(MnG) Mining charter has not achieved aims, says minister
Mining charter has not achieved aims, says ministerPRETORIA, SOUTH AFRICA Sep 13 2010 12:31
A review of the mining charter had revealed that targets set down for the transforming mining industry in 2004 have not been achieved, Minerals Resources Minister Susan Shabangu said on Monday.
Speaking in Pretoria, Shabangu said that despite the charter, mining assets ownership had remained relatively unchanged, with only 8,9% falling under black economic empowerment (BEE) ownership.
The 2004 charter required companies to sell 15% of their South African assets to black investors by the end of 2009, and 26% by 2014.
The purpose of the charter was to set the framework, targets and timetables for the implementation of the government's transformation policies through its power to regulate and grant prospecting and mining rights.
Shabangu said that the review also revealed that white women and men still dominated management and technical positions. She said that white people continued to earn more than their black counterparts, who had the same skills and experience.
Disappointed
National Union of Mineworkers president Senzeni Zokwana was disappointed with the results.
Nchakha Moloi, chairperson of the South African Mining Development Association, was also disappointed with the results and called on the government to start fining companies that did not achieve the charter's aims.
The new charter aims to see that a minimum 26% of mining assets are BEE owned by 2014.
It also aims to ensure that mining companies procure a minimum 40% of capital goods from BEE entities. At least 70% of services and 50% of consumer goods should be obtained from BEE entities by 2014.
Mineral resources director Sandile Nogxina said that companies that were found not to comply with the charter could face penalties that could even include the revoking of a mining company's licence.
He said that a lack of commitment by mining companies to transformation as well as problems with financing BEE ownership had contributed to the ownership targets not being achieved.
He said that before 2014, BEE ownership targets would not increase, but did not rule out increasing targets after 2014. He said he was not prepared to speculate on BEE ownership targets after 2014. -- Sapa
Labels: BEE, MINING, NATIONALISATION, SUSAN SHABANGU
posted by MrK @ 7:19 PM
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