THE mineral resources minister recently gazetted an amended Mining Charter, which generated a good deal of controversy. Although the revised charter retains the principal target of achieving 26% ownership of mining companies by historically disadvantaged South Africans, it adds the requirement of retaining this level continuously. A further amendment stipulates that workers, through the establishment of employee share ownership plans (Esops), are to be allocated a minimum stake of 5% that counts towards the 26% total black economic empowerment (BEE) equity.This marks a significant departure from previous versions of the charter that imposed no specific obligations on companies to include Esops in BEE transactions. The public narrative has been critical of BEE for disproportionately benefiting a small elite, despite the ostensible shift towards broad-based BEE. The insistence on Esops seems to be a direct response to this concern, and thus represents a step towards more broad-based r...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.