EDITORIAL: Gwede Mantashe misses mining charter zeitgeist
If the charter aims to seriously revive the industry to create real wealth, the draft falls far short of being the defibrillator needed
If President Cyril Ramaphosa seriously wants to woo US$100bn in new capital, as he loftily claims, he should have paid closer attention to the draft mining charter released last week. The charter is meant to encourage companies to boost black investors in the industry. It is a mission statement for transforming a legacy sector that was, for decades, the emblem of apartheid brutality, characterised by exploitative migrant labour, notoriously heedless disregard for safety, and unequal distribution of benefits. As mining minister Gwede Mantashe put it last week: "Black South Africans cannot be spectators — they must benefit and accumulate wealth." But the mining sector has changed a lot since the 1980s, which has made it more difficult for anyone, white or black, to accumulate wealth. Even though SA’s mineral reserves are estimated at a peerless $2.5 trillion, runaway costs (electricity and labour mostly) mean that most gold and platinum mines are cash-flow negative today.
Back i...
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.