The Democratic Alliance said that provisions in the Mineral Resources & Petroleum Development Act are being used in a way which impedes foreign investment.
Mr Hendrik Schmidt spokesman at DA said that the mineral resources department had sought to prevent Lonmin, an international platinum and associated metals mining company, from selling by products of their platinum production, such as nickel, copper and chrome, on the tenuous basis that Lonmin had not converted its mineral rights in terms of the act.
He added that "We must immediately ask why the ANC government would take the dramatic step of interfering in the interests of an international company, the repercussions of which have already threatened other international investors."
Even if government had some basis for halting production in terms of the act, in the current economic climate where South Africa was desperately seeking to encourage foreign investment and hence create jobs, any legislation that could arbitrarily be used as an economic hindrance, not facilitator, should be reviewed.
Mr Schmidt said that "However, media reports indicate that our mining sector has in fact been threatened by an action that would ostensibly benefit ANC comrades."
Lonmin received a letter from the department's North West provincial manager Mr Aaron Khavile, which in effect halted their operations in associated metals they had invested in as part of their core business.
Disturbingly, according to recent media reports, the company set to directly benefit from Lonmin halting sales of these metals was Keysha Investments 220, a company allegedly led by two women with strong links to the Intelligence Services Council, a division of the state security department.
He said that "The department's interference fuels the perception that the ANC government is entertaining moves towards nationalization, as it is cronies and people with links to the state and the ruling party who are increasingly receiving exclusive access to mining deals."
In the case of Lonmin, and other examples, such as the ArcelorMittal SA and Imperial Crown Trading debacle, the ANC could be seen as exploiting grey areas in the act, as the legislation did not make clear provisions for mining groups to sell their associated metals for their own profit.
(Sourced from www.busrep.co.za)
