JOHANNESBURG (miningweekly.com) – More than 1 000 registrations were recorded in the first three hours of South Africa’s impressive new mineral cadastre going live on Monday.

The new Mineral Regulation Administration (Samrad) online system enables prospective minerals investors to apply for exploration rights and mining permits electronically and be granted them transparently.

Samrad has no less than 276 layers of information on South Africa’s 52 commodities, which the global Citibank values at R18-trillion ($2,3-trillion), the world’s single-largest minerals treasure trove.

Besides rendering the decried duplication of rights an impossibility, the new system graphically illustrates South Africa’s built-up areas, water bodies, parks, reserves and the location of open land, and it does so ahead of the flawed Mineral and Petroleum Resources Development Act (MPRDA) being amended.

“This data’s now there for all to see and to use. South Africa's open for business,” reiterates Mineral Resources Minister Susan Shabangu.

Department of Mineral Resources (DMR) director-general Sandile Nogxina adds to Mining Weekly Online: “We’ll be seeing the fruits of this system ahead of the MPRDA’s amendment.”

The DMR first designed the system to respond to South Africa’s particular problems, and then went to Quebec, Western Australia and Queensland in search of global best practice, adds Nogxina, who expects the MPRDA to be amended before the end of 2011, or in the first quarter of 2012.

DMR acting deputy director-general of mineral regulation Joel Raphela tells Mining Weekly Online that the new system fosters an increased tempo of exploration in South Africa, by enabling investors to tap into the prospecting market from their desks.

Raphela says that an analysis shows that South Africa has failed to experience the exploration growth that it anticipated when 26 000 rights being issued during the rush period after the MPRDA’s initial implementation.

Many of those rights have now either expired or have been abandoned or flouted, and will be reoffered in special upcoming Government Gazette notices, the Minister reports.

Raphela says that the new electronic system is poised to put an end to the long delays that have characterised DMR’s administration up to now.

“At the heart of the delays was the old system. With the new system, challenges are highlighted instantly, and we, as management, will be able to intervene quickly and in a sustainable manner.

“We’re confident that this system will ensure that there is growth for mining, which is one of the key economic drivers of our New Growth Path,” adds Raphela.

DMR mineral regulation systems head Siyabonga Vezi tells Mining Weekly Online that the the 276 layers of information that can be activated also contain information from South Africa’s other departments, which will see to land and environmental information being continuously updated.

Vezi points out that the duplication in the granting of rights under South Africa’s former single-layer system will be impossible under Samrad.

“If there’s an existing right, it'll be immediately apparent,” Vezi assures.

The DMR has established a 012 444 3119 helpline, which instructs users to register prior to making use of the system.

“We invite many more investors to log on and to find out about the mineral wealth of this country,” says Vezi.

DMR mineral regulation systems director Andre Cronje tells Mining Weekly Online that Samrad shows exactly where mineral rights are and where there is open land.

All users have to do is to access the DMR website at www.dmr.gov.za and to click on the icon for step-by-step assistance.

MPUMALANGA STILL OUT OF BOUNDS

The Minister has reiterated that the moratorium on the issuing of new prospecting rights is being lifted everywhere in South Africa, except in the Mpumalanga province, where it will remain in place until the end of September.

Mpumalanga is also poised to be the scene of the public revoking by the DMR of many abused prospecting right awards.

During the moratorium, all the rights that were granted but not executed have been reviewed and the Minister decries the extent of the hoarding of rights and actions that are encouraging speculation.

The statistics point to instances of right holders displaying a lack of seriousness, with many failing to submit outstanding information.

As a corrective measure, the Minister has put the errant entities on terms and is taking steps to reverse these rights in terms of Section 103 of the MPRDA.

The department is conducting a critical review of its past practices and is approaching its job very differently, including the possible introduction of a competitive process for new prospecting rights applications.

“We will improve on the lessons learnt in awarding rights for the current system. We need to improve the quality of applications, ensure proper alignment of applications with the objectives of the Act as well as realize the broader objectives of government,” Shabangu says.

Internal policies are being put in place to ensure there is proper management of applications, particularly in the case of strategic minerals such as coal, rare earths, manganese and iron-ore, “in order to best serve the interests of South Africans and their future generations”.

“We have committed ourselves to learn from best practice while making sure that these policies advance the country's interests,” says Shabangu.

“The first-come first-served principle is all well and good when it comes to allocation of new rights, but the interests of optimal utilisation that serves the interests of both the state and applicants are not always achieved.

"The bidding system that is provided for in the Act will be put in place which will be applicable to all rights that are granted, issued, expired, revoked or abandoned,” Shabangu says.

On errant rights to be reoffered, the Minister adds: “We’ll publish the rights in the Government Gazette and we’ll be going through a first-come first-served process.”
 

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