THE MINING TITLES REGISTRATION AMENDMENT BILL BILL 24 OF 2003

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• THE MINING TITLES REGISTRATION AMENDMENT BILL
  BILL 24 OF 2003
• Hulme Scholes
• Werksmans Inc.

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INTRODUCTION

• Legislative context
• Importance of the Bill
• Two major concerns

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Section 110 of the Mineral and Petroleum
  Resources Development Act 28 of 2002 repeal of
  laws
• Schedule II to the Mineral Development Act
  Transitional Provisions
• Confusion in use of wording in Section 110 of
  Mineral Development Act

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Items 4 to 8 in Schedule II subject to the
  terms and conditions under which they were
  granted
• Purported perpetuation of ability to transfer and
  encumber, conflicts with repeal of laws pursuant
  to Section 110 of Mineral Development Act
• Concern with wide interpretation qualification
  as holder
• Bill has not clarified the issue of ability to
  transfer old order rights

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Section 12 of the Bill keeping of registers
• Section 12 seems to suggest that registrations
  can continue after date of commencement of
  Mineral Development Act
• Insertion of Section 67.B in Bill conflicts
  with Section 110 of Mineral Development Act
• Suggested amendment to Bill perpetuate
  transferability and ability to encumber old
  order rights

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Consequences of inability to transfer and
  encumber during transitional period
• Impact on mining related commercial transactions
• Transfer of mineral rights and mining rights for
  transactions concluded prior to commencement of
  Mineral Development Act, should be allowed to
  continue
• Impact on financing

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Black Economic Empowerment Transactions
• Objective in Section 2(d) of Mineral Development
  Act impacted upon
• BEE transactions during transitional period
• Claims for expropriation
• Objective in Section 2(e) of Mineral Development
  Act impacted upon
• Item 12 in Schedule II to Mineral Development Act
  claims for expropriation
• Irrespective of outcome, consequence will be
  retardation of prospecting and mining during
  litigation

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CONCERNS TRANSFERABILITY OF OLD ORDER RIGHTS

• Continued ability to transact after commencement
  date of Mineral Development Act, will limit
  claims for compensation due to expropriation

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CONCERN WITH RESPECT TO THE BILL PARTNERSHIPS
AND JOINT VENTURES

• Proposed repeal of Section 22 and provisio to
  Section 39(5) of Mining Titles Registration Act
• Legal nature of partnership
• Joint mining authorisations

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CLOSING

• Suggested amendments will NOT effect import and
  objectives of Mineral Development Act but will
  facilitate that import and those objectives
• Crucial to allow continued ability to transfer
  and encumber old order rights for periods
  provided for in Transitional Provisions in
  Schedule II to the Mineral Development Act