Petmin and transformation

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), adopted in October 2002 and revised in September 2010, through collaborative processes between the mining industry and the government. 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), now the Department of Mineral Resources (DMR), 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. Interim progress reports from companies were due in 2009, ahead of the final deadline to meet the targets of the Scorecard, which is set for 2014.

It is a stipulation of the 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.

Conversion of mining rights

SamQuarz

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 MPRDA).

Somkhele

Somkhele is the holder of a new order mining right over Area 1 of the property, which was granted in 2007 and is valid for 27 years. The renewals of prospecting rights over Areas 4 and 5 of the property were granted on 30 June 2010. The application for the conversion of the old order mining rights over Areas 2 and 3 was submitted on time and in accordance with the MPRDA and we await its approval.

Veremo

The application for the renewal of all five new order prospecting rights was approved by the DMR and became effective in May 2009.

Transformation committee

Petmin has established a transformation committee as a subcommittee of its Board.

The objectives of this subcommittee are:

• to develop framework policies and guidelines for the management of transformation issues including procurement, employment equity, human resource development and retention, and social development matters;
• to ensure the progressive implementation of these throughout the Petmin Group;
• to provide a forum for discussing transformation issues and presenting key findings to the Board from the ongoing monitoring and reporting processes;
• to develop, implement, monitor and review the Group’s progress in terms of transformation and compliance with the Mining Charter and MPRDA;
• to ensure that there is a disciplined and co-ordinated approach to all transformation and social issues within the Group; and
• to manage the Group’s human resources function and to facilitate the Group’s internal communication processes.

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.