Zuma Backs New South African Mine Rules
- Mining Charter will help transform industry, president says
- Mineral Resources Minister consulted cabinet on changes: Zuma
Miners prepare rock drilling equipment in an underground tunnel at the South Deep gold mine, operated by Gold Fields Ltd., in Westonaria, South Africa.
Photographer: Waldo Swiegers/BloombergSouth African President Jacob Zuma backed new rules to give the country’s black majority a bigger stake in the nation’s mineral wealth that the mining industry and some senior ruling party officials said they weren’t consulted about.
The June 15 release of Mining Charter by Mineral Resources Minister Mosebenzi Zwane, which raised requirement for ownership by black shareholders to 30 percent from 26 percent, triggered a selloff in mining stocks. The Chamber of Mines, which represents the biggest producers, said it will challenge the new rules in court, while Deputy President Cyril Ramaphosa called for the charter to be sent back to the drawing board. African National Congress spokesman Zizi Kodwa said the party was worried the legislation would result in job losses.