By Lehlohonolo Lehana.
The International Zinc Association (IZA) Africa expresses concern over the South African Government’s proposed new Mineral Resources Bill.
The bill seeks to tighten state control over several aspects of the industry, including the transfer of rights, prospecting, artisanal mining and environmental management in an effort to combat regulatory uncertainty.
IZA Africa is warning that the Bill will devastate the country’s mining sector and have far-reaching consequences for the zinc and galvanizing industries.
This comes after Gwede Mantashe, Minister of Mineral Resources and Energy, visited the newly launched Orion copper and zinc mine near Prieska in the Northern Cape.
Simon Norton, IZA Africa Director says that the proposed Bill is “anti-employment, racially skewed, and destructive to foreign investment.”
Norton further mentions that, Mantashe’s support for the new Mineral Resources Bill, which appears to be driven more by political expedience than economic foresight, is a direct threat not only to mining, but to the broader value chain that depends on it.
“It beggars belief that a government would celebrate a new mining development on the one hand while pushing new legislation that would collapse the sector on the other and increase unemployment. “added Norton.
IZA Africa estimates that close to 50 000 tons of Special High-Grade (SHG) zinc, currently worth about R2.4 billion, is used annually in galvanizing steel for use directly and indirectly in mining in the Gauteng, Northwest, Mpumalanga and Northern Cape provinces. This equates to the use of over a million tonnes of galvanized steel for mining and steel structures