Page 15 - Q&A 2019/2020

Mining companies must further procure 44% of mining goods and 10% of
BEE mining services from South African BEE compliant companies. 5% of South
African manufactured goods must be procured from Woman or Youth owned
and controlled companies. The services sourced from South African based
companies must equate to 15% from Woman owned and controlled companies
and 5% from Youth owned and controlled companies.

The Guidelines here also provide detailed formulas to calculate the budget
of each mentioned category in the procurement of local goods and services
by mining right holders. If targets for a budget category are exceeded, the
maximum percentage weighting contained in the Mining Charter will be
awarded and no bonus points will be given. Inclusive procurement reporting
templates can be obtained in the Guidelines under table H for mining goods,
and table I for mining services.

Enterprise & Supplier Development
Enterprise and Supplier Development initiatives can only be recognised if the
beneficiaries of these initiatives qualify as Historically Disadvantaged Persons
owned and controlled companies, with an annual turnover of less than R50
million. Furthermore, all Enterprise and Supplier Development initiatives needs
to be formalised in a written agreement between mining right holders and
Enterprise and Supplier Development beneficiaries, for a minimum period of five
years.
Supplier Development through Original Equipment Manufacturers

Mining rights holders are allowed to do Supplier Development through Original
Equipment Manufacturer (OEM) programmes with their suppliers, in the
following manner:

• 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 right holder or components to be supplied to the mining right
holder within five years.
• The mining right holder can claim supplier development points for
monies invested by them in the programme.

The Guidelines further stipulate that Supplier Development done through OEM
programmes will only be recognised if it is done on Historically Disadvantaged
persons owned and controlled companies, woman and youth owned and
controlled companies or BEE compliant companies with a level 4 BEE status
and minimum Black ownership of 25%+1 vote.

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