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Implementation Guidelines for Mining Charter in Place

January 11, 2019

Department of Mineral Resources

Implementation Guidelines for the Mining Charter were published in December 2018.

The mineral resources department published the guidelines in Government Gazette 42122.

The Mining Charter 2018 was released in September last year.

The Implementation Guidelines outline processes, procedures, forms and templates to facilitate compliance with the requirements of the Mining Charter.

Some of the issues focused on in the guidelines include abbreviations; ownership element; mineral beneficiation; procurement, supplier and enterprise development; human resource development; employment equity; housing and living conditions and regime for junior miners.

Mining rights holders must report annually on the current BEE percentage share, the maximum BEE target reached and meaningful economic participation and full shareholder rights.

Table B is provided to annually report on level of compliance with the requirements on carried interest for qualifying employees.

Detail is also provided on what supporting documents are required to report on BEE entrepreneur shareholding and what information needs to be contained in the Beneficiation Equity Equivalent Plan.

The procurement, supplier and enterprise development section focuses on, inter alia, calculation of local content, local content verification, mining goods, research and development and procurement reporting templates.

The Implementation Guidelines came into force on the date of publication.

Meanwhile, in Gazette 42130, the department published an amendment to the Mining Charter.

The amendments focus on inclusive procurement, supplier and enterprise development; reporting; transitional reporting; non-compliance and Annexure A.

The first annual reporting on the Mining Charter is expected on or before 31 March 2020.

Existing right holders must implement the Mining Charter from 1 March 2019.