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Renegotiation of Mining Charter is crucial for economy: Analyst

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Economist George Glynos says the renegotiation of the Mining Charter is crucial for South Africa’s economy.

His statement comes after the Chamber of Mines confirmed that it had agreed to postpone its court application challenging the Reviewed Mining Charter, after meeting with President Cyril Ramaphosa.

The application was due to be heard in the High Court in Pretoria on Monday.

The Presidency and the Chamber of Mines have approached the seven other applicants, as well as two friends of the court, the National Union of Mineworkers and Trade Union Solidarity, to encourage them to similarly postpone their applications.

Glynos has described the postponement as good news for the markets.

“It’s good to see that some action is being taken and very swiftly at that and one hopes that we can sort out this impasse once and for all and to allow mining sector to do what it does best, something I think financial markets will be pleased about. Mining stocks are likely to respond favourably to this, the rand as well. The Mining Charter as it stood was unworkable.”

Senior executive at the Chamber of Mines Tebello Chabana says they want to renegotiate a new mining charter from scratch.

“It was really the SONA address that did it for us. The President coming up strongly to say that we need a new mining charter and it needs to be negotiated amongst the various stakeholders, labour, industry, government and communities. We want to start the negotiation process that’s why we decided to put it on hold, so the parties are going to go to court today essentially to argue that this matter is postponed hopefully the other parties – the co applicants, the friends of the court also agree that it is in everybody’s best interests to put this matter on hold,” says Chabana.

 

 

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