Many suppliers of mining equipment and services are not investing significant sums money in the provinces in which they operate, resulting in there not being a significant economic "multiplier effect" in these provinces, reports professional services company Deloitte & Touche’s Mark Roux.
He says this has emerged from a sustainable procurement model developed by Deloitte at the request of the Northern Cape Mine Managers‘ Association Procurement Forum (NCMMAPF).
Roux says that the procurement activities are not supporting enterprise development initiatives, and many initiatives are undertaken outside the value chain of the companies.
"There is simply no sustainable basis for those types of projects," he says.
Roux says thatmobile jaw crushing plant Deloitte has developed transformation status management systems around procurement, comprising a database of about 48 000 suppliers. Mines provide monthly information on procurement data, and it then examines its database of suppliers, and draws for each of its clients a ‘my status‘ report around procurement, indicating how much they spend. This is then broken down on a provincial basis for every mine and client. It also has a call centre, and rating certificates for all clients on the databairon ore crusher machine cost estimatedse.
"As part of our research for the Northern Cape Mine Managers‘ Association, we noticed from the database that about 72% of the suppliers on the database could not verify ownership status.
"The other observations we made are that many of the suppliers are looking for meaningful projects that they can participate in, in order to meet their own black economic-empowerment scorecard and social obligations, but do not have the opportunity to do so&quthe smallest stone crushing equipmentot; he says.
He notes that mines are not leveraging off their suppliers to get them to contribute to projects in the area in which the mine is located.
Roux says that the NCMMAPF asked Deloitte to develop a preferential approach to support businesses in the province. In doing this, he says, it helped gain additional preferential points for historically disadvantaged South Africans (HDSAs) ownership of suppliers, and it also developed a broad-based scorecard, which suppwhat type quartz stone for making glassliers are rated against. He says that if a mining company is in an area of the Northern Cape, or within a certain radius of amine, then it gains additional points.
Other initiatives include an investigation into the setting up a trust to take advantage of economies of scale, which is another big problem in procurement activities in enterprise development, says Roux, with many of the businesses supported being small, and having no real economies of scale.
Roux says that theused simplex in spinning mills for sale forum wanted these particular objectives executed so that money would be kept within the province, to identify approved HDSA suppliers for different goods and services, to increase business opportunities for those suppliers, to set minimum targets, and to encourage existing suppliers to participate. Further, he says, the forum wanted to eliminate unfair discriminatory practices, policies and procedures, establish a baseline, and measure progress against this baseline.
Roux says that Deloitte is going to encourage its suppliers in the Northern Cape, if they derive 20% of their revenue from a Northen Cape miner, to match that in relation to their own contributions. He says that it has had discussions with various suppliers in the Northern Cape, and about 90% of them are in support of such an initiative.
To take this forward, he says, the forum has suggested establishing a transformation trust, through which suppliers and mines will channel their spending and obtain their chartered scorecard points. He notes that this is just a model that has been developed, and it is still waiting for approval from the Department of Minerals and Energy in the Northern Cape.