NewsSouthern AfricaSouth Africa keeps 30 pct black ownership target in mining charter

Thu,18Oct2018

Posted on Thursday, 27 September 2018 11:45

South Africa keeps 30 pct black ownership target in mining charter

By Reuters

Gwede Mantasheduring a media briefing in Johannesburg, South Africa, Wednesday, April 5, 2017. Photo: Themba Hadebe/AP/SIPASouth Africa's new mining charter will require holders of mining rights to raise the level of black ownership to at least 30% from 26% within five years, Resources Minister Gwede Mantashe said on Thursday.

The charter is part of an affirmative action drive that aims to reverse decades of black people's exclusion from the mainstream economy under apartheid.

Agreeing a new version of the charter is crucial to securing further investment in the mining industry in the world's top platinum producer and bolstering President Cyril Ramaphosa's pledge to revitalise the economy.

30% target widely expected

The third version of the charter, which sets out required levels on black ownership and other targets for mining companies, has been delayed for years amid wrangling with the industry in decline.

Mantashe, speaking to journalists, said least 20% of the 30% stake of black ownership would be in the hands of businesspeople with the other 10% being granted free to communities and qualifying employees.

The 30% target was widely expected as it had been in drafts of the third charter but investors and the industry were waiting for the final breakdown.

 



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