Resolute Mining says it will pay Mali $160 million in tax dispute
The company’s shares in Sydney were suspended on Thursday, after tumbling 40% since news of the detention of CEO Terry Holohan.
The Chamber of Mines in the Johannesburg CBD (Image courtesy of CM).
South Africa’s Chamber of Mines has reacted to a government’s decision to publish Thursday data showing that much of the industry has failed to meet empowerment targets outlined in the 2004 Mining Charter, saying the document turns a blind eye to progress made so far.
“All that we are asking for is a fair reflection of the significant progress the industry has made on the transformation front since the Mining Charter was developed,” said Mike Teke, president of the chamber, according to Bloomberg.
The Mining Charter requires all mining companies operating in the country to sell 26% of their assets to black South Africans as a way to narrow economic disparities created by the apartheid system. The deadline to comply was December 2014.
While the Department of Mineral Resources data shows that just over 20% of mining companies had met the black economic empowerment criteria, the chamber chief executive, Roger Baxter, claims the sector has already “met and exceeded” the required target.
Another point of contention is whether a company that has previously sold stakes to black investors, but now stakes are back in white people’s hands meets the black-ownership rules. This issue will be resolved in courts.
3 Comments
Gary
The problem with mining in a country which is controlled by a corrupt, inept government is that you are always behind the 8 ball as the goalposts will continually be changing to suit their needs
Marius Welthagen
Marius – The solution to complying with the B-BBEE codes in mining is as suggested by some in AMCU to buy the mining companies with state assistance thereby acquiring the the productive means to compensate the newly empowered stakeholders at a maximum wage and top management at a reasonable wage
Reasonata
Shameful charter. Black empowerment is nothing but a ruse to give preferential gains to a black elite. Worse still discourages investment to promote the economy that has never seen more than 2% growth since Mandela took over 20years ago.
Creation of wealth through increased production is the surest way of redressing the imbalances of the past .Just why Africa feels like rewriting history is beyond me. We’re not the only race subjected to colonialism everyone was including our colonial masters.African growth has been hijacked by an insensitive black elite …