DARREN SCHUETTLER, Johannesburg | Thursday
THE South African government may consider legislation to speed up affirmative action and black empowerment in the country’s white-dominated mining industry, a senior mines ministry official said this week.
Some analysts and labour leaders say black empowerment in South Africa has stalled and only a well-defined government programme can save it from collapse.
Counting all “black chip” investment on the local stock exchange, the country’s black majority now controls just 5.3% of the local bourse, down from 9.6% in 1998.
“If the calls that we keep making to companies…continue to fall on deaf ears, we will have no alternative and we will use the only instrument in the hands of the state, that is legislation,” said Sandile Nogxina, director general at the department of minerals and energy.
Nogxina was speaking at a media briefing where Harmony Gold announced the sale of a 10% stake to black empowerment group Komanani for R400m.
Komanani – a group of small mining firms, womens’ groups and veteran anti-apartheid fighters – will be the largest single shareholder in the country’s third biggest gold producer.
Nogxina’s comments come at a time of increasing tension between South Africa’s big mining companies and the government over its proposed overhaul of the country’s mining laws.
The draft bill would vest mineral rights in the state, and stop companies from hoarding rights by introducing a “use it or lose it” policy.
One of its aims is to remove barriers to blacks in an industry dominated by whites for a century. But companies say black empowerment and job creation would be undermined by the bill’s failure to provide a secure operating environment.
But some mining company officials said legislating for black empowerment would be unworkable.
Chamber of Mines Chief Executive Zoli Diliza last week tried to deflect criticism that his members were resisting change.
“We accept that the status quo must and will change,” Diliza told investors in London. “We also want the change to be managed in a way that does not undermine the industry’s asset base and … does not damage South Africa’s standing with investors.” – Reuters
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