A group of mining companies have signed a Memorandum of Understanding with the Limpopo Government, Trade and Investment Limpopo (TIL), and the Secretariat of the Limpopo Mining Procurement Initiative, as a first step towards consolidating the process of black economic empowerment in this sector.

The initiative, involving Anglo Platinum, Impala Platinum, Kumba Resources, and Southern Era, was a direct outcome of the recent Mining Summit held at the Meropa Conference Centre in Polokwane.

The planned programme will also aim to stimulate economic growth and job creation through a common business approach.

"The mines have reached consensus on the development of dedicated Preferential Procurement Principles, to utilise locally based service providers and suppliers, in an effort to streamline transformation initiatives of the Limpopo mines, and to get in step with local economic objectives," said TIL Chief Executive Joe Mathebula.

The participating mines have also agreed to embark on a process to measure the current scope of procurement from their suppliers, in terms of actual spending.

The Limpopo Department of Finance said that more such positive outcomes could be expected in the future, adding that a recent survey had shown that only about 30 % of the expenditure of Limpopo-based mining interests actually occurred in the province.

"The signing of the memorandum is to ensure that expenditure in the province is increased to at least 90%; this increase will impact largely on business in general, but particularly on black enterprises," said Mathe-bula.

The agreement is also expected to promote entrepreneurs, as well as small, medium and micro enterprises (SMMEs), while at the same time addressing economic growth, job creation and poverty reduction.