Mining minister 'delusional'

Paul Vecchiatto

MINERAL Resources Minister Susan Shabangu was probably the only person at this week's Mining Indaba in Cape Town who believed that amendments to the Mineral and Petroleum Resources Development Act would introduce certainty to the sector‚ DA mineral resources spokesman James Lorimer said yesterday.

Lorimer was speaking after Shabangu delivered her keynote speech at the indaba. "The minister told us how the new act would introduce certainty and stability into the sector‚" he said. "If this is true‚ then she is the only person at this entire conference who [believes that]."

Lorimer said the draft legislation gave the mineral resources minister huge discretionary and regulatory powers that would "have a chilling effect" on the mining sector.

During her speech‚ Shabangu said the bill‚ which has been the subject of public debate over the past year‚ was being finalised by parliament.

"The bill will not create an uncertain regulatory regime‚" she said.

Shabangu said the amended legislation aimed to optimise mining‚ minerals and upstream petroleum development in South Africa‚ among other objectives.

She said that with regard to mineral value addition‚ a provision in the draft law would enable the game-changing‚ "win-win value proposition" for the local processing of minerals.

The minister also said the bill provided for "modalities" for state participation in the development of the upstream petroleum industry.

In a media conference after her speech‚ Shabangu came out against the splitting of the bill into two pieces of legislation – one for the mineral resources sector‚ the other for the oil and gas sector.

Lorimer said he felt frustrated that‚ while South Africa's massive mineral wealth should be powering the economy‚ instead the draft bill was creating a "massive wasted opportunity".

On Shabangu's opposition to splitting the bill‚ Lorimer said she had not attended a mineral resources committee meeting for at least two years.

"It is the committee that will take that decision forward‚" he said. – BDlive