Minister Gwede Mantashe drops 'once empowered always empowered' appeal

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South Africa’s mining sector, which is the world’s biggest producer of chrome ore and accounts for around 70% of global mined platinum supply, has been battered by opaque policies, rising costs and lackluster foreign investment.

The high court ruled in 2018 in favor the Minerals Council challenge to a government regulation which specified that a black ownership target of 26%, under the first two charters in place since 2004, must be maintained throughout the life of the mine.

The ruling, in the form of a declaratory order, means mining companies in the world’s top platinum producer need only to make the 26% threshold once, and do not need to top up again if black shareholders decide to sell their stake. But the mines minister Gwede Mantashe appealed the ruling arguing that judgment would hurt economic transformation which is aimed at changing the ownership structure of the economy that was controlled by the white minority under apartheid.

Twenty-six years after the end of white minority rule, white people still control much of the economy despite accounting for around 8% of the population. The Minerals Council said the latest decision would not impact a judicial review of the 2018 mining charter, which raised the black ownership level to 30%, that was currently in court.

 

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