By: Israel L. Noko, CEO, NPI Governance Consulting
The long awaited Mining Charter Implementation Guideline was finally gazetted on December 19th 2018 (just when most companies closed down for the festive season holidays). The September 2018 Broad-Based Socio-Economic Empowerment Charter stipulates that it is to be read together with Implementation Guidelines. The highly anticipated Implementation Guidelines were finalised and published under Government Notice 1399 in Government Gazette 42122 (Implementation Guidelines).
The Implementation Guidelines are not gazetted to introduce new requirements for mining right holders and further analysis will be done by the NPI Governance Consulting team. The purpose of the Implementation Guidelines is to outline processes, procedures, forms and templates, to facilitate compliance with the requirements of the Mining Charter.
An Amendment to the Mining Charter was also gazetted on 19 December 2018, under Government Notice 1398 in Government Gazette 42118 (Amendment). The Amendment introduces relatively minor changes to the Mining Charter, one such change being the introduction of a sanction for non-compliance with the ring-fenced mine community development element, which was previously not included in the Mining Charter. Potential implication for supplier to mining companies is that BEE Contributor status below a Level 5 may be seen as non-compliant spend under the Mining Charter.
For more information, please contact:
Mahali Molapo, Marketing & Communications Consultant
Tel: +27 (0) 11 259 4016