Independent Online

Tuesday, June 28, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

South Africa Raises black-ownership requirement for mines

File image

File image

Published Jun 15, 2017

Share

Johannesburg - South Africa plans to introduce rules requiring all local

mines be 30 percent black-owned, regardless of whether they have previously

Story continues below Advertisement

sold shares or assets to black investors that later divested.

The Department of Mineral Resources intends raise the

minimum black-ownership level from the current 26 percent to ensure more

Story continues below Advertisement

proceeds from the country’s natural resources flow to the black majority,

Mining Minister Mosebenzi Zwane told reporters on Thursday in Pretoria, the

capital. The charter will also require companies to pay 1 percent of annual

Story continues below Advertisement

revenue to communities and new prospecting rights will require black control,

Zwane said.

A holder who claims a historical transaction that achieved

Story continues below Advertisement

26 percent prior to the new Mining Charter, which Zwane presented on Thursday,

“must top up to 30 percent within 12 months,” regardless of whether the earlier

black shareholders still hold their position, according to a statement handed

to reporters.

Read also:  Zwane wants 30% black ownership

Most mining companies reached the 26 percent level under

previous versions of the charter but many of the black investors have since

sold out. The Chamber of Mines, which represents mining companies, has said

it’s willing to fight the government in court over the issue of getting credit

from earlier deals, which it says would kill investment in the industry.

Glencore, Impala Platinum Holdings, South32. and Kumba Iron

Ore, which is majority, owned by Anglo, would need to sell the biggest stakes

if the new charter fails to give credit for previous deals, Avior Capital

Markets. said June 1. AngloGold Ashanti.

And Sibanye Gold, the country’s two biggest gold miners, may also be affected

by the new rules.

AngloGold and Kumba both fell 5 percent by 11:16 a.m. in Johannesburg, while

Sibanye traded 6.5 percent lower.” We have listened to miners who have not seen

real economic benefit; people who don’t see benefit of transformation

structures,” he said.

BLOOMBERG 

 

Related Topics:

Share