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SA court backs mining industry on black ownership rule

Mining companies aren’t required to top up black ownership levels if they’ve previously met the minimum requirements.

South African mining companies aren’t required to top up black ownership levels if they’ve previously met the minimum requirements, a court ruled Wednesday.

The decision is a victory for the Chamber of Mines, a lobby representing most producers, which sought a declaratory order on the so-called “once empowered, always empowered” principle. It may also have implications for discussions over a new Mining Charter between the industry and Mineral Resources Minister Gwede Mantashe.

The first two mining charters — rules aimed at distributing the wealth and benefits from the industry more widely — do allow companies to count previous sales to black investors to reach the black-ownership requirements, even if those investors later sold their shares to whites or foreigners, the High Court in Pretoria said in a judgment Wednesday, which the chamber posted on its website.

The dispute over “once empowered, always empowered” was revived last year after then-Mineral Resources Minister Mosebenzi Zwane published a third version of the mining charter, furiously criticised by the mining industry, that he said required companies to maintain the minimum ownership level.

Mantashe was appointed in February by new President Cyril Ramaphosa, who has pledged to find a solution to the dispute over last year’s charter.

© 2018 Bloomberg


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Finally some sanity prevails. In what world were these guys living if they thought it is okay to burden investors/mines with freebies that they must start handing out all over again, if the previous freebie recipient decides to sell, piss away their handout? Oh, I forgot, a world of entitlement…

Hopefully we can get back to some growth in our mining industry which has been pulled down by our inept political leadership from the most prosperous mining destination in the world, to what is now just another African basket case…

This ruling is very onerous for Cyril with his outstanding debt of R5 billion plus to Lonmin. when he was pushed on paying ,which he refuses to do he told Lonmin to find another BE partner.
The way i see it Lonmin is now seen to have met it’s BE commitments and can go for the debt.
do’nt be surprised if the Eff is roped in to overturn this law the way they helped with ”expropriation without compensation”- do’nt pop the the champagne yet Mr Mine owner.

This decision is a commonsense one in my view. You cannot make the company liable for the decisions and actions of the BEE shareholders. If anything the BEE shareholders must bring replacement investors to the table when they want out.

replacement bee shareholder is apropriate

why , so darkeys can continue to receive free lunch?

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