South Africa releases Mining Charter focusing on black peopleStaff Writer | June 16, 2017
Minister of Mineral Resources Mosebenzi Zwane released a controversial Mining Charter which increases black shareholding.
Africa A new mining right
A new mining right must have 30-percent black persons' shareholding from the previous 26 percent, with the 30 percent shareholding to be apportioned between employees, communities and entrepreneurs in a specific manner, said Zwane.
Mining companies are given a year to raise black economic shareholding
But companies which already have a 30 percent black ownership will not be required to restructure their ownership structures, Zwane said.
"The stability of the mining sector is largely dependent on workers, who play a crucial role in its development.
"Stability cannot exist whilst the conditions of workers remains inadequate," the minister said.
The charter also requires 70 percent procurement of mining goods and 80 percent procurement of services from BEE (black economic empowerment) entities.
It also requires that analysis of 100 percent of mineral samples be done by South African based companies. ■