Remodel SA’s mining regulation on super-efficient SARS – Xstrata

Remodel SA’s mining regulation on super-efficient SARS – Xstrata 
9th March 2011 
Updated 6 hours ago
JOHANNESBURG ( – South Africa’s discredited mining regulation needs to be remodelled to mimic South Africa’s super-efficient State revenue collection body SARS, says Xstrata South Africa executive director Andile Sangqu.

SARS has built a world-class machine that enjoys the credibility and endorsement not only of Africa, but also of the world.

“The time has come to build a similar structure for mining regulation. SARS success is not something that South Africa has to import. We have a home grown solution,” he tells Mining Weekly Online in an interview.

Sangqu advocates the creation of a mining regulatory agency that relieves the Department of Mineral Resources (DMR) of its bureaucratic role and frees it to enhance mining’s position as a key contributor to economic growth and social development, with overall accountability remaining within the Mineral Resources Ministry.

As with SARS, Sangqu suggests that the proposed mining agency is not restricted to the salary scales of government.

“There must be boldness to create the requisite capacity by attracting top-class skills.”

He foresees the mining regulatory agency as “giving legs to the principles of Migdett”, the mining industry's tripartite growth, development and employment task team made up of government, business and labour.

Migdett is committed to ensuring that the South African mining industry reaches its full potential.

Sangqu comments to Mining Weekly Online that the proposed new agency needs to remove the bottlenecks that stand in the way of South Africa’s attractiveness as a mining investment destination.

Required, he says, are simplicity, clarity, efficiency and scope for continuous improvement.

“The time has come for us to create an agency of State that regulates mining efficiently and acts as a one-stop licensing shop,” he adds.