The new Mining Charter will require holders of mining rights to have a black ownership level of at least 30% within five years.
Minerals Resources Minister Gwede Mantashe says the charter will be gazetted on Thursday.
Mantashe says a formal submission has been sent to Parliament to withdraw the Mineral and Petroleum Resources Development Amendment Act.
He says the release of the Mining Charter is the result of consensus of all stakeholders. The revised charter proposes that existing mining rights holder to maintain their BEE status in the event their black partners exit from the deal.
According to the Charter, the recognition will be applicable for the duration of the license, and will require that the holder must have at least 26% BEE shareholding.
The new Mining Charter has conserved the controversial clause that would compel mining companies to give host communities 5% stake in their business for free.
Mantashe released the latest version of the Mining Charter in Pretoria after seven months of intense negotiations with various stakeholders. The minister says allocated stake will be financed internally by mines.
The charter has also kept the requirement of a minimum of 30% BEE for a new mining license.
“A new mining right granted after the new mining charter 2018 must have a minimum of 30% BEE distributed as follows; a min of 5% for employees, minimum of 5% to host communities in equity or equity equivalent benefits,” says Mantashe.
In terms of the Charter, mining companies could also raise their BEE status by allocating 20% stake to black entrepreneurs, increase the number of senior and middle management by 60% and by procuring 70% of all goods from BEE entities.
Mantashe says government will ensure strict compliance to the new Charter. He says mining companies will be required to submit compliance report annually.
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Reactions to new Mining Charter