The Mercury

Chamber of Mines seeks High Court

New mining charter ‘must be scrapped’

- Dineo Faku

THE SIMMERING battle between business and the government in the mining industry is expected to reach the High Court on Monday when the Chamber of Mines, whose members include AngloGold Ashanti and Anglo American, approaches the court to apply for the newly gazetted Reviewed Mining to be scrapped.

The chamber’s chief negotiator, Elize Strydom, told journalist­s on the sidelines of an informatio­n sharing session by the Commission for Conciliati­on, Mediation and Arbitratio­n in Magaliesbu­rg yesterday that it was deeply regrettabl­e that the chamber was not consulted about the charter.

“We are aiming for Monday. We want the High Court to grant an order that prohibits the Minister of Mineral Resources, Mosebenzi Zwane, from implementi­ng the Revised Mining Charter,” Strydom said.

Strydom said the charter was confusing and vague. “We are hoping the court will grant that the parties must go back to the table and draft a charter that is rational,” she said.

Following the gazetting of the charter last week on Thursday, the chamber threatened to apply for an urgent court interdict to prevent its implementa­tion because of a lack of consultati­on.

It also said it would apply for a review of the charter, which it claimed was ambiguous and had unrealisti­c targets that threatened the sustainabi­lity of the industry.

“We (the chamber) are the stakeholde­r that is going to implement the charter. It is a pity that we have been brushed aside and were not consulted,” she said.

Despite the looming court action, President Jacob Zuma yesterday endorsed the charter in the National Assembly, claiming it would not have an effect on the sector.

However, R51 billion in value was wiped off the mining industry on the JSE when the charter was gazetted last week.

Ratings agency Moody’s on Wednesday also put South African mining houses on a credit downgrade notice.

Minister Zwane, who previously described the charter as a “revolution­ary tool” with which to transform the industry, plans to galvanise support at grassroots for it.

Zwane is expected to lead countrywid­e roadshows, starting with a scheduled imbizo in Middelburg in Mpumalanga today, at which he will unpack the charter.

Zwane also reportedly defended the charter when he tabled the budget vote of the Department of Mineral Resources on Wednesday, saying young people needed to exploit the opportunit­ies contained in the charter.

The charter has increased the empowermen­t target for black ownership in mining to 30 percent from previous target of 26 percent.

As part of the revised 30 percent ownership target, mining companies need to be 14 percent owned by black entreprene­urs, 8 percent by employees and the remaining 8 percent should belong to communitie­s.

However, the sector is already under pressure from price volatility in the commodity environmen­t, rising cost pressures and the downgradin­g of South Africa’s credit ratings.

Henk Langenhove­n, the chief economist at the chamber, earlier painted a bleak picture of the industry and indicated that 40 000 jobs had been lost in the sector over the past two years. He added that 1 500 jobs were being lost monthly in the industry.

 ??  ?? Minerals resources Minister Mosebenzi Zwane. He plans to galvanise support for the new mining charter.
Minerals resources Minister Mosebenzi Zwane. He plans to galvanise support for the new mining charter.

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