causing the dmr a major headache, page-2

Having well connected policital persons associated with NKP may be what we need to achieve tenure security.

It's an interesting story which underlines SA desire to develop the resources albeit in a manner which appears a little insensitive to outside investors.

The article quotes,

"South Africa is a loser, clearly. The government is shown to be corrupt in places, and hellbent on forcing through a social agenda; security of tenure is blown apart; and the country as a viable investment destination is further weakened.

Then there are the lawyers...

I have it on good authority that the Constitutional Court's decision to dissolve Genorah Resources' prospecting permit on the basis that it did not properly consult the Bengwenyama community's claim is causing the DMR a major headache.

Sandile Nogxina, director general of the DMR, spent part of the past week in KwaZulu-Natal, meeting with local communities who are fighting over the right to own certain coal properties in the region.

The message from the DMR is that activism over mineral rights will result in keeping the minerals in the ground longer than they should be - which doesn't create wealth for anyone. Better, he says, to negotiate a strong social and labour plan with the investors.

There's great irony in this, however.

If the goal of every black-owned empowerment company is to quickly flip mineral rights for gain, you can be sure there's another white-owned "advisory" firm, a veritable cottage industry of them, advising hitherto oblivous communities that they should seek to own mineable mineral rights in their district or environs.

Doubtless, legislation was required to liberate sterilised mineral rights held by South Africa's mining corporates. But the genie in the bottle is a malign scramble for wealth and gain."

As it's been said before the moment a substantial pocket of wealth is uncovered every man and his dog wants a piece of it.

Lets hope the DMR can short circuit the lawyers desire to profit too much from this situation by making a decision that can't be contested.