The proposed new broad-based black economic-empowerment Mining Charter could mean devastating consequences for the ailing mining industry, believes trade union Solidarity, which strongly denounced the draft charter in a statement on Wednesday.
The proposed draft, which was discussed in Parliament on Tuesday during Mineral Resources Minister Mosebenzi Zwane’s budget speech, was gazetted and released for public comment by the Department of Mineral Resources (DMR) last week.
The new charter’s proposed black representation levels and lack of focus on sustainability and occupational health and safety were among the concerns listed by Solidarity general secretary Gideon du Plessis.
Du Plessis was particularly worried about the timing of the new proposed charter, considering the prevailing “retrenchment bloodbath” in the mining industry.
“The DMR is attempting to enforce the charter amid trade unions’ and other players’ struggle to save thousands of jobs in the industry. [It] should rather make an effort to create a more favourable investment environment as opposed to trying to push through a draft charter that will have the opposite effect,” said Du Plessis.
He noted that the provision in the new charter proposing that black representation levels needed to be as high as 88% was inflexible and unrealistic. “Although the principle of empowerment is understandable, those unrealistic targets would, in reality, be to the detriment of the entire mining industry. Moreover, companies would have to poach employees and managers from each other as the demand for skilled workers exceeds what the training system can produce,” said Du Plessis.
He maintained that any provision in the charter whereby mines could lose their mining licences if they did not adhere to the charter, was of particular concern.
“The mines are already locked into a struggle for survival and the fact that they now risk losing their mining licences due to noncompliance with the charter will mean that international and local investors will no longer fund capital projects. Mines will also be reluctant to embark on any new development and exploration projects. This will prevent the creation of new jobs while existing jobs in the industry could be lost,” said Du Plessis.
He added that, in the new amended charter, the absence of the previous charter’s focus on sustainability and occupational health and safety was disappointing. “This sends a message that transformation has become more important than the sustainability of the mining sector and the safety of workers,” he said.
Further, Du Plessis warned that the new charter had the potential for numerous court actions owing to unconstitutional, illegal and unfair clauses. “The only sensible way forward is that the charter, as in the case of the previous charter, should be rewritten through comprehensive consultations between stakeholders to avoid litigation. The latter will also create the climate and opportunity for the Chamber [of Mines] and the DMR to iron out their differences regarding [the concept of] ‘once empowered, always empowered’,” he said.
Du Plessis welcomed the DMR’s invitation to Solidarity – extended in the run-up to the budget debate in Parliament – to share its concerns regarding the proposed charter with them as soon as possible.