The announcement by Minister of Mineral Resources, Ngoako Ramatlhodi, that he intends referring the Mining Charter to court for an interpretation will do nothing to help the mining industry recover.

Already reeling from poor trading conditions and legislative uncertainty, the mining industry is seeing declines in both confidence and investment. In the last quarter of last year 14,000 miners lost their jobs. Minister Ramatlhodi’s disclosure of the government's assessment of the mining industry's compliance with the Charter – for the period 2004 to 2014 – was a chance for the government to provide relief that has now been squandered, and rampant job losses will likely continue.

A recovery in mining would also assist South Africa’s perennially struggling balance of payments.

What the Minister should rather have done is accepted the principle of ‘once empowered, always empowered’. This would have led to an affirmation of the successes of the mining industry and the importance of the jobs, tax and foreign exchange it brings. This success should always trump the empowerment of a close knit and politically connected elite.

No doubt some within the industry will be relieved that Minister Ramatlhodi chose not to bludgeon the industry but has rather turned to the courts to settle matters. That is just a reflection of a beaten dog of an industry that is grateful not to be beaten again.

The minister had the opportunity to send out a signal to the mining industry and potential mining investors that the South African government was serious about helping mining to flourish.

That he has not done so is a great pity and will be to the country’s detriment in terms of economic growth and job creation.

 

Issued by DA