New Mining Charter released

Minister of Mineral Resources Gwede Mantashe released the third mining charter yesterday, after approval by the Cabinet last week.  The focus is on empowerment targets and benefiting mining communities.

Ring-fenced elements
Ownership and Mine Community Development are ring fenced and require absolute compliance at all times.

- New mining rights: Minimum of 30% BBBEE shareholding.
- Existing Mining rights: Minimum of 26% BBBEE shareholding is accepted as compliant for the duration of the mining right.  This is not applicable upon renewal and is not transferable to a new owner.  The current 26% must reach the 30% target within 5 years.

The minister said that this decision was made to “entrench regulatory certainty for investors and provide security of tenure for investments“.

The 30% BBBEE shareholding should be made of:
- 5% for qualifying employees.
- 5% for host communities.
- 20% Black entrepreneurs, of which 5% should preferably be women.

Employment Equity
- Top executive management and mining boards: 50% black and 20% women.
- Senior and middle management: 60% black and 25% women.
- Junior management: 70% black and 30% women.

Investment in mining communities
The Charter makes provisions for mines with a 5% community interest to offset this interest by investing directly in the community.  (Communities refer to communities where mining takes place, major labour sending areas, adjacent communities within a local, metropolitan of district municipality).

A trust, or similar vehicle, will oversea the implementation of the 5% equity equivalent, identify community development needs and be responsible for developing a host community development programme, fund distribution, governance and organisation.

Skills Development
Invest a minimum of 5% of annual payroll on essential skills development - including science, technology, engineering and mathematical skills, graduate training programmes and Research and Development initiatives.

70% of the research and development budget must be spent with public or private South African based entities.

Compliance reports
Mines must submit annual compliance reports to the Department of Mineral Resources.

Housing and living conditions
Mines will also have to submit a housing and living conditions plan to be approved by the department.  It will include decent housing and ownership.

More information to follow…

Mark - 04:57 @ common, Industrial Relations, Human Resources, B-BBEE | Add a comment

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