We are just slowing down the (black) empowerment that we want to achieve, says the country’s mines minister.
This is a difficult one. Clinging onto licenses for resources does give a government a lot of power and control but it also scares off investors.
Diamond and uranium producer Namibia may scrap requirements for black ownership in the mining sector as it seeks to woo investors to an industry that is rebounding with the commodities cycle, its new mines minister said on Tuesday.
Regional peers such as Angola and Zimbabwe are also trying to kickstart their mining sectors by easing investment rules at a time when other African countries such as DRC are embracing resource nationalism and hiking taxes and royalties.
“I am not going to withdraw them (black ownership requirements) unilaterally, obviously we first have to discuss and see if they are really serving the purpose of why they exist. If the answer is, they don’t, then maybe we should change,” Mines Minister Tom Alweendo told Reuters.
“To give exploration licences to many people who won’t add value, I think we are just slowing down the (black) empowerment that we want to achieve at the end of the day,” he said.
Under the current policy, there must be a minimum 20% representation of historically disadvantaged, or black Namibians, in the management structure of a company that applies for an exploration licence.
As per Moneyweb
South Africa is not deterred by this. You may have heard that the Chamber won a certain court case about topping up ownership. Old incomprehensible Mantashe is appealing it. Policy certainty - he's just taking a leaf from bolshie bob. Here are the two perspectives. Firstly the rancid capitalists
The appeal will add a layer of uncertainty to a sector battered for years by depressed prices, soaring costs and opaque policies, and which had hoped that new mines minister Gwede Mantashe would quickly act to improve the investment climate.
Earlier in April a high court ruled in favour of a Chamber of Mines’ challenge to a government regulation which specifies that a black ownership target of 26% must be maintained throughout the life of the mine.
The ruling, in the form of a declaratory order, means mining companies in the world’s top platinum producer need only to make the 26% threshold once, and do not need to top up again if black shareholders decide to sell their stake.
The industry has said it cannot afford to continually top up its black ownership levels as such shares are often offered at a discount in complicated and costly transactions. Mining accounts for about 8% of South Africa‘s GDP and is an important source of export revenue.
And then there is the DMR that is still struggling under the zwane yoke. If in doubt claim that any investment is inherently anti-transformation
In a statement, the mines department said the judgement would hurt the policy of “economic transformation” – changing the ownership structure of the economy that was controlled by the white minority under apartheid. In a statement, the mines department said the judgement would hurt the policy of “economic transformation” – changing the ownership structure of the economy that was controlled by the white minority under apartheid.
The department said it had already approached the Supreme Court of Appeal (SCA).
“The judgement has dire implications for the economic transformation imperatives of the Constitution, the mining sector and South Africa at large. It further has the potential of extending regulatory and policy uncertainty,” the department said.
Love the reference to ownership structure because that's all that matters.
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