A major international mining organisation has warned that South Africa's new mining charter is stifling development in the industry.

Dean MacEachern, the vice-president of the Foreign Investors Mining Association (Fima), told Business Report that the charter's remit was indiscriminate, with both mining firms and exploration firms being governed by the rules.

The result, he argued, is that too large a degree of discretion lies with the department of minerals and energy, with the rules lacking clarity.

"This gives a feeling of unease to new investors to the country who are unfamiliar with the process and the history of the Mineral and Petroleum Resources Development Act,” he complained.

"Many foreign companies are unwilling to start spending high risk exploration funding with an uncertain outcome to their investment."

Mr MacEachern pointed to the largely platinum-driven $28 million (R184.8 million) spent on exploration in South Africa last year, which he says is a fraction of what the country should command. In Canada, for example, a single company in the form of De Beers spent $29 million.

MacEachern also highlighted specific instances of “vague wording” such as the "26 per cent minimum" in the charter - he argued that this could represent any stake between 26 per cent and 100 per cent.

The department of minerals and energy has downplayed Mr MacEachern's criticisms, but the development of platinum holdings among indigenous people and the rules laid out under the mining charter have proved controversial in the industry.