ESG

South Africa to appeal mining charter ruling

South Africa is reportedly set to appeal the recent High Court decision on the country’s mining charter, which was in favour of the Minerals Council South Africa’s challenge and deemed it a policy, not a law.

Staff reporter
 Law firm Fasken, which has had a presence in South Africa for 130 years, pointed out some BEE provisions remained in the mining charter

Law firm Fasken, which has had a presence in South Africa for 130 years, pointed out some BEE provisions remained in the mining charter

The government would appeal two court rulings that struck down changes to rules requiring mining firms to be at least 26% owned by Black investors in perpetuity and declared it unlawful for payouts to the coronavirus-struck tourism industry to be limited to Black businesses, Bloomberg reported last week.

In the mining charter decision two weeks ago, the High Court had upheld the "once empowered, always empowered" principle and also scrapped local procurement targets, with South Africa-based law firm Webber Wentzel noting the judgement was likely to be appealed

Mineral resources and energy minister Gwede Mantashe had maintained at a mining conference in Limpopo last week the charter remained a tool for transformation to set the country on a path for inclusive growth and development.

He had sought through the charter for miners to top up Black Economic Empowerment ownership to 30% if they fell below the 26% BEE threshold.

Johannesburg-based lawyers from global legal firm Fasken said according to the ruling, mining right holders who, at any stage had achieved a minimum of 26% BEE shareholding, and whose BEE partners exited prior to the commencement of Mining Charter III, would be recognised as compliant with the BEE requirements of the Mining Charter for the duration of the mining right.

However Godfrey Malesa and Mmaphuti Morolong noted not all the charter's provisions were reviewed or set aside.

"These clauses include amongst, that new mining rights must have a minimum of 30% BEE shareholding, the clauses which concern employment equity, human resource development, mine community development, and housing and living conditions," they said.

"Given that the court held that the Mining Charter III is a policy document rather than a legally binding instrument, mining right holders may, but are not legally obliged to, comply with the remaining requirements imposed under the Mining Charter III." 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.