the 1967 Act, will ensure that Government is given the capacity and ability to ensure that all the requirements of the Charter, of the Score card other provisions of the law, are being complied with and where non-compliance is identified the appropriate action in terms of the Mineral and Petroleum Resources Development Act are taken.
For the first time Government is being given a tool which will assist Government too ensure that within the context of community development, which is crucial for putting food on the table of those who otherwise would not have had something to put on the table, companies are carrying out and implementing the requirements of the law.
It is for the abovementioned reasons that this house should pass this Bill today.
Contentious Issues raised by other parties
One of the issues raised by the opposition revolved around the issue of succession to rights. Our law enshrines the principles of "use-it-or-lose-it" and compliance with the granting criteria for one to be operating within the industry. Our experience has shown, succession of right, created a multiplicity of owners of the same right within the same area. This led to delays in establishing who the holders of the relevant rights were and also raised the entry costs into the industry. We should not repeat the mistakes of the past - allowing for multi-fractioned ownership of prospecting and mining rights runs counter to the principles of State custodianship of mineral and petroleum resources. Since the rights are granted originally by the State, they should revert back to the State, as the original grantor. Who have then wishes to prospect or mine in the same area must comply with the requirements of the law.
This provisions, empowers the Executive to brake the monopolistic shuckles in the mining industry, by so doing we will open more opportunities for those who to participate in the industry. The fact that my father or mother was a business person within the mining industry, should not entitle me to his or her mining or prospecting right, event though having regards to the requirement of the law, I will not have qualified for a right to be granted to me.
Acknowledgment
On behalf of the Committee, we wish to thank all those stakeholders who made contribution towards the development of this Bill. It is only with your valuable contribution that we were able to get this Bill to the level of quality it is presented to this house. The Committee also, wishes to express its gratitude to the Department and the Ministry for the job well done.
Finally, we express our heartfelt thanks to the people of South Africa who time and again have expressed their confidence in the leadership of the African National Congress
Amandla