Search Knowledge Base Articles

PROCUREMENT POLICY

Mototolo Platinum Mine – MPLATS ENTERPRISE (PTY) LTD

1. Purpose

This policy sets the framework for transparent, ethical, and efficient procurement of goods and services at Mototolo Platinum Mine. It ensures that all acquisitions are made in a cost-effective, timely, and compliant manner while promoting fairness, B-BBEE development, and operational integrity.

2. TENDERING & RFQ PROCESS

2.1 Procurement Channels

Procurement is conducted through one or more of the following mechanisms, depending on the nature and value of the goods or services:

  • Request for Quotation (RFQ)

  • Formal Tender (RFT or RFP)

  • Emergency Procurement (subject to special approval)

  • Contract Renewal/Extension (based on performance review)

2.2 RFQ Process

  • A Purchase Requisition (PR) is raised and approved internally.

  • RFQs are issued via the SAP Ariba platform or direct email to pre-approved vendors.

  • Suppliers must submit full quotations before the specified deadline, including:

    • VAT-inclusive pricing per item

    • Delivery timelines

    • Technical specifications

    • Valid compliance documents (see Section 3)

  • Late submissions will be disqualified unless extension is formally granted.

2.3 Tender Process

  • Tenders are used for high-value, strategic, or long-term contracts.

  • A public or invited bidding process is launched with a detailed specification document.

  • Bids are evaluated based on functionality, price, B-BBEE level, and capability.

  • All tender participants must sign a Non-Disclosure Agreement (NDA) to prevent bid irregularities.

  • Shortlisted suppliers may undergo site audits and interviews before award.

2.4 Bid Evaluation Criteria

  • Technical compliance

  • Delivery capacity

  • Safety & HSE track record

  • Total cost of ownership (TCO)

  • Warranty and after-sales support

  • B-BBEE status and transformation impact

  • Industry reputation and client references

3. VENDOR APPROVAL CRITERIA

3.1 Registration Requirements

All vendors must be registered and approved before any transaction. The following documents are required:

  • Company Registration (CIPC)

  • Valid B-BBEE Certificate or Affidavit

  • Tax Clearance Certificate (PIN or SARS status)

  • Bank Account Confirmation

  • Proof of Insurance (where applicable)

  • Relevant licenses and certifications (e.g., Fuel License, HAZMAT, SABS)

  • Company Profile detailing capacity, infrastructure, and experience

  • Signed Mototolo Supplier Code of Conduct and Confidentiality Agreement

3.2 Due Diligence

  • Vendor risk assessments are conducted for financial health, compliance history, and safety performance.

  • Random background checks may be initiated, including directors' standing and conflict of interest checks.

  • Vendors are required to disclose any legal disputes or blacklisting from other institutions.

3.3 Probationary Engagement

  • New suppliers may be engaged on a probationary basis.

  • Probation includes capacity audits, adherence to HSE and operational standards, and performance reviews.

  • Failure to meet compliance expectations may lead to suspension or removal from the vendor database.

4. COMPLIANCE & ETHICS

  • No gifts, kickbacks, or personal incentives are permitted in any procurement process.

  • All procurement must follow transparent procedures in line with PFMA, MFMA, and the Mine Health and Safety Act.

  • Any attempt to unduly influence decision-makers will result in disqualification and potential legal action.

5. PROCUREMENT REVIEW & AUDIT

  • The Procurement Unit is subject to regular internal and external audits.

  • Suppliers may be required to cooperate with audit teams by providing relevant records.

  • Continuous improvement and feedback mechanisms are in place to strengthen the procurement process.

Did you find this article useful?

Related Articles