PROMO TING AND ENABLING TRANSFORMA TION S tr a t egic Goal 4 T he Miner als C ouncil acts t o cr ea t e an enabling polic y en vir onment f or the mining sect or engaging with s tak eholders on all policies tha t impact the sect or t o ensur e tha t the y ar e s table c ompetitiv e and pr edictable in or der t o pr omot e in v es tment and tr ansf orma tion It is the Miner als C ouncil s aim t o de v elop a clear vie w of wha t a suc c es sful South A frican mining polic y should look lik e and the k e y principles underpinning such a polic y T he socioec onomic tr ansf orma tion o f the mining indus try is a busines s imper a tiv e tha t is support ed and adv oca t ed b y the Miner als C ouncil and its members TRANSFORMA TION T he socioec onomic tr ansf orma tion of the mining indus try is a busines s imper a tiv e tha t is support ed and adv oca t ed b y the Miner als C ouncil and its members It is also unders t ood tha t tr ansf orma tion is a journe y and not a des tina tion It w as with this mindset tha t 20 19 mark ed the end of an er a f or Mining Chart er 20 10 MC20 10 the sec ond it er a tion of the Mining Chart er and the beginning of a ne w er a f or Mining Chart er 20 18 MC20 18 the thir d it er a tion published in Sept ember 20 18 and ef ectiv e fr om 1 Mar ch 20 19 T he Miner als C ouncil pr oactiv ely endorses the tr ansf orma tion of the mining sect or and ther ef or e t ook the opportunity t o close of the er a b y c onducting a s tudy tha t w ould highlight ho w f ar the indus try and its individual mining right holders had pr ogr es sed and wher e the y curr ently s t ood r egar ding c omplianc e with MC20 10 T his w as int ended t o allo w the Miner als C ouncil and its members t o mak e bett er decisions as the y r eafrmed their c ommitment t o tr ansf orming the indus try their suppliers cus t omers and the liv es of c ommunity members both in the ar eas in which the y oper a t e and in laboursending ar eas The indus try s T r ansf orma tion Pr ogr es s R eport 20 19 T he Miner als C ouncil t ogether with the advisory frm Moshe Capital c onduct ed a surv e y of indus try tr ansf orma tion and c ommunity de v elopment perf ormanc e amongs t its members 32 member c ompanies submitt ed their Mining Chart er C Y20 18 r eports and this sample r epr esent ed 9 7 mining right holders and ac c ount ed f or an es tima t ed 7 9 5 of the o v er all mining indus try using emplo y ee headc ount as a pr o x y T he da ta w as analy sed and measur ed agains t the fv e k e y tr ansf orma tion elements namely o wnership emplo yment equity pr ocur ement human r esour c e de v elopment HRD and mine c ommunity de v elopment T he c ombined r esults of the surv e y sho w ed tha t member c ompanies had lar gely c omplied with MC20 10 tar gets acr os s all the elements e x c ept f or HRD wher e the r esults w er e slightly belo w the tar get T her e w er e a f e w mining right holders tha t f ailed t o meet the MC20 10 tar gets acr os s the v arious elements and the y w ould thus pot entially s truggle t o c omply with MC20 18 tar gets as w ell T he majority of these mining right holders w er e small junior and emer ging miners and e v en though a f e w c onc es sions ha v e been made under MC20 18 f or these miners the c onc es sions w ould only apply t o ne w mining right holders and not the bulk of them tha t ha v e e xis ting rights Ownership 9 3 mining right holders pr o vided v alid and ac cur a t e da ta and fr om this the r esults sho w ed tha t His t orically Disadv antaged South A fricans HD S As had achie v ed 3 9 2 w eight ed a v er age shar eholding agains t a tar get of 26 In the MC20 10 a ne w c onc ept of meaningful ec onomic participa tion ef ectiv e o wnership w as intr oduc ed thus those right holders tha t implement ed tr ansactions prior t o tha t w ould not ha v e been bound b y this c ondition and fr om the 9 3 mining right holders analy sed only 22 had met this crit erion Pr ocur ement and ent erprise de v elopment Pr ocur ement is one of the ca taly s ts f or br oadbased socioec onomic tr ansf orma tion as it allo w s f or HD S As t o activ ely participa t e in the supply v alue chain of an y indus try 8 7 mining right holders participa t ed under this element and c ollectiv ely pr ocur ed goods and servic es t o the v alue of R108 billion MC20 10 had set tar gets f or HD S A o wned c ompanies under capital goods c onsumables and servic es a t 40 50 and 7 0 r espectiv ely T he indus try r esults sho w tha t all these MC20 10 tar gets w er e achie v ed and e x c eeded Pr ocur ement tar gets achie v ed agains t the MC20 10 tar gets Measur e MC20 10 tar get A chie v ed 20 18 Capital goods 4 00 7 54 C onsumables 5 00 7 9 0 Servic es 700 7 5 1 W eight ed a v er age P age 86