Social Impact Assessment Socio-Economic Baseline Study

Booysendal South Expansion Project

To Booysendal Platinum (Pty) Ltd

Date: 09/04/2018 From: Social Enterprise Sollutions

Booysendal South Expansion Project

Social Impact Assessment

DISCLAIMER

This report is submitted in confidence by the Amec Foster Wheeler South Africa (Pty) Ltd, solely for use by the business entity as described in this document requesting the service (hereinafter referred to as the “Client”). It is understood that Client’s receipt of this report constitutes an agreement that its distribution will be limited and controlled according to the non-disclosure agreement, agreed to between Amec Foster Wheeler South Africa (Pty) Ltd and the Client. All copies of this report that are not retained in the Client’s confidential business records will be properly destroyed upon the completion of review. No part of this document will be divulged to Amec Foster Wheeler South Africa (Pty) Ltd’s competitors or any third parties without Amec Foster Wheeler South Africa (Pty) Ltd’s prior knowledge and written consent.

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EXECUTIVE SUMMARY

Introduction

This report provides a socio-economic baseline of the potentially affected communities falling within the Project Area. The Booysendal operation is located on the farms Der Brochen 7JT, Hebron 5JT, the northern section of the farm Booysendal 43JT and a portion of portion 2 of the farm Pietersburg 44JT falling in the Limpopo province, while the rest of the properties and the Ex-Everest (Booysendal South) operation is located in Mpumalanga province. For this study three interdependent target populations were included in the Project Area of interest:

• The site-specific target population

• The local target population

• The regional target population

Four communities fall within the Project Area of interest, and include Phetla community, Shaga, Choma and Stageng/Makua communities.

Of these communities the Phetla community is the host community, while the remaining three communities fall within a 10 km radius from the proposed mine site.

The report draws on data gathered from focus group meetings and key informant interviews to provide a baseline description of the potentially affected communities in order to determine the socio-economic impacts of the project on these communities.

Booysendal South Expansion Project Area Accurate population figures are not available for communities in the Project Area; however estimates were collected in consultation with community leaders. Communities are relatively young, with a significant proportion (60%) of the population under 18 years of age. Approximately between 38% and 45% of the population are male while women constitute between 62% and 55% of the population.

The size of the communities fluctuates strongly and is mainly attributed to people migrating to the area during land claims. The majority of households comprise extended families including a husband, his wife, their children and grandparents.

The Project Area is home to two ethnic groups. Sepedi are the predominant ethnic group followed by the Ndebele. There were no reports of any conflict or tension between the ethnic groups. The different ethnic groups are characterised predominantly by their varying dialects.

Although there are no church buildings in the Project Area, the population practice both Christianity and traditional religions.

Communities rely primarily on agriculture for subsistence; and very few households farm commercially.

Land is acquired through Traditional Councils and Community Property Associations (CPAs). The

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average plot size per household is one hectare.

The population comprises both land claimants and labour tenants, with the majority of land claimants moving to the Project Area in 2012. There are tensions between land claimants and labour tenants who resided on the land prior to the land claims. The reasons for the tensions are primarily around increased vulnerability due to a lack of economic opportunities in the Project Area.

The majority of land is communally owned, and only one private landowner was identified in Shaga.

The houses in the Project Area vary. Some are large farmhouses comprising two or three bedrooms, while others are shanties erected from corrugated iron, but the majority of houses are built from cement bricks with corrugated sheet roofing. Very few traditional houses are built using mud and thatching straw. Households usually consist of one or two structures for extended family members. In addition to these primary structures each household will also have one or two outbuildings for livestock.

Households have very few assets. The more common of these assets include furniture, such as chairs, tables and mattresses. Radio and television signal in the Project Area is weak, and a few houses did have satellites dishes. Cellular telephones are the main source of communication.

Social services and infrastructure are poor. All communities included in the survey have at least one primary school nearby; however only one community has access to a secondary school and this is located in Stageng (Draaikraal). There are no clinics in the Project Area. A mobile clinic is supposed to visit the communities at least once a month, but it is often unreliable and only comes once every three months. Water is generally sourced from rivers and springs, and only one community has access to piped water. During focus group meetings the women reported that the water quality is generally poor, and that the rivers were polluted from mining related activities, illegal dumping, and livestock. Although communities, except for Choma, have access to electricity, households rely primarily on wood for cooking. None of the towns/villages reported having shops and markets. There is a significant lack of sanitation facilities and while some households have constructed pit latrines close to their homes, the majority of the population make use of the bush. There is also no formal refuse removal and communities generally bury and burn their refuse or throw it into the surrounding bush. The secondary roads off the R577 are dirt roads and some are in poor condition. There is a complete lack of a public transport network and the community members generally walk or hike to get to their destinations.

During the study the household survey considered the general education levels of the population, including the education levels of adults. From the data collected it is apparent that a significant proportion of the adult population are illiterate and do not have any formal education. Although primary education is free, parents are required to pay a once off registration fee for secondary school. During the study it was reported that the majority of children are registered at school, however factors such as unreliable public transport, money for school uniforms and stationary contribute to children not completing secondary school. As a result a very small percentage of the population complete secondary school, and tertiary education is just about non-existent for both adults and the general population alike.

The Project Area is characterised by high levels of subsistence farming and low levels of employment. Household income is derived primarily from remittances, social grants and in some communities households supplement their income by selling traditional herbs and medicine. In Shaga it was reported that households also barter with traditional grass brooms for household items like maize meal and sugar.

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The most commonly ailments and diseases reported by the communities are diarrhoea, high blood pressure, diabetes, and Tuberculosis. Many community members do not make use of the mobile clinic due it being so unreliable, and in instances where there are medical emergencies people hike to the public hospital in Mashishing. Community members did indicate that they often self medicate and make use of medicinal plants. Traditional healers were reported to be very expensive, and only a few community members consult with traditional healers.

The majority of the population can be regarded as vulnerable due to the high levels of poverty. The most vulnerable may include children and youth, women and widows/widowers, the elderly and the disabled and chronically ill.

Although the overall perception of the project by the community members is negative, communities neighbouring the mine want the project to go ahead. They are hoping for benefits in the form of employment and improved social services and infrastructure, and have high expectations that the mine will improve their lives even though they are concerned that promises will not be unfulfilled. Some of the possible negative impacts listed by community members include not hiring local workers, polluting the environment, and reducing access to natural resources.

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CONTENTS

Introduction ...... ii Booysendal South Expansion Project Area ...... ii 1.1 Objectives and Scope of Work ...... 4 1.2 Project Description ...... 4 1.3 Project Area ...... 7 1.4 Methodology ...... 9 1.5 Integration with the EIA Process ...... 12 1.6 Assumptions and Limitations ...... 12 3.1 National Context ...... 13 3.2 Provincial Context ...... 14 3.3 Local Context ...... 16 4.1 Introduction...... 29 4.2 Local Governance ...... 30 4.3 Demographics ...... 32 4.4 Land Use, Settlement Patterns and Tenure ...... 33 4.5 Social Services and Infrastructure ...... 33 4.6 Livelihood Strategies ...... 38 4.7 Income and Expenditure ...... 39 4.8 Ecosystem Services ...... 39 4.9 Cultural Assets and Customs ...... 40 4.10 Crime ...... 40 4.11 Vulnerability ...... 40 4.12 Perceptions of Project Area Communities ...... 41

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1. Introduction

Booysendal Platinum Propriety Limited (“Booysendal”) is a platinum group metal (PGM) mine approximately 33km west of Mashishing (Lydenburg), 40km south-southwest of Steelpoort, 32km north of Dullstroom and 21km northeast of Roossenekal. The mine consists of two mining rights (MR), Booysendal MR (LP 30/5/1/3/2/1 (188) EM) and Booysendal South MR (MP 30/5/1/2/3/2/1 (127) EM together forming the Booysendal Operation (refer to Figure 1-1). The Booysendal South MR (previously known as Everest) was acquired from Aquarius Platinum Propriety Limited in 2015. Although the two MRs is not consolidated, it is managed as one integrated operations, the Booysendal Operation.

The northern section of the Booysendal MR falls in the Limpopo Province, while the southern section and the Booysendal South MR falls in the Mpumalanga Province. The operational division for day to day management is in accordance with the provincial divide, where the northern section of the Booysendal MR is managed as Booysendal North (BN) and the Southern section (which is a combination of the two MRs) as Booysendal South (BS). BS consists of Booysendal Central (BS1/2), the Merensky Adits (BCM1 and BCM2), and the BS4 (Ex Everest mine).

Booysendal has identified a window of opportunity to increase PGM production to meet short to medium term projected demands for platinum and commenced with expansion of the BS over two Phases.

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Figure 1-1: Location of the Booysendal South Expansion Project

In terms of the requirements of the National Environmental Management Act, 107 of 1998 (NEMA), Booysendal is required to obtain environmental authorisation and to amend the EMP. This requires the preparation of an Environmental Impact Assessment (EIA) for the Booysendal South expansion project. The EIA has to include an assessment of the socio-economic environment of the Project Area.

During an EIA social impacts are identified through two processes namely; the public consultation process and the socio-economic baseline study. Both these processes form an integral component of the EIA, and in January 2017, AMEC Foster Wheeler completed a socio-economic baseline study comprising key informant interviews and focus group meetings.

This report presents the findings of the socio- economic baseline study, which describes the social environment of the Project Area. It aims to assist the EIA specialists with identifying potential project impacts, and if the project is approved, this report will assist Booysendal with monitoring potential future project impacts.

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1.1 Objectives and Scope of Work

The objectives of the socio-economic baseline study include the following: • Develop a social baseline of the original study conditions prior to the project implementation; • Collect socio-economic baseline data in order to determine potential project impacts; • Build a pre-project socio-economic baseline from which to measure project impacts; • Identify project stakeholders; and • Allow stakeholders to participate in the baseline process, and assist with identifying project impacts and sustainable mitigation measures.

1.2 Project Description

The Booysendal operation is located on the farms Der Brochen 7JT, Hebron 5JT, the northern section of the farm Booysendal 43JT and a portion of portion 2 of the farm Pietersburg 44JT falling in the Limpopo province, while the rest of the properties and the ex-Everest (Booysendal South) operation is located in Mpumalanga province. The northern section of Booysendal (Der Brochen 7JT, Hebron 5JT, the northern section of the farm Booysendal 43JT and a portion of portion 2 of the farm Pietersburg 44JT) is wholly located in the Greater Sekhukhune District Municipality. The local municipality applicable to this section is the Greater Tubatse Local Municipality (GTM) and specifically Ward 31 of this Local Municipality. The southern section of Booysendal, including ex-Everest falls in Ward 5 of the Thaba Chweu Local Municipality (TCLM) of the Ehlanzeni District Municipality (refer to Error! Reference source not found.).

The Booysendal mining operation is divided into Booysendal North (BN) and Booysendal South (BS) as follows: • The existing 2010 UG2 and Merensky operation known as BN; • The Booysendal South (BS1, BS2, BCM1 and BCM2) expansion; • The Booysendal South (BS4 - ex-Everest), operation. (ex-Everest has been under care and maintenance since 2012); and • Development of the Valley Boxcut at ex-Everest

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Figure 1-2: Regional target population

Source: Mphahlele Wessels and Associates, 2016

The layout of the proposed Booysendal expansion involves:

• Development of surface infrastructure at the two Merensky Adits (BCM 1 and BCM2); • Development of an Emergency Escape Portal to serve BCM1, BCM2 and the BS1/2 underground complex • Retaining a 11VA powerline from BN to BS1/2; • Process and clean water pipelines between BS1/2 and BN; • Access roads to the BCM1 and BCM2 Adits and ARC; an • An Arial Rope Conveyor (ARC) system from BS1/2 to BN.

The following changes and new infrastructure components are applicable to the Project (refer to Figure 1-3):

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and not across a drainage line any longer. Undermining is however still applicable as indicated in the revised drawings; • Potable and process water lines for BS1/2 and the Merensky mines will run along the main access road between BS1/2 and BN; • The water line (previously TKO line) will now follow the existing TKO route to BS4 (ex-Everest) from where it will then run underground to surface at the Valley Boxcut; • Surface infrastructure components will now be constructed at the ex-Everest Valley Boxcut to form a fully operational mine in accordance with the approved layout received in 2009; • The emergency escape portal has been reintroduced in the project requirements; • Recommissioning of the ex-Everest Process Plant; • Backfill Plant with various pipelines at ex-Everest; and • The ARC route from BS1/2 to BN.

Figure 1-3 Booysendal MR Expansion Activities

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1.3 Project Area

The Project Area is defined as a geographical area within which social and environmental studies are completed in order to determine direct, indirect and cumulative impacts attributable to the project. Typically the Project Area and the study area overlap and are; unique to a project; larger than the actual footprint of a project; and encompasses socio-economic issues and impacts, as well as issues and impacts associated with other disciplines (e.g. environment, health and safety).

Defining the study area is used to determine a project’s area of influence (AoI) and responsibilities. It also provides guidance on the area to be monitored, and managed, and assists with defining stakeholders, and the tools needed to gather data for identifying project impacts.

For this study three interdependent target populations were included in the Project Area:

The site-specific target population: The area likely to experience impacts related to the development of mine related project infrastructure and activities. In the context of this project, this study area is defined as the settlements within relative proximity to the proposed project infrastructure (Refer to

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Figure 1-4: Site specific target population

• Figure 1-5). In terms of direct area of influence, the majority of the properties on which the project expansion will take place, belong to Booysendal. A section of the main access road and areal ropeway will cross over the RE of the Farm Sterkfontein 52JT which belongs to the Phetla Community Property Association (CPA). The Phetla community, north of ex-Everest, is the closest community, which may be directly affected by the project expansion. Various portions on which ex- Everest is located are leased from the CPA • The local target population: Comprise the people residing within close proximity to the proposed mining operation; these are in Wards 5 of the TCLM, and include the following three communities; Shaga, Choma and Stageng/Makua communities (refer to Figure 1-5). • The regional target population: The area likely to experience indirect or induced impacts of the project. This encompasses the populations of the Ehlanzeni and Sekhukhune District Municipalities. Due to Ward 5 of the TCLM bordering Ward 31 of the GTM, which falls in the Limpopo Province, the expansion project will continue to have an influence in Limpopo.

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The baseline study primarily focuses on detailing the site-specific and local target populations, and provides a high-level summary on the regional target populations of Ehlanzeni District Municipality in Mpumalanga and Sekhukhune District Municipality in Limpopo.

Figure 1-4: Site specific target population

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Figure 1-5: Local target population

1.4 Methodology

1.4.1 Secondary Data

The study used literature review to seek and gather secondary data that are attached as Appendix 1. Documents reviewed included the following:

▪ Documents derived from the information request to the client (e.g. SLP 2015-2019, Stakeholder Engagement Policy);

▪ Socio-economic and demographic statistics (sourced from Statistics South Africa’s 2011 Census data);

▪ Integrated Development Plans (IDPs), Local Economic Development Plans (LEDs) and Spatial Development Frameworks (SDFs) of the Ehlanzeni and Sekhukhune District, well as the Thaba Chweu Local Municipality (Refer to Appendix 1); and

▪ Available maps and satellite imagery.

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1.4.2 Primary Data Collection

Using a variety of research tools primary data were collected for the socio-economic baseline study between the 16th and 21st January 2017. These research tools included community information sheets, focus group meetings, and key informant interviews, which are described in detail below.

1.4.2.1 Community Information Sheets

Community information sheets were completed with community leaders including members of the Traditional Council and executive members of the Community Property Associations (CPAs). These initial surveys were used to provide basic socio-economic information of the settlements on the following topics: • Historic information; • Demographics; • Vulnerable households; • Ethnicity; • Religion; • Migration; • Facilities and services; • Livelihood activities; and • GPS coordinates and photographs of these facilities

Data gathered in the community information sheets were used to inform focus group discussions with men and women.

1.4.3 Focus Group Meetings

A total of eight focus group meetings were completed in the four communities (refer to Appendix 2 for attached attendance registers). These meetings were organised with the assistance of a Sepedi speaking team member who liaised with community leaders. Separate focus group meetings were held for men, women and youth. In order to ensure meeting participants understood questions, the focus group meetings were held in Sepedi, and a Sepedi speaking team member provided translation into English.

During the focus group meetings, participants were asked to discuss a wide range of issues regarding governance structures, land, development, services, infrastructure, livelihood strategies, natural resource use, gender, culture, community dynamics, and perceptions about the proposed project.

In order to ensure full participation by women, men and women were separated into different focus groups, and were asked varying questions. For example men were asked questions on skills, local businesses and farming practices, while women were asked questions on education and health.

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Focus group sizes varied from between 12 and 30 participants (refer to Table 1-1), and in Makhuwa, where men and women refused to attend separate meetings, there were as many as 70 male and female participants attending one focus group meeting. According to the leadership in Makhuwa this was as a direct result of increasing distrust amongst community members regarding access to employment opportunities.

Table 1-1: Summary of the number of participants attending focus group meetings

Community Men Women Shaga 15 12 Choma 20 32 Phetla 42 25 Makhuwa ±70 Total 216

In all communities (except in the Choma community) focus group meetings were attended by both land claimants and land occupants/labour tenants.

Due to tensions between the land occupants/labour tenants who occupied the land prior to the land claims, the land occupants in Choma have formed their own interested and affected group called the Protea Farms Community. In the Choma Community two focus group meetings were held with men and women who belonged to the Choma CPA, and one focus group meeting was held with 45 land occupants representing the Protea Farms Community Forum.

1.4.4 Key Informant Interviews

Key informant interviews were held with the Ward Councilor of Ward 5, the Chairman of the Emerging Contractors Forum and Principals at Shaga Primary School and Tonteldoos Secondary School.

The interviews sought to verify and expand on data gathered during the focus group meetings.

1.4.5 Data Analysis

In each of the communities comparable qualitative social data were collected. Primary data gathered from the focus group discussions and key informants, as well as, observations made by the study team on livelihood strategies, infrastructure, services and amenities were transcribed. In order to strengthen and increase the levels of confidence in the qualitative findings of the social study, primary data was triangulated with secondary data.

The primary and secondary sources of data are recorded in the Baseline Report, and secondary sources are further detailed in Appendix 1.

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1.5 Integration with the EIA Process

Prior to undertaking the social study, a specialist meeting was held to discuss information disclosure and key project messages. In addition the social data gathering tools (i.e. focus group questionnaires) were shared with other projects specialists for their input.

In each of the focus group meetings community members were provided with the opportunity to voice their concerns and suggestions about the project, as well as, to ask questions about the EIA and the stakeholder engagement processes. These comments and concerns were shared with the EIA Project Manager and the Public Consultation Specialist.

1.6 Assumptions and Limitations

1.6.1 Assumptions

The following assumptions informed the socio-economic baseline study: • The participants in the study responded truthfully in the interviews; • The interviewees fully understood the questions being asked; • The focus group meeting facilitators accurately captured the meaning of answers and the intentions of the interviewees; • The proposed project will not change significantly in its design compared to what was presented during the interviews; and • On-going public participation will take place involving all local stakeholders.

1.6.2 Limitations

The following limitations must be borne in mind when interpreting the results of the baseline study: • In a relatively short period of time it is impossible to gain an in-depth understanding of the local social and political dynamics of the area. The insights on land claimants, and the tensions between the land occupants remains superficial, and on-going community liaison is necessary to understand these complex power struggles and varying narratives; • During the socio-economic baseline study only one private farmer was identified in Shaga. According to community members in Shaga, the farmer recently acquired the farm, which is not under a land claim, and employs seasonal labourers to work on the blueberry farm. No additional baseline data was gathered on white farmers in the areas; • Although clear directives were given to community leaders on the purpose of the social study, there were instances where focus group meetings were overwhelmingly attended by youth hoping to secure employment opportunities with the mine; and • Mistrust of the CPA leaders prevented open and transparent discussions with focus group participants on governance related issues. For example, in Phelta focus group meetings were attended by CPA Executive members and their participation in these meetings prevented land

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occupants from voicing their opinions on the CPA leadership structure and the effectiveness of this structure in representing their interests.

2. Statutory Requirements for an EIA

This social baseline study is guided by the requirements of NEMA: Waste Act, 59 of 2008 (NEMWA), the National Environmental Management: Biodiversity Act, 10 of 2004 (NEMBA), and the Minerals and Petroleum Resources Development Act, 28 of 2002 (MPRDA) as provided for in terms of Section 11 of Regulation GNR 982 of 4 December 2014 (as amended on 7 April 2017) and promulgated in terms of Chapter 5 of NEMA.

The requirements set out by NEMA emphasize the importance of collecting social baseline information on livelihoods, health, culture, gender, ecosystem services, infrastructure and cultural heritage in order to identify, manage and mitigate potential positive and negative project impacts.

3. Socio-Economic Context 3.1 National Context

South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. By land area it is the 25th largest country in the world, and with a population of almost 56 million people, it is the world's 24th most populous nation. The countries north of South Africa include Namibia, Botswana, and Zimbabwe, and on the east and northeast are Mozambique and Swaziland. It is the only country in the world to border both the Indian and the South Atlantic Oceans (Wikipedia, 2017).

The country is a multicultural society made up of about 80% of (Black) South Africans divided amongst a variety of ethnic groups encompassing numerous languages and religions. The remaining 20% of the population comprise Africa’s largest communities of European (White), Asian (Indian) and multiracial (Coloured) ethnic groups. In South Africa there are 11 official languages, of which two languages are of European origins including Afrikaans and English (Wikipedia, 2017).

South Africa is one of the few countries in Africa to have encountered institutional racial segregation imposed in 1948 by the ruling National Party, and from 1990 onwards these discriminatory laws were repealed. In 1994 all ethnic and linguistic groups were given full political representation in the country's first democratic elections. Since then South Africa has held regular, free and fair democratic elections (Wikipedia, 2017).

South Africa is a democratic republic comprising nine provinces (Wikipedia, 2016).

Since the end of the 1990s the African National Congress (ANC) has been the ruling party of a multi- party system wherein the President of the Republic, elected by parliament, is the head of the government.

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While the government exercises both executive and legislative powers, the judiciary is independent of the executive and the legislature.

The government is three-tiered with representatives elected at the national, provincial and local levels.

South Africa is classified as an upper-middle-income economy, and in terms of purchasing power it has the 7th highest per capita income in Africa (Wikipedia, 2017).

Despite being the largest economy in Africa, poverty and inequality remain widespread, and about a quarter of the population are unemployed and live on less than US$1.25 a day (Wikipedia, 2017).

3.2 Provincial Context

The Project Area falls within two provinces namely the Provinces of Limpopo and Mpumalanga. Both these Provinces are likely to experience indirect or induced impacts of the project.

3.2.1 Limpopo

The Province of Limpopo shares it borders with the South African provinces of Mpumalanga, Gauteng and North West.

The capital of Limpopo is Polokwane, and Northern Sotho is spoken by more than half of the population residing in Limpopo (South African Government, 2017).

The economy of the Province is driven mainly by mining, which contributes 22% of the GGP. Minerals mined include platinum, chromium, nickel, cobalt, vanadium, tin, limestone and uranium clay. Other reserves include antinomy, phosphates, fluorspar, gold, diamonds, copper, emeralds, scheelites, magnetite, vermiculite, silicon, mica, black granite, corundum, feldspar and salt. (South African Government, 2017)

Other key economic drivers include agriculture and tourism (South African Government, 2017).

The province produces 75% of the country’s mangoes, 65% of its papaya, 36% of its tea, 25% of its citrus, bananas, and litchis, 60% of its avocados, two thirds of its tomatoes, 285,000 tons of potatoes (South African Government, 2017). Other products include coffee, nuts, guavas, sisal, cotton, maize, grapes, tobacco and timber.

Much of the Waterberg Biosphere is located in Limpopo, which is the first region in the northern part of South Africa to be named a UNESCO Biosphere Reserve.

In the Province there are 54 provincial reserves and many private game reserves.

Even though the province is endowed with natural resources, it has the highest level of poverty of any South African Province, 78.9% of the population live below the national poverty line (Wikipedia, 2017).

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In 2011, 74.4% of local dwellings were located in a tribal or traditional area, compared to a national average of 27.1% (Wikipedia, 2017).

3.2.2 Mpumalanga

Mpumalanga is one of South Africa’s nine provinces, which lies in eastern South Africa, and borders Swaziland and Mozambique. It constitutes 6.5% of South Africa's land area and shares borders with the provinces of Limpopo to the north, Gauteng to the west, the Free State to the southwest, and Kwazulu- Natal to the south. The capital of Mpumalanga is Nelspruit (Wikipedia, 2017).

Some 30% of the people in Mpumalanga speak siSwati, the language of neighbouring Swaziland, with 26% speaking isiZulu, 10,3% isiNdebele, 10,2% Northern Sotho and 11,6% Xitsonga (Wikipedia, 2017).

The Province is divided into the following three municipal districts; Ehlanzeni (in which the Project is located), Gert Sibanda, Nkangala Districts, which are further subdivided into 18 local municipalities (Wikipeadia, 2017).

The economy of the Province is driven mainly by agriculture, mining and tourism.

More than 68% of Mpumalanga is used for agricultural farming and natural grazing land covers approximately 14% of Mpumalanga. Forestry is extensive around Sabie in the far north east of the Province. (Wikipeadia, 2017).

Commercial crops include maize, wheat, sorghum, barley, sunflower seed, soybeans, macadamia’s, ground nuts, sugar cane, vegetables, coffee, tea, cotton, tobacco, citrus, subtropical and deciduous fruits (Wikipeadia, 2017).

Other agricultural products include beef, mutton, wool, poultry and diary (Wikipeadia, 2017).

Extensive mining is done and the minerals found in Mpumalanga include gold, platinum group metals, silica, chromite, vanadiferous magnetite, argentiferous zinc, antimony, cobalt, copper, iron, manganese, tin, coal, andulsite, chrysotile asbestos, kieselguhr, limestone, magnesite, talc and shale (Wikipeadia, 2017).

The Province accounts for 83% of South Africa's coal production (Wikipeadia, 2017).

Mpumalanga is popular with tourists. Major tourist attractions include the Kruger National Park, Sudwala Caves, the Blyde River Canyon, the African silk farm near Graskop, mountain and quad biking, fly fishing, horse trails, river rafting and big game viewing (Wikipeadia, 2017).

Although the Booysendal expansion project is primarily located in the Ehlanzeni District of Mpumalanga, the existing Booysendal North (BN) mining operation, the BCM1 and BCM2 development with associated linear infrastructure components falls within the Sekhukhune District Municipality of Limpopo.

