Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

S.Africa mining minister will not say contested charter is law - Chamber of Mines

Published 14/09/2017, 10:11 pm
S.Africa mining minister will not say contested charter is law - Chamber of Mines

By Ed Stoddard

JOHANNESBURG, Sept 14 (Reuters) - South Africa's Chamber of Mines said on Thursday that mines minister Mosebenzi Zwane had pledged in writing to a court that he would not publicly say changes to an industry charter were "law" until a judicial challenge has been completed.

Zwane released the revised mining charter in June, giving mining companies, many of which are pressured by rising costs and volatile or depressed prices, 12 months to meet a new 30 percent minimum for black ownership, up from 26 percent.

The government in July suspended implementation of the new mining law, which includes raising the level of shares blacks should own in mining firms, pending a court ruling. The industry has said it was not consulted on many of the new rules.

But Zwane irked the industry last week at a mining conference in Perth, Australia, when he said that the revised charter was law and companies had 12 months to comply with it.

"His comments caused further damage to investor confidence in an industry already struggling to secure investment," the chamber said in a statement.

"The Minister's latest written undertaking now includes a commitment to provide clarity about his undertaking to suspend implementation whenever he discusses the Charter in the public domain," it said. The chamber provided a copy of his written undertaking to the Pretoria High Court.

The matter will be heard before a full bench of judges on December 13 and 14. The ministry said in a separate statement it looked forward to the hearings "when the matter will finally be heard by the High Court."

"The ministry is of the view that this matter should be resolved speedily as part of government's efforts to address growing impatience and anger experienced by sections of our country's population as a result of continued marginalisation in key economic sectors of our economy," it said.

The Mining Charter was first introduced in 2002 to increase black ownership of the mining industry, which accounts for about 7 percent of South Africa's economic output. (Editing by Pritha Sarkar)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.