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HIGHLIGHTS: MINING CHARTER 2017

By DMR Administrator on 6/29/2017

HIGHLIGHTS: MINING CHARTER 2017

ELEMENT	SALIENT POINTS
OWNERSHIP	Minimum 30% BEE for all mining rights 8% employees 8% mine communities 14% black entrepreneurs Right-holders already at 30% not required to apportion Minimum 50% plus 1 Black Person shareholding for all new prospecting rights; must include voting rights Right-holder to pay 1% of annual turnover to the 30% BEE prior to any distributions to its shareholders. Provisions of Companies Act 71, 2008 will apply A holder who claims a Historical BEE Transaction (transaction that achieved 26% prior to 2017 Charter) must top up to 30% within 12 months. Applies even where the black person shareholding is no longer 26% due to either a BEE partner exiting or the contract with the BEE partner lapsing or the transfer of shares by the BEE partner to non-BEE persons. A holder who has maintained 26% black person shareholding is required to top up its black person shareholding to 30% within 12 months of the 2017 Charter coming into effect.
EMPLOYMENT EQUITY	Board level: 50% black; 25% to be women Executive/Top management: 50% black; 25% to be women Senior management: 60% black; 30% to be women Middle management: 75% black; 38% to be women Junior management: 88% black; 44% to be women
PROCUREMENT	70% of all mining goods to be from BEE entities 80% of all services to be from BEE entities 100% of mineral samples to be analysed by SA-based firms Foreign suppliers to pay 1% of their annual turnover to the Mining Transformation and Development Agency
BENEFICIATION	A maximum offsetting of 11% against BEE shareholding; must meet the following criteria: Invested in beneficiation since 2004; the beneficiation must be in line with the definition of beneficiation contained in the MPRDA; the Department of Mineral Resources must approve such beneficiation; 11% offsetting will not apply to beneficiation that started after 2004 but has since ceased or that has been terminated; and 11% offsetting can only be claimed if the beneficiation is still ongoing.
HOUSING AND LIVING CONDITIONS	Principles as set out in the Housing and Living Conditions Standards for the Mining and Minerals Industry developed in terms of section 100(1)(a) of the MPRDA which includes: decent standards of housing; centrality of home ownership; provision for social, physical and economic integrated human settlements; involvement of employees in the housing administrative system; affordable, equitable and sustainable health system; and proper nutrition requirements and standards
HUMAN RESOURCE DEVELOPMENT	5% investment of the Leviable Amount on skills development,apportioned as follows: 2% on essential skills development activities such as artisanal training, bursaries, literacy and numeracy skills for employees and non-employees (community members); 1% towards South African Historically Black Academic Institutions; and 2% towards the Mining Transformation and Development Agency.

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DMR Administrator