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3.3 Local Context

3.3.1 District Municipalities

The Project Area is located within two district municipalities namely; the Sekhukhune District Municipality (SDM) of Limpopo and the Ehlanzeni District Municipality (EDM) of Mpumalanga (refer to Error! Reference source not found.). 3.3.1.1 Sekhukhune District Municipality

The SDM has a population of 1,076,840 inhabitants, of which 99% are Africans, and the remainder 1% comprise Whites, Indians and Coloureds (Sekhukhune IDP, 2016/17).

Although mining, agriculture and tourism are the three leading economic sectors in the Limpopo Province, the three main contributors to Gross Geographic Product (GGP) in the Sekhukhune economy are community services (3.62%), mining (2.38%) and trade (2.66%). (Sekhukhune IDP, 2016/17)

Like many other Districts affected by the general global economic meltdown, Sekhukhune is also experiencing a decline in formal job opportunities. This is escalating unemployment particularly among the economically active population. (Sekhukhune IDP, 2016/17)

3.3.1.1 Ehlanzeni District Municipality

The EDM is the northern-most district of the Mpumalanga Province and covers a total area of 27,895.47m3. It is bordered by Swaziland and Mozambique in the east, Limpopo Province in the north, and the Gert Sibanda and Nkangala Districts in the south-west.

The total population of EDM is 1,688,615 inhabitants (Ehlanzeni IDP, 2016/17), of which 91,06% are Black South Africans, and the remainder 8,94% comprise Whites, Coloureds, Indians and Others.

In Ehlanzeni agriculture is a declining industry, and mining contributes between 17% and 26% of the Provincial Gross Domestic Product (GDP). Other primary economic activities include trade and community and financial services. (Ehlanzeni IDP, 2016/17)

Major industrial centres in the area are Mbombela, White River and Nsikazi. The building, manufacturing and service sectors are boosting growth in the Nelspruit and White River areas.

In 2011 the unemployment rate for people between the ages of 15 and 65 was 32,32%, and majority of the population in Ehlanzeni is dependent on social grants (Ehlanzeni IDP, 2016/17).

3.3.2 Local Municipality

The Project Area is located within the local districts municipalities of the Greater Tubatse Local Municipality (GTM) in Limpopo and the Thaba Chweu Local Municipality (TCLM) in Mpumalanga (refer to Error! Reference source not found.).

3.3.2.1 Greater Tubatse Local Municipality

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The GTM is located north of the N4 Highway, Middleburg, Belfast and Mbombela; and east of the N1 Highway, Groblersdal and Polokwane. The municipal area of jurisdiction covers approximately 45500.1105 ha.

GTM is one of five local municipalities in the SDM, and has a total population of 393,713 people with a total of 102,531 households (Sekhukhune IDP, 2016/17).

The municipality has a total of 39 wards, and is largely dominated by rural landscape comprising approximately 297 villages and six proclaimed townships. The majority of villages are located far apart which, makes the provision and maintenance of services very costly.

Like most rural municipalities in the South Africa, GTM is characterised by a weak economic base, inadequate infrastructure, major service backlogs, dispersed human settlements and high poverty levels. 3.3.2.1 Thaba Chweu Local Municipality

TCLM is one of four local municipalities in EDM. It is the second smallest local municipality and is located on the far northeastern part of the EDM, covering an area of approximately 5,719 km2 (refer to Error! Reference source not found.).

The total population of the TCLM is 98 387 with a total of 34 521,75 households. It is expected that the population will be sitting at around 113 920 by 2030 (TCLM IDP, 2017/22). Although EDM has the highest population density in Mpumalanga, of the four local municipalities TCLM has the lowest population density, and accommodates 7% of the population of the EDM. (TCLM IDP, 2017/22).

TCLM comprises fourteen (14) wards and four main towns namely: Mashishing (Masishing), Sabie, Graskop, and Pilgrim‘s Rest. The town closed to the project is Mashishing. The areas surrounding these towns are rural in nature characterised by farms and informal settlements (TCLM IDP, 2017/22).

Settlement patterns within the TCLM are influenced by a number of diverse factors ranging from previous homelands and group areas to service centres focused around employment opportunities and natural resources such as minerals, soil types, water availability, and biodiversity (TCLM IDP, 2017/22).

Poor and inadequate basic services have also attributed to the scattered nature of settlements in the rural areas of the TCLM, which makes infrastructure development challenging and costly (TCLM IDP, 2017/22).

Although the project straddles two local municipalities, the TCLM in Mpumalanga and the GTM in Limpopo (refer to Error! Reference source not found.), the expansion project falls primarily within the TCLM in Mpumalanga with some development in the GTM. As such, the sections that follow focus on TCLM and provide minor detail on the GTM.

3.3.3 Social Context

3.3.3.1 Demographic

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According to the TCLM IDP (2017/22), the total estimate population of the municipality was 98,387, equating to approximately 5,83% of the total district population. Figures from the IDP indicated that there were 34 521,75 households, with an average of 2,85 persons per household. When assessing the population increases from 2001 (81,681 people) to 2011 (98,387 people), this equates to an annual growth rate of 2.05% over a 10 year period (Refer to Figure 3-1).

The population growth rate in TCLM is much lower than the population growth rate in the GTM. In GTM the population increased from 353,676 in 2011 to 393,713 in 2016, which equates to a growth rate of 8% over a six-year period. The GTM IDP (2016/17 – 2020/21) attributed this population growth rate to influx as a result of mining activities in the area.

Figure 3-1: Population change in Thaba Chweu Local Municipality

Source: Thaba Chweu Integrated Development Plan (2016- 2017)

The population in the TCLM area is relatively young, and according to the TCLM IDP (2017/22) the largest proportion of the population is between the ages of 20 and 29 years, and population groups older than 65 years are in the minority (refer to Figure 3-2).

Data presenting the overall age distribution profile of the municipality shows that in 2011 approximately 25,17% of the population were under the age of 14 years, while 69,91% fell between the ages of 15 and 65 years, and 4,92% were above 65 years of age. This indicates that a large percentage of the population are dependent on others for their livelihoods.

Figure 3-2: Population pyramid in Thaba Chweu Local Municipality

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Source: Thaba Chweu Integrated Development Plan (2017/22)

The gender composition of the TCLM reveals that there are slightly more females than males with women constituting 51% of the population, and men constituting 49% of the population in 2011 (TCLM IDP, 2017/22).

In GTM there are more women than men. In 2011 women made up 55% of the population, and men made up 45% of the population (GTM IDP, 2016/17).

Figure 3-3 presents the status quo in terms of the percentage of ethnic/race groups within TCLM. It shows that African or Black South Africans were the most dominant racial group in the years 1996, 2001 and 2011 followed by White South Africans (TCLM IDP, 2017/22).

Figure 3-3: Race in Thaba Chweu Local Municipality (Source: Thaba Chweu Integrated Development Plan (2017/22))

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Within the TCLM Sepedi is the dominant language followed by Siswati, Afrikaans, Xitsonga and isiZulu.

In the GTM almost all Black Africans (94%) speak Sepedi as the first home language, followed by IsiZulu at (1.2%), and White people are almost evenly divided between English at (0.5%) and Afrikaans at (0.5%). (GTM IDP, (2016/17 – 2020/21))

3.3.4 Governance and Political Context

The TCLM is managed by a Council, which is made up of twenty-seven proportionally elected mixed party representatives who approve policies, by-laws, a budget, and decide on development plans and service delivery for the TCLM (Key informant interview, 2017).

The Council is co-ordinated by the Mayor who is elected by the Council, and the Mayor is assisted by an Executive or Mayoral Committee, which comprises Municipal Councillors. The Mayor, together with the Executive, oversees the work of the Municipal Manager and the Department Heads.

The Municipal Manager is responsible for employing municipal administration to implement programmes approved by the Council. (Eductaion Training Unit, 2017).

The TCLM is divided into 14 Municipal Wards, and an elected Ward Councilor represents the residents in each ward. The Ward Councilors ensure that there is communication between communities and the Council, and that community interests inform Council decisions (Key informant interview, 2017).

Ward Councilors work closely with Ward Committees and Community Development Forums comprising elected community members.

The communities in the Project Area fall within Ward 5 of the TCLM.

In the GTM there are a total of 39 wards, and 39 Ward Councilors. Like in TCLM the Executive Committee of the Municipality is led the Mayor while the Municipal Speaker presides over the Council (GTM IDP, (2016/17 – 2020/21)).

3.3.5 Economic Context

The TCLM economy is driven mainly by agriculture (33%), manufacturing (22%), community services (16%) and trade and catering (11%), which contribute to 19% of the EDM Gross Geographic Product (GGP). (TCLM IDP, 2017/22)

The TCLM IDP (2017 – 2022) suggests that the greatest economic potential opportunities in the local municipality include mining, tourism and forestry.

• Forestry, and in particular, timber plantations, comprise a large percentage of TCLM geographic coverage. Other important commercial agricultural activities include subtropical fruits, deciduous fruits, crop farming, livestock and game farming. Beef and citrus are the main agriculture products,

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which are found mostly in areas such as Masishing, Sabie, Pilgrim’s Rest and Graskop. (TCLM IDP, 2017/22)

• Mining is currently playing an increasing role in the TCLM economy and makes up 32% of the total GGP in this sector within the EDM. Although there are currently more than 30 mines operating in both Masishing and in Steelpoort (TCLM IDP, 2017/22), most mining activities are taking place in GTM.

Figure 3-4: Mining in the Project Area

Source: Booysendal Social and Labour Plan 2015-2019

• Tourism activities in the EDM are an important source of foreign revenue given that the Mbombela Local Municipality is the gateway for international access (i.e. from Swaziland, Mozambique and the Kruger International Mpumalanga Airport) to TCLM and the Kruger National Park (KNP). The tourist attractions in TCLM are concentrated mainly around the areas of Pilgrim‘s Rest, Blyderivierspoort, Sabie and Graskop, and not near Masishing. (TCLM IDP, 2017/22) The economy in the GTM remains predominantly rural, and according to the GTM IDP (2016/17 – 2020/21) the area is economically the most marginal region in the Limpopo Province. Although the IDP (2016/17) indicated that the main economic drivers in GTM are agriculture, services and construction, it also stated that the area is solely dependent on government handouts and remittances from migrant labour.

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3.3.5.1 Employment

Given that the economy in TCLM is mainly driven by mining, tourism, agriculture and forestry sectors, a large number of employment opportunities come from the mining sector (23.9%) followed by trade (18.1%), community services (14.7%) and agriculture (14%) (refer to Figure 3-5).

As reflected in Figure 3-5 private household labour (8.1%), manufacturing (7%), and construction (6%) share almost the same employment absorption rate while finance (4.7%), transport (3.1%) and utilities (0.4%) contribute the least to absorbing labour in the area (TCLM IDP, 2017/22).

In Mashishing 80 small businesses are registered with the Emerging Contractors Forum in the sectors of construction, catering, engineering and maintenance, which are supported by the local municipality with training and skills development (Key informant interview, 2017).

Figure 3-5: Employment per sector within Thaba Chweu Local Municipality

Source: Thaba Chweu Integrated Development Plan (2017/22)

Whilst the Project Area is located in a region endowed with tourist attractions, agricultural and mining land, a large proportion of the population in TCLM remains unemployed, unskilled and impoverished.

According to the TCLM IDP (2017 – 2022), the unemployment rate in 1996 was sitting at 18,64% whereas in 2001 it was at its highest at 25,12%, which dropped to 20,49% in the year 2011.

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The unemployment rate in the GTM is higher than in TCLM. In 2011 the unemployment rate was 41%, and according to the GTM IDP (2016/17 – 2020/21) the unemployment rate is projected to increase to 47% by 2020.

Figure 3-6: Unemployment in Thaba Chweu Local Municipality

Source: Thaba Chweu Integrated Development Plan (2017/22)

People with disabilities, women and youth are vulnerable to unemployment in TCLM. In 2011, 28,04% of women and 26,56% of youth were unemployed. [Note the percentages are in terms of the total population of each classified person’s category and not in terms of the total population of TCLM]. (TCLM IDP, 2017/22)

3.3.5.2 Household income

According to TCLM IDP (2017 – 2022) about 7,500 households have an annual income of between R19,000.00 and R38 000.00, while about 10,000 households have an average annual income of between R1.00 and R4 800.00. At least 32,000 households have an annual average income of between R76,400.00 and R153,000.00, and a minority group of about 77 households have an annual income of above R1 million (TCLM IDP, 2017/22).

The TCLM IDP (2017/22) indicated that about 8000 people rely on child support grants, and at least 4000 elderly people receive social grants, including persons with disabilities (refer to

Figure 3-7).

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Figure 3-7: Social grants recipients within the Thaba Chweu Local Municipality

Source: Thaba Chweu Integrated Development Plan (2017/22)

In the GTM the majority of the population (48,25%) do not earn an income, while 23,65% of the population earn between R1 – R400, followed by 2,58% who earn between R401 and R800, and 12,89% earn between R801 and R1600.

The GTM IDP (2016/17 – 2020/21) indicated that in 2011, 41% of the population were extremely poor and dependent on social grants for their survival.

3.3.6 Education

According to the Census 2011 only 21% of the population in the TCLM achieved a matric qualification, and a majority of the population (28%) have some form of secondary schooling, while 20% have some primary schooling and only 5% have completed primary school (refer to

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Figure 3-8).

Figure 3-8: Education Attainment within the Thaba Chweu Local Municipality

EDUCATION

Thabachweu Thabachweu Ward1 Greater Tubatse Greater Tubatse Ward31

37%

28% 28% 28%

26% 26%

25%

23%

21%

20%

18%

14%

13%

10%

7% 7%

5% 5% 5% 5% 5%

3% 1%

NO S O M E C O M P L E T E D S O M E G R A D E HIGHER SCHOOLING PRIMARY PRIMARY SECONDARY 1 2 / M A T R I C

Source: Mphahlele Wessels & Associates, 2016

The TCLM IDP (2017/22) aims to escalate the needs of schools in the various municipal wards to the provincial department of education for their assistance, and it also hopes that the proposed University of Mpumalanga will assist with improving further education and training amongst matriculants in the area.

The low levels of education attainment in the area contribute to high levels of unemployment and low household incomes (refer to Sections 3.3.5.1 and 3.3.5.2).

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In GTM an estimate 20% of the population have no schooling, and only 16% of the population achieved a Grade 12 pass in 2011. 3.3.6.1 Health

Healthcare services in TCLM are the responsibility of the provincial Department of Health, and the role of the local municipality is to determine need and align such need with population growth and spatial planning policy tools (TCLM IDP, 2017/22).

Currently Sabie, Masishing and Matibidi each have three public hospitals and three public clinics, and although mobile clinics operate in farm and rural areas, these clinics do not adequately meet community healthcare needs and are often an unreliable service. Due to the high levels of poverty in some of the areas of the local municipality, people cannot afford to pay for transport to public healthcare facilities, and are in serious need of mobile clinics. (TCLM IDP, 2017/22)

The following table presents the top ten (10) causes of deaths in TCLM in 2011 (TCLM IDP, 2017/22). The main causes of death included tuberculosis, influenza and intestinal infectious diseases.

Table 3-1: Summary of the number of participants attending focus group meetings

Number (ranking) Causes Number of deaths in 2011 1 Tuberculosis 188 2 Influenza and pneumonia 140 3 Intestinal infectious diseases 99 4 Other external causes of accidental injury 98 5 Other forms of heart disease 59 6 Diabetes 55 7 Cerebrovascular diseases 54 8 Hypertensive diseases 47 9 Certain disorders involving the immune mechanism 35 10 Ischaemic heart diseases 25

Source: Thaba Chweu Integrated Development Plan (2017/22)

Although HIV/AIDS is not listed as a primary cause of the death in the area, according to the TCLM IDP (2017/22) the rate of HIV infection is increasing in the area. In 2009 HIV prevalence stood at 30.20%, while in 2010 it stood at 39.70%. (TCLM IDP, 2017/22)

In GTM there are a total of 26 medical facilities, which mainly constitute regional clinics that provide localised inputs to the community.

3.3.6.2 Water, Sanitation and Refuse Removal

In Masishing there are two water treatment works, one of which treats water for primary water consumption in Masishing, while the other treats water for industrial use. The refurbishment and

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upgrading of both facilities are required. In addition the water resource capacity of the Lebalelo water scheme is already under stress, and according to the Department of Water and Sanitation (DWS) this water scheme needs to increase its capacity to at least 1.8 Ml/day to cater for population and industrial growth over the next 10 years. (TCLM IDP, 2017/22)

In rural communities a majority of households do not have regular adequate water supply, and most households rely on water sourced from nearby rivers and springs (Key informant interview, 2017). In communities with drilled boreholes, no maintenance plans are in place, and as a result many boreholes are broken and in need of repair. In 2011 a total of 1072 households in TCLM did not have access to basic water facilities (TCLM IDP, 2017/22), and 21% of households used unventilated pit latrines (Mphahlele Wessels & Associates, 2016).

Without bulk water supply the municipality is also unable to provide communities with bulk sanitation supply, and there are about 1,619 households in farm areas without access to basic sanitation. As an interim solution the municipality is rolling out Ventilated Improved Toilets (VIPs) until the bulk supply of water is addressed, which will ultimately solve the sewerage network and reticulation backlogs (TCLM IDP, 2017/22).

A process of developing water and sanitation master plans to deal with problem is underway. A Water Service Development Plan (WSDP) is in place, which depicts the current status quo and requirements for bulk water and sanitation service delivery (TCLM IDP, 2017/22).

Refuse removal is another area where the TCLM is struggling to provide service delivery. In the local municipality it is estimated that 84% of the population does not have access to refuse removal services.

In GTM the majority of the population use unventilated pit latrines, and almost 5.5 % of the households use VIP toilets.

Most villages in GTM do not have access to refuse removal and, dumping and burning of waste is the more common way of disposing waste.

3.3.7 Housing

Data from the 2011 Census (Statistics SA, 2011) describe 68,45% of households in TCLM as formal housing types, 20,36% as informal housing and 3,95% as traditional housing types. According to the TCLM IDP (2017 – 2022), 58,82% of housing types in Ward 5 are formal housing types, 22,77% are informal housing, and 12,66% as traditional housing types.

In TCLM Ward 2 and Ward 3 represented the highest number of informal housing types, followed by Ward 5 (TCLM IDP, 2017/22). The number of informal housing can be attributed to the uncontrolled influx of people to these towns in search of land and employment opportunities.

According to the Thaba Chweu IDP (2017/22), TCLM is identified as having the lowest Reconstruction and Development Programme (RDP) housing backlog of all municipalities within EDM, and the total

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number of people on the housing waiting list stands at around 4,660, while in Ward 5 only 84 people are on the waiting list.

The GTM IDP (2016/17 – 2020/21) describes 83,91% of the housing types in the GTM as formal housing types, 7,31% as informal housing types, and 7,83% as traditional housing types, and the total number of people on the RDP housing waiting list stands at 2749.

3.3.8 Electricity

TCLM provides electricity to the urban areas, businesses and industrial sites, while electricity in the rural areas is provided by Eskom. Although there has been a steady growth in electricity supply since 1996, approximately 4,314 rural households in TCLM do not have access to electricity, which amounts to about 16% of all the households in TCLM (TCLM IDP, 2017/22).

In order to address the outstanding backlog, TCLM is working closely with Eskom to roll out bulk electricity supply in all areas including rural and farm areas. During the 2014-15 financial year 109 households were targeted for electricity connections (TCLM IDP, 2017/22).

According to the GTM IDP (2016/17 – 2020/21) a total number of 144 villages are electrified, and 56 villages are still without electricity. During the 2012/13 and 2013/14 financial year the Municipality introduced Operation Mabone Programme, which aims to accelerate household connections and to eradicate the electrification backlog. The programme is still under implementation and was supposed to be commissioned in December 2015.

3.3.9 Roads and Transportation

In general the main roads between Masishing, Sabie, Graskop, and Pilgrim‘s Rest are in relatively good condition. The TCLM IDP (2017 - 2022) acknowledges that the roads within the towns and villages (including the paved and unpaved roads) are not being maintained, and it highlighted the following as areas requiring attention:

• Resurfacing of asphalt roads; • Fixing of potholes; • Grading of dirt roads; • Lack of storm water systems; • Erosion on dirt and gravel roads; and • Lack of road signs and markings. Buses and minibus taxis are presently the two major modes of transport, and within TCLM there are three taxi associations including: • Masishing Taxi Association; • Sabie Taxi Association; and • Graskop Taxi Association.

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While GTM is responsible for the implementation and maintenance of all streets in the area, the provincial and district road network is the responsibility of the Road Agency Limpopo (RAL). Roads in the scattered villages are mostly un-surfaced and poorly maintained. Both surfaced and un-surfaced roads deteriorate during rainy seasons and the lack of storm water drainage and bridges worsen the problem. In GTM buses and taxis are the main mode of public transport, and although the GTM IDP (2016/17 – 2020/21) recorded 405 taxi vehicles, 18 public buses, and a number of private bus companies operating in the area, the GTM IDP (2016/17 – 2020/21) also stated that there is lack of public transport facilities and that an overwhelming majority of the taxi facilities are informal. According to the GTM IDP (2016/17 – 2020/21) unregulated and un-roadworthy taxis operating as metered taxis within the Burgersfort and Steelpoort areas are posing a threat to road users.

3.3.10 Development Challenges The TCLM IDP (2017 – 2022) identifies the following key challenges to development in the area:

• Inadequate institutional capacity of the TCLM; • Inadequate budgeting for operations and maintenance; • Low education and skills base; • Human settlements development and population growth; and • Prevalence of TB and HIV/AIDS.

The GTM IDP (2016/17 – 2020/21) identifies the following as key priority areas ranked in order of priority:

• Water • Electricity • Roads and storm water drainage • Waste removal • Housing • Cemeteries • Land acquisition • Hawkers stalls • Sports and recreation facilities • Street and traffic lights

According to both the TCLM IDP (2017 – 2022) and GTM IDP (2016/17 – 2020/21) the area possess great economic potential in mining, tourism and forestry, and the TCLM has embarked on the process

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of developing appropriate strategies and plans to promote and grow these sectors for the broader socio-economic development of the community.

Community needs can be converted into development opportunities for private sector investment, especially as part of corporate social responsibility and local economic development plans. 4. Socio-Economic Baseline Description of the Project Area 4.1 Introduction

This section of the report provides an overview of the socio-economic status of the potentially affected communities in the Project Area including the site-specific target population (Phetla) and the local target populations of the Shaga, Choma and Stageng/Makua communities.

It draws on information from focus group discussions and key informant interviews to provide characteristics of the potentially affected communities, which will assist with determining the socio- economic impacts of the project.

4.2 Local Governance Communities in the Project Area are governed by the following structures:

• Ward Committees – elected community members who work closely with the Ward Councillor, and are responsible for service delivery in the communities located in the Project Area; • Community Development Forums – elected community members responsible for identifying and communicating community development needs to the Ward Committees; • CPAs – landowners in the Project Area governed by the Communal Property Associations Act 28 of 1996 (CPA Act); and • Traditional Councils – elected traditional leaders governed by the Traditional Leadership and Governance Framework Act of 2003 (Framework Act) who are responsible for preserving cultural heritage resources, managing land and natural resources, supporting local development, and maintaining peace and communal justice systems.

In the Project Area the relationships between the governance structures and amongst community members vary from community to community. For example, in the Phetla community the primary governance structure is the Phetla Communal Property Association (CPA), which comprises an elected CPA Executive made up of land claimants and Traditional Council representatives from the Limpopo Province. The Choma CPA Executive does not recognise or engage with the newly established Community Development Forum, which is primarily made up of labour tenants who resided in the area prior to the land claims. The CPA Executive perceives the Community Development Forum as competing for authority and jostling for political power within the community (Key informant interview, 2017).

Similar to the Phetla community, the primary governance structure in the Choma community is an elected CPA Executive, which comprises land claimants and Traditional Council representatives

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primarily from the Limpopo Province. But unlike the Phetla community, the recently established Community Development Forum includes Choma CPA representatives, and these two structures are willing to work together to ensure development in the community (Key informant interview, 2017).

Due to the geographical reach of the Shaga community there are three Shaga CPAs, and all three elected CPA Executives work closely with the Community Development Forum and the local Traditional Council to ensure development in the area (Key informant interview, 2017).

In Stageng the elected CPA Executive are perceived by the local community – comprising traditional leaders, land claimants and labour tenants – as corrupt and non-transparent. Over the past few months the level of mistrusts between the CPA Executive and the local community have escalated to such an extent that the Stageng CPA Executive can no longer hold meetings in Stageng, and Executive CPA meetings are now held in Roossenekal in the Limpopo Province (Key informant interviews, 2017).

From key informant interviews and discussions with CPAs and Community Development Forum representatives, it is evident that land claims have caused conflict between land claimants and labour tenants who resided on the land prior to the land claims.

This is most evident in the Choma community where an interested and affected group, called the Protea Farms Community Forum, was established by labour tenants to challenge the land claims and to ensure that labour tenants benefit from development and employment opportunities in the area.

According to focus group participants representing the Protea Farms Community Forum, conflict between labour tenants and land claimants are so rife that labour tenants are unable to walk freely around the community without feeling threatened and harassed by land claimants. In addition, labour tenants accused the land claimants of killing a community member in August 2016, and of setting 40 hectares of peach trees alight. Moreover land claimants were accused of preventing labour tenants from gathering natural resources, which include amongst others collecting wood and traditional herbs for selling. This they argue, is impacting their livelihoods and increasing their vulnerability, as they are restricted from using natural resources to secure household incomes. For example, if a labour tenant is found with a parcel of wood for selling, the wood parcel is confiscated and handed to the Chairman of the Choma CPA (Focus group meeting, 2017).

During a key informant interview with representatives of the Choma Executive CPA it was noted that the Protea Farms Community Forum could not be trusted (Focus group meeting, 2017). The Ward Councillor for Ward 5 also echoed the same sentiments, and during a key informant interview she stated that “this group [the Protea Farms Community Form] is not a legal entity, and that they are troublemakers in the area (Key informant interview, 2017).”

Since the Ward Councillor was elected into office in August 2016, she has held meetings with the Phetla, Shaga and Stageng communities, and representatives of the Protea Farms Community Forum. The Ward Councillor does, however, still need to build and establish relationships with the Choma CPA Executive and Community Development Forum. The Ward Councillor is not prepared to work with the Protea Farms Community Forum, which could further increase their vulnerability and marginalisation.

In general community governance in the Project Area is complex and overshadowed by conflict over land claims and mistrust for community leaders who are perceived as not being representative of the broader community, corrupt and restricting access to natural resources and employment opportunities

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with mines in the area.

