LEGAL BATTLE
Ownership levels of miners put to the test
Department of Mineral Resources steadfast: mining companies must maintain their black ownership levels
The Department of Mineral Resources remains steadfast in its belief that mining companies have to maintain their black ownership levels, even if it means being tied into long-life projects, and the onus is on mining right holders to ensure they retain empowerment levels. In the first of two court battles between the department and the Chamber of Mines, the parties argued the merits of their cases in seeking a declaratory order around whether mining companies could count on historical empowerment deals that were no longer in place or whether the department’s view of the first two Mining Charters held sway that companies had to perpetually top up their black ownership structures to at least 26% ownership. The day was dominated by the chamber’s senior counsel, Chris Loxton, who argued that there were no provisions in the act for perpetual top-ups of empowerment deals to maintain the 26% ownership level and that the second charter sought to apply conditions retrospectively on agreements...
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