CAPE TOWN, June 22 (Xinhua) -- South African President Jacob Zuma on Thursday threw his weight behind the controversial Mining Charter, saying it is essential to boost the economy.
"We need to do something to change the economy to ensure that we ignite the economy," Zuma said in Parliament during a Q&A session.
Zuma was pressed by opposition Democratic Alliance (DA) leader Mmusi Maimane to say whether he supports the Mining Charter, released last week by Minister of Mineral Resources Mosebenzi Zwane.
The charter increases black persons' shareholding from the previous 26 percent to 30 percent and requires that a new prospecting right must have a minimum of 50 percent plus one black person shareholding, including voting rights, among others.
The charter gives mining companies a year to raise black economic shareholding.
"We could not stay at the same place without being innovative about the economy, particularly mining. I believe this is going to bring about change in mining. So, I believe in what the minister has done," Zuma said.
South Africa needs the charter to address the imbalances of the past, he added.
The Chamber of Mines, which represents 90 percent of South Africa's mines, accused the the Department of Mineral Resources of failing 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 and is seeking an urgent court interdict to suspend and review the implementation of the charter.
The announcement of the surprise charter reportedly has already wiped off 51 billion rand (about 395 million U.S. dollars) of the industry's share value.
On Wednesday, international rating agency Moody's warned that the charter is harmful to the South African economy.
