An assessment of the economic need for SMEs playing a supportive role in the mining sector

Abstract

This study shows the economic need for SMEs playing a supportive role in the South African mining industry. The main issues arethe business decision of mining companies to outsource function rather than to have it in-house,the differentiation methods mining companies used to distinguish between large companies and SMEs and BBBEE regulation. The Delphi study method was used. A questionnaire was sent out to the group of experts. The group of experts consists of senior managers at procurement departments of mining companies. All of these companies are members of the South African Chamber of Mines. The study showed that the need for SMEs to support the mining industry is increasing due to the increase in outsourcing, differentiating between large and small companies as well as the partnering of SMEs with HDSA's to comply with BBBEE regulations.