FER-MIN-ORE GROUP STRATEGY ON BLACK ECONOMIC EMPOWERMENT
The group recognizes the importance of Black Economic Empowerment (BEE) in the current
political and economic environment. We are committed to making our contribution, developing
a sound basis for doing this and achieving a rating as a satisfactory contributor to broad based BEE.
In terms of the DTI's ranking of enterprises using their scorecard, a satisfactory contributor would
achieve a score of 40% to 64.9%. A score of 65% and above rates as good. Since our industry
sector does not have an empowerment charter, we are guided by the principles outlined in the
BEE Code of Good Practice, recently issued by the Government via the DTI.
The DTI scorecard provides for maximum score ratings as follows:
Target |
||
| 1. Equity ownership | 20 |
0 |
| 2. Management | 10 |
4 |
| 3. Employment equity | 10 |
6 |
| 4. Skills development> | 20 |
10 |
| 5. Preferential procurement | 20 |
8 |
| 6. Enterprise development | 10 |
5 |
| 7. Determined by sector or enterprise | 10 |
7 |
100% |
40% |
|
It is becoming more widely accepted that black equity ownership is not the most important criterion in addressing broad-based empowerment, and that the overall score is what is important.
The group has taken stock of its position in areas 2 to 7 above and has selected a mix of strategies
to achieve the desired satisfactory rating as indicated above. We hope to reach this target within
three years.
G A P Andersson
Chairman
August 2005