Duma Gqubule is a highly respected analyst in the business world. I know that Kevin Lester has a great deal of respect for him. He wrote a recent article in the Business Day on the mining charter. It's the last two paragraphs that are the most interesting.
There are two solutions for Shabangu, according to one industry insider. She can cancel the new-order mining rights and start a process of re-issuing them with strict conditions. Or she can renegotiate terms with existing new-order mining rights holders. The latter option would require the government to establish the infrastructure to conduct a deal-by-deal analysis of funding instruments to determine net value currently in the hands of black shareholders and persuade companies to renegotiate terms and commit to new vesting targets and dates.
But a focus on “narrow BEE” will not fly this year. We need a new model of BEE that is linked to broader economic development objectives. If we are to have such a debate, we will realise that high interest rates, an appreciating currency and a timid approach to industrial policy prevented the country from reaping its own “Norwegian dividend”.
This is not the first time I have read this sentiment - but this is the first time I have read this from this man. Shabangu should consider this carefully
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