Allegations of ‘state capture’ a serious concern for mining industry

17 March 2016 - 16:27 By TMG Digital

The Chamber of Mines says allegations of the Gupta family’s involvement in the selection of cabinet ministers are of serious concern to the South African mining industry which it says is in crisis.“The Chamber notes that allegations of links of the Minister of the Department of Mineral Resources to the Gupta family‚ and allegations that some of his special advisors are linked to the boards of the Gupta family companies‚ is making the mining sector ask questions about this matter‚” the chamber said in a statement.It added: “Most concerning to the Chamber are reports that mining companies are being placed under undue pressure via inappropriate section 93 notices for alleged failure to meet the ownership requirements of the Charter when the subject matter is presently before the court for a ruling‚ or section 54 mine safety stoppage notices‚ given the damage these can do to the industry and investor confidence.”The chamber said it believed the country and the mining industry should be concerned about these issues. “The South African mining sector is in crisis. The industry requires policy stability and certainty and fair and transparent implementation of the laws from a licensing perspective. Allegation of corruption and undue political influence in licensing decisions are not in the interests of the industry or the country.“Given that the mining sector still remains a key window on the South African economy through which the global investor community views the country and its investment rating status‚ these are concerning allegations‚” the chamber added.It said it would continue to engage all relevant parties‚ including the Minister of Mineral Resources‚ so that matters negatively affecting the mining sector and the negative perceptions affecting investment in the country could be addressed...

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