Industry in renewed battle over mining charter

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The minerals council, which represents around 90% of South Africa’s mineral production, is taking the 2018 mining charter on judicial review over provisions in the policy that it says remain “untenable” it announced in a statement on Wednesday morning.

The minerals council is taking the 2018 mining charter on judicial review over provisions in the policy that it says remain “untenable” it announced in a press statement on Wednesday morning.

Key to the application are provisions in the charter which the industry argues do not fully recognise previous empowerment transactions, particularly regarding mining right renewals and transfers. But the provisions in the charter that do not fully recognise “the continuing consequences of previous empowerment transactions, particularly in respect of mining right renewals and transfers of these rights, remains untenable,” Baxter said, adding that it would severely dampen the attractiveness of mining to investors.

Under the 2018 mining charter, a mining right holder that has met the 26% ownership target prior to the charter’s commencement is viewed as compliant — even if its empowerment partner has exited the deal. However this so-called “recognition of continuing consequences” does not extend to the renewal of the mining right or when ownership of the right is transferred.

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