NEWS

Zwane Wants 30 Percent Black Ownership Of Mines

Sources say the mines minister wants to raise mandatory black ownership of mining assets.

26/05/2017 10:10 SAST | Updated 26/05/2017 10:32 SAST
Bloomberg via Getty Images
Mosebenzi Zwane, South Africa's mineral resources minister, speaks on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 8, 2016. With many miners battling to stay afloat, fewer are willing to shell out 1,140 pounds ($1,641) for the Investing in African Mining Indaba conference in South Africa and business-class airfare. Photographer: Waldo Swiegers/Bloomberg via Getty Images

Mining minister Mosebenzi Zwane wants to increase mandatory black ownership of mines from 26% to 30%, two sources told Fin24. The 30% could be made of up of shares held by black employees and community groups, as well as investors.

The proposal has reportedly drawn opposition some in the ruling party who fear it will further deter investment in the sector.

ANC spokesperson Zizi Kodwa could not be reached for comment by Fin24.

The proposal is reportedly part of a draft mining charter spearheaded by Zwane, which was apparently presented to the ANC's economic policy committee on May 13. On Wednesday, the Cabinet reportedly approved the new mining charter, although it remains unclear whether the ownership changes were rubberstamped or changed.

The Chamber of Mines reportedly said this week that if government is going to stop the bleeding of investors in the sector then it needs to finalise the mining charter changes. Charmane Russel, a spokesperson, told Fin24 that the chamber had not seen any changes and could not comment.

Zwane was not available for comment.

According to MoneyWeb, cabinet announced that it had approved the changes to the mining charter in a statement this week.

"Mineral resources minister Mosebenzi Zwane will provide a briefing once the charter has been gazetted," cabinet said in a statement.

The Chamber has reportedly taken government to court over certain provisions in the latest draft. The industry has complained about not being consulted enough throughout the process, according to MoneyWeb.