New South African Mineral and Petroleum Resources Development Act: Shaping a New Investment Environment to Reflect a Diverse Society

Abstract

South Africa's diverse society is the result of a long history of mining, colonialism and political division. It started in 1497 with Vasco da Gama's epic voyage to India round the southern tip of Africa. Da Gama's diary constantly mentions incidents of conflict between his men and the indigenous folk. Those were the days when African lives were deemed cheap and an ox could be traded for a mere bracelet—a ‘winner takes all’ approach. One would assume that such a background would set the stage for unending political instability. However, in 1994 South Africans proved to the world that peace is possible when political rivals start communicating. The miracle of the 1994 general election proved that the majority of South Africans have the political will to exchange a turbulent past for a tolerant future. The new South African Mineral and Petroleum Resources Development Act No 28 of 2002 should be viewed against this background. This Act is an attempt to break completely with the country's colonial past, where people were easily dispossessed of their land and mineral rights to favour colonials. This system is about to change to a system where existing holders of mineral and other legal rights will get a final opportunity to use these rights before losing them to a new order. The process is not yet complete and developments continue to unfold in this important sector of South Africa's economy.