The Minerals Council South Africa "reluctantly" filed an application for the judicial review and setting aside of certain clauses of the 2018 Mining Charter, the Johannesburg-based lobby group whose members include Anglo American Plc and Impala Platinum Holdings Ltd., said in an emailed statement Wednesday.
The charter does not fully recognise the continuing consequences of previous empowerment transactions, particularly in respect of mining-right renewals and transfers of these rights," council Chief Executive Officer Roger Baxter said. "Not only does this provision in particular have a severely dampening effect on the attractiveness of mining in the eyes of investors, but it is also, in our view, a breach of the declaratory order on the matter issued by the North Gauteng High Court in April."
The High Court in Pretoria on April 4 ruled that the first two versions of the country's charter didn't require producers to top up black-shareholding levels in perpetuity if they previously met the minimum 26% requirement.
Department of Mineral Resources Minister Gwede Mantashe finalised new mining rules for the sector last year in a bid to ease mining investors' uncertainty. Among some of the rules are requirements for companies to give out 5% free-carry stakes in mining projects to communities and an additional 5% to employees.
The charter, first introduced in 2004, is aimed at distributing the benefits from mining more widely among South Africans to make up for racial discrimination during apartheid. The regulations became a point of increasing frustration for producers under Mantashe's predecessor, Mosebenzi Zwane, whose own version drew furious resistance and legal challenges from the industry.