The South African government has announced that local mining beneficiation projects can negate the 26 per cent black economic empowerment (BEE) requirement of mining firms.

The announcement, from the South African Department of Minerals and Energy (DME) Deputy DG Mineral Policy and Promotion Abiel Mngomezulu, means that companies that have not reached the BEE standard required in the Mining Charter could be let off if they can show they are investing in local beneficiation projects.

Under the Mining Charter, all mining companies, including the likes of Anglo Platinum and Impala Platinum, need to ensure at least 26 per cent of their equity is held by BEE groups, in an effort to give some of the vast wealth created by mining back to the people of South Africa.

However, speaking to Mining Weekly, Mr Mngomezulu suggested that companies which help to establish and develop mining beneficiation projects local to their mines could see that requirement sidelined.

Minerals and Energy Minister, Buyelwa Sonjica, appeared to back Mr Mngomezulu's comments, adding: "Beneficiation of minerals is extremely significant in terms of job creation in the country - the industry has been exporting raw materials for about 100 years and overtime missed out on the extra jobs that could have been created and that is why we are now incentivising companies that beneficiate their metals."

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