n Annual Survey of South African Law - Mining law

Volume 2010, Issue 1
  • ISSN : 0376-4605



In implementation of the 2010 Mining Summit, which was held in March 2010, and of a Stakeholders' Declaration on Strategy for the Sustainable Growth and Meaningful Transformation of South Africa's Mining Industry, which was signed in June 2010, the Minister of Mineral Resources published an amendment of the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry in terms of section 100(2)() of the Mineral and Petroleum Resources Development Act 28 of 2002 ('MPRDA'). The amendment is effective as of 13 September 2010 (GN 838 33573 of 20 September 2010). Although the ownership requirement of 26 per cent participation by historically disadvantaged South Africans ('HDSAs') by 2014 has been retained, details and the quantification of, and target dates for, other requirements have been improved. These improvements include the setting of percentages for procurement from empowerment entities by 2014; percentages for contributions to a social development fund from 2010; a maximum set-off of eleven per cent of the value of local beneficiation against ownership requirements by HDSAs; the setting of percentages of participation by HDSAs over all management levels by 2014; the setting of percentages (ranging from three per cent for 2010 to five per cent for 2014) of annual payroll to be invested in skills development; devising home ownership options for all mine employees by 2014; and improvement of environmental management, health and safety performance, and research and development. Paragraph 3 of the amendment states that noncompliance with the provisions of the Charter will render the mining company in breach of the MPRDA and subject to the provisions of section 47 (Minister's power to suspend or cancel rights, permits or permissions) read with sections 98 and 99 (offences and penalties) of the MPRDA.

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