JOHANNESBURG (AP) — South Africa's mining minister says prospecting licenses had been issued to bogus companies because of incompetence.
In a speech Tuesday to a mine owners group Susan Shabangu announced the results of a preliminary audit into the troubled licensing process in South Africa, a major mineral producer.
In August, Shabangu shut down licensing for six months to allow a full audit after persistent charges of corruption.
Some companies have fraudulently claimed to be owned by blacks to qualify for licenses under rules established to give opportunities to South Africans discriminated against under apartheid.
South Africa is one of the world's coal, platinum and gold-producing giants. Mineral sales account for a third of the country's export earnings.
Copyright 2010 The Associated Press.
