Page 12 - Q&A 2019/2020

The Guidelines provide detailed formulas and examples on the calculation
of local content. Mining goods with a local value add of 60% or greater will
be considered South African manufactured goods, whilst mining goods with BEE
a local value add below 60% will be deemed not locally manufactured. The
Guidelines also stipulate that local content verification needs to be carried out
by the South African Bureau of Standards (SABS), and should the mining rights
holder pay for such verification, the cost will be interpreted as part of supplier
development costs.
Further, the Guidelines provide for the manner in which mining right holders are
allowed to do Supplier Development through Original Equipment Manufacturers
(“OEM”) programmes as follows:
• The mining right holder and OEM will identify imported components to
be locally manufactured.
• These identified components may be those already in use by the
mining rights holder or components to be supplied to the mining rights
holder within 5 years.
• The mining rights holder can claim supplier development points for
monies invested by them in the programme.
The Guidelines provide that mining right holders should report on aspects
in terms of its investment on skills development activities, graduate training
programmes and research and development initiatives as follows and using
Table Q and R:
• The quantum of contributions, the nature of skills development and
graduate training programmes as well as research and development
initiatives.
• A verifiable list of beneficiaries and categorisation of such beneficiaries.
• Provincial and / or national demographics used.
• A table indicating the calculation of the leviable amount.
Mining rights holders are further required to publish a Social and Labour
Plan (“SLP”) within 30 days of approval, using the prescribed template in the
Guidelines (Table S). The SLP needs to provide a full description of the approved
mine community development projects, duration of such projects, percentage
work done to date, project review timeline and the total budget amount. Mining
rights holders must implement 100% of the mine community development
commitments as per the approved SLP. For the duration of the relevant mining
right, the SLP needs to be reviewed every 5 years, in consultation with the mine
communities, local or district municipality and tribal authorities.

Each mining rights holder must submit an Employment Equity plan to the
regulator. This 5-year plan should contain detail on the employment equity
targets in respect of the representation of Historically Disadvantaged Persons in
various management levels, in line with the reporting templates provided in the
Guidelines (Table T, U and V), as follows:

6