Sustainable Development Report 2016
Supplement to the Integrated Annual Report 30 June 2016
AT A GLANCE Implats Sustainable Development Report 2016
Our values
WE RESPECT O All our stakeholders, including: O The principles of the UN Global Compact – Shareholders O The laws of the countries within which we operate – Employees and their representative bodies O Company policies and procedures – Communities within which we operate O Our place and way of work – Regulatory bodies O Open and honest communication – Suppliers and customers O Diversity of all our stakeholders – Directors and management O Risk management and continuous improvement – All other interested and affected parties philosophies
Our vision is to be the world’s best platinum producing company, delivering superior returns to stakeholders relative to our peers.
Our mission is to safely mine, process, refine, recycle and market our products at the best possible cost ensuring sustainable value creation for all our stakeholders.
Our purpose is to safely and responsibly produce platinum group metals (PGMs) in order to make a meaningful contribution to the sustainability of our planet. PGMs are environmentally friendly “green” metals, which ensure cleaner air through effective emission control and are also used in electronics and electro-chemical processes, in the medical and dental fields and increasingly in the development and use of fuel cells.
WE CARE WE STRIVE TO DELIVER O For the health and safety of all our stakeholders O A safe, productive and conducive working environment O For the preservation of natural resources O A fair working environment through equitable and O For the natural environment in which we operate competitive human capital practices O For the socio-economic well-being of the communities within O On the development of our employees which we operate O Positive returns to our stakeholders through an operational excellence model O On our commitments to all stakeholders O On our capital projects O Quality products that meet or exceed our customers’ expectations
AT A GLANCE Implats Sustainable Development Report 2016 \ PAGE 1
Contents
AT A GLANCE SOCIAL CAPITAL AND LICENCE TO OPERATE Our approach to reporting 2 Our strategic approach to maintaining our social licence Summary performance data 3 to operate 64 Our social and economic value added 65 Investing in community development – South Africa 67 Investing in community development – Zimbabwe 77 OUR APPROACH TO CREATING VALUE Legal compliance 80 Statement by chairperson of STR committee 4 Respecting human rights 81 Who we are – what we do 6 Our business model 8 Summary of the influences to the Group strategy 11 CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS CEO’s statement 12 Our strategic approach to managing impacts and The challenging business context 16 conserving natural resources 84 Stakeholder review and mapping 18 Water stewardship 86 Responding to stakeholder interests 20 Climate change and energy management 89 Identifying our material sustainability focus areas 22 Air quality management 92 Our material sustainability focus areas 26 Managing our waste 94 Our business strategy 27 Land management and biodiversity 95
OUR GOVERNANCE AND MANAGEMENT APPROACH APPENDIX Our sustainable development management approach 32 Responding to the mining charter 98 Promoting ethics and good governance 35 Responding to the PFA 104 Responding to the NDP 108 Our performance data 110 SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE The GRI and UNGC statement 127 Employee and contractor safety 38 Independent assurance report 128 Health and well-being 46 Glossary 132 Attracting, retaining and developing talent 50 Contact details and administration IBC Investing in employee relations 55 Promoting diversity and transformation 58
We have incorporated the following symbols indicating our strategies and objectives through this report:
Strategies
SOCIAL LICENCE
Maintaining Maintaining our Maintaining strategic Maintaining prudent Conserving cash, operational excellence social licence to optionality and positioning investment through especially while metal and safe production operate the Group for the future the cycle prices remain depressed
Feedback We welcome your feedback to make sure we are covering www.implats.co.za Refers readers the things that matter to you. Go to www.implats.co.za to information or email [email protected] for the feedback form, available elsewhere or scan the code on the left with your smart device. in this report
AT A GLANCE Implats Sustainable Development Report 2016 \ PAGE 2
Our approach to reporting
This report reviews our approach to addressing social, economic and environmental issues that are seen as having a material impact on the long-term success of our business.
Boundary and scope includes a review of our contribution in and their Mining Sector Supplement, This report provides information relating terms of: as well as Implats’ internally developed to our sustainable development policies, O The Mining Charter which governs the reporting guidelines. We have provided a practices, performance and prospects mining sector in South Africa and separate, more detailed response to the for the financial year 1 July 2015 to Indigenisation Policy in Zimbabwe criteria of the GRI G4 Guidelines in a 30 June 2016. The report covers the O National developmental priorities – as detailed online GRI response table, following operations over which we have defined in the South African National available at www.implats.co.za/ direct management control and for Development Plan implats.Annual-reports.asp. As a which we set and implement policies O Local sector-specific commitments in signatory to the United Nations Global and standards: Impala, Marula, Zimplats South Africa – as provided in the Compact (UNGC), we have also used and Mimosa. Our last report was Framework Agreement for a the UNGC’s Advanced Level reporting published in September 2015 covering Sustainable Mining Industry, entered criteria in our UNGC Communication on the 2015 financial year. No changes to into by organised labour, organised Progress. the boundary and scope have been business and government applied in the year under review. Independent assurance While the report is of interest to all A third-party assurance provider, KPMG, Materiality and target our existing and prospective has independently assured selected audience stakeholders, it is focused primarily on performance information. The scope of The report reviews our approach to addressing the interests of socially the assurance, the selected performance addressing those social, economic and responsible investment (SRI) analysts information and the independent environmental issues that are seen as and investors, as well as sustainability statement of assurance are provided having a material impact on the long- professionals. Our approach to on page 128. term success of the business, the identifying the issues we regard as being sustainability of the economy, the most material to Implats in 2016 is Contacts environment and the communities in described on page 22. Please address any queries or which we operate, or that are important comments on this report to the to key stakeholders. This year’s report Reporting standards corporate relations department. Our sustainability reporting criteria has Email: [email protected] been compiled in accordance with the Tel: +27 11 731 9000 GRI’s G4 Guidelines (Core compliance)
Additional information regarding Implats is provided in the following reports, all of which are available at www.implats.co.za
Integrated Report Sustainable Development Report O Information about our stakeholders, their O Detail on material economic, social material matters, risk, strategy and and environmental performance performance O GRI G4 core compliance O O Information about our operations, mineral Integrated Annual Report 2015 Internal reporting guidelines in line with Sustainable development report 2016 reserves and mineral resources, business the UN Global Compacts Supplement to the integrated annual report 30 June 2016 context, environment, business model, O Independent assurance report and intellectual capital contained in our risk and remuneration processes O Overall assurance provided explained
Mineral Resource and Mineral Reserve Statement O Conforms to the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC)
Mineral Resource and Mineral Reserve Statement 2016 O Conforms to the Australasian Code for the Supplement to the integrated annual report 30 June 2016 Reporting of Mineral Resources and Ore Reserves (JORC) Online O Been signed off by the competent persons O Direct access to all our reports O Our website has detailed investor, sustainability and business information O Detailed remuneration report on web
AT A GLANCE Implats Sustainable Development Report 2016 \ PAGE 3
Summary performance data
Implats is one of the world’s foremost producers of platinum and associated platinum group metals (PGMs).
Production data** 2016 2015**** 2014**** Variance % UV Tonnes milled (000t) 18 426 16 024 13 916 15 U Refined platinum (000oz) 1 438 1 276 1 178 13 U PGMs (000oz) 2 908 2 618 2 370 11 U Revenue (Rm) 35 932 32 477 29 028 11 U Operating cost (Rm) 21 691 19 074*** 14 613 Capital invested*** (Rm) 3 560 4 287 4 345 17 V Income tax paid (Rm) 883 401 714 120 U Unit cost* per oz Pt (Rand) 21 731 22 222 19 430 2 V People 2016 2015 2014 Variance % Employees in service Own***** Number 38 189 40 019 40 238 5 V Contractors***** Number 13 221 14 729 15 602 10 V Turnover % 8 55 60U HDSA in management % 53 51 50 4 U Safety rates FIFR Pmmhw 0.091 0.058 0.043 57 U RIFR Pmmhw 3.83 2.63 2.68 46 U LTIFR Pmmhw 6.49 5.27*** 6.10 23 U TIFR Pmmhw 12.31 9.78*** 11.90 26 U Operations and shafts with one million or more fatality-free shifts Number 16 11 4 45 U Employees’ health People on wellness programmes Number 6 891 6 140 6 286 12 U Total people on ART Number 4 843 4 429 4 276 9 U TB cases Number 171 304 268 44 V Medical incapacitation Number 377 505 331 25 V The environment 2016 2015 2014 Variance % Energy intensity (GJ/tonne milled) 0.9405 0.9946 1.0344 5 V
Total direct CO2 intensity (t/tonne milled) 0.2072 0.2091 0.2182 5 V
Total direct SO2 intensity (t/tonne milled) 0.0017 0.0017 0.0022 0 (Mℓ consumed/ Water intensity tonne milled) 0.0025 0.0025 0.0025 0 (total water recycled Mℓ/total water % water recycled consumed Mℓ) 41 36 39 15 U Social capital 2016 2015 2 014 Variance % SED expenditure (RSA) (Rm) 105 83 71 27 U SED expenditure (Zimbabwe) (US$m) 4.7 5.1 8.9 8 V Housing and living conditions expenditure (RSA) (Rm) 236 228 261 4 U Housing and living conditions expenditure (Zimbabwe) (US$m) 1 61583V UV Improvement UV Deterioration * Excluding share-based payments — Unchanged ** Production costs exclude Mimosa and Two Rivers and hence impact intensity factors *** Restated numbers **** Ramp up and strike impacted ***** Includes Mimosa employees and contractors attributable to Implats Variance 2016 versus 2015 OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 4
Statement by the chairperson of the social, transformation and remuneration committee
We are committed to promoting sustainable social and economic transformation through constructive collaboration with our stakeholders.
As chair of Implats’ social, transformation and remuneration (STR) committee, it gives me pleasure to present this year’s Sustainable Development Report. This is my first full year on the board of Implats, where it has been a privilege to serve as the chairperson of this committee.
Committee responsibility My primary responsibility is to ensure the committee delivers on its advisory and oversight functions relating to Implats’ activities on social and economic development, remuneration, corporate citizenship, environmental management and labour and employment issues. In this report, we review Implats’ activities and performance and assess how the Company is delivering on its mission to ensure sustainable value creation for all its stakeholders.
Given the challenging socio-political environment – characterised by high levels of joblessness, persistent income inequality and increasing evidence of community frustration – it is important that businesses play an active role in finding solutions to societal challenges. We need to work with our partners in business, the government, labour and local communities to build an inclusive economy that provides opportunities for social mobility, facilitated by equitable access to jobs, education and health. We equally do not take lightly the duty of care we owe to protecting the natural environment in which we operate. We strive to mitigate our environmental impacts by retaining fauna and flora, rehabilitating land disturbed by our operations, and ensuring responsible waste management and prudent use of water and energy. Ensuring the social, economic and environmental viability of our host communities and the broader economy is critical to safeguard the continuing viability of our business.
