Angloplat calls for greater clarity on rights conversions 30th June 2005

The head of legal services at the world's biggest platinum miner, Angloplat, has warned that there remain a number of difficulties regarding the process of rights conversion.

At present leading platinum and other precious metals miners in the country are being required to transfer rights for many operations in a bid to help South Africa's junior mining sector flourish.

Under new regulations some of the mining powerhouses in the country are now beginning a process of transferring holdings in some resources, typically to emerging black economic empowerment firms.

The move is designed to facilitate the development of mining industry among the previously disenfranchised indigenous people, but many involved in the process say there remain issues with the manner in which the process is being conducted.

Angloplat's chief concern is that too many qualifications and restrictions are now coupled with the process, which go beyond the legal requirement and which inevitably hold up the process, making for an environment that can be unattractive to investors.

Leon Bekker told Mining Weekly: "Instead of implementing the law, we have now enter-ed a process of fine-tuning the compliance documents."

Last year 11 rights conversions were submitted by Angloplat, but, so far, none have been cleared leading Mr Bekker to urge the government to adopt a position of greater clarity.

He argues that if the government could better define exactly what is expected of mining firms it might avoid the "uncertainty and perceptions that are being created around the conversion process", speeding up the conversion process for both senior and junior miners.

The Department of Minerals and Energy insists that the rules are clear, however, instead calling on industry to be better prepared for the conversion process and the requirements it brings with it.track


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