S. African mining chamber lodges interdict to prevent suspension of mining rights issuing
The South African Chamber of Mines on Tuesday fielded an urgent application with the North Gauteng High Court to interdict Minister of Mineral Resources Mosebenzi Zwane from suspending the issuing of mining rights.
The Chamber said Zwane regrettably failed to withdraw the notice he announced on July 19, in which he invited submissions on his intention to suspend the processing of new mining and prospecting rights applications or their renewal.
The matter will need to be heard in urgent court on August 4 this year which is the deadline Zwane affords members of the public to respond to the notice.
The Chamber said it is seeking the urgent setting aside of the notice on one of two bases, namely either the Promotion of Administrative Justice Act (PAJA) or the constitutional principle of legality.
The Chamber claimed that the notice constitutes "an unlawful action" which will impose a damaging impact on the mining sector.
The Chamber also accused Zwane of acting "ultra vires" or beyond his powers under the Mineral and Petroleum Resources Development Act (MPRDA).
"The Chamber notes, with regret, that the industry has no option but to proceed with court action to ensure that the minister acts within the law, and in the best interests of the industry and the country," spokesperson Charmane Russell said.
In his notice to place a moratorium on the issuing of prospecting and mining rights, Zwane said his intention was necessitated by an urgent legal application lodged by the Chamber of Mines against him.
The Chamber applied to the North Gauteng High Court last month for an urgent interdict to prevent the government from implementing the 2017 Mining Charter which intends to increase black shareholding.
Zwane announced the Mining Charter on June 15, under which a new prospecting right must have a minimum of 50 percent plus one black person shareholding, including voting rights.
The Charter requires that a new mining right must have 30-percent black persons' shareholding from the previous 26 percent, with the 30 percent shareholding to be apportioned among employees, communities and entrepreneurs in a specific manner.
The mining sector expressed unhappiness for not being consulted properly before the Charter was released. The Chamber of Mines says the Charter could destroy South Africa's mining industry while actually undermining transformation attempts.
But the government announced on July 14 that it will not implement or apply the provisions of the controversial Mining Charter in any way, pending a court judgment in an urgent interdict application.