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Niche Mines We Assist

The EBITDA of a large mining right can easily be in the billions of Rand, with thousands of workers.  Such mining right holders have options and resources. Smaller mines have an EBITDA of in the low to medium million rand range, with the total work complement mostly less than 150 employees. The resources of small mines are limited and we have developed tools to cost-effectively assist our clients. 

We gladly work for small clients and we structure our work in accordance with what smaller mines can afford, without compromising on quality. We also assist and coach our smaller clients to make SLP/Mining Charter compliance cost-effective

Does every Mine have its own unique Charter?

The first iteration of the mining charter was introduced in 2002 by the Department of Minerals and Energy. It set a target of 26% black ownership of mining companies by 2014, along with other goals related to employment equity, procurement, and community development. In 2010, a new version of the mining charter was introduced, which raised the ownership target to 30% and included new provisions related to the beneficiation of minerals and the promotion of research and development. In 2017, the government released a third version of the mining charter, which raised the ownership target to 30% and added new provisions related to local content procurement and the empowerment of women in the mining industry. However, the new charter was met with resistance from some mining companies, who argued that the ownership target was too high and would discourage investment in the sector. In 2018, the government and mining industry reached a compromise agreement on the ownership target, which would be calculated using a “once empowered, always empowered” principle. This means that companies that had previously met the ownership target would not be required to sell additional shares to black investors. In 2020, the provisions of the Mining Charter 2018 was challenged and the clauses on inclusive procurement and ownership were set aside. It was emphasised that the Mining Charter is policy, not law, and if anything, the Mining Charter 2010 is the closest the policy comes to legal obligation. In a nutshell, the agreement between the DMRE and the mine right holder is the mine’s unique mining charter.

Each mine has a unique mining scorecard?

The first iteration of the mining charter was introduced in 2002 by the Department of Minerals and Energy. It set a target of 26% black ownership of mining companies by 2014, along with other goals related to employment equity, procurement, and community development. In 2010, a new version of the mining charter was introduced, which raised the ownership target to 30% and included new provisions related to the beneficiation of minerals and the promotion of research and development. In 2017, the government released a third version of the mining charter, which raised the ownership target to 30% and added new provisions related to local content procurement and the empowerment of women in the mining industry. However, the new charter was met with resistance from some mining companies, who argued that the ownership target was too high and would discourage investment in the sector. In 2018, the government and mining industry reached a compromise agreement on the ownership target, which would be calculated using a “once empowered, always empowered” principle. This means that companies that had previously met the ownership target would not be required to sell additional shares to black investors. In 2020, the provisions of the Mining Charter 2018 was challenged and the clauses on inclusive procurement and ownership were set aside. It was emphasised that the Mining Charter is policy, not law, and if anything, the Mining Charter 2010 is the closest the policy comes to legal obligation. In a nutshell, the agreement between the DMRE and the mine right holder is the mine’s unique mining charter.

Social and Labour Plan Mining Charter Advisory