Chamber to challenge 'unlawful' moratorium on licences

Mining lawyers are set for another bonanza following the reply of the Chamber of Mines to the proposed moratorium on mining licences as issued by Mining Minister Mosebenzi Zwane on Wednesday, notes a Moneyweb report. ‘The Chamber of Mines has taken legal advice following the notice by the Minister of Mineral Resources published in the Government Gazette yesterday (19 July), which indicates that the notice constitutes an unlawful action for a number of reasons, including: 1) the damaging impact of the proposed action on the mining sector; and 2) that the Minister is acting ‘ultra vires’ or beyond his powers under the Mineral and Petroleum Resources Development Act.’ A report in the Policy Watch section (below) notes the proposed moratorium was ‘necessitated’ by the Chamber of Mines’ ‘urgent interdict’ application aimed at preventing the implementation of the controversial revised Mining Charter. Confirming this yesterday, a Department of Mineral Resources media statement noted that Zwane’s decision ‘not to apply’ the provisions of the new charter until the chamber’s interdict application has ‘been heard and judgment given’ was made to ensure that the matter is ‘handled in a responsible and reasonable manner’. However, as noted in the Moneyweb report, the chamber says it is writing to the Minister to request his immediate withdrawal of the notice, failing which the chamber will apply for an urgent interdict to suspend and review the notice. It says that the ‘effect of the notice is to pave the way for the Minister to issue a further notice to prevent the issuing of new mining and exploration rights which will have an immediate negative impact on investment in the sector’.

Full Moneyweb report