Chamber of Mines applies to court to stop mining charter being implemented
The SA Chamber of Mines on Monday applied to the North Gauteng High Court for an urgent interdict to prevent the implementation of the reviewed Mining Charter.
“The Chamber of Mines today applied to the High Court of South Africa‚ Gauteng Division‚ for an urgent interdict to prevent the implementation of the Reviewed Mining Charter‚ as published by the Department of Mineral Resources (DMR) on Thursday‚ 15 June. An application to have the Reviewed Mining Charter reviewed in terms of the Promotion of Administrative Justice Act (PAJA) will follow in due course‚” the chamber said in an official statement.
In the application the chamber states that its members are fully committed to the transformational objectives of the Mineral and Petroleum Resources Act.
But the chamber is opposed to the reviewed Mining Charter which was released by Mineral Resources Minister Mosebenzi Zwane.
“They [members of the chamber] are opposed to the DMR’s Mining Charter as it attempts to subvert those objectives by the unlawful publication of instruments which purport to give effect to such objectives but in fact undermine them. It further notes that should the DMR’s charter be implemented in its current form‚ it will destroy the very industry whose survival is necessary to give effect to the objects of the MPRDA‚” the chamber said.
In the revised Charter‚ the black ownership target was upped from 26% to 30% - a requirement mining companies will need to comply with within a 12-month period.
The African National Congress expressed its unhappiness with the charter and Finance Minister Malusi Gigaba also remarked on the negative market reaction.
Gigaba said although the new charter was a "welcome step" there have been "consequences". He then urged Zwane to engage with the Chamber of Mines and unions to address concerns.
In its papers the Chamber of Mines further argues that the publication of the 2017 Charter was so obviously beyond the powers of the minister and that‚ in publishing the 2017 Charter‚ Zwane “has purported to exercise powers which reside exclusively with Parliament‚ which he has sought to usurp”.
It argued that the charter is “so confusing and confused‚ and so contradictory in its core provisions‚ that not only are the mining companies who are supposedly obliged to comply with the 2017 Charter perplexed as to what they are required to do‚ but legal experts themselves are confused and find themselves unable to provide clear advice to their mining and investment clients as to the meaning and effect of the 2017 Charter”.
The chamber concluded that the charter “represents a most egregious case of regulatory overreach. The act of publication was and is harmful not only because of the content of the 2017 Charter‚ and the vague and contradictory language employed to convey that content‚ but also because of the clear threat to the separation of powers which that act presents”.