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Mmegi

Gov’t reserves 24% mining ownership for citizens

Spreading opportunity: Kenewendo PIC: KENNEDY RAMOKONE
Spreading opportunity: Kenewendo PIC: KENNEDY RAMOKONE

The amendments to the Mines and Minerals Act giving government or citizens the right to purchase up to 24% equity in all new mining licences, have taken effect.

The amendments were initially passed by Parliament last year and mark an increase from the 15% government had the right to purchase in new mining operations.

A 24% equity is significant because it gives enough power to protect the minority partners’ interests and to influence key decisions, even without being the majority owner. However, it is below the 24% blocking majority required for making major decisions.

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