(Bloomberg) — South Africa’s High Court struck down some changes to mining regulations that govern Black ownership targets, in a move that could potentially revive investor interest in the sector.
In 2018, Mines Minister Gwede Mantashe adjusted the rules to stipulate that an ownership target of 26% for Black investors in South African mining companies would remain in perpetuity, so miners that had previously met the threshold would need to find new Black shareholders if the original ones exited their holdings.
The High Court of South Africa on Tuesday set aside that provision and other changes to the charter, backing a challenge by an industry lobby group that represents producers.
The challenged clauses of the 2018 Charter are unconstitutional as the minister doesn’t have the power to make law, according to a ruling by the Gauteng Division of the High Court in Pretoria.
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