South Africa Aims to `Correct' Mining Rights Law This Year, Minister Says
South Africa will aim to “correct” laws governing mining rights by year-end after Lonmin Plc and Impala Platinum Holdings Ltd. disputed the award of licenses.
Impala and Lonmin, the world’s second- and third-largest platinum producers, have challenged the award of permits to a unit of Holgoun Group for land where they say they already hold rights. Holgoun is part-owned by Sivi Gounden, a former director-general of public enterprises in South Africa.
An overlap in rights at Lonmin’s property occurred because of a “weakness” in the law, Shabangu said today in a speech in Cape Town. “As part of the review we’ve got to revisit that particular area and correct that particular area,” she said, adding that the state won’t alter mining rights already granted.
Disputes over mine licensing in South Africa have affected Anglo American Plc’s Kumba Iron Ore unit and Imperial Crown Trading Ltd. over the past year, as well as Lonmin and Impala. The government placed a six-month moratorium on the award of prospecting rights, effective Sept. 1, to audit the system, after suspending three ministry officials for maladministration.
Shabangu expects to lift the moratorium in March, she said today. The world’s largest platinum producer is Anglo Platinum Ltd.
To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net
To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net
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