shabangu on nkwe case

Mining law review to tackle factionalism

Andr Janse van Vuuren | Tue, 08 Feb 2011 12:34

[miningmx.com] -- THE prevalence of community factions siding with competing mineral rights applicants would be addressed in proposed legal amendments, Mines Minister Susan Shabangu said on Tuesday.

Speaking on the sidelines of the Mining Indaba conference in Cape Town, Shabangu said current guidelines in the Mineral Resources and Petroleum Development Act (MPRDA) on miners interaction with local communities, as well as who may act as community representatives, were too vague.
She said the issue would be addressed by proposed amendments to the MPRDA, a process initiated in September 2010 when Shabangu said the act contained too many ambiguities.

The definition of what a community entails has been left wide open, said Shabangu. This would be streamlined (in the amendment of) the act.

She added the new law would also set much stricter rules on how miners consult with communities.

The issues on consultation and community factions came to the fore when the Constitutional Court in November set aside prospecting rights awarded to Genorah Resources on two farms in the platinum-rich Bushveld Complex, ruling that the company failed to properly consult the Bengwenyama-Ya-Baswati community who owned and resided on the properties.

The Bengwenyama subsequently lodged their own application for the rights, with Genorah also making a new bid, claiming the support of a rival faction.

Shabangu said a draft of amendments would be submitted to cabinet in April, with the consultative and parliamentary processes expected to be completed by year-end.
Addressing the conference earlier on Tuesday, Shabangu berated mining companies for paying lip-service to community involvement, saying miners too easily disregard those communities which surround operations.

When we review the act, well make sure communities benefit much more, she said. Its no good building a hall and think youve done enough. Its more about changing a community (for the better) in a sustainable way.

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