Minerals

The Mineral and Petroleum Resources Development Act (Minerals Act) came into effect on 1 May 2004 and vests the right to prospect and mine in the State. The new law sees a profound change in property rights in SA's mining sector, replacing private ownership of mineral rights with public ownership and requiring mining companies to convert their old-order rights to new-order rights within 5 years. To convert, companies will have to comply with the empowerment provisions of the mining charter.

These rights are to be administered by the government of South Africa in order to:

• Promote equitable access to the nation’s mineral resources by all South Africans,
• Expand opportunities for historically disadvantaged persons, who wish to participate in the South African mining industry,
• Promote employment and advance the social and economic welfare of mining communities and the major labour sending areas; and
• Promote beneficiation of South Africa's mineral commodities.