Angry crowd snubs Zwane over charter
MINERAL Resources Minister Mosebenzi Zwane had to postpone a meeting on the Reviewed Mining Charter with residents in Middelburg, Mpumalanga, on Friday after an angry crowd booed him, raising questions on whether communities were consulted extensively before the charter was gazetted last week.
Zwane was expected to address the first imbizo in coalrich Middelburg as part of a two-week provincial road show to raise awareness of the charter, but the angry crowd said they wanted Premier David Mabuza to address them.
Blessing Ramoba, a mining activist and founder of the Mining Forum of South Africa, said the residents snubbed Zwane because they had more pressing issues, including the issue of service delivery.
Ramoba said residents were not expecting Zwane as they did not know him.
“They were expecting Mabuza,” he said, adding that only a few enlightened people including chiefs knew about the contents of the charter.
“The imbizo was supposed to be part of the consultation process for the charter.
“They are imposing this charter on the people.
“No one is going to benefit from the charter, it is the same cartels that will benefit and they are going to share the spoils among themselves,” he said.
Zwane had previously described the charter as a revolutionary tool through which the mining sector would be transformed.
He also said that more than 60 stakeholders had been consulted for the charter.
However, Ramoba also questioned the timing of the charter, saying it would lead to job losses as mines were not in a position to absorb the new target of 30 percent black ownership in black hands from the current 26 percent.
“The timing of the charter is not right because of the current economic situation.
“The government should have at least waited until the economy recovers before gazetting the charter,” Ramoba added.
On Thursday, President Jacob Zuma defended the charter, charging that it would not adversely affect the industry despite the fact that R51 billion of the value of mining companies was wiped out on the JSE when the charter was gazetted.
The gazetting of the charter has resulted in the fallout between the Chamber of Mines, which represents 90 percent of employers in the industry, and the government, with the Chamber expected to approach the court tomorrow in an effort to have it reversed, citing lack of consultation.
The Chamber’s chief negotiator, Elize Strydom, said the legal action would help get parties back to the negotiation table.
“Where does this lack of consultation come from? Can we not sit around the table with stakeholders and craft something for the industry?” she asked.
The charter complicates the industry’s problems, including domestic cost pressures, the low demand from China and volatile international commodity prices – all of which saw 75 000 job cuts in the last five years.
Mining jumped 15 percent year-on-year in March 2017, beating expectations of a 4.3 percent gain.
However, the progress is likely to be reversed after international ratings agency Moody’s issued a credit downgrade notice for mining houses because it said the new charter requirements would add to the costs of operating mines and would reduce free cash-flow generation.