Mining Charter chafes Sibanye

19 April 2016 - 02:26 By Bloomberg

Sibanye, the biggest gold producer in South Africa, has criticised the planned Mining Charter, saying some aspects of the legislation are "not acceptable" in their current form.The company also slammed the government's decision to publish a draft of the charter without consultation within the industry and while court challenges to it were continuing.The government insists that mines must be at least 26% owned by black investors, even if those stakes are subsequently sold.Mining executives including Sibanye CEO Neal Froneman have argued strenuously that this will lead to existing investors' stakes being continually diluted.Mining companies have 30 days from Friday to comment on the review and Mineral Resources Minister Mosebenzi Zwane will engage with the industry to get inputs on the draft. The push for increased black ownership of the mining industry, which accounts for almost half of the country's exports, is part of an effort to address the legacy of apartheid that locked the black majority out of key industries. The charter also sets targets for companies to boost the number of black people in management and improve training and benefits for communities near mines...

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