Overview of the re-commissioning of the Ergo Training Centre
Ergo Mining (Pty) Ltd re-commissioned the Ergo Gold, Uranium and Acid Plant in Brakpan so as to enable the company to process the surface gold reserves that it holds within the Ekurhuleni Municipal area.
In line with the Minerals and Petroleum Resource Development Act, mining houses need to submit a social and labour plan (SLP) to the Department of Minerals and Energy Affairs (DME), who must approve the plan prior to the granting of the new order mining right conversions. Ergo has submitted a comprehensive SLP to the DME that entails the re-commissioning of the training centre at Ergo. Extensive consultation has taken place with all affected stakeholders including the Ekurhuleni municipality, and the plan has been integrated and aligned with the Ekurhuleni local economic development plan.
Ergo Mining (Pty) Ltd, in formulating and submitting the SLP, acknowledges the following key strategic issues that form the foundation of this plan:
- There is a critical shortage of skills in the country, and especially technical skills in the engineering, mining, metallurgical and IT fields. This skills shortage is being experienced by Ergo in terms of its own operating requirements.
- Corporate investment strategies need to go beyond the bounds of traditional normal business practice if the country’s capacity for growth and prosperity is to be increased.
- The need for job creation, people empowerment and the upliftment of the quality of life of all South Africans is a collective need and cannot be addressed solely by government.
- To address the above, there is a critical need to form strategic alliances with other private and governmental bodies in order to develop the capacity for national growth and stability.
With the above strategic needs in mind, Ergo has developed a comprehensive business plan and business model for the facility that is known as The Ekurhuleni Business Development Academy. It encompasses the following:
- A two phased implementation plan as follows:
- Phase 1 (up until 2011). Ergo will set up the infrastructure and cover all capital and operating costs to the tune of approximately R52m.
- Phase 2 (2012 – 2013). Affiliate members and sponsors will be invited to partner Ergo in managing and running the facility according to a business model that will ensure its viability and sustainability. Certain guaranteed services to agreed levels will be provided to Affiliate members who in turn will contribute a fixed financial amount towards the overhead and operational requirements of the Academy.
- At the end of 2013 Ergo reserves the right to donate or sell the facility as a going viable and sustainable concern to a Trust that has virtually been finalised to manage the facility on behalf of the communities within the Ekurhuleni municipality and its business partners. At this point Ergo reserves the right to become a paying affiliate member only. All capital and operating costs will need to be covered by the revenue stream to be generated by the facility as well as by contributions made by the Affiliate Members, Sponsors and other Governmental or private strategic partners.
- A Management Board, reporting to the Trust, and governed by an approved and audited constitution, is currently being finalised that will ensure legitimate governance of the facility. The constitution provides for representation by all key stakeholders, including Affiliate members and the communities.
- The business model itself consists of the following key components:
- The Academy will be set up to cater predominantly for the technical skills indicated above but also for management, leadership and general portable skills such as bricklaying, plumbing etc. All trade tests and final accreditation will be done by the Academy
- Up to 7 main sectors will be catered for, and between 3 and 5 Affiliate members will be recruited to partner Ergo in each of the sectors. An example of such a strategic partnership is the alliance already formed with Siyafunda and its sponsors being SAP, CISCO and Microsoft in the provision of IT infrastructure, training and skills.
- The Academy will focus not only on skills development but rather on the full process of business development. This means that learners who go through the facility will also be assisted either in finding employment, or in setting up small businesses and they will be given all the entrepreneurial support necessary to make this happen. This will include developing capacity amongst potential entrepreneurs with the writing of business plans, conducting feasibility studies, developing financial plans and controls, identifying market outlets and locating business premises.
- A job creation continuum will be facilitated whereby for example, persons attending brick laying classes will be assisted in securing employment on a contractual basis with other company managed SLP projects such as the building of low cost housing. In the same way, a cornerstone principle for the Academy’s viability and sustainability will be the implementation of incubation projects that will generate revenue for the Academy once persons have been trained to participate in such projects.
- The Academy will be the anchor project around which many of the other SLP projects within the Ekurhuleni Municipality will revolve. The purpose of this, as well as the make up of the business model as a whole, is to ensure that sufficient critical mass be engineered to ensure the sustainability and viability of the Academy.
- A significant revenue stream for the Academy will be generated through various means including conferencing facilities and the charging of realistic yet affordable tariffs for all training received.
- The first intake of engineering learners commenced their training in May 2009 but engineering, metallurgical and mining training for existing employees as well as for external users by arrangement is currently available. All training can be booked on line on the EBDA website. Courses that are currently not catered for can be requested by contacting us on info@ebda.co.za
