Mining companies ready for legal battle

Following the unveiling
of the controversial new
Mining Charter last week,
the Chamber of Mines
(CoM) – which represents
South Africa’s top mining
companies – is getting ready
for a major legal battle to
prevent the new charter
from being implemented.
Under the new legislation
– set for implementation
within 12 months –
amongst others, mining
companies will have to
ensure that their South
African assets are 30%
black-owned within 12
months, up from a previous
level of 26%.
While reiterating its
commitment to industry
transformation, CoM
president Mxolisi Mgojo
said the Mining Charter
had been drafted without
consultation and that the
new regulations would limit
an industry that had already
been in decline. It would
also ultimately risk the jobs
of mineworkers and those in
supporting industries.
“Transformation should
be implemented in a way
that is sustainable, with
practical and rational
targets. Transformation
and competitiveness go
hand in hand,” he said,
while agreeing that the
transformation journey was
not yet over.
Mgojo pointed out
that Chamber members
had achieved ownership
empowerment levels of
38% on average and that
the value of empowerment
transactions since 2000
amounted to over
R205 billion.
Minister of Mineral
Resources, Mosebenzi
Zwane, reacted to the CoM
threat by saying: “We will
not be held to ransom by
those views that seek to
derail transformation in the
minerals sector.”