JOHANNESBURG (miningweekly.com) – There are certain aspects embedded in the draft Mining Charter that conflict with the Employment Equity Act (EEA), trade union Solidarity general secretary Gideon du Plessis said on Wednesday.
Following a post-consultation process presentation to the Department of Mineral Resources, he said the charter proposed “unrealistic” employment equity targets and the implementation of quotas was inconsistent with the EEA.
“Realistically, it means a mining house could lose its mining licence due to noncompliance with the charter, especially due to the prescribed 26% black ownership that applies at all times,” Du Plessis explained.
Further, in addition to a lack of information on sustainability, occupational health and safety plans, the charter also emerged at a time when about 30 000 miners faced retrenchment.
“The timing of the implementation of the charter is bad, as the mining sector is already heavily burdened by external and internal factors landing many mines in a struggle for survival,” he said.
Solidarity raised concern that the adoption of the charter could bring about regulatory uncertainties and financial implications of taxing 1% on the turnover and 5% on the payroll of companies and international suppliers.
“The mining sector’s focus should now be on the implementation of the Mining Phakisa’s outputs and the guidelines contained in the National Development Plan, thereby helping the sector to grow and to create jobs for the benefit of all in South Africa,” Du Plessis concluded.