The Minerals Council SA says there are elements of the draft Mining Charter that undermine the competitiveness of the mining industry.
The document is aimed at distributing mineral wealth equally.
Mineral Resources Minister Gwede Mantashe says the draft is a product of widespread consultation between all sectors.
Mantashe says mining companies giving shares to workers and those who live around their mines should not see it as a burden.
“It is not a cost but an investment to commit your workers to be part of the company by giving them shares.”
The Minerals Council, formally known as the Chamber of Mines, says it does not have no problem with the 30% black ownership target envisioned in the Mining Charter.
The council says it is not satisfied with the new draft as it stands. Spokesperson Charmane Russell says they are not opposed to giving back to workers, but they’re concerned about the impact on competitiveness for mining companies.
“Without competitiveness, investment in mining will be limited and the current mining sector will continue to decline to the detriment of all citizens.”
Russell adds: “The Minerals Council urges the DMR (Department of Mineral Resources) and other stakeholders to take on board the significant need to improve competitiveness in the industry to ensure investment and growth.”
The department says it is still open for consultation on the matter and Russel says they will make their views heard. Russell says the Council will continue engaging government and will participate in a summit planned for 7 July.
The public now has until the 27 July to weigh in on the draft Mining Charter.