Government adopted Mining Charter 2017 which raises black ownership threshold for mining firms

The new Mining Charter raises the minimum threshold for black ownership of mining companies to 30 per cent from 26 per cent. According to the Minister of Mineral Resources, companies have 12 months to meet the new 30 per cent target. The Charter also provides that a new prospecting right must have a minimum of 50 per cent plus 1 Black Person shareholding, which must include voting rights. Also, it provides that a new mining right must have 30 per cent black persons’ shareholding, with the 30 per cent shareholding to be apportioned between employees, communities and entrepreneurs in a specific manner. Further, it requires mining firms to procure 70 per cent of goods and 80 per cent of services from black-owned companies. Moreover, it requires that analysis of 100 per cent of mineral samples be done by South African based companies. Finally, it states that half of the members of mining company boards must be black, and 25 per cent of which must be female black representation. The Charter is now applicable to the Diamonds Act and the Precious Metals Act. In determining whether to grant a license in terms of either of these Acts, the provisions of the Charter must be taken into account.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Primary (Mining and quarrying)

• Sources:

  • Department of Mineral Resources, Broad-Based Black Socio-Economic Empowerment Charter for the South African mining and minerals industry, 2017 , http://www.dmr.gov.za/gazetted-mining-charter-2016/summary/24-mining-charter/8867-broad-based-black-socio-economic-empowerment-charter-for-the-south-african-mining-and-minerals-industry-2017.html, 15 Jun 2017
  • Department of Mineral Resources, Minister Mosebenzi Zwane: Release of 2017 Mining Charter, http://www.gov.za/speeches/minister-mosebenzi-zwane-occasion-release-mining-charter-15-jun-2017-0000, 15 Jun 2017
  • The Thomson Reuters , South Africa raises black ownership threshold for mining firms, http://www.reuters.com/article/us-safrica-mining-idUSKBN19704F, 15 Jun 2017