The entrance to the Coalfields Washing Plant on the Dundee/Helpmekaar has been blocked by trucks today. The action is, according to a statement by the Endumeni/Dannhauser Business Consortium, to protest what they say is the ”unfair procurement processes used by Buffalo Coal”.
It was also said that the entrance to the Magdalena Colliery on the Nyanyadu road was blocked. In a statement, the Consortium said the ”management of Buffalo Coal was not being transparent” in awarding contracts to service providers – including the trucking of coal and other supplies such as oil, tyres etc.
The statement added that the Mining Charter, that was gazetted in 2018, laid out that local people should get preferences when it comes to providing services. “Regarding the procurement of Service: a minimum of 80% of procured services, whether professional or technical must be provided by local service providers.
“Of this, 50% of the procurement spend must be sourced from companies owned and controlled by historically disadvantaged persons, 15% owned and controlled by women, 5% from youth owned companies and 10% from BEE compliant companies. During the first year, 70% of the procurement spend must be allocated to local service providers.”
They also claimed that ”Buffalo Coal had not kept to promises made at a meeting in March.”
In his reaction Buffalo Coal General Manager, Kevern Mattison, said: “Buffalo Coal’s procurement processes are all audited in terms of legislation by the Department of Minerals and Energy.”
“The Department monitors all our procurement processes. The legislation referred to in the Mining Charter refers to new mining rights and not old ones such as these. The Minister has proclaimed that the term local (i n regards to procurement) can relate to the whole of the RSA so it is important to be familiar with all legislation and not read just what one wants to read.”
SAPS are currently monitoring the situation at Coalfields.
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