eBusiness Weekly
CAPE TOWN. — South Africa’s newly appointed Minister of Mineral Resources Gwede Mantashe pledged yesterday to ensure policy certainty in the mining sector.
For such certainty, South Africa needs to see finality with regards to the controversial Mining Charter and the Mineral and Petroleum Resources Development (MPRD) Amendment Bill, with the aim of improving investor confidence, the minister said.
Mantashe issued the statement after meeting with shareholders in the mining industry over the weekend amid growing calls to review the Mining Charter.
Mantashe said there are key aspects the country needs to address with urgency and speed so as to enable the industry to operate optimally, and make a meaningful contribution to the growth and development of the economy.
In February, Mantashe took over from Mosebenzi Zwane as the Minister of Mineral Resources. Zwane had strongly pushed the Mining Charter, under which 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.
The Charter also wants 70 percent procurement of mining goods and 80 percent procurement of services from BEE (black economic empowerment) entities, among others.
The Chamber of Mines, which represents 90 percent of South Africa’s mines, maintains that the Charter is illegal and could destroy South Africa’s mining industry while undermining transformation attempts.
In July last year, the South African government put the Charter on hold pending a court judgment in an urgent interdict application fielded by by the Chamber of Mines.
Mantashe did not say how he would review the Charter but noted that the Charter concerns transformation.
Transformation means the ownership, control, management and meaningful participation by the black majority in the industry and such transformation can occur in a growing and competitive mining industry, said the minister.
“Our emphasis on transformation is on a mining industry that benefits producers–big and small, workers, communities and the economy of the country.
“Consequently, in our view, transformation and competitiveness are not mutually exclusive. Therefore, the long-term objective must be captured in the vision for the industry,” he added.
Mantashe said his meeting with shareholders in the mining industry had decided to establish two teams, with one focusing on transformation and the Mining Charter, and the other engaging on issues of growth and competitiveness.
These teams will report back in three weeks, said Mantashe.
He said his ministry will continue to engage with mining shareholders “in an open and transparent way to re-establish trust among the social partners.”
Mantashe said his ministry is currently developing a planned programme for consultations with communities on the Charter.
“It is my wish that the final Charter is finalized and gazetted during the first half of this year,” Mantashe said.
As for the MPRD Amendment Bill, it is currently before Parliament, and appropriate ways of ensuring urgent progress at that level are being considered, according to the minister. – Xinhua
