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Cape Town - The Black Business Council (BBC) on Monday lauded the draft amended Mining Charter's firm stance on the obligation of mining companies to cut down on debt incurred by their employees by means of garnishee orders.
In a statement welcoming the Draft Amended Mining Charter 2016, the BBC pointed out that it places explicit obligations on mining companies and their suppliers to reduce the amount of emolument attachment orders (so-called garnishee orders) of its employees and contract workers which may have been obtained by less than acceptable practices.
The draft Mining Charter also sends out a clear message to significantly improve the housing and living conditions of employees and contract employees, said the BBC.
Mines Minister Mosebenzi Zwane's call for wider public participation on the Mining Charter is an opportunity for the mining industry and society as a whole to look at innovative ways for inclusive growth in the sector, said the BBC.
“The revised charter looks set to advance the beneficiation of SA’s mineral commodities and to promote greater opportunities for black people to enter the mining and minerals industry.
“Reducing inequality, fostering local job creation, local procurement, ensuring that society and the mining industry reflects the racial and gender demographics of South African society is at the heart of the proposed draft amended Mining Charter,” said the BBC's CEO Mohale Ralebitso.
Among developments welcomed by the BBC is the ownership credit in respect of beneficiation. This stipulates that if beneficiation declines, the mining company will lose its credits and will have to comply with the requirements of the draft Mining Charter.
The BBC urges stakeholders to use the opportunity to comment on the amendments and ensure that the final document "remains firm in its articulation of the imperatives for transformation and economic growth", said Ralebitso.
Zwane's publication of the draft charter for public comments gives interested and affected parties until Thursday May 31 to submit written inputs and comments. However, the minister indicated on Friday that consultations could be extended following opposition by mining companies who say it will impose unfair conditions on black ownership.
READ: Mining empowerment bill shouldn't scare investors
The new draft of the Mining Charter says companies must be at least 26% black-owned at all times, even if some of the black shareholders choose to sell out, in an ongoing effort to redress the imbalances of white apartheid rule.
Mining companies argue that after they have complied with the 26% black empowerment rule, it should not be their responsibility to continually monitor the balance of ownership.
"Should it be necessary for us to go beyond 30 days that call will be made as the necessity arises," Zwane told a business briefing. "Rather than us complaining about time, let's engage."
Zwane said there is no need for investors to be spooked by the bill as the process would be transparent and inclusive.
