2.1.4.1 The equity equivalent benefit referred to in paragraph 2.1.3.2 (ii) shall be administered as follows:

2.1.4.1.1 5% equivalent of the issued share capital of the mining right holder, at no cost to a trust or similar vehicle set up for the benefit of host communities;

2.1.4.1.2 The Trust or similar vehicle shall be established and administered in terms of applicable legislation for the duration of the mining right;

2.1.4.1.3 The Trust or similar vehicle shall comprise of representation from host communities (including Community Based Organisations, Traditional Authorities, etc.) and mining companies;

2.1.4.1.4 A mining right holder must, in consultation with relevant municipalities, host communities, traditional authorities and affected stakeholders; identify host community development needs;

2.1.4.1.5 The Trust or similar vehicle shall be responsible for, amongst others, host community development programme, fund distribution and governance of the equity equivalent benefit;

2.1.4.1.6 All administration costs, project management and consultation fees of the Trust or similar vehicle may not exceed 8% of the total budget;

2.1.4.1.7 An approved host community development programme must be published in, at least, two languages commonly used within the host community.

2.1.4.2 A host community development programme approved under this element shall not replace Social and Labour Plan commitments as contemplated in Section 23 of the MPRDA.

By March this year your new SLP strategies to conform with Mining Charter III needs to be in!

See para 8 of Mining Charter III below.

8. TRANSITIONAL ARRANGEMENTS

A mining right holder must progressively align existing targets from the Mining Charter, 2010 targets within the transitional period, to meet the revised requirements as follows:

8.1 Five (5) years for the inclusive procurement element. A mining right holder must within six (6) months from the date of publication of the Mining Charter, 2018 submit a five – year plan indicating progressive implementation of inclusive procurement targets.

8.2 Compliance with procurement targets within the transitional period shall be as follows:

8.2.1 Mining Goods: The first -year target is set at 10% of the procurement budget, second year 20% of the procurement budget, 35% of the procurement budget by third year, 50% of the procurement budget by fourth year and 70% of the procurement budget by fifth year.

8.2.2 Services: The first -year target is set at 70% of the procurement budget, second year 80% of the procurement budget.

8.2.3 The use of coding system for verification of local content shall be applicable once finalised by the Department of Trade and Industry.

8.3 Five (5) years for the Employment Equity element. A mining right holder must within a period of six (6) months from the date of publication of the Mining Charter, 2018 submit a five -year plan indicating progressive implementation of the provisions of Employment Equity element targets.

8.4 A mining right holder must comply with the Housing and Living Conditions Standard and ensure that it maintains single units, family units and any other arrangements agreed to with employees, pending the finalisation of the Reviewed Housing and Living Conditions Standard.

8.5 At the end of the transition period, a mining right holder must comply with the Mining Charter, 2018 targets as provided for in the respective elements.

8.6 A mining right holder’s performance shall be reported, audited and verified annually against each element in respect of implementation for the applicable transitional