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INVENTORY & STOCK MANAGEMENT POLICY

Mototolo Platinum Mine – MPLATS ENTERPRISE (PTY) LTD

1. PURPOSE

This policy outlines the standards and procedures for the accurate, secure, and efficient management of all inventory and consumables at Mototolo Platinum Mine. It aims to support uninterrupted operations, reduce wastage, prevent stockouts, and ensure full traceability of high-value materials such as fuel, safety equipment, and spare parts.

2. SCOPE

This policy applies to all departments handling inventory across mine sites, including Fuel Depot A, Maintenance Stores, PPE Stores, and Consumables Warehouses.

3. KEY OBJECTIVES

  • Ensure stock availability for critical operations

  • Prevent inventory losses due to theft, misplacement, or wastage

  • Maintain real-time, system-based inventory visibility

  • Uphold FIFO (First-In, First-Out) and/or FEFO (First-Expired, First-Out) principles

  • Enforce accountability across all stock custodians

4. STOCK CATEGORIES

Inventory is classified as follows:

  • Operational Stock: Fuel, lubricants, PPE, safety signs

  • Maintenance Spares: Mechanical, electrical, and vehicle parts

  • Consumables: Office supplies, first aid items

  • Critical Stock: High-risk items such as HAZMAT-compliant equipment, emergency tools

  • Bulk Stock: High-volume products like Diesel 50PPM and water

5. STOCK CONTROL PROCEDURES

5.1 Stock Receiving

  • All inbound stock must be verified against the delivery note and purchase order.

  • Quality inspections and documentation (e.g., CoA/CoQ for fuel or chemicals) must accompany high-risk or regulated items.

  • Damaged or incorrect goods must be reported and quarantined.

5.2 Storage Standards

  • All items must be stored in designated, secure, and weather-appropriate areas.

  • HAZMAT stock must be segregated in compliance with HAZCHEM regulations.

  • PPE and fire extinguishers must be readily accessible near high-risk zones.

5.3 Stock Issuance

  • All stock withdrawals require an approved requisition or job card.

  • Issued stock must be logged in the Inventory Management System (IMS) with date, item, quantity, recipient, and cost centre.

5.4 Cycle Counting & Stocktaking

  • Daily and weekly cycle counts for fast-moving or critical items

  • Monthly reconciliations for general stock

  • Annual full inventory audit supervised by Finance and Compliance

6. FUEL STOCK CONTROLS (DIESEL 50PPM)

  • Daily dipstick or electronic readings must be logged and signed

  • Fuel issues must include transport logs, allocation numbers, and delivery records

  • Losses must be documented and reported to the Supply Chain Manager immediately

  • All data must reconcile with SAP/IMS fuel module and Purchase Order consumption records

7. ROLES & RESPONSIBILITIES

Role Responsibility
Inventory Controller Manages stock levels, system updates, and physical records
Warehouse Manager Oversees storage conditions and security
Supply Chain Manager Coordinates purchasing, delivery schedules, and vendor performance
Finance Department Monitors stock valuation and reports discrepancies
HSE Officer Ensures compliance with hazardous material storage and signage

8. SECURITY & ACCESS CONTROL

  • All storerooms and fuel depots are access-controlled and monitored by CCTV

  • Only authorized personnel with proper clearance may enter restricted zones

  • Stock variances above acceptable thresholds will trigger investigations

9. NON-COMPLIANCE

Failure to follow procedures will result in disciplinary action, especially in cases involving:

  • Theft or misappropriation

  • Stock manipulation or false reporting

  • Negligence resulting in spoilage or stockouts

10. CONTINUOUS IMPROVEMENT

  • Quarterly reviews will assess inventory performance (shrinkage rate, lead time, availability)

  • Feedback from operations will guide updates to reorder levels and storage layouts

  • Automation and tracking technologies will be implemented where feasible

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