PRESIDENT Jacob Zuma has given reasons for referring the Mineral and Petroleum Resources Development Amendment Bill back to Parliament.
The controversial bill was sent back because it did not pass constitutional muster and it was therefore required by the constitution to refer it back to the National Assembly for reconsideration, spokesman Mac Maharaj said on Monday.
Economists have warned that in its current form it could scare off investors and create difficulties for the mining sector.
The president had found a number of faults with it.
He cited concern over SA’s international trade obligations, excessive discretion given to the mineral resources minister, and that public hearings were not held properly.
The bill to regulate the resources sector was passed by Parliament in a rushed session ahead of last year’s elections. At the time, politicians from opposition parties, and, privately, some African National Congress (ANC) MPs, expressed concern about the constitutionality of the bill.
In his letter to Parliament dated January 16, seen by Business Day, Mr Zuma echoed this concern and outlined other problems. The first was that the definition of the act could be unconstitutional as it elevated the codes of good practice for the minerals industry, the industry’s housing and living conditions standards, as well as the Amended Broad-Based Socio-Empowerment Charter for the South African Mining and Minerals Industry to the status of national legislation.
Mr Zuma said the bill gave the minister of mineral resources the power to amend or repeal those "instruments", effectively by-passing the constitution.
In addition, there was concern that the bill might conflict with international agreements such as the General Agreement on Tariffs and Trade, and the Trade, Development and Co-operation Agreement.
Mr Zuma’s third concern was about the National Council of Provinces and the provincial legislatures not providing enough time for public consultations "in that the consultation period was highly compressed and there appears to be insufficient notice of the public hearings held by the provincial legislatures." The final point was that the bill was not referred to the House of Traditional Leaders for comment as it would affect customary law or the customs of traditional communities.
Anglo American CEO Mark Cutifani said, after discussing the act with government representatives in Davos, he understood the concerns. "I understand their logic and their concerns about oil and gas and about some of the elements which need more work, and on the basis of our conversation we will support them — though we want to make sure the principles we have already agreed are retained."
Chamber of Mines chief operating officer Roger Baxter said would it continue to work with the government to finalise the bill.
With Sapa
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