[miningmx.com] – MINING companies may have to brace themselves for more stringent black economic empowerment requirements than the ownership targets set out in the Mining Charter.
The Department of Trade and Industry (DTI) dropped a bombshell this week when it said in a notice that broad-based empowerment and employee share ownership schemes will no longer amount to the same points as individual share ownership on the black economic empowerment (BEE) scorecard.
During a media briefing ahead of his budget speech this afternoon mines minister, Ngoako Ramatlhodi, said although he hasn’t been privy to the DTI’s statement about the BEE codes, his department will work closely with the cluster to make sure their “efforts are aligned’.
There has been much uncertainty about whether mining companies will be expected to adjust their BEE-ownership upwards to comply with the BEE-codes drafted by the DTI.
“The outcome of the review of the Mining Charter will definitely set out what else needs to done,” said Ramatlhodi.
“We’ll look at loosening and tightening some aspects. For all intents and purposes, we’d want investment, but it must be sustainable investment; in other words, it must be done in such a way that black people are taken fully into account.’
According to BDLive, the DTI published an adjustment to its BEE code such that broad-based empowerment structures and ESOPs – employee share ownership plans – “… cannot count towards the voting rights of black people or the economic interest they hold in the company, which are the other elements on the scorecard”.
A host of mining companies claim they have reached the 26% black ownership target set by the mining charter on the basis of their ESOPS or community-based structures, often held through special purpose vehicles.
Asked about progress on the contentious ‘once-empowered, always-empowered’ matter in the Mining Charter, Ramatlhodi said the state law advisors are currently considering it, but he hasn’t had any input from the Chamber of Mines on the issue.
“They seem to have no proposals on how we should go forward on this matter, but it’s early days. I’m not going to go into details.’
At the release of the interim assessment report on compliance with the Mining Charter earlier this year, Ramatlhodi said he would allow the High Court to rule on the “once-empowered, always-empowered’ principle, but the Chamber of Mines have expressed concern about the merits of resolving the ownership issue through the courts.
“We’re engaging all the parties and considering their concerns, including the National Union of Mineworkers (NUM) and the South African Mining Development Association (SAMDA).’
Other issues Ramatlhodi addressed were progress on the Mineral and Petroleum Resources Development Amendment (MPRDA) Bill, which was referred back to parliament last year, as well as the imminent release of regulations on shale gas exploration and developments on the state-owned mining company.
“The MPRDA Bill is now going to the National Council of Provinces (NCOP), the National Assembly and the House of Traditional Leaders, but we haven’t been asked to give input yet.’
The proposed regulations for shale gas exploration in South Africa will serve before cabinet’s economic committee in the next two weeks, Ramatlhodi said, and should be released publicly in a month’s time.
As for the state-owned mining company, Ramatlhodi intends for it to play a much bigger role in the South African economy.
It also received the go-ahead to be transferred from the Central Energy Fund under which it was housed, to the Department of Mineral Resources.
Ramatlhodi gave the insurance that the state-owned mining company will have the “same relative authority’ as South Africa’s state-owned enterprise.
