Title: Reviewed Broad Based Black-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2016: Publication of and invitation to comment on the Draft
Government Notice: GN 450 in GG 39933 of 15 April 2016
Date of commencement: Not yet specified

In terms of section 100 of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) the Minister of Mineral Resources had to develop a broad-based socio-economic empowerment Charter, within 6 months from the promulgation of the Act, that will set the framework for targets and time table for effecting the entry into and active participation of historically disadvantaged South Africans into the mining industry, and allow such South Africans to benefit from the exploitation of the mining and mineral resources and the beneficiation of such mineral resources. The Charter was published and this notice now proposes a revision of the existing Charter.

The reviewed Mining Charter is aligned to the provisions of the Broad -Based Black Economic Empowerment Act 53 of 2003 and introduces new definitions, terms and targets to effect alignment of the Mining Charter with the BBBEE Act and the Dti Codes. New requirements pertaining to ownership, procurement, beneficiation, employment equity, human resources development, mine community development and housing and living conditions have been included in the revised Mining Charter. Provisions related to the application of the Mining Charter to permits/ licences granted under the Precious Metals Act, 2005 and Diamonds Act, 2005, applicability of targets and transitional arrangements have also been added.

“So what” for my operation?
A mining or production right may only be granted if the grant of the right will further the objectives of the MPRDA (including, but not limited to the expansion of opportunities for historically disadvantaged persons), in accordance with the Mining Charter. The holder of a mining right, production right or mining permit must submit an annual report to the Department of Mineral Resources, detailing the extent of the holder’s compliance with the provisions of the Mining Charter. If these reports are not submitted, the holder of the right or permit is guilty of an offence and can be held liable for a fine, imprisonment or both.