Mining Charter: Anglo American enters the fray

Publishing the draft review of SA’s Mining Charter without proper consultation was “premature”, according to Anglo American.

Johannesburg - Anglo American on Thursday added its voice to the raging debate in the mining industry about the clause in the draft review of the Mining Charter that seeks to ensure that the country’s mines have 26-percent black ownership at all times.

The global mining company said publishing the draft review of the Mining Charter without proper consultation was “premature”.

Read: Mining Charter: NUM backs ownership element

“Anglo American views the decision to publish the draft review prior to seeking input from the mining industry as premature. Furthermore, the retrospective application of the draft Charter to our existing mining rights is subject to the same principles as the application brought by the Chamber of Mines, which is currently before the North Gauteng High Court (Pretoria),” a statement issued by the mine said.

The gazetted reviewed Broad-based Black Economic Empowerment Charter for the South African mining and minerals industry published for comment by the Department of Mineral Resources (DMR) last week has drawn widespread criticism from mining companies, some trade unions and the Chamber of Mines.

Trade union Solidarity on Wednesday denounced the Charter, saying its could mean devastating consequences for the ailing mining industry.

The South African Chamber of Mines expressed surprise at the publication of the new Charter, saying “it was not a tripartite draft that included industry and labour”.

But the National Union of Mineworkers welcomed it, saying it was in line with section 100 of the Minerals and Petroleum Resources Development Act (MPRDA).

Anglo American said the current draft review of the Charter represented “solely the view of the DMR and needed to be “comprehensively reconsidered” to ensure that South Africa could once again be a preferred investment destination for the mining industry.

“Anglo American will further study the draft revision of the Charter and work closely with industry peers and the Chamber of Mines to engage with the DMR in order that we work towards supporting recovery, investment and growth in the mining industry to benefit all stakeholders.”

Anglo American, which is undergoing some restructuring, efficiency and cost reduction, released its first quarter production figures, which reflected that its share price dropped almost four percent as the industry was hit by plunging commodity prices.

Mineral Resources Minister, Mosebenzi Zwane, has since announced that he would hold a two-day meeting with mining bosses to discuss the new draft Charter.

ANA