Johannesburg -The Gauteng High Court, Pretoria, has ruled that certain aspects of the Mining Charter 2018 are not enforceable and once a mining company is empowered, it is always empowered.
The court said the continuing consequences of previous black empowerment deals should be recognised and that the specific challenged provisions in the document should be removed.
Responding to the ruling, Minerals Councils South Africa said yesterday it and its members remained fully committed to the transformational objectives of the Mineral and Petroleum Resources Development Act (MPRDA).
It added that the objectives must create policy and regulatory certainty for long term investment and inclusive growth in the sector.
“The judgment removes the clauses dealing with the renewals of existing mining rights and the transfers of mining rights, compelling companies to top up their BEE shareholdings to the 2018 Charter levels, which would have the effect of diluting shareholders and stifling investment in the sector,” the council said.
In 2018, Department of Mineral Resources Minister Gwede Mantashe finalised new mining rules for the sector to ease mining investors’ uncertainty through the charter.
The rules included requirements for companies to give out 5% free-carry stakes in mining projects to communities and an additional 5% to employees.
