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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Mining Sector Charter

Amendment of the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry

2. Elements of the Mining Charter

2.2 Procurement and Enterprise Development

 

 

Local procurement is attributable to competitiveness and transformation, captures economic value, presents opportunities to expand economic growth that allows for creation of decent jobs and widens scope for market access of South African capital goods and services. In order to achieve this, the mining industry must procure from BEE entities in accordance with the following criteria, subject to the provisions of clause 2.9:

 

• Procure a minimum of 40% of capital goods from BEE entities by 2014;

 

• Ensure that multinational suppliers of capital goods annually contribute a minimum of 0.5% of annual income generated from local mining companies towards socio-economic development of local communities into a social development fund from 2010;

 

• Procure 70% of services and 50% of consumer goods from BEE entities by 2014.

 

The targets above are exclusive of non-discretionary procurement expenditure.