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Commodity slump may boost mines transformation

Johannesburg - Low commodity prices have prompted some companies to propose taking their mining rights back to the Department of Mineral Resources, Mineral Resources Minister Mosebenzi Zwane said on Tuesday.

Speaking after a visit to Harmony Gold's [JSE:HAR] Doornkop Mine in the West Rand, Zwane said acquiring the assets back from industry was an opportunity for the department to fast-track transformation in mining. He said the department would go into the details of the proposals later.

He also would not identify the companies which have made the proposals, except to say they were in coal, platinum and chrome.

In terms of the Minerals and Petroleum Resources Act (MPRDA), the state is the custodian of all mineral rights.

Transformation remains a contentious issue in mining with the industry's compliance with the Mining Charter under scrutiny. This has put the mining sector at loggerheads with government.

Conciliatory stance in 'once empowered' principle

Meanwhile, Zwane has taken a conciliatory stance in the standoff between the department and the mining industry over the contentious "once empowered always empowered" principle.

The government, business and labour earlier this year agreed to approach the courts to rule on the principle. But Zwane was optimistic on Tuesday that the matter could be settled amicably.

The Mining Charter requires mining companies to achieve a 26% black ownership target. The government has argued that this should be maintained at all times, implying that companies should enter into new empowerment deals if previous empowerment partners dispose of their interest.

Industry's view is that previous deals should be included in the calculation of ownership.

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