South African Minister Wants Empowerment For Individual Mines

In a move that will likely complicate South Africa’s black empowerment agenda as well as worrying many miners, Minister of Minerals and Energy said mining companies should sign empowerment deals for individual mines rather than for holding companies.

“Even if you have six mines we would want you to have six partners,” said the Minister, Phumzile Mlambo-Ngcuka in a blunt statement of intentions.

In a move aimed at reassuring firms that have already signed black empowerment deals at holding company level, however, she said her ministry would assess the other elements of the company's application for mineral rights conversion.

Miners must present a wide-ranging empowerment plan to the Ministry of Minerals and Energy in order to convert their mining rights.

Mlambo-Ngcuka also said miners should institute share schemes for workers since this would aid firms in complying with the mining charter's condition for widely-based share ownership.

Mlambo-Ngcuka cautioned miners that paying lip service to the training and development of staff and community development would find that it "reflects badly on your scorecards". The scorecard includes share ownership, employment equity, training, hostels to homes and affirmative procurement.

“You cannot do a little garden behind someone's house [and expect recognition]. Companies need to work together in the same communities and pool your resources to maximize your investment.”

“If our communities are exactly where they are [now] in 20 to 30 years, history will judge us very harshly.”

Of the empowerment deals carried out since 2002, 46 percent were in the resources sector, which she said she welcomed, but decried the fact there were “hardly any significant benefits for women in that equity”.

“More than 50 percent of black people are women. How do you miss them? When the time comes for conversion we will have to talk if you have not bumped into any women.”