• Home »
• About us »
• Black Economic Empowerment

Black Economic Empowerment

Black economic empowerment (BEE), the South African government’s strategy of paving the way for historically disadvantaged persons to participate fully in the economy, is a crucial underpin to South Africa’s future peace and prosperity. How this applies to the mining industry is governed by the Minerals and Petroleum Resources Development Act (MPRDA) and the mining charter.

The most dramatic change occasioned by the Act in the local coal industry is the principle of “use it or lose it”, a factor that has freed many unused coal resources previously held by the large coal groups but that were essentially sterilised with little prospect of early exploitation. In line with this, the Department of Minerals and Energy (DME) has encouraged new entrants into the industry, converting “old–order” into “new–order” rights available to companies with strong BEE credentials. This, in turn, has allowed Keaton Energy to create partnerships with BEE groups to develop previously–dormant resources.