Cape Town – South Africa will publish its revised Mining Charter next month, Minister of Mineral Resources, Mosebenzi Zwane, said on Monday.
Zwane said in a speech at the opening of a mining summit in Cape Town that the government had consulted extensively with stakeholders on the matter.
He said a separate Mineral and Petroleum Resources Development Act would be finalised by June, proposing to give the state a 20 per cent free stake in new energy projects and the ability to buy further shares.
The Charter is meant to bring closer legislation meant to redress racial economic inequality amidst companies’ concerns over lower commodity prices.
The Mining Charter was introduced in 2002 to increase black ownership of the mining industry, which accounts for around seven per cent of South Africa’s economic output.
However, the Chamber of Mines, which represents most of the industry, has threatened to take the government to court over the latest draft.
The draft requires companies to keep black ownership at 26 per cent, even if black shareholders sell their stakes.
The new charter, which was revised in 2010, also requires companies to provide housing and other amenities in mining communities, many of which are mired in poverty and neglect.
Mining companies say they were not consulted in the latest draft but Zwane denied this and sought to reassure investors.
“We call upon investors to come to South Africa and engage us frankly as we move towards transformation of our economy. We will continue to have an open door policy,” he said.
With the rise of the radical left wing Economic Freedom Fighters party, the ruling African National Congress is under increasing pressure to address gaping inequality that persists 23 years after the end of apartheid.
Black South Africans make up 80 per cent of the 54 million population, yet most of the economy in terms of ownership of land and companies, remains in the hands of the white.
The White accounts for around eight per cent of the population.
South Africa is the world’s top platinum producer and has a significant gold industry but firms are struggling with depressed prices, rising costs and bouts of labour unrest.