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Mining Charter Compliance

The Broad-Based Socio-economic Empowerment Charter for the Mining and Minerals Industry, 2018 (“Mining Charter 2018”) published in terms of section 100 (2) of the Mineral and Petroleum Resources Development Act, 2002 requires mining companies to improve the standard of housing and living conditions of mine employees as stipulated in the Housing and Living Conditions Standard.

In partnership with

The revised Housing and Living Conditions Standard for the South African Mining and Minerals Industry, 2019 (“the Standard”) was published on 11 December 2019 and is in effect. A Housing and Living Conditions Plan (“Plan”) needs to be submitted to the Department of Mineral Resources and Energy (“DMRE”) before 10 December 2020.

Historically in South Africa, the black mining workforce was housed in single-sex hostels or compounds. Mine employees’ social lives, health and productivity was severely hampered. Over the years, the mining industry has made significant improvements in the provision of accommodation to employees, however, there remains a need to improve the housing and living conditions of mine employees. The Housing and Living conditions element of The Mining Charter 2018 refers to binary (yes or no) compliance. Based on the 2009 Standards, the interpretation is that this element requires 100% compliance with commitments made in the Plan. Non-compliance places mining right holders at risk of suspension or cancellation of mining right (section 93 or 47 of the MPRDA).

What are the principles of the Standard?

Principles of housing conditions:

  • Decent and affordable housing
  • Provision for home ownership
  • Provision for social, physical and economic integration of human settlements; and
  • Secure tenure for mine employees in housing institutions

Principles of living conditions:

  • Proper healthcare services;
  • Affordable, equitable and sustainable health system, and balanced nutrition

A mining right holder must offer mine employees a range of housing options which includes, amongst others rental accommodation, private home ownership, government subsidised home ownership and living out allowance.

How Transcend and Nupen Straue De Vries can help you

A range of housing options is needed to cater for the diverse circumstances and preferences of mine employees, however, the size and profitability of mine operations significantly impacts the development of the Plan. Further, It is critical to ensure that an inclusive process is followed which allows all stakeholders, including employees and organised labour, to participate in developing the Plan.

Shernon Davis, Director at Transcend, a leading provider of transformation and Mining Charter services to South Africa’s Leading mining houses and Lili Nupen, Director of Nupen Straue De Vries, a specialist regulatory and commercial mining, construction and environmental law firm have teamed up to provide the following specialist services in developing and submitting Housing & Living Conditions Plans:

 

  • A review of the legislative framework and applicability to your organization;
  • Stakeholder mapping and impact on the process;
  • Building an understanding of your current housing Plan;
  • Data collection to determining the current housing needs and eligible employees;
  • Market knowledge and expert advice on how to unpack best practice in your industry;
  • Feasibility studies;
  • Drafting the Plan;
  • Submitting the plan
  • Implementation; and
  • Monitoring.
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