The Minister of Mineral Resources, Susan Shabangu, published a notice in the Government Gazette on 1 February 2011, announcing a moratorium on new applications for reconnaissance permits, technical co-operation permits, exploration rights and production rights for an indefinite period over the Karoo Basin. The moratorium will not affect the processing of applications lodged prior to 1 February 2011.

It is important to note that pending applications such as the Shell application over the Karoo Basin will not be affected by this moratorium. It is therefore unclear what the motivation behind the moratorium is. It is also unclear whether this moratorium will affect applications for renewal of rights.

In the interests of our clients, Bowman Gilfillan’s Oil and Gas team will be particularly vigilant as a full appreciation of the legal consequences unravels in particular we look forward to the  Ministers clarification.