A historical perspective on the economics of the ownership of mineral rights ownership

Inauguration of the new political dispensation in South Africa, initiated a dynamic period in the historical development of its minerals policy. The p rocess of substituting the current South African mineral policy framework w ith an acceptable 'post apartheid' system, started soon after the 1994 elec tion of the African National Congress (ANC) government. The Green Paper on a Minerals and Mining Policy for South Africa released for public discussio n in February 1998, calls for radical transformation in mineral rights owne rship. A shift towards exclusive state ownership of mineral rights, away fr om the present: dual system of private and state ownership, is the most sig nificant proposal. The current holders of mineral rights, or their nominees , who lawfully enjoyed security of tenure under past and present mineral la ws are opposed to this transformation because mineral rights were often acq uired at considerable cost. The situation is compounded by poor public reco rd-keeping and passive mineral rights administration over a very long perio d. This paper represents a summary of the historical developments leading t o the current: legislative environment and forms the basis for any discussi on on which future sculpturing of south Africa's policy regarding mineral r ights can take place, One cannot plan for the future without considering th e past!