The South African Department of Minerals and Energy (DME) has warned that the April deadline to apply for new order mining rights will not be extended, Mining Weekly has reported.

Last month, Buyelwa Sonjica, the Minister of Minerals and Energy, expressed her anxiety at the failure of mining operations in the country to apply for mining rights conversions, noting the "snail's pace" of progress so far.

Speaking at the South African Mining Summit in Johannesburg, Ms Sonjica, quoted by Mining Weekly, highlighted that a reluctance to go through the conversions process as set out in the Mineral and Petroleum Resources Development Act (MPRDA) would not be tolerated - and that the time limit was absolute.

"While the Act provides for security of tenure, submissions closer to the 30th April, 2009, deadline will create unnecessary bottlenecks in processing these applications," she commented.

"I therefore urge all those with old-order rights to expedite such submissions, as the DME is ready to process accordingly."

"Failure to convert will not be without consequences," she added.

According to Peter Leon, Webber Wentzel partner and International Bar Association Mining Law Committee Senior Vice-Chairperson, the disinclination of mining operations to apply for new order mining rights can be put down to a fear that their application might be rejected.

They are therefore trying to lodge their applications for new order rights as close to the wire as possible.

Source:

DME vows there will be no extension to April deadline as more than 70% of mining rights still have to be converted, 10/10/08

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