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 Mining 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.
SamQuarz’s existing old order mining right expires at the end of May 2009 and the operation submitted an application to the DME for the early conversion of this on 11 May 2006. It is expected that the conversion will be effected before the end of FY2008.
During the year under review new order mining rights were granted to Springlake for the Manor Park and Besterdale areas. An application for Lenteplaas was submitted in May 2006 and we are awaiting the outcome of this application. Applications for the conversion of the outstanding licences (Areas 1-5) will be lodged before the expiry date. One of the old order mining licences is valid until April 2008 and the remainder are valid until April 2009.
Somkhele’s mining area consists of Areas 1, 2 and 3. Prospecting takes place in Areas 4 and 5. An application for a new order mining right for Area 1 was submitted in FY2006 and was granted in June 2007. In Areas 2 and 3 mining is being conducted under an old order mining licence which is valid until April 2008. Applications for the conversion of these rights have been submitted. New order prospecting rights were granted in December 2006 for Area 4 and Area 5.
Petmin has established a transformation committee as a sub-committee of its Board. The objectives of this sub-committee are to:
© 2008 Petmin Limited
The current shareholding by HDSAs has increased from 3% in February 2004 to a commendable 43.54%