Amid growing pressure on companies to demonstrate greater social return, the South African platinum sector continues to face tough operating conditions typified by low commodity prices, increasing costs associated with deep-level mining, the depreciation of Mpho Nkeli the rand on the one hand and a demand Chairperson, social, transformation and remuneration committee for higher wages on the other. In BSc Environmental Science (NUL), MAP (Wits), MBA (GIBS) protecting our social licence to trade, OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 5
Implats needs to ensure responsible Community development Implats has partnered with passionate behaviour within the organisation and As a new board member, I have been entrepreneurs across communities who towards all its stakeholders. heartened by what I have seen on the have seized opportunities presented to ground and what I have heard from them. Caring for our employees stakeholders regarding Implats’ One of the areas where the Group has approach to engaging with and A key imperative facing all South African made a particularly impressive supporting the socio-economic companies is the need to recognise and contribution is in providing quality development of neighbouring address the unique challenges South housing and improved living conditions communities. Africa faces due to its difficult history. for employees and their families. Over Driving socio-economic transformation the past eight years the Group has Complementing our emphasis on within the Implats work environment and invested more than US$100 million to accommodation and living conditions, across its value chain remains a priority provide more than 1 400 company the communities in which we operate and informs much of the Group’s houses for our employees in Zimbabwe. continue to benefit significantly from the engagement with the government, In South Africa it is heartening to see implementation of our operations’ social communities and other stakeholders. how far the mining sector as a whole and labour plans, which seek to address Implats goes beyond compliance in this has progressed in this area. The Group identified community needs by focusing area and is committed to engaging has invested more than R3.7 billion in on infrastructure, access to clean water, actively with the government and accommodation surrounding its South health, education and employment. regulators to develop frameworks to African operations, providing almost drive the transformation agenda. I have 3 000 housing units, converting mining Outlined in more detail in this report are been encouraged to see the leadership hostels into 5 243 single units and the numerous initiatives Implats is taking role Implats has played in industry 308 family units and securing substantial to stimulate economic opportunities in its discussions on transformation and how land for future housing development. neighbouring communities and to ensure the Group has sought to strengthen its By providing the opportunity for home responsible management of scarce relationships with the government ownership to mining employees, which shared local resources, such as water through frank and meaningful in turn opens access to local schools and energy. The Group’s initiatives engagement, particularly in difficult areas and health services for community relating to skills development, local where there may be diverging views on members and their families, the Group is procurement, supplier and enterprise solutions. making a real difference in offering a development and its investments in source of dignity with economic community infrastructure in health and Appreciation opportunity and helping to address education, are having a measurable I express my thanks to management and some painful legacies. impact on individuals and communities my colleagues on the STR committee for in South Africa and Zimbabwe. their advice throughout the year, which Employee health and safety is a top has proved invaluable in ensuring the priority. The Group’s commitment to However, it is clear that we continue to committee delivers on its oversight and ensuring a safe and healthy working face challenges in these communities. advisory duties. I have witnessed environment has been evidenced by the Increasingly, there is a fine line between management living and driving the visible leadership demonstrated by the the services local authorities should be values of “Respect, Care and Deliver”, to Group chief executive officer and the providing and those that communities ensure that Implats develops as a fair, executive team and by the investments are now expecting from companies such ethical and sustainable organisation. made in equipment and infrastructure as Implats. With these shifting aimed at providing a safe physical expectations and the blurring of the As an Implats stakeholder, I encourage environment across all Group operations. expected roles of companies and local you to share your views on Implats’ While this has resulted in the notable authorities, businesses may come under activities related to delivering on its safety milestones achieved at most added pressure. Managing these strategic commitment to minimise operations, these were overshadowed expectations requires us to strike a negative social and environmental this year by the 11 tragic fatalities at difficult balance between respecting and impacts and to promote meaningful three operations. Our thoughts are with upholding the roles and responsibilities social and economic transformation. the families, friends and colleagues of of local government, while seeking to Implats is committed to building on its each of the deceased. allay the growing frustrations of current positive contribution to the increasingly vocal local communities. communities and people with which it It was troubling to learn that the root engages and I encourage you to engage cause of each of these incidents was Stakeholder collaboration with us to ensure mining leaves a lasting non-compliance to standards and safe While companies mining the country’s positive legacy in the region. production rules, in some cases at a resources have a particular duty of care supervisory level. The Group is taking to their communities and to the appropriate disciplinary action and is environment, it is important to recognise implementing remedial actions to prevent and acknowledge joint responsibility – Mpho Nkeli repeat incidents. The strong safety shared between the government, Chairperson, social, transformation and performance demonstrated by most of business and each of us as individuals remuneration committee the Group’s operations this year shows – in finding solutions to our collective what can be achieved in the quest for challenges. This has worked well where zero harm. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 6
Who we are – what we do
Impala Platinum Holdings (Implats), one of the world’s foremost producers of platinum and associated platinum group metals (PGMs), is listed on the JSE Limited (JSE) in South Africa and sponsored a level 1 American Depositary Receipt programme in the United States of America. Its head office is in Johannesburg, South Africa. South Africa Marula Impala Two Rivers Attributable Mineral Resources of 194Moz Pt (%) 77 700 ounces 626 900 ounces 185 900 ounces as at 30 June 2016 6 of platinum in concentrate of refined platinum of platinum in concentrate 5 Contribution to Group Pt production Contribution to Group Pt production Contribution to Group Pt production 6 2 5.4% 44% 12.9% 49 Life of mine > 30 years Life of mine > 30 years Life of mine > 30 years Average current depth 320m Average current depth 850m Average current depth 350m 28 SUSTAINABILITY INDICATORS SUSTAINABILITY INDICATORS SUSTAINABILITY INDICATORS 4 O 0 fatality O 9 fatalities O 0 fatalities O FIFR 0 O FIFR 0.102 O FIFR 0.000 O Zimplats O 47% decrease in LTIFR O 33% increase in LTIFR O 5.5% decrease in LTIFR O Marula O 19% decrease in TIFR O TIFR 27% increase O Impala O 52% increase in VCT interventions O 10% decrease in VCT interventions O Mimosa O 12% increase in ART uptake O 9% increase in ART uptake O Afplats O R3 million spent on socio-economic O R94 million spent on socio-economic O Inkosi and Imbasa development* development* O Two Rivers
* The R7 million balance in socio-economic development expenditure for South Africa is attributable to Afplats.
Zimbabwe Zimplats Mimosa We produce around 25% of the world’s supply of platinum with a workforce of approximately 51 400, including 289 800 ounces 119 700 ounces 13 200 contractors, none of which are legally recognised as of platinum in matte of platinum in concentrate self-employed. The organisation does not have seasonal Contribution to Group Pt production Third-party contribution to Group Pt production employees. A detailed breakdown of our workforce can be 20% 8.2% found on page 114 of this report. In the financial year ended Life of mine > 30 years Life of mine >15 years 30 June 2016, the Group produced 2.90 million ounces of PGMs (2015: 2.61 million ounces), which included Average current depth 150m Average current depth 200m 1.438 million ounces of platinum (2015: 1.276 million ounces). SUSTAINABILITY INDICATORS SUSTAINABILITY INDICATORS Our markets are in South Africa, Japan, China, the US and O 0 fatalities O 2 fatalities O FIFR 0.000 O FIFR 0.246 Europe. O 34% decrease in LTIFR O 327% increase in LTIFR O 24% decrease in TIFR O 405% increase in TIFR O 31% decrease in VCT O 16% decrease in VCT PGMs are primarily platinum and the associated by-products – O 9% increase in ART O 5% increase in ART palladium, rhodium, ruthenium and iridium – which usually occur O O 14% increase in SO2 US$2.8 million spent on socio-economic O US$6.1 million spent on socio-economic development in association with nickel and copper. While PGMs are a development relatively rare commodity (only about 500 tonnes are produced annually, of which less than 200 tonnes are platinum), they are playing a progressively important role in everyday life, in goods we use daily, in the processes required to produce these goods and in auto-catalytic converters for emission control. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 7
Limpopo
Marulaa Zimbabwe
Impala Twoo RiversRive South Africa Rustenburgburururgg ImpalaImIm Refineries North West Mpumalanga Implats is structured around six main operations: Impala Free State KwaZulu-Natal Rustenburg, Zimplats, Marula, Mimosa, Two Rivers and Impala Refineries – with Northern Cape a total of 24 underground operations. Operations are located on the Bushveld Eastern Cape Complex in South Africa and the Great Dyke in Zimbabwe, Western Cape two of the most significant PGM-bearing ore bodies in the world. The structure of our operating framework allows for each of our operations to establish and maintain close relationships with their stakeholders while operating within a Group- wide approach to managing Mashonaland Central the economic, social Mashonaland West and environmental aspects of sustainability.
As at 30 June 2016 our Zimplats Mashonaland major shareholders were East Coronation Fund Managers (15.07%), the Public Matabeleland North Midlands Manicaland Investment Corporation (PIC) (11.02%), Investec Asset Management (10.01%), Allan Mimosaa Gray (7.94%) and Royal Masvingo Bafokeng Nation (RBN) at Matabeleland 6.29% with the balance of South the shares held by various public and non-public shareholders. (Refer to the annual financial statements.) OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 8
Our INPUTS business g b OUR CAPITALS tron model Improve efficiencies S
through operational
excellence and safe
production - Our workforce (Various business plans on a page) - Skills and training Human - Social, ethics, transformation and remuneration practices
InvestmentI through - Operating cashflow Financial - Equity funding the cycle - Debt funding Impala
- Mining rights, reserves infrastructure and Manufactured resources - Plant, property and equipment - Utilities MINES
CONCENTRATORS - Ethics and human rights - Employee relations Social and - Organised labour relationship - Community relations - Social licence to operate SMELTERS
- Knowledge and procedures BASE METALS REFINERY - Risk and accounting systems Intellectual - R&D and IP - Geological models - People, HR, governance PLATINUM METALS REFINERY and safety systems
SOCIAL LICENCE - Natural resources (land, air, water and biodiversity) Natural - Mineral Resources and Mineral Reserves How we create value How we create
Maintain our social licence to operate (MPRDA compliant) OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 9
PROCESS GROUP STRATEGIC RISKS ce sheet (cash ex balan ceeds debt Depressed PGM ) S T R A T E basket prices G I C R E S Cash P O N conservation S E Non-delivery of production S (ongoing cost reduction opportunities and capital cost controls) and productivity targets at Impala Rustenburg
Weak balance sheet and cash flows (liquidity)
World-class refining Ability to grow andd Excessive taxation and assets and capability maintain levies at Zimbabwean operations IRSIRS MinesMines
ZIMPLATS Revenue impact of Section 54s
A deterioration in safety performance
MARULA Unavailability of secure Group and reliable power in South Africa and components Zimbabwe and third party MIMOSA Employee relations refining through climate use of Impala’s Maintaining a social spare capability licence to operate
TWO RIVERS
OUTPUTS
Platinum Investment through the cycle PalladiumPalladdiium (Impala 16 and 20 Shaft complexes) RhodiumRhhoddiium Ruthenium IridiumIrrididiium GoldGld and d silver il NickelNNiickkell powderpowdder orr briquettesbrrique CobaCoCobaltbalt po powdepowderder Copper cathodecathodess Maintain optionality and Chrome ore position for the future (Impala 17 Shaft complex; Afplats Shaft complex and Zimplats new portals) OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 10
POSITIVE AND NEGATIVE OUTCOMES FINANCIAL YEAR 2016 OUTCOMES
Well trained and skilled workforce Injuries and fatalities spent on training and t R512m Group FIFR 0.091 t Occupational health (NIHL) development (Zimbabwe US$4.9m) Skilled leaders and employees Group LTIFR 6.49 t Number of employees Wage bill of t Economic empowerment of our people including contractors R10 708m t Equity and transformation 51 410**
t Shareholder and investor returns Financial health of Company Procurement of R8.1bn in South Africa t Reinvestment of profits R2 731m net cash generated from businesses and suppliers t Contribution to tax revenues and from operating activities (US$336m at Zimplats in Zimbabwe) economic growth for country South Africa Total liabilities All taxes and royalties paid in R2 137.7m (in Zimbabwe US$45.9m) R26 560m
PGMs produced Maintenance expenditure on property, plant and equipment t Products that generate revenue and improve the environment 2 908Moz R1 825m t Reinvestment in shafts, side stream beneficiation Revenue generated R35 932m
In-migration and constraints on t An investment of R104.6m* in Local procurement spent in South Africa infrastructure and social amenities South Africa in our surrounding R6.1bn with companies of >25% t Informal settlements communities (US$4.7m* in Zimbabwe) BEE ownership t Labour and social unrest Social investments t Small business Improved living conditions R236m spent on housing in SA t Education, health and housing supported (in Zimbabwe US$1.1m spent on housing)
Spend on modernisation t Continuous improvement – safe and R174m efficient operations (safety technical initiatives) t Development of IP Business improvement t Group employee turnover rate Capital expenditure t R&D innovation 8.2% R3 560m
Generation of waste Energy intensity t CO2 intensity (Scope 1) Pollution (air, water, land) and climate GJ/tonne milled t tonnes/tonne milled 0.9405 change 0.2072 Land availability and disturbance t Water intensity t Conservation of natural resources through Direct SO2 intensity 41% of total water 0.0025Mℓ/tonne milled consumed is recycling, rehabilitation 0.0017 tonnes/tonne milled recycled
* Community investment spend excludes housing. ** Includes Mimosa employees and contractors attributable to Implats. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 11
Summary of the influences to the Group strategy
STRATEGY SUPPORTED BY
Maintaining O Safety strategy operational O Cultural values founded on Respect and Care excellence O Health strategy and safe O People strategy production O Operational delivery and performance management
Conserving cash,c especially O Effective planning and mineral resource management while metal O Rationalisation and prioritisation of capital allocation across the Group prices remain O Intensive cost and productivity focus depressed
O Meaningful and sustainable social investment in our communities O Delivering on Social and Labour Plan (SLP) commitments O Adhering to commitments in the President’s Framework Agreement SOCIAL LICENCE Maintaining O Aligning and positioning the organisation in terms of the National our social Development Plan licence to O Respecting human rights and interest of all stakeholders operate O Abiding by the laws of the countries in which we operate O Adherence to all relevant environmental legislation O Preservation of natural water resources and water quality O Optimisation of energy efficiencies and reduction of carbon
O Cost optimisation at all operations Maintaining O Investment in new technology: modernise to improve safety and prudent production investment O Development of alternative energy sources linked to our metals through O Optimising of mining efficiencies through productivity programmes the cycle O Ramping up of new shafts; optimisation of mid-life shafts; closure of old, unprofitable shafts
O Repositioning and modernising Impala Rustenburg into a smaller, more Maintaining concentrated mining operation with access to new, modern shaft strategic complexes, with new Merensky ore reserves producing at much higher optionality mining efficiency and lower unit cost aand positioning O Targeted interventions to improve mining efficiencies and reduced the Group embedded fixed costs for the future O Deferring capital intensive projects to conserve cash and protect the balance sheet OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 12
CEO’s statement
I am pleased to present Implats’ 2016 “The difficult operating environment Sustainable Development Report. This underlines the strategic significance of report provides a comprehensive review of the Group’s strategy and performance societal issues on our business and relating to our most material social, economic and environmental impacts. highlights the importance of maintaining a It outlines the key activities we are undertaking to address some of the strong focus on our sustainability.” societal challenges facing the regional mining sector and the broader economy.
