SA Govt agrees to test mining charter in court

[miningmx.com] – SOUTH Africa mines minister, Ngoako Ramatlhodi, is today expected to announce that the country’s mining industry has failed to completely comply with black economic empowerment (BEE) targets as set down in the 2004 mining charter.

However, in a demonstration of compromise, the minister has agreed to have certain judgements made by the Department of Mineral Resources (DMR) jointly tested in a court of adjudication.

The main issue at stake that could change the way the department looks at BEE is recognition of continuing circumstances or once-empowered, always-empowered as it is generally known.

In its audit of mining charter compliance, the DMR has not recognised transactions after 2004 where the empowerment entity no longer exists such as Mvelaphanda Resources, once a listed company but which was closed.

The audit update will therefore not end the uncertainty related to whether South African mining companies meet BEE laws, but rather prolong it in an effort to ultimately get final decisions.

“In a way, this could be quite positive because the minister has agreed to allow the courts to take away some the discretion handed to him in the mining charter,” an industry source told Miningmx.

“The question is what will happen if the courts decide to allow the once-empowered, always-empowered principle. Will the minister then make new decisions on a case-by-case basis?” he said.