South Africa has raised the minimum threshold for black ownership of mining companies to 30 per cent from 26 per cent, Mines Minister, Mosebenzi Zwane said on Thursday.
Zwane said in Pretoria that, the government had not decided if firms must retain that structure permanently and companies had 12 months to meet the new 30 per cent target.
The rand fell 2 per cent after Zwane unveiled details of the revisions while the Johannesburg bourse’s Mining Index extended its decline to more than 3 per cent.
Mining companies in the world’s top platinum producer have complained about a lack of consultation over revisions to an industry charter which sets targets for black ownership and participation.
They said, onerous rules would hurt investment.
The Mining Charter was introduced in 2002 to increase black ownership of the mining industry, which accounts for about 7 per cent of South Africa’s economic output.
The Chamber of Mines, an industry body, has taken the government to court over the interpretation of the ownership rules.
The government has said companies must keep to black ownership targets even if black shareholders sell their stakes.
The Chamber of Mines, which represents companies such as Anglo American and Sibanye Gold, did not take part in the launch because of what it said was a lack of consultation in drawing up the charter.