Mining rights moratorium and audit into paper boom
In the early 1800s USA mining and finance syndicate rush, a mine was 'a hole in the ground with a liar standing next to it', as Mark Twain had famously written.
In the 2000s SA New Order mining rush, a mine could be said to be 'an application in a reputedly connected liar's hand'. The need for a hole or a drill rig to draw in partners or investors, had been done away with.
Some current mining rights holders, in the words of DMR minister Susan Shbangu, are not interested in mining. Rights granted under MPRDA, and lodged on the NMPS system, were found to require an audit. The Minister had imposed a moratorium from 1 September 2010 on lodging of prospecting rights. There were some administrative shortcomings; “A significant number of rights had never progressed to issuing stage.” There were many more problems on the business side of the equation.
NO DRILL RIGS
Exploration commitments had raised expectations of a boom, but even in known ore bodies, the expected hive of exploration activity did not take place.
Preliminary audit results indicate that some rights holders:
· failed to start prospecting within 120 days as stipulated in the contract
· fronted for others, resulting in bogus or unsustainable transactions
· used consultants to 'disempowering' extent
· have no idea where their rights were granted
· have not complied with extensive drilling, amending their works programmes and financial provisions, thus increasing state risk exposure
· drilled illegally, increasing hazards to communities and land owners
· were de-registered or liquidated
· proliferated schemes
· sold some rights without ministerial consent
· some diamond procurers were not registered with the SA Diamond and Precious Metals Regulator.
Cleaning up
Non-compliance now attracts Section 93 notices and Section 47 procedures for cancellation of rights.
The Minister asked the Chamber of Mines to encourage its members to respond to queries from DMR officials to ”restore integrity to our regulatory system which is under attack because of perceptions of inefficiencies and irregularities.”
She wants to be informed of unbecoming conduct, also by “DMR officials involved in this process.”
Application rules
“Equally, it is crucial for Chamber members not to tempt our officials. We have implemented a code of good practice aimed at insulating officials and protecting applicants.
The DMR director general held a workshop with senior officials to complete guidelines for applications, approvals, community engagement, over-concentration, and optimal utilisation. These rules would soon be regulated.
Mining rights moratorium and audit into paper boom
In the early 1800s USA mining and finance syndicate rush, a mine was 'a hole in the ground with a liar standing next to it', as Mark Twain had famously written.
The Minister had imposed a moratorium from 1 September 2010 on lodging of prospecting rights. There were some administrative shortcomings; “A significant number of rights had never progressed to issuing stage.” There were many more problems on the business side of the equation.
In the 2000s SA New Order mining rush, a mine could be said to be 'an application in a reputedly connected liar's hand'. The need for a hole or a drill rig to draw in partners or investors, had been done away with.
Some current mining rights holders, in the words of DMR minister Susan Shbangu, are not interested in mining. Rights granted under MPRDA, and lodged on the NMPS system, were found to require an audit.
NO DRILL RIGS
Exploration commitments had raised expectations of a boom, but even in known ore bodies, the expected hive of exploration activity did not take place.
Preliminary audit results indicate that some rights holders:
· failed to start prospecting within 120 days as stipulated in the contract
· fronted for others, resulting in bogus or unsustainable transactions
· used consultants to 'disempowering' extent
· have no idea where their rights were granted
· have not complied with extensive drilling, amending their works programmes and financial provisions, thus increasing state risk exposure
· drilled illegally, increasing hazards to communities and land owners
· were de-registered or liquidated
· proliferated schemes
· sold some rights without ministerial consent
· some diamond procurers were not registered with the SA Diamond and Precious Metals Regulator.
Cleaning up
Non-compliance now attracts Section 93 notices and Section 47 procedures for cancellation of rights.
The Minister asked the Chamber of Mines to encourage its members to respond to queries from DMR officials to ”restore integrity to our regulatory system which is under attack because of perceptions of inefficiencies and irregularities.”
She wants to be informed of unbecoming conduct, also by “DMR officials involved in this process.”
Application rules
“Equally, it is crucial for Chamber members not to tempt our officials. We have implemented a code of good practice aimed at insulating officials and protecting applicants.
The DMR director general held a workshop with senior officials to complete guidelines for applications, approvals, community engagement, over-concentration, and optimal utilisation. These rules would soon be regulated.
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