Cape Town - The mining industry is "sleeping on the job” and not addressing the real issues of transformation resulting in the forces in favour of nationalisation gaining momentum “every day”, mining magnate Bridgette Radebe warned on Thursday.
Addressing the Cape Town Press Club on the need to end transfer pricing and non-compliance of the mining charter - including the 26% ownership requirement to favour previous disadvantaged groups - Radebe said the Economic Freedom Fighters led by nationalisation fighter Julius Malema are on the march in the mining resource belt in North West, Limpopo and Mpumalanga.
This is because the mining industry has failed to achieve the 26% target. Instead, Radebe said less than 4% of mine resource ownership is in the hands of blacks, white women and other historically disadvantaged groups.
She said mining companies have failed to effectively procure their services from South African small businesses, despite available subsidies. A recent meeting of the presidential group formed after the Marikana tragedy was characterised by the absence of the captains of the mining industry. Instead, she said, the big mining companies sent more junior leaders to this meeting.
She said the listing of mining companies in foreign capitals including London, Sydney and New York distances these companies from the workers on the ground.
Transfer pricing has resulted in the lack of profit for local companies to provide adequate housing. It also slashes the living allowances of workers who tend to stay in informal settlements, said Radebe, who is president of the South African Mining Development Association, a black mining body which was established to rival the white-dominated Chamber of Mines.
Radebe said the mining charter requires a minimum effective 26% in each of the 49 listed companies. "If all the Top 49 listed mining companies had 26% HDSA (historically disadvantaged South African) ownership of R2.574trn, the value would have been R669bn HDSA participation in 2014."
She said to date the historically disadvantaged South African ownership is R63.9bn, "which is equivalent to 2.49%".
- Fin24
Addressing the Cape Town Press Club on the need to end transfer pricing and non-compliance of the mining charter - including the 26% ownership requirement to favour previous disadvantaged groups - Radebe said the Economic Freedom Fighters led by nationalisation fighter Julius Malema are on the march in the mining resource belt in North West, Limpopo and Mpumalanga.
This is because the mining industry has failed to achieve the 26% target. Instead, Radebe said less than 4% of mine resource ownership is in the hands of blacks, white women and other historically disadvantaged groups.
She said mining companies have failed to effectively procure their services from South African small businesses, despite available subsidies. A recent meeting of the presidential group formed after the Marikana tragedy was characterised by the absence of the captains of the mining industry. Instead, she said, the big mining companies sent more junior leaders to this meeting.
She said the listing of mining companies in foreign capitals including London, Sydney and New York distances these companies from the workers on the ground.
Transfer pricing has resulted in the lack of profit for local companies to provide adequate housing. It also slashes the living allowances of workers who tend to stay in informal settlements, said Radebe, who is president of the South African Mining Development Association, a black mining body which was established to rival the white-dominated Chamber of Mines.
Radebe said the mining charter requires a minimum effective 26% in each of the 49 listed companies. "If all the Top 49 listed mining companies had 26% HDSA (historically disadvantaged South African) ownership of R2.574trn, the value would have been R669bn HDSA participation in 2014."
She said to date the historically disadvantaged South African ownership is R63.9bn, "which is equivalent to 2.49%".
- Fin24