In the context of greater volatility in global and regional markets and communities, the responsibility of business to pursue socially-inclusive business models and to mitigate negative societal impacts has become increasingly apparent. To this end, I encourage all our stakeholders to read this report and to give honest feedback on our performance and our disclosure.
This has been another difficult year in which we have been faced with a subdued global PGM market, a continuing rise in unit costs and a challenging socio-political operating context with increased stakeholder expectations across a range of fronts. The difficult operating environment underlines the strategic significance of societal issues on our business and highlights the importance of maintaining a strong focus on our sustainability. Doing so is integral to realising our vision of being the world’s best platinum- producing company that delivers superior returns to stakeholders. I will briefly review our performance over the past year on each of our material sustainability focus areas and reflect on how we are delivering on our commitment to the safe and responsible production of PGMs and to making a meaningful contribution to our communities.
Safe and effective people who respect and care Employee and contractor safety It is with deep sadness that I report the loss of life of 11 employees this year as a result of seven incidents at three of our operations. This is a tragic loss for all of us and my heartfelt condolences are extended to the families and friends of Erick Mukazi, Oraile John Sethibang, Terence Goodlace Jerome Nkosiphendule Zweni, Charles Chief executive officer – NHD in metalliferous mining, BCom, MBA Teketai, Vuyani Jackson Kajani, Stephen OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 13
Johnny Kgari, Mosala George Moloele, Our refineries won the chemical set of sector-wide health and safety Tshotlego Rantisiripana Moyo, Mosielele industry’s Responsible Care award, milestones. We are already meeting Johannes Sesimane, Ohemile Moses recognising our leading performance on the sector-wide health milestone of Maamogwa and Tanki Samuel Lepitikoe. a range of indicators relating to safety, reducing the TB incidence rate on It is unacceptable that we are still having health and the environment. mines to below the national TB incident fatalities at Implats despite the significant rate by December 2024 – our incidence expenditure and effort we have put into Our analysis of fatal and lost-time injuries rate of 447 per 100 000 employees safety initiatives, technology and training demonstrates that human failure remains is well below the national rate of over the past years and the exemplary a contributing factor. To address this, our 840/100 000. This year we recorded safety performance at most of our priority remains on driving the person 171 new cases of TB across our operations. The fatal incidents – which and behavioural pillars of our safety operations, representing a 46% occurred at Impala Rustenburg 1 Shaft strategy, with the aim of creating the decrease on the 304 cases the previous and 14 Shaft, and Mimosa – have shown right safety culture to achieve and year. Although we have increased the a collective failure to care for ourselves maintain zero harm. We will continue to speed and accuracy of diagnosing and for our fellow workers. These drive a shift from the prevailing TB resistance through PCR laboratory incidents cause significant harm to “dependent” safety culture towards an testing, the growth in multiple drug- individuals and families and to the “interdependent” safety culture through resistant TB is a concern. Our HIV continuing viability of our business, with effective safety leadership and prevalence rate is estimated at 23% negative consequences for all those that engagement with employees. We remain based on available data for the Impala depend on us. resolute to see a further step change in Rustenburg operation. This year, a total our safety performance and ultimately of 6 891 employees participated in Seven of these fatalities occurred in two achieve our goal of zero fatalities. Company-funded and managed tragic incidents: a fire in January 2016 at HIV-wellness programmes, of whom Impala Rustenburg 14 Shaft and a fall of Health and well-being 4 843 received antiretroviral therapy. ground incident in May 2016 at Impala We have made further progress in We are committed to delivering on the Rustenburg 1 Shaft. My personal managing the principal health risks tripartite targets through our continuing gratitude and appreciation is extended to facing our employees, namely: focus on embedding an effective culture the neighbouring mining community, the pulmonary tuberculosis (TB), the in the organisation, supported by our relevant government departments and associated human immunodeficiency investment in the physical environment. the leadership of the respective unions virus (HIV) co-infection and the for their support during these incidents. occupational health risk of noise induced Investing in employee relations I am also grateful for the many at Impala hearing loss (NIHL). We have also The importance of maintaining Rustenburg who worked tirelessly continued to place a strong emphasis on constructive management/employee through these difficult times. managing chronic medical conditions relations received prominence given the such as hypertension and diabetes. events in the South African platinum It is disappointing to see how these sector over the past few years. We have incidents have impacted the Group’s This year, 61 cases of NIHL were placed a strong focus on fostering a lagging performance indicators. This diagnosed and submitted for new, dynamic and sustainable year, the fatal incident frequency rate assessment for compensation, partnership with our employees and their was 0.091 per million man-hours compared to 49 in 2015. All patients representative bodies, with the goal worked, up from 0.058 in 2015. The diagnosed with early signs of NIHL on of becoming the best employer in total injury frequency rate – a measure of screening audiograms have been the sector. all recorded injuries, including fatalities, counselled and are being monitored. lost-time injuries, and medical treatment Another potential occupational illness in In addition to our engagements with cases (including first aid cases) – the mining sector is silicosis. Fortunately union representatives through employee increased to 12.31, up from 9.78. the risk of contracting silicosis on our representative structures, we have taken operations is extremely low due to the measures to improve the communication While acknowledging this disappointing low levels of alpha quartz in the rock directly between management safety performance, it is important to mined at our operations. During the representatives and employees at all recognise the safety achievements and year under review, we diagnosed levels. We have had good results in milestones achieved across most of our 11 employees and four contractors at implementing a structured, two-way other operations. During the course our Rustenburg operations, all of whom communication model that cascades of the year, for example, Zimplats endured high risk gold mining exposure information from weekly executive celebrated five million fatality-free shifts, prior to working at our mines. No management meetings all the way Two Rivers achieved three million previously unknown occupational through to half-level shaft-based fatality-free shifts, Rustenburg’s 20 Shaft illnesses were detected over the year. meetings, with weekly feedback to the and 11C Shaft each achieved two million executive. This is complemented by fatality-free shifts, while six other shafts In November 2014, at the tripartite Mine periodic employee surveys and achieved one million fatality-free shifts. Health and Safety Council, we agreed a engagements through videos, briefings, OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 14
CEO’s statement
general manager feedback and daily, participation of women in our mining This year, our South African operations weekly and monthly meetings at shaft training programmes: this year, 33% of invested R105 million in socio-economic level. We have also been implementing a mining graduates were women. At development projects, focusing primarily robust training process to enhance the Zimplats, women accounted for 33% of on infrastructure, health, education and knowledge, skills and attributes of all surface engagements, far surpassing community empowerment initiatives, managers, employees and their our target of 10%. The number of with an additional R236 million spent on representatives. women in mining is improving year on improving accommodation and living year, with females currently constituting conditions of our employees. Our social As an integral part of the voluntary 7% of the total Zimplats workforce. programmes are identified in separation and retrenchment process at collaboration with community our Rustenburg operation, we have In Zimbabwe, despite meeting the representatives, the local municipality offered all affected employees the recently announced Presidential and traditional authorities and are opportunity to receive training in a guidelines which stipulate that mining integrated within the social and labour portable skill aimed at equipping them companies will be deemed indigenised if plans (SLPs) for each of our operations. for work opportunities in different local spend is at least 75% of annual Our Zimbabwe operations spent sectors, or to become self-employed revenue, we have continued US$4.7 million on socio-economic entrepreneurs. It has been pleasing to engagements with the government on development projects with an additional see the uptake by our employees and indigenisation. Discussions include the US$1.1 million on employee housing. the undoubted longer-term value that implementation plan for an employee this training has provided. share ownership scheme and a Our investment in accommodation and community share ownership scheme. living conditions of employees is perhaps Promoting diversity and We will continue to engage with the the most significant contribution to the transformation minister for youth development, well-being of our communities and Our focus on promoting employee indigenisation and economic employees and an area where we are diversity and socio-economic empowerment to achieve mutually recognised as leaders across the sector. transformation is driven by an acceptable solutions. Since 2008, we have invested appreciation that a more diverse R3.7 billion on improving housing and organisation is more competitive. We Social capital and licence to operate living conditions in our South African have made further progress in promoting A key challenge facing the South African operations and we have committed a equitable representation, particularly at mining sector is the increasing protest further R1 billion, with the goal of having board and senior management level, action within many of our neighbouring at least 50% of our workforce at the where we remain well positioned relative communities. With the slow pace of mines residing in formal housing with to our competitors. service delivery, reduced employment their family by 2020. Following the opportunities and a rising cost of living, successful completion last year of phase At our South African operations, at mining companies face a crisis of one of the Platinum Village housing year end we had achieved and in most expectations in terms of jobs, development, with 503 standalone cases exceeded all Mining Charter infrastructure, service delivery and houses sold and occupied and 54 targets for levels of historically procurement opportunities – at a time walk-up apartments for rental, we disadvantaged South Africans (HDSA) in when the sector has been hit by flat commenced phase two in October management. Our efforts in driving commodity prices and increasing 2015. By year end, 80 houses had been transformation have been recognised production costs. The resultant completed, 67 of which were fully externally – Implats came second out of community activism in our communities, allocated, and we are on track to 131 companies in the Department of particularly among the unemployed complete the second phase by the Labour’s inaugural EE Awards launched youth, is compounded by a failure of end of 2017. We have recently initiated by the Commission for Employment many of the traditional engagement the second phase of our hostel Equity (CEE). Awarded in October 2015, structures, heightening the pressure on conversion programme, providing the judging process included site visits mining companies to ensure effective 44 new family units from newly by a panel of experts from the communication channels with our converted single occupancy residences. Department of Labour. communities. We have taken further measures to We have continued to encourage female In seeking to build and maintain our tackle the deeply troubling problem representation at all levels. At our South social licence to operate, we have of employee indebtedness and African operations, by financial year end, focused on driving legislated the unscrupulous activities of loan we had 137 women in management, transformation requirements, investing in sharks. Last year we approached representing almost 20% of total targeted community interventions and the courts to protect the rights of management, while overall women engaging proactively with community employees, as a result of which more representation in the workforce remains representatives and government officials than 370 emolument orders were found at 11%. It is encouraging to see the at all levels. to be illegal, with almost R3 million of illegal debts being written off. The rule relating to automatic salary deductions OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 15
