"Mining Charter unclear on benefits for mining-affected communities"

The new draft Mining Charter, gazetted last week by Mineral Resources Minister Gwede Mantashe, makes a number of changes relating to mine community development...The requirement that 8% of the 30% black economic empowerment shareholding for new mining rights must be distributed to host communities in the form of a community trust remains, as does the requirement that a further 8% shareholding be distributed to employees. Both of these distributions must take place within five years of a mining right being granted. It is not clear how these 8% distributions will be calculated, as many host community members are also employees. In addition, there is no explanation of how community trusts are to be managed as the previous draft’s intention to introduce a mining transformation and development agency to manage community trusts has been excised....

Mines are to continue contributing to the socioeconomic development of host communities via social and labour plans (SLPs), which, in a long overdue move, must now be made public. The charter removes the provision that this contribution must be "proportionate to the size of the investment". While this is a welcome development due to the vague nature of this commitment, the revised charter fails to replace it with any meaningful guidance, simply noting that "SLP guidelines shall be reviewed to provide clear targets and timelines for implementation". The lack of clarity in this charter in relation to mine community development is unlikely to appease community members, who feel they are not adequately compensated for hosting mines.