So. Africa: Minister announces revisions to mining charter to enhance black ownership; mining companies say will challenge decision in court
Author: Paul Burkhardt & Kevin Crowley, Bloomberg (USA), Published on: 18 June 2017
"Miners Drop as South Africa Escalates Black Ownership Rule", 15 June 2017
South African regulators unveiled a new mining charter to force companies to give more ownership to black shareholders, sparking a selloff across the industry...[The] Department of Mineral Resources introduced requirements that local companies must ensure 30 percent of their shareholders are black, up from a previous level of 26 percent. The mining industry has become a major target of reform in South Africa, where highly paid, mainly white male executives oversee hundreds of thousands of mostly black workers laboring in some of the world’s deepest and most dangerous operations. The government’s updated rules for so-called black economic empowerment seek to reverse the imbalances. The Chamber of Mines, which represents mining companies in South Africa, will seek to stop the mining charter in court, which may delay the regulation...Glencore Plc, Impala Platinum Holdings Ltd., South32 Ltd. and Kumba Iron Ore Ltd., which is majority owned by Anglo American, would need to sell the biggest stakes if the new charter fails to give credit for previous deals, Avior Capital Markets (Pty) Ltd. said June 1. AngloGold Ashanti Ltd. and Sibanye, the country’s two biggest gold miners, may also be affected by the new rules...