SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of a Small Scale Mine Business Plan 
SAQA US ID UNIT STANDARD TITLE
421841  Demonstrate knowledge and understanding of a Small Scale Mine Business Plan 
ORIGINATOR
QCTO Task Team - Mining and Minerals 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Fabrication and Extraction 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard will be useful to Production Supervisors in small scale mining.

People credited with this unit standard are able to:
  • Demonstrate knowledge and understanding of the statutory requirements pertinent to a Small Scale Mine Business Plan.
  • Demonstrate knowledge and understanding of the business overview as an element of small scale mining business plan.
  • Demonstrate knowledge and understanding of the geological information required in a small scale mining business.
  • Demonstrate knowledge and understanding of management structures as an element of business plan.
  • Discuss marketing as an element in the business plan.
  • Demonstrate an understanding of financial statements and projections as required in the business plan. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Communication at NQF Level 2.
  • Mathematical Literacy at NQF Level 2. 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and understanding of the statutory requirements as part of a Small Scale Mine Business Plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Mining rights and permit requirements are identified and explained. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Prospecting permits.
  • Mining permits.
  • Mining rights.
     

  • ASSESSMENT CRITERION 2 
    Details of legislation and regulations governing the mining industry are discussed. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Mines Health and Safety act (Act 29 of 1996) and regulations.
  • Minerals and Petroleum Resources Development Act, 2002.
     

  • ASSESSMENT CRITERION 3 
    Compliance with tax legislation is discussed. 

    ASSESSMENT CRITERION 4 
    Compliance with labour legislation is discussed. 

    SPECIFIC OUTCOME 2 
    Demonstrate knowledge and understanding of the business overview as element of the small scale mining business plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The business profile is explained. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Information on the background and history of the business/industry.
  • The type of legal entity of the business (proprietorship, Close Corporation, Company) is explained.
  • The vision and mission explained.
  • The long and short term objectives in terms of business growth and development are discussed.
  • Possible exit strategies are discussed.
     

  • ASSESSMENT CRITERION 2 
    The mineral to be mined is explained in precise terms. 

    ASSESSMENT CRITERION 3 
    The technical requirements and expertise are explained in precise terms. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Mining method.
  • Beneficiation process.
  • Technology requirements (e.g. Plant and Machinery).
  • Detail on the installation and commissioning of the small scale mine.
  • Detail of any contractual obligations and requirements.
     

  • SPECIFIC OUTCOME 3 
    Demonstrate knowledge and understanding of the geological information required in a small scale mining business. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The location of the small scale mine is discussed. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • General location.
  • Geological setting.
  • Stratigrafy.
     

  • ASSESSMENT CRITERION 2 
    The commodity to be mined is discussed. 

    ASSESSMENT CRITERION 3 
    Special geological features in the mining area are explained. 

    ASSESSMENT CRITERION 4 
    The geologist and prospecting reports are explained in precise terms. 

    SPECIFIC OUTCOME 4 
    Demonstrate knowledge and understanding of management structures as elements in the business plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The business venture type (advantages and disadvantages) is described. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Proprietorship.
  • Close Corporation.
  • Company.
     

  • ASSESSMENT CRITERION 2 
    The required skills, training and experience of the small scale mine management are described. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Management training and experience
  • Mining Training and experience.
  • Production skills and experience.
  • Sales and marketing.
  • Finance and administration.
     

  • ASSESSMENT CRITERION 3 
    The small scale management structure is explained. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Flow diagram explaining the management structure.
  • Management functions and responsibilities.
  • Deficiencies.
     

  • SPECIFIC OUTCOME 5 
    Discuss marketing as an element in the business plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The mining industry as per the commodity to be mined is summarised. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Current trends and developments.
  • Large and important players in the industry.
  • How the industry is segmented.
  • Problems the industry might be experiencing.
  • National or global events influencing the industry.
  • National and global growth forecasts.
     

  • ASSESSMENT CRITERION 2 
    The existing market and its potential for growth are described. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Analysis of the size and maturity of the market.
  • Trends and seasonality exhibited by the market.
  • Resources and actions required to achieve the desired market share.
  • Existing and potential customers.
  • Competitors, the price and quality of their products.
  • Competitive advantage.
     

  • ASSESSMENT CRITERION 3 
    The sales and marketing strategy is explained in precise terms. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Current and planned sales and marketing strategies.
  • Distribution strategy and channels.
  • Sales projections.
     

  • SPECIFIC OUTCOME 6 
    Demonstrate an understanding of financial statements and projections as required in the business plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial documentation applicable to the small scale mine is described. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Operating budgets.
  • Income statements.
  • Expenditure statements.
  • Balance sheets.
     

  • ASSESSMENT CRITERION 2 
    The financial projections applicable to the small scale mine are described. 
    ASSESSMENT CRITERION RANGE 
    Must include:
  • Cash flow projections.
  • Costing methodology.
  • Pricing policies.
  • Break-even and sensitivity analysis.
     


  • UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a learner or moderating the assessment of a learner against the qualification must be registered as an assessor with the relevant QCTO Quality Assurance Partner (QAP).
  • Any institution offering learning that will enable the achievement of this qualification must be accredited as a provider with the relevant QAP
  • Moderation of assessment will be overseen by the relevant QAP according to the moderation guidelines and the agreed QAP procedures.
  • Moderation must include both internal and external moderation of assessments, unless the QAP policies specify otherwise. Moderation should also encompass achievement of the competence described in the associated unit standard/s
  • Anyone wishing to be assessed against this qualification may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant QAP. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The following embedded knowledge will be assessed in an integrated way in the context of the unit standard:
  • Legal and statutory requirements in the small scale mining context.
  • Business knowledge in the small scale mining context.
  • The economic system in the small scale mining context.
  • Interpretation of financial data in the small scale mining context.
  • Interpretation of geological data in the small scale mining context.
  • Management systems in the small scale mining context.
  • Marketing planning in the small scale mining context.
  • Interpretation of a marketing strategy in the small scale mining context. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as members of a team, group, organisation or community.
    Note:
  • The learner is willing and able to be part of a team and to participate constructively in achieving team goals and objectives in the processes of developing a business plan for a small scale mine. 

  • UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically showing responsibility towards the environment and health of others.
    Note:
  • The learner shows appreciation for the role of modern technology as used in the small scale mining context and shows a positive orientation towards such technology. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation.
    Note:
  • The learner participates in interactions of numerous role players involved in upstream, downstream and parallel processes are required for developing a business plan for a small scale mine. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2015. 

    UNIT STANDARD NOTES 
    Terminology:

    Specified Requirements:
    Specified requirements include legal and site-specific requirements and are contained in one or more of the following documents:
    Legal:
  • Understanding of relevant Acts and Regulations: Mine Health and Safety Act - 1996, Labour Relations Act - 1995, Basic Conditions of Employment Act - 1998.
    Site Specific:
    Company policies and procedures regarding relevant:
  • Mine policies and procedures.
  • Codes of Practice.
  • Human Resource specific labour functions. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  90655   National Certificate: Small Scale Mining  Not Applicable  NQF Level 03  Reregistered  2023-06-30  MQA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.