April 21, 2021

Procurement meeting held by the Department of Mineral Resources and Energy

The Gamagara Corridor Chamber of Commerce and Industry (GCCCI) has learned, with aghast, of a meeting convened by the Northern Cape Regional Manager of the Department of Mineral Resources and Energy (DMRE) on Wednesday, 10 March 2021 wherein the DMRE purportedly called the mines for an audit, only to realise that the meeting was in fact a procurement related meeting.

Procurement meeting held by the Department of Mineral Resources and Energy

Procurement meeting held by the Department of Mineral Resources and Energy

The Gamagara Corridor Chamber of  Commerce and Industry (GCCCI) has learned, with aghast, of a meeting convened by the Northern Cape Regional Manager of the Department of Mineral Resources and Energy (DMRE) on Wednesday, 10 March 2021 wherein the DMRE purportedly called the mines for an audit, only to realise that the meeting was in fact a procurement related meeting.

This is according to THE GAMAGARA CORRIDOR CHAMBER OF COMMERCE AND INDUSTRY.

“What irks the GCCCI about the meeting is that in attendance were Gauteng based companies who came fully prepared and ready with glossy presentations and ready to submit various business proposals to the mining houses operating in Gamagara Mining Corridor. “


“We have been reliably informed that this was not the first meeting and that companies like Bidvest also previously made presentations. These extra-jurisdictional overtures by the DMRE towards Gauteng based companies cannot be condoned and must be condemned and rejected in the strongest terms.”

“It is by no means rocket science that Gauteng based companies are not investors in the Northern Cape economies; these Gauteng based companies extract wealth from our municipalities to reinvest those funds into their own metros and by perpetuating this century old cycle, the Northern Cape remains marginalised, underdeveloped and its towns remain constantly on the verge of economic collapse due to the outflow of capital and opportunities, resulting in many towns, projected to prosper due to their mineral wealth, becoming ghost towns once mining operations reach the end of their lifespan.”

“The GCCCI is incensed by the actions of the DMRE, and rightfully so, because for a long time localised businesses from the Gamagara Corridor have been side-lined and marginalised and have not eked out any benefits from the mineral proceeds of our Gamagara Mining Corridor. The DMRE’s posture in this ill-advised move speaks volumes of how, for decades, local mining business in the Northern Cape in general and the Gamagara Mining Corridor in particular have been undermined by our own supposed leaders in the province.”

“The notion of localised and what it means has long been resolved and that debate will no longer be entertained and/or re-opened in the Gamagara Corridor.”

We hereby wish to reaffirm the following geographical elements of the localised definition:-

1. Kgatelopele Local Municipality;
2. Tsantsabane Local Municipality;
3. Gamagara Local Municipality;
4. Ga-Segonyanya Local Municipality;
5. Joe Morolong Local Municipality; and
6. Griekwastad.

“The Gamagara Corridor is part of the Northern Cape and South Africa and its marginalised character in terms of business proceeds will no longer be tolerated under the guise that local is South Africa. The procurement budgets of mining houses runs into multi billions and as it is, the bulk of that budget is already allocated to businesses that are domiciled in municipal areas outside the Gamagara Corridor. We are determined to reverse this anomaly and force onto the agenda of the DMRE the recognition that the Gamagara Mining Corridor is part of Northern Cape and South Africa.”

“The time has arrived that our peripheral existence as business chambers and forums of the Gamagara Mining Corridor in particular be dealt with once and for all. We have worked tirelessly to create engagement platforms that are qualitative and meaningful with outcomes that are beneficial to localised companies.”

“We would also like send out a stern warning to the Department of Economic Development and Tourism in the Northern Cape Province to track and monitor the activities of Mr Michael Moseki who, in our view, is a law unto himself and accountable to no one.”

“We previously raised our objection on the continued usage of the Northern Cape SMME Procurement Portal as an alternative to proper and meaningful engagements. The “hit rate” of the portal is not satisfactory and if anything it is used or misused to favour so called ‘transactionally ready’ companies and the outcomes are always not in favour of localised companies.”

“GCCCI demands the immediate stop to any further of funding of the portal by the Northern Cape Mine Managers Association (NCMMA) and Tirisano Trust.”

Where does the Northern Cape SMME Procurement Portal reports?

“The pyramid of procurement in terms of entry, mining related services and core business of the mining houses has not shifted significantly for Gamagara Corridor businesses. Many of our businesses only benefit at entry level and for opportunities related to enterprise development and the shift to supplier development is still very negligible.  This is what the DRME fails to understand and its preoccupation with ‘local’ is South Africa is deleterious and counterproductive to our advancement.”

“GCCCI invites the DMRE and DEAT to be part of our continuous engagement programs with the mining houses,  and to stop relying on measures that clearly fail to deliver qualitative outcomes and clear winning strategies for our localised businesses.”

As a direct result of these unfortunate action by the DMRA, the following activities are planned:

1. Request a meeting with the Minister and Director-General of DMRE.

2. Request a meeting with the Premier and MEC for Economic Development and Tourism.

3. Picketing at the Northern Cape Regional Office of the DMRE.

4. Picketing at the Northern Cape Department of Economic Development and Tourism.

5. Request a meeting with the Gamagara Mining Corridor General Mine Managers of the Northern Cape Mine Managers Association.

6. Picketing at the mines in the various municipal areas to stop further procurement meetings with DMRE and NC DEAT.

7. Meeting with the Mineral Council of South Africa .

*Press release

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