Mining Charter has been condemned by the South African mines biggest metal producer, Sibanye Gold Ltd. in accordance to the legislation factors which are considered "unacceptable" in their present form. On Friday, the government published draft suggestions saying that mines should be at least owned by 26% of black investors even if those shares are later sold.
The Department of Mineral Resources and the Chamber of Mines defines the largest producers in the country like Anglo American Plc, went to court over their translation of the charter, with the firms stating that they still comply with the rules to have licenses even after the black investors' shares are being sold, Bloomberg reports.
"It is disappointing that the draft Mining Charter was published without extensive consultation and while court procedures seeking to clarify elements of the previous Mining Charter are still in process," Sibanye said in a statement Monday. "The proposed Mining Charter contains aspects that are not acceptable in our view, if they are applied retrospectively."
Mineral Resources Minister Mosebenzi Zwane will get involved with the industry to get inputs on the draft and mining companies have a month starting Friday to say something on the review.
According to Independent Online, South Africa's move to boost mining industry owned by blacks which considers for almost half of the country's exports is part of a move to acknowledge legacy of racial segregation that locked most of the blacks out of key industries. The charter also sets goals for companies to increase the number of black people in the management and improve training and benefits for communities close to mines.
Meanwhile, Sibanye Gold's platinum division will be headed by Jean Nel, former Aquarius Platinum CEO. The platinum division wants to combine mines around Rustenburg, pushing Sibanye into the top ranks of platinum producers, as reported by BDLive.
South Africa's Mining Charter is pushing black ownership of the mining industry which comprises almost half of the country's exports.
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