New Wisdom Investment Limited

Radically Transform The Ownership of The South African Mining Assets

(Jun 23, 2017)

South African miners say they have not been consulted on radical changes in the new Mining Charter which president Jacob Zuma says will be gazetted within weeks.

Zuma told the National Assembly yesterday the charter would “radically transform” ownership of mining assets, include beneficiation and procurement requirements and community development initiatives.

“Through the charter, government seeks to radically transform the ownership of the South African mining assets by ensuring that black people meaningfully and effectively participate in the mining and minerals industries, while ensuring that the mining industry remains globally competitive,” he said.

The black ownership minimum could be raised from 26% to 30%, Bloomberg reported citing sources familiar with the matter.

However, producer representative Chamber of Mines of South Africa told reporters last week it had been frozen out of consultation and did not have any insight on the latest version of the charter.

The looming dispute threatens to prolong uncertainty and further slow spending in South Africa’s biggest export industry, the wire service noted.

Chamber CEO Roger Baxter told reporters last week the organisation was “not shy” if it needed to engage the government in legal action, Bloomberg said.

“Government has the same route if they want to follow it,” Baxter said.

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