Mining industry calls on dept to give clear regulation
Anglo American's deputy chairman Norman Mbazima says the effects of poor and inconsistent regulation in the mining sector cannot be overestimated.
CAPE TOWN - Anglo American's deputy chairman Norman Mbazima says relations between the mining industry and the Department of Mineral Resources are at an all-time low.
Mbazima has addressed the mining indaba in Cape Town.
He spoke shortly after Mineral Resources Minister Mosebenzi Zwane appealed to investors to back government's efforts to bring about greater beneficiation of the country's mineral wealth.
Zwane did not refer to the stand-off between his department and the industry over the Mining Charter or the length of time it is taking to finalise crucial mining legislation.
Mbazima says investors need a clear and consistent regulatory environment if they are to invest the vast amounts that mining demands.
“Very large amounts of capital are needed to start a mine – your capital is deployed over a very long period of time before it can be recouped.”
Mbazima says amendments to the Minerals and Petroleum Resources Development Act are taking years to finalise while the industry and government are in court over the controversial Mining Charter and the “once empowered, always empowered” principle when it comes to transformation in the sector.
“The relationship between the department of mineral resources and industry is at an all-time low.”
He says the effects of poor and inconsistent regulation in the mining sector cannot be overestimated.
(Edited by Refilwe Pitjeng)