Platinum mining companies will be legally compelled to process their ore in South Africa, if they do not do so voluntarily, a leading government official has said.

The South African government is planning to amend rules for precious metals processing in a bid to foster a thriving local processing industry, with the initiative taking the form of voluntary agreement.

However, according to Sandile Nogxina, Director General of the Minerals and Energy Department, if firms do not amend their processing policy accordingly, the government could pass legislation to force them to do so.

He said: "If there is non-compliance, we will have to go and legislate beneficiation (processing).

"It will depend on whether the players do it. So do it voluntarily or we will force you to do it."

Nogxina said that the new rules were still being formulated but that that he could not confirm when they would become law.

He did, however, rule out financial incentives for complying firms but said that regulatory incentives could be included.

The rules are set to be trialled initially in the diamond mining sector before being rolled out to uranium and platinum miners.

Source:

S.Africa says may force miners to process locally, 07/11/07
http://africa.reuters.com/business/news/usnBAN740082.html

Beneficiate voluntarily or we'll force you to, Nogxina warns, 07/11/07
http://www.miningweekly.co.za/article.php?a_id=120741

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