Mining Charter calls for 30% black ownership
Swift legal action is expected against the contentious charter released by Mosebenzi Zwane
There was no backing away from the newly gazetted third iteration of the Mining Charter, which increased black ownership levels to 30% for mining rights, and 50% plus one for prospecting rights, taking into account the wishes of a broad range of stakeholders, Mineral Resources Minister Mosebenzi Zwane said on Thursday. A new aspect introduced in the charter is the demand for companies to pay 1% of their annual turnover to the 30% black economic empowerment (BEE) structure before any distribution to all shareholders — a clause that is sure to cause considerable consternation among mining companies. Releasing the charter, which maps out the obligations for the transformation of the mining sector to address historical racial imbalances, Zwane said the latest iteration of the charter was an “instrument for radical change”. One of the most contentious issues is that there is no recognition of past empowerment deals in which the black participants had cashed out, meaning all mining compan...
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