Black-owned mining suppliers may not be able to deliver goods
The charter increases procurement requirements, but does not provide a framework to assist
It is common cause that the 2017 Mining Charter has been received with widespread controversy. Much of the criticism has been around the amendments that are intended to increase the compliance thresholds for ownership; management and control of the holders of mining and prospecting rights; and the once empowered, always empowered principle. However, in its current form, the charter is also likely to have a significant effect on the downstream market, in particular mining sector service providers. Little attention has been paid to the onerous requirements set by the new charter when it comes to holders procuring goods and services from mining industry suppliers. While suppliers are not required to comply with the charter, the procurement targets for holders indirectly require them to meet such targets to remain competitive. The 2010 Mining Charter required holders to procure 70% of their mining services procurement spend from black economic empowerment (BEE) entities, which are defin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.