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

Codes of Good Practice on Black Economic Empowerment

Mining Sector Charter

Scorecard for the Broad Based Socio-Economic Empowerment Charter for the South African Mining Industry

2. Interpretation
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For the purposes of interpretation, the following terms apply:

 

Broad-Based Socio-Economic Empowerment (BBSEE) refers to a social or economic strategy, plan, principle, approach or act, which is aimed at:

 

•Redressing the results of past or present discrimination based on race, gender or other disability of historically disadvantaged persons in the minerals and petroleum industry, related industries and in the value chain of such industries; and

 

•Transforming such industries so as to assist in, provide for, initiate, facilitate or benefit from the:
•Ownership participation in existing or future mining, prospecting, exploration and beneficiation operations;
•Participation in or control of management of such operations;
•Development of management, scientific, engineering or other skills of HDSA’s;
•Involvement of or participation in the procurement chains of operations;
•Integrated Socio-economic development for host communities, major labour sending areas and areas that due to unintended consequences of mining are becoming ghost towns by mobilising all stakeholder resources.

 

The term Historically Disadvantaged South Africans (HDSA) refers to any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993) came into operation.

 

HDSA Companies are those companies that are owned or controlled by historically disadvantaged South Africans.

 

Major labour sending areas refer to areas from where a significant number of mineworkers are or have been recruited.

 

Ghost towns refer to areas whose economies were dependent on mining and therefore could not survive beyond the closure or significant downsizing of mining activities.

 

Ownership of a business entity can be achieved in a number of ways;

•a majority shareholding position, i.e. 50% + 1 share,
•Joint ventures or partnerships (25% equity plus one share).
•Broad based ownership (such as HDSA dedicated mining unit trusts, or employee share ownership schemes).