Cape Town – A team from the Departments of Mineral Resources, Trade and Industry and National Treasury has been tasked to try to resolve the deadlock in the mining industry, following the release of the third Mining Charter in June, said Finance Minister Malusi Gigaba.
Addressing journalists at a media conference ahead of the tabling of his mini budget, Gigaba said the impasse in the mining sector needs to be resolved urgently.
“The slow progress (with legislative certainty) and poor cooperation has given rise to lack of trust between stakeholders and policy contestation that has compromised the economy and confidence in the mining industry.”
Gigaba said he was also concerned that mining’s contribution to gross domestic product declined in the second quarter of 2017. “We must therefore find a solution for the impasse and try and resolve the deadlock with the Chamber of Mines.
“Government and business must find common ground on the Mining Charter and we’re eager to get all parties back to the negotiating table to find a solution,” Gigaba said.
In June 2017, Mines Minister Mosebenzi Zwane gazetted the third revision of the Mining Charter, introducing onerous new regulations such as upping black shareholding from 26% to 30%, which sent shock waves through the mining sector.
Mining stocks lost over R50bn in market value, hours after the document was gazetted.
Shortly thereafter, the Chamber of Mines filed an urgent court application to have the new charter interdicted, but has since withdrawn it following an undertaking from Zwane not to implement the charter before December this year.
The content of the third revision of the Mining Charter will be the subject of a hearing in the North Gauteng High Court on December 13 and 14.
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