SA mining not yet ‘radically transformed’ – DMR official
JOEL RAPHELA The Mining Charter has helped to transform the local mining sector, as more black people have been able to participate as mine owners and managers
Photo by Duane Daws
The depressed global economic environment has created challenges in the mining sector, and, although some commodities are beginning to emerge from the slump, conditions remain difficult for the sector, Department of Mineral Resources (DMR) deputy director-general Joel Raphela told delegates at the 2016 Youth in Mining, Procurement and Transformation Summit, in Johannesburg, last month.
“We have seen how this has led to some mining companies exiting the space. We believe that this is an opportunity for new mining giants to be created, and some of those may come from among the young people of our country,” he said.
Raphela pointed out that the Mining Charter had been in effect for the past 12 years, which had helped to transform the local mining sector, as more black people had been able to participate as mine owners and managers.
Nonetheless, he stressed government believed that there was still “some way to go” before it could declare that the sector had been “radically transformed”.
Therefore, Raphela highlighted that it was for this reason that the DMR had proposed in the draft Mining Charter that a mining right-holder should procure a minimum of 60% of locally procured manufactured capital goods from black economic-empowerment-compliant manufacturing companies.
He said the draft Mining Charter also required right-holders to procure 70% of their manufactured consumables locally and secure 80% of a mine’s services from local service providers.
“We have also revised the contribution by multinational suppliers of capital goods to a minimum of 1% of their annual income to a social development fund. This element further introduces a contribution towards supplier development and enterprise development,” Raphela explained.
He further urged delegates to submit proposals to the DMR about ways to ensure improved transformation of the industry.
Raphela explained that the department did not only want people to raise concerns about the need for change in the mining sector, but also for people to provide possible solutions as to how the goal of “meaningfully transforming” the sector should be achieved.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation