Govt sets new targets in revised draft mining charter

JOHANNESBURG – Government wants to raise black mine ownership to 30-percent over the next five years.

This is one of the targets in a revised draft mining charter which was released for public comment yesterday by Minister of Mineral Resources Gwede Mantashe.

It replaces the controversial charter released a year ago by Mantashe’s predecessor, Mosebenzi Zwane.

Mining companies agreed to postpone a legal challenge to Zwane’s charter after President Cyril Ramaphosa said he was committed to finding a solution to the dispute.

The new draft gives existing mine permit holders five years, instead of one year, to meet the new black ownership requirement.

It also addresses a dispute under the previous charter over companies in which black investors have sold their shares.

Such a company will now be seen as  BEE compliant and has five years to reach 30-percent black ownership.

New Draft Charter

–     Existing permit holders have five years to meet black ownership requirement

–     If black shareholders sell shares, company remains compliant

–     At least 50% of seats on boards reserved for black South Africans

–     1% profits paid to employees and communities

–     70% of procurement budget spent on goods made in South Africa

Source: eNCA