The Minerals Council is fully supportive of and committed to meaningful transformation and growth in the mining industry. We see meaningful transformation as a national imperative.
The Minerals Council believes that transformation should be implemented with due regard to what is achievable, bearing in mind the realities of the industry itself, and the environment and context it finds itself in and with due regard, too, to the environment and context of other stakeholders.
The Minerals Council believes that, as the primary instrument for driving transformation in the mining sector, the new Mining Charter should have been designed and agreed by all directly affected stakeholders with an outcome that all stakeholders support and which they can defend.
The Department of Mineral Resources (DMR) has failed in this regard. There has been no visible demonstration of the DMR’s commitment to engage genuinely and seriously with stakeholders. Neither has it provided substantive supporting arguments for many of the revised targets in the Charter.
The Minerals Council believes that it would have been in the best interests of the industry, employees, communities, investors and South Africans at large if the DMR had opted to engage on the basis of an outcome that advances transformation with the intention of achieving progressive and realistic targets over a period of time.
In its current form, the DMR’s charter will jeopardise the viability of an industry that is already under significant economic pressure, an industry that contributes significantly to transformation, and an industry that contributes overwhelmingly to the economy of South Africa.