The Mineral And Petroleum Resources Development Act Of 2002: A Paradigm Shift In Mineral Policy In South Africa

Cawood, F. T.
Organization: The Southern African Institute of Mining and Metallurgy
Pages: 12
Publication Date: Jan 1, 2004
Inauguration of the new political dispensation in South Africa in1994 initiated a dynamic shift in the ownership, management and development of the country?s affluent mineral heritage. The process of substituting the old South African regime with a new equitable system started soon after the 1994 election of the African National Congress (ANC) to parliament. The Congress?s Freedom Charter revealed the intent of the new dispensation when it called for radical transformation of mineral development. However, since then there have been important changes affecting the rules of mineral development. These are: ?A drastic change in politics ushered in by negotiation, a spirit of reconciliation and a desire to settle disputes peacefully ?The globalization of the South African mining industry in tandem with the opening of domestic mineral resources to foreign capitalists and ?The introduction of sustainable development as a holistic approach to mineral development in order to replace traditional narrow-minded environmental management. Each of these significantly shaped the new mineral investment environment of South Africa. This paper represents a summary of the historical developments leading to the current Mineral and Petroleum Resources Development Act No. 28 of 2002, its regulations, the much publicised Broad-Based Socio-Economic Empowerment Charter, its associated Scorecard, and the Draft Royalty Bill.
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