Mining Review Africa was in attendance at the Mining Charter III media briefing today and will in a series of news pieces outline the key takeaways for the next few days. The topic of ownership is uncovered first.
To make the Charter III key components easy to digest – we break it up into various components.
One of the most important elements of the Charter navigates ownership.
“To entrench regulatory certainty for investors, and provide security of tenure for investments, an existing mining right holder who achieved a minimum of 26% -including a right holder whose BEE partner has since exited – is recognised as compliant for the duration of the right. This recognition is not applicable upon renewal, and is not transferrable to a new owner in the case of a transfer or sale,” says DMR minister Gwede Mantashe.
The Mining Charter, 2010 will apply to all pending applications lodged and accepted prior to the coming into effect of the Mining Charter 2018. These right holders will be expected to increase their minimum BBBEE shareholding to 30% within five years.
A new mining right – granted after the coming into effect of Mining Charter, 2018 – must have a minimum of 30% BEE shareholding, applicable for the duration of the mining right. It shall be distributed as follows:
- A minimum of 5% non-transferable carried interest to qualifying employees;
- A minimum of 5% non-transferrable carried interest to host communities, or a
- minimum 5% equity equivalent benefit. Equity equivalent refers to 5% equivalent of
- the issued share capital, at no cost to a Trust or similar vehicle set up for the benefit
- of host communities.
- A minimum of 20% effective ownership in the form of shares to a BEE entrepreneur,
- a minimum of 5% which must preferably be for women.
Industry expert Bernard Swanepoel, head of the Joburg Indaba is in favour of these new conditions. He tweets:
Over the following days, read miningreview.com to find out conditions pertaining to:
- Junior mining
- Inclusive Procurement, Supplier and Enterprise Development
- Human Resource Development
- Employment Equity
- Mine Community Development
- Housing and Living Conditions