Richards Bay leaders and residents back ‘beneficiation’ bill
RICHARDS Bay residents and business leaders seem to have largely supported the proposed Mineral and Petroleum Resources Development Amendment Bill that aims to ensure that more of the country’s resources are locally beneficiated, and that companies’ BEE components are protected.
The overarching aim of the bill is to find a balance between addressing business needs while implementing economic transformation.
Around 30 residents and a few business leaders attended the public hearing where members of the KZN Legislature’s portfolio committee on economic development and tourism unpacked the bill for public comment in the city yesterday.
Senior legal adviser to the KZN legislature, Sthembiso Nsele, said the bill had been promulgated in 2002 to create an enabling environment for growth in the sector.
“In 2008 the bill was amended with the main changes dealing with environmental issues, including environmental management, but there are inherent weaknesses that are being addressed,” he said.
Section 11, which deals with change of ownership, requires that notice of partitioning and/or disposing of rights by listed and non-listed companies must be submitted to the minister.
“This is to discourage the dissolution of BEE components of a company, and reaffirms the rights and interests of that company,” Nsele said.
Section 9 allows a dual application system whereby the minister invites applications for prospecting and mining rights via notice in the Government Gazette.
This is in respect of land on which mining/prospecting rights have lapsed or been cancelled and requests submitted to the minister by people who have identified land that has mineral deposits/products or forms of petroleum.
Nsele said the minister would then deal with responses to invitations on a “first-come-first-served” basis.
Sections 10 and 16 deal with the consultation process with interested and affected parties.
Nsele said that at the Mtubatuba presentation there had been a misconception that “stakeholders” were only people in authority.
“This is not so, as all people living within an area of mining operations may be affected and therefore individuals must be part of the consultation process,” Nsele said.
Section 23 deals with a mining company’s social labour plan which must be renewed every five years. Beneficiation of mined resources is dealt with in Section 26 of the act, which in support of the National Development Plan, requires that these resources are used to the optimal benefit of the country while ensuring the transformation of the mining sector.
“Operators would be required to set aside a certain percentage of their mined resources for local beneficiation at mine gate prices.
“This is aimed at limiting the export of raw materials by non-producers,” Nsele said.
Amendments to sections 1, 17 and 28 deal further with transformation in terms of broad-based black economic empowerment and contributing to social development, not only in their areas of operation but including labour-sending areas.
A new section 42A has been inserted to deal with historic residue stockpiles and residue deposits, giving owners two years from promulgation of the bill to apply for mining rights or mining permits for a period not exceeding 30 years.