Pretoria - The Department of Mineral Resources (DMR) has come out to emphatically reject allegations of bias in the Sishen and Imperial Crown Trading (ICT) mining rights issue.
Sishen Iron Ore Company had called unlawful a decision by the department to accept a mining right application from ICT.
"As a government department, we are not oblivious to the reality that we have a duty to apply the law as it is. Similarly, our Constitution provides every person with the right to administrative action that is lawful, reasonable and procedurally fair," said department's Director General Sandile Nogxina.
The department said it evaluated the new mining rights application of Sishen Iron Ore Company (SIOC), and found it to be defective in a number of areas, and therefore refused the application.
The DMR says it accepted ICT's mining rights application for mining rights because they fulfilled the criteria. The department will now process the application in terms of the Mineral and Petroleum Resources Development Act (MPRDA), and will evaluate and make a final determination on the application once this process has been finalised.
As with the previous three decisions, the department will be guided by the relevant provisions of the law in arriving at the final decision as to whether to grant or refuse the said mining right application by ICT.
"We are obliged to apply the law consistently. We cannot discriminate against or act in favour of any applicant, based either on size or experience in the industry.
"The discretion, therefore, cannot be exercised arbitrarily, capriciously and discrimatorily, it must, however, be premised on the provisions and requirements laid down in the law," said Nogxina.
According to the department, SIOC lodged its application for the conversion of its old order right. This is in respect of the 71.8 percent of the rights it originally had and for which it was entitled to apply. This met all the relevant criteria as contained in the MPRDA, and the department was obliged to convert the said old order right into the new order mining right.
In the same vein, the department evaluated the prospecting right application of ICT strictly within the confines of the MPRDA. ICT's application was found to be compliant. The department was then obliged to grant a prospecting right to the successful applicant, in this case the ICT.
The department said it will continue to apply laws and guarantee administrative action which is fair and lawful.
