A mineral rights policy framework for promoting the small-scale mining industry in South Africa

[摘要] This study addresses a principal issue associated with the small-scale mining industry inSouth Africa, namely mineral rights. Firstly it defines a small-scale mine and its role inthe South African economy. It then examines the current mineral rights policy and theconditions under which the current mineral rights policy could be reformed in order toencourage the growth of the small-scale mining sector. Various models and proposalshave been examined in an attempt to suggest the most suitable policy in terms ofacquisition and distribution of mineral rights,Acquisition of mineral rights remains one of the major obstacles facing small-scalemining companies. The need to change the legal framework surrounding the acquisitionof mineral rights is clearly demonstrated in this project report. Simplification of the legalframework would lead to easy access to mineral rights by both large-scale and small-scale,South African and foreign mining companies and remove the traditional complexitiesassociated with the current South African mineral rights policy which tend to sterilisemineral rights. These complexities include subdivision of mineral rights, potential lockupof mineral rights by private companies and individuals and the State. Analysis ofmethods to rationalise the mineral rights policy have demonstrated that nationalisationand expropriation of mineral rights are counter productive and can not be used as vehiclesfor access to mineral rights.In order to strengthen the small-scale mining industry changes to the mineral rights havebeen proposed. A model mineral rights policy framework has been designed to promotesmall-scale mining. Introduction of a mineral fights tax, taking into consideration thespecifics of the South African mining industry, similar to that of Swaziland of 1958 isproposed as one of the ways of discouraging the sterilisation of mineral rights. Itintroduces a cost element in the locking up of mineral rights by private companies andindividuals. It is envisaged that when the cost of holding these mineral rights is greaterthan the benefits of holding the mineral rights, mineral rights holders would relinquishthem thereby allowing access to these mineral rights to other interested parties. Therelinquished mineral rights should revert to the State, which in tum should allocate themto qualified mining companies. Due considerations of the unique characteristics of theSouth African mining industry need to be taken into account when designing any mineralrights policy. Implementation of any such policy should therefore be done with theconsensus of the mining industry.Access to State mineral rights is also considered vital. Whilst it is important to providethe small-scale mining sector with access to mineral rights it is recognised that thesuccess of the sector depends many factors, mineral rights among others. A holisticapproach that take into all facets of small-scale mining are included in the proposedpolicy framework for the development of the small-scale mining industry in SouthAfrica.

[发布机构] University of the Witwatersrand