Engagement by the mine with only CPA Executive structures and community leaders is likely to be ineffective and to further fuel mistrust between community members and community leaders.

As an alternative to only communicating to neighbouring communities through existing governance structures and/or relying on CPAs to communicate key project messages to constituencies, the mine should also consider disseminating project information in community meetings that are representative of the local communities impacted by the Project. This will improve trust between the mine and the neighbouring communities, and assist the mine with gaining support for the Booysendal South Expansion Project and related mining activities.

4.3 Demographics

4.3.1 Population in the Project Area

The population comprises both land claimants and labour tenants, with the majority of land claimants moving to the Project Area in 2012.

Accurate population figures are not available for communities in the Project Area; however estimates were collected in consultation with community representatives and verified by community members in focus group meetings.

Table 4-1 provides an overview of the estimated population figures for communities in the Project Area.

Table 4-1: Estimated population of communities in the Project Area Community Estimate Households Estimate Population Phetla 50 450 Choma 53 477 Shaga 700 7000 Stageng 800 8000 Total 1 603 15 927 Source: Community Information Sheets, 2017

Estimate figures from the Community Information Sheets show that there are approximately 15 927 people residing in the Project Area with an average of 9,94 persons per household.

The majority of households comprise extended families including a husband, his wife, their children and grandparents.

4.3.1.1 Age and Gender Given that certain age groups and genders are more susceptible to potential mine related impacts, it is important to understand the age and gender dynamics characterising a Project Area.

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In the Project Area a relatively significant proportion of the population is under the age of 18 and dependent on their families for their livelihood. In focus group meetings community members stated that between 57% and 60% of the population in the Project Area were below the age of 18, and that very few people were above the age of 60. This demonstrates a low life expectancy possibly due to poor healthcare facilities and the spread of communicable diseases such as tuberculosis and HIV/AIDS.

Communities also estimated that the population in the Project Area comprised more females than males, and approximately between 38% and 45% of the population are male while women constitute between 62% and 55% of the population.

4.3.1.2 Ethnicity and Religion Within the Project Area Sepedi (90%) is the dominant ethnicity followed by Ndebele (10%), and 50% of the population practice Christianity, while the remaining 50% practice various traditional religions.

No church buildings were identified in the communities in the Project Area.

4.4 Land Use, Settlement Patterns and Tenure

4.4.1 Access to Land According to reports made by the communities in the Project Area, people were forcibly removed from the area in the early 1950s, and returned to the area from 1995 onwards to claim their land through the land redistribution programme being administered by the Department of Rural Development and Land Reform (DRDLR).

Land is supposed to be acquired through Traditional Councils and CPAs. The average plot size per household is one hectare.

As a result of the land claims and the perceptions of potential employment by surrounding mines, residents stated that there has been increased influx into the area, and that this settlement has been uncontrolled.

According to CPAs, newcomers are supposed to present themselves to the CPA Chairman, and request permission to occupy the land. However, very few community members are aware of any process for acquiring land or rights to occupy land.

At present, influx into the area is characterised by illegal squatting, and this was most evident in the Choma and Phetla communities.

4.4.2 Ownership and Tenancy The main landowners in the Project Area are CPAs and Booysendal Mine. During the study only one private farmer was identified in Shaga. According to community members in Shaga, the farmer recently acquired the farm, which is not under a land claim, and employs seasonal labourers to work on the blueberry farm.

4.5 Social Services and Infrastructure

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4.5.1 Education

4.5.1.1 Education facilities Three primary schools and one secondary school are located within the Project Area. Two of the three primary schools in the Project Area are located in the Shaga community. These include Shaga Primary School and Boschfontein Primary School. The third primary school, Kiwi Primary School, is located in the Phetla community, and the secondary school, Tonteldoos Secondary School, is located in Stageng.

Pupils in Stageng do not attend primary schools in the Project Area, and majority of these students are enrolled at Sisabonga Primary School in Roosenekal Limpopo.

The primary and secondary schools in the Project Area do not charge school fees. School fees are however charged by the secondary schools in Mashishing, which are the feeder schools for Grade 7 pupils attending Shaga and Boschfontein Primary Schools.

Shaga Primary School has three teachers teaching 60 pupils, and a teacher to pupil ratio of 1:20. The school has three classrooms. The 17 pupils in Grade 1, 2 and 3 are taught by one teacher and share a classroom. The 23 pupils in Grades 4, 5 and 6 are also taught by one teacher and share a classroom, and the nine pupils in Grade 7 have their own teacher and classroom. The pupils at Shaga School are mostly from Naaupoort and Rietfontein communities. Children in the Project Area are transported to school by government-supplied buses, and feeding programmes are funded by the Department of Education. For students able to attend a tertiary institution, key informants mentioned that students enrol at the University of Johannesburg in Nelspruit and the University of the Free State, which is reported to have a centre in White River.

Table 4-2: Primary and Secondary Schools in the Project Area School Name Location No. of teachers No. of pupils Fees (per annum) Shaga Primary Shaga 3 60 R0.00 School Boschfontein Shaga 11 304 R0.00 Primary School Kiwi Primary Phetla 4 62 R0.00 School Sisabonga Rossenekraal 11 667 R0.00 Primary School Tonteldoos Stageng 13 297 R0.00 Secondary school Skhila Secondary Mashishing 29 761 R350.00 School Mashishing Mashishing 1554 52 R450.00 Secondary School Source: Community Information Sheets, 2017

Key informants also noted that rural schools in the Project Area will be replaced by Combined Boarding

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Schools, and that schools likely to close in 2018 included Shaga, Boschfontein and Kiwi primary schools.

4.5.1.2 School Attendance All children were reported to attend primary school, and according to the Principal at Shaga Primary School there were no problems with absenteeism or dropouts at this school. This was attributed to the children being provided with transport to school, and on a daily basis between 95% and 100% attend school.

The Principal at Tonteldoos Secondary School also confirmed that pupils do not willingly bunk school, and that to assist Grade 12 pupils with attending Saturday school, pupils are required to stay close by; some students stay with relatives, some rent, and others unable to afford rent, build shanties and often stay in appalling conditions.

4.5.1.3 Progression to Secondary School Pupils passing Grade 7 at Shaga and Boschfontein Primary Schools enrol at Skhila and Mashishing Secondary Schools in Masishing.

In Stageng pupils attend primary school in Roossenekal and secondary school at Tonteldoos Secondary School in Stageng.

The pass rate for Grade 7s at Shaga Primary school is 50%, and for Grade 12s at Tonteldoos Secondary School was 76%.

However, it was stated by key informants that many students do not complete Grade 12 and leave school at various stages for diverse reasons.

4.5.1.4 Education challenges Some of the challenges listed by the primary and secondary schools in the Project Area included:

• No secondary school in Shaga, Choma and Phetla; • Children struggling to get to school during the rainy reason; • Textbook shortages; • Increased number of orphans; • Local schools not equipped with computer and science laboratories; • No library facilities; • Limited sports equipment, grounds and extramural facilities; • No flushing toilets; and • No administrative buildings for teachers.

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4.5.2 Healthcare

4.5.2.1 Healthcare Facilities and Infrastructure No established healthcare facilities exist in the Project Area. A mobile clinic is supposed to provide healthcare services to the communities, but this service is unreliable. In most communities it was stated that the mobile clinic only comes once every three months.

The closest healthcare services are located in Masishing (Masishing Hospital and Masishing Clinic), and a clinic in Mashishing Township. These facilities often have large number of patients seeking medical assistance and are often unable to attend to everyone.

Community members reported that the administration fee charged at the Masishing Hospital was R50.00. Healthcare services provide by Masishing Clinic and mobile clinics were free of charge.

According to community members the far distances required to access healthcare, results in many women giving birth at home. Women are assisted by midwives free of charge.

4.5.2.1 Common ailments and diseases Community members in the Project Area reported numerous ailments and diseases. The most commonly reported ailments and diseases included high blood pressure, diabetes, tuberculosis, diarrhoea, and colds and flu.

4.5.2.2 Traditional Medicine Very few community members reported consulting with traditional healers. Majority reported self- medicating with traditional herbs collected in the nearby forests.

Traditional healers are expensive, and their consultation fees range between R100.00 and R500.00; depending on the condition they are treating and the medicine they are administering.

4.5.2.3 Healthcare challenges Some of the healthcare challenges listed by community members in the Project Area included:

• No clinic or permanent healthcare facility in the Project Area; • No ambulance services; • Unreliable and poorly resourced mobile clinics; • High transport costs to travel to Masishing for medical care; and • High administration fees at Masishing hospital.

4.5.3 Housing There are a variety of housing types and structures in the Project Area. Some are large farm style houses comprising two or three bedrooms, while others are shanties erected from corrugated iron, but the majority of houses are built from cement bricks with corrugated sheet roofing. Very few traditional

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houses are built using mud and thatching straw. Households usually consist of one or two structures for extended family members. In addition to these primary structures each household will also have one or two outbuildings for livestock. These outbuildings are generally constructed using using wood and wire.

In addition to the primary structure, or structures, some households will have a pit latrine.

Very few houses doubled as a residential home and a business.

4.5.4 Household Assets Households have very few assets. Common assets include furniture, such as chairs, tables and mattresses.

Radio and television signal in the Project Area is weak, and a few houses did have satellites dishes. Cellular telephones are the main source of communication.

4.5.5 Energy Although most households have access to prepaid electricity in the Project Area, limited financial resources often restrict households from making use of electricity.

Candles are the main source of lighting.

Wood is the primary source of energy for cooking and (black pit) is gathered from the surrounding environment and not purchased.

4.5.6 Water Supply In the Project Area most households collect water from rivers and springs. In some communities it was stated that boreholes provided by the government used to supply water to the communities, but these are no longer functioning. The Protea Farms Community Forum was the only community in the Project Area to report having gravity fed communal pipes provide water to household stands.

Several streams and rivers (tributaries of the Groot Dwars River) are utilised for domestic purposes, crop irrigation and watering of livestock.

Mostly women and children collect water twice a day, and community members reported that the distance to water sources varies from household to household, but that it can take between 5 and 30 minutes to walk to the rivers and springs to collect water.

Community members also stated that during the winter months water levels might be low affecting supply.

According to community members the water quality is poor. Water is brown due to communal use and livestock stirring up sediment. In Shaga it was reported that the water is polluted with litter and illegal dumping by businesses in the area.

Water is consumed without any sterilisation or filtering treatment, and community members attributed this to the high prevalence of diarrhoea, particularly amongst children in the Project Area.

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4.5.7 Sanitation Households in the Project Area have limited sanitation facilities. Some community members use pit latrines (often shared); alternatively they make use of the bush.

4.5.8 Refuse Removal No refuse services were supplied to the communities in the Project Area. Households generally throw their refuse into the surrounding bush, or burn and bury it.

4.5.9 Roads and Transport The nearest tarred road to the Project Area is the Roossenekal-Masishing road (R577). Although the tar roads are generally well maintained, they are often damaged by heavy mining vehicles.

The gravel roads in the Project Area are not well maintained and are in general poor condition. In rainy seasons the roads are flooded and muddy, making transport difficult and dangerous.

Travel within the Project Area is generally by foot, and people often walk to nearby locations and the closet main road (R577) to hitchhike.

The distance from communities in the Project Area to the main road vary, and some communities mentioned that it takes approximately five hours to walk to the R577. Once at the main road, people hitchhike or catch private taxis to Masishing. Travel costs vary between R120.00 and R160.00 return.

It was reported that no taxis operate in the area.

4.6 Livelihood Strategies

4.6.1 Employment Although communities mentioned that there are mines in the area (Two Rivers Platinum and Booysendal Mine), they also stated that these mines do not provide transport for employees. As result access to these mines is difficult, and thus employment with these mines is limited.

Choma was the only community in the Project Area to report that approximately 15 people are employed as casual labourers at Booysendal Mine. None of the other communities reported that community members were employed by Booysendal Mine.

In Shaga it was however reported that some community members are employed as seasonal labourers at the blueberry farm. In other communities it was stated that employment on farms has declined as a result of the land claims.

4.6.2 Farming In the Project Area, community members stated that due to high levels of unemployment, all households (100%) rely on subsistence farming as their primary livelihood, and that livestock rearing was widely practiced by about 70% of the households.

Prominent crops grown on fields (approximately 160 m2) include maize, sorghum, beans and potatoes.

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Fruit trees such as peaches were also reported.

Field are not irrigated and livestock manure is used to fertilise fields.

Livestock include cattle and goats, as well as sheep and chickens, which roam freely and in the evenings return to the household kraal.

4.6.3 Collecting Medicinal Plants and Herbs Although harvested medicinal plants (i.e. African potato, lengana and aloe) are used for household consumption, it was reported that some people sell traditional herbs, and that lawang was commonly sold to Somalis.

Although community members acknowledge that harvesting the lawang is illegal, they also reported that since Booysendal Mine erected a perimeter fence around their concession, this has restricted community members from harvesting the herb.

4.6.4 Businesses and Markets None of the communities reported business owners, markets or retailers in the Project Area.

Community members are generally required to travel to Masishing to get fresh produce, domestic products and other household essentials.

In Shaga it was reported that people barter brooms for mielie meal and sugar.

4.6.5 Skills and Artisans In communities it was reported that a number of community members are artisans with varying skills. These skills include welding, driving, operating heavy machinery, construction, bricklaying, baking, catering, and sewing.

Most of the community members did however state that although the community members have these skills majority of them do not have the required qualifications for employment with the neighbouring mines.

Skills training and development was identified, as a priority community need.

4.7 Income and Expenditure

4.7.1 Income As a direct result of the high unemployment rates in the project area, many community members rely on remittances and social grants including child and pension grants.

4.7.2 Expenses Households in the Project Area reported that their main monthly expenses included transport, food, and energy (candles), as well as airtime and clothing.

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4.8 Ecosystem Services

Local communities make use of a wealth of natural resources that are freely and readily available in the Project Area. These natural resources provide households with valuable sources of food, fuel, income, building materials and various other uses.

The most common uses of natural resources in the Project Area include:

• Subsistence farming and vegetable gardening; • Grazing of livestock; • Collecting firewood for cooking; • Collecting wood for building material; • Collecting medicinal herbs and plants; • Collecting clay for pottery; • Harvesting honey; and • Collecting grass for thatching and brooms.

No communities reported fishing and hunting.

In a number of the communities it was reported that since Booysendal erected a perimeter fence in 2015, households are unable to access these natural resources, which is having a detrimental impact on their way of life.

4.9 Cultural Assets and Customs Communities in the Project Area identified cemeteries and initiation sites as key cultural assets. In Phetla and Stageng it was reported that the perimeter fence erected by Booysendal is restricting access to cemeteries located in the mountains.

In Shaga, Choma and Phetla initiation sites are located in Mashishing, although it was stated in Phetla that Booysendal has restricted access to an initiation site located close to TKO Dam.

4.10 Crime Livestock theft, housebreakings and petty theft were reported are the main crimes in the Project Area. According to community members, crime has increased substantially over the past few years as more people have moved in to the area.

There are apparently very few cases of domestic violence, rape and murder.

Although unemployment is high, it was noted that there is no prostitution occurring in the Project Area.

4.11 Vulnerability Vulnerability is defined as the inability to generate sufficient resources to feed, clothe, shelter, and meet

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basic human needs (i.e. water, sanitation, healthcare services, and education).

In the Project Area the vast majority of the population can be regarded as vulnerable due to high levels of unemployment and poverty. However, in terms of identifying the most vulnerable groups these include those who cannot work the land, have no other means of income generation and no family support or who are separated from the majority of the population in terms of access to facilities. These may include:

• Children and Youth: Approximately 60% of the population in the Project Area are under 18 years of age. The children and youth most at risk in this context are those in households headed by single parents or by relatives replacing parents (i.e. grandparents, aunt and uncles). Child headed households are also in a vulnerable position. Primary needs of youth and children include education, access to recreational facilities and job opportunities. • Women and Widows: Among women, groups requiring particular support are single mothers and widows. Some of the primary needs for women include access to health facilities, child support grants, job opportunities and education. • Elderly: Often the elderly support and assist the household with livelihood activities and social grant money from pensions. Access to health facilities and public transportation are some of the primary needs for these people. Elderly people mostly at risk are those without support. • Disabled and Chronically Ill: This includes households and families providing support to disabled and chronically ill people. Those at risk are the ones outside this support system. The primary needs for these people include access to public transport and specialised educational facilities and programmes. In the Project Area there are currently no Non-Governmental Organisations (NGOs) operating in the area, which are able to assist vulnerable households.

4.12 Perceptions of Project Area Communities

4.12.1 Development Challenges In the Project Area communities identified the following key challenges to development:

• Inadequate employment opportunities; • No clinic in the Project Area; • No primary school in Stageng; • No secondary school in Shaga, Choma and Phetla; • No bulk water and sanitation supply; • Low education and skills base; • High adult illiteracy; • Poor road conditions; and • No public transport system.

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Although community members understand that TCLM is responsible for service delivery and infrastructure development, communities recognise the roll that businesses, and mines in particular, can play in improving their lives.

4.12.2 Perceptions on Mining The expectation for Booysendal to improve the lives of community members was strongly expressed by community leaders and community members who feel that the mine is currently not doing enough to assist communities with employment opportunities, skills development, the provision of social services and infrastructure development.

The majority of the communities expressed disappointment with empty promises made by the mine, and stated that they did not want the government to approve the expansion project if Booysendal was not committed to benefiting local communities.

Other perceptions expressed by community members included:

• The mine is engaging only with CPA Executive Members and not with community members; • The mine is not employing local community members, and is only employing people from Mashishing; • Communities know the mine is operating in the area without the required permits; • Communities are concerned that employment opportunities will result in more people moving into the area; • Concern was raised that the mine will pollute the air and water sources; • Since the mine erected a perimeter fence, communities can no longer access natural resources vital for their survival; • Some community members are concerned that blasting will cause damage to houses; • Communities are concerned that the mine will encroach on land for farming and grazing; • Concern was raised that the mine will not respect local customs and cultural heritage sites. Communities are concerned that the mine will restrict access to gravesites; • Since the mine started operating in the area, the number of snakes in their communities has increased; • The mine promised to award bursaries to tertiary institutions, but these did not materialise; and • Increased distrust and conflict between community members and community leaders, as a result of unfulfilled promises.

From the perceptions expressed by the communities it is evident that communities in the Project Area do not trust the mine, and that proper engagement with communities in the area is critical to improving the relationship between the mine and the neighbouring communities.

Although communities generally feel that the proposed project could provide employment opportunities

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and improve social services and infrastructure in the area, for people to be happy with the mine, they must actually see the benefits derived from community development projects.

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5. Authorised Signatory

Signed for and on behalf of Amec Foster Wheeler Earth & Environmental (UK) Ltd. by its authorised officer:

...... Signature

Tandi Reilly ...... Name

Social Scientist ...... Position

09/04/2018 ...... Date

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Appendix 1 List of Secondary Data Sources

Secondary Sources:

Hall, R, (2008), Decentralization in South Africa's Land Redistribution, Johannesburg, South Africa.

Mphahlele Wessels & Associates, (2016), Social Impact Assessment Scoping Report, Johannesburg, South Africa.

Rugege, S, (2004), Land Reform in South: An Overview, Legal Info. 283, http://ccs.ukzn.ac.za/files/LandreforminSouthAfrica.pdf https://en.wikipedia.org/wiki/Mpumalanga (downloaded 14th February 2017) https://en.wikipedia.org/wiki/South Africa (downloaded 14th February 2017) http://www.gov.za/about-government/government-system/local-government (downloaded 17th February 2017) http://www.etu.org.za/toolbox/docs/localgov/webundrstdlocgov.html (downloaded 20th February 2017) http://www.limpopo.gov.za (downloaded 24th February 2017) http://www.ehlanzeni.org (downloaded 24th February 2017)

Sekhukhune District Municipality Integrated Development Plan (2016/17 – 2020/21)

Ehlanzeni District Municipality Integrated Development Plan (2016/17)

Ehlanzeni District Municipality Integrated Development Plan (2017/18)

Thaba Chweu Local Municipality integrated development Plan (2017/2022)

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Appendix 2 Attendance Registers

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Appendix 3 Declaration of Independence

I, Tandi Reilly, declare that: •I act as the independent environmental practitioner in this application •I will perform the work relating to the application in an objective manner, even if this results in views and findings that are not favourable to the applicant •I declare that there are no circumstances that may compromise my objectivity in performing such work; •I have expertise in conducting social impact assessments, including knowledge of the National Environmental Management Act 1998 (Act No. 107 of 1998) (NEMA) and any guidelines that have relevance to the proposed activity; •I will comply with the Act, regulations and all other applicable legislation; •I have no, and will not engage in, conflicting interests in the undertaking of the activity; •I undertake to disclose to the applicant and the competent authority all material information in my possession that reasonably has or may have the potential of influencing - any decision to be taken with respect to the application by the competent authority; and - the objectivity of any report, plan or document to be prepared by myself for submission to the competent authority; •I will ensure that information containing all relevant facts in respect of the application is distributed or made available to interested and affected parties and the public and that participation by interested and affected parties is facilitated in such a manner that all interested and affected parties will be provided with a reasonable opportunity to participate and to provide comments on documents that are produced to support the application; •I will ensure that the comments of all interested and affected parties are considered and recorded in reports that are submitted to the competent authority in respect of the application, provided that comments that are made by interested and affected parties in respect of a final report that will be submitted to the competent authority may be attached to the report without further amendment to the report; •I will keep a register of all interested and affected parties that participated in a public participation process; and •I will provide the competent authority with access to all information at my disposal regarding the application, whether such information is favourable to the applicant or not •all the particulars furnished by me in this form are true and correct; •will perform all other obligations as expected from an environmental assessment practitioner in terms of the Regulations; and •I realise that a false declaration is an offence and is punishable. Disclosure of Vested Interest I do not have and will not have any vested interest (either business, financial, personal or other) in the proposed activity proceeding other than remuneration for work performed in terms of the Environmental Impact Assessment Regulations, 2010.

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Signature of the environmental practitioner: Private Consultant ______9/04/2018 ______Date:

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Appendix 4 Curriculum Vitae

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Social Impact Assessment Tandi Reilly – Social Specialist

Professional summary Tandi Reilly is a social development consultant with more than 10 years’ experience in undertaking social impact assessments, and developing social management plans for the mining industry. Tandi has worked on various mining projects throughout Africa, and in particular Southern Africa, undertaking socio-economic surveys, engaging with key stakeholders, facilitating public consultation meetings, and assisting mines with resettlement, developing management plans, information systems and procedures to manage social risks and project impacts.

Over the past three years Tandi has worked primarily as a resettlement specialist, and as one of many specialists appointed by Kumba Iron Ore to facilitate and implement the relocation of more than 3500 community members from Dingleton to Kathu. This work included completing a Census for the project, gathering monitoring data and managing the Renters Information Desk.

Professional qualifications/registration(s) International Association of Impact Assessments SA (IAIAsa)

Education School, college and/or University Degree/certificate or other specialized Date Obtained Attended education obtained University of Witwatersrand MA (Sociology) 2009 University of Witwatersrand BA (Hons) (Sociology) 2006 University of Witwatersrand BA (Economic Studies, International 2004 Relations and Sociology), University of the Witwatersrand

Languages Language Speaking Reading Writing English Excellent Excellent Excellent

Countries with work experience Democratic Republic of the Congo Burkina Faso Senegal Sierra Leone Liberia Mali Madagascar South Africa Mozambique Swaziland Uganda Zimbabwe Lesotho Kenya Zambia

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Employment history Dates of employment Position held Company 2011 – to present Director Social Enterprise Solutions and Surveya Global

2007 - 2011 Social Consultant SRK Consulting 2008 Part-time Junior University of Witwatersrand, Sociology Department Sociology Lecturer 2005 - 2006 Junior Researcher and University of Witwatersrand, Sociology Department Project Administrator

Representative projects Date Position held Name of Project Client Task Description 2014 – to Project Dingleton Kumba Iron Ore Completed the Census for present manager Resettlement the Kumba Iron Ore Project, Project and was one specialist of a team of specialists appointed to assist Kumba with relocating more than 3500 community members from Dingleton to Kathu. Regularly undertake surveys for the Dingleton Resettlement Project to update census data and to monitor resettlement and livelihood impacts. 2011 – Lead Kriel RAP Project Kriel Colliery Over a five-year period 2016 Resettlement completed annual Specialist resettlement monitoring reports on 20 households resettled by Kriel Colliery to Thubelihle. Developed and implemented social management plans, and in particular, a Livelihood Restoration Plan for the project. 2014 – Lead social Ethemba Dam Knight Piésold Managed the preparation of 2015 and ESIA the Social Impact stakeholder Assessment and facilitated engagement four rounds of feasibility specialist stakeholder engagement meetings. 2014 Data specialist Falea Project Mali SRK Consulting Automated a bilingual household questionnaire for SRK, and managed data collection for social reporting. 2013 Data specialist NYA Cement Plant SRK consulting Developed a mobile solution

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Date Position held Name of Project Client Task Description to gather socio-economic data for a resettlement action plan being undertaken for a resettlement project in the DRC. 2013 Social Wildlands M&E Wildlands Assisted Wildlands specialist Project Conservation Conservation Trust with Trust developing a Social Monitoring Plan and procedure that included gathering socio-economic data to measure carbon offsets using mobile technology. 2013 – Lead social Buchanan Tailings AMEC Foster Lead social and consultation 2014 and Project Wheeler specialist for an ESIA being stakeholder undertaken for a proposed engagement iron ore tailings reprocessing specialist project in Grand Bassa, Liberia. 2013 Data specialist KIS Project Synergy Global Assisted Synergy Global with developing and managing a mobile solution for gathering census and socio-economic data for a road develop project in Uganda. A total of 984 census and 264 socio- economic surveys were completed in 28 days by six fieldworkers using Surveya’s technology and tablets. 2012 Data specialist Sadiola ESIA SRK Consulting Gathered socio-economic Project data for a social impact assessment being undertaken for a proposed gold mine in Mali. 2011 Social Base Titanium Nomad Responsible for gathering specialist Limited RAP Consulting and reporting on socio- economic data for a resettlement monitoring project for a proposed mineral sands mining project in Kwale, Kenya. 2011 Social Team Naboom Chrome SRK Consulting Social team project manager Project Project and social specialist for an Manager ESIA being undertaken for a chrome mine in the Limpopo

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Date Position held Name of Project Client Task Description Province. 2011 Social Kriel RAP Project SRK Consulting Developed a mobile solution specialist to gather socio-economic data for a Resettlement Action Plan being developed by SRK Consulting for a proposed coal mine in Mpumalanga, South Africa. (2011).

