by Stanley Karombo
JOHANNESBURG, Oct. 6 (Xinhua) -- Tighter mining regulations are causing investors to shun and lose confidence in South Africa's mining industry, investors said on Thursday.
According to investors attending a two-day Indaba mining conference in Johannesburg, mining investors who were willing to come and invest in South Africa are now considering other African countries such as Ghana, Rwanda and Botswana.
Botswana remains a leading mining destination for investors thanks to its attractive regulatory environment, while Ghana has created an independent minerals committee to reduce corruption in mining industry, said Peter Leon, Partner and Africa Co-chair of Herbert Smith Freehills.
Their focus was on removing administrative discretion, Leon said. "as far as possible from the law that's the one thing that Botswana did ... so there is no discretion in the granting of licenses ... If a license is compliant you basically get it in six weeks compared to South Africa where it takes a section 11 consent."
In South Africa, the issuing of license needs a consent of a minister of mine.
Meanwhile, South Africa's mining lobby has given up talks with the mining ministry over changes to the industry's charter, which include raising targets for black ownership, saying the matter will have to be settled in court. The review will be heard between December 13 and 14.
The industry body said talking to the South Africa minister of mines Mosebenzi Zwane would not yield any positive results.
The mining industry is currently challenging the unilateral implementation of the 2017 Reviewed Mining Charter at the North Gauteng High Court in Pretoria.
According to the paper filed in the court, the industry is pleading for the charter to be reviewed or set aside, arguing that its implementation would be harmful to the industry and the economy. Enditem
