South Africa raises mining sector black ownership requirement to 30 percent

PRETORIA (Reuters) – South Africa has raised the minimum threshold for black ownership of mining companies to 30 percent from 26 percent but has not decided if firms must retain that structure permanently, Mines Minister Mosebenzi Zwane said on Thursday.

Mining companies in the world’s top platinum producer have complained about a lack of consultation over revisions to an industry charter which sets targets for black ownership and participation, and say onerous rules would hurt investment.

The rand fell 2 percent after Zwane unveiled details of the revisions while the Johannesburg bourse’s Mining Index extended its decline to more than 3 percent.

Zwane said companies had 12 months to meet the new 30 percent target. The Mining Charter was introduced in 2002 to increase black ownership of the mining industry, which accounts for about 7 percent of South Africa’s economic output.

The Chamber of Mines, an industry body, has taken the government to court over the interpretation of the ownership rules. The government has said companies must keep to black ownership targets even if black shareholders sell their stakes.

Uncertainty about the government policy remained, however, as Zwane said “we have not dealt with that” issue.

The Chamber of Mines, which represents companies such as Anglo American and Sibanye Gold, did not take part in the launch because of what it said was a lack of consultation in drawing up the charter.

(Reporting by Tanisha Heiberg; writing by Ed Stoddard; editing by James Macharia and David Clarke)


Related Content

Minerals Council SA seeks judicial review of Mining Charter

The Minerals Council South Africa has filed an application for judicial review and setting aside certain clauses of the 2018 Mining Charter. Joining CNBC Africa for more is Tebello Chabana, Senior Executive, Public Affairs & Transformation, Minerals Council South Africa.

How to trade shares in broad-based black economic empowerment schemes

Black South African investors looking to trade their shares in MultiChoice and Media24’s broad-based black economic empowerment schemes, Phuthuma Nathi and Welkom Yizani or Motus’ Ukhamba 2 can now do so on Equity Express Securities Exchange. Anthony Wilmot, CEO of Equity Express Securities Exchange joins CNBC Africa for more.

New Mining Charter requires minimum of 30% BEE shareholding

Gwede Mantashe, the Minister of Mineral Resources announced that the "once empowered, always empowered" clause of the previous Mining Charter would still be applicable. However, the gazetting of the 2018 Mining Charter upped the stakes for mining companies by announcing that the minimum BEE shareholding is set at 30 per cent. Sam Mokorosi, Managing Director of Corporate Finance from Vunani Capital joins CNBC Africa for more.

Why South Africa’s new mining charter is keeping its 30 percent black ownership target

The 30 percent target was widely expected as it had been in drafts of the third charter.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

What Happens To Unspent Gift Cards?

Americans love gift cards. The plastic cash substitute has been the most popular holiday item on shoppers’ lists for 13 years in a row, as of 2007. In 2019 alone, U.S. consumers spent close to $98 billion on gift cards from brands like Starbucks, A

Curro opens its online doors to educate learners during COVID-19

Many parents are anxious about sending their kids back to school next week with the risk of Covid-19 infections in the classrooms quite high. Similarly, the risk of compromising the academic year by keeping kids at home until a treatment or cure is found is equally as high. Private school group Curro has launched an online schooling platform to help parents keep their kids educated and safe. Andries Greyling, CEO of Curro joins CNBC Africa for more.

Covid-19: WFP, YouTube partner to tackle food insecurity in Africa

Covid-19 disruptions to global supply chains have raised the alarm around food insecurity in Africa, with millions of people at risk of plunging further into poverty. To help the continent feed itself throughout the crisis streaming platform YouTube has partnered with the World Food Programme and UNICEF to raise funding. That’s as Africa works on a sustainable plan for food production, which includes reducing its reliance on food imports. Alex Okosi, Managing Director for Emerging Markets in Europe, the Middle East and Africa at YouTube joins CNBC Africa for more.

Op-Ed – Uzoma Dozie: How Nigerians can unlock their potential in the digital age

Nigerians are a global force bursting with potential and an enviable track record of success. But in a more complex and fast-paced world than ever before, many of us struggle to find the time or have the ability to fulfil their potential.

Trending Now

Protecting Africa’s progress during the COVID-19 pandemic

As of the 24th of May, Africa had a total of 107,412 confirmed Covid-19 cases, with 42,626 recoveries and 3,246 deaths. CNBC Africa’s Kenneth Igbomor explores ways to protect Africa’s progress during the Covid-19 pandemic with Dr.Vera Songwe, United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa, Dr. John Nkengasong, Director of the Africa Centre for Disease Control & Prevention and Edwin Ikhuoria, Africa Executive Director of the One Campaign....

How Africa can corner a tenth of the world battery metals market – if being brave favours Fortune!

“I can say, do we have a good business: yes. Are we in distress? No. We have a lot of work to do things are going to get worse before they get better.”

African artists donate their vocals to support COVID-19

While big business has used its deep pockets to contribute towards Covid-19 related aid, musicians are using their voices. Artists from across the continent have teamed up to create a song to help governments drive important messaging around Covid-19 and to encourage citizens to play their part in limiting the spread of the virus. Two of the artists on the song, South African rapper Riky Rick and Zimbabwean born Sha Sha join CNBC Africa for more....

How Covid-19 is shaping Africa’s prospects

This time last year Africa was celebrating the milestone that free trade on the continent would soon be a reality. Prior to Covid-19, the free trade Africa deal was due to be implemented on the 1st of July. Africa Day this year is, however, less joyful as the continent grapples with the prospect of deep recession and in some parts, depression with the coronavirus health crisis fast muted into an economic and financial one. Joining CNBC Africa to discuss Africa’s prospects in 2020 is Alexander Forbes Chief Economist, Isaah Mhlanga and Head of Strategic Slients, Lesiba Mothata.
- Advertisement -