Mining charter: South Africa keeps 30% black ownership

The South African government says its new mining charter requires holders of mining rights to raise the level of black ownership to at least 30 per cent from 26 per cent within five years.

The Resources Minister Gwede Mantashe said on Thursday in Pretoria that at least 20 per cent of the 30 per cent stake of black ownership would be in the hands of business people.

Mantashe said the other 10 per cent would be granted free to communities and qualifying employees.

The new mining 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.

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.

The 30 per cent 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.