Chamber of Mines answers Minister Zwane

The Chamber of Mines on Friday served a replying affidavit in the high court in Pretoria in response of Minister Mosebenzi Zwane’s earlier one in an interdict application against the implementation of the Reviewed Mining Charter.

“The chamber notes that the minister’s response does not deal with the matter at hand – that is‚ the shortcomings of DMR’s [Department of Mineral Resources] Reviewed Charter. Instead‚ the minister focused on trying to undermine the credibility of the industry’s transformation journey.

“The chamber reiterates its continued commitment to real transformation‚ implemented with due regard to what is achievable‚ bearing in mind the realities of the situation the industry faces.

“The unilateral development and implementation of the DMR’s Reviewed Charter would not serve the interests of South Africa and its people. It is aimed at benefiting a select few‚ will destroy investment‚ lead to further job losses and will cause irreparable damage to the mining industry‚” the Chamber of Mines said.

In its affidavit the chamber addresses the charter’s profound effect on the mining industry and the absence of guidelines and the lack of engagement when compared to the previous charters published in 2004 and 2010.

“This was not the case this time. The chamber and its members have therefore been denied their right to a fair administrative procedure guaranteed by Section 3 of the Promotion of Administrative Justice Act (PAJA) as read with Section 33 of the Constitution. The chamber is therefore seeking that the implementation of the DMR’s Reviewed Mining Charter be interdicted‚ pending the hearing in due course of the chamber’s judicial review application to be instituted soon thereafter. The review application will seek to have the Reviewed Charter set aside as invalid and unlawful‚” the chamber said.

The chamber also disputes the department’s assertion that the charter is law.

“The fact that the charter is enabled by the MPRDA [Mineral and Petroleum Resources Development Act] does not mean that it is a law on its own. The charter does not operate outside the provisions of the MPRDA as a standalone law of general application‚ which can confer obligations on rights holders and which can supplement or amend the MPRDA and even override other legislation‚” it said.

Zwane recently introduced the Reviewed Mining Charter and it received criticism from the sector - and even the African National Congress itself.

The ANC expressed its unhappiness with the charter and Finance Minister Malusi Gigaba remarked on the negative market reaction.

Gigaba said although the new charter is a "welcome step"‚ there have been "consequences".

He then urged Zwane to continue discussions with the Chamber of Mines and unions to address their concerns.

The interdict application will be heard on September 14 and 15.