I was rather surprised to come across a letter from the Department of Mineral Resources and Energy (DMRE) addressed to one of my clients. The letter outlined a requirement for my client to adjust their current ownership percentage from 26% to the Mining Charter III 30 dispensation. As the BBEE partner, my client currently holds 26% of the shares. The new stipulation would necessitate a reduction to 20%, with 5% being sold to employees and another 5% to the community.

I was under the impression that this particular requirement for existing mines had been set aside by the Gauteng High Court in September 2021. It’s possible that I may have missed an update or that the court’s ruling has been overturned. Alternatively, it could be an oversight by the DMRE to issue such letters for license renewal without considering the current legal framework. It’s difficult to ascertain the exact situation.

In light of these circumstances, I advised my client to address the issue by writing a letter to the DMRE, highlighting the potential unlawfulness of this requirement. I eagerly await the response and will provide an update here once I receive it.