November 18, 2017

5 possible repercussions of South Africa’s controversial Mining Charter

The Mining Charter was published today and Webber Wentzel talks on potential next steps that the industry can expect according to Jonathan Veeran, a Partner at the firm:

  1. General Litigation and Arbitral Proceedings
  • Court processes to challenge the validity of the Mining Charter III from an administrative and constitutional law perspective; and
  • Potential claims under bilateral investment treaties based on a breach of South Africa’s core investment protection obligations.
  1. Corporate structuring to facilitate compliance with Mining Charter III’s ownership requirements
  • Potential restructuring of black economic empowerment deals to ensure compliance with the additional HDSA ownership and “mandated structures” regime imposed by the Mining Charter III;
  • Potential restructuring of Employee Share Ownership Schemes and Community Trusts to comply with ownership elements;
  • Implementation of schemes under which new entrants into the mining sector would comply with HDSA ownership requirements under Mining Charter III.
  1. Human Resources Development and Employment Equity 
  • Revision of Human Resources Policies as well as Social and Labour Plans to ensure compliance with Human Resources Development and Employment Equity elements;
    Potential restructuring of Employee Share Ownership Schemes to comply with ownership elements; and Careful planning of negotiations with organised labour at Chamber of Mines (central) level and mine levels to meet new expectations regarding ownership, recruitment and housing and living conditions; and 
  • Revision of hazard identification and risk assessments relating to job categories and requirements to ensure that person with disabilities can be accommodated, revision of Codes of Practice, policies and training including an assessment of emergency procedures and protocols where persons with disabilities may need different / additional assistance in the event of an emergency.
  1. Mine Community Development and Housing & Living Conditions
  • Development of alternative schemes to comply with Mine Community Development element and Housing and Living Conditions elements.
  1. Procurement processes
  • Review of terms and conditions of agreements and work orders to ensure that the provisions of section 21 of the MHSA are properly considered and indemnities obtained where necessary.

For a detailed breakdown, please visit:

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