CAPE TOWN, July 20 (Xinhua) -- Mineral Resources Minister Mosebenzi Zwane on Thursday announced his intention to place a moratorium on the granting and processing of any new applications for prospecting and/or mining rights.
In a notice, Zwane invited representations from relevant stakeholders on his intention which he said falls in line with the Mineral and Petroleum Resources Development Act.
The minister said he also intended to place a moratorium on the processing of applications for renewal of a prospecting right and/or renewal of a mining right.
The intention to issue a moratorium was necessitated by the urgent interdict lodged by the Chamber of Mines against the minister, according to the Department of Mineral Resources (DMR).
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 increases 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 between 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.
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.
According to Zwane's Thursday notice, all written representations on his intention to suspend issuing of mining rights must reach the DMR by August 4, 2017.
The final moratorium issued would be in force until further notice, according to the notice.
"It is the minister's view that this matter must be handled in a responsible and reasonable manner, and thus the undertaking not to implement or apply the provisions of the 2017 Charter until that application has been heard and judgment given, which is anticipated to take place in September 2017," the DMR said.
