Minister Gwede Mantashe withdraws appeal on recognition of black mining ownership

ANC Secretary General Gwede Mantashe during a press briefing.

Mineral Resources and Energy Minister Gwede Mantashe has withdrawn an appeal at the Supreme Court of Appeal (SCA) on the recognition of black mining ownership signalling a return of regulatory certainty in mining companies.

Published Aug 13, 2020

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JOHANNESBURG – Mineral Resources and Energy Minister Gwede Mantashe has withdrawn an appeal at the Supreme Court of Appeal (SCA) on the recognition of black mining ownership signalling a return of regulatory certainty in mining companies.

The Minerals Council South Africa said yesterday that Mantashe had dropped his notice of appeal to the Supreme Court of Appeal in respect of the declaratory order issued in 2018 by the High Court.

The declaratory order held that black economic empowerment (BEE) ownership transactions should continue to be recognised for regulatory certainty purposes and for the duration of the mining right even where the BEE partner has sold or transferred part or all of its equity.

“The Minerals Council is pleased that this perspective is now undisputed, in furtherance of the Minerals Council’s role of protecting the interests of all stakeholders, including shareholders. The standing decision of the court does not have an impact on the application for a review of the provision of the 2018 Mining Charter’s provision that recognition of continuing consequences would not apply in the cases of transfer or renewal of mining rights,” said the council, adding that the matter was still in progress in the High Court.

"Both the Minerals Council and the Minister have long expressed the hope that this entire matter can be resolved through engagement rather than through the courts," said the council.

The council said that it recognised that inclusive transformation is a key imperative for the mining industry as a whole, and will continue to engage with the Minister and his team on how this can best be achieved. “This step by the Minister is welcomed as it advances the goal of achieving much needed regulatory certainty in the sector,” said the council.

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