The Mining Charter 2018 represents a significant regulatory framework for South Africa’s mining industry. It aims to address historical inequalities and promote equitable access to mining opportunities. This charter sets various targets for employment equity, housing and living conditions, human resource development, and procurement practices. These targets are crucial for ensuring sustainable development and community upliftment in mining areas.
Note of caution regarding the blocks below. As we indicated above, some of the targets below have been changed. In addition, these targets are dynamic and new regulations continually surface. Hence, in dealing with the targets below, it is best to contact us to ensure that you are working on your own unique correct targets.
See 2018 Mining Charter Targets below
Employment Equity Scorecard Targets
See the Employment Equity Scorecard below
| Commitment | Group | Gender | Unit | MC3 Targets | Weighting |
| i) Employees with disabilities | All | Both | % | 1.5% | 2% |
| a) Board | Black (All HDP) | Both | % | 50% | 2% |
| b) Executive management | Black (All HDP) | Both | % | 50% | 4% |
| c) Senior management | Black (All HDP) | Both | % | 60% | 3% |
| d) Middle management, professionals and specialists | Black (All HDP) | Both | % | 60% | 2% |
| e) Junior Management | Black (All HDP) | Both | % | 70% | 2% |
| a) Board | Black (All HDP) | Female | % | 20% | 2% |
| b) Executive management | Black (All HDP) | Female | % | 20% | 3% |
| c) Senior management | Black (All HDP) | Female | % | 25% | 3% |
| d) Middle management, professionals and specialists | Black (All HDP) | Female | % | 25% | 2% |
| e) Junior Management | Black (All HDP) | Female | % | 30% | 2% |
| h) Core and Critical Skills | Black (All HDP) | Both | % | 60% | 3% |
Housing and Living Conditions
See the HLC targets below.
| Commitment | Unit | MC3 Targets | Weighting |
| The mine upgraded all hostels into family units | Yes=1,No=0 | 1 | 100% |
| Occupancy of a hostel to 1 person per room | Yes=1,No=0 | 1 | 100% |
| Agreement with Org. Labour reached on a HLC plan and a certified copy in place. | Yes=1,No=0 | 1 | 100% |
| Outline commitments to comply with new HLC regulations | Yes=1,No=0 | 1 | 100% |
| The mine is enabling all employees to have acceptable housing and living conditions | Yes=1,No=0 | 1 | 100% |
| Comply with the provisions of Government Notice 449 20 March 2019 on HLC | Yes=1,No=0 | 1 | 100% |
| Aligning HLC with the local IDP | Yes=1,No=0 | 1 | 100% |
| Developing social, physical and economic integrated housing development within a mine community | Yes=1,No=0 | 1 | 100% |
| Offering employees a range of housing options which includes. amongst others, rental accommodation, home ownership, government led social housing and living out allowance: | Yes=1,No=0 | 1 | 100% |
| Did the mine put measures in place to educate, train and inform employees of the housing options offered by a mining right holder. | Yes=1,No=0 | 1 | 100% |
| When necessary, national standards approved by the Department of Human Settlement for the construction of housing | Yes=1,No=0 | 1 | 100% |
| Promote the use of financing schemes in a transparent manner | Yes=1,No=0 | 1 | 100% |
| Where applicable, a detailed plan to finalise single and family units hostel conversion upgrades to national standards | Yes=1,No=0 | 1 | 100% |
Human Resource Development
See the Human Resource Development targets below
| HRD | % Expenditure on HDI training and development: Leviable Salareis and Wages | % | 5% | 30% |
Mine Community Development
See the Mine Community Development targets below.
| Aspect | Commitment | Unit | MC3 Targets | Weighting |
| Consultation | Did the company consider the profiles of relevant communities, and identify credible leaders of the communities? | Yes=1,No=0 | 1 | 100% |
| Consultation | Did the company consult with such leaders prior to the implementation of projects? | Yes=1,No=0 | 1 | 100% |
| Consultation | Did the company consult with the leaders to identify projects within the needs analysis and prioritise such projects? | Yes=1,No=0 | 1 | 100% |
| Consultation | Did the company consult with the relevant Ward/Municipality to determine possibility of partnerships in respect of identified projects and the Ward/Municipality’s Integrated Development Plan (IDP)? | Yes=1,No=0 | 1 | 100% |
| Consultation | Has provision been made for the transfer of skills and capacity building within the relevant community? | Yes=1,No=0 | 1 | 100% |
| LEC Project Commitments | Have the jobs been created as per the SLP commitments? | Yes=1,No=0 | 1 | 100% |
| LEC Project Commitments | Have all the money budgeted for on LED projects as committed in the SLP been spent? | Yes=1,No=0 | 1 | 100% |
| LEC Project Commitments | Have all the annual milestones been met in the LED projects as pre the SLP Commitments? | Yes=1,No=0 | 1 | 100% |
| MCIII Policy | Can the company demonstrate transparent consultations? | Yes=1,No=0 | 1 | 100% |
| MCIII Policy | Are the LED projects aligned to the priority Needs in Area | Yes=1,No=0 | 1 | 100% |
Ownership Targets
See the ownership targets below. (The Gauteng HIgh Court had set aside these targets).
