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SPRING 2010
EVERYTHING MATTERS
MINING
The long-awaited review of the Broad-Based Socio-EconomicEmpowerment Charter for the South African Mining and Minerals
Industry (Revised Charter) was released by the Minister on
13 September 2010. The intention behind the Revised Charter was
to clarify certain ambiguities and uncertainties which existed under
the original 2002 Mining Charter (2002 Charter) and to provide
more specific targets than the 2002 Charter had done, the 2002
Charter having been a more policy orientated document.
However, the Revised Charter has in some instances given rise tomore questions than answers. The first issue is the relationship
between the 2002 Charter and the Revised Charter. Does the
Revised Charter replace the 2002 Charter or must the Revised
Charter be read in conjunction with the 2002 Charter?
The title of the Revised Charter specifically records that it is an
"Amendment of the ....(2002 Charter)" as opposed to an Amended
Charter. This thinking is confirmed in the Preamble to the Revised
Charter which records that "...amendments are made to the Mining
Charter of 2002 in order to streamline and expedite attainment of
its objectives." These statements indicate that it would be necessary
to consider the 2002 Charter and the Revised Charter together in
order to ascertain one's obligations. However, a comparative review
of the Revised Charter and the 2002 Charter leaves one in little
doubt that the Revised Charter was in fact intended to replace the
2002 Charter and not merely to amend same.
The second preliminary issue is the following: What is the impact
of the Revised Charter on the Codes of Good Practice for the
Mining Industry (Code)? The simple truth is that by and large the
provisions of the Code have been ignored by stakeholders in the
mining industry. Inelegant drafting and the dubious legal validity
of the Code did little to promote the aims of the 2002 Charter.
However, the Code remains on the statute books as delegated
legislation. It has not been amended to reflect the provisions of
the Revised Charter and as such is likely to continue to be ignored.
If the Code has any relevance at all, it is likely to be in regard to
the general principles espoused therein. It is hoped that the Code
The revised Mining Charter 2010
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2 l Mining Matters 2010
will be wholly re-written in due course to be, in fact, a proper code
of good practice in accordance with international standards.
The third preliminary issue is: To what extent is the Revised Charter
a product of the consensual agreements recorded in the Stakeholders'
Declaration on Strategy for the Sustainable Growth and Meaningful
Transformation of South Africa's Mining Industry which was
signed on 30 June 2010 by the Department of Mineral Resources,
National Union of Mine Workers, Solidarity, UASA - The Union,
the South African Mineral Development Association and the
Chamber of Mines of South Africa (Declaration). In answer to this
question, we include in this comparative analysis a summary of
the most pertinent aspects of the Declaration. What is apparent
from this comparison is the fact that while the Department of
Mineral Resources seeks the co-operation of stakeholders, it is not
averse to adopting a coercive stance when it comes to empowerment
within the mining industry.
Possibly one of the biggest surprises was the fact that the Revised
Charter, despite the consensual nature of the Declaration, seemingly
provides that non-compliance with the provisions of the Revised
Charter will amount to a breach of the MPRDA that may result in
the suspension or cancellation of a holder's prospecting or mining
rights under section 47. Added to this is the fact that the Minister
will have the power to amend the 2002 Charter without consultation
and will therefore have a wide discretion to impose more onerous
obligations on the industry in the future. Not only does this
perpetuate regulatory uncertainty in the South African mining
industry but renders it more likely that the Revised Charter, as
delegated legislation, will be challenged as being unconstitutional.
However, the wording of the Revised Charter stipulates that "Non
compliance with the provisions of the Charter and the MPRDA
shall render the mining company in breach of the MPRDA ..." .
Therefore, if the holder must be in breach of both the Revised
Charter and the MPRDA before the right can be revoked, then this
provision would be more acceptable.
