From : Lorraine Mashigo, Treasury
To : Mthozami R. Xiphu, Dept of Minerals & Energy
Sent: 20 May 2003

I refer to our telephone conversation earlier this morning regarding the Mineral and Petroleum Resources Development Act and the Mining Titles Registration on Bill.

The following are the points of concern that I would like to raise regarding the above mentioned documents.

1. When reading the schedule in the Deeds Registries Act 47/1937 ( section 52 on pace 21), which lists some sections in that Act which to some extent have been repealed ~ by 510 u the Mineral and Petroleum Resources Development Act, there is a point of confusion and uncertainty in terms 0 the amendment or repealing of sections 3(n) and 90(1)(a). The confusion and uncertainty arise from the fact that the schedule in the Deeds Registries Act states that these two sections have been amended, yet section 110 of the Mineral and Petroleum Resources Development Act states (in square brackets) that these sections have been repealed. I am unsure as to whether these sections have been amended or repealed, and seek some clarity in this regard.

2. Currently, the right to prospect or mine vests in the holder. to the mineral concerned under a system of private ownership. The Mineral and Resources Development Act, eliminates the concept of private ownership minerals and vests the right to prospect or mine exclusively in the State. Under the new Development Act, applicants will apply to the state directly for the right to prospect or mine, regardless of the identity of the previous holder of the relevant mineral right.

The Mining Titles Amendment Bill re-regulates the registration of mineral and petroleum titles and other rights, and certain other deeds and documents.

I would like to know what the process is that is involved in the changing mineral and petroleum titles in terms of the new Bill. Further, I would also like to know what the nature of the title is. For instance, how it will operate, Its duration, whether it is transferable or mortgageable etceteras.

3. When a/the title is changed, how is this change viewed? Is this regarded as an expropriation or not, if it is regarded as an expropriation, when does the expropriation take place - Is it at the enactment of the Mineral and Resources Development Act or at such time as the right to prospect or mine is converted or terminated under the Mineral and Resources Development Act.

I need some clarity on the circumstances (if any) in which an expropriation will arise.

4…If possible, could I please be provided with copies of submissions or comments that your Department received in response to both the Mineral and Resources Development Act and the Mining and Titles Registration Amendment Bill.

Kind Regards
Lorraine Mashigo
National Treasury
Tax Policy and Legislative Oversight