Cape Town - Mbulelo Goniwe and Mohseen Moosa, the chairmen of the two committees steering the controversial Mineral and Petroleum Resources Bill through parliament, yesterday pledged that the final product would be a "sensitive" balance between the diametrically opposed views of business and labour on the proposed new law.
Addressing an impromptu media briefing as the committees prepared to hunker down "all day and night if necessary" until June 20 to finalise the bill, they said the committee also had to take into account the country's need for new investment, job creation and skills development, environmental management, and social upliftment without putting billions of rands worth of new investments in jeopardy.
"If you want a one-word answer to how we are going to address this process, that one word is 'sensibly'," Moosa said.
"We know how much is at stake. We know what large vested interests exist from the point of view of the economy, and we also know what important imperatives exist for economic empowerment.
"And as a government charting a pioneering transformation, this bill will have to achieve those objectives ... and unlock the wealth and resources of the country, but it will have to do that given the considerations of big business.
"We have to find a sensible medium, which is workable from both ends.
"What parliament wants to see is a modernisation of this industry so that it can be a cutting-edge industry at the forefront of resources internationally.
"It must be transformed in such a way that it can capture international markets, and it must be a driving force for alleviating the poverty of our people.
"We are changing the rules of the game but there are profits to be made by the big companies side by side, and not in conflict with, the achievement of national strategic objectives."
Goniwe said all the submissions received had supported "the fundamental principles of the bill" aimed at opening up the mining industry to black entrants in a meaningful way.
On the issue of security of tenure, the main problems raised by business were centred on the transitional arrangements in the move from old- to new-order rights. The "committee will address those concerns" and no planned new investments would, as had been claimed by some mining companies, be placed in jeopardy or their returns affected.
"But we are certainly not going to allow for a regime that says that they can realise those returns forever. Nobody is going to lose any money ... not even one cent, but we want to open up the process to ensure better competition."
Goniwe said there appeared to have been different interpretations about whether or not vesting mineral rights in the hands of the government was constitutional and did not amount to expropriation.
Various legal interpretations had indicated that it was neither, while most submissions had seemed "to be comfortable with" the 30-year mining rights to replace the old-order rights.
"It seems to be just a case of emphasis, but many submissions contained good ideas that we will consider ... and there do seem to be areas around security of tenure that can be tightened up," he said.
Moosa said it had been recognised that internationally mineral rights were granted for between 20 and 30 years "and in that sense we are modernising, but security of tenure also relates to what happens once those periods end ... this already creates a fairly clear environment in terms of which rights would be renewed.
"There is no doubt about that, but what does seem to be in doubt - and I guess it is based on mistrust more than doubt - is to what extent the minister will or will not grant these.
"For us, it is simple. The ministry must exercise reasonableness in the way that it does so."