South Africa - 05

South Africa: Zwane’s Proposed Mining License Moratorium: Warning Sign for Investors

On 19 July, Minister of Mineral Resources Mosebenzi Zwane provided a notice of intention to implement a moratorium on processing new and renewed prospecting and mining rights. This represents a significant escalation in tensions with the mining sector, even though there are major doubts over the legality of Zwane’s proposal. The moratorium appears to be

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South Africa: New Mining Charter Preludes Upstream Black Economic Empowerment

Minister Zwane announced on 6 June 2017 that the much-delayed update to the Mining Charter will be published in the Government Gazette by mid-June. Proposed amendments to the Mineral and Petroleum Resource Development Act (MPRDA) Amendment Bill suggest that the upstream oil and gas sector will not be required to comply with the Mining Charter.

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South Africa: CEF Restructuring Threatens IPP Office’s Independence

On 19 May Minister of Energy Mmamoloko Kubayi highlighted key initiatives for the year ahead in her department’s budget vote speech, including several important developments relating to the restructuring of the CEF. Kubayi announced that the Petroleum Agency of South Africa (PASA) would be transferred to the Department of Mineral Resources and the IPP Office

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South Africa: Leadership Changes at the DMR: Policy Impact

On 2 March the cabinet announced that Thabo S. Mokoena had been appointed as director general at the Department of Mineral Resources. Mokoena, an advocate, will take over from acting Director General David Msiza in April. Mokoena’s apparent links to Minister of Mineral Resources Mosebenzi Zwane, though, will raise concerns given the various allegations leveled

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South Africa: The Public Protector’s State Capture Report: Implications for IOCs

The Public Protector’s report into allegations of state capture released on 2 November has spelled out in some detail the degree to which the Gupta family has entrenched itself into South African politics with President Jacob Zuma’s support. The report, entitled “State of Capture,” was only released after Zuma withdrew his attempt to interdict it

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South Africa: Zwane’s Gupta Links Attract Renewed Scrutiny

Minister of Mineral Resources Mosebenzi Zwane has recently come under fire for calling for a judicial inquiry into why several local financial institutions have terminated their relationship with Gupta-owned Oakbay Investments. Despite calls from the opposition Democratic Alliance (DA) for Zwane to resign, however, his position is unlikely to be threatened. President Jacob Zuma has

South Africa - 05

South Africa: Revised Mining Charter to Complicate Black Economic Empowerment

On 16 April Minister of Mineral Resources Mosebenzi Zwane published a draft review of the Broad-Based BEE Charter for the South Africa Mining and Minerals Industry, known as the Mining Charter. Although the Petroleum and Liquid Fuels Charter currently applies to the oil and gas industry, one of the important changes in the MPRDA Amendment

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South Africa: Pressure for Zuma’s Recall Increases After Gupta Allegations Confirmed

On 16 March Deputy Minister of Finance Mcebisi Jonas confirmed newspaper reports that members of the Gupta family had offered him former Minister of Finance Nhlanhla Nene’s position before Nene was removed in the December 2015 reshuffle. Jonas’ confirmation considerably increases the likelihood that President Zuma may be recalled, as it corroborates allegations of the

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South Africa: Mosebenzi Zwane Appointed Minister of Mineral Resources

On 22 September President Jacob Zuma announced that relatively unknown Mosebenzi Zwane would be appointed minister of mineral resources. Zwane, who was sworn into office on 23 September, replaces Ngoako Ramatlhodi, who has been shifted to minister of public service and administration. The public service portfolio has been vacant since Minister Collins Chabane died in