Publications and presentations

ARHAP, 2006, Appreciating Assets: The Contribution of Religion to Universal Access in Africa, Report for the World Health Organisation, (Cape Town, October 2006).

Synergy Global, 2013, Guest lecture on data gathering tools for the Community Relations Practitioners Course held in April 2013 and September 2013.

Certification I certify that (1) to the best of my knowledge and belief, this CV correctly describes me, my qualifications, and my experience; (2) that I am available for the assignment for which I am proposed; and (3) that I am proposed only by one Offeror and under one proposal. I understand that any wilful misstatement or misrepresentation herein may lead to my disqualification or removal from the selected team undertaking the assignment.

Tandi Reilly Social specialist

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Social Impact Assessment Booysendal South Expansion Project Phase 1 and 2

Booysendal South Expansion Project Phase 2

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DISCLAIMER

This report is submitted in confidence by the Wood PLC (including Amec Foster Wheeler) South Africa (Pty) Ltd, solely for use by the business entity as described in this document requesting the service (hereinafter referred to as the “Client”). It is understood that Client’s receipt of this report constitutes an agreement that its distribution will be limited and controlled according to the non-disclosure agreement, agreed to between Wood (including Amec Foster Wheeler South Africa (Pty) Ltd) and the Client. All copies of this report that are not retained in the Client’s confidential business records will be properly destroyed upon the completion of review. No part of this document will be divulged to Wood PLC (including Amec Foster Wheeler South Africa (Pty) Ltd’s) competitors or any third parties without Wood (including Amec Foster Wheeler South Africa (Pty) Ltd’s) prior knowledge and written consent.

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CONTENTS

1.1 Terms of Reference for EIA for the SIA ...... 4 1.2 Report Structure ...... 4 1.3 Social Specialists ...... 4 2.1 Project Area ...... 5 3.1 South African Legal Framework ...... 11 3.2 National policies, strategies and plans ...... 14 3.3 International Standards, Guidelines and Requirements ...... 17 4.2 Impact Assessment ...... Error! Bookmark not defined. 4.3 Mitigation and Management ...... 22 4.4 ESIA Specialist Integration...... 22 5.1 Construction Phase ...... 23 5.2 Operational Phase ...... 23 5.3 Decommissioning and Closure ...... 24 5.4 Cumulative impacts ...... 24 5.5 Summary of Impacts ...... 25 5.6 Impact ratings ...... 26

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Social Impact Assessment

1. Introduction

Booysendal Platinum Propriety Limited (“Booysendal”) is a platinum group metal (PGM) mine approximately 33km west of Mashishing (Lydenburg), 40km south-southwest of Steelpoort, 32km north of Dullstroom and 21km northeast of Roossenekal. The mine consists of two mining rights (MR), Booysendal MR (LP 30/5/1/3/2/1 (188) EM) and Booysendal South MR (MP 30/5/1/2/3/2/1 (127) EM together forming the Booysendal Operation (refer to Figure 1-1). The Booysendal South MR (previously known as Everest) was acquired from Aquarius Platinum Propriety Limited in 2015. Although the two MRs is not consolidated, it is managed as one integrated operations, the Booysendal Operation.

Booysendal has identified a window of opportunity to increase PGM production to meet short to medium term projected demands for platinum and commenced with expansion of the BS over two Phases.

As part of the authorisation process, Booysendal is required to prepare an Environmental and Social Impact Assessment (ESIA) for the Booysendal MR and the Booysendal South MR Booysendal South Expansion Project.

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Figure 1-1: Location of the Booysendal South Expansion Project

During an ESIA process social impacts are identified through two processes namely; the public consultation process and the socio-economic baseline study. Both these processes form an integral component of the ESIA, and in January 2017, AMEC Foster Wheeler (including Wood PLC.) completed a socio-economic baseline study comprising key informant interviews and focus group meetings.

This report presents the findings of the Social Impact Assessment Report, which describes the negative, positive and cumulative impacts of the Booysendal South Expansion Project.

Identified positive and negative social and economic impacts can be mitigated and managed. As such, there is no reason – from a socio-economic assessment point of view – why the proposed Booysendal South Expansion Project should not proceed, if the mitigation and management measures recommended in this report are implemented alongside the following social management plans: • Social and Labour Plan; • HR policies; • Stakeholder Engagement Plan; • Archaeological and Heritage Management Plan; and • Transport Management Plan.

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1.1 Terms of Reference for EIA for the SIA

The terms of reference for the Booysendal South Expansion Project are: • Identification, mapping and analysis of stakeholders; • Socio-economic baseline study of the Booysendal South Expansion Project Area; • Identification of prevalent perceptions and attitudes towards the mine and the Booysendal South Expansion Project; • Identification and rating of potential impacts that the mine will have on local communities. This will be informed by the Impact Assessment methodology as illustrated in Section 4.1.2; • Identification of current monitoring systems for mitigating of impacts; and Development of cost-effective mitigation measures for avoiding and ameliorating potential future impacts.

1.2 Report Structure

In the compilation of the SIA, the consultant will comply with the relevant national legislative requirements, such as those stipulated in National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA) and Mineral and Petroleum Resources Development Act, 2002 (MPRDA) (Act No. 28 of 2002), as well as with the relevant international best-practice standards, such as the World Bank Standards and International Finance Corporation (IFC) Principles and Performance Standards.

This Social Impact Assessment specialist report is structured as follows:

• Section 2: Booysendal South Expansion Project Description • Section 3: Legal Framework for an ESIA • Section 4: Impact Assessment Process • Section 5: Potential Impacts • Section 6: Management Plans and Long-Term Monitoring • Section 7: Conclusion and Recommendations • Section 8: References

1.3 Social Specialists

The consultants involved in the study have been preparing impact assessments for a period spanning over 29 years.

Table 1-1: Social specialists involved in the impact assessment

Consultant Qualifications and of Expertise

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Mosidi Mphahlele B. Admin, MSc Development Planning (Lead Consultant) Mosidi specialises in the areas of: • Social and Labour Plans; • Baseline studies; • Social Impact Studies; • Local Economic Development; and • Stakeholder Engagement. Mosidi were responsible for the general development of the study, focusing on the baseline studies, stakeholder consultations and identification of the impacts Tandi Reilly BA Hons, MA, Sociology (Consultant) Tandi Reilly specialises in the areas of: • Social Impact Assessment • Public consultation and stakeholder engagement • Resettlement Action Planning

Tandi assisted with the general development of the study, focusing on the baseline studies, stakeholder consultations and identification of the impacts and management, mitigating and monitoring requirements. Refer to Annexures 1 and 2 for a copy of Tandi Reilly’s CV, and a Declaration of Independence.

2. Project Description

Booysendal identified an opportunity to expand its operations and increase production to meet the projected short to medium term platinum market demands. Having acquired the mining rights for the full extent of the project area earmarked for the expansion, mining expansion commenced in 2016 with further expansions planned. This total expansion project is known as the Booysendal South Expansion Project.

The Booysendal South Expansion Project is divided into two phases:

2.1.1 Booysendal South Expansion Phase 1

An integrated environmental authorisation (EA) and EMP Amendment under Section 24G of NEMA were granted by the Department of Mineral Resources (DMR) Limpopo Regional Office on 05 January 2018 for this Phase of the development. The integrated EA was granted in terms of listed activities under NEMA and the National Environmental Management: Waste Act, 59 of 2008 (NEMWA). These activities were applicable to the Booysendal and the Booysendal South MRs. This phase of the expansion involves:

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• The development of the BS1/2 mine consisting of mining terrace, portal, seven adits, workshops, offices, water and related infrastructure; • The Merensky Adits (BCM1 and BCM2) without any surface infrastructure components; • A 132kVA powerline from BN to BS1/2; • Upgrade and new stormwater infrastructure at BS4; • Reworking of tailings at the current BS4; • Backfilling of the underground workings with tailings; • The construction of associated surface and linear infrastructure, including a 13.2m wide bitumen access road, an aerial rope conveyor (ARC) system, water pipelines between BS1/2 and the Valley Boxcut (which forms part of the Booysendal South MR).

2.1.2 Booysendal South Expansion Phase 2

Booysendal Mining Right Activities

The layout of the proposed Booysendal expansion involves: • Development of surface infrastructure at the two Merensky Adits (BCM 1 and BCM2); • Development of an Emergency Escape Portal to serve BCM1, BCM2 and the BS1/2 underground complex • Retaining a 11VA powerline from BN to BS1/2; • Process and clean water pipelines between BS1/2 and BN; • Access roads to the BCM1 and BCM2 Adits and ARC; an • An Arial Rope Conveyor (ARC) system from BS1/2 to BN.

The following changes and new infrastructure components are applicable to the Project (refer to Figure 2-1): • There will now be surface infrastructure associated with each of the two Merensky portals, including conveyor systems, workshops, offices, a Pollution Control Dam (PCD) at each, water storage tanks etc. The northern Merensky has also been slightly moved to be sided by streams and not across a drainage line any longer. Undermining is however still applicable as indicated in the revised drawings; • Potable and process water lines for BS1/2 and the Merensky mines will run along the main access road between BS1/2 and BN; • The water line (previously TKO line) will now follow the existing TKO route to BS4 (ex-Everest) from where it will then run underground to surface at the Valley Boxcut; • Surface infrastructure components will now be constructed at the ex-Everest Valley Boxcut to form a fully operational mine in accordance with the approved layout received in 2009; • The emergency escape portal has been reintroduced in the project requirements;

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• Recommissioning of the ex-Everest Process Plant; • Backfill Plant with various pipelines at ex-Everest; and • The ARC route from BS1/2 to BN.

Figure 2-1 Booysendal MR Expansion Activities

2.2 Project Area

Defining the study area is used to determine a project’s area of influence and responsibilities. It also provides guidance on the area to be monitored, and managed, and assists with defining stakeholders, and the tools needed to gather data for identifying project impacts.

For this study three interdependent target populations were included in the Project Area:

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Figure 2-2: Site specific target population

• Figure 2-3). In terms of direct area of influence, the majority of the properties on which the Booysendal South Expansion Project Phase 2 will take place, belong to Booysendal Platinum Limited. A section of the main access road and aerial ropeway will cross over the remaining extent of the Farm Sterkfontein 52JT which belongs to the Phetla Community Property Association (CPA). The Phetla community, north of BS4, is the closest community, which may be directly affected by Booysendal South Expansion Project Phase 2. • The local target population: Comprise the people residing within close proximity to the proposed mining operation at BS1 and BS2; these are in Wards 5 of the Thaba Tchweu Local Municipality (TCLM), and include the following three communities; Shaga, Choma and Stageng/Makua communities (refer to Figure 2-3).

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• The regional target population: The area likely to experience indirect or induced impacts of the Booysendal South Expansion Project Phase 2. This encompasses the populations of the Ehlanzeni and Sekhukhune District Municipalities. Due to Ward 5 of the TCLM bordering Ward 31 of the Greater Tubatse LM, which falls in the Limpopo Province, the expansion project will continue to have an influence in Limpopo. The baseline study primarily focuses on detailing the site-specific and local target populations, and provides a high-level summary on the regional target populations of Ehlanzeni District Municipality in Mpumalanga and Sekhukhune District Municipality in Limpopo.

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Figure 2-2: Site specific target population

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Figure 2-3: Local target population

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Figure 2-4: Regional target population

Source: Mphahlele Wessels and Associates, 2016 3. Legal Framework for an ESIA

This SIA is guided by the requirements of the NEMA, the National Environmental Management: Waste Act, 59 of 2008 (NEMWA), the National Environmental Management: Biodiversity Act, 10 of 2004 (NEMBA), Section 41 of the National Water Act, 36 of 1998 (NWA), and the MPRDA as provided for in terms of Section 11 of Regulation GNR 982 of 4 December 2014 and promulgated in terms of Chapter 5 of NEMA.

Booysendal through its Booysendal Mine, will continue to play an important role in the economic sphere of Greater Tubatse and Thaba Chweu Local Municipalities. The company therefore has an important social responsibility towards its surrounding communities during construction, operations and decommissioning of the mine. Against this background, it is important to fully understand the legal and institutional framework that must guide the Company’s current and future activities.

3.1 South African Legal Framework

For purposes of this assessment the following Government departments have been identified as playing a key role in the issuing of mining rights:

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• DMR: the lead agent, approves Social and Labour Plans (SLP), issues the mining license, facilitates closure inspections and is the issuer of a closure certificate, issue EAs and approve EMP Amendments; • The Thaba Chweu Local Municipality (TCLM) and Ehlanzeni District Municipality (EDM): authorise SLPs and provide input into the Mine Closure Plan and interfacing thereof with the Integrated Development Plan (IDP) of the local area; and • Department of Water and Sanitation: Olifants River Catchment Management Agency has to approve the Integrated Water Use License Application (IWULA).

3.1.1 Related Acts and legislation

The following acts and legislation have a bearing on the study; • The MPRDA which requires that mining companies assess the social impacts of their activities from start to closure, and beyond; and which also requires that mining companies compile and implement a SLP as well as address negative social impacts. The following sections of the Act are applicable to the socio-economic aspects of the mine operations and closure

a) Section 2 (f) of the MPRDA (2002) promote employment and advance the social and economic welfare of all South Africans;

b) Section 2 (i) of the MPRDA (2002) and the Mining Charter (2010) ensure that holders of mining or production rights contribute towards the socio-economic development of the areas in which they are operating, as well as, the areas from which the majority of the workforce is sourced and to utilize and expand the existing skills base for the empowerment of HDSA and to serve the community;

c) Section 37 of the MPRDA (2002) addresses the adoption of the principles for sustainable development, by integrating social, economic and environmental factors into the planning, implementation, closure and post-closure management of mining operations;

d) Section 40 of the MPRDA (2002) makes provision for a consultative decision-making process by government departments and organs of State on national, provincial and local authority level;

e) Section 44 of the MPRDA (2002) provides for the retention or removal of buildings and structures; and

f) Regulation 46(d) of the Social and Labour Plan, which is discussed below. • Regulation (46) (d) (i): establishment of a Future Forum to ensure an enduring dialogue between the workforce and management regarding the mining operation and factors affecting the mine’s validity and impact.

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• Regulation (46) (d) (ii): provides for mechanisms to save jobs and avoid job losses and a decline in employment. Where job losses cannot be avoided, Regulation (46) (d) (ii) requires mechanisms for alternative solutions and procedures for creating job security. • Regulation (46) (d) (iv): requires mechanisms to ameliorate the social and economic impact on individuals, regions and the economics where retrenchment or closure of the mine is certain. • Mine Health and Safety Act, 1996 (Act 29 of 1996): this act is administered by the Mine Health and Safety Inspectorate of the DME. The only sections of the Act applicable to the Impact Assessment are sections 2 and 5, which state that the employer must ensure and maintain a safe and healthy environment at the Mine, during construction, operation, decommissioning and closure • Labour Relations Act, 1995 (Act 66 of 1995): aims to promote economic development, social justice, labour peace and democracy in the workplace. • Basic Conditions of Employment Act, 1997 (Act 75 of 1997): regulates the right to fair labour practices conferred by section 23(1) of the Constitution:

a) by establishing and enforcing basic conditions of employment; and

b) by regulating the variation of basic conditions of employment • The Department of Mineral Resources Consultation Guidelines: compiled for use by applicants for prospecting and mining rights. Gives a broad and general definition of what constitutes consultation. Defines consultation as “a two way communication process between the applicant and the community or interested and affected party wherein the former is seeking, listening to, and considering the latter’s response, which allows openness in the decision making process”. Provides that “interested and affected parties” include, but are not limited to: host communities, landowners, traditional authority, land claimants; lawful occupiers, the Department of Land Affairs, any other person (including on adjacent and non-adjacent properties) whose socio-economic conditions may be directly affected by proposed prospecting or mining operations; the Local Municipality; and the relevant Government Departments, agencies and institutions responsible for the various aspects of the environment and for infrastructure which may be affected by the proposed project (Sibisi & Tucker, 2012). • The NWA, which in terms of Section 27 requires a motivation for the Project, including the need to redress the results of past racial and gender discrimination; the socio-economic impact should the project be authorised or not authorised; and the strategic importance of the water use to be authorised. • The Extension of Security of Tenure Act, 1997 (Act 62 of 1997), which confers certain rights to non-landowning residents of a property, which such rights are linked to the period of time in which persons have been resident on the land. • The Development Facilitation Act, 1995 (Act 67 of 1995), which sets out the principle that policy, administrative practice and laws should support effective integrated planning, the optimal use of existing resources, the promotion of sustainable development, the requirement that land use should be judged on its merits. • White Paper on Local Government (1998): establishes the basis for a new developmental local government system, which is committed to working with citizens, groups and communities to create

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sustainable human settlements, which provide for a decent quality of life and meet the social, economic and material needs of communities in a holistic fashion. • Traditional Leadership and Governance Framework Amendment Act, 2003 (Act 41 of 2003) and Council of Traditional Leaders Act, 1997 (Act 13 of 1997): these acts provide for the recognition and establishment of traditional communities and councils, as well as, to provide a framework for leadership and the roles and responsibilities of traditional leadership. • Municipal Systems Act, 2000 (Act No. 32 of 2002): provides for the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities, and ensure universal access to essential services that are affordable to all. • The Mining Qualifications Authority: the Mining Qualifications Authority (MQA) is a statutory body, which must promote the objectives of the National Qualifications Authority (NQA) and the DME on matters relating to the education, training, standards, and qualifications in the minerals industry. The aim of the MQA is to develop “sufficient and appropriate knowledge and skills in the mining industry”.

3.2 National policies, strategies and plans

This section provides a summary of the relevant policies, strategies and plans that have a bearing on Booysendal Mine:

3.2.1 National Development Plan

The National Development Plan 2030 (NDP) constitutes a long-term development framework and plan for South Africa, and was released in August 2012. The NDP has as its overarching objectives the elimination of poverty and the reduction of inequality by 2030.

The key priority areas of the NDP include: • An economy that creates more jobs; • Improving infrastructure; • Transition to low carbon economy; • An inclusive and integrated rural economy; • Reversing the spatial effects of apartheid; • Improving the quality of education, training and innovation; • Quality health for all; • Social protection; • Building safer communities; and • Reforming the public sector.

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All major development policies and strategies of district and local municipalities find expression in the NDP and this therefore makes the NDP a critical reference document for any meaningful intervention in the socio-economic arena.

The role of the mining and minerals related sectors are specially highlighted in the NDP. This is in relation to their contribution to the economy and the creation of jobs.

3.2.2 Provincial Growth and Development Strategy (PGDS)

Mpumalanga Province has no known recent and comprehensive growth and development strategy. It does, however, have a growth and development perspective; the Mpumalanga Economic Growth and Development Plan (MEGDP).

The primary objective of the MEGDP is to foster economic growth that creates jobs, reduce poverty and inequality in the Province. The growth path is anchored on a number of parameters including sector development, inclusive & shared growth, spatial distribution, regional integration, sustainable human development, and environmental sustainability with clearly defined strategic targets over the medium to long term. Key opportunities include high impacts projects like: • Tourism; • Investment in road infrastructure; • Housing; • Agriculture and forestry; • Investing in social capital and public service; and • Mining.

The Province recognises the important role that mining plays in the economy and the need to protect and promote sustainable mining. To this end a Mpumalanga mining lekgotla under the theme “Towards Mining for Sustainable Development” was held in 2012. The Lekgotla made a range of commitments in the mining sector. Chief amongst these commitments is the recognition that unemployment, poverty and inequality pose a key challenge to economic development in the Province. It was also established that the mining sector is facing various challenges that have the potential to threaten the stability of the local economy and communities. This fact therefore called for united and collaborative effort by the social partners to transform and protect the mining industry to enable it to foster meaningful contribution to economic development. Key commitments made at the mining lekgotla included: • Establishment of High Tech Centre of Excellence; • Infrastructure development and rejuvenation of mining towns through inter-alia aligning of Social plans and IDPs; • Engaging other strategic sectors such as metals, steel and petro-chemical industry; • Promote SMME and cooperatives by optimising procurement spend of mining houses; and • Commitment to protect the environment and rehabilitation.

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3.2.3 Integrated Development Plans of the Local Municipalities

The Integrated Development Plan (IDP) of a municipality is a comprehensive single strategic and operational plan which a municipality is required to develop at the start of its term and to be reviewed annually in the manner prescribed in the relevant legislation. The content of an IDP is wide ranging and includes, inter-alia, the municipality situation analysis, key development challenges, prioritisation of development needs and spatial development perspective.

Mining companies in developing their Social and Labour Plans (SLPs) are required to ensure their community development programmes align with municipal IDPs.

Section 3.3 of the Booysendal Socio-Economic Baseline Report (2017) provides a summary of the Sekhukhune District Municipality Integrated Development Plan (2016/17 – 2020/21) and the Ehlanzeni District Municipality Integrated Development Plan (2016/17).

3.2.4 Spatial Development Framework (SDF)

In terms of section 26 (e) of local government legislation (The Municipal Systems Act 32 of 2000) the IDP must reflect the SDF as a core component, which must include the provision of basic guidelines for a land use management system for the municipality. The SDF is one of the most important amongst other plans. It serves as a guideline for the following: land-use management systems, infrastructure investment directive, address socio-economic inequalities, effective and efficient land use and land use integration.

The SDF becomes a road map for all infrastructural development, which means that the SDF must inform all infrastructure projects. The IDP is the short to medium term implementation tool for the SDF objectives; the relationship is that the SDF portrays all spatial opportunities and areas earmarked for various developments (including current existing land-uses) wherein stakeholder’s participation should occur to give direction to development proposals. TCLM land-use is managed by three Town Planning Schemes namely: • Masishing Town Planning Scheme, 1995; • Sabie Town Planning Scheme, 1984; and • Graskop Town Planning Scheme, 1992.

Section 3.3 of the Booysendal Socio-Economic Baseline Report (2017) provides a summary of the SDFs for the Ehlanzeni and Sekhukhune Districts.

3.2.5 Local Economic Development Strategies of the Local Municipalities

Local Economic Development (LED) is central to the IDP of a municipality. The aim of the LED process is to create employment, alleviate poverty, redistribute resources and most importantly keep money generating in the Local Municipality.

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In the endeavour to stimulate local economic development, municipalities often mobilise mining houses to participate in Public Private Partnerships (PPP). Moreover mines are also expected to take into consideration the LED strategies of the local municipalities when developing programmes for their SLPs.

These strategies were considered in Section 3.3 of the Booysendal Socio-Economic Baseline Report (2017).

3.3 International Standards, Guidelines and Requirements

During the assessment IFC Performance Standards (PS) were taken into consideration. These standards articulate the Corporation’s strategic commitment to sustainable development, and are an integral part of the IFC’s approach to risk management.

The IFC guidelines aim to identify project risks and impacts, and are designed to help avoid, mitigate, and manage risks. While all eight Performance Standards are important to hold and maintain throughout the Life of Mine (LoM), key PS relevant to the Booysendal South Expansion Project are: • Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts establishes the importance of:

I. Integrated assessment to identify the environmental and social impacts, risks, and opportunities of projects;

II. Effective community engagement through disclosure of project-related information and consultation with local communities on matters that directly affect them; and

III. The client’s management of environmental and social performance throughout the life of the project.

• Performance Standard 4: Community Health Safety and Security;

I. The client will evaluate the risks and impacts to the health and safety of the affected communities during the project life-cycle and will establish preventive and control measures consistent with Good International Industry Practice (GIIP), such as in the World Bank Group Environmental, Health and Safety Guidelines (EHS Guidelines), or other internationally recognised sources. The client will identify risks and impacts and propose mitigation measures that are commensurate with their nature and magnitude. These measures will favour the avoidance of risks and the minimisation of impacts.

II. Avoid or minimise the potential for community exposure to water-borne, water-based, water-related, and vector-borne diseases, and communicable diseases that could result from project activities, taking into consideration differentiated exposure to and higher sensitivity of vulnerable groups. Where specific diseases are endemic in communities in the project area of influence, the client is encouraged to explore opportunities during the project life cycle to improve community health and wellness.

III. The client will avoid or minimise transmission of communicable diseases that may be associated with the influx of temporary or permanent project labor.

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• Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources aims to maintain the benefits derived from ecosystem services. • Performance Standard 7: On Indigenous People applies to communities or groups of Indigenous Peoples who maintain a collective attachment, i.e., whose identity as a group or community is linked, to distinct habitats or ancestral territories and the natural resources therein. It may also apply to communities or groups that have lost collective attachment to distinct habitats or ancestral territories in a Project Area, occurring within the concerned group members’ lifetime, because of forced severance, conflict, government resettlement programmes, dispossession of their lands, natural disasters, or incorporation of such territories into an urban area. • Performance Standard 8: This PS on Cultural Heritage aims to protect cultural heritage from adverse impacts and support its preservation.

4. Impact Assessment

4.1.1 Impact Assessment Process

AMEC Foster Wheeler (including Wood PLC.) appointed MWA and SES Consulting (the consultants) to undertake a study on the impact of the proposed Booysendal South Expansion Project on the affected environment, and to submit a social impact assessment report that will reflect the outcome of the study.

In conducting the study, the following activities were completed: • Stakeholder Identification and Analysis: Identification of all Interested and Affected Parties (IAP) that will be directly and indirectly affected by the proposed project; • Literature Review: A desk study of available literature and existing information relevant to the study; • Socio-economic Baseline Studies: A description of the socio-economic environment of the Project Area. This study also covered the identification and assessment of prevalent perceptions and attitudes towards mining in general and the proposed expansion project in particular; • Social Impact Identification: Identification of the potential social and economic impacts of the proposed development (including impacts associated with the construction, operation, decommissioning and post closure phases of the project), focusing specifically on communities located in close proximity to the Phase 1 and Phase 2 mining activities; and • Mitigation Plan: Recommended mitigation measures to minimise/avoid the probable impacts associated with Phase 1 and Phase 2 of the proposed mine expansion project.

4.1.2 Methodology

In the identification, rating and mitigation of impacts, the following impacts will be considered: • Direct impacts – Caused by the action and occur at the same time and place; • Indirect impacts – Caused by the action and are later in time or farther removed in distance, but are still reasonably foreseeable;

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• Cumulative impacts – The impact on the environment, which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency or person undertakes such other actions.

SIA investigations includes the following activities • Activity – Description of the activity that could potentially cause the impact; • Risk/Impact – Description of the impact that the activity could have; • Project phase – Impacts to be categorised according to project phases (construction; operation and decommissioning); • Nature of risk or impact – Identification on whether the impact will be negative or positive; and • Significance rating – Rating of impacts to be based on the following rating definitions.

