JOHANNESBURG (miningweekly.com) – Few of the JSE’s Top 25 mining companies were “anywhere close” to achieving the target of 26% black ownership by 2014, a new survey revealed on Thursday.
A review of black economic-empowerment (BEE) and ownership in the mining industry, which was undertaken by KIO Advisory Services on behalf of the South African Mining Development Association, had shown that South Africa’s mines have achieved limited transformation of their ownership structures.
The gross value of black shareholding amounted to 5,27% of the total R1,8-trillion market capitalisation of the Top 25 mining companies, as at the end of March 31, 2010.
The Department of Mineral Resources had set a target of achieving 15% black ownership by 2009 and 26% by 2014.
“The report was unable to determine the net value in the hands of black shareholders for most transactions. However, we can confidently assert that very few of the mining companies are anywhere close to achieving the 26% net value target that was set by the Department of Mineral Resources,” commented KIO Advisory Services founder Duma Gqubule.
Of the five subsectors, the gold-mining sector had fared the worst, followed by platinum-group metals.
The coal sector had, however, fared the best in terms of black ownership.
“The lesson is clear. There is public sector leverage in the coal sector where Eskom, the largest buyer, has stringent BEE policies. But the gold and platinum mines sell their product to international markets,” said Gqubule.
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