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Johannesburg - South African President Jacob Zuma referred changes to the country’s mining and energy legislation back to Parliament, saying the proposed amendments wouldn’t adhere to the country’s constitution.
The Mineral and Petroleum Resources Development Amendment Bill was passed by lawmakers last year and referred to Zuma for assent and signing into law.
Proposed changes included giving the state the right to a free 20% stake in all new energy ventures and to buy an unspecified additional share at an “agreed price”.
Exxon Mobil and Total SA are among those that have objected to it on the grounds that it’s too vague and will undermine their businesses.
“After careful consideration of the bill and the submissions received, the president is of the view that the bill as it stands would not pass constitutional muster,” his office said in a statement today.
South Africa’s constitution compels the president to assent and sign bills that are referred to him by the National Assembly unless he has reservations about their constitutionality, the presidency said.
“Until we have seen the comment and seen the input it is very difficult to comment,” Roger Baxter, chief operating officer of the Chamber of Mines, the main industry body, said by mobile phone. “It could be a very specific item” that the president is concerned about.
Mac Maharaj, the presidency’s spokesperson, and Department of Mineral Resources spokesperson Phuti Mabelebele didn’t answer calls seeking comment. Mosa Mabuza, the department’s deputy director-general for mineral policy and promotion, did answer his mobile phone.
“We don’t know what the reasons are, but it’s a good thing to redebate the changes,” Andrew Mitchell, a director at Fasken Martineau LLP in Johannesburg, said by phone.
The bill in its current form would have put undue delays on changes in the shareholding of mines by unlisted entities, among other issues, he said.
