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The South African economy is largely supported by the mining industry. A large portion of the South African population was excluded from participating in mining due to historical racial discrimination. Since 1994 it is a Government imperative to transform the mining industry. To achieve this legislation was enacted and implemented which, included the Mining Charter. It was essential to establish the context of black economic empowerment in South Africa to understand the reasons behind the legislation. The Mining Charter was investigated to determine its objectives and targets. A Scorecard was introduced and is used as a performance measuring instrument and it is necessary to determine the effectiveness thereof, based on the principles, theories and models of performance. It was determined how the Department of Minerals and Energy (now Mineral Resources) and some mining companies utilise the Scorecard to determine whether it is possible to use it as a performance measuring instrument. Recommendations were made based on the comparison of the Scorecard with performance management and performance measurement theories.