[miningmx.com] — TAX incentives and promises to prioritise inadequate infrastructure are part of government’s strategy to attract buy-in from the private sector for the state’s proposed mineral beneficiation plan, Mines Minister Susan Shabangu said on Wednesday.
Delivering her department’s budget vote speech in parliament, Shabangu said the strategy was ready to be presented to cabinet and could be published for public comment towards the end of the third quarter.
“Critical to this is the creation of a policy regime that offers positive incentives like a deeper skills pool, favourable tax climate, lowering cost of capital and a realisation. to address urgently the inherent limitations imposed on the mining industry by amongst others the paucity of our rail and energy infrastructure,’ said Shabangu.
She said the proliferation of beneficiation industries in countries such as China and India has shown what could be possible when there is a focus on the entire minerals value chain, not only the mining sector.
“We already have a large supplier base that provides goods and services into the mining sector and also a large downstream beneficiation sector that exists where commercial opportunities are available,’ she said.
MINE HEALTH AND SAFETY
Shabangu told MPs she was concerned about worsening safety statistics; i.e. an 8% increase in fatalities during the first quarter of the year (from 49 in 2010 to 53).
“Can the mining industry say things are in order when the corrective measures that have been taken palpably demonstrate minimal impact as people continue to die in this industry? Is it correct to continue to mine unabated if people continue to lose their lives at this unacceptable rate?’
She said the department would review the financial penalties imposed upon employers for violating the provisions of the Mine Health and Safety Act, while also enhancing the capacity of the department to deal with safety issues.
“This includes the establishment of regional compliance and investigation units,’ she said. “The latter will exclusively focus on conducting mine inspections and audits, and the investigation units will be conducting investigations and inquiries.
“This will be strengthened by the appointment of legal advisers at the regional offices to assist with both investigations and inquiries, and assist us to enhance recommendations for prosecutions where necessary.’
She said the department would not hesitate to order the stoppage of unsafe mines, and would require company boards to submit quarterly reports on corrective measures being taken to improve mine safety.
Also, the review of the Mine Health and Safety Act would strengthen enforcement provisions and reinforce penalties, as well as containing amendments to ensure consistency with other laws, particularly the Mineral and Petroleum Resources Development Act (MPRDA).
MPRDA REVIEW
Shabangu said the bill was currently before a cabinet committee and would soon be submitted to parliament.
“We will be strengthening the law in areas where it allows the minister to invite applications for mining rights in areas that were previously granted, issued, revoked or even expired,’ she said.
“We are currently at the tail end of consultation on this issue and we anticipate that these amendments as well as new regulations will soon be tabled in parliament.’
