BEE AND TRANSFORMATION

The Mining Charter, a broad-based socio-economic charter based on the Mineral and Petroleum Resources Development Act (South Africa) (MPRDA) (effected in May 2004), sets a framework to facilitate the inclusion of historically disadvantaged South Africans (HDSAs) into the mining industry. Targets and commitments are set for human resource development; employment equity; non-discrimination against foreign migrant labour; mine community and rural development; housing and living conditions; procurement; ownership and joint ventures; and beneficiation. In addition, companies applying for prospecting or mining rights must have an approved social and labour plan (SLP) that incorporates issues affecting the community as part of the application process. Most prospecting and mining rights issued by the Department of Mineral Resources (DMR) also require the holder to retain the HDSA shareholding which it had on application for the duration of the right. The HDSA shareholding requirement applies where a prospecting right holder applies for a mining right over the same minerals and property.

In 2009 the DMR published a Code of Good Practice for the Mining Industry in terms of the MPRDA which is also used in the rights application process.

According to this legislation, at least 15% of the equity of mining companies (or equivalent units of production) must be owned by HDSAs within five years, and at least 26% within ten years. Mining companies operating in South Africa are also required to apply for the conversion of their existing mining licences and prospecting permits into new order mining and prospecting rights.

The Royal Bafokeng Nation (RBN), represented by the RBN Trust through Royal Bafokeng Holdings (RBH), its investment vehicle, has a majority equity stake and control of RBPlat. This results in RBPlat being a fully empowered company.

Most mineral rights in South Africa were previously privately held and were not vested in the South African government. The new legislation amends the current ownership and regulatory regime to ensure that all mineral rights in South Africa are placed under the custodianship of, and regulated by the South African government.

Existing used mining licences must be converted into new order rights within five years, while existing used prospecting permits must be converted within two years. In this regard, the Charter and Charter Scorecard criteria must be satisfied, or undertakings given that they will be satisfied within stipulated the time periods. Currently, Royal Bafokeng Resources (Pty) Ltd (RBR), a subsidiary of the Company, holds a new order mining right over various Styldrift farms. An application has been made to transfer a 33% interest in this right to Rustenburg Platinum Mines Limited (RPM), a shareholder of the Company and also RBR’s partner in the Bafokeng Rasimone Platinum Mines joint venture. RPM in turn holds an old order mining right over various Boschkoppie farms. This is in the process of being converted into a new order mining right and an application has been made to transfer a 67% interest in the upcoming new order mining right to RBR. Similarly, RPM holds new order prospecting rights over various Frischgewaagd farms and an application has been made to transfer a 67% interest in such prospecting rights to RBR, whereafter the intention is to convert them into new order mining rights.

In respect of employment equity, the Mining Charter requires that mining companies aspire to a minimum of 40% HDSA participation in management at both junior and senior level by 2009. The Mining Charter also requires higher levels of inclusiveness and the advancement of women. Mining companies need to attain a workforce in which women make up 10% of the employees by 2009; and demonstrate their commitment to achieving these levels in their employment equity plans. 67% of the members of our Exco are HDSAs and we have already exceeded the Mining Charter HDSA targets for 2014. Women make up 12.9% of our permanent employees.

Download the 2012 Mining Charter scorecard (XLS - 149KB)

Download the 2012 Mining Charter scorecard for Styldrift (XLS - 157KB)