Mineral Resources Minister Mosebenzi Zwane was sidelined in talks between President Cyril Ramaphosa and the Chamber of Mines to open talks around the Mining Charter and to postpone a court case to review and set aside the document.
This is the clearest indication yet that Zwane, who is tainted with allegations of improper behaviour related to the Gupta family, will not continue in his controversial position in the mineral resources ministry under Ramaphosa’s presidency.
Statements were issued by the Presidency and the chamber on Sunday regarding the agreed postponement of the court case and agreement between the industry body and the Department of Mineral Resources for the delay.
"I am certain we will be able to resolve the current impasse and agree on a charter that both accelerates transformation and grows this vital sector of our economy," Ramaphosa said.
There have not yet been any cabinet changes by Ramaphosa, who was sworn in as president last Thursday
Ramaphosa, one of the founders of the National Union of Mineworkers and a powerful former secretary-general, is well acquainted with the mining industry and has twice spoken about the urgent need for regulatory certainty to attract investment and transform the sector in a sustainable way.
His comments at the World Economic Forum at Davos and more recently in his maiden state of the nation address on Friday preceded a weekend meeting called by Ramaphosa and his team to talk with chamber officials.
The culmination of those talks was an agreement by the chamber and the department to postpone the three-day court case starting on Monday to give talks a chance to draft a new charter.
Chamber CEO Roger Baxter has made it explicitly clear the industry body would not engage directly with Zwane, in whom the industry had lost faith, because of his lack of engagement around the third version of the charter and allegations hanging over him.
"This intervention by the Presidency immediately after the state of the nation address sends a very strong message that he takes this industry very seriously indeed," Tebello Chabana, head of transformation at the chamber, said on Sunday.
"The Presidency took the lead in these discussions," he said, adding the chamber had not raised its problems with Zwane during the talks. "The removal of minister Zwane is not the primary issue for us. We want to start a process with all stakeholders, including other departments and nongovernmental groups, including communities, to come up with something new," Chabana said.
The department did not respond to e-mails or phone calls about the meeting or postponement of the court case.
The mining sector was rattled by the June 2017 gazetting of the charter, which placed onerous conditions on mines, deepening the insecurity investors felt about SA where regulatory uncertainty has long been a feature and has curtailed growth.
Zwane has defended the charter as a tangible expression of radical economic transformation based on broad consultations with more than 60 parties over 18 months.
Baxter has said the charter included none of the chamber’s proposals and did not take heed of its issues of concern.
The weekend’s developments are a major step forward as Baxter had said the chamber would continue its court challenge as long as the suspended charter was not withdrawn.
Zwane has been linked to the Gupta family, which used its close relationship with former president Jacob Zuma to enrich itself from state organs.
These allegations — as yet unproven in court — prompted the chamber to refuse to deal with him directly.
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