Mining companies required to have 30% black ownership
Effective implementation of this charter is key to see meaningful change says Mineral Resources minister.
THE 2017 Mining Charter has increased the level of black ownership in mining companies from 26 per cent to 30 per cent.
“Holders who have maintained a 30% black shareholding will not be required to restructure their shareholding,” Mineral Resources Minister Mosebenzi Zwane said. “With regards to the transfer of rights, a holder who sells their mining assets must give black owned companies preferential option to purchase,” he said.
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Minister Zwane said the charter requires the holder of a mining right to pay 1 per cent of its annual turnover to the 30 per cent black persons shareholding prior to and over and above any distributions made by a holder to its shareholders.
“This 1 per cent payment is meant to ensure real economic value in the hands of black persons, but is always subject to the solvency and liquidity test, as provided in the Companies Act,” he said. “We cannot ignore the fact that effective implementation of this charter is key if we are to see meaningful change,” Zwane said.
However the news has not gone down well with the opposition. James Lorimer MP, DA Shadow Minister of Mineral Resources, said the party had no doubt the charter will end up in court.
“The ANC government’s Mining Charter proposal wants to make cronies and insiders richer, as they open up new opportunities to get in on mining deals. We have seen the devastating impact of how connected cronies, like the Guptas, prey on deals like this and how they facilitate capture of resources. Almost 450 thousand South Africans work directly for the mines. At least as many again work in associated industries. The future of their jobs is now in doubt.
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“The DA supports share schemes for miners when they are structured to benefit the workers and are economically viable. One way of diversifying the mining sector would be to bring mine workers into mining schemes. It’s pointless to try and diversify if it leads to the collapse of companies,” he said.
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