Minister confirms mining lawsuits
Minerals and Energy Minister Buyelwa Sonjica has confirmed, in response to a parliamentary question, that European mining companies are claiming more than R2bn in compensation from the SA Government for damages suffered as a result of the coming into effect of the Mineral and Petroleum Resource Development Act (MPRDA).
A report on the IoL site quotes the Minister as saying claims included ‘compensation for expropriation’ made in terms of the legislation, which came into force on May 1, 2004. Sonjica said proceedings had been lodged by a firm of local attorneys acting on behalf of the Italian mining companies Marlin and RED, as well as Finston, a Belgian-Luxembourg group. The action was being brought in terms of the Italian Bilateral Investment Treaty and the Belgo-Luxembourg Treaty. Sonjica said the government was in the process of appointing an arbitrator to deal with the matter. It is understood the case will be heard at the International Centre for Settlement of Investment Disputes, housed at the World Bank in Washington. Among other things, the MPRDA requires that former owners of mineral rights apply for mining licences subject to meeting black economic empowerment criteria, including the sale of shares to BEE partners. Full report on the IoL site