Following the release of the third Mining Charter by the Minister of Mineral Resources Mosebenzi Zwane this week, rumours of further or possible capture of minning as industry by the African National Congress (ANC) cronies and insiders have emerged.
The 2017 Mining Charter has increased the level of black ownership in mining companies from 26% to 30% with a minimum of 50% plus 1 black person shareholding, which must include voting rights.
On Employment Equity, the charter requires a minimum of 50% black representation on Board Level of the mining companies, 25% of which must be black females; at an executive/top management level, a minimum of 50% black representation, 25% of which must be female black representation, and at senior management level, a minimum of 60% representation, 30% of which must be female black representation.
The Democratic Alliance were the first critics to the charter:
The party criticized the charter saying it is a proof that the ANC government does not care about long-term and sustainable transformation in the mining sector. DA said the third Mining Charter will be a disaster for the mining industry and will open the doors to more ANC crony enrichment..
The party said it supports share schemes for miners when they are structured to benefit the workers and are economically viable. “One way of diversifying the mining sector would be to bring mine workers into mining schemes. It’s pointless to try and diversify if it leads to the collapse of companies.” said James Lorimer – DA Shadow Minister of Mineral Resources
“But this is not what the ANC government is proposing. Instead, the ANC government’s Mining Charter proposal wants to make cronies and insiders richer, as they open up new opportunities to get in on mining deals. We have seen the devastating impact of how connected cronies, like the Guptas, prey on deals like this and how they facilitate capture of resources.”
“The reality is that only 8% of ownership will ever make it into the hands of mineworkers under Zwane’s proposal.”
According to the DA Minister Zwane’s proposal seeks to win back the favour of the National Union of Mineworkers (NUM) who are unhappy because of State Capture and a declining industry.
“We believe that today’s proposal’s by the Minister seek to buy off communities who have been let down by the failure of ANC municipalities to deliver services, and the failure of the ANC government to create an economy that provides jobs.
“We also believe that the requirement announced by Minister Zwane that all prospecting rights must be 50% +1 BEE inclusive, will mean the virtual death of prospecting. The BEE sector is perennially short of cash, particularly for speculative actions like prospecting. The amount of prospecting will plummet. Even if there are new finds, capital will be extremely difficult to raise.”
The party said it have no doubt that the charter will end up in court in the very near future.