There are however a number of aspects to the Revised Charter
which we believe may inhibit deal-making within this sector.These aspects include:
* Deal participants will be required to engage with financiers
in order to determine the percentage of cash flow to be used
to service the funding of the structure and the amount to be
paid to BEE beneficiaries (barring any unfavourable market
conditions). There is therefore a requirement that a percentage
of cash flow must be paid to the BEE Shareholder prior to
finance having been repaid, thereby extending the funding
term and the financier's risk. This may result in financiers
being less enthusiastic to conclude BEE transactions.
* BEE beneficiaries are required to have full shareholder rights.
This may conflict with the Companies Act in certain deal
structures as a company can only issue shares that are fully
paid up and this may also limit structuring flexibility.
We include below a summary of the most important provisions
of the Revised Charter and, for comparative purposes, the
corresponding provisions of the 2002 Charter, the Declaration
and the Code.
Allan Reid, Director
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THE REVISED MINING CHARTER
* Dealt with in Item 1 of the
Revised Charter.
* Seeks to
(a) promote equitable access
to mineral resources;(b) substantially and
meaningfully expand
opportunities for HDSA
to enter and benefit from
the mining and minerals
industry;
(c) utilise and expand the
existing skills base for the
empowerment of HDSA
and to serve the
community;
(d) promote employment
and advance the social and
economic welfare of mine
communities and major
labour sending areas;
(e) promote beneficiation; and
(f) promote sustainable
development and growth
of the mining industry.
THE REVISED CHARTER
2010
* Dealt with in Item 3 of the
2002 Charter.
* Includes empowerment,
transformation and the
promotion of beneficiation.No reference to competitiveness
and sustainability.
THE 2002 CHARTER
* Dealt with in Part 1 of the
Declaration.
* Objectives include to promote
investment, enhance
competitiveness, drivetransformation, remove barriers
to sustainable growth and
transformation and commit to
effective implementation
strategy.
THE STAKEHOLDERS
DECLARATION
The Revised Charter
3 l Mining Matters 2010
How does it affect you? A comparative analysis
THE CODE OF GOOD
PRACTICE
* Dealt with in the Purpose
of the Code.
* Includes facilitation of the
implementation of broad
based socio-economicaspects of the 2002 Charter
to give effect to section
100 (1)(b) of the MPRDA.
The Declaration The 2002 Charter The Code
OBJECTIVES
* Dealt with in Item 2.1 of the
Revised Charter. While
HDSA ownership of 26%
remains unchanged and is
required to be achieved by
March 2015, a new definition
of HDSA has been introduced
which includes the phrase
"..which should be
representative of the
demographics of the country."
Precisely what is meant
by this phrase is not clear.
Does this entail that a
holder's HDSA participation
should include all
demographically representedgroups or, for example, that
* Dealt with under Item 4.7 of
the 2002 Charter. Provides for
2 ownership targets of 15%
within 5 years and 26% within
10 years of 1 May 2004.
* Dealt with in Part 12 of the
Declaration.
* Minimum target of 26%
HDSA ownership by 2014.
Meaningful participation
includes that BEE transactions
will be concluded with clearly
identified beneficiaries (BEE
entrepreneurs, workers and
communities).
The Revised Charter
* Dealt with under Item 2.1 of
the Code.
* Requires 26% HDSA voting
rights by 2014 plus 26%
HDSA economic interest
(on a modified flow through
principle) by 2014 plus a
net HDSA value of 26% by
2014. Net value defined so
as to exclude value of interest
still burdened by loans after
2 years.
The Declaration The 2002 Charter The Code
OWNERSHIP
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4 l Mining Matters 2010
South African Chinese
persons, although being
classified as HDSAs, may not
exceed 2 or 3% of a holder's
HDSA grouping? Or is it a
mechanism intended to limit
the number of white women
which can be included for
HDSA purposes? The
intention here is unclear.
* Although the Revised
Charter does contain a
limited degree of flexibility
as regards ownership in thatit states that ownership shall
vest within agreed time-
frames "taking into account
market conditions", the
March 2015 date for
achievement of 26% HDSA
ownership is hard-coded.