4.1.2.1 Impact Significance Rating Definitions Likelihood, duration, extent, magnitude, sensitivity and significant ratings should be based on the following scoring scheme:

Likelihood:

1 = Unlikely 2 = Possible 3 = Likely 4 = Definite Likelihood

Low to no probability of Possible that impact may Distinct / realistic Impacts will occur even occurrence with the occur from time to time possibility that impacts with the implementation implementation of will occur if not of management management managed and measures measures monitored

Duration:

1 = Temporary 2 = Short Term 3 = Long Term 4 = Permanent

Possible to within a Impacts reversible within Impacts will only cease Long term, beyond short period of time a short period of time +3 after the operational life mine closure or mitigate / immediate to 5 yrs +/- 50 yrs irreplaceable or fairly quick progress with management implementation <3 yr

Extent:

1 = Localised 2 = Site 3 = Area of Influence 4 = Regional/ Provincial/ National

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Localised to specific Confined to the site The extent of the Importance of the area of activities impacts will affect the impact is of regional wider area of Influence provincial or national importance

Magnitude (negative):

-1 = Low -2 = Minor -3 = Moderate -4 = High

Deterioration of Moderate deterioration, Reversible although Mainly irreversible baseline conditions or partial loss of habitat / substantial illness, Causes a significant functions are biodiversity/ social injury, loss of habitat, change in the negligible functions or resources, loss of resources environment affecting Nuisance Emissions at times Notable deterioration of the viability, value and Will not cause any exceed legal limits functions function of the material change to the Emissions reach outside Impact on biodiversity receptors value or function of project footprint Causes a change in the Substantial impact and the receptor/s of value or function of loss of biodiversity Emissions will comply receptor but does not Death/ loss of receptors with legal limits fundamentally Loss of livelihood Emissions contained affect its overall viability Emissions do not within footprint within Emissions regularly comply with regulations limits exceed legal limits Impact on listed Emissions will affect the species wider region Livelihood of sensitive receptors are impacted

Magnitude (positive):

+1 = Low +2 = Minor +3 = Moderate +4 = High

Slight enhancement of Minor enhancement, of Substantial Significant positive baseline conditions or habitat / biodiversity/ improvement in human change in the functions social functions or health habitat, and environment viability, Potential pollution resources, ecosystem services value and function sources are removed Better control of Notable improvement of Substantial impact and Slight positive change emissions functions improvement of to the value or Project assist in Moderate improvement biodiversity function of the management and control of biodiversity Better protection of receptor/s of emissions Causes a change in the receptors Project controls value or function of Development of assists in Emissions receptor and improves livelihood will comply with legal overall viability Emissions improve to

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limits Emissions regularly comply with regulations Emissions contained improves Protection of listed within footprint within Livelihood of sensitive species limits receptors are improved

Sensitivity:

1 = Low 2 = Moderate Low 3 = Moderate 4 = High

Areas already Partially degraded area Regionally designated Nationally or subjected to Sensitive receptors sites / habitats internationally significant degradation present Regionally rare or designated Non-designated or Small number of endangered species sites/habitats locally designated vulnerable communities Moderately sensitive Species protected sites/habitats present receptor with regard to under national or Non-sensitive receptor the impact type international laws / with regards to the Some vulnerable conventions impact type (e.g. noise communities present High sensitivity with receptors) regard to the impact No vulnerable type communities High number of vulnerable communities present High dependency

Significance

The significance of the impact is calculated as follows:

• Significance = (Likelihood + duration + extent + sensitivity) x magnitude

Likelihood + duration + extent + sensitivity

Low Minor Moderate High (+ / -) ≤4 (+/ -) 5 – 8 (+ / -) 9 – 12 (+ / -) 13 – 16 Low Not significant Not significant Minor Moderate (1) Minor Not significant Minor Minor Moderate (2)

Magnitude Moderate Minor Moderate Moderate High (3)

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High Moderate High High High (4)

The matrix makes provision for the identification of potential interactions for all phases of the project (either positive or negative).

4.2 Impact Assessment Limitations

4.2.1 Limitations

The following limitations must be borne in mind when interpreting the results of the impact assessment: • In a relatively short period of time it is impossible to gain an in-depth understanding of the local social and political dynamics of the area. The insights on land claimants, and the tensions between the land occupants remains superficial, and on-going community liaison is necessary to understand these complex power struggles and varying narratives; • During the socio-economic baseline study only one private blueberry farmer was identified in Shaga. According to community members in Shaga, the farmer recently acquired the farm, which is not under a land claim, and employs seasonal labourers to work on the blueberry farm. No additional baseline data was gathered on private farmers in the area and as a result this impact assessment focuses on impacts on neighbouring communities and excludes specific impacts on private farmers; • Although clear directives were given to community leaders on the purpose of the social study, there were instances where focus group meetings were overwhelmingly attended by youth hoping to secure employment opportunities with the mine; • Mistrust of the CPA leaders prevented open and transparent discussions with focus group participants on governance related issues. For example, in Phelta focus group meetings were attended by CPA Executive members and their participation in these meetings prevented land occupants from voicing their opinions on the CPA leadership structure and the effectiveness of this structure in representing their interests; and • Employment figures for the Booysendal South Expansion Project were unconfirmed at the time of the impact assessment. The figures detailed in this report include labour figures detailed in the Section 24G Report (2018).

4.3 Mitigation and Management

The Social Management Plan incorporates and enhances the current monitoring programmes described in Section 2.3 above.

4.4 ESIA Specialist Integration

At an impact assessment integration workshop held on 4th April 2017 specialists shared findings and discussed mitigation and monitoring procedures.

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Social Impact Assessment

5. Potential Impacts

The purpose of this section is to identify potential impacts which may be associated with the Booysendal South Expansion Project. These impacts are divided into project development Phases, and include impacts identified at Booysendal Central (BS1/2), the Merensky Adits (BCM1 and BCM2), and the Everest mine (BS4).

5.1 Construction Phase

This section deals with the social impacts that will originate during the construction phase of the Booysendal South Expansion Project, most of the identified impacts will continue beyond this phase. Predicted construction phase impacts during Phase 1 and Phase 2 of the mine expansion project include: • Three positive economic impacts were identified – Job creation; skills transfer and development; multiplier effects on the local economy. • Two negative economic impact was identified – Loss of access to livelihood activities; tensions over procurement contracts. • Five negative social impacts were identified – Increased pressure on local infrastructure and services as a result of influx; social unrest due to conflicts between work seekers and land occupants; increased tension between land claimants and land occupants; increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse); and • Three negative health and safety impacts – Visual, noise and air quality impacts; increase in communicable diseases; increased traffic and road accidents.

5.2 Operational Phase

This section deals with the social impacts that will be most pronounced or triggered during the operational phase of Phase 2 of the Booysendal South Expansion Project. These are: • Six positive economic impacts – Job creation; skills development and transfer; regional economic development; Contribution to the fiscals; establishment and development of SMME’s; social infrastructure development through CSR and LED programmes (i.e. SLP commitments); • Two negative economic impacts – Loss of access to livelihood activities; tensions over procurement contracts. • Two positive social impacts – Improved access to social services and infrastructure; improved lifestyles (emergence of a social class of homeowners and motor vehicle drivers); • Eight negative social impacts – Increase in informal settlements as a result of influx; increased pressure on local infrastructure and services as a result of influx; social unrest due to conflicts between work seekers; increased tension between land claimants and land occupants; increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse); erosion of local cultural values and morals; loss of access to medicinal plants; Increased crime;

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• Three Negative Health and Safety Impacts – Increase in communicable diseases; visual/acoustic and air quality impacts; increased traffic and road accidents.

5.3 Decommissioning and Closure

The eventual termination of a mine’s operating life is common to most extractive operations, and socio- economic consequences are inevitable. It should be noted that predictions concerning the characteristics of the receiving socio-economic environment at the time of decommissioning are subject to a large margin of error, thus significantly reducing the accuracy of impact assessment.

Several socio-economic impacts could arise when the mining operation is decommissioned and should therefore form part of the planning process for decommissioning of the mine. Socio-economic issues that could be focused on include: • Donation of mine infrastructure to local municipalities; • Increase in job losses and unemployment; • Loss of income for contractors; • Loss of funding and support for local infrastructure development and social services; • Loss of revenue for local municipalities; • Increase in alcohol and substance abuse; • Social dislocation due to out-migration; • Decline in lifestyles; and • Decreased traffic and road accidents.

5.4 Cumulative impacts

The cumulative impacts for Phase 2 of the Booysendal South Expansion Project include: • Increased job opportunities, skills development and transfer, as well as regional economic development; • An increase in traffic, road deterioration and road accidents; • Other cumulative impacts might include increased demand for housing in economic hubs neighbouring the proposed mine towns. This might impact could result in increased housing prices and rentals; and • Loss of access to arable land, ecosystem services and cultural heritage sites.

The mitigation of cumulative impacts is not always possible up front and may require monitoring and intervention from a variety of role players, with co-ordinating government and traditional authorities playing a major role.

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Social Impact Assessment

5.5 Summary of Impacts

Table 6-1 lists anticipated impacts, the ratings and significance thereof will be determined during the impact assessment stage. Table 5-1: Summary of identified social impacts Issue Type of Impact Impact Construction Phase Economic Positive • Job creation and increased employment • Skills development and training • Multiplier effects on the local economy Negative • Loss of access to livelihood activities • Tensions over limited employment opportunities and procurement contracts Social Negative • Increase in informal settlements as a result of influx • Increased pressure on social infrastructure and services as a result of influx • Increased livestock theft • Social unrest due to conflicts between work seekers and land occupants • Increased tension between land claimants and land occupants • Increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse) Health and Negative • Visual, noise and air quality impacts Safety • Increase in communicable diseases • Increase in traffic and road accidents Operational Phase Economic Positive • Job creation and increased employment • Skills development and training • Regional economic development • Contribution to the fiscals • Establishment and development of SMME’s • Contribution to social infrastructure development through CSR and LED projects (i.e. SLP commitments) Negative • Loss of access to livelihood activities • Tensions over limited employment opportunities and procurement contracts Social, Cultural Positive • Improved access to social services and infrastructure and Heritage • Improved lifestyles Negative • Increase in informal settlements as a result of influx • Increased pressure on local infrastructure and services as a result of influx • Social unrest due to conflicts between work seekers • Increased livestock theft • Increased tension between land claimants and land

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Social Impact Assessment

occupants • Increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse) • Erosion of local cultural values and morals • Loss of access to medicinal plants • Increased crime • Loss of access to cultural heritage sites Health and • Visual, noise and air quality impacts Safety • Increase in communicable diseases • Increase in traffic and road accidents Decommissioning Economic Positive • Donation of mine infrastructure to local municipalities Negative • Increase in job losses and unemployment • Loss of income for contractors • Loss of funding and support for social infrastructure development and social services • Loss of revenue for local municipalities Social Negative • Increase in alcohol and substance abuse • Social dislocation due to out-migration • Decline in lifestyles Health and Positive • Decrease in traffic and road accidents Safety Cumulative Impacts Negative • An increase in traffic, road deterioration and road accidents • Loss of access to arable land, ecosystem services and cultural heritage sites Positive • Increased job opportunities, skills development and transfer, as well as regional economic development • Increased demand for housing in economic hubs neighbouring the proposed mine towns

5.6 Impact ratings

5.6.1 Economic impacts

5.6.1.1 Job creation and increased employment

It is expected that the mine expansion project will generate 2,746 direct and contract employment opportunities, and 4,119 indirect employment opportunities. With the high dependency ratio in the area, it is assumed that job creation will benefit some 365,882 people.

Currently 60% of the workforce employed at Booysendal comes from local communities. This means that a significant amount of the current annual wages of R505,372,151 filters through to the local economy.

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Social Impact Assessment

Where possible, Booysendal will prioritise local employment and procurement from Historically Disadvantaged South Africans (HDSA), and local procurement from HDSA currently stands at 87.18%.

Employment provides many socio-economic benefits to employees and their dependents, including: • Improved material wealth and standard of living; • Enhanced potential to invest in and improve access to social services such as education, health services, etc. (which may be provided directly by the company to employees and/or employees may now have the funds to pay for these services); and • Employment and training of unskilled workers facilitates skills development and improves future employment prospects.

These socio-economic benefits have the following economic multiplier effects: • Increased demand for local goods and services; • Increased money circulating in the local economy as a result of increased demand for local goods and services; and • Additional jobs created due to the increased demand for local goods and services.

Management/Enhancement Measures

The following mitigation measures can further enhance the benefits of local employment generation: • Develop and draw on local skills registers and employee databases to employ local workers if qualified applicants with the appropriate skills are available. • Formalise local employment procedures in Human Resources policies (HR Management Plan) and contractors’ agreements. • Work with community representatives to develop open and transparent recruitment procedures that are disclosed to community members. • Use various mechanisms to advertise employment opportunities before construction of the project is initiated. • Provide or facilitate training of local people in mining and general business skills before and during mining activities, such as through internships, scholarships, and/or vocational and skills training programmes.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Direct and indirect employment generated during the

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Social Impact Assessment

construction, operations and closure phases of the proposed mine expansion project.

Risk/ Impact Job creation and increased employment opportunities

Project Phase CO, OP, CL (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Positive

Type of Impact Direct and indirect

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 3 4 probability

Duration Long-term 3 3

Even though the benefits derived from employment experience, skills development and training are permanent, it is likely that the economic benefits of employment will be mostly experienced during the Life of Mine, and seize during decommissioning and closure.

Extent Area of Influence 3 3

Employment opportunities will affect the wider area of influence

Receptor Sensitivity Moderate 3 3

Magnitude Moderate 3 4

Impact Significance Given the high levels of Moderate High unemployment in the 12 13 communities neighbouring the proposed mine site, the benefits 3 4 of employment will be significant not only for those employed but also the wider area of influence

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including economic hubs and local vendors.

Mitigating and Monitoring Requirements • Prioritise employing local workers if qualified applicants with Required the appropriate skills are available. Management • Formalise local employment procedures in Human Measures Resources policies (HR Management Plan) and contractors’ agreements. • Work with community representatives to develop open and transparent recruitment procedures that are disclosed to community members. • Use various mechanisms to advertise employment opportunities before construction of the project is initiated. • Provide or facilitate training of local people in mining and general business skills before and during mining activities, such as through internships, scholarships, and/or vocational and skills training programmes.

Required Monitoring Monitor the numbers of local employees

(if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impact can be enhanced through HR policies and Social Labour Plan skills development and training programmes.

5.6.1.2 Improved skills development and training

Although a majority of the population has received primary education, many people in the Project Area are illiterate and lack employable skills. It is envisaged that local employment opportunities will be limited to predominantly semi-skilled and unskilled persons.

Given that the mine expansion project will generate 2,746 direct job opportunities (Phase 1 and 2) and that 60% of the mines current labour force comes from local communities, it is highly likely that Phase 2 will improve skills development and training.

Skills development and capacity building initiatives will improve opportunities for future employment and enterprise development in local communities.

Management/Enhancement Measures

In order to employ locals, Booysendal Mine will need to develop and implement skills development and training programmes that target both employees and the broader populations. Skills development and

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capacity building is fundamental to local employment generation, sustainable development and poverty alleviation in the area, particularly amongst the youth.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Provide skills development and training

Risk/ Impact Improved skills and employability of local community members

Project Phase CO, OP, CL (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Positive

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 3 4 probability

Duration Permanent 2 4

The benefits derived from skills development and training are permanent.

Extent Area of Influence 1 2

Skills development and training will affect the wider area of influence

Receptor Sensitivity Moderate 1 3

Magnitude Moderate 2 4

Impact Significance Skills development and training Minor High will assist with improving 7 13 employment opportunities with

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Social Impact Assessment

the mine and other businesses 2 4 in the broader Area of Influence.

Mitigating and Monitoring Requirements

Required • Develop and implement skills development and training Management programmes that target both employees and the broader populations. Measures • Provide or facilitate training of local people in mining and general business skills before and during mining activities, such as through internships, scholarships, and/or vocational and skills training programmes.

Required Monitoring Monitor the numbers of training programmes, participants and and pass rates (if any) Track employment and recruitment post training

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impact can be enhanced through HR policies and Social Labour Plan skills development and training programmes.

5.6.1.3 Regional economic development and contributions to government revenue

Regional spending in support of the mining operations is another direct positive Booysendal South Expansion Project impact. The Government will derive revenue from the Booysendal South Expansion Project through various forms of taxes and mineral royalties applicable to mining companies, including but not limited to import duties, corporate tax, contributions to social funds, and value added tax.

Currently, Booysendal contributes R86,639,513 to Government revenues, and Local economic development spent from 2014 - 2016 was R8,926,913. Booysendal indicates that the expansion of the mine will assist in continuous development spend, including investment into schools and development centres.

The Project has an estimated capital spend of R4,199,800,000 over 5 years. The projected turnover (2016 values) is R2.7 billion of which some 8-10% (about R250 million) will represent ongoing capital investment for the projected life of mine.

The revenue derived from mining can be utilised by the Government, and the GTLM in Limpopo and the TCLM in Mpumalanga in particular, for community development programmes and improved service delivery.

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Social Impact Assessment

The local Government Handbook (Source: http://www.localgovernment.co.za/locals/view/145/Thaba- Chweu-Local-Municipality#demographic) indicates that the dependency ratio for the TCLM is in the order of 43. In addition, the official unemployment is 20.5% and the youth unemployment is 27.10%. The trickle-down effect, which an additional approximately 6,000 jobs will have in the area will be significant.

The expansion project has economic benefits for SA due to increased platinum production and local socio-economic benefits because of job creation, capital expenditure on contractors, materials and equipment, and ensuring an extension of the LoM in the long term which will prevent retrenchments and early mine closure.

Management/enhancement measures Government income from mining is determined by tax regimes and world market prices for commodities, and as such revenue from mining fluctuates. In addition, the mine will not be able to influence the government on how to spend these earnings, nor will the mine be able to stipulate conditions for payment. As such, no mitigation measures are recommended for this impact.

It is however expected that most of this expenditure will benefit the towns of Masishing and Roossenekal, which have well established mine service industries.

Where feasible the mine will consult with the Government to promote social development in the communities neighbouring the mine.

At mine closure the revenue generated by the mine will seize. No revenue will be earned by the Government, which could negatively affect government spending on social services in the area if not properly planned for. Given that the mine is unable to influence government spending, no mitigation measures are recommended for this negative impact. However, the mine will consult with the relevant authorities to ensure that they are able to plan for mine closure.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity The Government will derive revenue from the expansion project through various forms of taxes and mineral royalties applicable to mining companies, including but not limited to import duties, corporate tax, contributions to social funds, and value added tax

Risk/ Impact Regional economic development and contributions to government revenue

Project Phase CO, OP

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Social Impact Assessment

(during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure Nature of Impact Positive

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Definite Likelihood 4 probability

Duration Long Term 3

Extent Regional/Provincial/National 4

Receptor Sensitivity High 4

Magnitude High 4

Impact Significance The revenue derived from High mining can be utilised by the 15 Government, and the Greater Tubatse Local Municipality in 4 Limpopo and the Thaba Tchweu Local Municipality in Mpumalanga in particular, for community development programmes and improved service delivery.

Mitigating and Monitoring Requirements

Required • Not applicable Management Measures

Required Monitoring • Not applicable

(if any)

Responsibility for None implementation

Impact Finding

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Social Impact Assessment

Impact Finding The positive benefits of the impact are high and do not require mitigation.

5.6.1.4 Establishment and development of SMME’s

Although mining equipment is likely to be sourced abroad, where possible local companies will perform services such as earthworks, road construction, transportation and catering. The extent of indirect employment and income that will be created through the outsourcing of services to local contractors is difficult to determine, but has the potential to be significant if small businesses are provided with the opportunities to provide support services like gardening, catering and cleaning.

In Mashishing there are 80 small businesses registered with the Emerging Contractors Forum in the sectors of construction, catering, engineering and maintenance. None of these registered small businesses are currently providing services to the mines in the area, and if provided with training and skills development in tender applications, these companies could potentially be appointed by the mine to provide services and thereby generate local employment opportunities for semi-skilled and unskilled persons.

Management/enhancement measures

The following mitigation measures can further enhance the benefits of support to SMMEs: • Consult with the Emerging Contractors Forum to develop a database of local SMMEs. • Formalise local SMME procurement procedures in company procurement policies and sub- contractors’ agreements. • Purchase goods and services at a local level, if available. Formalise this practice in company procurement policies and sub-contractors’ agreements. • Work with community representatives to prepare open and transparent tender processes that are disclosed to local contractors in neighbouring communities. • Use various mechanisms to advertise tenders before construction of the project is initiated. • Provide training and support to SMMEs.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Contract small local businesses to provide services to the mine

Risk/ Impact Establishment and development of SMMEs

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Social Impact Assessment

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Positive

Type of Impact Indirect

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 1 3 probability

Duration Short Term 1 2

Likely that contracts will be awarded for a period of between 6 months and 3 years.

Extent Area of Influence 3 3

The impact will affect local businesses in the wider area

Receptor Sensitivity Moderate 1 3

Magnitude Moderate 1 3

Impact Significance Due to the resources and time Not Moderate required to provide support to significant 11 SMMEs, moderate 8 improvements will be 3 1 experienced

Mitigating and Monitoring Requirements

Required • Formalise local SMME procurement procedures in Management company procurement policies and sub-contractors’ agreements. Measures • Purchase goods and services at a local level, if available. • Work with community representatives to prepare open and transparent tender processes that are disclosed to local contractors in neighbouring communities. • Provide training and support to SMMEs.

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Social Impact Assessment

Required Monitoring Monitor the number of implemented SMME training programmes

(if any) Track SMME contracts including duration, sector and indirect employment generated from the contracts

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impact can be enhanced through HR policies and Social Labour Plan skills development and training programmes.

5.6.1.5 Loss of access to livelihood activities

Economic displacement refers to the loss of productive assets (including land and crops), usage rights or livelihood capacities as a result of acquisition and transformation of land for Booysendal South Expansion Project purposes. Mining infrastructure will be constructed on land currently owned by the mine, and land use within the Project Area will not be significantly affected through the construction of the proposed linear infrastructure.

Currently local communities make use of a wealth of natural resources, or ecosystem services, that are freely and readily available in the Project Area. The primary ecosystem services include livestock grazing, subsistence farming, collecting wood for cooking, collecting water for drinking and gathering traditional herbs and medicine for household consumption and commercial use. These natural resources provide households with valuable sources of food, fuel, income and various other uses. The loss of access to, and/or availability of, these natural resources will have a detrimental impact on the livelihoods, including income and food security, of households in the Project Area.

Community members reported that since Booysendal Mine erected a perimeter fence around their concession, this has restricted community members from grazing their livestock and harvesting traditional herbs.

In order to reduce the loss of access to livelihood activities the mine should identify areas within their concession area where neighbouring communities can graze livestock and harvest traditional herbs. If due to safety concerns this is not feasible, the mine should identify alterative land that is easily accessible by neighbouring communities, and where possible provide training in alternative livelihood activities.

Management/Mitigation Measures

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Social Impact Assessment

• Conduct a detailed assessment of the current ecosystem services in the Project Area and understand the extent to which these are utilised by neighbouring communities – this is addressed in the ESIA Report; • Where possible, reduce the impact on ecosystem services through project design (minimising project footprint and disturbance on ecosystems); • Where feasible, provide community members with access to grazing land and land for harvesting traditional herbs; • Provide training in alternative livelihood activities through the Social Labour Plan; and • Establish a communal nursery where community members can sustainably harvest traditional medicines.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Perimeter fence restricting access to land for grazing livestock and harvesting traditional herbs

Risk/ Impact Loss of access to livelihood activities

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 3 2 probability

Duration Long Term 3 2

Impacts will only seize after the operational life of mine

Extent Site 2 2

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Social Impact Assessment

The impact is felt by communities neighbouring the proposed mine site

Receptor Sensitivity Moderate Low 4 2

Magnitude Minor -3 -2

Impact Significance The impact can be minor if Moderate Minor mitigation measures are 12 8 implemented. -3 -2

Mitigating and Monitoring Requirements

Required • Conduct a detailed assessment of the current ecosystem Management services in the Project Area and understand the extent to which these are utilised by neighbouring. Measures • Where possible, reduce the impact on ecosystem services through project design (minimising project footprint and disturbance on ecosystems). • Where feasible, provide community members with access to grazing land and land for harvesting traditional herbs. • Provide training in alternative livelihood activities through the Social Labour Plan. • Establish a communal nursery where community members can sustainably harvest traditional medicines.

Required Monitoring Monitor SLP programmes targeting alternative livelihoods, and programme beneficiaries. (if any)

Responsibility for Environmental Manager and HR Manager implementation

Impact Finding

Impact Finding Impact can be managed through Environmental Management plans and SLP programmes.

5.6.1.6 Tensions over limited employment opportunities and procurement contracts While it is expected that a limited portion of the local population might be able to benefit from employment opportunities and procurement contracts at the mine, a significant portion of the population will not be employed by the mine and will therefore need to continue subsistence farming in order to secure their livelihoods.

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Social Impact Assessment

It is generally expected that subsistence farming will yield a lower and more uncertain income than that associated with employment at the mine, and that community members who will benefit most from employment opportunities and procurement contracts are those with the highest levels of education and experience.

The employment of only a portion of the population at the mine is thus likely to lead to increased tension and increased economic disparity in the Project Area between those employed/contracted and those unemployed. The latter might find that they cannot maintain the same living standard, access existing or new services and facilities that are either exclusively for mine workers or are too expensive.

Mining can also contribute to the marginalisation of specific groups within a community, specifically the uneducated, illiterate, landless, elderly and women (particularly those with children).

In the Project Area increasing economic disparity of already marginalised groups within the communities can contribute to increasing tensions between community members, and in particular between land claimants and land occupants.

These tensions can result in fuelling conflict within communities as well as a number of other social changes such as:

• Diminished social cohesion between community members as some can afford more goods and/or adopt different lifestyles; • A change in social values away from community centred-values towards individual-centred values; and • A change in local power structures in line with earning power.

More developed areas might provide a range of employment options and support facilities to population groups marginalised or disadvantaged by typical mine-related employment. However, in the Project Area, the mining company operates in an under-developed environment, where they are the only significant employer and disparities introduced by the mining operations are thus amplified.

Besides generating inequalities and tensions within a community, the mine could also create inequality and tensions between communities, as those situated closest to the mine are typically targeted for employment. Communities that are more remote from the mine are typically a much lower priority for mine employment.

