Presentation To The National Council Of Provinces Amendments to the Mining Titles Registration Amendment Bill 04 JUNE 2003

CONTENTS LINKAGE BETWEEN THE MTRAB AND THE MPRDA WHAT ARE THE OBJECTIVES OF THE CURRENT ACT (MTRA) WHAT ARE THE OBJECTIVES OF THE AMENDMENT BILL (MTRAB) WHY THE AMENDMENT IMPORTANT CHANGES

THE LINKAGE BETWEEN THE ACT AND THE BILL MPRDA provides for a policy shift by -giving custodianship of mineral resources to the state -guaranteeing security of tenure to mining companies -giving access to information -orderly conversion during the transition

THE LINKAGE BETWEEN THE ACT AND THE BILL (2) MTRAB is a supporting leg of the MPRDA without which the above goals will not be successfully implemented by: -managing the conversion process during the transition -creating a deeds and information service at a central point in South Africa -formation of a central registration office for all mining and prospecting rights -central point for updating information and maintenance of title records

OBJECTIVES OF THE MTRA 16 OF 1967 Regulates the registration of mining titles, other rights connected with prospecting and mining, stand titles and certain other deeds and documents and provides for matters incidental thereto Note that no provision for new order rights but only old order rights Needs to be updated since some rights provided for are no longer in existence by law and some abrogated by disuse e.g. bezitrecht, mynpacht, etc.

OBJECTIVES OF THE MTRAB To amend the Mining Titles Registration Act, 16 of 1967 with regard to certain definitions and expressions, To regulate the registration of mineral and petroleum titles and other rights connected therewith and certain other deeds and documents, To effect certain amendments necessary to ensure consistency with the MPRDA To provide for matters related thereto

WHY THE AMENDMENT To align the MTRA to new policy and legislative requirements e.g centralise information To provide for the conversion of old order rights To make provision for registration of new order rights To set new procedures and processes in place To delete rights that are no longer in existence

IMPLICATIONS OF NOT AMENDING MTRA Access to information remain limited and meaningful participation is hindered and so is investment in the mining industry Security of tenure is compromised since provisions of Deeds Registration Act dealing with mining and prospecting are repealed and not provided for registration in the Mineral and Petroleum Titles Registration Office Old order rights cease to exist in terms of the provisions in the transitional period (MPRDA) while conversion is not provided for in MTRA. The legal consequences are the unconstitutional wiping away of rights

IMPORTANT CHANGES Objectives changed to suit new mandate in line with the MPRDA Definitions widened to accommodate same Clause 2 establishes the new office which deals with both the conversions and registration of new order rights duties and powers of the DG enhanced e.g clause 5(v) and 6(e) and (f)

CHANGES CONTINUED Clause 8 accommodates the new policy on access to information in line with the Promotion of Access to Information Act Clause 10 now allows the DG to make or alter regulations and abolishes the Mining Lease Board which has become redundant Same clause (1A) now brings this bill in line with the PFMA by providing for consultation with treasury on state revenue

CHANGES CONTINUED Makes provision for the new system by keeping existing registers and opening new registers with the two running concurrently The above provisions ensure that the centralisation of registration of rights, which is a new feature in our framework, is comprehensive and accurate

CHANGES CONTINUED Clause 67A provides for the conversion of old order rights including op 26 rights Clause after 67A refers to a schedule attached mentioning laws that are to be repealed and amended by this Bill in the Deeds Registration Act The above repealed and amended clauses mainly deals with the registration of mineral rights and related transactions e.g mineral leases and prospecting contracts. (THE END)