It has emerged that South Africa’s new mining charter has triggered a R50 billion loss in the country’s mining sector.
Several dissatisfactions have been expressed concerning the new mining charter which stipulated amongst other things, that a new mining right must have 30 percent black persons’ shareholding.
We have reported that the Democratic Alliance (DA) party rejected the 2017 Mining Charter as a proof that the ANC government does not care about long-term and sustainable transformation in the mining sector.
Similarly, FW de Klerk Foundation asserted that South Africa is on a “slippery slope” if the new mining charter is an example of Radical Economic Transformation.
According to the foundation, after the 2017 Mining Charter circulated, the shares of mining companies on Friday, fell by an average of more than 5%.
“Some assess that as much as R50 billion was wiped off their market value,” wailed the foundation.
Pledging its support for the government’s move to empower black South Africans, the Foundation referred to Mosebenzi Zwane’s (the Mineral Resources Minister) involvement in the exposed shady dealings of the Guptas and wondered who the real intended beneficiaries of the new mining charter are.
“Frankly, we are concerned that a Minister who is criminally liable and possibly dishonest, has the audacity to make such profound changes to one of the key economic pillars of the country when the country is economically in dire straits.
“We cannot but suspect that he is serving the interest of the captors of SA Inc in the name of transformation. Apparently, the ANC, who have requested an urgent meeting with Minister Zwane, have the same concern,” stated the foundation.
While the Minister insisted that the new mining charter is a good thing for the country, his party summoned him to answers some questions about the new charter.
It was reported that the ANC is very concerned about the impact the charter could have in terms of employment.
For now, it’s known that the ruling party cited that the mining sector lost 60 000 jobs over the last five years, and as such, upheld that the new charter must not lead to further jobs bloodbath.