New Mining Charter needs to be rational, concise: Leon

Peter Leon, partner, Herbert Smith Freehills

A NEGOTIATED Mining Charter for South Africa’s mining sector ought to be unambiguous and set realistic targets as well as respect security of tenure, said Peter Leon, an attorney for Herbert Smith Freehills.

“It is to President Ramaphosa’s credit that he has intervened so decisively within days of assuming office to resolve this long running impasse between government and industry,” said Leon in a statement today.

He also identified specific items that Mining Charter should reflect including the quality that it should “… reflect an overarching social compact between government, labour, business and communities rather than a top down form of executive lawmaking”.

In addition, a new Mining Charter should “… be clear, concise and unambiguous … contain realistic and achievable timeframes for the implementation of any new requirement … [and] … in relation to existing mining rights, fully recognise historic empowerment transactions for the duration of such rights”.

“Security of tenure is of paramount importance to mining companies and investors given the capital intensive nature of mining and the long lead times between exploration and production,” said Leon.