Johannesburg - South Africa plans to introduce rules requiring all local
mines be 30 percent black-owned, regardless of whether they have previously
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
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
revenue to communities and new prospecting rights will require black control,
Zwane said.
A holder who claims a historical transaction that achieved
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