There is no applicable
weighting to this criterion in
the scorecard. A holder will
either have met the target or
will have failed to do so.
* "Effective ownership" is
defined as "the meaningfulparticipation of HDSAs in
the ownership, voting rights,
economic interest and
management control of
mining companies".
* Requires a minimum target
of 26% "meaningful
economic participation"
(as defined)1and 26% full
shareholder rights for HDSA
by March 2015.
* The value of beneficiation,
as provided for by Section
26 of the MPRDA and
"elaborated in the mineral
beneficiation framework",
can be offset to a maximum
of 11% of ownership target.
* Continuing consequences of
all previous deals concluded
prior to 1 May 2004 can be
included in calculating such
credits/offsets in terms of
market share as measured by
attributable units of production.
* Barring unfavourable market
conditions, some cash-flow to
service the funding structure,
the remaining cash-flow to be
paid to the BEE beneficiaries.
* Ownership must vest within
agreed time-frames of the
BEE transactional structure
(taking into account the
prevailing market conditions).
* BEE participant shall have
full shareholder rights, eg
full participation at annualgeneral meetings and exercise
of voting rights, regardless of
legal form of instruments used.
The Revised Charter The Declaration The 2002 Charter The Code
1 Incudes key attributes such as (a) BEE beneficiaries must be clearly identifiable in the form of BEE entrepreneurs, workers (including ESOPs) and communities, (b) barring unfavourable conditions,a portion of cash flow should be used to service the funding structure and a portion should flow to the BEE partner, (c) BEE partner should have full shareholder rights, full participation at AGMs,
exercise of voting rights, regardless of legal f orm and (d) ownership should vest within time-frames, agreed with the BEE entity, taking into account market conditions.
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5 l Mining Matters 2010
* Dealt with in Item 2.2 of the
Revised Charter. These
targets are exclusive of
non-discretionary procurement
spend (expenditure that
cannot be influenced by a
mining company, such as
procurement from the public
sector and public enterprises).
These targets are high, given
that the exact manner in
which such procurement isto be measured is not clear.
There is, for example, no
inclusion of the measurement
provisions of the Code 500
which allows procurement
from certain BEE entities to
be measured at 120% of
procurement spend.
* While the ramp up over
five years is welcomed, the
ability of BEE entities to
supply requisite goodsand services of quality at
competitive prices in
accordance with demand is
questionable, given the
specialized nature of mining.
* BEE entity = entity with
25% + 1 vote of share capital
owned by HDSAs under
flow-through principle.
* Procure a minimum of 40%
of capital goods from BEEentities by March 2015
(Scorecard requires 5% by
March 2011, 10% by March
2012, 20% by March 2013,
30% by March 2014 and
40% by March 2015).
* Procure 70% of services from
BEE entities by March 2015
(Scorecard requires 10% by
March 2011, 15% by March
2012, 25% by March 2013,
40% by March 2014 and50% by March 2015).
* Dealt with in Part 11 of
the Declaration.
* Promotes adherence to
fundamental principles of
enterprise development,
irrespective of mining
companies' turn-over; agrees
to develop mechanisms for
multi-national suppliers of
capital goods to the mining
industry to contribute towards
social development.
* No targets set.
* Dealt with in Item 4.6 of
the 2002 Charter.
* Companies undertake to give
HDSAs preferred supplier
status; commit to a
progression of procurement
over 3 - 5 year time-frame;
no specific targets set.
* Dealt with in Item 2.5 of
the Code.
* Establishes preferential
score-card of purchasers of
goods and services from
BEE compliant suppliers.
* Score-card requires, within a
6 - 10 year target, 30% BEE
procurement spend for capital
goods; 70% BEE procurement
spend on services; 30%procurement spend on
consumables; 20% procurement
spend from local SMME's and
20% procurement spend from
suppliers that are more than
50% black owned or suppliers
that are more than 30% black
woman owned.
