News flash
- South Africa’s Minister of Mineral and Petroleum Resources, Mr Gwede Mantashe, has amended clauses in the draft Mineral Resources Development Bill (MRDP) relating to Broad Based Black Economic Empowerment requirements for exploration companies.
The clause stipulating compliance with the broad-based socio-economic empowerment prescribed elements has been removed. Many exploration companies see BBBEE requirements as an added risk and expense to an already risky business.
There are many other contentious clauses in the draft MRDP. In a short statement, the Minerals Council South Africa (MCSA) noted the gazetting of two corrections to the Draft Mineral Resources Development Bill. “The Bill in its current form does not encourage or sustain the growth and investment that the mining industry needs to realise its full potential to create employment, stimulate the economy and fulfil its social mandate.” said the MCSA.
The draft MRPD is open for public comments until August 13, 2025.
BBBEE (Broad-based Black Economic Empowerment) in South Africa is a policy framework that aims to address the economic inequalities created by apartheid by promoting economic participation and business ownership among previously disadvantaged groups, particularly black South Africans. It’s primarily driven by the Broad-Based Black Economic Empowerment Act 53 of 2003.
BBBEE has come under heavy criticism for only enriching a group of elites and politically connected individuals. It is alleged that these so-called “political capitalists” never started a genuine business or managed one, and often set up companies simply to secure state contracts or resource licences and BEE shares in the private sector.
Author: Bryan Groenendaal
