Anger over new SA mining laws - Mining Journal (subscription)

The South African Chamber of Mines has warned of dire consequences from the government’s new mining legislation.

The details announced so far include new procurement rules, an increase from 0.5% to 1% of a revenue levy to go to a new mining development agency, and another 1% levy over two-and-a-half years to go to social and labour plans. 

The chamber’s frustration in the South African media this week largely focused on the reform process. 

CEO Roger Baxter told Business Day the new legislation should have been negotiated with the industry like the previous rules. 

“Given that the mining companies are the actual implementers of the charter, it will be difficult to accede to an outcome based on a flawed process and a Department of Mineral Resources that does not want to take on board the substantive issues that the industry is concerned about," he said. 

Black economic empowerment quotas will also change. 

As presented to a parliamentary committee, senior management must be 60% black, boards 50%, middle and junior management 80% and 88% respectively. 

The chamber called the targets overall “currently unachievable”.