The Revised Charter The Declaration The 2002 Charter The Code
PROCUREMENT AND ENTERPRISE DEVELOPMENT
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* Dealt with in Item 2.3 of the
Revised Charter. The only
off-set allowed against the
ownership target is that for
beneficiation, to a maximum
of 11%. Whilst this is to be
welcomed, the entire issue
of beneficiation remains
somewhat clouded. The
Charter refers to the "mineral
beneficiation framework".
This was not mentioned in
the Minister's speech or, as
far as we can ascertain,
anywhere else. We believe
that this may be a framework
* Dealt with in Part 5 of the
Declaration.
* Records the stakeholder
agreement to support local
beneficiation, consider
establishing a national
beneficiation agency, procure
the support of international
partners to facilitate skills and
technology transfer for local
beneficiation.
* No targets reflected.
* Dealt with in Item 4.8 of the
2002 Charter through general
statements.
* No targets set.
* Allows for beneficiation
off-sets against HDSA
ownership commitments
without details as to how this
is to be achieved.
* Set a compliance target of
42% of annual production
measured from the refined stage.
The Revised Charter The Declaration The 2002 Charter The Code
BENEFICIATION
6 l Mining Matters 2010
* Procure 50% of consumergoods from BEE entities by
March 2015 (Scorecard
requires 30% by March 2011,
40% by March 2012, 50%
by March 2013, 60% by
March 2014 and 70% by
March 2015).
* In addition, "multinational
suppliers" must contribute
0.5% of procurement spend
by SA mining companies to
a "social development fund."
Precisely what this fund is,
who will benefit therefrom
and who will administer this
fund remains to be clarified.
The weighting of this item is
3% in the mining company's
scorecard, yet it is the
supplier who must make this
contribution, not the mining
company. How then can the
mining company meet its
obligations and what will
the position be where no
procurement is made from
such multinational suppliers?
One fears that the mining
company will merely have
to lose the 3% from its
scorecard.
The Revised Charter The Declaration The 2002 Charter The Code
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* Dealt with in Part 8 of the
Declaration.
* Stakeholders undertake to
create an environment to
promote and encourage
diversity to retain an increase
of requisite skills.
* Minimum target of 40% by
2014 in all of top management
(board); senior management
(EXCO); core and critical
skills; middle management,
and junior management.
* Dealt with in Item 4.2 of the
2002 Charter.
* Companies to aspire to 40%
HDSA participation in
management within 5 years;
companies to focus overseas
placement and/or training
programmes on HDSA's.
* Identification of talent pool
and fast tracking and ensuring
inclusiveness and
advancement of woman.
* No measurement of
management control.
* Dealt with in Items 2.2 and
2.3 of the Code.
* Provides management control
score card in respect of board
participation and 40%
representivity of HDSA's
on executive committee.
* Also provides employment
equity score card requiring
compliance target of 40%
in top management, senior
management, middle
management, junior
management and woman
in mining (10%).
The Revised Charter The Declaration The 2002 Charter The Code
EMPLOYMENT EQUITY
* Dealt with in Item 2.4 of the
Revised Charter.
* By March 2015, achieve a
minimum of 40% HDSA
demographic representation
at each of executive
management (board) level
and senior management
(EXCO) level (Scorecard
requires both levels at 20%
by March 2011, 25% by
March 2012, 30% by March
2013, 35% by March 2014
and 40% by March 2015),
middle management level
(Scorecard requires 30% by
March 2011, 35% by March
2012 and 40% by March
2013), junior management
level (40% by March 2011
and beyond) and core and
critical skills (Scorecard
requires 15% by March
to replace the long-awaited
Beneficiation Bill which
never saw the light of day
and which has been
scrapped. The entire
mechanism in terms whereof
beneficiation is to be
measured and calculated
requires urgent clarification.
In addition, companies which
already undertake
beneficiation may be
prejudiced in that the
measurement for this item isthe "additional production
volume contributory to local
value addition beyond the
base-line". If a company
already has a high base-line
and is already beneficiating
most of its product in South
Africa, it may be difficult to
achieve significant additional
production volumes of
beneficiation.
