South Africa has defended a new minerals bill, claiming it would protect investors and not deter investment, after criticism from the mining industry.

The Mineral and Petroleum Resources Development Bill transfers ownership of all mineral rights from the private sector to the state, in line with international standards.

The Bill will help attract more investment to South Africa because it will create more opportunities on a more level playing field

Phumzile Mlambo-Ngcuka Minerals and Energy Minister

But mining companies and the Chamber of Mines have lodged over 80 objections to the bill, protesting the new law would undermine property rights and investment.

Minerals minister Phumzile Mlambo-Ngcuka told the BBC's World Business Report the bill was generous to companies.

"They raised the issue of mineral tenure because the bill was obviously moving from the right of having them for perpetuity, which doesn't exist anywhere in the world," Ms Mlambo-Ngcuka said.

"The international average for mineral rights is 25 years, and we've agreed to give them 30 years and another 30 years when they renew," she added.

The bill is expected to be passed by parliament on Tuesday and signed into law by the end of the week.

Bill of rights

Mining has underpinned the South African economy for more than 100 years.

Until the end of apartheid in 1994, mineral rights were restricted to the white minority, and white-owned companies still dominate the industry.

Black business groups and unions, including the Black Business Council (BBC), Congress of South African Trade Unions, National Union of Mineworkers and the South African Mining Development Association, have all welcomed the bill.

"We are united in the belief that this bill is an historic breakthrough which will end the legacy of apartheid which created the mining sector in this country on the basis of racist exploitation," they said in a joint declaration.

Opposition threats

Opponents of the bill also irked the government after threatening to raise their objections at the G8 summit in Canada this week, arguing it breaks the spirit of the New Partnership for Africa's Development (Nepad) by undermining investment.

The minister on Saturday dismissed accusations that 30bn rand ($2.9bn) worth of investments would be at risk if the bill became law were "simply untrue".

"The Bill will help attract more investment to South Africa because it will create more opportunities on a more level playing field," she said.