has been changed and we have management, water wastage, Conclusion provided employees with debt hydrocarbon management and The challenges that the Group, the counselling, financial literacy training emissions to the atmosphere from the mining sector and the region have faced and opportunities for financial security Rustenburg smelter. There were no over this past year have reaffirmed my through our contributions to retirement non-compliance notices, fines or belief that socially responsible behaviour funds, and by providing employees penalties issued to any of our operations and the pursuit of sustainable with the opportunity to invest in their during the review period. development are competitive imperatives own homes. for companies and should be recognised The strategic importance of water was as fundamental elements of a company’s Our social investment programme and highlighted during the reporting period, fiduciary responsibility. our investment in housing and living with rainfall in the Southern African conditions is supported by our region continuing to be below usual We have continued to work with the preferential procurement practices and levels. While we saw an increase in total Chamber of Mines, industry bodies, enterprise and supplier development water consumption over the year, we relevant government departments, activities. This year, in South Africa we maintained our unit consumption rate of political leaders, labour representatives spent R2.5 billion on procurement from water at 2.5 kilolitres per tonne of ore and community organisations to find local tiered suppliers, constituting 31% milled, a positive indication that we are solutions to some of the collective of the total procurement spend. In improving our water management societal challenges we face. An Zimbabwe, local suppliers accounted for practices. Following the BHP Billiton/Vale important objective has been to ensure 75% of Zimplats’ annual expenditure on Samarco collapsed tailings dam disaster full strategic alignment with the relevant goods and services, while Mimosa’s in November 2015, we conducted a national imperatives outlined in the indigenous procurement was 40% of review of critical control measures used President’s Framework Agreement for a total discretionary expenditure. to safely operate and manage the tailings Sustainable Mining Industry, Operation facilities at our operations in Rustenburg, Phakisa, the Mining Charter review Conserving natural resources and Marula and Zimbabwe. Management will process, and the Leaders’ Declaration minimising our impact continue to explore opportunities to on the Mining Industry Commitment to Mining companies have unavoidable improve current controls. Save Jobs. I believe that this review environmental impacts. It is critical demonstrates valuable progress in that we demonstrate responsible Given the challenges of energy security, meeting both the letter and the spirit of stewardship of the resources we rising energy prices and climate change these initiatives and shows our share with neighbouring communities. policy instruments such as the proposed commitment to contributing to the Through our policy commitments, carbon tax, we have maintained a strong growth and stability of the industry and we strive to integrate environmental emphasis on energy-efficiency projects the countries in which we operate. management into all aspects of and we have invested over R100 million the business, mitigating the direct on energy conservation programmes. In I am stepping down as CEO in environmental impacts of our operations South Africa we are working closely with December 2016, ending more than six and investing in local community Eskom and continue to participate in years with the Company. Leading environmental projects. various demand-side management Implats has been an incredible privilege, (DSM) programmes. In March, we yet also an extremely challenging job, Our principal environmental risks relate successfully launched our prototype particularly given the difficult economic, to pollution of soil, surface water, ground hydrogen fuel-cell powered forklift and political and socio-economic water and air quality, with the associated hydrogen refuelling station at our Springs environments during my tenure. I wish to impacts on health and safety. This year refinery. Developed in collaboration with thank all my colleagues for their loyalty we rolled out our five-tier incident the University of the Western Cape, the and smart hard work and I look forward classification matrix, enabling Department of Science and Technology to watching Implats grow as it takes standardised classification and reporting and Hydrogen South Africa Systems, advantage of the sustainable of environmental incidents across the this initiative forms part of a larger fuel development building blocks that have Group. Historical incidents have been cell strategy that aims to take the been put in place over a number of reclassified according to the new format. refineries off grid, switch all diesel forklifts years. The long-term prospects for the Systems are in place to investigate and and load haul dumpers to fuel-cell units PGM industry remain robust and Implats determine the causes of high-severity and establish a fuel-cell manufacturing will continue to play its role of sharing incidents and to address and close out hub in Springs. The development and value with society. all such incidents. During 2016, there implementation of this technology were no “major” (Level 5) or “significant” provides an important opportunity for (Level 4) environmental incidents. South Africa to play a role in reducing Terence Goodlace However, we recorded 51 “limited global greenhouse gas emissions and impact” (Level 3) incidents, none of has potential to stimulate local job Chief executive officer which resulted in any lasting harm to the creation, skills development and the environment and related predominantly longer-term platinum market. to effluent and contaminated water OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 16
The challenging business context
“In the context of subdued global PGM prices, platinum miners are facing heightened stakeholder expectations on a range of fronts.” An effective response is critical to ensuring our sustainability.
Globally, the mining and minerals sector South Africa and Zimbabwe and the sector remains largely dependent on the has faced a challenging few years region faces ongoing challenges in health of the diesel sector and has been characterised by socio-political electricity supply, pressure on water boosted by tightening emissions uncertainty, sluggish GDP growth rates availability following the El Niño drought, regulations. Concerns over the across developed and emerging markets rising input costs, depreciating local sustainability of diesel demand in – with the exception of China, resulting in currencies and a challenging labour Western Europe have proven to be depressed commodity prices, high levels relations environment. largely unfounded and sales remain of exchange rate volatility and rising robust. Diesel is a key part of automakers’ production costs. The reduction in These conditions have important strategy in meeting stringent carbon economic activity, rising geopolitical implications for our socio-political licence dioxide emissions targets. Issues around tensions and economic uncertainty in to operate, placing pressure on the the “cheat devices” have served to many regions, compounded by the Group to balance short-term stakeholder tighten emissions test protocols, recent Brexit vote in the UK, has expectations with current financial potentially boosting PGM demand in this heightened pressure on governments constraints and longer-term societal application. across the world. There has been value propositions. In South Africa, the increased pressure in particular on importance of being responsive to During the first half of the 2016 calendar resource-dependent middle-income societal challenges took on added year we saw a 1.4% growth in new sales countries, many of which are seeking to significance in the run up to municipal in the US auto industry, driven by low extract greater value from resource elections and the context of the 2016 gasoline prices, widespread credit companies in an effort to deliver on the wage negotiations, the first in three availability and an increase in leasing and social expectations of an increasingly years. employment gains. The sales in Western frustrated electorate. Europe and China were similarly Global PGM markets remain encouraging at growth rates of 8.4% and These pressures on the global mining flat 9.2% respectively. However, growing sector with impaired profitability and PGM prices remained subdued over the concerns about financial volatility in strained balance sheets have been year, on the back of negative sentiment these markets may result in the second accompanied by market challenges towards industrial commodities. At half being flatter, with estimated global specific to the platinum industry, as well financial year end, platinum was US$999 light-duty vehicle sales reaching 90 million as by the difficult operating conditions in per ounce, down from US$1 085 at the units in 2016 (88 million in 2015). South Africa and Zimbabwe. In the start of July 2015, while the other PGMs, context of subdued global PGM prices, specifically palladium and rhodium Platinum growth in the jewellery sector platinum miners are facing heightened trended downwards over the year. will be slower in China compared to stakeholder expectations on a range of January was especially tough for the recent years, partially offset by more fronts: neighbouring communities are PGM complex, with platinum, palladium rapid growth in the much smaller Indian making increasingly vocal demands for and rhodium prices all bottoming out at market. Industrial demand for platinum economic opportunities and improved the beginning of the calendar year. has grown gradually in the last five years local service delivery; governments Platinum gains since January have been and is expected to climb in line with continue to push for rapid driven largely by trading in line with gold, global GDP in the medium term. transformation, indigenisation and the weak dollar and some sponge employment creation; labour unions tightness rather than by any The global macro-economic picture exert pressure for higher wages and fundamentals. remains uncertain over the short term, jostle for power; while a cautious with the IMF projecting a modest 3.1% investment community maintains its call The automotive sector remains a key growth in global GDP for 2016. While for enhanced cost efficiencies and driver for platinum demand, accounting this is expected to strengthen from capital management to ensure survival for almost 40% of total demand since 2017, the IMF has stressed that through the low price environment. 2010, primarily for use in emissions uncertainty has increased and that risks Regulatory uncertainty continues in control catalysts. Demand growth in the of weaker growth scenarios are OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 17
becoming more tangible. US economic for mining companies to intervene where Job Losses. While each of these growth is projected at 2.5% for 2017, government has failed to deliver on initiatives includes important joint with slower growth levels anticipated for expectations. commitments aimed at addressing some the Eurozone and Japan (at 1.4% and of the underlying challenges facing the 0.1% respectively). China’s growth This growing “crisis of expectation” has sector and its communities, delivering on appears to be strengthening over the seen mining companies caught in the these commitments has been short term. This is on the back of crossfire between frustrated constrained by underlying tensions and policymakers' determination to regulate communities, local government mistrust among key representatives from the pace of slowdown after 25 years of representatives and traditional leaders business, government and labour. fast expansion. whose authority is increasingly being challenged, especially by the youth. Seeking collaborative Given the anticipated levels of global There are increasing expectations on solutions to the challenging economic growth we expect platinum mining companies to deliver economic operating environment demand to rise marginally (2% to 3%) benefits in the form of employment and The challenging societal context in South over the next five years, driven primarily procurement opportunities, skills and Africa and Zimbabwe highlights the by tightening emissions regulations. On enterprise development, education and importance for the mining sector to the supply side, global platinum supply health services and local infrastructure. partner with government, labour and civil will remain essentially flat over the next Mining companies are facing significant society in ensuring that mineral wealth is five years due to constrained capital risks in terms of ensuring business generated and shared more responsibly investment in growth and replacement continuity. Finding meaningful and sustainably. Recognising the need to projects, tough operating conditions in opportunities to deliver societal value, find collaborative solutions, Implats South Africa and Zimbabwe, low without undermining the roles and continues to work actively with the prevailing metal prices and the impact of responsibilities of local government, is Chamber of Mines, industry bodies, sustained price weakness over the past becoming a critical business imperative. relevant government departments, six years. The platinum market is labour representatives, political expected to remain in a significant deficit Following the labour disruption across representatives and community over the short to medium term. the South African platinum sector in organisations to find solutions to the 2012 to 2013, business, government collective challenges. We have sought to Changing community and and labour have engaged on various ensure strategic alignment with the political expectations fronts with the aim of ensuring the relevant national imperatives outlined, for The challenging PGM market has been sustainability of the mining sector and its example, in the NDP and the framework accompanied by growing frustration and continued contribution to the country’s agreement for peace and stability in the activism across many mining economic growth and development, as mining industry. communities. Persistent levels of outlined in the National Development socio-economic inequality and growing Plan (NDP). Key initiatives include the We believe that through effective unemployment, the slow pace of service President’s Framework Agreement for a dialogue, collaborative partnerships and delivery by many municipalities and the Sustainable Mining Industry, Operation agreement on a conducive policy in-migration of job seekers to mining Phakisa, the Mining Charter review environment, the platinum sector will towns, has contributed towards process, and the Leaders’ Declaration make a significant positive contribution increased competition for limited on the Mining Industry Commitment to to the sustainable economic growth and resources and has fuelled calls by some Save Jobs and Ameliorate the Impact of development of the region. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 18
Stakeholder review and mapping
“Each stakeholder is allocated an executive or champion responsible for managing the relationship with the organisation.”
Stakeholders are defined as those proactive measures to improve these previous reporting period. Part of the people who are interested and affected where they are found lacking agenda is to: by our business as well as those who O Identify key stakeholder issues; have a material influence on our ability to The process identified six priority O Highlight potential risks; and create value. stakeholder groups in Zone 1 for O Develop appropriate action and immediate intervention, informed by the responses. We have undertaken an inclusive nature of the current relationship and the stakeholder review process with the effectiveness of existing engagement Action items following from this process primary objective of improving structures. This remains an area of have been populated into the risk relationships by becoming proactive in critical focus and requires due care and management system and allocated to a our approach to building relationships. responsiveness to build better responsible person, thus ensuring that This process involved: relationships. Each stakeholder is stakeholder actions and responses are O Identifying all stakeholders allocated a responsible executive or managed on a continuous basis and are O Prioritising stakeholders according to champion to manage the relationship accessible to the entire executive team our impacts on them and the nature with the organisation as outlined in the for oversight. of the relationship table alongside. O Determining their level of influence on Zone 2 stakeholders have existing and the business Responsibilities are sub-delegated by mature engagement structures with O Mapping each stakeholder against a each executive to specialist personnel strong influence and impact on our designated champion or responsible and operational executives depending business, as such our objectives are to executive on the nature of the issues. Quarterly further build on these relationships. Zone O Defining the method of engagement stakeholder engagement meetings 3 stakeholders have existing and mature and identifying potential opportunities where operational executives and group engagement structures, but have less to grow and sustain the relationship champions meet to discuss and identify influence/impact on our business, as O Establishing a tool for monitoring and material issues were initiated in the such our objectives are to sustain our evaluating relations in order to take relationship. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 19
“Quarterly stakeholder engagement meetings, where operational executives and group champions meet to discuss and identify material issues, were initiated.”
