South Africa's minister of mineral resources said Tuesday that she wants to calm growing nervousness from mining companies and investors following a series of recent spats with the government, and said the ministry will review current legislation in an effort to clarify discrepancies.

The ministry also reiterated that mine nationalization is not government policy but recognized there are groups within the ruling African National Congress party that promote it.

"There is no doubt that clouds have been gathering over our country's mining reputation and I want to reassure all our stakeholders that South Africa is indeed a mining jurisdiction worthy of future investment," said minister Susan Shabangu.

Earlier this month platinum miner Lonmin PLC (LMI.LN) settled a dispute with the government after it received a letter from the mining ministry that it had to stop selling minerals other than platinum.

Kumba Iron Ore Ltd. (KIO.JO) is still contesting a license issue where a 21.4% stake in the Sishen iron ore mine, of which it's a majority owner, was given to Imperial Crown Trading over itself following the expiry of the stake previously held by ArcelorMittal South Africa Ltd. (ACL.JO).

Shabangu said changes will be made to try and reverse "growing negative sentiment" towards the country's regulatory framework. Changes include a series of amendments to be submitted to parliament, a six-month halt to accepting new prospecting applications, and a new public license tracking system.

"Investors globally are getting more worried," said Evolution Securities analyst Charles Kernot.

-By Devon Maylie; Dow Jones Newswires; (4420) 7842 9483; devon.maylie@dowjones.com
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