The impact of the Mining Charter on South Africa’s equipment providers is generally a forgotten element when dealing with legislation. If your business is in this field, this is what you need to know about Mining Charter III.
“Procurement of South African manufactured goods and services provide opportunities for expanding economic growth, creating decent jobs and widening market access to the country’s goods and services. In this regard, the latest commitment of two billion Rand by Kumba is commendable,” Mining Minister Gwede Mantashe stated at the media briefing held on Thursday to outline the components of the new Charter.
It remains in favour of local manufactured equipment which the service industry should take note of.
For mining companies to confirm local content, their goods must be procured in line with a standardised product identification coding system being developed by the Department of Trade and Industry.
Mining right holders will be expected to provide proof of local content in the form of certification from the South African Bureau of Standards (SABS) or any other entity designated by the Minister.
There is a significant benefit for the service industry as well:
On promoting Research and Development (R&D) capabilities, a mining right holder must spend a minimum of 70% of its total R&D budget on South African based entities, public or private.