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Monday, 19 August, 2002, 17:17 GMT 18:17 UK
No black power mining law 'this year'
Gold mine
Talks are inching forward
Enactment of South Africa's controversial new law to increase black ownership of the mining industry could be delayed until next year, a senior government official has said.

The mining firms and the government have yet to agree on drafts of two laws needed to implement the Minerals and Petroleum Resources Development Bill, which cleared parliament in June.

They must come up with a charter setting out targets for black ownership and a law spelling out the levels of revenue that mining companies must pay the state.

"At this stage I don't think we're going to get it through this year," Treasury Director Maria Ramos said of the revenue-setting bill.

Tension over mineral rights

The original legislation led to vigorous debate, in particular because it transfers ownership of all South Africa's mineral resources from the mining companies to the state.

Mining firms will have to re-apply for the mineral rights, and to do so they must prove they are working with black partners.

The government was forced to deny last week that it planned to nationalise the industry, which is the mainstay of the South African economy.

Mining firms have said they agree in principle with giving a greater share of ownership to the country's black majority.

Seeking consensus

But talks are still taking place over levels of ownership.

The government was forced to concede last week that its proposals for black-run groups to own up to 30% of South Africa's mining industry when the new licenses are issued were a negotiating position.

It has also suggested new mining operations should be 51% black-owned within 10 years.

Mrs Ramos was speaking on the eve of fresh talks between the government, the mining firms and black empowerment groups to thrash out details of the black empowerment charter.

She said the money-raising bill was "incredibly complex" and that the government wanted to consult widely before presenting a draft to parliament.

"I'm hoping that we end up with a piece of legislation that will be supported," she said.

Earlier, Finance Minister Trevor Manuel had said he could not promise the new revenue bill would not mean higher tax payments for mining firms.

Until both pieces of enabling legislation have been agreed, the original bill will not be sent to President Thabo Mbeki to sign.

Any attempt to rush the signing of Minerals and Petroleum Resources Development Bill into law risks scuppering the whole reform policy as it sets a time limit of six months for the government and mining firms to agree targets on black ownership.

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