Minister of mineral resources, Mosebenzi Zwane, has agreed not to implement the new Mining Charter, pending the judgement of an urgent interdict by the Chamber of Mines.
The chamber wants to prevent the charter from being enforced before its court application to have the latest version, published on 15 June 2017, reviewed and set aside is heard.
Mining minister, Mosebenzi Zwane
Key to the Mining Charter is an increase in black economic empowerment shareholding of all mines from a previous 26% to 30%. It also requires 50% of all board members and executive management must be black, while 70% of all mining goods and 80% of all services in the mining industry must be procured from BEE entities.
In addition, new mining rights are subject to a 1% revenue payment to BEE shareholders prior to any shareholder distribution.
The Mining Charter has been criticised for the lack of consultation between the government and other stakeholders, including labour and the mining industry.
Zwane has also agreed that, in the event of any breach of the agreement, the chamber can set the urgent interdict application down for hearing on 48 hours’ notice. Based on the written undertaking, the chamber has acceded to the department of mineral resources’ request for extra time to prepare its answering affidavit to the interdict application and for the hearing to take place on a later date.
“The chamber and the industry are commited to transformation, but it is imperative that meaningful and lasting transformation be undertaken in a way that it ensures the sustainability and growth of the industry,” said Roger Baxter, CEO: Chamber of Mines.
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