Mantashe faces criticism over changes to mining law draft

IOL News

21 hours ago

Activists and experts have accused Minister of Mineral Resources and Energy Gwede Mantashe of bowing to pressure from powerful mining companies.
South Africa's Minister of Mineral Resources and Energy, Gwede Mantashe, is facing strong backlash over his recent changes to the draft Mineral Resources Development Bill.
Critics say the revisions favour big mining interests at the expense of communities, the environment and the national push for economic transformation. Two key changes in the updated draft have sparked outrage.
The first is the removal of the requirement for Black Economic Empowerment (BEE) participation in applications for prospecting rights.
The second is the scrapping of a clause that required ministerial approval when control of a listed company holding mining rights changes.
Activists and experts have accused Mantashe of bowing to pressure from powerful mining companies. David van Wyk, a respected researcher in the field, questioned the minister's intentions. 'Prospecting is where it all begins,' Van Wyk said.
'Companies make millions by selling these rights after identifying valuable mineral deposits. Without BEE, transformation becomes just a word. And when companies change hands without any oversight, it makes it easy for them to dodge their environmental and social responsibilities.'
Van Wyk also warned about the consequences of poor regulation in the sector. 'We already have more than six thousand abandoned mines in this country.
These are environmental disasters, and the communities around them suffer the most. If the minister is not informed when ownership changes, there is no one to hold accountable when something goes wrong.'
Christopher Rutledge, director of the organisation Mining Affected Communities in Action, said the changes show how the government has shifted its loyalty from people to business. 'The Bill's amendments are not about fixing technical errors. They are a political decision that turns away from the goals of transformation and accountability,' he said.
Rutledge believes the removal of BEE requirements in prospecting is a deliberate decision to maintain control of the industry in the hands of the same elite. 'This ensures the same old faces keep control of the mineral wealth. It opens the door to secret deals, takeovers and asset sales, with no regard for the people on the ground or the environment.' He added that the state needs to play a far stronger role.
'Public ownership of minerals and the mining process is the way forward. The revenue should support a sovereign wealth fund that benefits all South Africans, not just a few. Right now, the state-owned mining company barely has a footprint in the sector, and no one knows how much has gone into the sovereign fund.'
Trade union federation Cosatu has also raised concerns. Spokesperson Mathews Parks said the federation would engage with Mantashe to get clarity on the goals of the changes.
'Legislation must be aligned with economic transformation. We cannot afford to backtrack now.'
Meanwhile, the Minerals Council South Africa has welcomed some parts of the draft but says more work is needed to support investment.
Public comments on the Bill will close in August, but for now, the debate continues over whether the government is acting in the national interest or putting profits first.