BMI Research has lowered SA’s mining risk/reward regulatory score to 46 from 50, pointing to the new version of the Mining Charter, which it said would solidify the country’s negative mining sector growth prospects. The charter, which the Chamber of Miners plans to take on legal review, calls on mining groups to increase black ownership rates from 26% to 30% within 12 months. Companies are also required to pay at least 1% of their annual revenue to develop black communities, among other stipulations. BMI, which is part of the Fitch Group, said in a statement on Wednesday that the new regulations were likely to increase compliance costs for miners operating in the country at a time of slim margins. "Within SA’s diverse competitive landscape, companies such as Lonmin, Anglo Platinum and Implats [Impala Platinum] will be significantly financially exposed to the new 1% royalty rate, due to margins being particularly low among platinum miners," BMI said. "The new regulations will further...
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