B-BBEE explained – The Mining Charter – part 3

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. Previous articles dated 08 October and 02 November 2018 dealt with the ownership and Mine Community Development elements (2 of 7 elements in the Charter).

For this article, we will focus on Employment Equity and Inclusive Procurement, Supplier and Enterprise Development (elements 3 and 4).

Employment Equity

• Board level: 50% black of which 20% to be women.
• Executive/Top management: 50% black of which 20% to be women.
• Senior management: 60% black of which 25% to be women.
• Middle management: 60% black of which 25% to be women.
• Junior management: 70% black of which 30% to be women.
• Employees with disabilities: 1.5%.

Inclusive Procurement, Supplier and Enterprise Development

• 70% of all mining goods to be from BEE entities.
• 80% of all services to be from BEE entities.
• 100% of mineral samples to be analysed by SA-based firms.
• 30% of all procurement budget on mining goods may be offset against Supplier Development.
• Goods must be procured in line with a standardised product identification coding system being developed by the DTI.
• 10% of all procurement budget on services may be offset against Supplier and Enterprise Development.
• 70% of all R&D budget to be on South African based entities.

 

BEERSA Article – 03 December 2018 – The Mining Charter and B-BBEE – part 3 (pdf)

Leave a Reply