Black peoples’ control of South Africa's mining industry in the post-apartheid South Africa

Abstract

The Broad Based Black Economic Empowerment Charter (Mining Charter 1) of 2002 called for Black people – referred to as Historically Disadvantaged South African (HDSAs) – to own 26 percent of the value of equity and mine assets and achieve 40 percent (including 10 percent for women) representation on the higher-level management to control decision making in mining companies. This article seeks to contribute to the debate on HDSAs’ control of mining companies by looking at representation in higher-level management. The findings indicate that HDSAs were well represented in companies that they have majority shareholding despite control being lost due to indebtedness. There was no HDSAs representation in many foreign and white owned companies. Sellers of mining assets use separate companies to house HDSAs, low voting shares and set conditions in concluding BEE deals. Long job tenures, long time in climbing the ladder to higher-level management positions and preference for small sized boards are among factors that limit HDSAs’ control. This article argues that HDSAs’ control depends on the increase in equity and mine assets acquisitions. It recommends that policy makers concentrate on helping HIDSAs acquire more equity and mine assets in order to gain more representation.