Released on 27 September 2018 by Mineral Resources Minister Gwede Mantashe, the new Mining Charter has sparked significant interest not only in recent days but also in the months leading up to it.
The Department of Mineral Resources has provided an overview of the Charter, examining its various components. These include Ownership, Mine Community Development, Employment Equity, Beneficiation, Housing and Living Conditions, and others.
Despite its tumultuous history, which saw numerous iterations before this final version was Gazetted (15 June 2018, No. 41714), Minister Mantashe has assured stakeholders that there will be no additional changes made within the next five years.
The Charter was first introduced in 2004 and amended in 2010. It is designed to set out the obligations of mining and prospecting rights holders to racially transform their ownership, management structures, and procurement practices. This is necessary to facilitate sustainable transformation, growth, and development of the mining industry.
And while it is still early days to determine the general market reception (and impact) of the Charter, its finalisation will help bring certainty around policy in the mining sector.
Even though the full Mining Charter is available online for downloading and reading, we have provided a link to a presentation from Mantis Networks for a convenient overview.
Given the complexities and nuances in such a complicated document, government has provided the assurance that implementation guidelines will be released within the next two months. An important consideration is that the Mining Charter does not align with the Codes of Good Practice from the Department of Trade and Industry. While it does take its definitions from the B-BBEE Act, the sector must be aware there are important distinctions in the Charter.
The success of the Charter will likely only be seen in the months and years to come. However, the much-needed structure provided to the regulatory environment, means mines can now focus on putting the systems and process in place to ensure compliance.
Want to know more? Get in touch with Signa Group, and let one of our business experts advise you on the ins and outs of the Charter for your business. Please email firstname.lastname@example.org for further information.