SA MINING – A CALL FOR‘ TRANSFORMATION BEYOND COMPLIANCE’
AFRICAN BUZZ •
SA MINING – A CALL FOR‘ TRANSFORMATION BEYOND COMPLIANCE’
By Fundiswa Ndaba, senior policy analyst: Public Affairs and Transformation at the Minerals Council South Africa
The Minerals Council South Africa reports back on how the mining industry has diversified supply chains, empowering and procuring from HDSA, women and youth-owned businesses.
In 2024, the Minerals Council South Africa partnered with Signa Advisors, a B-BBEE advisory and consulting services provider, to assess the progress made by its members on the inclusive procurement, supplier and enterprise development element of the Mining Charter 2018( MC2018). This assessment gathered, consolidated and analysed data, on a voluntary basis, from twentynine( 29) member companies across various commodities. The surveyed companies collectively held eighty-five( 85) mining rights.
Background Mining companies have been submitting MC2018 reports annually to the Department of Mineral and Petroleum Resources( DMPR – previously the DMRE) since 31 March 2020. Inclusive procurement had two-year and five-year transitional targets. This study assessed progress made at the end of the five-year transitional period.
MC2018, does not prescribe targets for enterprise and supplier development( ESD), however allows for offsetting against inclusive procurement targets.
Research methodology The inclusive procurement and ESD element of MC2018 was the most complex and data-intensive element of the charter. Gathering data and understanding the progress made required an intricate balance. The Minerals Council and its members therefore developed summary templates to gather high-level quantitative data from member companies. The summary templates were aligned to the data submitted to the DMPR. To complement this, qualitative data was gathered by conducting focus group sessions with member companies’ procurement managers, ESD managers, ESD beneficiaries, as well as external ESD experts to gain insights from their lived experiences, success stories, challenges and recommendations.
Results: Inclusive Procurement In calendar year( CY2023), the surveyed member’ s total procurement spend amounted to R271.5-billion, with R121.7-billion( 45 %) spent on mining goods and R149.8-billion( 55 %) spent on services.
Results: Mining Goods Target on Mining Goods: To spend a minimum of 70 % on South African manufactured goods: 21 % on Historically Disadvantaged Persons( HDP) suppliers, 5 % on women or youth-owned suppliers, and 44 % on BEE compliant suppliers.
Performance: Exceeded the 70 % target, securing full points( 15points).
• HDP suppliers: These are companies owned and controlled by at least 51 % Historically Disadvantaged Persons( South Africans). o The surveyed companies achieved 46.8 % of the spend, surpassing the 21 % target and earning full points. Almost R57- billion was spent on HDP suppliers.
• Women or youth-owned suppliers: Women-owned suppliers are companies that are at least 51 % owned and controlled by South African women. Youth-owned suppliers are companies owned and controlled by young South Africans aged between 18-35 years.
Supplied by Minerals Council South Africa and Signa Group
Mining Charter 2018 Procurement Scorecard, Inclusive Procurement and Enterprise and Supplier Development( ESD) Progress Report 2023 / 24. www. africanmining. co. za African Mining Publication African Mining
African Mining • August 2025 • 5