A charter for chaos
And the release of South Africa’s new mining charter has not got the miners clapping in the aisles. More than R50bn was wiped off the valuations of mining stocks on the Johannesburg Stock Exchange when mineral resources minister Mosebenzi Zwane announced a new code that demands companies increase their Black Economic Empowerment (BEE) levels from 24% to 30% within 12 months. It also says that any new prospecting needs to have black ownership at 50% plus one share. Foreign investors are now warning of an exodus from South Africa.