By Allan Seccombe
Mon, Mar14, 2011 06:32:46 AM
MINERAL Resources Minister Susan Shabangu pulled state-owned mining company African Exploration Mining & Finance Corporation into line with private firms on Friday, stripping it of exemptions granted by former minister Buyelwa Sonjica during the Eskom crisis in 2008.
There has been concern in mining circles that African Exploration would receive preferential treatment from the Department of Mineral Resources when applying for prospecting or mining rights and that certain conditions for private companies would not apply to the state miner, giving it an unfair advantage.
Ms Shabangu and Sandile Nogxina, the director-general of the department, have consistently said this will not be the case.
Ms Shabangu told the Prospectors and Developers Association of Canada in Toronto there was no reason for African Exploration to have these exemptions to four sections of legislation related to the granting of mining and prospecting permits, and the removal of minerals for stockpiling for security of supply.
On Friday, the department said it was withdrawing all exemptions granted to African Exploration under the Mineral Resources and Petroleum Development Act and the notice would appear in the Government Gazette today. The main effect of the exemptions was to speed up the processing and granting of prospecting and mining rights to African Exploration compared with a private company. Where a private company could wait for months, the state entity could be granted rights within a week. That has now fallen away.
An example would be the immediate acceptance of a prospecting right application by African Exploration, while private companies had to wait 14 days to hear whether their application was accepted or rejected.
Department spokesman Bheki Khumalo said African Exploration had submitted environmental management plans, environmental impact assessment studies, work programmes and social and labour plans for its ventures, much like private companies.
It was not exempted from these requirements.
The Chamber of Mines has welcomed the formation of a state-owned mining company but stressed that it must be treated no differently from private companies. "Our position is based on an assurance from government through the Department of Mineral Resources that this company will not be given an unfair competitive advantage to private- sector companies as this would send the wrong message to investors," chamber CEO Bheki Sibiya said last month.
African Exploration last month launched its first mining project, a R130m coal mine near Ogies in Mpumalanga, to supply Eskom power plants. The mine will start production at 800000 tons, ramping up to double that and potentially as much as 3- million tons a year.
African Exploration CEO Sizwe Madondo said the second project in its pipeline was an oil- from-torbanite venture.
African Exploration has finalised a feasibility study on the R2bn oil shale or torbanite project near Bethal in Mpumalanga. It would need to bring in a partner to help fund and provide the technology for the project, which would produce 10000-15000 barrels of oil a day from the third quarter of 2013, said Mr Madondo. (Business Day)
There has been concern in mining circles that African Exploration would receive preferential treatment from the Department of Mineral Resources when applying for prospecting or mining rights and that certain conditions for private companies would not apply to the state miner, giving it an unfair advantage.
Ms Shabangu and Sandile Nogxina, the director-general of the department, have consistently said this will not be the case.
Ms Shabangu told the Prospectors and Developers Association of Canada in Toronto there was no reason for African Exploration to have these exemptions to four sections of legislation related to the granting of mining and prospecting permits, and the removal of minerals for stockpiling for security of supply.
On Friday, the department said it was withdrawing all exemptions granted to African Exploration under the Mineral Resources and Petroleum Development Act and the notice would appear in the Government Gazette today. The main effect of the exemptions was to speed up the processing and granting of prospecting and mining rights to African Exploration compared with a private company. Where a private company could wait for months, the state entity could be granted rights within a week. That has now fallen away.
An example would be the immediate acceptance of a prospecting right application by African Exploration, while private companies had to wait 14 days to hear whether their application was accepted or rejected.
Department spokesman Bheki Khumalo said African Exploration had submitted environmental management plans, environmental impact assessment studies, work programmes and social and labour plans for its ventures, much like private companies.
It was not exempted from these requirements.
The Chamber of Mines has welcomed the formation of a state-owned mining company but stressed that it must be treated no differently from private companies. "Our position is based on an assurance from government through the Department of Mineral Resources that this company will not be given an unfair competitive advantage to private- sector companies as this would send the wrong message to investors," chamber CEO Bheki Sibiya said last month.
African Exploration last month launched its first mining project, a R130m coal mine near Ogies in Mpumalanga, to supply Eskom power plants. The mine will start production at 800000 tons, ramping up to double that and potentially as much as 3- million tons a year.
African Exploration CEO Sizwe Madondo said the second project in its pipeline was an oil- from-torbanite venture.
African Exploration has finalised a feasibility study on the R2bn oil shale or torbanite project near Bethal in Mpumalanga. It would need to bring in a partner to help fund and provide the technology for the project, which would produce 10000-15000 barrels of oil a day from the third quarter of 2013, said Mr Madondo. (Business Day)
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