JOHANNESBURG – (PPF) The Progressive Professionals Forum welcomed the move of new and revised Mining Charter by the Mineral Resources Minister Mosebenzi Zwane.
As it is obvioud and new charter has been criticised by the Chamber of Mines, the PPF says the new law and changes will bring transformation to the mining sector.
PPF suggested and has been pushing for a minimum 50% black ownership to maximise the effect in the revised Mining Charter, but government settled for 30%.
The organisation says the percentage is low and will not assist in changing the ownership patterns in the mining sector mush and need more change.
Chairperson Tembekazi Mnyaka says: “We welcome the 1% being given to shareholders. It provides liquidity to black players that they never had. We also welcome the social integration plan, where 8% will go to communities and 8% will go to hardworking staff.”
The Chamber of Mines said it would challenge the new rules in court, by saying that not much study and consultation being done on the same in drawing up the charter, which is designed to widen the ownership of the South African economy.
He added “We have given due consideration to the submissions made and we will not be held ransom to those views that seek to derail transformation in the minerals sector,” he said in an opinion piece in the Sunday Times newspaper.
Saying that it was impossible to please everybody, Zwane said a court review by aggrieved parties was expected.
“Should this happen, we are hopeful that the judiciary, recognising the separation of powers doctrine, does not usurp the role of the executive in exercising its power,” he said.
Implementing the charter would be a significant blow to an industry that is already struggling, Schultz said.