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On 15 April 2016, the Minister of Mineral Resources published the draft Reviewed Broad Based Black-Economic Empowerment Charter for the South African Mining and Minerals Industry 2016 for public comment. The Charter addresses the targets to be met by the mining industry in respect of the housing and living conditions of mine workers. Taxand South Africa discusses this update.
The amendment to the Mining Charter provides that mining companies must implement measures for improving the standard of housing, including attaining the occupancy rate of one person per room, the conversion of hostels into family units, and the facilitation of home ownership options for mine employees.
These ownership options may include offering different building packages to interested employees, subsidising the purchase of houses by employees, partnering with financial institutions to issue guarantees for home ownership on behalf of employees, and ensuring that any housing offered to employees is integrated within communities in mining and labour-sending areas.
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Should the draft Reviewed Mining Charter be finalised in its current form, mining companies will have three years to put structures in place for the funding of such housing, as well as for the management of their cash flows.