Confused about the new B-BBEE codes? SA's mines are too!
The amended B-BEEE codes come into effect on the 1st of May 2015. And they're causing many a business owner headaches.
This because the new codes work out your company's BEE levels differently and that means the BEE rating you used to have is likely to change.
You're not the only one sweating bullets about how this will affect your business.
News just in reveals that the mining industry has 'asked the court to rule on whether mining firms could say they had met black-ownership rules even after shareholders had sold their stake in assets amid a dispute over how to interpret the laws,' reveals Mineral Resources Minister, Ngoako Ramatlhodi.
Read on to discover what's going on and what you can take away from it.
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Have you prepared your company for the amended B-BBEE codes?
If you haven't by 1 May 2015, you could be inviting severe losses to your company.
B-BBEE codes and mining: What's the problem here?
So what's going on with the mining sector?
Well, in 2014 South Africa, which has the world's biggest reserves of platinum, chrome ore and manganese, enacted a mining charter that compelled these mines to sell 26% of their local assets to black people by the end of last year.
And that's where the problem comes in. These mines are now saying that the investors who sold their empowerment stakes have diluted these companies' black shareholding. This because many bought shares at a discount and subsequently sold them.
And they're worried this will affect their B-BBEE score come May 1st.
Now the Department of Mineral Resources (DMR) is saying that in issuing mining rights, mines had, in fact, complied with Government's transformation plans. Adding that 'the fact that various BEE companies had sold their assets in mining, should not be used to penalise' efforts to comply.
And it's seeking the court to intervene and make an urgent ruling stating this.
Sadly, if your BEE score is less than desirable no one's going to champion your corner.
And that's why you need our help.
Do this to make sure you know how to maintain (or better) your company's current BEE score when the amendments come into effect
Understanding B-BBEE, in particular the Amended Codes, is vital to your company's continued success. But knowledge isn't enough.
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