Management/Mitigation Measures The following mitigation measures aim to reduce the tension and inequality generated by mine employment and increase access to benefits generated by mining:

• Avoid employing community members from one community within the Project Area. Ensure employment opportunities are made available to all community members within the Project Area; • Work with community representatives to prepare open and transparent recruitment procedures that are disclosed to community members;

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Social Impact Assessment

• Provide employment options that allow a range of people to benefit from employment opportunities, where possible (e.g., non-shift or part-time work); • Use various mechanisms to advertise employment opportunities in neighbouring communities; and • Maintain recruitment and employment records, distributing short-term opportunities to as many community members as possible.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Prioritising certain communities and community members for employment at the mine will lead to increased tension and economic disparities in the Project Area.

Risk/ Impact Tensions over limited employment opportunities and procurement contracts

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Possible 3 2 probability

Duration Long Term 3 2

Impacts will only seize after the operational life of mine

Extent Site 2 2

The impact is felt by communities neighbouring the proposed mine site

Receptor Sensitivity Moderate Low 3 2

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Social Impact Assessment

Magnitude Minor -3 -2

Impact Significance If employment opportunities are Moderate Minor made available to all community 11 8 members within the Project Area then the impact will be minor. -3 -2

Mitigating and Monitoring Requirements

Required • Avoid employing community members from one community Management within the Project Area. Measures • Work with community representatives to prepare open and transparent recruitment procedures that are disclosed to community members. • Provide employment options that allow a range of people to benefit from employment opportunities, where possible (e.g., non-shift or part-time work). • Use various mechanisms to advertise employment opportunities in neighbouring communities. • Maintain recruitment and employment records, distributing short-term opportunities to as many community members as possible.

Required Monitoring Review recruitment records

(if any) Monitor the number and area of origin of local employees.

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impact can be managed through HR policies, and an open and transparent recruitment procedure

5.6.2 Social Impacts

5.6.2.1 Social infrastructure development through CSR and LED programmes (i.e. SLP commitments)

Currently the social services in the Project Area are limited and severely under resourced. In the four communities neighbouring the Booysendal South Expansion Project mine there are no clinics. Water is generally sourced from rivers and springs, and the majority of the population make use of the bush for the toilet. There are also no formal refuse removal services and communities generally bury and burn their refuse or throw it into the surrounding bush. Even though all communities have at least one primary school nearby; only one community has access to a secondary school.

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Social Impact Assessment

None of the towns/villages reported having shops and markets, and although all communities, except for Choma, have access to electricity, households rely primarily on wood for cooking. The secondary roads off the R577 are dirt roads and some are in poor condition. There is a complete lack of a public transport network and the community members generally walk or hike to get to their destinations.

Booysendal undertakes the following as part of their approved 2016 – 2020 Social and Labour Plan (SLP):

• Technical skills training which will lead to further empowerment of the employees; • The adult based education and training (ABET) programme will be expanded into the community; • Offering learnerships as part of the skills development strategy; • Portable skills training which can be applied outside of the mining industry, including amongst others basic training in: welding; electricity; plumbing; finance; leadership; and entrepreneurship; • Career progression plans to develop the skills of individuals; • Employee mentorship programs to fast track on the job training and skills development; • Skills and qualification enhancement through internships and bursary plan; and • Implementation of an employee equity programme.

The value of these training programmes in the rural communities will further contribute to employment and marketability.

Investment by Booysendal in social infrastructure will greatly assist communities with improved living standards. It will however be important that all social investment initiatives focus on community needs and are implemented in a sustainable manner. This requires the involvement of the local government

Management/Mitigation Measures

Booysendal Mine intends to develop a SLP for the Booysendal South Expansion Project that outlines service delivery and infrastructure development initiatives. This includes a review of LED and IDP programmes for improved service delivery in the Project Area. Where feasible, Booysendal Mine will prioritise partnering with local government to improve the quality and sustainability of existing social services and infrastructure development programmes.

So as not to create paternalistic dependence on the mine, SLP initiatives will be developed and implemented in consultation with local government and local communities.

Booysendal Mine can also consider, where feasible, donating project-related infrastructure to the local municipalities and neighbouring communities. This will be addressed in a Mine Closure Plan.

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Social Impact Assessment

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Booysendal Mine will prepare a SLP for the mine expansion project that outlines service delivery and infrastructure development initiatives.

Risk/ Impact Social infrastructure development through CSR and LED programmes

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Positive

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Possible 3 4 probability

Duration Long Term 3 4

Impacts will continue beyond the life of mine

Extent Regional 3 4

The impact of SLP programmes is of regional importance

Receptor Sensitivity Moderate 2 3

Magnitude High 3 4

Impact Significance Significant positive change will Moderate High result from the development 11 15 initiatives in an area currently characterised by poor 3 4 infrastructure and service delivery.

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Social Impact Assessment

Mitigating and Monitoring Requirements

Required • Review LED and IDP programmes for improved service Management delivery in the Project Area. Measures • Prepare a SLP for the mine expansion project that outlines service delivery and infrastructure development initiatives. • Where feasible, Booysendal Mine will prioritise partnering with local government to improve the quality and sustainability of existing social services and infrastructure development programmes. • SLP initiatives will be developed and implemented in consultation with local government and local communities. • Booysendal Mine can also consider, where feasible, donating project-related infrastructure to the local municipalities and neighbouring communities. This will be addressed in a Mine Closure Plan.

Required Monitoring Monitor SLP programmes and initiatives to determine sustainability, impacts on livelihoods and improved living (if any) standards of project beneficiaries.

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impacts can be enhanced by developing a SLP – in partnership with the Government and local communities – that aims to

prioritise service delivery and infrastructure development initiatives.

5.6.2.1 Increase in informal settlements as a result of influx On a project of this nature where there are high levels of unemployment and limited economic opportunities in the area, influx into the Project Area is considered a significant impact. This is made easier by a lack of land management practices, which has resulted in illegal squatting in the communities neighbouring the mine. This was most evident in the Choma and Phetla communities.

Influx will most likely peak during the construction phase when the demand for unskilled labour is at its highest. It is anticipated that job seekers who do not secure jobs will leave, however some may remain in hope of securing future project benefits.

Often influx causes the following impacts to occur: • Emergence of informal settlements; • Disruptions to established settlements and social networks; • Increased strain on limited natural resources;

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Social Impact Assessment

• Increased strain on poorly resourced social services; and • Conflict between long-term residents and in-migrants.

It is likely that influx and opportunistic settlement will be in the form of job seekers, informal vendors, and criminal opportunists.

Criminal elements may target construction workers, including local community members, which could lead to an increase in petty theft, livestock theft, house breakings, and threats to personal safety.

During mine closure in-migrants may choose to return to their former communities. This could result in social connections being lost and vendors leaving the area.

Management/Mitigation Measures

Influx is typically a difficult impact to manage and/or mitigate; therefore, it is only possible to mitigate the impacts caused by influx: • Identify and develop social management plans (i.e. Social Labour Plan and Stakeholder Engagement Plan) that can integrate aspects of an influx management strategy. A stand-alone influx management plan may not be prioritised by managers, and an influx response will be improved by inclusion in existing and accepted plans; • Define and identify who qualifies as a project affected person, and what benefits these individuals will receive – this will help avoid confusion further into the project’s development, where it may be difficult to distinguish between in-migrants and long-term residents; • Assist community leaders with developing and implementing a land management system to prevent illegal squatting; and • Adopt and disseminate clear and decisive labour and recruitment policies that promote the interests of local residents and discourage opportunity seekers settling in the area.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Influx of job seekers, informal vendors, and criminal opportunists into the Project Area in search of employment and other economic opportunities.

Risk/ Impact Increase in informal settlements as a result of influx

Project Phase CO, OP (during which impact

will be applicable) CO = construction,

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OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short Term 3 2 Impacts can be mitigated and reversed

Extent Area of Influence 3 3 The impact of influx will affect the wider area of influence

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

Impact Significance Influx and the establishment of High Moderate informal settlement is already 14 11 occurring in the communities neighbouring the proposed mine -4 -3 site.

Mitigating and Monitoring Requirements

Required • Identify social management plans (i.e. Social Labour Plan Management and Stakeholder Engagement Plan) that can integrate aspects of an influx management strategy. Measures • Define and identify who qualifies as a project affected person, and what benefits these individuals will receive. • Prevent illegal squatting by assisting community leaders with developing and implementing a land management system. • Adopt and disseminate clear and decisive labour and recruitment policies that promote the interests of local residents and discourage opportunity seekers settling in the area.

Required Monitoring Work closely with community leaders and representatives to

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monitor the number and size of informal settlements. (if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Although influx is typically a difficult impact to manage, it is possible to reduce influx and to mitigate the impacts caused

by influx by identifying social management plans (i.e. Social Labour Plan and Stakeholder Engagement Plan) that can integrate aspects of an influx management strategy.

5.6.2.2 Increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse, crime)

In the communities neighbouring Phase 2 of the Booysendal South Expansion Project livestock theft, housebreakings and petty theft were reported as the main crimes in the Project Area. Often an increase in social pathologies is a direct result of influx and increased income for some coupled by few economic opportunities for others, and according to community members, crime has increased substantially over the past few years as fewer jobs are available and more people move in to the area.

In the Project Area there are apparently very few cases of domestic violence, rape and murder, and although unemployment is high, it was reported that there is no prostitution occurring in communities neighbouring the proposed expansion project.

With Phase 2 of the Booysendal South Expansion Project potentially increasing access to cash through income generated from employment opportunities, as well as potentially increasing in-migration to the area, existing social pathologies could be further exacerbated.

Management/Mitigation Measures

To mitigate the project potentially increasing social pathologies, Booysendal Mine should the following management measures: • Adopt a clear Code of Conduct which defines the proper behaviour of employees in neighbouring communities (including contractors); and • Employees must be prohibited from abusing alcohol and drugs, and stringent measures should be put in place to address offenders.

When a mine closes, job losses often lead to increased substance abuse, domestic violence and crime. The mine closure plan would need to consider mechanisms to assist retrenched employees with developing coping mechanisms, and where feasible, finding alternative employment opportunities.

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Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Existing social pathologies increase as a result of influx, and improved economic opportunities.

Risk/ Impact Increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse, crime)

Project Phase CO, OP, CL (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2

Impacts can be mitigated and reversed within a short period

Extent Site 3 2 Impacts will be confined to site

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

Impact Significance Social pathologies are already High Moderate occurring in the communities 14 10 neighbouring the proposed mine site, and will be exacerbated if -4 -3 not managed.

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Mitigating and Monitoring Requirements

Required • Adopt a clear Code of Conduct which defines the proper Management behaviour of employees in neighbouring communities (including contractors); and Measures • Employees must be prohibited from abusing alcohol and drugs, and stringent measures should be put in place to address offenders.

Required Monitoring Work closely with community leaders and representatives to monitor increases in social pathologies. (if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Social pathologies can be mitigated through appropriate HR policies and interventions that aim to ensure proper employee

interactions with community members.

5.6.3 Health and safety impacts

5.6.3.1 Visual, noise and air quality impacts

It is envisaged that sound/noise levels will increase during construction due to activities such as haulage and the operation of earth moving equipment. Complaints about noise could occur. Limited noise pollution is expected during the operational phase. During construction of the supporting linear infrastructure it is expected that dust levels in and around the construction sites will increase. Although the dust levels for the Booysendal South Expansion Project are projected to be low; however, as is true with any construction activity where there will be the haulage of materials, earth moving activities etc. dust levels will increase The increase in dust can have adverse impacts on the health of the communities, and adversely impact road safety conditions along the gravel surfaced roads where visibility may be reduced. Dust can also pose a nuisance factor by entering homes, settling on houses, clean washing, painted surfaces and roofs etc. No visual impacts are expected from the proposed developments. Management/Mitigation Measures

Booysendal Mine should manage all dust emissions through the mitigation measures detailed in the Air Quality Management Plan. This should include dust suppression techniques and continuous monitoring of dust levels at specified monitoring points. Furthermore, a grievance management mechanism should be in place to receive dust related complaints.

To mitigate noise levels, Booysendal Mine should the following management measures:

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• Keep noise levels to recommended industrial standards; • Maintain and address a complaints register; and • Restrict noisy activities to standard working hours. Noise, dust and visual impacts will be minimised with mine closure, and addressed in the Mine Closure Plan.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation Activity During construction activities such as haulage and the operation of earth moving equipment will increase sound/noise and dust levels. Limited noise pollution is expected during the operational phase. No visual impacts are expected from the proposed developments.

Risk/ Impact Visual, noise and air quality impacts

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2 Impacts can be mitigated and reduced

Extent Site 3 2

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Impacts will be confined to site

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

Likelihood/ Possible 3 2 probability

Duration Long Term 3 2

Impacts will only seize after the operational life of mine

Extent Site 2 2

The impact is felt by communities neighbouring the proposed mine site

Receptor Sensitivity Moderate Low 3 2

Magnitude Minor -3 -2

Impact Significance Noise and dust impacts will be Moderate Minor moderate, if not managed. 11 8

-3 -2

Mitigating and Monitoring Requirements

Required • Dust emissions will be managed by an Air Quality Management Management Plan. The Plan details dust suppression techniques and continuous monitoring of dust levels at Measures specified monitoring points. • Noise levels will be kept to recommended industrial standards. • A grievance management mechanism will be in place to receive and address dust and noise related complaints. • Restrict noisy activities to standard working hours. • Noise, dust and visual impacts will be minimised with mine closure, and addressed in the Mine Closure Plan.

Required Monitoring • Management and monitoring measures will be detailed in an Air Quality Management Plan. (if any) • Other impacts will be managed by the Environmental Management Plan.

Responsibility for Environmental Manager and HR Manager

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implementation

Impact Finding

Impact Finding Noise and dust impacts will be moderate, if appropriately monitored and managed through an Environmental

Management Plan.

5.6.3.2 Increase in communicable diseases

The proposed project has the potential to contribute to the spread of communicable diseases, and although HIV/AIDS and Sexually Transmitted Diseases (STDs) were not common ailments reported in the Project Area, Tuberculosis (TB) was identified as a public healthcare challenge in the immediate Project Area.

Communicable diseases, and STDs in particular, if present and untreated, can greatly increase the risk of HIV transmission. In the communities neighbouring the mine, existing healthcare services do not have the resources to address the impact of increasing cases of communicable diseases.

Management/Mitigation Measures

The following management measures will be adopted in order to mitigate the potential exposure of local communities to communicable disease: • Work with the government and local implementing partners to support an integrated HIV and TB prevention and management programme that considers the workplace, local communities and high risk populations such as women and truckers; • Develop and implement an HIV/AIDS awareness programme that includes adequate access to HIV/AIDS-related information and condoms for all employees. Contractors are expected to develop similar procedures; • Support intensive information, education and communication (IEC) campaigns on communicable diseases in the workplace and in neighbouring communities; and • Support capacity building for the local government, healthcare and community partners who would provide HIV and TB prevention, diagnosis and treatment services.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity The proposed project has the potential to contribute to the spread of communicable diseases, and although HIV/AIDS and Sexually Transmitted Diseases (STDs) were not

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common ailments reported in the Project Area, Tuberculosis (TB) was identified as a public healthcare challenge in the immediate Project Area.

Risk/ Impact Increase in communicable diseases

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 2 probability

Duration Short term 3 2

Impacts can be mitigated and reduced

Extent Site 3 2

Impacts will be confined to site

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

Impact Significance Communicable diseases will High Moderate increase, if not managed. 14 9

-4 -3

Mitigating and Monitoring Requirements

Required • Work with the government and local implementing partners Management to support an integrated HIV and TB prevention and management programme that considers the workplace, Measures local communities and high risk populations such as women and truckers. • Develop and implement an HIV/AIDS awareness programme that includes adequate access to HIV/AIDS-

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related information and condoms for all employees. Contractors are expected to develop similar procedures. • Support intensive information, education and communication (IEC) campaigns on communicable diseases in the workplace and neighbouring communities. • Support capacity building for the local government, NGO and community partners who would provide HIV and TB prevention, diagnosis and treatment services.

Required Monitoring • Work with local government, healthcare providers and community partners to monitor HIV and TB infection rates, (if any) diagnosis and treatment services.

Responsibility for HR Manager implementation

Impact Finding

Impact Finding The impact can be managed through HR policies that aim to ensure proper employee interactions with community

members.

5.6.3.3 Increased traffic and road accidents

Although Booysendal Mine intends to construct an access road between BN and BS, which third parties will not use, the mine will use the R577 to transport fuel and supplies.

It is expected that the Booysendal Mine will generate approximately 850 daily trips on the Access Road and R577 (Refer to the Traffic Impact Assessment; 2017), and that during the construction phase the peak hour traffic demand is expected to be 210 vehicles per peak hour, while during the operational phase the peak hour traffic demand is expected to be: • Am peak: 153v/h (130 in; 23 out); and  • Pm peak: 112v/h (22 in; 90 out).

During the construction phase there will be more vehicle movements on the R577 due to the delivery of equipment, construction materials, and the transportation of workers. These impacts will reduce during operational phase of the mine.

An increase in traffic volumes as a result of Phase 1 and 2 of the Booysendal South Expansion Project could potentially lead to increased road traffic and safety incidents if not appropriately mitigated and managed.

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Management/Mitigation Measures

• Mine traffic should be managed through a Transport Management Plan. This management plan might include provisions for speed bumps, road safety signs, as well as, facilitating road safety training and education programmes.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity During the construction phase there will be significantly more vehicle movements on the R577 due to the delivery of equipment, construction materials, and the transportation of workers.

Risk/ Impact Increase traffic and road accidents

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2

Impacts can be mitigated and reversed within a short period

Extent Site 3 2

Impacts will be confined to site

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

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Impact Significance Increased traffic and road High Moderate accidents are likely to occur, if 14 10 not mitigated and managed. -4 -3

Mitigating and Monitoring Requirements

Required • Mine traffic should be managed through a Transport Management Management Plan, which made provision for speed bumps on the Village Access Road Intersection. Measures • In addition to speed bumps, road safety signs, as well as, road safety awareness programmes will assist with mitigating road accidents due to increased flow of traffic.

Required Monitoring Management and monitoring measures will be detailed in a Transport Management Plan. (if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding The impact can be managed through a Transport Management Plan.

5.6.4 Cultural heritage impacts

5.6.4.1 Loss of access to cultural assets and heritage sites Communities in the Project Area identified cemeteries and initiation sites as key cultural assets. In Phetla and Stageng it was reported that the perimeter fence erected by Booysendal Mine is restricting access to cemeteries located in the mountains.

In Shaga, Choma and Phetla initiation sites are located in Mashishing, although it was stated in Phetla that Booysendal Mine has restricted access to an initiation site located close to TKO Dam.

The loss of access to cultural assets and heritage sites is a significant impact, which should be mitigated through an Archaeological and Heritage Management Plan.

Management/Mitigation Measures

In order to prevent restricting access to cultural assets and heritage sites, Booysendal will develop an Archaeological and Heritage Management Plan that aims to ensure communities in the Project Area are able to access cultural assets and heritage sites. Where access is restricted due to safety concerns the management plan will present mitigation measures.

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Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Cemeteries and initiation sites were identified as key cultural assets by communities. During the baseline study it was reported that the perimeter fence erected by Booysendal Mine is restricting assess to cemeteries and an initiation site located close to TKO Dam.

Risk/ Impact Loss of access to cultural assets and heritage sites

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2

Impacts can be mitigated and reversed within a short period

Extent Localised 3 1

Impacts can be localised to specific sites

Receptor Sensitivity Minor 4 2

Magnitude Minor 4 2

Impact Significance Restricted access to cultural High Minor heritage sites is already 14 8 occurring in the communities neighbouring the proposed mine -4 -2

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site, and this impact can be

reversed if appropriately managed.

Mitigating and Monitoring Requirements

Required • Booysendal will develop an Archaeological and Heritage Management Management Plan that aims to ensure communities in the Project Area are able to access cultural assets and heritage Measures sites. Where access is restricted due to safety concerns the management plan will present mitigation measures.

Required Monitoring Detailed in the Archaeological and Heritage Management Plan

(if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding The loss of access to cultural assets and heritage sites is a significant impact, which can be mitigated through an

Archaeological and Heritage Management Plan.

5.6.4.2 Loss of access to medicinal plants Very few community members reported consulting with traditional healers. Majority reported self- medicating with traditional herbs collected in the nearby forests. It was however reported that that since Booysendal Mine erected a perimeter fence around their concession, this fence has restricted community members from harvesting the traditional herbs, and lawang in particular.

Given the reliance of communities neighbouring the Booysendal South Expansion Project site on traditional herbs, the loss of access to medicinal plants will have a detrimental impact on the health and welfare of households.

Management/Mitigation Measures

The same mitigation and management actions apply as provided in Section 5.6.1.5

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Communities neighbouring the mine reported collecting traditional herbs in the nearby forests, and that access to these plants was restricted by Booysendal Mine erecting a perimeter fence.

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Risk/ Impact Loss of access to medicinal plants

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2 Impacts can be mitigated and reversed within a short period

Extent Localised 3 1

Impacts can be localised to specific sites

Receptor Sensitivity Minor 4 2

Magnitude Minor 4 2

Impact Significance Restricted access to medicinal High Minor plants is already occurring in the 14 8 communities neighbouring the proposed mine site, and this -4 -2 impact can be reversed if appropriately managed.

Mitigating and Monitoring Requirements

Required • Where possible, reduce the impact on ecosystem services Management through project design (minimising project footprint and disturbance on ecosystems). Measures • Where feasible investigate areas where Booysendal Mine can provide community members with access to harvesting traditional herbs.

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• Provide training in alternative livelihood activities through the SLP. • Establish a communal nursery where community members can sustainably harvest medicinal plants.

Required Monitoring Detailed in the Environmental Management Plan (if any)

Responsibility for Environmental Manager and HR Manager implementation

Impact Finding

Impact Finding The loss of access to medicinal plants is a significant impact, which can be mitigated through an Environmental Management

Plan.

5.6.5 Cumulative impacts

5.6.5.1 Increased job opportunities, skills development and transfer, as well as regional economic development

Cumulative economic benefits accruing from Phase 2 of the Booysendal South Expansion Project will have the following cumulative impacts: • Mining will increase existing employment and job creation opportunities in the Project Area; • Vendor procurement processes will identify, develop and utilise/employ local vendors, which might already be working for other mines in the area; • Increased money circulating in local economies will increase demand for local goods, providing opportunities for vendors and businesses operating in communities neighbouring the mine and along the R577; and • Social Labour Plan expenditure by Booysendal Mine in the communities in which it operates will increase/improve community development projects implemented by the Government and other neighbouring businesses in the area. This includes upgrades to public infrastructure, and skills development and training programmes. In addition to the local economy, Booysendal also contributes R86,639,513 to Government revenues in the form of taxes. This will increase significantly through the Booysendal South Expansion Project Local Economic development spent by the mine since 2014 was R8,926,913. Booysendal indicates that the expansion of the mine will assist in continuous development spend, including investment into schools and development centres.

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Management/Mitigation Measures

Where feasible, Booysendal Mine should seek to partner with the Government and local businesses to develop SLP programmes that ensure economic benefits are maximised. SLP programmes should aim to: • Prioritise employing local workers if qualified applicants with the appropriate skills are available. • Formalise local employment procedures in Human Resources policies (HR Management Plan) and contractors’ agreements. • Work with community representatives to develop open and transparent recruitment procedures that are disclosed to community members.

Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Cumulative economic benefits accruing from the proposed mine include; increasing existing employment and job creation opportunities in the Project Area, and increasing money circulating in local economies.

Risk/ Impact Economic growth and the development of informal economies in communities neighbouring the mine site and along the R557

Project Phase CO, OP, CL (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Positive

Type of Impact Direct and indirect

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 3 4 probability

Duration Long-term 3 3

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Extent Area of Influence 3 3

Employment opportunities will affect the wider area of influence

Receptor Sensitivity Moderate 3 3

Magnitude Moderate 3 4

Mitigating and Monitoring Requirements Develop SLP programmes that aim to: Required Management • Prioritise employing local workers if qualified applicants with Measures the appropriate skills are available. • Formalise local employment procedures in Human Resources policies (HR Management Plan) and contractors’ agreements. • Work with community representatives to develop open and transparent recruitment procedures that are disclosed to community members.

Required Monitoring Monitor the numbers of local employees

(if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding Impact can be enhanced through HR policies and Social Labour

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Plan skills development and training programmes.

5.6.5.2 An increase in traffic, road deterioration and road accidents

It is likely that the levels of traffic usage will increase particularly during the construction phase, when there are construction vehicles travelling to and from the construction sites. This increase in traffic will have a cumulative impact for other mines, businesses and private individuals using the roads in the area. This could potentially impact road safety conditions for both the drivers, vendors and the pedestrians using the R577.

Management/Mitigation Measures

The same mitigation and management actions apply as provided in Section 5.6.3.3.

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity It is likely that the levels of traffic usage will increase particularly during the construction phase, when there are construction vehicles travelling to and from the construction sites. This increase in traffic will have a cumulative impact on road safety conditions for both the drivers, vendors and the pedestrians using the R577.

Risk/ Impact Increase traffic, road deterioration and road accidents

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2

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Impacts can be mitigated and reversed within a short period

Extent Site 3 2 Impacts will be confined to site

Receptor Sensitivity Moderate 4 3

Magnitude Moderate 4 3

Impact Significance Increased traffic and road High Moderate accidents are likely to occur, if 14 10 not mitigated and managed. -4 -3

Mitigating and Monitoring Requirements

Required • Mine traffic should be managed through a Transport Management Management Plan. This management plan might include provisions for speed bumps, road safety signs, as well as, Measures facilitating road safety training and education programmes.

Required Monitoring Management and monitoring measures will be detailed in a Transport Management Plan. (if any)

Responsibility for HR Manager implementation

Impact Finding

Impact Finding The impact can be managed through a Transport Management Plan.

5.6.5.3 Increased demand for housing in economic hubs neighbouring the proposed mine towns Housing prices and rental rates will increase if the demand for housing increases. This is a cumulative impact resulting from an influx of job seekers into the towns neighbouring the proposed mine site. The effects of the impact are often felt during construction, and inflated housing markets will regulate themselves according to housing demand and supply. As such no mitigation measures are recommended for this impact.

Significance Rating

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Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Increasing housing prices and rental rates as the demand for housing increases.

Risk/ Impact Increased demand for housing in economic hubs neighbouring the proposed mine towns

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure Nature of Impact Negative/positive

Type of Impact Indirect

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 3 probability

Duration Long Term 3

Extent Area of influence 3

Receptor Sensitivity Minor 2

Magnitude Minor 2

Impact Significance The effects of the impact are Minor often felt during construction, 11 and inflated housing markets will regulate themselves according 2 to housing demand and supply.