* "Beneficiation" is defined as
the transformation of a
mineral (or a combination of
minerals) to a higher value
product, which can either be
consumed locally or exported.
The term is often used
interchangeably with "mineral
value-addition" or
"downstream beneficiation."
* Mining companies may off-
set the value of the level of
beneficiation achieved by thecompany against a portion of its
HDSA ownership requirements
not exceeding 11%.
* Compliance target is any
additional production volume
of local value addition over
and above the base-line.
Determination is unclear.
"Mineral beneficiation
framework" is awaited.
The Revised Charter The Declaration The 2002 Charter The Code
7 l Mining Matters 2010
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* Dealt with in Part 7 of the
Declaration.
* Provides for the conduct of at
least two skills audits by 2014
and assessment of institutional
and organisational absorptive
capacity by December 2010.
* Invest an incremental
percentage of annual payroll
in skills development
activities from 3% in 2010
to 5% in 2014.
* Ensure effective spend of
mandatory skills levy.
* Dealt with by Item 4.1 of the
2002 Charter.
* Provides for education,
training and scholarships to
up-skill HDSA employees to
provide HDSA employees
with skills required by themining industry.
* Dealt with in Item 2.4 of
the Code.
* Provides for measurement
through the score card,
through a 100% compliance
of skills development
expenditure, learningprogrammes and functionally
literate and numerate
programmes.
The Revised Charter The Declaration The 2002 Charter The Code
HUMAN RESOURCE DEVELOPMENT
* Dealt with in Item 2.5 of the
Revised Charter.
* Invest a percentage of annual
payroll (Scorecard requires
3% by March 2011, 3.5% by
March 2012, 4% by March
2013, 4.5% by March 2014and 5% by March 2015); in
essential skills development
activities reflective of the
demographics, but excluding
the mandatory skills levy,
including support for South
African based research and
development initiatives
intended to develop solutions
in exploration, mining,
processing, technology
efficiency (energy and water
use in mining), beneficiation
as well as environmental
conservation and rehabilitation.
* Weighting very high at 25%.
The Revised Charter The Declaration The 2002 Charter The Code
2011, 20% by March 2012,
30% by March 2013, 35%
by March 2014 and 40% by
March 2015).
* However, each level has its
own weighting. Many
companies, particularly
junior miners and prospecting
companies, have only two of
these levels, alternatively the
distinction between levels is
blurred. How the scorecard
will affect such companies is
unclear. Also, there is no
indication as to what is meant
by "core and critical skills"
or whether "demographic
representation" must be also
be applied within each level.
These aspects too require
clarification.
* In addition, existing talent
pools mining companies
must be identified and
fast-tracked to ensure high
level operational exposure
in terms of career path
programmes.
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* Dealt with in Part 9 of the
Declaration.
* Provides for developing
guidelines and adherence to
community consultation
processes.
* Intention to develop a
partnership approach towards
mine community and major
labour-sending areas,
development and considerregional (social) developments
funds for effective
implementation of social and
labour plans.
* Implement and monitor social
labour plan undertakings.
* Dealt with in Item 4.4 of the
2002 Charter.
* Stakeholders undertake to co-
operate in the formulation of
integrated development plans
for communities where
mining takes place and for
major labour-sending areas,
with special emphasis on
development of infrastructure.
* Dealt with in Item 2.6 of
the Code.
* Creates target of 1% of net
profit after tax to develop
mine community and rural
development elements.
The Revised Charter The Declaration The 2002 Charter The Code
MINE COMMUNITY DEVELOPMENT
* Dealt with in Item 2.6 of the
Revised Charter.
* Must invest in ethnographic
community consultative and
collaborative processes
consistent with international
best practices in terms of
rules of engagement and
guidelines prior to the
implementation/development
of mining projects.
* Must conduct an assessment
to determine the developmental
needs in collaboration with
mining community
development in line with
IDP's, the cost of which
should be proportionate to
the size of the investment.
