MCSA welcomes Mantashe’s decision to drop legal appeal on black ownership
Last year, the High Court in Pretoria ruled in favour of the council and recognised the continuing consequences associated with BEE transactions in the mining industry.
JOHANNESBURG - The Minerals Council South Africa (MCSA) on Wednesday said Minister Gwede Mantashe’s decision to drop a legal appeal on the black ownership threshold would allow more investment in the country’s mining sector.
Last year, the High Court in Pretoria ruled in favour of the council and recognised the continuing consequences associated with black economic empowerment transactions in the mining industry.
Mining companies now need to make a 26% threshold once and do not need to top up again if black shareholders decide to sell their stake.
Mining firms have over the years complained about a lack of consultation on revisions to an industry charter that sets targets for black ownership and participation in the country’s powerful mining sector.
The council has always argued that the changing of policy in the sector would stave off international investment, which would potentially benefit the country’s economy.
Mantashe had appealed the High Court ruling, saying it would hurt economic transformation.
But the mining council’s Charmane Russell said they were not opposed to transformation.
“Because this will enable greater regulatory certainty in investors in the mining sector.”
The decision effectively puts to rest an issue that has been disputed between the council and government for some time.