Mantashe extends deadline for comment on Mining Charter
The controversial new legislation seeks to deepen black empowerment in the struggling sector.
Mineral Resources Minister Gwede Mantashe said on Sunday he would the period for public comment on the Mining Charter that lays out requirements for black ownership levels and other targets, for a month.
The Minerals Council South Africa (MCSA) last month slated Mantashe’s draft Mining Charter, saying that in its current form it would not promote investment and growth.
With the minister increasing black ownership to 30% from where it had been lying stagnant for the past 14 years at 26%, MCSA spokesperson Charmane Russell said the council supported the new target on new mining rights, with shares allocated for communities, organised labour and black entrepreneurs.
MCSA also did not support the 1% earnings before interest, tax, depreciation and amortisation target to communities and labour proposed by the department of mineral resources (DMR).
“The issue of topping up existing right holders’ BEE ownership to 30% within five years was never agreed as a recommendation in the Charter Task Team, and so this is another surprise inclusion by the DMR.”
Russell said the council did not support the free carried interest of 5% allocated to each of labour and communities.
Mining analyst Mamokgethi Molopyane said Mantashe was walking a tightrope between balancing the interests of investors and the ANC’s radical economic transformation (RET) goals.
Mantashe set a 30-day deadline for those wishing to comment on the draft bill, but has now extended it until the end of August.
“It gives people a chance to engage more and comment more,” Mantashe said in his closing speech at an mining summit called to discuss the charter.
