South Africa’s Mining minister, Mosebenzi Zwane, has proposed raising the mandatory black ownership of mining resources to 30% from 26%, a decision which has raised fears that it might scare off investors.
Coming after the downgrading of the country by rating agencies, the he timing of the proposal’s announcement has been criticised by both some senior members of the ruling party, as well as the Chamber of Mines, the voice of big mining players.
The proposa to increase black ownership targetl is part of a long-delayed draft mining charter.
Metals and minerals account for about half of South Africa’s exports, with the country holding the biggest reserves of platinum, chrome and manganese. In 2010, Citigroup valued the mineral wealth at $2.5trn, the most of any nation. Mining companies including Anglo American, Glencore and AngloGold Ashanti operate in the country.