Why Compliance with The Mining Charter is Crucial to Operations
The Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry is more commonly known and referred to as the Mining Charter. The Mining Charter and its scorecard are intended to measure the progress by stakeholders in conjunction with achieving the aims of the charter.
The Mining Charter and its Scorecard were revised in 2010 to include the promotion of sustainable development and growth in the mining industry. This is only fitting as much of South Africa’s economy was built on the success of its mineral deposits and ethically retrieving said minerals.
Compliance with the Mining Charter ensures workers and South Africa can benefit from the country’s buried treasures, as any mining consultants in Africa will tell you.
The Mining Charter dictates:
- That a percentage of the annual payroll goes towards skills development to empower all demographics in the country and strengthen South Africa’s workforce.
- That all demographics are represented in the decision-making positions of mining operations.
- That Integrated Development Plans be conducted in order to determine the contribution to the mining community in conjunction with operations.
- That housing and living standards for mine workers meet a certain standard.
- That the mining industry procures goods and products from BEE compliant entities to ensure an equitable distribution of wealth within South Africa.
- That all companies report back on their level of compliance with the Mining Charter each year in the form of a Mining Compliance Report.
Why Failure to Comply or Submit a Mining Compliance Report is Not an Option
If you fail to submit your annual report or are blatantly uncompliant with the clearly set rules of the Mining Charter you will be at risk of your project being suspended. This is the most lenient of the possible consequences though as non-compliance leaves you and your company liable to lose your mining rights and permits, meaning business will come to a screeching halt for an indefinite period of time.
Mining consultancy services can ensure you are covered in all aspects and that your annual Mining Compliance Report is on-time and in order, every time. Contact us to get your mining operations on track.