Mitigating and Monitoring Requirements

Required • Not applicable Management Measures

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Required Monitoring • Not applicable

(if any)

Responsibility for None implementation

Impact Finding

Impact Finding Impact will be regulated by the local housing market.

5.6.5.4 Loss of access to arable land, ecosystem services and cultural heritage sites

Communities in the Project Area rely extensive on natural resources to secure their livelihoods. These natural resources provide households with valuable sources of food, fuel, income and various other uses. With increased mining activities in the area, reduced land availability will have a detrimental impact on the livelihoods, including income and food security, of households in the Project Area.

In order to reduce the loss of access to livelihood activities and cultural heritage sites the mine should identify areas within their concession area where neighbouring communities can continue grazing livestock, harvesting traditional herbs and accessing cultural heritage sites. If due to safety concerns this is not feasible, the mine should identify alterative land that is easily accessible by neighbouring communities, and where possible provide training in alternative livelihood activities.

Management/Mitigation Measures

Given the high levels of dependency on natural resources, it will be important for Booysendal Mine to implement various management measures to mitigate the potential impacts resulting from the loss of access to ecosystem services. These will include the following: • Conduct a detailed assessment of the current ecosystem services in the Project Area and understand the extent to which these are utilised by neighbouring communities – this is addressed in the ESIA Report; • Where possible, reduce the impact on ecosystem services through project design (minimising project footprint and disturbance on ecosystems); • Where feasible, provide community members with access to grazing land and land for harvesting traditional herbs; • Provide training in alternative livelihood activities through the Social Labour Plan; and • Establish a communal nursery where community members can sustainably harvest traditional medicines.

The loss of access to cultural assets and heritage sites is a significant impact, which should be mitigated through an Archaeological and Heritage Management Plan.

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Significance Rating

Impact Component Impact Significance Significance prior to with Mitigation Mitigation

Activity Reduced availability of land due to increased mining activities in the area.

Risk/ Impact Loss of access to arable land, ecosystem services and cultural heritage sites

Project Phase CO, OP (during which impact

will be applicable) CO = construction, OP = operational, CL = Closure and post- closure

Nature of Impact Negative

Type of Impact Direct

Define Significance Categories Significance Significance Prior to With Mitigation Mitigation

Likelihood/ Likely 4 3 probability

Duration Short term 3 2

Impacts can be mitigated and reversed within a short period

Extent Localised 3 1

Impacts can be localised to specific sites

Receptor Sensitivity Minor 4 2

Magnitude Minor 4 2

Impact Significance Restricted access to arable land, High Minor ecosystem services and cultural 14 8 heritage sites -4 -2

Mitigating and Monitoring Requirements

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Required • Conduct a detailed assessment of the current ecosystem Management services in the Project Area and understand the extent to which these are utilised by neighbouring. Measures • Where possible, reduce the impact on ecosystem services through project design (minimising project footprint and disturbance on ecosystems). • Where feasible, provide community members with access to grazing land and land for harvesting traditional herbs. • Provide training in alternative livelihood activities through the SLP. • Establish a communal nursery where community members can sustainably harvest traditional medicines. • Develop an Archaeological and Heritage Management Plan that aims to ensure communities in the Project Area are able to access cultural assets and heritage sites. Where access is restricted due to safety concerns the management plan will present mitigation measures.

Required Monitoring Detailed in the Environmental Management Plan, SLP and Archaeological and Heritage Plan (if any)

Responsibility for Environmental Manager and HR Manager implementation

Impact Finding

Impact Finding The loss of access to arable land, ecosystem services and cultural heritage sites are significant impacts, which can be

mitigated through Environmental Management plans, SLP programmes, and an Archaeological and Heritage Management Plan.

6. Conditions for Authorisation 6.1 Overarching Strategy

The Social Management Plan (SMP) sets out the conditions required for authorisation, and details an Action Plan for implementing and monitoring impact mitigation and management measures associated with the BS mining activities.

In order to mitigate and manage social and economic impacts identified in this report, the following social management plans are required: • Stakeholder Engagement Plan (SEP);

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• Social Labour Plan (SLP) including labour and recruitment policies; • Road Safety and Traffic Management Plan; and • Archaeological and Heritage Management Plan.

Criteria for mitigation and monitoring considered the following: • Measures adopted to mitigate impacts should be effective in ameliorating the impact without having severe negative secondary consequences; and • They should be practically feasible and cost-effective.

Additional information on these social plans is provided in the SMP.

7. Conclusion and Recommendation

The report identified positive and negative social and economic impacts that can be mitigated and managed. As such, there is no reason – from a Social Impact Assessment point of view – why Phase 1 & 2 of the proposed Booysendal South Expansion Project should not proceed, if the mitigation and management measures recommended in this report are implemented alongside the following social management plans: • Social and Labour Plan; • HR policies; • Stakeholder Engagement Plan; • Archaeological and Heritage Management Plan; and • Transport Management Plan.

8. Authorised Signatory

Signed for and on behalf of by its authorised officer:

...... Signature

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Tandi Reilly ...... Name

Social Specialist ...... Position

9 April 2018 ...... Date

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Social Impact Assessment Tandi Reilly – Social Specialist Appendix 1 Curriculum Vitae

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Professional qualifications/registration(s) International Association of Impact Assessments SA (IAIAsa)

Languages Language Speaking Reading Writing English Excellent Excellent Excellent

Countries with work experience Democratic Republic of the Congo Burkina Faso Senegal Sierra Leone Liberia Mali Madagascar South Africa Mozambique Swaziland Uganda Zimbabwe Lesotho Kenya Zambia

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Employment history Dates of employment Position held Company 2011 – to present Director Social Enterprise Solutions and Surveya Global

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Date Position held Name of Project Client Task Description 2013 Data specialist NYA Cement Plant SRK consulting Developed a mobile solution to gather socio-economic data for a resettlement action plan being undertaken for a resettlement project in the DRC. 2013 Social Wildlands M&E Wildlands Assisted Wildlands specialist Project Conservation Conservation Trust with Trust developing a Social Monitoring Plan and procedure that included gathering socio-economic data to measure carbon offsets using mobile technology. 2013 – Lead social Buchanan Tailings AMEC Foster Lead social and consultation 2014 and Project Wheeler specialist for an ESIA being stakeholder undertaken for a proposed engagement iron ore tailings reprocessing specialist project in Grand Bassa, Liberia. 2013 Data specialist KIS Project Synergy Global Assisted Synergy Global with developing and managing a mobile solution for gathering census and socio-economic data for a road develop project in Uganda. A total of 984 census and 264 socio- economic surveys were completed in 28 days by six fieldworkers using Surveya’s technology and tablets. 2012 Data specialist Sadiola ESIA SRK Consulting Gathered socio-economic Project data for a social impact assessment being undertaken for a proposed gold mine in Mali. 2011 Social Base Titanium Nomad Responsible for gathering specialist Limited RAP Consulting and reporting on socio- economic data for a resettlement monitoring project for a proposed mineral sands mining project in Kwale, Kenya. 2011 Social Team Naboom Chrome SRK Consulting Social team project manager Project Project and social specialist for an

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Date Position held Name of Project Client Task Description Manager ESIA being undertaken for a chrome mine in the Limpopo Province. 2011 Social Kriel RAP Project SRK Consulting Developed a mobile solution specialist to gather socio-economic data for a Resettlement Action Plan being developed by SRK Consulting for a proposed coal mine in Mpumalanga, South Africa. (2011).

Publications and presentations

ARHAP, 2006, Appreciating Assets: The Contribution of Religion to Universal Access in Africa, Report for the World Health Organisation, (Cape Town, October 2006).

Synergy Global, 2013, Guest lecture on data gathering tools for the Community Relations Practitioners Course held in April 2013 and September 2013.

Tandi Reilly Social specialist

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Appendix 2 Declaration of Independence

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Signature of the environmental practitioner: Private Consultant ______1 March 2017 ______Date:

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

Appendix 3 List of Secondary Data Sources

Secondary Sources:

Hall, R, (2008), Decentralization in South Africa's Land Redistribution, Johannesburg, South Africa.

Mphahlele Wessels & Associates, (2016), Social Impact Assessment Scoping Report, Johannesburg, South Africa.

Sekhukhune District Municipality Integrated Development Plan (2016/17 – 2020/21)

Ehlanzeni District Municipality Integrated Development Plan (2016/17)

Ehlanzeni District Municipality Integrated Development Plan (2017/18)

International Finance Corporation, Handbook for Preparing a Resettlement Action Plan, NW Washington, DC (2002)

International Finance Corporation. Projects and People; A Handbook for Addressing Project-Induced, NW Washington, DC (2009)

SOCIAL IMPACT ASSESSMENT REPORT

Social Impact Assessment

SOCIAL IMPACT ASSESSMENT REPORT

Social Management Plan Booysendal Operations

April 2018 Amec Foster Wheeler Engineering and Consulting Mining

Table of contents

Page

1. Introduction 1 1.1 Overview 1 1.2 Scope 1 1.3 Booysendal Policies 1 1.4 Purpose and Objectives 2

2. Site Background 4 2.1 Socio-Environmental Setting 4 2.2 Project Description 7

3. Statutory Requirements 9 3.1 National Legislation, Standards and Policy 9

4. Socio-economic Baseline 11 4.1 Receptors and Potential Impacts 11 4.1.1 Existing Impacts 11 4.1.2 Potential Impacts associated with the Booysendal South Expansion Project 11

5. Roles and Responsibilities 13 5.1 Organisational Structures 13 5.2 Responsible Parties 15

6. Mitigation and Control 16 6.1 Overarching Strategy 16 6.2 Design Control Measures 16 6.2.1 Stakeholder Engagement Plan 16 6.2.2 Social Labour Plan 18 6.2.3 Road Safety and Traffic Management Plan 20 6.2.4 Archaeological and Heritage Management Plan 21

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7. Monitoring 22

8. Reporting 23

9. Action Plan 23

10. Review and Updating of Management Plan 27

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List of figures

Figure 1-1 Framework Process of Developing an Environmental Management Plan 4 Figure 2-1 Location of Booysendal Operations 5 Figure 2-2 Booysendal MR Expansion Activities 8 Figure 5-1 Organisational Structure for Environmental and H&S Management at Booysendal 14

List of tables

Table 1-1 Relevant Northam Platinum Limited Policies 2 Table 3-1 Applicable South African Environmental Legislation for Booysendal Operations 10 Table 5-1 Roles and Responsibilities for the Environmental Management Plan 15 Table 9-1 Social Management Plan Action Plan 24

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1. Introduction

1.1 Overview

Booysendal Platinum Propriety Limited (“Booysendal”) is a platinum group metal (PGM) mine approximately 33km west of Mashishing (Lydenburg), 40km south-southwest of Steelpoort, 32km north of Dullstroom and 21km northeast of Roossenekal. Booysendal has identified a window of opportunity to increase PGM production to meet short to medium term projected demands for platinum and commenced with expansion of the BS over two Phases. Environmental authorisation (EA) for Phase 1 of the Booysendal South Expansion Project was granted on 05 January 2018. As part of the Booysendal South expansions, Booysendal plans to develop portals with surface infrastructure at BCM1 and BCM2, develop an Emergency Escape Portal, an aerial rope conveyor (ARC) and water pipelines between BS1/2 and BN and a Backfill Plant with surface pipelines at BS4. This development requires environmental approval. As part of the environment process selected management plans have been prepared to address the impacts identified in the Environmental Management Programme report (EMPr). These plans will be implemented as part of the Booysendal management system, which provides a protocol to manage the mitigation and control of the operations’ impacts.

1.2 Scope

This Social Management Plan (SMP) aims to provide a framework for managing social performance during construction, mining operations and after mining ceases. The SMP identifies the key activities and resources required to proactively manage the Booysendal Operation’s social issues and impacts, as well as deliver socio-economic benefits. It includes reporting procedures, an approach to addressing complaints, monitoring programmes and compliance processes applicable to the Booysendal Operations. A SMP is generally an internal document of the operation that should be updated annually to ensure that they remain relevant and responsive to changes in the operation and its socio-economic environment.

1.3 Booysendal Policies

Booysendal has signed the following policies that set the framework for environmental management for their operations, such as at Booysendal. All visitors, contractors and employees are required to comply with the requirements of the policies.

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Table 1-1 Relevant Northam Platinum Limited Policies

Policy Commitments ► Implement and maintain sound systems of corporate governance, taking cognisance of recognised global governance guidelines ► Ensure that ethical business practices and decisions are upheld, and to maintain an appropriate whistle-blowing system to counter any transgressions ► Take appropriate responsibility for a safe working environment, and to strive for continual improvement in our health and safety performance Sustainable ► Recognise and uphold the rights of employees and community members, and to guard against Development any discriminatory practices ► Safeguard natural resources, to minimise resource usage and waste, to protect biodiversity and optimise the usage of the land within our custodianship, and to seek continual improvement in our environmental performance. ► Contribute to the social and economic upliftment of local communities through positive engagement and contributions in support of sustainable projects and programmes. ► Develop, implement and maintain an integrated safety, health and environment management system to comply with Northam Platinum Limited targets and commitments ► Drive continual improvement through setting objectives and targets based on sound risk management methodologies, conduct regular reviews of the system and measure our performance through management self-audits ► Comply with all applicable legislations, company policies and procedures and project objectives ► Apply relevant international best practices to our local conditions as part of our commitment to continual improvement ► Promote awareness of potential safety, health, environment and quality impacts of each person's activities, and our business processes on an ongoing basis ► Conserve natural resources such as water, energy and land by encouraging employees, contractors and stakeholders to minimise consumption of resources and prevent pollution through proactively implementing mitigating measures through responsible and accountable Safety, Health construction of the mine and ► Take due care to prevent process loss, property damage, work related injuries and ensure that Environmental activities are safe for employees, contractors, and stakeholders who enter our work environment ► Adopt a clear vision of future business decisions, harnessing best available technologies, processes, materials, products and management practices which improve safety, health and environment performances ► Train employees and contractors on issues of safety, health and environment management to ensure sustainable performance; ► Strive to deliver all milestones on time through proactive planning, contingency planning and risk management ► Place people at the centre of our business through the implementation of People Based Safety principles ► Establish and promote a culture of mutual interest and care between employees, to ensure that all our employees and contractors take due care and cognisance of the impact of our own acts, and these of others on the safety and health of fellow workers and the environment. ► Compliance with accepted environmental practices ► Meeting or exceeding applicable legal requirements ► Striving for continual improvement in our environmental management and business systems Environmental ► Adopting appropriate technological and engineering responses to environmental concerns ► Raising awareness of environmental concerns among the workforce through appropriate training and communications ► Encouraging our suppliers and business partners to adopt similar principles Social ► Social Labour Plan

1.4 Purpose and Objectives

The purpose of the management plan is to set out a clear set of actions and responsibilities for the control of social impacts affecting communities and farmers neighbouring the operations’ area of influence. It is a living document that will be amended and updated as circumstances change and knowledge is gained. The primary objectives of the management plan are to:

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• Identify key management plans, activities and resources required to proactively manage the operations social issues and impacts; • Identify opportunities and methods to deliver socio-economic benefits; • Evaluate engagement activities to identify successes, areas for improvement and provide the basis for future engagement activities; • Detail priority issues and impacts that need to be managed; and • Outline the management and monitoring measures planned to improve social performance. Management of social impacts at each phase of the operations’ activities:

• Construction Phase – provides specific social guidance for the implementation and construction phase of a project. Construction activities can incur impacts at start up (e.g. site clearing, erection of the construction camp) to actual construction (i.e. erosion, pollution of water courses, noise, dust). • Operational Phase - provides specific social guidance related to the operational activities associated with the mine development and ongoing operation. • Decommissioning and Rehabilitation Phase – provides social guidance on the risks and residual impacts that may remain after operations have ceased (i.e. contamination of soil and groundwater, stock that has been abandoned (oil drums, scrap equipment, old chemicals) and old (unserviceable structures)); the positive environmental opportunities associated with the return of the land for alternative use and the cessation of impacts associated with operational activities; and the management of these risks and impacts.

This SMP is guided the Environmental Management Plan (EMP) framework process developed by the Department of Environmental Affairs (DEA), which is illustrated in Figure 1-1.

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Figure 1-1 Framework Process of Developing an Environmental Management Plan1

2. Site Background

2.1 Socio-Environmental Setting

Booysendal Platinum Proprietary Limited (hereafter referred to as Booysendal) is an operational platinum group metal (PGM) mine complex located in the Eastern Limb of the Bushveld Igneous Complex (Booysendal Mine). BN falls within Ward 31 of the Greater Tubatse Local Municipality (GTLM) of the Sekhukhune District Municipality (SDM) in the Limpopo Province. BS is located in Ward 5 of the Thaba Chweu Local Municipality (TCLM) of the Ehlanzeni District Municipality (EDM) in the Mpumalanga Province. The ward and municipal demarcations are depicted in Figure 2-1. The proposed expansion for the Booysendal MR falls in both the district and local municipalities.

1 DEAT (2004) Environmental Management Plans, Information Series 12

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Figure 2-1 Location of Booysendal Operations

Four communities were identified in the vicinity of the proposed mine establishment (western side, southern and eastern sides) within a radius of 10km. These consist of three neighbouring farms, the Choma, Shaga, and Stageng communities, as well as the Phetla community located at BS4. The B4 community is located 3 to 5 km north east of BS4 and is of the Sepedi tribe. It comprises approximately 50 households with an estimate population size of approximately 450 people living in houses built with cement bricks and corrugated roof sheeting. The community is characterised by high levels of subsistence farming and low levels of employment. Household income is derived primarily from remittances and social grants. In the BaPhetla community water is primarily collected from communal springs, and although the community has a primary school, adult literacy rates are low. To the north of this settlement can be found two other communities within a 10 km radius, on the farms Schaapskraal and Vygenhoek. These are the BaChoma (approximately 477 people) who have claimed the land recently (since 2012) and Protea Farm, which are labour tenant farmers who have farmed the land for generations. The area within the river valley is not inhabited. The area has a low level of employment and low income levels with poor access to basic services. Further north of the BaChoma community is the Shaga community (approximately 7000 people), and south east of the proposed mine is the Stageng community, which comprises an estimate population of 8000 people. Estimate figures from the Social Baseline Study (2017) show that there are approximately 15 927 people residing in the Project Area with an average of 9,94 persons per household. Communities are relatively young, with a significant proportion (60%) of the population under 18 years of age.

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Approximately between 38% and 45% of the population are male while women constitute between 62% and 55% of the population. The size of the communities fluctuates strongly and is mainly attributed to people migrating to the area during land claims. The majority of households comprise extended families including a husband, his wife, their children and grandparents. The Project Area is home to two ethnic groups. Sepedi are the predominant ethnic group followed by the Ndebele. There were no reports of any conflict or tension between the ethnic groups. The different ethnic groups are characterised predominantly by their varying dialects. Although there are no church buildings in the Project Area, the population practice both Christianity and traditional religions. Communities rely primarily on agriculture for subsistence; and very few households farm commercially. Land is acquired through Traditional Councils and Community Property Associations (CPAs). The average plot size per household is one hectare. The population comprises both land claimants and labour tenants, with the majority of land claimants moving to the Project Area in 2012. There are tensions between land claimants and labour tenants who resided on the land prior to the land claims. The reasons for the tensions are primarily around increased vulnerability due to a lack of economic opportunities in the Project Area. The majority of land is communally owned, and only one private landowner was identified in Shaga. The houses in the Project Area vary. Some are large farmhouses comprising two or three bedrooms, while others are shanties erected from corrugated iron, but the majority of houses are built from cement bricks with corrugated sheet roofing. Very few traditional houses are built using mud and thatching straw. Households usually consist of one or two structures for extended family members. In addition to these primary structures each household will also have one or two outbuildings for livestock. Households have very few assets. The more common of these assets include furniture, such as chairs, tables and mattresses. Radio and television signal in the Project Area is weak, and a few houses did have satellites dishes. Cellular telephones are the main source of communication. Social services and infrastructure are poor. All communities included in the survey have at least one primary school nearby; however only one community has access to a secondary school and this is located in Stageng (Draaikraal). There are no clinics in the Project Area. A mobile clinic is supposed to visit the communities at least once a month, but it is often unreliable and only comes once every three months. Water is generally sourced from rivers and springs, and only one community has access to piped water. During focus group meetings the women reported that the water quality is generally poor, and that the rivers were polluted from mining related activities, illegal dumping, and livestock. Although communities, except for Choma, have access to electricity, households rely primarily on wood for cooking. None of the towns/villages reported having shops and markets. There is a significant lack of sanitation facilities and while some households have constructed pit latrines close to their homes, the majority of the population make use of the bush. There is also no formal refuse removal and communities generally bury and burn their refuse or throw it into the surrounding bush. The secondary roads off the R577 are dirt roads and some are in poor condition. There is a complete lack of a public transport network and the community members generally walk or hike to get to their destinations. During the socio-economic baseline study the survey considered the general education levels of the population, including the education levels of adults. From the data collected it is apparent that a significant proportion of the adult population are illiterate and do not have any formal education. Although primary education is free, parents are required to pay a once off registration fee for secondary school. During the study it was reported that the majority of children are registered at

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school, however factors such as unreliable public transport, money for school uniforms and stationary contribute to children not completing secondary school. As a result a very small percentage of the population complete secondary school, and tertiary education is just about non-existent for both adults and the general population alike. The Project Area is characterised by high levels of subsistence farming and low levels of employment. Household income is derived primarily from remittances, social grants and in some communities households supplement their income by selling traditional herbs and medicine. In Shaga it was reported that households also barter with traditional grass brooms for household items like maize meal and sugar. The most commonly ailments and diseases reported by the communities are diarrhoea, high blood pressure, diabetes, and Tuberculosis. Many community members do not make use of the mobile clinic due it being so unreliable, and in instances where there are medical emergencies people hike to the public hospital in Mashishing. Community members did indicate that they often self medicate and make use of medicinal plants. Traditional healers were reported to be very expensive, and only a few community members consult with traditional healers. A number of sites of archaeological, cultural and historical significance have been recorded in the valley and surrounds. There are various Iron Age sites, ruins, cemeteries and graveyards as well as stone cairns and terracing. Whilst the sites are of importance to the history and culture of the country, none were considered to have outstanding significance. There are also no visible fossil-bearing strata in the area. The majority of the population can be regarded as vulnerable due to the high levels of poverty. The most vulnerable may include children and youth, women and widows/widowers, the elderly and the disabled and chronically ill. Although the overall perception of the project by the community members is negative, communities neighbouring the mine want the project to go ahead. They are hoping for benefits in the form of employment and improved social services and infrastructure, and have high expectations that the mine will improve their lives even though they are concerned that promises will not be unfulfilled. Some of the possible negative impacts listed by community members include not hiring local workers, polluting the environment, and reducing access to natural resources.

2.2 Project Description

The layout of the proposed Booysendal expansion involves:

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• An Arial Rope Conveyor (ARC) system from BS1/2 to BN.

The following changes and new infrastructure components are applicable to the Project:

• There will now be surface infrastructure associated with each of the two Merensky portals, including conveyor systems, workshops, offices, a Pollution Control Dam (PCD) at each, water storage tanks etc. The northern Merensky has also been slightly moved to be sided by streams and not across a drainage line any longer. Undermining is however still applicable as indicated in the revised drawings; • Potable and process water lines for BS1/2 and the Merensky mines will run along the main access road between BS1/2 and BN; • The water line (previously TKO line) will now follow the existing TKO route to BS4 (ex-Everest) from where it will then run underground to surface at the Valley Boxcut; • Surface infrastructure components will now be constructed at the ex-Everest Valley Boxcut to form a fully operational mine in accordance with the approved layout received in 2009; • The emergency escape portal has been reintroduced in the project requirements; • Recommissioning of the ex-Everest Process Plant; • Backfill Plant with various pipelines at ex-Everest; and • The ARC route from BS1/2 to BN.

Figure 2-2 Booysendal MR Expansion Activities

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3. Statutory Requirements

3.1 National Legislation, Standards and Policy

The South African environmental legislation that applies to the Booysendal Operations is listed in Table 3-1.

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Table 3-1 Applicable South African Environmental Legislation for Booysendal Operations

• The Constitution of South Africa Act, 108 of 1996 • Minerals and Petroleum Resources Development Act, 28 of 2008 • National Environmental Management Act, 107 of 1998 (NEMA) o GNR 326 of 07 April 2017 – Environmental Impact Assessment Regulations o GNR 327 of 07 April 2017 – Listing Notice 1: List of Activities and Competent Authorities o GNR 325 of 07 April 2017 – Listing Notice 2: List of Activities and Competent Authorities o GNR 324 of 07 April 2017 – Listing Notice 3: List of Activities and Competent Authorities o GNR 1147 of 20 November 2015 – Financial Provision for Prospecting, Exploration, Mining or Production Operations • National Environmental Management: Biodiversity Act, 10 of 2004 (NEMBA) o GNR 151 of 23 February 2007 – Lists of Critically Endangered, Endangered, Vulnerable and Protected Species o GNR 598 of 1 August 2014 – Alien and Invasive Species Regulations, 2014 o GNR 599 of 1 August 2014 – Alien and Invasive Species Lists, 2014 o GNR 37320 of 12 February 2014 – Requirements for the Management of Alien and Invasive Species o GNR 152 – Threatened or Protected Species Regulations o GNR 138 of 8 February 2008 – Bio-Prospecting, Access and Benefit-Sharing • National Environmental Management: Waste Act, 59 of 2008 (NEMWA) o GN 921 of 29 November 2013 – List of Waste Management Activities with a Detrimental Effect on the Environment o GNR 625 of 13 August 2012 – National Waste Information Regulations, 2012 o GNR 634 of 21 August 2013 – Waste Classification and Management Regulations, 2013 o GNR 635 of 23 August 2013 – National Norms and Standards for the Assessment of Waste for Landfill Disposal o GNR 636 if 23 August 2013 – National Norms and Standards for Disposal of Waste to Landfill o GN 926 of 29 November 2013 – National Norms and Standards for the Storage of Waste o GNR 331 of 2 May 2014 – National Norms and Standards for Screening and Assessing Contaminated Sites • National Environmental Management: Air Quality Act, 39 of 2004 (NEMAQA) o GNR 1210 of 24 December 2009 – National Ambient Air Quality Standards o GNR 486 of 29 June 2012 – National Ambient Air Quality Standard for Particulate Matter

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4. Socio-economic Baseline

4.1 Receptors and Potential Impacts

This section summarises the social impacts associated with the Booysendal South Expansion Project, all requiring intervention and management or enhancement. It is important to note that the significance rating of an impact is not the only criterion used to identify where priorities for management lie. Management measures are determined based on good international and sector practice together with the ratings of the impacts. For the social impact assessment, a S24G Phase was included as mitigation/enhancement of these impacts commenced without the necessary authorisation at the time

4.1.1 Existing Impacts The social impacts that currently exist as a result of S24G activities include:

• Three positive economic impacts – Job creation; skills transfer and development; multiplier effects on the local economy. • Two negative economic impacts – Loss of access to livelihood activities; tensions over employment opportunities; and • Three negative social impacts – Increased tension between land claimants and land occupants, Loss of access to cultural assets and heritage sites, and Loss of access to medicinal plants.

