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Monday, 6 May, 2002, 19:59 GMT 20:59 UK
S African mining firms resist land law
Gold Fields mine worker
The law aims at better chances for black-run firms
South Africa's big mining firms have criticised a draft law which seeks to promote equal opportunities for black South Africans in the mining industry.


We want to ensure that there is a mining regime that is internationally competitive

Chamber of Mines

They are unhappy with clauses on the reallocation of unexploited mineral deposits and what they view as an inadequate right of appeal.

The Chamber of Mines is pressing for changes to the bill which it says fails to include amendments offered by the government in talks last summer.

"What we are saying is that the bill can be made better," the Chamber's chief executive, Mzolisi Diliza, told Reuters news agency.

Unused deposits

"We want to ensure that there is a mining regime that is internationally competitive."

Clauses that permit land to be reallocated if it is not being mined have proved particularly controversial.

The bill has been altered following the talks between the Chamber and the government last June.

Under the new proposals mining concessions would last for 30 years instead of 25 and could be renewed as long as the operator meets all its licence conditions.

Right of appeal

But the mining firms do not believe the bill yet contains adequate safeguards against government decisions to reallocate land.

"In at least one vital respect - the right of appeal against administrative decisions - the bill does not reflect the Mbulwa agreement" of June 2001, said Barry Davidson, president of the Chamber of Mines.

Although those talks lead to "significant" improvements, there are still "certain important aspects that need clarification" Mr Davidson said.

South Africa is the world's second biggest producer of gold and platinum and also mines coal and other minerals.

The country's big mining firms include AngloGold; Impala Platinum, the world's second biggest platinum producer; Gencor; Harmony Gold Mining; and Gold Fields.

See also:

12 Feb 02 | Business
Anglo commits to Africa
16 Apr 02 | Business
Mining firm reveals cost of HIV
22 Feb 02 | Business
Swiss mining firm moves in
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