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Johannesburg - SA's black economic empowerment (BEE) laws
have failed black investors in the mining industry, according to Ayanda Bam,
executive chairperson of Kuyasa Mining.
Speaking at a Coaltrans conference on Wednesday, Bam said
BEE regulation had effectively reduced black investors to partners and had
prevented those really wanting to run their own mines from making any real
progress. They perpetuated the assumption that mining would make you rich.
"A lot of licences issued to black companies have been
onsold for huge amounts of money and it's a pity the state allowed that,"
said Bam.
He said that instead of opening up the market for black
economic participation in the sector, it had effectively opened up a market for
selling licences.
"The danger in this is that a few years from now we
will say this industry has not been transformed," said Bam.
Bam, who was one of the first players in the industry when
it was opened up to black investors, said this was not contributing to the
ultimate objective of the regulation.
"I don't see any reason for the government to issue a
licence, which costs about R500, and the next week approve the sale of that
licence for a million bucks. This is not right," Bam said emphatically,
adding that it needed serious attention.
Bridgette Radebe, executive chairperson of Mmakau Mining, said that the government's moratorium on the awarding of prospecting licences last year "was not enough".
She said the government should take into account whether
there was enough rail capacity and power before issuing licences.
"Within 16 years we should have seen tangible
results," Radebe said about transformation. She added that those black
producers that were at their mines every day were very anxious about the way
forward.
Bam said BEE investors were the "main culprits".
"We have nothing to show for our (participation) except
huge bank balances," he said.
Bam said the challenge of funding remained a barrier to entry, as did technical support. "If we don't address these barriers to entry, we are going to assume we have a thriving mining industry, and in five or 10 years when we do the assessment we are going to find we have absolutely nothing," said Bam.
