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SA improves transparency in mining industry

Pretoria – South Africa’s mining cadastre system will give enhanced transparency on mining license applications when it goes live, says Mining Minister Susan Shabangu.

The minister was addressing the Prospectors and Developers Association of Canada Convention on Monday, following a moratorium imposed on prospecting applications in order to audit issued prospecting rights culminated with the launch of the system on 7 February 2011.

“This process culminated with the launch of the mining cadastre system on 7 February this year, which is scheduled to go live when the moratorium is lifted later this month. The mining cadastre system will further enhance transparency in the application process and assist us with our intent to simplify and expedite the right application processes,” said Shabangu.

A mining cadastre is the basis of a secure mineral rights system and records the geographical location, ownership and time validity of mining rights, and compliance with the payment of fees and other requirements to keep a concession valid.

The moratorium was imposed last September and comes to an end at the end of March this year.

Shabangu, who is on an international road show on South Africa’s mining investment climate, assured delegates that the country was open for business. She, however, acknowledged that it was disappointing to observe that there were negative sentiments regarding the administrative processes of the Department of Mineral Resources due to their systems not responding accordingly.

“I am encouraged because it helps us going forward to factor in the lessons from the study, while at the same time I am saddened by the fact that the level of non-compliance is still very high,” she explained.

The Fraser Institute’s recent ranking of South Africa in the lower half of 79 mining jurisdictions has also been noted by the department. The report does not say anything new that the department has not already said, Shabangu noted, adding that the department was aware of the challenges it faces.

Mining stakeholders are determined to position the industry along a maximum growth trajectory. The establishment of the Mining Growth, Development and Employment Task Team (MIGDETT) – which is made up of government, business and organised labour – has developed a strategy that analysis the current environment, identifies constraints and proposes ways to mitigate these constraints.

The mitigations were already linked to existing government plans, such as the New Growth Path, which prioritises the mining industry value chain as one of the growth nodes of the country’s economy.

“Even after a century of active mining, South Africa remains the wealthiest mining jurisdiction, with a minimum non-energy in-situ valuation of $2.5 trillion, with an economically exploitable lifespan in excess of a century. The mining skills developed in South Africa’s mining industry in the past 100 years have contributed immensely towards building and strengthening the global mining industry,” said Shabangu.

The loss of life in the sector was also cause for concern. “Although there has been a substantial improvement on accidents with the lowest fatalities ever in 2010, our health and safety track record continues to be a matter of great concern. The social and economic impact to the country and families as a result of the unacceptable loss of life cannot be over-emphasized.” – BuaNews

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