Zwane’s Mining Charter a plan for more state capture and ANC enrichment
The release of the Mining Charter today is proof that the ANC government does not care about long-term and sustainable transformation in the mining sector. Version 3 of the Mining Charter will be a disaster for the mining industry.
In presenting his new rules, which amount to a massive giveaway of mine value to the ANC’s favoured groups, Minister Zwane has opened the doors to more ANC crony enrichment.
The DA supports share schemes for miners when they are structured to benefit the workers and are economically viable. One way of diversifying the mining sector would be to bring mine workers into mining schemes. It’s pointless to try and diversify if it leads to the collapse of companies.
But this is not what the ANC government is proposing. Instead, the ANC government’s Mining Charter proposal wants to make cronies and insiders richer, as they open up new opportunities to get in on mining deals. We have seen the devastating impact of how connected cronies, like the Guptas, prey on deals like this and how they facilitate capture of resources.
The reality is that only 8% of ownership will ever make it into the hands of mineworkers under Zwane’s proposal.