Research On South African Mining Local Content Legislation

"Local content" generally means that foreign investors need to purchase a certain amount of local goods or services when investing in the host country,and a certain amount of local shares should be ensured in the investment company,and a certain amount of local content should be employed and trained Employees,transfer specific technologies to the local area,etc.Local component legislation is an important measure taken by resource-rich African countries to improve the lives of local people and increase the economic benefits of natural resource extraction.Since 2000,nearly20 African countries have passed legislation on indigenous ingredients,and South Africa has also undertaken a series of legislative reforms to increase the requirements for indigenous ingredients in this context.In its mining field,the �Broad Black Economic Empowerment Law(B-BBEE Law)� promulgated in 2003 provides principled provisions for black people's participation in the economic development of South Africa.The Economic Empowerment Charter provides specific and comprehensive provisions for South Africa's local mining legislation.South Africa hopes to adopt systematic local component legislation to help historically disadvantaged people participate in economic development,achieve balanced development of the national economy,promote stable development of the political situation,and increase the country's overall strength.First of all,through historical investigation,the formation and improvement of South Africa's mining local ingredients legislation has generally gone through three stages.First,the mining legislation in the pre-apartheid era began to originate;second,the era of apartheid laid the seeds for the creation of mining localization legislation;third,the early stage of the independence of the new South Africa,in order to promote economic equality among different peoples,adapt The wave of localized legislation in Africa,the first to develop localized legislation in the mining field.Secondly,South Africa's mining localization legislation requires foreign mining companies to meet preset localization standards in terms of ownership,purchase and business development,human resource development,employment rights,mining community plans,housing and living conditions.Secondly,in order to promote the effective implementation of mining local ingredients legislation,establish mining local ingredients legislation evaluation rules.In general,South Africa's legislation on localingredients in mining has great benefits in promoting the participation of historically disadvantaged people in mining activities,improving the huge gap between the rich and the poor,and achieving balanced economic development.After nearly 20 years of development,South Africa's legislation on local ingredients in mining has resulted in institutional issues such as unclear regulatory powers and responsibilities,heavy approval procedures,a large proportion of ownership transfers,and resolution of investment disputes,in fact excluding the possibility of international arbitration.The practical effect of the local component legislation is not satisfactory.Major mining companies in South Africa have accused the government of the localization of the mining industry for its many shortcomings,which have led to investment disputes with many foreign mining companies.In order to protect the legitimate interests of foreign investors,it is very urgent to put forward countermeasures and suggestions to deal with the legislation of South Africa's mining industry.For example,legal risk prevention can be started from the aspects of clarifying the regulatory body,emphasizing community approval procedures,emphasizing the design of the BEE transaction structure,and signing complete and mutually beneficial contracts.In summary,under the �Belt and Road� cooperation initiative,Chinese companies have continued to increase their mining investment in South Africa.A comprehensive understanding of South Africa's mining history and legislative trends is of great significance for companies to prevent and respond to investment risks and realize investment benefits.