New mining Bill will formalise bribery

Despite strong opposition from the mining and energy industries, the Department of Mineral Resources (DMR) has indicated it is going ahead with the most noxious aspects of the Mineral and Petroleum Resources Development Amendment (MPRDA) Bill.

In a meeting of the Mineral Resources Portfolio Committee in Parliament, the Department of Mineral Resources has indicated no move away from the plan to increase the discretion of the Minister and her officials.

Industry critics have pointed out that, unlike legislation, regulation can change at short notice and this Bill will mean even less certainty in the mining industry than there is at present. This is part of a trend in this government to allow ministers to make rules at whim - effectively to bypass Parliament.

The DA has repeatedly pointed out that the National Development Plan calls for greater, not less certainty in mining law.

The response of the DMR has been to promise that it will consult with the mining industry widely before it issues regulations. There are two points to make here: 

• Consultation does not mean the government will listen to objection; and 
• Effectively government is putting out a sign asking parties affected by regulation to make it an offer. This is the mere formalization of bribery.

A mining jurisdiction where companies are dependent on the goodwill of the government of the day will not attract new investment. This means our mining industry will not grow, and may well shrink, with the attendant loss of jobs.

Statement issued by James Lorimer MP, DA Shadow Minister of Mineral Resources, October 24 2013

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