The Chamber of Mines has filed another application in the North Gauteng High court on Tuesday to have a judicial review and setting aside of the ‘Reviewed BBBEE Charter for the South African Mining and Minerals Industry 2016.
According to the founding affidavit, the revised Mining Charter released by Mineral Resources Minister, Mosebenzi Zwane on 15 June 2017 is unconstitutional in that it usurps the functions of the legislature thus offending against the separation of powers, which is entrenched as part of the rule of law.
“The chamber submits that the Minister has far exceeded his powers under section 100(2) and in effect, seeks to legislate through the backdoor by way of the 2017 Charter,” the the affidavit reads.
The Chamber noted that the revised Charter has, and continues to have, a “disastrous effect” on the mining industry, and has unsettled not only investors but the working environment of employees.
“The shock induced in all role players within the mining industry, including financial commentators, has been so profound that an amount in excess of R50 billion was wiped off the market of shares in listed mining companies,” said the affidavit.
According to the Chamber, it is this instability caused by the revision of an unjust Charter that has caused a lot of anxiety in the industry and economy, such that, ratings agency Moody’s also characterise the Charter as “credit negative.
Click here to read the full Notice of Motion and Founding Affidavit