Chamber, DMR still at odds over mining charter

File picture: Nadine Hutton/Bloomberg

File picture: Nadine Hutton/Bloomberg

Published Nov 28, 2016

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Johannesburg - The Department of Mineral Resources (DMR) on Friday stared down the Chamber of Mines’ threats to challenge the draft reviewed mining charter, charging that while the mining companies’ representative was within its rights to do so, its consultation with all the stakeholders involved was above board.

The DMR said it had shared the progress made on the charter with the chamber last month and they had a number of engagements on the charter. “This constitutes more engagements with an interested and affected stakeholder, when compared to others.”

Read also: Battle looming over mining charter?

Relations between the department and the lobby group representing mining employers has been under severe strain with the chamber’s discontent over the draft reviewed mining charter.

Last week the chamber said its inputs during engagements had been ignored. The body also said that the charter would impose additional taxes, which threatened to make the industry uncompetitive.

It said it would not take the charter lying down after complaining that the process used to arrive at the charter had been flawed.

The chamber’s chief executive, Roger Baxter, told journalists that the lobby group had not received a copy of the revised draft mining charter and it would not take the revised mining charter “lying down”.

Tore apart

Baxter tore apart the reviewed mining charter saying its recommendations were not considered in the document that was submitted to cabinet earlier this month.

But the DMR said none of the stakeholders consulted had been given a copy of the charter, as the department was in the process of considering and finalising the input received.

“In light of the fact that the reviewed charter is a document that seeks to encapsulate all of South Africa’s interests and not just the chamber’s, it would be an unfortunate gesture,” the DMR said. “Mineral Resources Minister Mosebenzi Zwane has always maintained an open door policy of engagement with stakeholders, and looks forward to meeting with the chamber on this and other matters raised by the chamber, at its earliest convenience.”

The chamber ran to the court earlier this year on the ownership element of the charter arguing that previous empowerment deals should still apply even if shares had been sold.

The DMR previously said the parties had since sought an out-of-court resolution on the declaratory order on the interpretation of the so-called once empowered always empowered principle in the charter.

It said it had not deviated from legislative requirements in the constitution and other prescripts.

“Government has a responsibility to consult with all its stakeholders and consider their input - it would therefore not be appropriate for the government to have an exclusionary negotiation with the chamber on legislation development.”

However, the DMR said it had, in fact, engaged comprehensively with the chamber on the draft charter since it was gazetted in April.

It said the chamber had cancelled a confirmed further meeting scheduled for Saturday, November 19, with the minister at the eleventh hour.

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