PARTIES FORMAL AGREEMENT ON MORATORIUM MADE AN ORDER OF COURT
Johannesburg, 4 August 2017: The Chamber of Mines and the Department of Mineral Resources (DMR) have reached an agreement at the High Court of Gauteng (Pretoria), after the Minister of Mineral Resources formally stated that he does not intend to take any of the steps contemplated in the notice published in the Government Gazette of 19 July 2017. The DMR has therefore formally agreed not to pursue the contemplated suspension of the processing of section 11 applications, new mining and prospecting rights applications and renewals of existing rights.
This follows a statement last night by the DMR on the eve of the application by the Chamber for an urgent interdict against the Minister’s notice, indicating that it would not pursue the intent stated in its notice. Given that a media statement does not in itself constitute a formal withdrawal, the parties reached an agreement setting out the Minister’s undertaking, which was made an order of court this morning.
The order of court also provides that the Chamber’s application for an urgent interdict is postponed sine die and costs are reserved.
Presiding Judge Monama made the agreement a court order and had stern words relating to the Minister’s failure to formally communicate his position in respect of the Chamber’s urgent application.
The judge remarked that the Minister’s approach, both in issuing the intended moratorium notice and in his failure to respond to the application, showed “the utmost disrespect” for the Constitution, the rule of law and the courts. He further remarked that the Minister’s conduct serves to tarnish Brand South Africa, and called for the Minister to submit an affidavit within 14 days explaining his failure to file an answering affidavit.
While the court order is satisfactory it does not take away the fact that significant damage has been done to the confidence of the industry as a result of the Minister’s reckless actions.
Statement issue by the Chamber of Mines. 4 August 2017
Previous day’s statement:
CHAMBER OF MINES RESPONDS TO DMR IMPLEMENTATION OF MORATORIUM ON THE PROCESSING OF APPLICATIONS SUBMITTED AFTER 19 JULY 2017
Johannesburg, 3 August 2017: It has come to the attention of the Chamber of Mines that the Department of Mineral Resources (DMR) Head Office has instructed all the DMR regional offices to stop processing any section 11, new mining right or prospecting right applications submitted by mining companies after 19 July 2017. In essence, the DMR is implementing the DMR Minister’s proposed moratorium on new applications in terms of section 49 of the MPRDA despite the closing date for comments on the proposal only being on 4 August 2017.
This moratorium will effectively freeze investment, prevent many companies from restructuring and may lead to even more job losses in the sector. It flies in the face of the calls by the industry’s trade unions for the moratorium proposal to be withdrawn and in terms of the Chamber’s urgent court interdict application to have the notice and proposed moratorium stopped from being implemented and thereafter reviewed and set-aside. This demonstrates the DMR leadership’s disregard for the crisis facing the mining sector and the negative implications that a moratorium may have on the viability of struggling mining companies and the jobs that could be lost as a direct consequence. At this time of crisis, the mining companies require the flexibility to restructure for survival.
The actions of the DMR Minister, first with the unilateral development and release of the Reviewed Mining Charter on 15 June 2017 and now with the implementation of this moratorium, shows scant regard for the viability of the mining sector, sustaining employment and the national interest. The Minister should withdraw the notice and not apply any moratorium.
The Chamber’s urgent interdict application to prohibit the Minister from implementing the moratorium will be heard in the High Court on Friday 4 August 2017.
Statement issued by Mxolisi Mgojo, President, Chamber of Mines, 3 August 2017