4.1.2 Potential Impacts associated with the Booysendal South Expansion Project

4.1.2.1 Construction Phase Predicted construction phase impacts include:

• Three positive economic impacts – Job creation; skills transfer and development; multiplier effects on the local economy. • Two negative economic impact – Loss of access to livelihood activities; tensions over procurement contracts. • Five negative social impacts – Increased pressure on local infrastructure and services as a result of influx; social unrest due to conflicts between work seekers and land occupants; increased tension between land claimants and land occupants; increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse); and • Three negative health and safety impacts – Visual, noise and air quality impacts; increase in communicable diseases; increased traffic and road accidents.

4.1.2.2 Operational Phase The social impacts that will be most pronounced or triggered during the operational phase of the proposed project are:

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• Six positive economic impacts – Job creation; skills development and transfer; regional economic development; contribution to the fiscals; establishment and development of SMME’s; social infrastructure development through CSR and LED programmes (i.e. SLP commitments); • Two negative economic impacts – Loss of access to livelihood activities; tensions over procurement contracts. • Two positive social impacts – Improved access to social services and infrastructure; improved lifestyles (emergence of a social class of homeowners and motor vehicle drivers); • Eight negative social impacts – Increase in informal settlements as a result of influx; increased pressure on local infrastructure and services as a result of influx; social unrest due to conflicts between work seekers; increased tension between land claimants and land occupants; increase in social pathologies (teenage pregnancies, school drop-outs, alcohol and substance abuse); Erosion of local cultural values and morals; loss of access to medicinal plants; increased crime; • Three negative health and safety impacts – Increase in communicable diseases; visual/acoustic and air quality impacts; increased traffic and road accidents.

4.1.2.3 Decommissioning and Closure The eventual termination of a mine’s operating life is common to most extractive operations, and socio-economic consequences are inevitable. It should be noted that predictions concerning the characteristics of the receiving socio-economic environment at the time of decommissioning are subject to a large margin of error, thus significantly reducing the accuracy of impact assessment. Several socio-economic impacts could arise when the mining operation is decommissioned and should therefore form part of the planning process for decommissioning of the mine. Socio-economic issues that could be focused on include:

• Donation of mine infrastructure to local municipalities; • Increase in job losses and unemployment; • Loss of income for contractors; • Loss of funding and support for local infrastructure development and social services; • Loss of revenue for local municipalities; • Increase in alcohol and substance abuse; • Social dislocation due to out-migration; • Decline in lifestyles; and • Decreased traffic and road accidents.

4.1.2.4 Cumulative impacts The cumulative impacts for this project include:

• Increased job opportunities, skills development and transfer, as well as regional economic development; • An increase in traffic, road deterioration and road accidents; • Other cumulative impacts might include increased demand for housing in economic hubs neighbouring the proposed mine towns. This might impact could result in increased housing prices and rentals; and • Loss of access to arable land, ecosystem services and cultural heritage sites.

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5. Roles and Responsibilities

5.1 Organisational Structures

The overall organisational structure for social management at Booysendal is shown in Figure 5-1. This social management plan will be integrated into Booysendal’s routine operations through their environmental management system and standard operating procedures. As required with all environmental and social management at Booysendal, all levels of management and the workforce will be required to commit to the social management plan.

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Figure 5-1 Organisational Structure for Environmental and H&S Management at Booysendal

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5.2 Responsible Parties

Booysendal has the responsibility for ensuring that specific social management and monitoring responsibilities are allocated and implemented. In addition, Booysendal’s employees and contracted third parties shall be trained and aware of the social standards and procedures. Table 5-1 Roles and Responsibilities for the Environmental Management Plan

Responsible Party Roles and Responsibilities ► Assure that the SHEQ has resources, information General Manager – Booysendal and authority to implement the measures outlined in Management Plan ► Enforcement of all measures outlined in the Management Plan. Safety,Health, Environment, Quality ► Provision of Management Plan training and (SHEQ Manager - Booysendal awareness to all employees and contractors. ► Reporting of compliance with Management Plan to Booysendal General Manager. ► Enforcement of the management and monitoring measures in the Management Plan. Senior Environmental Officer - ► Ensuring that all training and awareness is Booysendal undertaken for all employees and contractors. ► Reporting of compliance with Management Plan to Booysendal SHEQ Manager. ► Stakeholder engagement and community liaison applicable to the Management Plan. ► Provide communities with awareness training where Community Liaison Officer - needed. Booysendal ► Provide support in the implementation of the company transparent recruitment process. ► Management and reporting in terms of the Complaints Procedure. ► Assure that the EPCM has resources, information, knowledge and authority to implement the Project Director – Booysendal measures outlined in Management Plan. Expansion Project ► Report on the Management Plan compliance to Booysendal and the Northam Board. ► Adhere to procedures and requirements of the Management Plan. ► Staffing, planning and day-to-day execution of the EPCM Project Manager – measures in the Management Plan. Booysendal Expansion Project ► Adherence of all contractors to the Management Plan measures and requirements. ► Reporting on compliance and monitoring as required by the Management Plan. ► An independent quality controller and monitoring agent regarding all environmental concerns and associated environmental impacts. ► Assurance of compliance (monitoring and verifying) Environmental Control Officer – with legal requirements and the Management Plan Booysendal Expansion Project on a day-to-day basis. ► Report on compliance and monitoring to the EPCM Project Manager and the Project Director, Booysendal Expansion Project.

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6. Mitigation and Control

6.1 Overarching Strategy

The environmental guideline is outlined in the Booysendal procedure BSD-SHEQ-ENV PRC 009, which applies to construction other similar activities. This procedure includes social management measures from environmental authorisation documents as well as for the conditions issued by the various authorities and is applicable to all employees, contractors, subcontractors and their employees working at Booysendal Platinum Limited. This section provides a summary of the relevant management plans informing impact mitigation during the life of the project. The following management plans are integrated and work in partnership to mitigate potential social impacts:

• Stakeholder Engagement Plan (SEP); • Social Labour Plan (SLP) including labour and recruitment policies; • Road Safety and Traffic Management Plan; and • Archaeological and Heritage Management Plan.

Additional information on these plans is provided in the subsequent sections.

6.2 Design Control Measures

These management plans are for social impacts only.

6.2.1 Stakeholder Engagement Plan Booysendal Mine is required to prepare a Stakeholder Engagement Plan for the proposed expansion project.

6.2.1.1 Objectives The Stakeholder Engagement Plan (SEP) aims to outline the ESIA consultation engagement strategy, which will assist Booysendal Mine with managing and facilitating engagement through the various stages of the Project’s life cycle from construction, to operations, closure and rehabilitation. Booysendal Mine is currently establishing Community Development Forums within neighbouring communities that comprise representatives of Community Property Associations (CPAs) executive structures and community leaders. These forums aim to assist Booysendal Mine with open and transparent engagement, and also seek to assist the mine with identifying community development programmes for SLP projects. In general community governance in the Project Area is complex and overshadowed by conflict over land claims and mistrust of community leaders who are perceived as not being representative of the broader community, corrupt and restricting access to natural resources and employment opportunities with mines in the area. Engagement by the mine with only CPA executive structures and community leaders is likely to be ineffective and to further fuel mistrust between community members and community leaders. As an alternative to only communicating to neighbouring communities through existing governance structures and/or relying on CPAs to communicate key project messages to constituencies, the mine

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should also consider disseminating project information in community meetings that are representative of the local communities impacted by the project. This will improve trust between the mine and the neighbouring communities, and assist the mine with gaining support for the Booysendal South Expansion Project and related mining activities. As such, the overarching objectives of the SEP should be to:

• Understand the stakeholder engagement requirements of the Booysendal South Expansion Project; • Provide guidance for stakeholder engagement such that it meets the standards of International Best Practice; • Identify key stakeholders that are affected, and/or able to influence the Project and its activities; • Identify the most effective methods and structures through which to disseminate project information, and to ensure regular, accessible, transparent and appropriate consultation; • Guide Booysendal Mine to build mutually respectful, beneficial and lasting relationships with stakeholders; • Outline a grievance procedure allowing stakeholders to log their concerns, and a procedure to address these concerns; • Suggest mechanisms that enable stakeholders to influence project planning and where feasible design; and • Assist Booysendal Mine with securing free, prior and informed consultation and maintaining a social license to operate throughout the life of mine. The SEP, in conjunction with other management plans, will assist Booysendal Mine with addressing many of the impacts identified by the ESIA process.

6.2.1.2 Programmes and project activities to address issues

Grievance Mechanism The Booysendal South Expansion Project is required to prepare a grievance procedure and a management system to address grievances associated with construction and operating procedures of the proposed mine. Currently there is a grievance procedure in place for Booysendal North that constitutes both face-to- face methods whereby community leaders are able to voice their grievances at meetings, as well as the submission of written grievances, which can be submitted to security guards at the main gate. Grievances associated with the Booysendal Mine Expansion Project should be recorded and addressed by the appropriate mine department with oversight provided from the SHEQ Manager. The grievance procedure should outline a feedback process to claimants that includes a schedule for mitigation and an appeal process.

Community Meetings Over the duration of its mine related activities, Booysendal Mine has consulted with a number of stakeholders and community leaders of neighbouring communities. Very few meetings have been held with community members.

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In order to facilitate engagement, build and maintain relationships with community members, Booysendal Mine should meet regularly with community members. Community meeting should be held ever quarter, and provide community members with updates on mine related activities including local employment. At these meetings community members should be provided with an opportunity to raise their grievances and concerns, and Booysendal Mine should provide feedback on grievances and concerns raised at earlier meetings.

On-going Engagement Strategy Booysendal Mine is currently working on establishing Community Development Forums that comprise CPA representatives and community leaders. If the proposed expansion project is approved, Booysendal Mine should identify community engagement activities that break away from Booysendal’s current consultation strategy that focuses primarily on engaging with community leaders. Broader consultation and engagement activities will assist Booysendal with reducing tension between community leaders and community members. It will also assist Booysendal with informing and educating community members about project related activities, including employment and community development programmes, thereby managing high expectations.

6.2.2 Social Labour Plan

6.2.2.1 Objectives The Social Labour Plan (SLP) should aim to promote and support sustainable development programmes in communities affected by Booysendal’s operations. Its key objective will be to enhance project-related benefits while contributing to the management and mitigation of potential risks to and adverse impacts on surrounding communities. Through the SLP, Booysendal Mine will implement meaningful Corporate Social Investment (CSI) through effective engagement with local stakeholders. The overarching objective of the SLP will be to establish a durable and locally appropriate framework and model for sustained and cooperative socio-economic development in and around the mine lease area, and to provide a vehicle for the implementation of Booysendal Mine’s community development policies and responsibilities. The design and implementation of a viable and sustainable SLP that is likely to realise this objective requires care and commitment. This is particularly the case in an area where government institutions are under resourced, and where the communities neighbouring the mine are vulnerable. In this context, the SLP has to win and retain the participation and ownership of all stakeholders. This requires thorough consultation, confidence building, cooperative planning and inclusive decision- making. The principles of the SLP should include:

• The promotion of sustainable community development programmes at the commencement of mining, which appropriately balance present development needs and priorities, with resources needed to ensure continued development for future generations; • The promotion of self-sufficiency among organisations and structures planning and facilitating development, and the avoidance of paternalistic and other practices that will promote dependency; • Wide and continuing consultation and engagement with representative and development- oriented organisations and groups; • Respect for social and cultural diversity;

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• Communication processes ensuring equitable participation, particularly amongst vulnerable groups that may be marginalised; • Equitable access by all groups to development initiatives promoted under the SLP; • Optimum effectiveness of development support, through participative project screening and prioritisation, focused implementation and regular monitoring. Attention will be given to initiatives where limited resources can “leverage” significant development results; and • Upholding best practice in the context of corporate citizenship, and forming working alliances with like-minded companies and organisations.

6.2.2.2 Issues to be addressed by the SLP The Booysendal South Expansion Project has the potential to contribute significantly to the economic development of the area. Although mining developments are relatively short term, they provide the opportunity for substantial and permanent improvements to communities. It is anticipated that the SLP will address issues and impacts that will fall under the following categories:

• Governance and capacity building: capacity building for good governance aims to raise the capacity of local organisations and institutions. This means strengthening the ability and effectiveness of local institutions in addressing development and service delivery needs by assisting partners with accountability, organisational structures, planning, financing and reporting; • Infrastructure refurbishment and development: refurbishing and building health and education infrastructure i.e. refurbishing schools and building clinics that provide developmental benefits at marginal costs and without creating high levels of dependency; • Macro-projects: benefiting large community groups such as agricultural and water supply projects; • Local procurement: outsourcing to the local economy can play a major role in uplifting neighbouring communities, alleviating poverty, increasing food security and developing local businesses; • Job creation, skills development and enterprise development: including local employment, training and support for both employees and entrepreneurs; • Community health and wellbeing: including STD and HIV/AIDS awareness and prevention programmes and primary health care; • Empowerment of vulnerable groups: Providing support to marginalised and disempowered people who lack access to social support networks. These people often include widows, orphans, youth, the elderly and the disabled or chronically ill.

6.2.2.3 Programmes and project activities to address issues Booysendal undertakes the following as part of their approved 2016 – 2020 SLP:

• Technical skills training which will lead to further empowerment of the employees; • The adult based education and training (ABET) programme will be expanded into the community;

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• Offering learnerships as part of the skills development strategy; • Portable skills training which can be applied outside of the mining industry, including amongst others basic training in: welding; electricity; plumbing; finance; leadership; and entrepreneurship; • Career progression plans to develop the skills of individuals; • Employee mentorship programs to fast track on the job training and skills development; • Skills and qualification enhancement through internships and bursary plan; • Implementation of an employee equity programme; • Technical skills training which will lead to further empowerment of the employees; • The adult based education and training (ABET) programme will be expanded into the community; • Offering learnerships as part of the skills development strategy; • Portable skills training which can be applied outside of the mining industry, including amongst others basic training in: welding; electricity; plumbing; finance; leadership; and entrepreneurship; • Career progression plans to develop the skills of individuals; • Employee mentorship programs to fast track on the job training and skills development; • Skills and qualification enhancement through internships and bursary plan; and • Implementation of an employee equity programme.

Although SLP programmes and projects are yet to be identified for the Booysendal South Expansion Project. It is, however, anticipated that these programmes will focus on medical and education service provision, and will draw on the approved 2016 – 2020 Social and Labour Plan (SLP).

6.2.3 Road Safety and Traffic Management Plan

6.2.3.1 Objectives The primarily purpose of the Traffic Impact Assessment (2018) was to determine whether access to the development (mine) was appropriate and whether the roads were able to accommodate the anticipated traffic demand in a safe and efficient manner. The intersections of R577 (P171) / D874 as well as D874 / Village Access Road were analysed. The analysis was done by determining the traffic that will be generated by the development (trip generation) and added to the existing background traffic volumes.

6.2.3.2 Issues to be addressed by the Road and Safety Traffic Management Plan It is expected that the Booysendal Mine will generate approximately 850 daily trips on the Access Road and R577 (Refer to the Traffic Impact Assessment; 2017), and that during the construction phase the peak hour traffic demand is expected to be 210 vehicles per peak hour, while during the operational phase the peak hour traffic demand is expected to be:

• Am peak: 153v/h (130 in; 23 out); and • Pm peak: 112v/h (22 in; 90 out). Issues addressed by the Management Plan include:

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• Determining the existing background traffic volumes 2017 at the following intersections: o R577(P171)/D874; o D874/VillageAccess; • Analysing the number of trips that will be generated by the proposed new expansion of the mine during the construction and operational phase; and • Determine the impact of the proposed development at the mine on the adjacent road network (analysed intersections) during peak traffic hour periods.

6.2.3.3 Programmes and project activities to address issues Based on the conclusions that have been derived from this study, the following are recommended:

• That a speed hump (designed for a speed of 40 km/h) be provided at the start of the downhill approach (along Road D874) , followed by two sets of rumble strips / Cosbi lines combination between the speed hump and the Road D874 / Village Access Road intersection. The speed hump and Cosbi lines shall be designed by a geometric roads engineer / traffic engineer in accordance with the SCIR standard; • That the existing village access road be re-gravelled at certain sections with the upgrading of stormwater control. It is however advised that the provision of a light pavement and double seal be considered in the near future; • That the existing Black Wattle trees at the north western corner of the D874 / Village Access Road intersection be removed in order to enhance sight distance towards the north; and • The possible security clearance of the vehicles at the access gate and possible delays as a result of this is a study on its own and falls beyond the scope of this study. It is however advised that an access gate operational procedure be determined in consultation with the mine security control and a traffic engineer.

6.2.4 Archaeological and Heritage Management Plan

6.2.4.1 Objectives The objectives of the Archaeological and Heritage Impact Assessment were the following:

• To establish whether any of the types and ranges of heritage resources as outlined in Section 3 of the National Heritage Resources Act (No 25 of 1999) (see Box 1) do occur in the project area and, if so, to determine the nature, the extent and the significance of these remains. • To establish if any of these heritage resources will be affected by the proposed Everest Project and, if so, to evaluate what appropriate mitigation measures must be taken if any of the types and ranges of heritage resources will be affected by the project.

6.2.4.2 Issues to be addressed by the Archaeological and Heritage Management Plan The Management Plan addressed the following types and ranges of heritage resources as outlined in Section 3 of the National Heritage Resources Act (No 25 of 1999), namely:

• Historical remains which can be associated with indigenous people and the first colonists. • Graveyards and graves.

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The Management Plan found that none of the heritage resources that were recorded were impacted.

6.2.4.3 Programmes and project activities to address issues The Archaeological and Heritage Impact Assessment identified the following mitigation measures to manage heritage resources:

• All heritage resources must be registered in a heritage register; • Heritage resources must be inspected on a regular basis not exceeding every three months; • Inspections should be noted in an inspection register. The register should outline the state of the heritage resources graves during each inspection. Reports on damages to any of the heritage resources should be followed with the necessary mitigation measures. Mitigation measures must be in accordance with stipulations from the NHRA (No 20 of 1999). Mitigation work should be recorded in the inspection register; • Corridors of at least 30m should be maintained between the outer edges or perimeters of heritage resources and any developmental components such as roads or other infrastructure that may be developed in the future; • Graveyards and graves must be demarcated with fences or with walls and should be fitted with access gates; • Regulated visitor hours should be implemented that is compatible with mine safety rules; • Corridors of at least 30m should be maintained between graveyard and grave’s fences and any developmental components such as roads or other infrastructure that may be developed in the future; • Graveyards and graves should be inspected on a regular basis not exceeding every three months. Inspections should be noted in an inspection register. The register should outline the state of the graveyards and graves during each inspection. Reports on damages to any of the graves or to the graveyards (fences, walls, gates) should be followed with the necessary maintenance work. Maintenance work should be recorded in in the inspection register; and • Graveyards and graves should be kept tidy from any invader weeds and any other refuse.

7. Monitoring

Monitoring and Evaluation (M&E) is necessary to measure and improve performance of initiatives conducted. It is also a critical component in the determination of transparency and to ensure information flow to assist stakeholder participation. The key determinant in the successful implementation of the action plan is the measurement against Key Performance Indicators (KPIs). The full list of KPIs is contained in the action plan, associated with each activity and phase. A variety of methods will be used to collect information on the achievement of KPIs. In most cases this would involve the scrutiny of records and documents, but may also include stakeholder interviews, focus groups, workshops, review of meeting minutes and reports, and surveys (the latter especially for evaluation). Monitoring results must be structured and presented for review on an ongoing basis so that if objectives and targets are not met, corrective action can be taken.

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The full monitoring plan and chosen indicators will need to fulfil requirements including the following:

• Information gathered needs to be specific for meaningful interpretation covering the material potential impacts; • Indicators need to be measurable and auditable, so that results can be verified; • Monitoring needs to be relevant to specific receptors potentially impacted within the project area of influence; and • Monitoring programmes further need to be time-bound with a clear schedule of monitoring activities. • A pragmatic approach needs to be taken to ensure that monitoring of relevant aspects is undertaken at the appropriate level.

8. Reporting

M&E reporting will provide both management information for the effective management of programmes and institutions, and transparency/disclosure information to external parties. Management information will be evaluative in nature and mostly provide details regarding progress against a set of specified KPIs in the Action Plan. External reporting will be more descriptive in nature regarding the activities of development institutions. This information must be accessible, considering matters of language, literacy and the patterns of use of public communication vehicles. Methods of reporting of disclosure information will include the following:

• SMP published progress reports; • Briefing sessions and workshops; • Reporting in consultation forums and community meetings; and • Feedback through the proposed Stakeholder Engagement Plan. Booysendal’s communication and public liaison function should be well positioned to advise and support the SMP reporting activities.

9. Action Plan

The Action Plan sets out a systematic response by Booysendal Mine to managing and mitigating social issues, concerns and impacts. It responds to the current socio-economic environment, but it also lays a foundation for the proactive development initiatives introduced as a part of the various management plans. The Action Plan should be reviewed in conjunction with the social management plans developed during the ESIA process – including but not limited to the SEP and SLP. The Action Plan provides a high-level summary of these management plans including key performance indicators to be managed and monitored, and partnerships that will assist in meeting and securing desired objectives of the management plans.

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Table 9-1 Social Management Plan Action Plan

Management Issue Response Resources Timeframe KPIs Partnerships Plan/s

Waste and water Studies were undertaken to assist Environmental SHEQ Manager On-going An Environmental Pollution and Control Plan, Water Management Booysendal with: management Management Plan Plan developed during the ESIA process • Understanding water usage in Environmental the area Water Officer Monitoring undertaken and appropriately reported • Minimising disturbance Management Plan Water and waste adjacent to watercourses • Minimising construction specialists footprint Effective and sustainable mine water management measures will be promoted. The Environmental and Social Impact Air pollution, noise Environmental SHEQ Manager On-going Continuous monitoring and reporting Assessment (ESIA) assessed the and vibrations Management Plan impacts on air quality, and it Environmental Number of related grievances determined the impacts of blasting, Air Quality Officer and vibrations on neighbouring Management Plan Air, noise and communities. Appropriate mitigation measures will be recommended to blasting mitigate any negative impacts. specialists Loss of cultural A cultural heritage study was Cultural Heritage HR Manager Feasibility Cultural Heritage Study Traditional undertaken to identify, mitigate and heritage Management Plan Authorities manage cultural impacts. Cultural Heritage Records of all graves and cultural sites Specialists

Social benefits and The socio-economic study identified Social Labour Plan SHEQ Manager On-going Development of a SLP detailing current and future community Local Government infrastructure positive project impacts, and (SLP) HR Manager development initiatives Local NGOs development recommend ways to enhance these Finance Manager Establishment of representative Community Development Community opportunities. Forums Development Forums Meeting minutes Number of SLP programmes Number of SLP programme beneficiaries Booysendal will develop a transparent Job creation and SLP HR Manager On-going Develop and disseminate employment and recruitment policies Local Government and fair recruitment policy that will be local employment communicated to community Employment and Finance Manager Record number of employees (local and non-local) Local NGOs members. recruitment Complete local skills register/assessment Community Where possible, local employment will policies Development Forums be prioritised. Skills development programmes Number of trained local labourers Other neighbouring mines

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Management Issue Response Resources Timeframe KPIs Partnerships Plan/s

Influx All social management plans work All social SHEQ Manager On-going Number of informal housing structures Local Government together to assist with managing influx management HR Manager Increased pressure of local services (Including healthcare and Traditional into the area including SEP and plans education facilities) Authorities recruitment policies. Community leaders During the impact assessment Impacts on SLP HR Manager Feasibility Identification of people’s primary sources of livelihood (including Local Government specialist studies identified project livelihoods (loss of subsistence farming) impacts on livelihoods, and Environmental Environmental Local NGOs ecosystem opportunities to diversify livelihoods, Management Plan Officer Alternative livelihood restoration programmes Community services) and recommend ways to enhance SLP Specialist Number of project beneficiaries Development Forums livelihood opportunities will be explored.

Loss of biodiversity Appropriate mitigation measures will Environmental Environmental Feasibility Identified offsets Local Government be established by an Environmental Management Plan Manager Management Plan (EMP) including Local NGOs bio-monitoring programmes. HR Manager Community Biodiversity Development Forums specialists

Closure and A closure and rehabilitation plan will Closure and SHEQ Manager Feasibility (plan Under the ESIA, a Conceptual Closure Plan was developed. Local Government be developed during the ESIA. This rehabilitation Rehabilitation Plan development) will help to minimise environmental HR Manager Update of the Closure and Rehabilitation Plan as the project and social liabilities associated with Closure and Closure progresses project closure. Rehabilitation specialist

Consultation and A SEP to manage consultation during SEP All managers On-going Development of a SEP detailing engagement strategies Local government the ESIA, and life of mine will be Engagement developed. Stakeholder Revisions to existing grievance procedure Traditional leaders

engagement Meeting minutes Local communities Booysendal North has a grievance specialist procedure, which will be revised for Number of grievances received and addressed the proposed Booysendal South Establishment of consultation forums Expansion Project. Booysendal will be required to develop Road safety Road Safety and SHEQ Manager On-going Monitoring and reporting on road safety incidents Traffic Department a Transport and Road Safety Transportation Management Plan, which will identify HR Manager Grievance management Police practical ways to ensure that the roads Management Plan Local Government are safe for citizens Local communities

Health The Social Impact Assessment SLP HR Manager On-going Development of a SLP detailing current and future community Local Government identified health related impacts

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Management Issue Response Resources Timeframe KPIs Partnerships Plan/s associated mainly with influx and the SLP Specialist development initiatives Local NGOs spread of communicable diseases Establishment of representative Community Development Community Forums Development Forums Meeting minutes Number of health related SLP programmes Number of health related SLP programme beneficiaries

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10. Review and Updating of Management Plan

This management plan will be reviewed periodically (at least every three years) as well as following any incidents on site, changes in site operations or if any release/emission occurs over a prolonged period, which requires a change of the management plan. Any updates will be agreed between the SHEQ Manager, the General Manager of Booysendal and the relevant local authorities.

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