Minister of Mineral Resources Gwede Mantashe on Thursday morning described the reviewed Mining Charter as a reflecting a “consensus among stakeholders” in SA’s mining sector.
The charter, which in 2017 caused friction between Former Mineral Resources Minister Mosebenzi Zwane and industry employers organisation the Chamber of Mines, will be published electronically during the course of the day on Thursday on the website of the department of mineral resources.
The long-awaited release of the charter comes a week after Minister of Communications Nomvula Mokonyane confirmed that it had been approved by Cabinet.
The charter gives guidelines for ownership, beneficiation, employment equity and procurement selection for mining rights holders in South Africa.
Mantashe said at a media briefing in Pretoria on Thursday that to entrench regulatory certainty for investors and provide security of tenure, an existing mining right holder who achieved at least 26% black empowerment ownership would be recognised as compliant during the period of their right.
“This recognition is not applicable upon renewal and is not transferable to a new owner in the case of a transfer or sale,” said Mantashe.
The minister said new mining rights, however, would have to have a 30% BEE shareholding which would be applicable for the duration of the mining right.
A minimum of 5% non-transferable carried interest rights must go to qualifying employees, while another 5% must go to host communities.
“The department has prioritised proactive engagement with all our stakeholders. It is in our collective interest to ensure a sector that is thriving and transformed,” Mantashe said.
SA’s mining industry has over the past decade faced job losses, a fall in its exploration budget and rising input costs.
Source:
