Gilbertson blasts mining charter
The latest version of the Mining Charter is a disaster that will scare off foreign investment, Pallinghurst Resources chairman Brian Gilbertson said this week.
“The Mining Charter is a disaster. Investors will not come in to invest into anything like this,” he told City Press during an event by Ntsimbintle Mining at Kathu in the Northern Cape.
When the charter was gazetted and announced earlier this month, JSE mining companies’ share prices fell sharply and all the major mining companies lost billions in collective market value.
Gilbertson said there were five or six elements of the mining charter that no international investor would tolerate.
However, there was cause for celebration at the event, particularly among Ntsimbintle’s grass roots shareholders, after the company’s latest dividend payment of R300 million in April.
Saki Macozoma, Ntsimbintle chairman, said: “On a night such as this, we see how deep transformation can truly run when we, as key players in the mining industry, honour our communities, particularly those surrounding the mine.”
Ntsimbintle is a manganese mining and exploration business. The metal has important industrial metal alloy uses, particularly in stainless steel.
In 2003, nine black economic empowerment groups formed Ntsimbintle to create a company to pursue manganese opportunities in South Africa.
Pallinghurst has a 49.9% in Tshipi é Ntle Manganese Mining and the balance of 50.1% of Tshipi’s shares is held by an empowerment consortium that includes Ntsimbintle.
Tshipi é Ntle owns Tshipi Borwa, which is a shallow opencast mine with access to an estimated 418 million tons of manganese ore. The mine is estimated to be one of the five largest manganese exporters worldwide and the largest manganese mine in South Africa.
– Silver Sibiya