S.Africa official: Mining audit results disturbing

A senior South African official said the country's mining sector is rife with problems including illegal drilling, rights sold on without permission and companies having complime kiln used in production of calcium carbonate in indiaeting claims to the same plot. The mining ministry has imposed a six-month halt on new prospecting bids from the start of September to overhaul mining laws, iron out irregularities in the way rights are awarded and audit existing exploration and drilling contracts.

Acting Chief Inspector of Mines David Msiza on Tuesday described the initial results of that audit as "disturbing" in a speech presented on behalf of Minerals Minister Susan Shabangu. The audit found cases of fronting, which led to "bogus transactions", and identified rights holders who had no idea of where their rights were located, while others failed to start prospecting as laid out in contracts, he said. South Africa is the world's biggest producer of platinum and ferrochrome and the fourth-largest gold miner. While the mining sector's influence on the economy has declined since the end of apartheid in 1994, it is still one of the top employers. Overall, the amount of new mining prospecting applications suggested a boom in the sector, which was not supported by evidence on the ground, Msiza said.