This is our first sight of draft mining charter – Chamber of Mines

Version published on Friday will be used as the basis for engagement between the DMR and key industry stakeholders

Chamber of Mines notes release of Draft Mining Charter

15 April 2016

Commits to constructive engagement with the DMR and other stakeholders in pursuit of ongoing transformation

Johannesburg, 15 April 2016. The Chamber of Mines has noted the publication today by the Minister of Mineral Resources of a new draft of the Broad-based socio-economic empowerment charter for the South African mining industry (Mining Charter) that has been prepared by the Department of Mineral Resources (DMR).

The Charter is the instrument that gives effect to the intentions of the Mineral and Petroleum Resources Development Act. It initially came into effect in 2004 and a revised version was gazetted in 2010. Chamber of Mines member companies continue to be committed to the achievement of all the transformation objectives of the Mining Charter and, for the most, have met the targets set by the 2010 Mining Charter.

The version published this morning will be used as the basis for engagement between the DMR and key industry stakeholders. At a meeting this morning between Minister Mosebenzi Zwane and Chamber office bearers and a number of company CEOs, he and the Chamber team agreed on a process over the coming month, or beyond if necessary, on the content of a revised version of the Mining Charter. This is the first sight the industry has had of the draft and the Chamber is now studying its content.

A further factor to be considered is that the Chamber is currently seeking clarity through the High Court on the interpretation of black economic empowerment ownership transactions carried out by the industry between 2004 and 2014. This decision, which is only expected later this year, will undoubtedly influence both the assessment of the industry’s historical performance in terms of ownership and the way forward and could significantly influence this version of the Charter.

Says Chamber President Mike Teke: “With more than a decade of the application under our belt, we have better understanding of the drivers of transformation that yield the most desirable outcomes, and some of the potential pitfalls. We look forward to constructive interaction with government and the other stakeholders in the period ahead. It is in all of our interests that a mutually acceptable version of the revised charter is finalised at the earliest opportunity.”

Issued by Charmane Russell and Alan Fine, Chamber of Mines, 15 April 2016