* Projects will be fully detailed
in mine's social and labour
plan following consultation,
assessment and implementation.
* Scorecard compliance = up-to-date project implementation,
scored heavily at 15%.
9 l Mining Matters 2010
* Dealt with in Part 10 of
the Declaration.
* Attain occupancy rate of
1 person per room by 2014.
* Upgrade or convert hostelsinto family units by 2014.
* Promote home ownership
options and provide balanced
nutrition.
* Dealt with in Item 4.5 of the
2002 Charter.
* Establishes measures for
improving housing, including
upgrade of hostels,
conversion of hostels to
family units and promotion
of home ownership options;
establishes measures for
improving nutrition of mine
employees.
* Dealt with under Item 2.8
of the Code.
* Establishes a score card which
does not reflect the general
principles.
* Deals with upgrading housing
and equitable and sustainable
proper nutrition, food and
water.
* 100% of all hostels to be
upgraded to single
accommodation and/or
converted into housing units
by 2014.
The Revised Charter The Declaration The 2002 Charter The Code
HOUSING AND LIVING CONDITIONS
* Dealt with in Item 2.7 of
the Revised Charter.
* Convert or upgrade all
hostels into family units by
March 2015.
* Attain the occupancy rate of
one person per room by
March 2015.
* Both require compliance
(from base-line at March
2011) of 25% by March
2012, 50% by March 2013,
75% by March 2014 and
100% by March 2015).
* Facilitate home ownership
options for all mine
employees in consultation
with organised labour by2014. (Not scored).
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* Dealt with in Part 4 of
the Declaration.
* Declares intention to develop
regional approaches to
environmental impacts,
particularly acid mine
drainage.
* Research on mine closure and
mining legacies, establish a
task team to accelerate
prospecting investment, adoptan integrated development
approach through pooling of
resources, work towards a
"Mining Vision 2030."
* Not dealt with in the
2002 Charter.
* Not dealt with in the Code.
The Revised Charter The Declaration The 2002 Charter The Code
SUSTAINABLE DEVELOPMENT AND GROWTH OF THE MINING INDUSTRY
* Dealt with in Item 2.8 of the
Revised Charter.
* Sustainable development
defined as the integration
of social, economic and
environmental factors into
planning, implementation
and decision-making to
ensure that the mineral
resources development serves
present and future generations.
* Mining company must
implement elements of
sustainable development
commitments included in the
"Stakeholders' Declaration on
Strategy for the sustainable
growth and meaningful
transformation of South
Africa's Mining Industry
of 30 June 2010 and in
compliance with all relevant
legislation", as follows:
* Improvement of the industry'senvironmental management
by:
implementing
environmental management
systems that focus on
continuous improvement
to review, prevent, mitigate
adverse environmental
impact;
undertake continuous
rehabilitation on land
disturbed or occupied
by mining operations in
accordance with appropriate
regulatory commitments;
provide for the safe storage
and disposal of residual
waste and process residues;
design and plan all
operations so that adequate
resources are available to
meet the closure
requirements of all
operations. (The above being
scored by progress achieved
against approved EMPs.Weighting 12%).
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The Revised Charter The Declaration The 2002 Charter The Code
* Improvement of the industry'shealth and safety performance
by:
implementing a
management system
focused on continuous
improvement of all aspects
of operations that have a
significant impact on the
health and safety of
employees, contractors and
communities where mining
takes place;
providing all employees
with health and safety
training and require
employees of contractors
to have undergone such
training;
implement regular health
surveillance and risk-based
monitoring of employees.
(the above being scored by
progress achieved against
commitments "in the
tripartite action plan
on health and safety."
(Weighting 12%).
* Stakeholders undertake to
enhance the capacity and
skills in relevant South
African research and
development facilities in
order to ensure quality,
quick turn around, cost
effectiveness and integrity of
such facilities. To this extent,
mining companies are
required to utilise SouthAfrican based facilities for
the analysis of samples across
the mining value chain.
