"The mining industry is facing challenges, it is
visibly clear that urgent interventions need to be put in place to enhance
workers' skills," she said at a black business awards ceremony in
Boksburg."The mining industry needs to transform to make sure
that we are able to be competitive, but are also able to contribute positively
and become a sector… that's a sunshine industry."The future is bright, we've got to do the right
things."For the transformation to take place various groups needed
to become part of the skills development needed in the sector.Shabangu said the mining industry could create many
opportunities for the country."As we all know it is the backbone of the South African
economy."Broad-based black economic empowerment had to spread benefits
beyond entrepreneurs and include communities, she said.
Is it just me or is there something positive that has been uttered by our Sue.
- Firstly she's not flogging that ownership dead horse notion. She's talking about something that we all can agree on – a skilled workforce.
- Secondly she refers to "broad-based black economic empowerment" which is substantially different to the "Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry."
It's long been argued that the Mining Charter in its current form poses problems and challenges. It is my opinion that a closer migration toward the CURRENT AND UNALTERED BEE codes would be better for the industry.
The mining charter has two absolutes – ownership and reporting. Reporting does require measuring compliance against the elements. As the CEO of Kumba Iron Ore writes in a letter to his suppliers (dated 25 September, 2012)
Anglo American Kumba Iron Ore must procure from BEE
entities. A BEE entity is defined as an entity of which a minimum of 25% + 1
vote of share capital is directly black owned as measured in accordance with the
flow through principle. B-BBEE ratings
do not currently form part of the Mining Charter criteria for BEE procurement.
Norman Mbazima's hands are tied here. The letter does seem to be linked to rapid mining charter compliance due to the Marikana Massacre, but this is conjecture. The charter clearly states that they need to buy certain types of goods from BEE companies with the following consequences
You should be note that Kumba Iron Ore will, henceforth, be placing greater emphasis on the use of BEE companies in its procurement of consumables, services and capital requirements. BEE ownership will be used as one of the key evaluation criteria in the awarding of contracts. Where you do not meet these transformation requirements, it is in your interest and ours that you embark on a process to do so.
This is not about black business creation, this is about taking wealth from one sector of society and moving it to another. An economy cannot grow under these circumstances. Perhaps Sue's new found interest in skills development might be a softening of those ridiculous requirements that are contained in charters and daft codes of good practice. It might be that the, so far useless, Black Business Council has whispered something in her ear.