The mining industry has placed an increased focus on transformation. This is evident from Anglo Platinum’s recent multi-billion rand BEE deal and the current debate surrounding the Mining Charter’s inability to exact transformation in the industry.
Another key focus has been on safety with South Africa’s gold mines being the deepest and deadliest in the world. So far this year there have been a total of 92 deaths and the Department of Minerals and Resources is currently reviewing the Mine Health and Safety Act in a bid to strengthen enforcement and remove ambiguities.
South Africa’s top players are under pressure to meet Level 4 BBBEE or better with high Safety levels in order to increase revenue and retain mining rights.

Cargo Carriers, JSE-listed logistics services provider, has recently made its return to the mining industry with a Level 4 BEE status. The company has been steadily increasing its empowerment credentials, moving from a level 7 to a Level 4 in a matter of only four years.
This stems from the company’s long-term plan to raise its BEE score, not just for the sake of compliance, but for the ability to win more business and create greater capacity for growth. To achieve this, years ago Cargo Carriers formed a BEE committee to launch the company into a new age of compliance.

“Our divers and extensive BBBEE programme has placed Cargo Carriers in South Africa’s top three listed and empowered transport companies,” says Andre van Vuuren, Marketing Director at Cargo Carriers.
“The reason we now enjoy an increased score has a lot to do with our skills and enterprise development programmes, as well as our commitment to social development in the communities in which we operate.”

Skills development was by far Cargo Carriers’ most improved score, rising from 5.6 in 2010 to 15, the maximum amount of points that can be awarded. This is a strategically important criterion due to the capacity and skills challenges that desperately need resolution to truly build a better future for all.
“In terms of equity based empowerment,” says Boitumelo Choche, Group Audit and Risk Manager at Cargo Carriers. “We have set up and now support a number of owner-driver businesses, and have established several industry-focused and empowered business with previously disadvantaged industry participants.”

The owner-drivers are well looked after as Cargo Carriers assists with financial planning, offering training courses to further their abilities as both drivers and business owners.
These owner-driver schemes are subject to a very careful selection process, after which a rigorous monthly operational and financial mentoring process begins.

“As a company that believes that South Africa’s future can only be secured through real transformation, we continuously strive to improve our BBBEE scores,” says Choche.
It is this commitment to transformation and safety that wins and maintains large contracts for Cargo Carriers, especially in the mining sector. The leap from Level 4 to Level 3 may take more than the yearly lead time from Level 7 to Level 4, but Cargo Carriers is already making a concerted effort to become the most empowered logistics services provider in the country.
Mining companies, whose compliance and transformation obligations are challenged by the industry charter for mining rights renewal, could do worse than open up a conversation with Cargo Carriers.