The finalised Mining Charter was released for implementation on 27 September 2018. The Department of Mineral Resources (DMR) released a summary document highlighting the most significant changes and/or additions to the Charter. A previous article dated 08 October 2018 dealt with the ownership element (1 of 7 elements in the Charter).
For this article, we will focus on Mine Community Development.
The DMR has identified the Mine Community as:
“Communities where mining takes place, major labour sending areas, adjacent communities within a local municipality, metropolitan municipality or district municipality”.
The requirements for a Mineral Rights Holder/applicant are:
- A mining right holder must meaningfully contribute towards Mine Community Development, in keeping with the principles of the social license to operate.
- The Trust or similar vehicle to oversee implementation of the 5% equity equivalent should have – at minimum—representation from host communities (including Community Based Organisations and Traditional Authorities where applicable) and mining companies.
- The Trust must identify community development needs and develop a host community development programme (to be published in at least 2 local languages), fund distribution, governance and organisation.
- Administration costs, project management and consultation fees of the Trust may not exceed 8% of the total budget.
- Community development programme approved under this element shall not substitute Social and Labour Plan (SLP) commitments.
- Mining right holders operating in the same area may collaborate on identified projects to maximise the socio-economic developmental impact, in line with their approved SLPs. Approved SLPs must be published in English and a dominant language(s) commonly used within the mine community.