PROJECTS

DEVELOPMENT A PESD STRATEGY AND PROGRAMME AND COMPLIANCE SUPPORT

Kalagadi Manganese Mine, Kuruman, Northern Cape 2023 - 2025

Driving Inclusive Growth Through Preferential Procurement and Enterprise Development: Kalagadi Manganese Mine’s Strategic PESD Framework

In South Africa‘s highly regulated mining sector, companies must balance compliance with the Department of Mineral Resources and Energy (DMRE) and the Department of Trade, Industry and Competition (DTIC), while addressing local community expectations. Kalagadi Manganese Mine (KMM) partnered with Umsizi and Tushiyah to develop a bespoke Preferential Procurement and Enterprise and Supplier Development (PESD) Framework aimed at meeting these multifaceted demands.

The PESD Framework was designed to:

• Align with Mining Charter and B-BBEE targets
• Strengthening stakeholder relationships, and
• Build sustainable socio-economic impact in host communities.

The project included a comprehensive baseline assessment, spend and supplier analyses, and mapping of enterprise development opportunities. Updated policies, training sessions, and practical reporting tools were introduced to integrate PESD principles into daily operations.

Key Objectives:

• Achieve a minimum of 42 B-BBEE points for ESD
• Grow and diversify local SMMEs
• Reduce dependency on mine by creating long-term business linkages
• Source significant spend from black-owned, women, youth, and disabled-owned SMEs, and
• Foster compliance beyond the life of mine.

Challenges Identified:

• Internal capacity constraints in procurement
• Gaps in SMME compliance with legal and safety standards
• Lack of structured ESD planning and budgeting
• Irregular stakeholder engagement.

Mitigation Strategies: Included upskilling internal teams and local suppliers, enhancing procurement systems, formalizing ESD agreements, and introducing planning tools like the DTIC budget calculator.

Despite resourcing constraints, the project culminated in a practical, auditable PESD framework. It provides KMM with the tools to drive compliance, manage stakeholder expectations, and foster inclusive economic participation—laying the foundation for long-term community resilience and responsible mining.

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