Zone 1 Zone 2 Zone 3 Priority areas Evolutionary progress Sustain process
Employees Media and analysts Competitors Group executive – People Group executive – Chief executive officer Corporate affairs Unions Emergency services Group executive – People Board Group executive – Chief executive officer Health and safety Communities Chief executive – Business partners Civil society Operations Chief financial officer Group executive – Corporate affairs Government Industry and Chief executive officer business forums NGOs Chief executive officer Group executive – Shareholders Corporate affairs and investment Banks and financial community institutions Universities and Chief executive officer Chief financial officer R & D institutions Chief financial officer Group executive – Business analysts Technical services Suppliers Group executive – Chief financial officer Corporate affairs
Customers Group executive – Marketing and refining
Priority area Evolutionary progress Influenced by progress in Zone 1 OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 20
Responding to stakeholder interests
Implats has a range of stakeholders, with varying degrees of influence on the Company and on our ability to create value. Whilewe recognise that all stakeholders are important, we have prioritised our strategic relationships with employees and unions, local communities, government, suppliers, customers and shareholders and the investment community, each of whom has a material bearing on the success of our business. Some stakeholders are engaged at various forums and structures, which have been
Stakeholders Nature of engagement Material issues raised
Employees O Direct and internal communication O Safety and health performance and initiatives O Engagement with trade unions O Conditions of employment O Workplace forums O Voluntary packages and retrenchments O Future forum meetings O Progress with transformation O Production and financial performance O Job grading and career progression O Social and labour plans Trade unions O Internal communication O Living wage O Collective bargaining units O Conditions of employment O Branch committees O Voluntary packages and retrenchments O Chamber of Mines O Union recognition O Safety O Transformation O Housing and living conditions Traditional O Municipal forum O Employment and procurement opportunities council, local O Land owners' forums O Enterprise development land owners and O External communication O Infrastructure development local O Community engagement meetings O Health and social facilities communities O Community trust meetings O Environmental impacts and property damage O One-on-one meetings O Nature of engagement structures Government O Presidential framework O Labour relations O Meetings with officials from local, provincial and O Safety (accidents and stoppages) national government O Progress with transformation (SA) and O Compliance visits from government indigenisation (Zimbabwe) O Chamber of Mines Parliament Portfolio committee O Progress and compliance with social and labour O Mining Industry Growth, Development and plans (SA) Employment Task Team (MIGDETT) O Community investments and engagements O Environmental compliance O Mining Charter review O Operation Phakisa O National Development Plan O Presidential Framework obligations Suppliers O Tender and contract processes O Conditions of contracts O Supplier forums O Review of contractor operating standards in line O One-on-one meetings with Implats policy and standard Media O Press releases O All of the above issues O One-on-one interviews (radio, TV and print media) O Social media (Twitter and Facebook) O Operational visits O Results presentation Shareholders, O Operational visits O Future metal prices, and PGM supply and analysts and O Road shows demand dynamics investment O Results presentations O Industrial relations, climate and wage negotiations community O Investor conferences O Ability to control costs and production O One-on-one appointments O Political and policy uncertainty in South Africa and Zimbabwe O Capex programme O HSE and operational performance Advocacy groups O Stakeholder liaison meetings O Ensuring greater community benefit O One-on-one meetings O Improved labour relations O Surveys, hotlines and publications O Environmental impacts O Greater transparency Customers O Industry forums O Effective delivery against terms O One-on-one meetings O Long-term pricing O Customer feedback O PGM above ground stock O Reputation surveys Chamber of O Contribute to CoM meetings (at CEO and working O Contribution to industry positioning and lobbying Mines (CoM) group level) activities Producer and O Strategy meetings O Policy uncertainty industry forums O Industry interest group meetings O Sector reputational challenges OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 21
established on a periodic basis and are supported by a charter, while others are met through ad hoc arrangements as and when necessary. The following table outlines the engagements for the 2016 financial year, and the material issues raised by each stakeholder group
Our response Reference
O Collaborative engagements to find solutions to issues of concern Page 55 O Undertaking a culture survey O Reviewing internal incentive systems O Team mobilisation
O Continuing focus throughout the year on engaging with union representatives as part of our drive for establishing Pages 55 to 57 a new labour and employee relations environment that fosters open, honest and effective communication. A key focus this year has been on the wage negotiations process, the first in three years
O The responsible executive at each operation seeks to address issues of concern to the community. Information on Pages 64 to 79 our performance on material issues is provided at our mine community leadership engagement forums (MCLEFs), particularly on employment, procurement, infrastructure development, environmental issues and health
O Implats engages constructively with national, provincial and local government and political leaders at all levels, Pages 80, 98 both as a company and through industry representative bodies (such as the Chamber of Mines) on these to 109 material issues
O We have clear principles that guide the selection and use of reputable contractors with the right skills and values Page 33 systems to do specific tasks that the business is not able to do
O Media releases are released throughout the year on our website, updating the public on all material issues affecting the Company
O Investor concerns and queries are addressed in our regular investor engagements Pages 16 to 19
O Engage with and respond to various stakeholder groups as appropriate Pages 16 to 19, page 67
O Track and respond to customer feedback. Keeping customers informed of any possible supply disruptions due Pages 16 to 19 to industrial action
O Joined the Chamber in July 2012 and have contributed actively to various initiatives including in particular the Pages 80, 98 drafting of the framework agreement for a sustainable mining industry to 109 O Ongoing cost pressures within the PGM sector industry resulted in the formation of a platinum CEOs forum, Pages 16 and handled through the CoM 17 OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 22
Identifying our material sustainability focus areas
“Implats’ risk management process sets out to achieve an appropriate balance between minimising the risks associated with any business activity and maximising the potential reward.”
We identify our strategic business objectives, and our material sustainability focus areas, through our structured internal risk management process, and with consideration to the views and interests of our stakeholders.
Our risk assessment and management process Implats’ risk management process sets out to achieve an appropriate balance between minimising the risks associated with any business activity and maximising the potential reward. This process enables the board and senior managers to take decisions regarding the possible trade-off between risk and reward, and assists them to identify and pursue appropriate strategic growth opportunities informed by the Group’s risk appetite and risk tolerance levels.
Internal stakeholder issues
Risk identification and materiality
Macro- External economic stakeholder issues Exco deliberation and confirmation issues
Board ratification OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 23
Our risk management process (ORAs) that cover approximately 60 of throughout the organisation. While risk is comprises the following the most important aspects of the used to drive the agenda of each of the steps: Implats business. Each identified risk, as Board sub-committees, the oversight of O Establishing the context: We well as its associated controls, has a the risk management process and consider the nature of the external clearly defined line management owner. system lies with the health, safety, operating context (page 16) and the This process is repeated and reviewed environment and risk committee (HSER), views and interests of our regularly, ensuring that the information while each board sub-committee takes stakeholders (page 20) remains relevant. All information is ownership of the risks relevant to it. O Identifying the risk: We establish captured into the Group risk repository both the source and cause of the risk system that informs the Group risk This process culminates in the and evaluate all possible profile. The Group risk profile is identification of a prioritised set of Group consequences (see Integrated Annual presented on a monthly basis to the strategic risks (see page 24). Collectively, Report) Exco. Each business unit takes full these risks, along with the outcomes of O Analysing and evaluating the risk: ownership for their respective risk our internal and external stakeholder We identify and assess what this profiles, and these are discussed and engagement activities, and our means for the achievement of our debated at various operational reviews assessment of market fundamentals, are objectives, determine the risk rating on a continuous basis. The Group used to identify our material (by severity, exposure and frequency), strategic risks are discussed at Exco on sustainability-related issues. These identify the controls (both existing or a regular basis for relevance, input and issues are prioritised in terms of their new) and prioritise the risks update. This approach allows for robust impact both on the organisation and on O Treating the risk: We consider all discussion regarding the materiality of our key stakeholders. They inform the options to establish the most the risk, its likely impact on the business nature of our Group strategy (page 27), appropriate response for each in the short, medium and long term, and as well as the performance issues for identified risk the necessary risk mitigation measures. monitoring and reporting. While it is fully acknowledged that the Arising from this process, that is wholly board is responsible for risk aligned to ISO 31000, we identify a set management at Implats, risk of objective-based risk assessments management is seen to be pervasive OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 24
Identifying our material sustainability focus areas
Classification of Group strategic risks – June 2016 This year the Group risk profile identified the following top 10 priority risks:
Group strategic risk Context
Depressed PGM The current weakness in the PGM basket price remains a concern and is unsustainable in the basket prices medium to long term. Factors driving this include: reduced economic growth in China; reduced Japanese car sales following 2014 sales tax hike; investors, who are generally negative commodities, have liquidated EFT holdings to satisfy both platinum and palladium market fundamental deficits. Non-delivery of Short-term challenges include: production and O ramping up to full production; productivity targets at O maintaining our ability to achieve completion of the mining cycle; Impala Rustenburg O speeding up the establishment of face length in new mining areas; and O ensuring increased productivity. A significant Safety is the primary priority for the Implats leadership. The increase in the number of fatalities is deterioration in safety unacceptable. Mine safety is receiving high priority at a national political level and any significant performance deterioration in performance carries significant risk. Revenue impact of The 80 Section 54 stoppages in 2016 are deemed to have cost Impala Rustenburg and Marula Section 54 safety approximately R1 394 million in direct forgone revenue during FY2016. The indirect cost of these stoppages by the DMR stoppages in terms of management time and start-up difficulties are of a similar magnitude.
Weak cash flows and Implats is currently operating in a cash constrained mode, as are our peers. balance sheet constraints (liquidity) The security of supply As an intensive water user, Implats is exposed to risks relating to: reduced water availability; of water in South continuing uncertainty in the existing policy environment; the declining state of existing water Africa infrastructure; and the related socio-economic impacts on neighbouring communities.
Employee relations Our response plan to conserve cash has regrettably resulted in some job losses. A Section 189 climate notice has been served on the Rustenburg operations. Our aim is to reconnect with our employees – allowing managers and supervisors to retain this space by training/empowering them to resolve problems as fast as possible at every level. We need to sustain the current relationship through the imminent wage negotiation process, local government elections, and election of shop stewards.
Unavailability of secure Unavailability of reliable and secure power from ZESA to meet company operational and growth and reliable power at requirements or alternatively failure to ensure a stable power supply to operations, both on a Zimplats short-term and long-term basis, compounded by current low water levels and insecurity of Kariba Dam wall. Excessive taxation and There is an exposure to high taxation as a result of the unique Zimplats taxation, particularly the levies at the special mining lease (SML). There are multiple and sometimes conflicting interpretations of this piece Zimbabwean of taxation legislation, giving rise to taxation risks. operations
The security of supply In South Africa, the electricity supply industry is dominated by Eskom, which owns and operates the of electricity in South transmission grid. Eskom has a net installed generation capacity of 42 000MW. Given planned and Africa unplanned outages it is able to bring a maximum of 36 000MW on line at present. Sixty percent of the generating capacity is beyond the 30 years design life. OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 25
Our response measures Strategy Reference
Understanding the future demand for our products, and O Maintaining prudent investment Page 10, 11 corresponding industry supply-side profile. through the cycle and 79 – 81 Scanning the environment for technological advances that may affect Integrated the demand for Implats’ products (substitution). Annual Report Instituting appropriate responses where possible. (IAR)
Implementing initiatives relating to: mechanised off-reef development, O Improve efficiencies through Page 10, 11 management of critical spares, detailed work procedures, team operational excellence and safe and 79 – 81 mobilisation, training, mine planning protocols, production planning, production IAR quality mining and visible felt leadership.
Strong strategic commitment to develop an appropriate safety culture, O Improve efficiencies operational Page 38 driven through initiatives relating to people, practices and the physical excellence and safe production environment.
Rigorous interrogation of the impact of Section 54s, along with O Improve efficiencies through Page 44 participation in the initiative by the Chamber of Mines. operational excellence and safe Strong commitment to training of management, as well as to production incentivise safe working conditions.
