SOUTH African president, Cyril Ramaphosa, said the country had “cleared the decks” in terms of policy uncertainty and declared that the redrafted Mining Charter would set the country’s mining sector on a path to growth.
Presenting the much-anticipated presentation of his government’s stimulus package aimed at repointing the country’s economy – and which made much of the need for public-private partnership, especially on implementation on the plan – Ramaphosa said it was “… imperative to restore investment in mining and exploration” as it provided “… significant potential to drive long term growth”.
However, his comments were brief and kept investors guessing as to how this would be achieved through the Mining Charter, although he did refer to a need to not just attract new investors, but have existing investors reinvest in the economy, such as in mining.
“We are banking more and more on local investors; those re-investing in their own economy such as the mining sector,” he said. Ramaphosa added that a planned investment conference later this year had to make a statement that: “We have cleared the decks on the policy side. South Africa is open to investment. Let’s start talking about how you can invest and create jobs”.
Commenting on the redrafted Mining Charter specifically, which Cabinet adopted on September 19, Ramaphosa said: “Following extensive consultation involving communities, industry, labour and government structures, Cabinet approved the revised mining charter which will revitalise the mining industry and provide certainty to investors whilst also charting a sustainable path to transformation and an inclusive mining industry”.
Ramaphosa also confirmed that amendments to the Minerals & Petroleum Resources Development Act (MPRDA) would be abandoned. “Parliament will also be requested not to proceed with MPRDA (amendments) which has contributed to a lot of uncertainty in the sector. There will be separate legislation for the regulation of the oil and gas industries. This will be drafted through a process and good proposals will be brought forward,” he said.
While the contentious demand for a 5% free-carry in mining companies for employees is to be retained, the proposed 5% free-carry for communities will be ditched provided mining companies spend that amount in their own community development efforts. The extent to which this dovetails with existing labour and social plans as set down in previous Charters is yet to be discovered, hence the need for detail.
