Economic Empowerment

The Mineral and Petroleum Resource Development Act of 2002 (the "New Act") came into full force and effect in May 2004 in South Africa, with a 1-year transition period ending in May 2005.  The new act replaced existing legislation regarding mineral tenure and mining rights.

The Empowerment Charter, or Mining Charter, is a companion document to the New Act and sets out some of the policies surrounding the practices and vision for the South African mineral industry moving forward, especially regarding the integration of Historically Disadvantaged South Africans ("HDSA") into mining.  The New Act aims to redress inequality in the past and mandates real change for the South African people.

The New Act

South Africa historically had characterized mineral rights as private property, unlike the Canadian or Australian systems which require activity on mineral claims to prevent their reversion to the government.  

The New Act changed this system and effectively “unlocked” mineral holdings that had sat unreachable for long periods of time, whether because of fragmented family inheritances or inactivity by owners.

This has created a far more active mineral exploration environment and these previously unworkable mineral rights are being consolidated into workable packages which can be optioned or acquired by new entrants in the mineral business.