Minister cannot withdraw mines' licenses over BEE
The state cannot just arbitrarily withdraw mining licenses if mines do not meet the targets set for transformation in the mining charter, Adv. Anton Alberts, the FF Plus' parliamentary spokesperson on minerals says.
He said the threat of Ngoako Ramathlodi, the minister of mineral resources, that he would withdraw licences, is not the manner in which a responsible minister should be acting in this regard.
According to media report, Ramathlodi said the mining charter sets certain transformation targets and the licences is a weapon in his hand which he would use if necessary. The mining charter, which sets certain transformation targets, is currently being reviewed.
Adv. Alberts says South Africa is a constitutional democracy and no power, such as the cancelling of licenses, can be exercised without it being allowed by legislation.
"There are no legal principles to arbitrarily withdraw the licences, because companies can choose whether they wish to adhere to the BEE Act. It is not compulsory to adhere to this legislation.