On the 1st of May 2004 the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) was proclaimed by the State President to be in operation, as a result the Broad-Based Socio-Economic Charter for the mining industry was also put into operation to promote equitable access to the nation's mineral resources to all people of South Africa in order to substantially and meaningfully expand opportunities for historically disadvantaged South Africans.

The development of the Code of Good Practice (the Code) for the minerals industry in the Republic is a requirement provided for in section 100(1)(b) of the Mineral and Petroleum Resources Development Act, 2002. The Code does not replace the key legislation and laws relating to the minerals and the petroleum industry but serves as a statement of present policy providing an overview and confirmation of the existing mineral and mining policy that is in place. The applicability and the enforcement of this Code cannot be divorced from the Mining Charter and the key legislation in relation to the measurement of the socio-economic transformation in the mining industry. The Code can be amended by the Minister of Minerals and Energy when there is a change in mining policy and legislation.

This Code refers to a socio-economic strategy, plan, principles, approach or act, which is aimed at transforming the minerals industry so as to provide for the facilitation and benefits from the under-mentioned elements of the Code. The Code is intended for use by labour organisations, non-governmental organisations, financiers, Government departments, individuals, communities, beneficiation industry, minerals and mining industry.