Comment Period on Mining Charter Extended

Department of Mineral Resources

The comment period for the revised Draft Mining Charter has been extended until the end of August 2018.

The mineral resources minister, Gwede Mantashe, announced the extension at a recent two-day summit on the Mining Charter.

The Draft Charter was published for comment in June 2018.

In the latest version, the Draft Charter stipulates that an existing right holder with a minimum of 26% BEE shareholding at the date of publication of the Mining Charter will have five years to increase BEE shareholding to 30%.

The Draft Charter also indicates that rights holders whose BEE shareholders have subsequently sold their shares will be regarded as compliant upon date of publication and will have five years to raise BEE shareholding to a minimum of 30%.

Right holders without a minimum of 26% BEE shareholding on the date the new charter comes into effect will be subject to corrective processes as spelled out in the Minerals and Petroleum Resources Development Act.

New mining rights will have to have a minimum of 30% BEE shareholding.

Right holders will also be expected to pay a trickle dividend equal to 1% of revenue from the sixth year of a mining right to employees and communities until dividends are declared.

As regards procurement, a minimum of 70% of total procurement must be on locally manufactured goods while 80% of total spend on services must be sourced locally.

Boards must consist of a minimum of 50% Black persons of which 20% must be women.

Middle management will have to consist of 60% Black managers with 20% women.

During the summit, the minister also revealed that the Mining Charter is likely to be finalised by November 2018.

The minister also indicated that the Draft Charter will undergo a socio-economic impact assessment.

Sabinet Cape Town Office