ABN - South Africa’s Minister of Mineral Resources Mosebenzi Zwane has defended new regulations regarding black ownership of mining companies.
Zwane released the government’s revised Mining Charter on Thursday, which outlined an increase on the minimum threshold for black ownership of mining companies.
The threshold will be raised from 26% to 30% as the government looks to bolster black ownership in the industry. Mining and resource companies have been given 12 months to meet the target.
However, the Chamber of Mines, a representative body for the nation’s mining firms, said it would challenge the new regulation in court, claiming there had been little consultation in drawing up the rule.
“We have given due consideration to the submissions made and we will not be held ransom to those views that seek to derail transformation in the minerals sector,” said Zwane.
“Should this happen, we are hopeful that the judiciary, recognising the separation of powers doctrine, does not usurp the role of the executive in exercising its power.”