Government, Chamber of Mines agree to postpone charter court challenge

THE CHAMBER of Mines has agreed to postpone a court challenge against the revised mining charter to allow for negotiations with President Cyril Ramaphosa.

The uncertainty over the charter has deterred investment into a sector that accounts for 8% of South Africa’s economic output. Mining companies have said many of the revised charter’s provisions are unaffordable while they grapple with depressed prices and rising costs. Rating agencies have also cited the policy as a concern because it might hinder South Africa’s economic growth.

Supporters of the rule changes, proposed under former president Jacob Zuma, say they are necessary to improve conditions at the mines and more equitably share profits.

“The Presidency has been in discussion with the Chamber of Mines to resolve the impasse over the Mining Charter and to facilitate a process of developing a new Mining Charter that all stakeholders can support and defend,” Ramaphosa’s office said.

The Chamber of Mines had agreed to postpone its high court challenge to the new rules, set for yesterday to tomorrow.

“The postponement serves to allow parties the space to engage and find an amicable solution,” the Presidency said.

In an address to Parliament on Friday, and his first as president, Ramaphosa said he was committed to “policy certainty and consistency”, in contrast to Zuma, who was criticised for policy shifts and unpredictable cabinet changes.

“We welcome the president’s intervention and his commitment to engaging meaningfully with stakeholders in the industry – and others – on a new Mining Charter,” said Chamber of Mines president Mxolisi Mgojo. – Reuters