Business, Mining, South Africa

The 2017 Mining Charter, 50% black representation on Board level

The 2017 Mining Charter commands 50% black representation on the board level

The 2017 Mining Charter requires at-least 50% black representation on Board Level, 25% of which must be black females; at an executive/top management level.

“Holders who have maintained a 30% black shareholding will not be required to restructure their shareholding,” Mineral Resources Minister Mosebenzi Zwane said.

Addressing a media briefing in Pretoria on Thursday, Minister Zwane said the 30% ownership requirement also applies to holders who claim historical Black Economic Empowerment (BEE) transactions.

“A historical BEE transaction is recognised for the reporting period but such holders are required to top up their shareholding to the minimum requirement of black shareholding within 12 months of the charter coming into force.

“On Employment Equity, the charter aims to ensure that black representation at the various levels of employment is representative of the demographics of the country,” Minister Zwane said.

The requirements are at board level a minimum of 50% black representation, 25% of which must be black females; at an executive/top management level, a minimum of 50% black representation, 25% of which must be female black representation, and at senior management level, a minimum of 60% representation, 30% of which must be female black representation.

The requirement at middle management level is a minimum of 75% black representation, 38% of which must be female black representation and at junior management level, a minimum of 88% black representation, 44% of which must be female black representation.

“On the Human Resource Development element, a holder must invest 5% of the leviable amount on essential skills development.

“We cannot ignore the fact that effective implementation of this charter is key if we are to see meaningful change.

“As the custodian of the nation’s minerals, government, through the Department of Mineral Resources, has a duty to ensure that it stewards the country’s minerals in a manner that benefits all South Africans,” Minister Zwane said.

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