CAPE TOWN, June 15 (Xinhua) -- Minister of Mineral Resources Mosebenzi Zwane on Thursday released a controversial Mining Charter which increases black shareholding.
The charter requires that a new prospecting right must have a minimum of 50 percent plus one black person shareholding, including voting rights, the minister said in a statement.
A new mining right must have 30-percent black persons' shareholding from the previous 26 percent, with the 30 percent shareholding to be apportioned between employees, communities and entrepreneurs in a specific manner, said Zwane.
Mining companies are given a year to raise black economic shareholding.
But companies which already have a 30 percent black ownership will not be required to restructure their ownership structures, Zwane said.
"The stability of the mining sector is largely dependent on workers, who play a crucial role in its development.
"Stability cannot exist whilst the conditions of workers remains inadequate," the minister said.
The charter also requires 70 percent procurement of mining goods and 80 percent procurement of services from BEE (black economic empowerment) entities. It also requires that analysis of 100 percent of mineral samples be done by South African based companies.
However, the mining sector expressed unhappiness for not being consulted properly before the charter was released.
The Chamber of Mines, which represents 90 percent of South Africa's mines, said the Department of Mineral Resources had failed to follow proper process in drafting the latest version of the charter.
The chamber said it will not be co-opted into a flawed process. Enditem
