Draft legislation that would give the South African state the right to exercise full and permanent sovereignty over mineral resources was released for public comment on Monday.
The draft Minerals Development bill -- intended to transform the white-dominated mining industry -- provided for compensation on expropriation of property, said Mineral and Energy Affairs Minister Phumzile Mlambo-Ngcuka.
She told a press conference her department would submit the bill to the Constitutional Court before it became law to ensure its constitutionality.
Under the terms of the proposed bill, existing companies with ongoing mining activities would have to apply for licenses in exchange for the mineral rights they currently held.
But the minister said it would be difficult for her to refuse the applications for new licenses unless they failed to comply with certain conditions, including having a business plan.
The state's trusteeship over mineral resources was "an internationally accepted concept," Mlambo-Ngcuka said.
"The draft bill makes provision for mining companies to contribute towards the socio-economic development of the areas they are operating in," the minister said.
"Every South African is entitled to benefit from the exploitation of South Africa's mineral resources," she added.
In a joint statement on Monday, Chamber of Mines president Rick Menell and chief executive Mzolisi Diliza said they had significant concerns about the draft legislation, naming three critical criteria:
-- that any changes to the existing mining and minerals rights system must deal with existing rights fairly, as directed by the Constitution;
-- that any changes should not disrupt existing mining and exploration activities; and
-- that any changes should offer security of tenure for all investors which was fully competitive internationally and in keeping with international best practice.
"Our initial understanding of this bill leaves us with significant concerns in regard to all three of these issues," said Menell and Diliza.
"The chamber will engage government vigorously but in a constructive spirit to ensure that these three objectives are fully met," they said -- PRETORIA (AFP)
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