Proactive and rigorous review of the short and long-term business O Maintaining optionality and position Page 10, 11 planning process and parameters, together with ensuring that for the future and 79 – 81 appropriate funding is available or in place. O Cash conservation IAR
Promoting water stewardship and security through effective O Improve efficiencies through Page 86 implementation of water conservation and management initiatives, in operational excellence and safe terms of our revised water strategy. production O Maintain social licence to operate
Striving to provide an enabling work environment that fosters open, O Improve efficiencies through Page 55 honest and effective relations between management, employees and operational excellence and safe elected union representatives, with an emphasis on developing direct production communication with employees, people leadership and team mobilisation, and our respect and care initiative. Engaging with various government departments directly, working with the Chamber of Mines and labour representatives to find sustainable solutions to industrial relations challenges in the country.
Maintaining regular contact with ZESA. O Improve efficiencies through Pages 89 – 91 Ensuring appropriate contingency plans in place. operational excellence and safe Implementing initiatives to reduce energy consumption. production
Ensuring compliance through external tax audits and the use of O Cash conservation Page 10, 11 specialist tax advisory services. and 79 – 81 Strong commitment to tax training and awareness, resolution of IAR historical tax matters and the tax risk management framework. Engagement with tax authorities to discuss prospective transaction and resolution of historic tax matters.
Maintaining regular contact with Eskom to ensure we are aware of any O Improve efficiencies through Pages 89 – 91 situation that may affect us. operational excellence and safe Ensuring appropriate emergency evacuation plans. production Implementing initiatives to reduce energy consumption. O Cash conservation OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 26
Our material sustainability focus areas
For the purposes of our sustainability O The material interests and concerns – Investing in community disclosure and management approach, of our key stakeholders (page 20) development in South Africa and we have identified three material O The findings of the Group risk process Zimbabwe sustainability focus areas and an (page 24) – Accommodation and living associated set of material issues. O The GRI’s G4 Sustainability Reporting conditions Guidelines (GRI Table available online) – Enterprise development and Our materiality process procurement These focus areas and issues were Our material sustainability – Respecting human rights identified through an externally facilitated focus areas and issues O Conserve natural resources and materiality process that involved the Through this process we agreed the mitigate impacts input of senior management following material sustainability focus – Water stewardship representatives and corporate areas and issues: – Climate change and energy sustainability practitioners and the O Safe and effective people who management subsequent sign off by the social, respect and care – Air quality management transformation and remuneration (STR) – Employee and contractor safety – Managing our waste committee. The structured process of – Health and well-being – Land management and biodiversity identifying the material focus areas and – Investing in employee relations issues involved a consideration of: – Attracting, retaining and developing These material focus areas underpin O Implats’ approach to creating value talent our Group strategy (page 27). The (page 8) – Promoting diversity and performance section of our Sustainable O An assessment of our most significant transformation Development Report has been impacts on human, social and natural O Social capital and licence to operate structured to reflect these focus areas capital (pages 8 to 15) – Our economic and social value and issues. O The impacts of the challenging added business context (page 16) OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 27
Our business strategy
Despite Implats’ long-term positive PGM A key aspect is safe production and our The viability of our business is dependent market view, near-term metal prices safety strategy introduces a range of on us making a meaningful contribution continue to be impacted by available health and safety initiatives, aimed at to the societies in which we operate, metal inventories. In this environment achieving zero harm. These initiatives respecting human rights and the Implats has to be prudent in its strategic specifically target critical safety interests of our stakeholders and abiding assumptions and ensure it retains behaviours and are closely aligned with by relevant laws and regulations of the flexibility to take advantage of longer- agreed industry safety responses. countries in which we operate. Securing term PGM prices. Within this context, the trust and endorsement of our host the Group has been positioning itself Given the nature of our business, the communities and their traditional strategically to conserve cash, while at safety, training and well-being of our representatives is essential to the same time restoring and optimising workforce is critical to our ability to maintaining our licence to operate. Our operational performances and create value, as it impacts productivity commitment to improving the living profitability. Our overarching strategic and ultimately affects the long-term conditions of our employees, through outcome targets five key areas: sustainability of the business. Our ability access to housing, provides an O Improving efficiencies/profitability to secure an effective employer/ opportunity for differentiation and through operational excellence and employee relationship is vital and we competitive advantage. It represents a safe production continue to focus on developing our strong business/employee linkage and O Maintaining our social licence to employee value proposition so that serves as the cornerstone of other pillars operate employees’ personal goals and of our broader transformation strategy, O Maintaining prudent investment aspirations are aligned to the objectives such as skills development and through the cycle and deliverables of the organisation. To retention, local procurement and O Maintaining strategic optionality and this end, we continue with our in-house enterprise development. We are positioning the Group for the future team mobilisation programme, which committed to meeting the O Conserving cash, especially while aims to inculcate respect among team transformational objectives in our metal prices remain depressed members and a duty of care to rebuild countries of operation through the relationships and ultimately deliver safe empowerment of historically MaintainingM operational production. We also continue to invest in disadvantaged South Africans and the eexcellence and safe new technology and modernise our indigenous people of Zimbabwe. Our production operations where possible in a quest to approach to maintaining our social Unlocking value at an operational level is consistently deliver production targets capital and licence to operate can be a key part of this strategic response. The and reach zero harm. This material found on page 64 of the report. Implats interventions here are specific to each sustainability focus area is addressed in also recognises that it creates value operation and have targeted measures the safe and effective people who primarily by extracting and refining to improve mining efficiencies and respect and care section of this report natural minerals. To support the reduce operating costs. Delivering (page 38). extraction and processing of these consistent returns through optimised resources we rely on access to land,
SOCIAL LICENCE operations is essential to reward our Maintaining our social licence water and energy – all of which have a stakeholders and ensure their continued to operate material impact on the environment and support. Ensuring profitability allows us Our business strategy takes cognisance the communities in which we operate. to reinvest in our human resources, of the shifting socio-political environment We recognise that the supply of these motivate our staff and continue to facing mining companies today and resources is constrained, resulting in contribute towards developing prioritises targeted employee initiatives increased costs of doing business and sustainable communities in our areas of to recapture their hearts and minds and greater efforts to address impacts on operation. community initiatives to build a shared communities. We continue to address vision and social compact. security of supply through recycling, OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 28
Our business strategy
reuse and reduction of use initiatives, as optionality. Implats will also continue to ConservingC cash, especially well as actively seeking to minimise explore and remain alert and open to all wwhile metal prices remain impacts, mitigate risks, minimise the value-accretive investment opportunities depressed cost of doing business and address that hold the potential to unlock The lower-for-longer risk mitigation price community sustainability in our areas of shareholder value. assumptions necessitate a range of operation. This is demonstrated on strategic responses, aiming to conserve page 84 in the conserving natural MaintainingM strategic cash in the near term, without impacting resources and mitigating impacts of our optionalityo and positioning the long-term value generation needed to operations section of the report. Group for the future sustain the business. The strategic target Implats aims to reposition and for 2017 is to contain the Group’s MaintainingM prudent modernise Impala Rustenburg into a planned capital spend to R4.4 billion. investmentiin through the cycle smaller, more concentrated mining Long-term sustainable stakeholder value operation with access to new, modern Despite the constrained capital, the can be achieved in the platinum industry shaft complexes, with new Merensky ore Group’s ability to fund the business and only with prudent capital investment reserves producing at much higher generate free cash flow is principally through the cycle, especially as we are mining efficiency and lower unit cost. determined by operational performance mining an ever-decreasing mineral The Group also aims to improve the and metal prices. To navigate through a resource with long project time lines and profitability of existing operation through difficult period where US dollar PGM high capital intensity. The right balance targeted interventions to improve mining prices could remain depressed in the needs to be found between short-term efficiencies and reduced embedded fixed near term, cognisance has been taken of returns and longer-term sustainability costs. Projects requiring significant the strategic imperative to balance and growth. Despite the need to capital investment have been deferred to shareholder returns, long-term growth conserve cash while prices remain conserve cash and protect the balance and balance sheet flexibility. This is depressed, significant capital resources sheet. Refer to the Implats annual addressed in detail in the integrated will still be deployed to sustain future integrated report 2016 for more details. report 2016. value creation and maintain strategic OUR APPROACH TO CREATING VALUE Implats Sustainable Development Report 2016 \ PAGE 29 Implats is committed to maintaining the highest standards of good governance in order to promote quality decision-making and the execution of these decisions within a disciplined framework of policies, procedures and authorities. Our governance and management approach OUR GOVERNANCE AND MANAGEMENT APPROACH Implats Sustainable Development Report 2016 \ PAGE 32
Our sustainable development management approach
“At board level, sustainable development issues are addressed through the social, transformation and remuneration (STR) committee.”
Our management approach provider for non-financial performance Indigenisation and Economic We have a structured and systematic each year. The results are presented Empowerment Plan; and approach to managing our most material to the committee with the necessary O Ensure the organisation maintains its societal issues and to address the recommendations and action. social licence to operate in host material sustainability issues of interest countries by advancing social to our priority stakeholders. A more detailed review of the transformation and upliftment in composition and activities of these board affected communities. At board level, sustainability issues are committees is provided in our Integrated addressed through the social, Annual Report. Sustainability objectives form part of the transformation and remuneration (STR) key performance indicators (KPIs) committee and the health, safety, At an executive level, sustainable against which Implats’ management environment and risk (HSER) committee. development falls under the responsibility and executives are measured and O The STR committee, chaired by of the executive committee (Exco), which remunerated. Details on these KPIs and Ms Mpho Nkeli, an independent is responsible for reviewing performance their implications for the executive are non-executive director, is responsible in terms of the Group’s non-financial provided in our Integrated Annual for the Group’s activities relating to: indicators. The Group Sustainable Report. social and economic development; Development Forum assists the Exco on transformation; the environment, sustainability-related issues. The forum People management health and public safety; consumer comprises a multi-disciplinary team that Management of our employees is relationships; labour and employment meets quarterly with the following headed up by a dedicated Group issues; and remuneration. principal objectives: executive reporting to the CEO. The O The HSER committee, chaired by O Identify material sustainability issues scope of work includes remuneration, Alastair Macfarlane, an independent that have an impact on the business human resource development, talent non-executive director, guides and devise appropriate strategic management and employment equity. strategy, assesses the adequacy and responses to these issues; Group policies and procedures on appropriateness of HSER policies, O Align strategic interventions to the people management issues are standards and procedures and global, national and industry agenda established at corporate level and apply reviews Group-wide performance and concerning sustainable development at our operations. Our policies and risk management practices quarterly. such as the NDP and the Framework procedures are aimed at contributing to The committee also investigates and Agreement for a Sustainable Mining sound employee relations, attracting and reviews all major incidences and Industry; retaining talent and ensuring the fatalities. O Ensure compliance with relevant continuous development of our O The audit committee, chaired by regulatory statutes in countries of employees, while offering opportunities Hugh Cameron, an independent operation such as South Africa’s for career progression with a particular non-executive director, oversees the Mining Charter and Broad-Based emphasis within our South African appointment of the assurance Black Economic Empowerment Act, operations on historically disadvantaged and Zimbabwe’s National South Africans (HDSAs). OUR GOVERNANCE AND MANAGEMENT APPROACH Implats Sustainable Development Report 2016 \ PAGE 33
Each operation has a transformation commitment to maintaining ISO 14001 development project steering committee committee comprising representatives certification for our environmental reviews the proposed projects after due from management, unions and women, management systems. Regular diligence. Once approved by the project as well as various other stakeholder compliance audits are conducted by steering committee, the projects are groups who contribute to overseeing the Group’s internal auditors and the recommended to the Group’s executive and advancing transformation at each external auditor. All of the Group’s committee, a multi-disciplinary operation. The operational committees operations are now ISO 14001 certified, executive-level management team that report to the Group STR committee. Our aside from Marula, which is undergoing evaluates the merits of investing in each operations also have community forums, the certification process after being project. In Zimbabwe, sustainable at which issues of concern to local declined recertification due to a repeat development initiatives are implemented communities – such as employment major non-conformance. Implementation and managed by the stakeholder opportunities, procurement and health, of the revised version of ISO 14001 engagement executive supported by safety and environmental performance published in September 2015 is in technical personnel from the operations. – are discussed. Issues arising from progress, with recertification at our these community forums are relayed to operations to be undertaken before Each year an independent audit is the operational committee and, September 2018. conducted on selected social projects, ultimately, to the Exco. These are based on the financial, legal and elevated to the STR committee quarterly In addition to the ISO 14001 certification, reputational risk as well as to determine and to the board as required. the refineries are signatories to impact, progress and potential remedial Responsible Care® and retained their action where a project faces possible Managing health, safety and certification. Responsible Care® is the failure. A summary of this can be found environmental (HSE) issues chemical industry’s global voluntary on page 68. Group and site-specific HSE policies, initiative under which companies, procedures and standards are in place through national associations such as Managing contractors and to ensure compliance with legislative the Chemical and Allied Industries suppliers requirements and support our vision of Association (CAIA) in South Africa, work We strive as far as possible to source all zero harm. Responsibility for together to improve and communicate goods and services within the country of implementing HSE policies and HSE performances. operation, with a particular emphasis on procedures rests with line management. local suppliers defined as tier 1, 2 and 3 All operations submit quarterly Managing our investments in based on their proximity to the performance reports to the board- socio-economic development operations in South Africa. Tier 1 appointed HSER committee. Group and The sustainable development suppliers are those from directly and operational level HSE specialists support department at Impala Rustenburg indirectly affected communities line management to implement the manages the socio-economic (Bafokeng Villages, Freedom Park, strategy and to monitor and manage development initiatives in our South Seraleng and Meriting, in Rustenburg, performance. African operations. A technical team is and the Four-farms area in Burgersfort). responsible for implementing the Tier 2 suppliers are within the local The Group’s environmental team has projects, working with the stakeholder municipality around the operations close links with operational and project engagement department. We identify while tier 3 suppliers are those within the management and is involved in due community projects based on a needs areas surrounding the local municipality. diligence exercises in connection with analysis, undertaken in consultation with In Zimbabwe, local suppliers are those acquisitions and the development of stakeholder representatives from within the country of operation. Local strategic initiatives. Policy communities, local government and procurement is advanced through implementation is enhanced by our employees. The sustainable enterprise development initiatives as described on pages 74 to 76 and page 79. OUR GOVERNANCE AND MANAGEMENT APPROACH Implats Sustainable Development Report 2016 \ PAGE 34
Our sustainable development management approach
Our contractor strategy defines the structured into two phases. The first development mining, ventilation principles that guide the engagement of phase uses our training and recruitment construction and sweeping and vamping reputable contractor companies with the resources to ensure all contracting services. right skills and value systems to employees are vetted and assessed undertake specific tasks we are unable according to our own internal standards. We will continue to focus our attention to do ourselves. All contractors and The second phase interrogates each on suppliers’ B-BBEE certificates and suppliers are appraised of our policies contracting company and the work they prompting suppliers well in advance of and business practices and are do for us. We have completed detailed their expiry dates. Penalties on annual expected, as a minimum, to abide by assessments with the assistance of an increases will continue to be levied on these principles in their business external specialist and will, over time, untransformed suppliers. During the conduct and practices at all our effect the required change. In the short year, no services of suppliers were operations. The strategy has been term we are planning to in-source all terminated. OUR GOVERNANCE AND MANAGEMENT APPROACH Implats Sustainable Development Report 2016 \ PAGE 35
Promoting ethics and good governance
“Our fraud, corruption and whistleblowing policy applies to all employees, suppliers and contractors in a business relationship with Implats.”
