CETERUM CENSEO
TOO LITTLE TOO LATE
Let’s hope not!
South Africa has
put a six-month moratorium
on all new applications
for prospecting licences in
the country while a review
of irregularities in the
administrative process is
ongoing.* Mineral resources
minister, Susan Shabangu,
said that amendments
would be proposed to the
mining act to address the
irregularities, the proposal
will be discussed by cabinet
by the end of this year.
It has been some time
now that South Africa has
been sailing rather close
to the wind when it comes
The singling out of the DRC suggests its
governance is becoming a major concern for
world leaders
to less-than-transparent
dealings at the DME
regarding old-order rights
transfers or exploration and
mining licence applications.
Amazing things went on at
the DME offices around the
country, or rather didn’t
happen as these should
have. The big boys just
took a ‘grin-and-bear-it’
stance, losing on the swings
while hoping to gain on
the roundabout, while the
smaller players just fell over,
and many of those with
foreign investment plans
lost some money and then
went home swearing never
to return. Nobody affected
had the guts to speak out
and ‘ministerial discretion’
certainly did not help in any
way to reduce the problems.
Against this backdrop, the
‘irregularities’ grew ever
bigger and bolder. It had to
take a transgression against
48 Inside Mining 08|09/10
someone so big and with
little to lose as a result of the
foul that they were prepared
to finally speak out.
Meanwhile, in the heart...
World leaders offered up
some pointed words for
the Democratic Republic
of the Congo (DRC) at the
G8 summit, shortly after a
Canadian mining company
ran into a serious conflict
there. Last September,
Vancouver-based copper
miner First Quantum
Minerals had its Kolwezi
Tailings Copper Project
expropriated by the DRC
government. Recently, the
Financial Post reported
that the Kolwezi Project
passed on to a British Virgin
Islands-based company
in a highly irregular
transaction. First Quantum
has taken its case for
international arbitration.
In the official communiqué
for the G8 conference,
one entire declaration was
devoted to the DRC. It
calls for an end to resource
conflict in the eastern part
of the country, and asks
candidate countries to
the Extractive Industries
Transparency Initiative,
including the DRC, to
“enhance governance
and accountability in the
extractive sector”. The
singling out of the DRC
suggests its governance is
becoming a major concern
for world leaders, even as
they prepare to forgive
billions of dollars of the
country’s debt.
While the G8 statement
on the Congo was unusual,
it was also very measured.
There was no specific
criticism of the country’s
political leaders, nor was BY WILLEM SMUTS
there any suggestion that
debt forgiveness could be Dmitry Medvedev during
rescinded if it does not a recent official visit to
improve its governance. the Russian Federation,
The First Quantum issue is looking to narrow the trade
viewed as an urgent one for deficit with one of the most
officials at the World Bank populous nations in the
and the IMF, as the World world. The country’s hoping
Bank, is a joint-venture to build on historical ties
partner on Kolwezi with with the Russian Federation
First Quantum, and the IMF and the uranium deal is
is involved in the Congo’s a step in that direction.
debt-forgiveness measures.
The World Bank has halted
Under the deal, Russia will
control almost half of South
all investments in the DRC Africa’s uranium market –
through its finance arm, and did we learn nothing from
finds itself in international the Europeans?
arbitration for the first In my opinion one should
time ever. keep one’s water and one’s
energy in the confines of
Are you ready for that bear- one’s own castle…
hug umfowethu?
Russia will provide South Willem Smuts
African nuclear power
stations with uranium until * The minister said that all
2017. The contract was mining-rights applications
signed in the Kremlin by already launched would be
President Jacob Zuma and processed according to the
his Russian counterpart existing law.
INDEX TO ADVERTISERS
Amec Minproc 21 Khanondo Safaris 34
Antech Laboratories 25 Metso Minerals 44
Appropriate Process PPM 46
Technologies (APT) 6 Read, Swatman & Voigt (RSV) 39
Barloworld Equipment 22 Sandvick Mining 49
Bruker South Africa 42 Scott Drilling Services 38
Caracle Creek International SDEC Zimbabwe 28
Consulting 8 Sesani Pty Ltd/Intrachem 5
Delkor 24 SEW Eurodrive IBC
Delloitte 20 Sizisa Ukhanyo Trading 43
DRA 14 Specialised Exhibitions Insert
FFZ Logistics 9 Specialised Exhibitions 40
Flexible Management 30 Stanbic Bank IFC
Gecko Communications/NOSA 27 UTHO Capital 45
Geo Associates Private Limited 18 Voith 31 & 32
Group Five 17 Walter Becker SA 33
IIR (Mine Health & and Safety) 36 Weir Minerals 2
Joy Mining 10 ZB Financial Holdings 26