New group formed in wake of Min­ing Char­ter

The Star Early Edition - - BUSINESS REPORT - Di­neo Faku

PO­LIT­I­CALLY con­nected busi­ness­man Thu­lani Ngubane, and Zondwa Man­dela, grand­son of the late Pres­i­dent Nel­son Man­dela, are plan­ning to es­tab­lish a new min­ing or­gan­i­sa­tion that will cham­pion the cause of en­trepreneurs and com­mu­ni­ties fol­low­ing the gazetting of the re­viewed Min­ing Char­ter.

Ngubane said he and Man­dela, who were both for­mer di­rec­tors of Aurora Em­pow­er­ment Sys­tems and were ac­cused of run­ning Pamodzi’s Grootvlei and Orkney Mines into the ground, were sched­uled to launch the South African Min­ers As­so­ci­a­tion in Jo­han­nes­burg on Thurs­day.

Ngubane said on Fri­day the as­so­ci­a­tion, whose ob­jec­tive was to pro­mote the re­viewed char­ter, was ex­pected to have a pres­ence in all nine prov­inces.

“Through the char­ter, Min­eral Re­sources Min­is­ter Mosebenzi Zwane has given the min­ing in­dus­try a new lease on life.

“This char­ter will help to al­le­vi­ate poverty in min­ing com­mu­ni­ties,” he said.

The as­so­ci­a­tion would also help ed­u­cate com­mu­ni­ties and busi­ness on how to struc­ture em­pow­er­ment deals.

“We plan to go to min­ing com­mu­ni­ties across the coun­try to en­cour­age peo­ple to or­gan­ise them­selves.

“We are go­ing to com­mu­ni­ties to say you have to form a struc­ture and you need to know ex­actly how your com­mu­nity is par­tic­i­pat­ing in the mine own­er­ship ” he said.

Ngubane added that he had also ap­proached fund­ing agen­cies to help new en­trants to the min­ing in­dus­try.

Black par­tic­i­pa­tion

“We are talk­ing to the Pub­lic In­vest­ment Cor­po­ra­tion and the In­dus­trial De­vel­op­ment Cor­po­ra­tion.

“We need to en­sure that there is money avail­able for black peo­ple to par­tic­i­pate in min­ing,” he said.

The as­so­ci­a­tion is be­ing es­tab­lished against the back­drop of the fall­out be­tween the Cham­ber of Mines and the gov­ern­ment over the im­ple­men­ta­tion of the char­ter, with the cham­ber plan­ning to ap­proach the court to­day to have the char­ter set aside.

The depart­ment ear­lier this month gazetted the Broad­Based Black So­cio-Eco­nomic Em­pow­er­ment Char­ter for the South African Min­ing and Min­er­als In­dus­try, 2017.

It stip­u­lates a 30 per­cent black share­hold­ing in min­ing com­pa­nies plus a cor­re­spond­ing per­cent­age of vot­ing rights from the cur­rent 26 per­cent level.

The 30 per­cent must be split three ways – 8 per­cent for com­mu­ni­ties, 8 per­cent for em­ploy­ees and 14 per­cent for black en­trepreneurs.

“We are not in­ter­ested in shady deals. We want peo­ple to un­der­stand how em­pow­er­ment deals are for­mu­lated,” he said.

“We want those who will ac­quire mines to know how they will pay back the money to fun­ders,” he added.

How­ever, Bless­ings Ramoba, a min­ing ac­tivist and founder of the Min­ing Fo­rum of South Africa, said the tim­ing of the char­ter was not right be­cause of the cur­rent eco­nomic sit­u­a­tion.

“We are not against the char­ter. It will help if we can wait for the eco­nomic cri­sis to pass be­fore it is im­ple­mented,” he said.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.