South Africa unveiled its new mining charter on June 15, triggering an immediate drop in the stock of mining companies focused on South Africa and in the value of the rand, reports the netmagazine worldview
The document includes notable changes such as the increase of black ownership requirements for mines from 26 to 30 percent.
More important, the new minimum applies regardless of whether black investors have divested shares. According to the government, mining companies have a year to comply with the new rules.
Nevertheless, the Chamber of Mines — the top lobbying bloc for mining companies in South Africa — has vowed to challenge the charter in court, likely setting up a lengthy legal fight as the battle for South Africa's most profitable sector continues.
