South Africa's 122 year old Gold miner to back off from new mining license

SOUTH AFRICA June 29 2017 3:29 PM
CAPE TOWN (Scrap Register): One of South Africa's oldest Gold producer DRD Gold, which is about 122 year old is not planning to apply for the mining license because of the Mining Charter 3, as per Niel Pretorius CEO DRD Gold.

"We will not be applying for mining licences in this country any more because of the new mining rules. We do have mining licences to last us for 10 to 15 years, but there won't be any more applications," Niel Pretorius stated.

The new Mining Charter states that the South African government is looking forward for a new standards, which includes 50 percent black membership in the boardroom, up to 1 percent of turnover to be paid in dividends to the 30 percent black shareholding, before other shareholders are paid, 70percent black ownership for suppliers, when it comes to procurement, and 50 percent and additional one share for the securing of prospecting rights.

DRD Gold believes that the 70% black ownership requirement may be against GATT international trade rules. The Chamber of Mines plans to challenge Mining Charter 3 in the North Gauteng High Court in July in a bid to obtain an interdict before getting the amendments to the mining codes set aside.