Mmutle Mining Projects Pty Ltd, a 100% black owned start-up company that provides various mining services to mining companies, is reaping the benefits from the new gazetted Mining Charter.
On the 19 December 2018, Mineral Resources Minister Gwede Mantashe published the implementation guidelines of the new Mining Charter following its gazetting on September 27 2018.
The Mining Charter requires the mining industry to implement ownership, mineral beneficiation, procurement and supplier development requirements as part of their licence to operate.
John Mojalefa Mmutle, an industrial engineer by profession with more than 10 years’ experience in the mining industry has secured six contracts with different mining companies within a year.
Mmutle says he set up Mmutle Mining Projects in 2017 when Anglo American Coal South Africa (Pty) Ltd awarded a contract to Fraser Alexander Bulk Mech (Pty) Ltd. AngloCoal’s condition of the contract was that Fraser Alexander sub contracts at least 15% – 26% of the contract value to a small black owned business.
“When the contract was issued to Fraser Alexander, I saw an opportunity to start my own business. I was the Contract Manager at Fraser Alexander at the time. I submitted a proposal to be a black-owned sub-contractor. The application was successful, and I was awarded the sub-contract,” he said.
However, in May 2017 Fraser Alexander Bulk Mech was bought out by Zizwe Opencast Mining (Pty) Ltd. But Zizwe agreed to continue using the services of Mmutle Mining Projects as per the initially signed contract with Fraser Alexander Bulk Mech.
“They also agreed to provide me with the necessary skills development and become a well- established and successful company that can tender directly in future,” said Mmutle.
Once the contract with Zizwe was in place, the National Empowerment Fund (NEF) provided funding to the tune of R13m for plant, equipment and working capital. His loan application was approved in March 2018 and his business became fully operational in September 2018.
Mmutle said he had entered the market at the right time. “The changes to the Mining Charter requirements around procurement targets for Mining companies gives small businesses like mine to also participate in the economy.”
The Mining Charter stipulates that in instances where a mining right holder (Mining Company) procures goods and services of a contractor to undertake extraction or processing (crushing and concentration) of minerals on their behalf, such goods and services will be deemed to have been procured by the mining right holder.
I would not have had this opportunity if the Mining Charter had not been introduced. Now we can bid on bigger platforms with big companies wherein the big companies would look for potential Small businesses to incubate.
Mmutle says; “this is one of the ways in which mining companies can be able to meet their procurement targets, and as small mining contractors, we can also benefit through this government requirement.”
Mmutle Mining Projects based in Witbank, Mpumalanga employs 73 local people. The company recently was awarded a contract in Rustenburg with Impala Platinum.
The Royal Bafokeng Enterprise development (RBED) has also provided support in the growth of MMP.
NEF Head of Marketing and Communication Moemise Motsepe said the business was performing above the NEF projections due to additional work provided by Zizwe.
“This is an indication that black entrepreneurs are eager to play an active role in the economy and with adequate resources the NEF can make a huge difference in converting these to active participants in the economy,” he said.