24 November 2000

Dundee University centre helps South Africa reform mining laws

The South African Minister of Minerals and Energy has asked the University of Dundee for assistance in reforming the country's mining laws. The present laws were introduced a decade ago under the apartheid regime. Recent proposals have met with opposition from the established mining industry, comprising some of the largest mining companies in the world. The Government needs an independent opinion on a number of key issues and this will be provided by the Centre for Energy, Petroleum and Mineral Law and Policy (CEPMLP) at the University. The Centre will work closely with the Minister's staff.

Last week Professor Peter Cameron met the Minister in Johannesburg and heard about her plans to change the laws. He said: "She was particularly interested in hearing more about those mining law reforms adopted by other developing countries that have led to an increase in investment."

The Centre has extensive experience of legislation and contracting practices in many countries, especially in Latin America.

Professor Cameron: "To strike a balance between making reforms and maintaining a high level of investment in a key industry is a serious challenge. Many of the established companies acquired their rights at a time when most of the country's population was effectively excluded from applying for those rights. The Government wants to rectify this. However, it has to tread warily in order to avoid frightening off companies already established and also those companies that might be willing to take a share in the South African mining sector. The industry has great importance for the country's economy since more than six million citizens are dependent upon it for their employment, according to Government estimates."

Professor Cameron is the author of a classic study of the sweeping changes made to the North Sea oil licences by the Labour Government in the 1970s. However, as he notes: "The allocation of risk as perceived by international investors is of quite a different order of magnitude in South Africa than in the UK, even in the unstable climate of the UK in the 1970s."

The Centre will produce a report on the key issues that are highlighted by the Minister and her staff. Early next year, when the draft law is published the Centre will organise a seminar for South African officials in Dundee. The Centre has long-standing connections with South Africa and will do the work initially on a pro bono basis. /ends

Contact: Professor Peter Cameron at CEPMLP, University of Dundee
Tel 01382 344300; Email: p.d.cameron@dundee.ac.uk