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CHANGING HANDSPresented by Shirley Fodor                  Director
Overview            BEE            Section 11 of the MPRDA –             minerals changing hands            Contractors...
Broad-Based Black Economic Empowerment                                         3
Broad-Based Black Economic Empowerment Objects of the MPRDA    Private ownership of minerals abolished    Equitable acc...
Broad-Based Black Economic Empowerment –The Charters 2004 Charter                2010 Charter    HR development        ...
Lock-Ins            Purpose            Duration            DMR response            Double-edged sword            Alte...
Minerals Changing Hands Section 11 of the MPRDA    Applicability to minerals and petroleum    What is the prohibition a...
Section 11 – Case Study          Contents of right          Contents of agreement          Pre-implementation         ...
Contractorship Arrangements Pending Transfer       Section 102 of the MPRDA       Contractorships v fronting       Cont...
Case Study – Contractorship Agreements Sale of business Contractorship agreement Marketing agreement Effect of agreeme...
Conclusions Requirements of the legislation Requirements of the Charters Section 11 and contractorship agreements – a f...
THANK YOU                                Shirley Fodor                          8 November 2012Nothing in this presentatio...
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Werksmans Director Shirley Fodor Speaking Notes - Junior Mining & Exploration Conference - 8th Nov 2012

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Werksmans Director Shirley Fodor speaks on BEE, Section 11 of the MRPDA - minerals changing hands and contractorship arrangements at the Junior Mining & Exploration Conference 8th November 2012.

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Werksmans Director Shirley Fodor Speaking Notes - Junior Mining & Exploration Conference - 8th Nov 2012

  1. 1. CHANGING HANDSPresented by Shirley Fodor Director
  2. 2. Overview  BEE  Section 11 of the MPRDA – minerals changing hands  Contractorship Arrangements 2
  3. 3. Broad-Based Black Economic Empowerment 3
  4. 4. Broad-Based Black Economic Empowerment Objects of the MPRDA  Private ownership of minerals abolished  Equitable access to minerals  Expanding opportunities for the historically disadvantaged  Interested and affected persons  Non-compliance 4
  5. 5. Broad-Based Black Economic Empowerment –The Charters 2004 Charter  2010 Charter  HR development  Meaningful economic participation/ownership  Employment equity  Procurement and  Community development enterprise development  Housing and living  Beneficiation conditions  Employment equity  Procurement  HR development  Ownership  Sustainable development  Beneficiation  Mining community  Housing and living conditions  Non-Compliance 5
  6. 6. Lock-Ins  Purpose  Duration  DMR response  Double-edged sword  Alternatives? 6
  7. 7. Minerals Changing Hands Section 11 of the MPRDA  Applicability to minerals and petroleum  What is the prohibition and the mischief sought to be prevented?  Identifying control and changes of control  Mogale Alloys v Nuco Chrome Bophuthatswana (Pty) Ltd  Criteria for consent  Mining rights  Prospecting rights  Exceptions to the rule  Listed companies  Encumbrances  Registration requirements  Proposed amendments to section 11 7
  8. 8. Section 11 – Case Study  Contents of right  Contents of agreement  Pre-implementation  Post-fact attempt at correcting  Consequences 8
  9. 9. Contractorship Arrangements Pending Transfer  Section 102 of the MPRDA  Contractorships v fronting  Content of agreement  Consequences 9
  10. 10. Case Study – Contractorship Agreements Sale of business Contractorship agreement Marketing agreement Effect of agreement Consequences 10
  11. 11. Conclusions Requirements of the legislation Requirements of the Charters Section 11 and contractorship agreements – a fine line The importance of compliance The consequences for failing to comply 11
  12. 12. THANK YOU Shirley Fodor 8 November 2012Nothing in this presentation should be construed as formal legal advice from any lawyer or this firm. Readers areadvised to consult professional legal advisors for guidance on legislation which may affect their businesses. © 2012 Werksmans Incorporated trading as Werksmans Attorneys. All rights reserved.

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