Regulatory uncertainty in South Africa’s mining industry is hindering private investment in the world’s top platinum and major gold producer, the National Treasury says.
“Regulatory uncertainty ... is also inhibiting growth in private investment,” it said in statement released by Finance Minister Pravin Gordhan.
The government has tried to allay investor fears in the key sector after a series of controversial deals involving politically connected figures, including the nephew of President Jacob Zuma, raised concerns about mining rights in Africa’s largest economy.
Minister of Mineral Resources Susan Shabangu recently introduced a range of measures to reduce regulatory uncertainty while rooting out corruption in the awarding of licenses.
The clamp-down included a moratorium on accepting prospecting applications, allowing for an audit of licences granted, and developing a new licence-process tracking system.
New legislative amendments are expected in 2011 as the government tries to clarify a number of issues, among them the interpretation of regulations on the transfer of mining rights and rules preventing the fragmentation of mining rights.