The Implats board assumes overall disciplinary action – including dismissal were reported across the Group, 48% of responsibility for the effectiveness of or prosecution – that is taken in the which were from the South African internal controls, risk management and event of any contravention of the code. operation, 48% from the Zimplats governance and for ensuring our A communication plan for the revised operation and the remaining 4% from business objectives are met. We are code, including training material, is being the Mimosa operation. This reflects a committed to promoting the highest rolled out to operations. 40% reduction from last year’s figure. standard of corporate governance and The founded cases increased from 34% to ensuring our practices are aligned Our fraud, corruption and whistleblowing of total cases last year to 39% of total with the expectations of the King Code policy applies to all employees, suppliers cases this year. Of the 61 cases reported of Governance for South Africa 2009 and contractors in a business and investigated this year, six were (King III). relationship with Implats. The policy conflict of interest and corruption; highlights our commitment to creating an 22 were fraud and theft and 23 related We maintain a zero tolerance stance on environment that encourages an to misconduct and other irregularities. fraud, corruption, misconduct or anti-fraud and anti-corruption culture, There were no BEE fronting cases this dishonesty. We expect all our informed by our organisational core year. The status on the 61 cases referred employees, business partners, values and our respect for open and to above is as follows: contractors and associates to conduct honest communication. O 16 are still pending; themselves according to the recently O 21 were unfounded; and revised and board-approved Implats The executives and line management are O 24 were founded. code of ethics and our fraud, corruption responsible and accountable for the and whistleblowing policy. implementation of the code, the policy In keeping with our zero tolerance and the associated procedures. The stance on fraud and corruption, 16 of The code of ethics addresses issues board has delegated oversight of the the 24 founded cases led to appropriate relating to conflict of interest, the code, policy and procedures to the STR disciplinary action being taken against prevention of dissemination of Company committee. the parties involved; as a result 14 of information, the acceptance of donations these cases receiving a guilty outcome, and gifts and the protection of the We have established a toll-free helpline eight cases did not warrant disciplinary Company’s intellectual property and to facilitate the confidential reporting of action and the remaining two are still patent rights. It also describes the alleged incidents. This year, 61 cases in process.
The table below provides the classification of the allegations and outcomes in each category:
Number of fraud/ethics-related cases reported Group-wide in the 2016 financial year Investigation Allegations Allegations Nature of allegation pending unfounded founded Total BEE fronting 0000 Conflict of interest and corruption 5 7 4 16 Fraud and theft 5 6 11 22 Misconduct and other 6 8 9 23 Total 16 21 24 61 Our employee value proposition aligns employees’ personal goals and aspirations with the objectives and deliverables of our business. Safe and effective people who respect and care SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 38
Employee and contractor safety
“Ensuring the safety and health of our employees, contractors and suppliers is essential if we are to respect their most fundamental rights.”
The Group’s sustained efforts to ensure evident in the progress the Group has Our strategic approach a safe working environment were made in its leading safety indicators and to safety overshadowed this year by seven tragic in the notable safety milestones achieved Ensuring the safety and health of our incidents at our operations that resulted this year in most of the operations. employees, contractors and suppliers is in 11 fatalities. Fatal incidents remain However, our analysis of fatal and essential if we are to respect their most unacceptable and we continue to lost-time injuries has shown that human fundamental rights. Our safety strategy strengthen our zero harm resolve. The failure remains a factor. We are therefore strives to foster a culture of safety and fatalities are particularly disappointing in placing renewed focus on improving the achieve our vision of zero harm. The view of the expenditure and effort we safety culture of our employees, strategy is informed by external and have put into safety initiatives, technical especially at our Impala Rustenburg and internal reviews of our safety systems solutions and training across the Group. Marula operations. and culture and by a continual analysis The benefits of these investments are of the root causes of all fatal, reportable and lost-time incidents.
Our safety strategy has three main pillars, each of which is underpinned by an accompanying set of action plans.
t Culture t Leadership t Supervision t Skills Person t"UUJUVEFT t.PUJWBUJPO t Teamwork t5FBNNPCJMJTBUJPO t;FSPIBSNJODFOUJWFT
t3FTQFDUBOEDBSF Safety strategy t5FDIOJDBMJOJUJBUJWFT – Equipment t "EPQUJOHMFBEJOHQSBDUJDFT – Design t "DDJEFOUJOWFTUJHBUJPO t)PVTFLFFQJOH t 3JTL.BOBHFNFOU4ZTUFN Physical t;FSPIBSNJODFOUJWFT Practices (ISO 31000) environment t Standards t Policies and procedures t 4BGFUZUSBJOJOH ;*1 SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 39
Person human behavioural aspects of safety and management has been increased to This pillar is about ensuring that we have how to influence this to achieve 35%, with a component of lead the right skills, teamwork, intelligence, improved safety awareness and indicators. In addition, all employees knowledge, motivation, attitudes and performance in their subordinates. receive an equal bonus payment when abilities to achieve zero harm. their teams work for 90 consecutive All E and D level managers complete a days without a lost-time injury. Safety culture ZIP safety leadership self-assessment Our safety leadership self-assessments survey every six months, aimed at Supervisors’ technical training have shown that we continue to have a measuring the perceived safety culture A five-day ex-leave training programme “dependent” safety culture in which among this group of managers. All E for mine managers, mine overseers, shift effective supervision is needed to ensure level production managers from our supervisors and miners, that covers compliance with safety rules and South African operations undertook a managing a half-level production section procedures at all levels, including 360° health and safety leadership safely and effectively, with emphasis management. A core goal of our safety assessment (using the assessment tool on the planning processes with the strategy is to create an “interdependent” proposed by the Mining Charter participation of the multi-disciplined safety culture where every employee is guideline), which entails assessment by technical teams. The training includes committed to safe working practices, subordinates and colleagues. information on revised standards taking clear responsibility for their own and new technology. This year, actions and helping others to adopt Visible felt leadership has been 3 641 employees participated. good safety practices. This is essential if increased, with D and E level leaders we are to achieve and maintain our now required to make four (previously Safety representative training desired safety performance and zero two) observations per month. In-house Every team has an elected part-time harm. The CEO, with the support of the training is provided. safety representative. Over the last three executive team, continues to drive our financial years all these safety overarching objective of developing the A four-day leadership training course representatives have been trained right safety culture through effective aimed at mine overseers and shift through an accredited MQA training leadership and by demonstrating visible supervisor level leaders incorporates ZIP course. All newly elected safety personal commitment. The principal safety principles and is designed to representatives will be trained. By June leadership initiatives being implemented empower supervisors to lead their teams 2016, 5 245 employees across the to develop the right safety culture are in safe production. This year, 178 leaders Group (11.12%) had undergone training, reviewed below. participated in the programme. ZIP for exceeding our target of 8% by 3%. Leaders principles will be adopted in all We have continued to implement the safety plans at shaft level. Team mobilisation five-pillar cultural transformation Team-mobilisation training is a five-day framework developed by the Chamber of Safety reward system course on site, aimed at building trust Mines’ Mine Health and Safety Council We implement a zero-harm incentive and enhancing team functionality, (MHSC) and to embed the Mining scheme, which divides the incentive committing production teams to action Charter’s health and safety equally between safety and production. plans and collective accountability for commitments. The safety component comprises the safe production. We plan to adjust the leading requirement that nets and bolts training to more strongly establish Effective leadership be installed on all panels and the miner’s role as leader. To date, Implats’ executives and all senior development ends, as well as the 316 active teams (12 people in a team) management (E level) and professional lagging measure of workforce lost-time have completed the training and we will qualified (D level) production managers injuries. The long-term incentive scheme continue to train a further 245 active have attended the best-practice Zero for D and E levels also includes the teams (five teams each week). Once all Incident Process (ZIP) for Leaders lagging FIFR three-year performance stoping teams have been trained all training programme. The programme compared with industry peers. The redevelopment, on and off-reef teams provides managers with insight into the short-term incentive scheme for E level will be trained. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 40
Employee and contractor safety
Disciplinary process We have identified 14 major hazards at Fatigue management To ensure disciplinary action is taken Impala Rustenburg and identified control A code of practice for employee fatigue when there are breaches in safety standards for each. All Impala standards management has been developed and conditions or behaviours, our disciplinary and procedures associated with these communicated to employees. process has been automated where major hazards have been linked to each possible, removing a manager’s hazard and are available electronically on Critical controls discretion on whether to take discipline the intranet. We have identified our material or not. Disciplinary action is monitored unwanted events (MUEs) and are and reported regularly and managers are Every lost-time injury is analysed to following ICMM practice guidelines to held accountable. determine behavioural and control develop a critical control management failures and whether breaches of safe system to ensure line management Managing high-risk employees production rules were wilful or not. All focuses on the controls aimed at An analysis of various data sets accident investigations include the preventing these events. (including medical, human resources/ human error assessment in the formal financial, disciplinary, production) has accident investigation process. We will Critical safe behaviours highlighted a number of employees who be monitoring and enforcing the deemed We identified a set of “critical safe could be at a significantly higher risk of action required by the “human failure” behaviours” for the five most critical having or causing a safety incident. guide. occupations – rock drill operators, Steps are taken to mitigate the level of scraper winch operators, locomotive risk, for example through formal Triggered Action Response Plan operators, panel operators and trackless counselling. The data analysis and formal (TARP) machine operators – and rolled out a monitoring of identified high-risk TARP is a system that requires the training and awareness programme and individuals is ongoing. formal examination for known hazards in measurement system aimed at the workplace and then the formal encouraging the right behaviours needed Practices implementation of appropriate and to ensure safety. We will entrench these This pillar of our strategy is about predetermined action and response behaviours through supervisory and providing best practice policies and measures. TARP focuses on recognition compliance measures. We are procedures, risk assessments, standards and response to hazards associated with developing support documents for the training and safety interactions. ground conditions and ventilation. critical safe behaviours for the next five Regular refresher training is given to critical occupations. Information management ensure TARP is applied as intended and The OHSAS 18001 Occupational Health management is required to check and Section 23 actions and Safety Management Standard will monitor understanding and compliance Section 23 of the Mine Health and Safety be replaced with an ISO 45001 system by every team. The system is fully rolled Act (MHSA) empowers employees to by the end of 2016. Zimplats and out at Impala Rustenburg and Marula is withdraw from their workplace if there is Mimosa are OHSAS 18001 certified. finalising its roll out. a perceived danger to their health and Impala Rustenburg, Marula and Impala safety. We need to formalise and Springs are aiming for ISO 45001 Women in mining safety forum systemise the process of Section 23 certification by 2018. Independent Our “women in mining” safety forum at withdrawals to ensure employees report consultants have completed a detailed Impala Rustenburg meets monthly to any danger and that work is stopped gap analysis of the OHS systems at identify and address safety and health until the risk has been mitigated. Safety these operations to identify potential issues specific to women. This year we representatives have been trained and compliance gaps, which will be have improved the availability and quality issued with Section 23 withdrawal addressed. of specialised personal protective booklets. equipment (PPE) for women and have Systems are in place to capture and completed a PPE code of practice for Safety inspection system report on leading safety indicators the safety of women. We continue to A pilot IsoMetrix safety inspection and measure the following indicators introduce initiatives aimed at improving system is being tested at Impala for trends: the safety and security of women Rustenburg 16 Shaft and safety officers O stop observations performed; working underground. are using the system to capture all O pre-work alcohol testing; O road behaviour monitoring; and O work stoppages on safety audits/ inspections. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 41
