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APPENDIX 5 PROPOSAL ON PROMOTION OF LOCAT BUSINESS DEVELOPMENT
To further promote local economic development the Ruida lnvestments Ltd will evaluate and
opportunities for each contract including the possibility of cooperation
between local and foreign manufacturers. ln addition, the Company will publish and distribute
information explaining procedures on how to tender for and conduct business with the
assess local business
Company.
the individuals concerned to establish their own commercial
enterprises will assist the local communities. The Company recognises that a thriving
Encouraging and assisting
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community is vital to the well-being of the mining operation and will therefore give preference
to local suppliers of services provided quality and cost objectives are met. Where contractors
from outside of the immediate environs of the mine are engaged they will be encouraged to
employ members of the local communities where possible.
This will form part of the selection criteria for engagement of such service providers.
The Company does not wish to prescribe areas of business opportunities in which local
residents may be interested however, there are a number of areas in which the Company may
be able to actively create opportunities so as to concentrate on the core business of mining as
much as possible. These may include:
a
Light vehicle maintenance. The maintenance of the Company's vehicles is an area which
could be sub-contracted. provided quality and cost objectives are met. lt is also an area
where there is a large client base outside the Company.
Property Maintenance. There are many areas relating to property maintenance that
Iend themselves to subcontract by suitably qualified people or businesses. These include:
painting (internal, external and roofs), plastering and bricklaying, plumbing, electricat
work, garden services, etc. Potential customers for these services could also include:
house owners, absentee landlords, businesses and municipalities, as well as sociai and
sporting clubs.
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Bussing and Taxi Services. Small vehicles are possibly in the price range of certain people
within and around the Project Area. This service has a relatively low entry threshold, but
critically requires the highest possible standards of operating and maintenance.
Workshop Services. There are existing engineering and fabricating enterprises in the
region. lf possible, these will be encouraged to develop expertise in services and
techniques the mining industry requires.
Fu
o
rthe r assistance to
e
ntrep ren
e u rs
There are a number of external factors that could limit the successful implementation of the
Local Business Development Programme, these include:
to capital. The Company may offer to improve individual access to capital
from third party financial institutions.
Lack of access
Lack of working capital. Certain candidates for the Local Business Development
Programme may have difficulties with sufficient working capital. ln cases where the
Company deems it prudent, the Company will assist in the supply of work-in-progress
stocks and possibly abbreviated payment terms.
of
Recognition. Wherever a candidate for the Local Business Development
Programme or their company is able to provide a competitive service (ln terms of price,
quality, quantity, professionalism and service) the Company will, all other things being
Lack
equal, have a policy to support such an enterprise.
a
The Company will designate a nominee to be the responsible person to facilitate the
success of the Local Business Development Programme and to liaise with government
officials on the progress made in the implementation of the Local Business Development
Programme.
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