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Mines minister defends new mining charter

Says new regulations seeking to accelerate black ownership in the key industry as a “win-win” situation for all.

South Africa mine’s minister on Sunday defended new regulations seeking to accelerate black ownership in the key industry as a “win-win” situation for all, despite objections from an industry body threatening court action to block the changes.

Minister Mosebenzi Zwane released the government’s revised Mining Charter on Thursday, raising the minimum threshold for black ownership of mining companies to 30% from 26%, and giving resource companies 12 months to meet the target among a raft of other regulations that hit mining stocks.

Read The new mining charter is populism on steroids

The Chamber of Mines, which represents mining firms, said it would challenge the new rules in court, arguing that there had been insufficient consultation in drawing up the charter – which is designed to widen ownership of Africa’s most industrialised economy.

“We have given due consideration to the submissions made and we will not be held ransom to those views that seek to derail transformation in the minerals sector,” Zwane said an an opinion piece in the Sunday Times newspaper.

Saying that it was impossible to please everybody, Zwane said a court review by aggrieved parties was expected.

Read Chamber of Mines to take legal action against new Mining Charter

“Should this happen, we are hopeful that the judiciary, recognising the separation of powers doctrine, does not usurp the role of the executive in exercising its power,” he said.

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I don’t much care for this Minister in particular (given his shenanigans with the Guptas and unexplained trip to negotiate a transfer and or ‘negotiation’ of a mining asset on their behalf and or in conjunction.) But this portfolio is important, and transformation in this sector is long overdue, The Chamber has offered no constructive solutions or proposals, 20-plus years later. The Minister and or his office, has authority in this area, and must proceed with speed. Once these court cases are resolved in favour of the State, the Minister must outline a robust time table and the attendant consequences for failing to comply.

What is “transformation”? Is it Gupta ownership (thanks Mr same minister)? Ramaphosa ownership – lazy, takes no management decisions except to deal with striking workers “firmly”; Idi Amin style? I think it is more lies – it is no different to what came before – enrichment of the politically connected and screw the poor.

Now I understand why foreigners take their money and run.

Not matter how well businesses are run, no matter what good ideas we South Africans come up with, no matter how many hours we work, it is impossible to progress or prosper with such “leadership”.

Watch the tax space, where will they fetch money if businesses are either closing down or relocating overseas?

One day it will 1 million tax payer compared to 5 million 🙂

I don’t think your question posits that you are opposed to quote transformation unquote. It seems to me that you are convinced that the way the word is used, and or the purposes for which it is invoked, is to self-enrich, and or alternatively to corruptly enrich a select few, an observation that is much borne by the facts on the ground as indicated by the enrichment of the likes of Ramaphosa, and now the pillaging of the State assets and privatizing thereof by one Indian family that got citizenship almost overnight by the same department that had initially told them that their application does not meet the smell test! While the poor get boggorol (nada, zilch, zero). Then the problem is not transformation per se, it is the crooks who are heading the programs and or leading the initiative!!! That is what must change, if it is to succeed.

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