The South African mining industry is going through a process of transformation to ensure that there is greater participation at all levels by previously disadvantaged groups in a sector that has played and continues to play a major role in the economic development of the country.
Petmin supports the government’s goal of bringing about widespread change in the mining industry and subscribes fully to the principles of the sector’s Broad-based Socio-economic Charter for the Mining Industry (Mining Charter), developed in a collaborative process between the mining industry and the government, and adopted in October 2002. Together with the Mineral and Petroleum Resources Development Act (MPRDA) of May 2004, the Mining Charter sets out the conditions with which mining companies must comply in order to convert their old order mining and prospecting rights to new order rights.
The Department of Minerals and Energy (DME) devised measures for assessing the progress of mining companies in relation to particular socio-economic goals. This document, which is known as the Scorecard, was published in February 2003. Companies are required to report progress within two specific time frames: the first ends in 2009 and the second in 2014.
It is a stipulation of the new legislation that applications to convert old order mining and prospecting rights be accompanied by a social and labour plan (SLP) which sets out the company’s detailed proposals for fulfilling the requirements of the Mining Charter. All of Petmin’s operations have drawn up SLPs.
The mining right conversion for SamQuarz was approved and came into effect in April 2009. This right is valid for 30 years (the maximum number of years allowed under the Mineral and Petroleum Resources Development Act of 2002).
The application for the renewal of prospecting rights over Areas 4 and 5 has been lodged with the DMR in KwaZulu-Natal. The conversion of the mining right for Area 2 and 3 is still outstanding. Progress on the status of these applications is being monitored by management.
The application for the renewal of all five new order prospecting rights was approved by the DMR and became effective in May 2009.
Petmin has established a transformation committee as a subcommittee of its Board. The objectives of this subcommittee are to:
The Empowerdex/Financial Mail’s Top Empowerment Companies Survey conducted in 2009 (aimed at measuring and monitoring the empowerment achievements of JSE-listed companies, recognised Petmin as one of the leaders in broad-based black economic empowerment (BEE). Petmin was fourth in the mining sector.
This survey is based on the Department of Trade and Industry’s BEE Codes of Good Practice Scorecard takes into account ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development in its calculations.
Petmin management remains focused on transforming its operations and paying special attention to procurement, community development, enterprise development and employment equity, in particular the development of women.
© 2009 Petmin Limited
Petmin supports the government’s goal of bringing about widespread change in the mining industry
