JOHANNESBURG (miningweekly.com) – As sectors of South Africa’s mining industry “circle the drain”, the Democratic Alliance (DA) has called on government to take certain actions to resolve issues weighing on mining in South Africa and save the industry.

DA Mineral Resources Shadow Minister James Lorimer on Monday said that, amid extensive job cuts in the industry and major commodities prices being at multiyear lows, government needed to assure mining companies that they would be allowed to operate without “overly intrusive” regulation.

“It is no longer good enough for government to simply blame the difficulties in mining on prevailing conditions in the world economy,” he said.

He suggested that government review its current black economic-empowerment (BEE) framework to cement the principle of once empowered, always empowered, while freezing the BEE ownership level at 26% in the future.

Further, Lorimer said government should withdraw and rewrite the Mineral and Petroleum Resources Development Act within a framework of legislative certainty, while reflecting the need for the mines to be financially sustainable.

This emerged as platinum producer Lonmin and diversified miner Anglo American announced plans to reduce their headcount to ride out the current challenging environment.

“If government refuses to act, it will have to take responsibility for those sectors disappearing – [an event that] will worsen the economic conditions for millions of South Africans,” he said.

The suggested moves would be “confidence-building measures” showing that government recognised the critical role the mining industry played in employment and foreign exchange earning, he noted.