Page 7 - AMANGO 2017 CASE STUDY 2

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describe situations where ‘black people’ are made to appear empowered, when in reality, white South
Africans continue to control the enterprise (or the economy). He claimed that AMANGO was observed to

be the most notable offender, appealing to S. Chamberlain, as the Chairperson Designate, to take firm
steps to start on a clean footing, to avoid unspecified sanctions from government. S. Chamberlain is very
concerned about the remarks and has discussed with the outgoing chair –Bruce Peters, who has replied
that, ‘’it was inevitable that this would happen –the South African government should be knowing that the
business of business is business.’’ The next board meeting will be seeking to objectively evaluate the
impact of the new Mining Charter on AMANGO.
The CharterQuest Institute has compiled the following extracts to assist with such an evaluation:

1. OBJECTIVES OF MINING CHARTER
A government instrument designed to effect sustainable growth and meaningfully transformation of the
South African mining industry to achieve the following objectives:
1.1 Promote equitable access to the nation's mineral resources to all the people of South Africa;

1.2 Substantially and meaningfully expand opportunities for black people to enter the mining and minerals
industry and to benefit from the exploitation of the nation's mineral resources; and
1.3 Provide much-needed regulatory certainty to promote investment in the mining sector.

2. DEFINITIONS

2.1 A holder is any person or company that holds a mining right; and
2.2 "Black person or people’’ is a generic term which means Black Africans, Coloureds and Indians
who were Historically Disadvantaged and (a) are citizens of the Republic of South Africa by birth
or descent; or (b) became citizens of the Republic of South Africa by naturalisation before 27 April
1994; or, on or after 27 April 1994 and who would have been entitled to acquire citizenship by

naturalisation prior to that date.

3. OWNERSHIP
3.1 a Holder of a new mining right must have a minimum of 30% Black Person Shareholding (BPS) for
each mining right or in the company which holds the mining right (which shareholding must include

economic interest plus a corresponding percentage of voting rights);
3.2 Any portion of the Minimum BPS Allocations that have not yet vested must vest within 10 years. Such
vesting to be paid from proceeds of dividends received by Black Person shareholders and if such
dividends are insufficient to discharge the amount required for full vesting, the Holder or vendor of the
Black Person shares shall write-off the balance owing; and
3.3 If a Holder claims recognition of a Historical BPS Transaction and/or if an existing Holder has
maintained a minimum of 26% Black Person shareholding after 15 June 2018, it is required to Top Up

its Black Person shareholding (at the Holder level) to a minimum of 30% Black Person shareholding
by no later than 31 March 2019, which shall at all times be maintained.

Climate Change and Sustainability Strategy

The CFO Case Study Competition Pack (Extended scenario)
www.charterquest.co.za | Email: thecfo@charterquest.co.za