Watershed court showdown looms for mining sector - Business Day

Four major companies — Anglo American Platinum, AngloGold Ashanti, Gold Fields, and Sibanye-Stillwater — would fall below the 26% black ownership target if the department’s view was adopted, Chamber of Mines CEO Roger Baxter said.

If mining companies do not meet their ownership targets, their mining rights could be threatened. Companies have argued that they have created wealth for empowerment partners who sold out their shareholdings and that the companies and their shareholders should not be penalised for that. The department has argued there was a deep-seated concern that if companies were not perpetually 26% black-held, then ownership of the industry could revert to white ownership only and not be transformed.

The importance of establishing the principle could not be understated, said the chamber’s Elize Strydom, who is helping manage the legal challenges.

According to the latest figures from 28 major South African mining companies representing 70% of the industry’s production and 67% of employees, black ownership levels stood at 39% if the "once empowered always empowered" principle was applied. The new charter specifies 30% black ownership and makes clear past deals do not count and companies must perpetually maintain that ownership level.

seccombea@bdfm.co.za