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Mining Charter III empowers women, implementation uncertain

MMATIKI APHIRI With Africa’s rich resources, mining will continue to be central to the growth of most African economies

CRUCIAL COPPER As the world evolves towards electric vehicles, the importance of cobalt and copper to the global battery industry will be a strong driver of mining investment in Africa

25th January 2019

By: Jessica Oosthuizen

Creamer Media Reporter

     

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Although the Mining Charter III has made great strides in empowering women, it remains to be seen how well these measures will be implemented, says law firm Cliffe Dekker Hofmeyr corporate and commercial director Mmatiki Aphiri.

“The charter now has several provisions specifically catering for women, which is some improvement,” she tells Mining Weekly.

The charter provides that a minimum of 30% broad-based black economic-empowerment (BBBEE) shareholding must be distributed to a minimum of 20% effective ownership in the form of shares to a BBBEE entrepreneur, 5% of which must preferably be for women.

The employment equity provisions of the charter require certain percentages of women representation on the board, and at executive-, senior-, middle- and junior-management levels.

In addition to provisions that mining right holders have to comply with, there are minimum requirements for women empowerment in the procurement of goods and services by such holders.

“These measures ensure that women are given a much-needed platform to participate in this industry that has historically been and continues to be dominated by males at various levels,” Aphiri advances.

However, she points out that women in the mining sector still face several challenges, and a 2015/16 survey involving 2 856 women revealed that the two most critical challenges that women in the South African mining sector faced were a lack of career progression and discrimination in decision-making.

“The new provisions can potentially mitigate these two challenges,” she notes.

According to Minerals Council South Africa, the number of women working in the mining sector has increased significantly in the past 15 years, from about 11 400 in 2002 to about 53 000 in 2015, increasing to 53 179 in 2017, she advances.

Further, women represent 12% of the mining labour force of 464 667, women employees occupy 14.9% of top management positions, 15.9% of senior management positions, 18% of skilled technical professionals and 18% of professionally qualified and middle-management positions.

“While much progress has been achieved in the past 15 years, it still remains to be seen whether the empowerment provisions of the charter will increase the level of women participation and growth in the sector.”

Mining in Africa
Aphiri says that, with Africa’s rich resources, mining will continue to be central to the growth of most African economies and that countries offering stability and a degree of political and regulatory certainty are likely to benefit the most.

She mentions that countries such as Botswana, Namibia and Ghana have developed legislative regimes cognisant of the industry’s long investment cycles while complementing national development goals that are likely to attract global interest.

Moreover, as the world evolves towards electric vehicles, the importance of cobalt and copper to the global battery industry will be a strong driver of mining investment in Africa. She believes that it is likely that there will be significant new activity related to these commodities in Zambia and the Democratic Republic of Congo.

Further, Minerals Council South Africa has indicated that the local mining sector requires a regulatory and legislative environment that is stable, predictable and competitive to create a successful industry.

“The move by Mineral Resources Minister Gwede Mantashe to withdraw the Mineral and Petroleum Resources Development Act Amendment Bill is most welcomed, as it allays concerns and uncertainty regarding the legal framework of the industry,” Aphiri comments.

Cliffe Dekker Hofmeyr will attend the Investing in African Mining Indaba to connect with industry players and dealmakers, participate in dialogue regarding shared learnings and opportunities, and showcase Cliffe Dekker Hofmeyr’s offering to the industry, says Cliffe Dekker Hofmeyr corporate and commercial director Giada Masina.

The Indaba will be held at the Cape Town International Convention Centre from February 4 to 7.

The company is looking forward to improved dialogue between Mantashe and industry stakeholders and the increased participation of women on the agenda, she concludes.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

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