The Minerals Council South Africa has, reluctantly, filed an application for the judicial review and setting aside of certain clauses of the 2018 Mining Charter.
For context - please refer to points raised below the options.
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“This application is fully aligned with our previously stated view that most aspects of the Charter represent a reasonable and workable framework, but that the provision that the charter does not fully recognise the continuing consequences of previous empowerment transactions, particularly in respect of mining right renewals and transfers of these rights, remains untenable," explains CEO, Roger Baxter.
"Not only does this provision in particular have a severely dampening effect on the attractiveness of mining in the eyes of investors, but it is also, in our view, a breach of the declaratory order on the matter issued by the North Gauteng High Court in April.
The Council has engaged in ongoing attempts to reach a compromise with the South African Minister of Mineral Resources, Gwede Mantashe, on certain provisions in the Mining Charter that are problematic for the industry, and which would be detrimental to its sustainability.
The Department of Mineral Resources states the current Mining Charter represents broad consensus and acceptance by stakeholders who were involved in its development and formulation.
As such, it is a broadly agreed to, workable framework for transformation in the industry.
Leading to its gazetting, and thereafter, there have been and continues to be constant dialogue between the Ministry and various stakeholders.
It is therefore unfortunate that the Council has opted to take the Charter for judicial review.
Delaying the implementation of the Charter will impact negatively on the positive climate characterising mining and economic investment at present.
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