(The above being scored by
"percentage of samples in
SA facilities". Base-line
established at March 2011.
Thereafter 25% by March
2012, 50% by March 2013,
75% by March 2014 and
100% by March 2015).
11 l Mining Matters 2010
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* Dealt with in Part 13 of the
Declaration.
* Confirms adherence to
effective implementation of
agreed strategy.
* Comply with annual progress
reporting requirements.
* Monitor and take into account
the impact of constraints
beyond the stakeholder's
control which may result in
not achieving set targets.
* Dealt with in Item 4.14 of the
2002 Charter.
* Companies undertake to
report on an annual basis.
* Stakeholders agree to
participation in annual forums
for monitoring implementation,
developing new strategies,
government/industry
interaction; developing
strategies for intervention;exchanging experiences,
problems and solutions.
* Arriving at joint decisions;
reviewing the 2002 Charter.
* Monitoring and evaluation of
the various items under the
Code is done through the
Code score-cards.
The Revised Charter The Declaration The 2002 Charter The Code
REPORTING (MONITORING AND EVALUATION)
* Dealt with in Item 2.9 of the
Revised Charter.
* Revised score-card is
applicable.
* Must report level of
compliance with the Revised
Charter annually, as provided
for by Section 28(2)(c) of the
MPRDA in accordance with
Reporting Template.
* DMR shall monitor and
evaluate, taking into account
the impact of material
constraints which may result
in not achieving set targets.
12 l Mining Matters 2010
* Dealt with in Part 6 of
the Declaration.
* Reflects stakeholder
agreement to strengthen
MPRDA architecture to
improve efficiency and
effectiveness by 2011.
* Strengthen enforcement,
monitoring and evaluation.
* Streamline administrative
processes and eliminateinconsistent application of
regulatory frame-work.
* Harmonise with other related
legislation; finalise 2002
Charter review by August
2010; explore single authority
for environmental regulation;
transparent compliance; and
message the positive regulatory
framework to promote South
Africa as an investment
destination.
* Dealt with under Item 4.13
of the 2002 Charter.
* Merely states that the
regulatory frame-work and
industry agreements shall
strive to facilitate the objects
of the 2002 Charter.
* Not dealt with under the Code.
The Revised Charter The Declaration The 2002 Charter The Code
NON COMPLIANCE
* Dealt with in Item 3 of the
Revised Charter.
* Non-compliance with the
provisions of the Charter and
the MPRDA shall render the
mining company in breach of
the MPRDA and subject to
the provisions of Section 47
read in conjunction with
Sections 98 and 99 of the Act.
(This provision could be open
to legal challenge as
unconstitutional. Also flauntsthe consensual nature of the
Declaration).
7/27/2019 The Revised Mining Charter
13/14
* Dealt with in Part 3 of
the Declaration.
* Stakeholder agreement to
assess current research and
development, resuscitate
and research development
culture in the mining
industry, and strengthen
partnerships with research
institutions.
* Not dealt with in the
2002 Charter.
* Not dealt with in the Code.
The Revised Charter The Declaration The 2002 Charter The Code
INNOVATION
* Not dealt with in the Revised
Charter except as an adjunct
to Human Resource
Development.
13 l Mining Matters 2010
* Dealt with in Part 2 of the
Declaration.
* Provides for the identification,
evaluation and engagement
with national stakeholdersregarding critical infrastructure
such as rail, ports, electricity
and water supply.
* Not dealt with in the
2002 Charter.
* Not dealt with in the Code.
The Revised Charter The Declaration The 2002 Charter The Code
INFRASTRUCTURE
* Not dealt with in the
Revised Charter.
7/27/2019 The Revised Mining Charter
14/14
CONTACTUS
Cliffe Dekker Hofmeyr is a member of DLA Piper Group,
an alliance of legal practicesEVERYTHING MATTERS
www.cliffedekkerhofmeyr.com
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