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South African Miners Say Free Carry Will Kill New Projects

  • Companies compelled to give workers and communities 5% each
  • New rules may be hurdle to financing new mining projects
Operations At Anglo American Plc's Kumba Iron Ore Ltd. Sishen Mine
Photographer: Waldo Swiegers/Bloomberg
Updated on

The biggest threat posed by South Africa’s new Mining Charter may be to mines that haven’t been dug yet.

The draft rules, published Friday by Mineral Resources Minister Gwede Mantashe, lay out several requirements for new mining rights, including that nearby communities and employees each get a 5 percent free-carried interest in either the asset or the company that owns it. The charter is aimed at distributing the industry’s wealth more widely among South Africans to make up for racial discrimination during apartheid.