MINING CHARTER FINALLY GAZETTED
- October 1, 2018
The final Mining Charter was gazetted on Friday 28 September 2018. This brings an end to an extended period of consultation.
Some of the highlights of the newly gazetted Mining Charter are as follow:
- The ‘Once Empowered, Always Empowered’ principle on previous (26%) Ownership targets will be maintained for existing mining rights;
- All new mining rights will have a Black Ownership target of 30% to be maintained. Of this, 5% to be issued to employees and 5% to host communities at a “no-cost-and-free-of-encumbrance basis” (also referred to as ‘carried interest’) and 20% to a BEE entrepreneur;
- The Charter scorecard requires mines to fully comply with the above Ownership targets and with the Mine Community Development requirements at all times. Non-compliance may result in the mining right being withdrawn;
- Other elements to be addressed by mining right holders in terms of the Mining Charter is Employment Equity, Procurement and Enterprise and Supplier Development, Beneficiation, Housing and Living Conditions and Human Resource Development:
- Employment Equity: targets were set for different tiers of management in the entity, mostly in line with previous requirements;
- Procurement: a target of 70% of all mining goods to be procured from local suppliers with 21% of such to be procured from suppliers controlled by HDSA’s (Historically Disadvantaged South African). The same principles applies to Services although the local supplier target required is 80% of 50% to be procured from HDSA suppliers;
- Beneficiation: a maximum of 5% of beneficiation may be offset against the above BEE Entrepreneur ownership target;
- Human Resource Development: 5% investment of the Leviable Amount is required on essential skills development.
Contact Alternative Prosperity for details on the above.