Mineral Resources Portfolio Committee rejects Zuma’s advice on Bill

25 August 2016

The ANC majority on the Parliamentary Portfolio Committee on Mineral Resources has rejected changes to the controversial Mineral and Petroleum Resources Development (MPRDA) Bill that were suggested by President Jacob Zuma.

At a committee meeting ANC MPs rejected two substantive reasons that Zuma gave for sending the Bill back to Parliament because it would not pass constitutional muster. ANC members agreed with the Parliamentary and State law advisors who said there was no constitutional problem and effectively, that Zuma had been wrong to suggest substantive grounds for sending the Bill back to Parliament.

The DA had written to Zuma suggesting the Bill was unconstitutional. Some of those reasons were cited by Zuma when he sent the Bill back to Parliament nearly 18 months ago. Since then the Bill has been in limbo with apparent confusion or disagreement in the ANC about processes that should be followed to have the Bill corrected.

The ANC’s behaviour seems to suggest either division in the party, or that Zuma has disregarded his own legal advisors and instructed his MPs to ignore his advice.

At issue was a suggestion by Zuma that it would be unconstitutional to elevate the Mining Charter to the status of legislation without subjecting the Charter to the same requirement of parliamentary agreement before changes were made. As it stands, the Minister will be allowed to change the Charter without consultation with the legislature.

Zuma’s second point was the contention that, if passed, the MPRDA amendment would put South Africa in violation of its international trade obligations and thus be unconstitutional.

Both these points were rejected by ANC members on the committee.

At the same meeting the ANC also rejected a change to the Bill which was suggested by the National House of Traditional Leaders. The NHTL wanted mining licences to be issued by an independent body rather than by the Minister. ANC members on the committee voted to leave that power with the Minister. The DA supported the NHTL proposal for an independent licencing body, but were outvoted.

The reservations suggested by Zuma were sensible and ignoring them means the Bill will almost inevitably be challenged in the Constitutional Court. This will cast another shadow over the certainty in mining legislation that is so important to investment.

It is just the latest sorry chapter in the ANC’s mishandling of mining law which has contributed to the withdrawal of major companies, a reduction in investment and the loss of thousands of mining jobs.

Issued by James Lorimer, DA Shadow Minister of Mineral Resources, 25 August 2016