Final Mining Charter heading to the courts
The new and final Mining Charter has been met with anger by the Chamber of Mines.
Minister of the Department of Mineral Resources, Mosebenzi Zwane revealed the charter in Pretoria this morning.
Zwane said mining companies need to increase their black ownership from 26% to 30%.
According to the final charter revised charter companies would need to give 8% of their shares to employees, 8% to mining communities and 14% to procurement from black businesses.
Mining companies will also be required to pay 1% over its annual turnover to the 30% black shareholding over and above any distribution.
It also requires a minimum of 50% black representation at board level of which 25% need to be women.
However, the revised mining charter has been met with some resistance from the Chamber of Mines.
President of the Chamber of Mines Mxolisi Mgojo says it is unfortunate that they are left with no other choice, but to turn to the courts.
Partner at Hogan Lovells specialising in mining, Wessel Badenhorst, says the revised charter is unclear on several aspects and this is creating a lot of uncertainty.
The rand has also taken a knock against other currencies, following the announcement of the revised mining charter.