Cape Town - The lack of a money bill dealing with royalties to accompany the Mineral and Petroleum Resources Bill was a major weakness, it emerged in public hearings in parliament last week.
Today it will be the turn of the major mining companies and the Chamber of Mines to express their concerns about the bill. Several flaws are expected to be highlighted.
Several new black-owned companies and entrepreneurs trying to get into the mining sector have come out in support of the bill.
However, tribal communities and black families who own mineral-rich land that they have leased to major mining companies told the committee on Friday that they faced financial ruin if the bill went ahead without the money bill going through at the same time.
Treasury officials last week admitted they would find it "a tough call" to prepare the money bill quickly, because they would have to do an extensive survey of who owned what mines and mineral rights.
They would also have to work out an equitable new system of royalties that did not upset the whole tax system.
On Friday representatives of groups such as the Bakgatla-Ba-Kgafela of Saulspoort, the Bakwena Ba Mogopa of Bethanie, the Fike Trust of Hoedspruit and the Royal Bafokeng tribe near Rustenberg told the two committees holding the hearings that the move to vest mineral rights in state hands would leave them, as the common-law owners of the mineral rights on their land, in dire straits because it would cut them off from a major source of income.
They charged that the bill, by taking away their common-law right, was unconstitutional and unclear about possible compensation and would undermine security of tenure in an industry that depended on long-term mining arrangements.
Mbuelelo Goniwe, the chairman of the portfolio committee on minerals and energy, said these concerns would be taken into account once the committees drew up their report.
Although most major corporations have welcomed the social upliftment aims of the bill they have also expressed concerns about its constitutionality its effect on investor confidence.
But Vincent Phaahla, the executive chairman of Sebata Kgomo Mining, said in a written submission last week that he was outraged by the outcry over the bill by largely white-owned mining companies.
"For years now, black people have battled to gain entry in this lucrative industry," he said.
"Bars to entry have been access to good ore bodies (because most of the productive mineral deposits are in white hands), access to finance and the willingness of those who have the experience and skills to share or partner with black people."
Cosatu, the trade union federation, is also not happy with everything in the bill but has been equally disturbed to see a massive mobilisation of mining capital in this country to protect their vested interests.
"This mobilisation illustrates the power and resources which they command and the need for transformation of the sector. It should not, however, be seen as representative of the majority in this country, who are hoping for the fundamental transformation of ownership patterns in mining," Cosatu said.
