EMPOWERMENT EMPHASIS The Mining Charter stipulates that historically disadvantaged South Africans must have a 26% share in mining companies
Photo by: Duane Daws
Mineral Resources Minister Ngoako Ramatlhodi says the findings of the Department of Mineral Resources (DMR) audit of all South African mining companies regarding compliance with the Mining Charter will be released next month.
Ramatlhodi was speaking at a media briefing in Tshwane late last month.
The DMR commissioned auditing firm Moloto Solutions to conduct the audit in July 2014. The final audit report was initially touted by the DMR to be completed by December 2014.
A top priority on the charter’s transformation list, which mining companies were meant to have complied with by May 1, 2014, is that historically disadvantaged South Africans must have a 26% share in mining companies.
The charter also places significant emphasis on compliance with employment, social, community and labour obligations.
Ramatlhodi has repeatedly stated that his department would not compromise its compliance expectations and emphasised that “measures” – including the revocation of mining licences and the imposition of stiff fines – would be taken against companies that failed to comply with the charter after the audit had been completed.
Additionally, he said during the media briefing that there was an “urgent need” for finality to be reached with regard to the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill.
President Jacob Zuma referred the Bill back to the National Assembly last month.
The President took this action as he was of the view that the Bill, which was passed by Parliament last year and referred to him for assent and signing into law, would not have passed constitutional scrutiny.
Ramatlhodi added during the press briefing that the DMR was interacting with the relevant Parliamentary committees to provide new inputs in terms of what the department believed needed to be done to ensure that the new draft of the Bill would be constitutionally compliant.
“In my discussion with the industry players, they were all in agreement that it is important that oil and gas should be separated from traditional [hard rock] minerals in terms of legislation,” he stated.
Ramatlhodi emphasised that time was of the essence and government would have to move fast, as “the world is not waiting for South Africa [to get its legislation in order]”
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“This is of particular importance owing to the current challenging global economic situation. [Government] must ensure that certainty is quickly provided for investors and industry stakeholders to attract investment and thereby create many job opportunities that are desperately required to alleviate unemployment numbers.”
However, although the process must be completed swiftly, he cautioned that it should not be done in “a haphazard fashion” that would result in more criticisms and ultimately additional delays.
“I hope that, through the consultation process, all the mining industry’s stakeholders will be able to meaningfully assist Parliament in fast-tracking this process,” Ramatlhodi stressed.
The Minister added that he was optimistic that an MPRDA Act as well as a separate Oil and Gas Act could be enacted as early as June.
However, Ramatlhodi highlighted that he was not responsible for the passing of these laws, as this was a Parliament-run process, but concluded that he remained hopeful that this ambitious timeline could be achieved.