Business Day

Mantashe: system fraught with corruption

• Minister vows to clean up backlogs in applicatio­n process for mining rights and licences

- Linda Ensor Political Writer ensorl@businessli­ve.co.za

Mineral Resources Minister Gwede Mantashe says the applicatio­n process for mining rights and licences is “fraught with corruption”. These and other challenges are inhibiting the developmen­t of the sector, he says. The problems contribute­d to a decline in prospectin­g rights, unprocesse­d applicatio­ns and unexplaine­d red tape.

Mineral Resources Minister Gwede Mantashe conceded on Tuesday the applicatio­n process for mining rights and licences was “fraught with corruption”.

These and other challenges were inhibiting the developmen­t of the sector. The problems contribute­d to a decline in prospectin­g rights, unprocesse­d applicatio­ns and unexplaine­d red tape, Mantashe said in his budget vote speech in Parliament. He undertook to tackle the problems “aggressive­ly” and to restore the reputation of the mineral resources department.

“The preliminar­y investigat­ion has found that the backlog on new mineral right applicatio­ns stretches as far back as 2012 in some regional offices.

“It has further been found that the applicatio­ns for renewal of prospectin­g right applicatio­ns go as far back as to 2010.

“The implicatio­n of unprocesse­d renewal applicatio­ns is that it blocks any other party from applying for mineral rights in that area. No satisfacto­ry reasons were advanced as to why we have these backlogs. The word in the corridors is that applicatio­ns from ‘known’ or ‘paying’ applicants are prioritise­d. Internal systems to detect delays in the processing of mineral right applicatio­n is nonexisten­t. Renewal applicatio­ns are normally dealt with on the applicant’s request, otherwise it is hardly attended to. “To unleash our economy, we must overcome this hurdle to ensure that prospector­s can prospect and those with the legal permits and the means to mine can mine. Among various considerat­ions before us is an audit of all applicatio­ns, permits and mining rights. In addition, various measures to deal heavily with corruption,” he said.

The fact that there was a large a number of mines and shafts that were not operationa­l and were being kept on a care and maintenanc­e basis had contribute­d to the massive decline in mining production.

These mines were sidelined in favour of high-grade mines.

He would be discussing the “use it or lose it principle” with companies to encourage them either to use their assets or allow others to do so.

Mantashe said he was reluctant to enforce this law, which has not been used before. His comments were made in the context of the 8.4% plunge in year-on-year mining production in March.

On the Mining Charter, he said the government aimed to finalise and gazette the revised charter in June.

 ??  ?? Gwede Mantashe
Gwede Mantashe
 ?? /File picture ?? New broom: Mineral Resources Minister Gwede Mantashe says a cleanup is needed to increase output and unleash the economy as licences and permits should be awarded timeously.
/File picture New broom: Mineral Resources Minister Gwede Mantashe says a cleanup is needed to increase output and unleash the economy as licences and permits should be awarded timeously.

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