Mining Charter 2018 Released

Department of Mineral Resources

The Mining Charter 2018 has been released.

In a statement, the mineral resources department described the release of the Charter as the “culmination of seven months of intensive engagements with stakeholders in the industry; that includes mining companies, investors, mining communities, labour, financial institutions, the legal fraternity and, ultimately, the Cabinet”.

The department pointed out that the elements of ownership and mine community development are ring-fenced and require absolute compliance at all times.

In terms of ownership, an “existing mining right holder who achieved a minimum of 26% -including a right holder whose BEE partner has since exited - is recognised as compliant for the duration of the right”.

The recognition cannot be transferred to a new owner in the case of a transfer or sale.

Existing rights holders will be expected to increase their minimum BBBEE shareholding to 30% within five years.

New mining rights following the coming into force of the revised Charter must have a minimum of 30% BEE shareholding, applicable for the duration of the mining right.

A minimum of 5% non-transferable carried interest rights must go to qualifying employees, while another 5% must go to host communities.

As regards promoting Research and Development (R&D) capabilities, a mining right holder must spend a minimum of 70% of its total R&D budget on South African based entities, public or private.

Mining rights holders will also be expected to submit a Housing and Living Conditions Plan to the department for approval.

The department also confirmed that the mineral resources minister, Gwede Mantashe, had submitted a formal request to parliament for the Mineral and Petroleum Resources Development Amendment Bill to be withdrawn from parliament.

A separate legislative framework for oil and gas will be developed.

Sabinet Cape Town Office