Minerals Council raises concerns with Mining Charter
Mxolisi Mgojo says the council supports the intentions and content of the charter, but it is worried about some aspects of it
The Minerals Council SA will talk to mineral resources minister Gwede Mantashe and his team about a few issues that it is unhappy with in the recently gazetted Mining Charter 2018.
While the council declared its support of the intentions and content of the charter that Mantashe gazetted last week, there were a number of issues that concerned it, council president Mxolisi Mgojo said.
Mantashe has said there will be a two-month window to develop implementation guidelines for the charter, which the industry hopes will bring further clarity to the obligations placed on mining companies to secure their mining and exploration licences.
“The Minerals Council will seek to engage the minister on the unresolved issues to find workable solutions,” Mgojo said in a statement.
“This new charter is the product of substantial engagement between key stakeholders and is a compromise that reflects different difficult choices that have been made,” he said.
“The Minerals Council considers this charter to represent a policy instrument that provides a clear and durable framework for securing a transformed industry with meaningful broad-based economic empowerment within which the critical goals of growth and competitiveness can realistically be achieved.”
Among the areas of concern were the limitations imposed on the continuing consequences of past empowerment deals, a concept commonly known as once-empowered always empowered.
The charter says the 26% targets set in the first two charters would have to be increased to the new level of 30% when mining rights were renewed or transferred in a sale.
The procurement targets set in the charter, demanding a high level of local sourcing and the inclusion of black-owned businesses, which are currently limited and cannot meet the targets set in the charter, were another area of concern.
“It is also hoped that greater clarity and certainty will be obtained in the coming weeks, as the guidelines for implementation are developed,” Mgojo said.