Summary

On 21 September 2021, a full bench of the Gauteng High Court delivered a unanimous and strong judgment declaring that the Broad-based Socio-economic Empowerment Charter for the Mining and Metals Industry, 2018 (Mining Charter III or the Charter) is simply policy and not legislation or subordinate legislation – as long contended by the Department of Mineral Resources and Energy (DMRE). The Court consequently set aside a number of Mining Charter III’s key provisions. These include the re-empowerment obligations which the Charter purported to impose on existing mining right holders when they wish to renew or transfer their rights, the Charter’s onerous procurement, supplier and enterprise development targets, as well as some of its penalty and enforcement clauses.

Read the full brief here.


For more information, please contact Peter Leon, Patrick Leyden and Ernst Muller or your usual Herbert Smith Freehills contact:

Peter Leon
Peter Leon
Partner and Chair of Africa Practice Group, Johannesburg
+27 83 250 9781
Patrick Leyden
Patrick Leyden
Partner, Johannesburg
+27 83 766 4677
Ernst Muller
Ernst Muller
Senior Associate, Johannesburg
+27 64 753 3376