| Aspect | Commitment | Unit | MC3 Targets | Weighting |
| Consultation | Did the company consider the profiles of relevant communities, and identify credible leaders of the communities? | Yes=1,No=0 | 1 | 100% |
| Beneficiation Equity | Equity Equivalent | % | 5% | 100% |
| Existing Mining Rights | Percentage Share | 26% MC2 | 100% | |
| New mining rights | Community Shares | % | 5% | 100% |
| New mining rights | Employee Shares | % | 5% | 100% |
| New mining rights | Women shareholding | % | 5% | 100% |
| New mining rights | Meanigful and effective participation in place | Yes=1,No=0 | 100% | 100% |
| New mining rights | Shareholding excl women | % | 15% | 100% |
Read below the High Cour ruling on MC 2018
Despite the above targets, we now move to the Gauteng High Court’s ruling that had significant implications for the mining sector, particularly regarding equity and inclusive procurement regulations.
BEE Shareholding
As a result of the court case, one of the key clauses affected is the recognition of BEE shareholding, specifically for existing mining right holders. The court has ruled that mining companies achieving a minimum of 26% BEE shareholding at any point during their mining right’s existence, and whose BEE partners exited before the Mining Charter, 2018 commencement, should be recognized as compliant throughout their mining right’s duration. However, this recognition will not be applicable upon renewal of the mining license.
Continuing consequence
Additionally, the court has nullified the provision that allowed for the recognition of continuing consequences, such as empowerment credentials, in respect of an existing mining right. This recognition was not transferrable and would lapse upon the transfer of the mining right or part thereof. The court also ruled that the recognition of continuing consequences would not apply to applications for new mining rights or renewals.
Furthermore, the court has set aside clauses related to beneficiation equity equivalent against the ownership target. This includes the definition of beneficiation and clauses outlining how mining right holders can claim equity equivalent benefits. These benefits are designed to encourage investment in South African-based beneficiation entities and other beneficiation-related activities.
Inclusive procurement
The ruling also impacts inclusive procurement targets for mining goods and services. The court has nullified the minimum procurement spend requirements for South African manufactured goods and services, as well as the allocation percentages for goods produced by Historically Disadvantaged Persons, women, youth, and BEE compliant companies. The Governemnt intended for these targets to promote economic growth, job creation, and market access for South African goods and services.
Given the above changes, how do we assist you in compiling your Mining Charter compliance?
Our Mining Charter Compliance Assessment offering
The quickest method to measure your Mining Charter compliance is by using our specially designed spreadsheet.
Snapshot of our spreadsheet
We have included every compliance aspect from the mining charter as data points. All you need to do is complete the questions and send it to us. The spreadsheet covers three main topics:
Firstly, we use scorecard categories, aspects, and commitments are to calculate your level of B-BBEE compliance. By filling in the relevant data, you can quickly determine how well your mine adheres to the required standards.
Secondly, the reports section lists every report your mine needs to complete. You simply capture the status of your report completion, which then indicates your level of report readiness and compliance. This helps in ensuring all necessary documentation is up-to-date and accurate.
Lastly, policy compliance addresses over 30 new policy issues. We have identified them all in our spreadsheet, allowing you to assess your level of compliance with these new policies. This provides a comprehensive overview of where your mine stands.
To get started, we provide you with the spreadsheet content. Once you complete all the data points, you will receive a quick diagnosis of your mine’s compliance status.
Output of Mining Charter Compliance Analysis below
Should you need more assistance beyond completing our compliance spreadsheet, we van coach you. This way, we can make the complex requirements digestible. Thus, ensuring you fully grasp and comply with all necessary regulations.
History of Mining Charger Government Gazette Notices
Click here to download the latest Gauteng Court findings on Mining Charter III