inspections. Reporting templates will be Actions are being taken to meet the completed in all centre gullies. developed. Following the trial at DMR requirement that PDS systems be Application standards for the WPD 16 Shaft, we will decide on future roll rolled out to surface machinery. signalling device in stope advanced out to other shafts. strike gullies was completed and the roll PDS on track-bound machinery: A key out is in progress. Safety structure focus is to improve our locomotive safety Due to financial constraints and the initiatives. We aim to have front driven Enhanced central electronic blasting Company restructuring during 2016, our train technology and proximity detection system: The SafeBlast® system, or safety department reduced the central on all track-bound machinery. Following similar modern safe blasting system, is independent team of safety officers that the installation and evaluation of a pilot now installed and functional across performs a follow-up audit function. At project at Impala Rustenburg 16 Shaft, Marula, Mimosa, Zimplats, E&F, 1, 4, 6, the Impala Rustenburg and Marula the PDS is being rolled out to all 7A, 14, 16 and 20 Shafts at Impala operations, line managers will locomotives at the shaft and the roll out Rustenburg operations. Implementation consequently be responsible for at 11 Shaft is planned. at Shaft 11 has been delayed owing to following up and closing out issues financial constraints. The SafeBlast® identified by the safety audits and stop Vertical shaft bank and station safety system allows stricter control and notes. The central safety department will, devices: Over the last two years we supervision of blasting operations and however, maintain a supportive safety have equipped all vertical shaft surface is used in conjunction with the role for all operating areas in the Group. bank areas and underground stations SafeStart® IED. with a fail-safe and winder interlocked New explosives regulations safety device, which will arrest any rail Emergency preparedness and New regulations on the handling of bound moving stock before it gets to response: Power supply constraints and explosives promulgated in terms of the the shaft. uncertainty present risks to employee MHSA are more prescriptive and safety. As an energy-intensive user with introduce various additions to the Conveyor belts and underground fire South Africa’s electricity provider Eskom, previous regulations. We are engaging risk: Following the major conveyor fire Implats has specific agreements in place with the authorities to clarify incident at Impala Rustenburg 14 Shaft, to mitigate risks of interrupted power. expectations and work towards ensuring several actions were identified to This year we undertook a bowtie risk compliance. enhance fire prevention controls. We are assessment of a major power failure replacing all conveyor belts with fire across Implats, updated all the related Physical environment retardant belts. At year end, 62% of the standards and compiled a major power This pillar of our strategy is about operational belts at Impala Rustenburg failure manual, which has been ensuring a safe physical environment, and Marula and 70% of all standard implemented since March 2016. reducing risks through appropriate belts across the Group had been equipment, housekeeping, engineering, replaced. We are on track to have all Flammable gas management: We planning and design. belts replaced by 2017. The code of completed the replacement of GDI practice to manage conveyor belts was Enviro with GDI Sentinels at 11, 11C, 14, Roof bolts and nets: All stope panels reviewed and redrafted with new 16 and 20 Shaft, and the roll-out of the and all “on reef” and “off reef” guidelines promulgated by the DMR. GDI Enviro dual gas measuring devices development ends at Impala Rustenburg Rehabilitation and reconstruction of the to all shift supervisors, the shaft HOD and Marula operations have had roof No 14 Shaft decline conveyor and team and full-time health and safety bolts and netting fitted as protection services will continue through to representatives. The monitoring of the against falls of ground. This initiative is March 2017. underground flammable gas emissions used as a formal lead indicator at both 11 and 16 Shafts indicate low component of the production bonus Winch-signalling devices: We have emissions with no significant change in and accounts for 25% of the team’s standardised an electronic winch- flammable gas emissions. bonus value. signalling device that gives a 15-second audible and visual warning before it Underground ventilation doors: The Proximity Detection Systems (PDS) on powers the motor. The system also installation of ventilation door monitoring trackless machinery: All underground includes a facility to trip the winch from at shafts continues. At year end, 56% of trackless mobile machinery (TMM) has any remote area along the length of the all shafts had been fitted with cable been equipped with a vehicle-to-vehicle gully. Reliability problems have been installations and 5% with sensor and vehicle-to-person detection system. resolved and roll out has been installations. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 42
Employee and contractor safety
Over the year we invested R174 million (2015: R221 million) in various technical solutions aimed at protecting all those who work in our mines. These investments are reflected in the table and graph below:
Safety technical initiatives Expenditure Expenditure Estimated to date for FY16 completion Initiative R’000 R’000 date Roof bolt and netting 345 586 86 570 Ongoing Fire retardant conveyor belting 93 701 45 395 Ongoing SafeBlast® system 46 769 5 956 Ongoing Fire detection system 12 944 5 232 Complete WPD signalling devices for scraper winches 148 862 29 268 Ongoing Proximity detection systems on track-bound machinery 1 786 1 786 Complete
Technical safety interventions
120%
100%
80%
60%
40%
20%
0% FY12 FY13 FY14 FY15 FY16
Q New winch return rigs Q New winch signalling devices Q Shaft safety devices Q Locomotive speedometers Q Nets and bolts on Merensky Q Nets and bolts on UG2 Q Self-contained self-rescuers Q PDS
Our 2016 safety performance ground, one involved a major fire, one Although the deterioration in our safety The nine fatalities in South Africa and involved underground moving equipment performance as measured by lagging two in Zimbabwe this year are deeply and another was scraper related. In each and leading indicators is disappointing, upsetting for all of us. These fatalities incident, the root cause was non- we have made good progress in safety were as a result of seven tragic incidents compliance to standards and safe improvements to the physical safety at three operations: Impala Rustenburg production rules, in some cases at environment at many business units via 14 Shaft (six fatalities) and 1 Shaft (three supervisory level. Disciplinary action has implementing new technology and fatalities), and Mimosa (two fatalities). been taken and remedial actions engineering solutions and significant Four incidents were caused by falls of implemented to prevent repeat incidents. improvements to our practices.
Fatal injury frequency rate (FIFR) Per million hours worked 2016 2015 2014 2013 2012
Impala Rustenburg 0.107 0.070 0.052 0.092 0.115 Impala Springs 0.000 0.000 0.000 0.000 0.000 Marula 0.000 0.111 0.000 0.000 0.130 Mimosa 0.246 0.000 0.000 0.000 0.000 Zimplats 0.000 0.000 0.068 0.000 0.000 Group 0.091 0.058 0.043 0.0065 0.0087 SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 43
Key lagging indicators IN MEMORIAM The 11 fatalities impacted the lagging We extend our sincere condolences to the families, friends and colleagues of the performance indicators at the respective 11 permanent employees who died at Impala during the 2016 financial year. operations and the Group injury rates. O The fatal incident frequency rate was O Mr Erick Mukazi died in a fall of ground incident on 24 August 2015 at Mimosa 0.091 per million man-hours worked, O Mr Oraile John Sethibang was fatally injured in a fall of ground on up from 0.058 in 2015. 24 November 2015 at Impala Rustenburg No 14 Shaft O The reported injury frequency rate (RIFR) was 3.83 per million man- O Mr Jerome Nkosiphendule Zweni was fatally injured in a fall of ground on hours, up from 2.63 in 2015. 12 December 2015 at Impala Rustenburg No 14 Shaft O The lost-time injury frequency rate per O Mr Charles Teketai was fatally injured in an incident involving mobile equipment million man-hours (LTIFR) increased underground on 4 January 2016 at Mimosa to 6.49 from 5.27 in 2015. O Mr Vuyani Jackson Kajani was fatally injured in an incident involving a scraper O The total injury frequency rate (TIFR) on 7 January 2016 at Impala Rustenburg No 1 Shaft – a measure of all recorded injuries, including fatalities, lost-time injuries, O Mr Mosala George Moloele, Mr Mosielele Johannes Sesimane, Mr Stephen and medical treatment cases – Johnny Kgari and Mr Tshotlego Rantisiripana Moyo died from smoke inhalation increased to 12.31, from 9.78 in in a fire incident on 22 January 2016 at Impala Rustenburg No 14 Shaft 2015. For comparability with industry O Mr Ohemile Moses Maamogwa and Mr Tanki Samuel Lepitikoe were fatally peers refer to safety data below injured in a fall of ground on 17 May 2016 at Impala Rustenburg No 1 Shaft (fatality rates across the South African platinum industry).
Comparison of fatality rates (calendar years) across the South African platinum industry (per million man hours) 0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0 Anglo Plats Lonplats Northam Implats Aquarius Eastplats Royal Bafokeng Platinum industry Platinum Q 2010 Q 2011 Q 2012 Q 2013 Q 2014 Q 2015 Q 2016
RIFR LTIFR (per million hours worked) (per million hours worked) 2012 3.13 2012 5.91
2013 3.06 2013 5.80
2014 2.68 2014 6.10
2015 2.63 2015 5.27
2016 3.83 2016 6.49 FY16: 3.83 (45% deterioration) FY16: 6.49 (23% deterioration)
TIFR FIFR (per million hours worked) (per million hours worked) 2012 11.19 2012 0.087
2013 10.91 2013 0.065
2014 11.90 2014 0.043
2015 9.78 2015 0.058
2016 12.31 2016 0.091 FY16: 12.39 (27% deterioration) FY16: 0.091 (57% deterioration) SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 44
Employee and contractor safety
Key leading indicators Rustenburg this year have been more compared with 94.4% compliance O A total of 80 Section 54 stoppage focused than in previous years. last year; our target is 100%. instructions (excluding Section 55s) O Our internal safety stoppage system O We conducted 1 639 517 were issued in 2016 (2015: 55), recorded a total of 4 856 proactive breathalyser tests (2015: 1 191 278) resulting in the relevant shaft being stoppages made in workings during throughout our operations in line with closed for a period. As a result, we 2016, compared to 4 016 in 2015. Company policy of zero alcohol in the collectively lost approximately O The number of visible-felt-leadership workplace. As a result, 429 tested 398 shaft-days of production across (VFL) Stop observations performed positive, representing a 9% decrease the Company, with the resulting totalled 48 888 in 2016, compared to on the 472 individuals who tested 66 000 platinum ounces lost 49 181 in 2015. Prolonged recovery positive in 2015. Disciplinary action amounting to R1 394 million in lost actions and DMR instructions was taken against all employees revenue. We support all safety work following Impala 1 Shaft and Impala testing positive. stoppages where there is a direct 14 Shaft fatal incidences led to the danger to safety. We continue to 0.6% decrease in VFL observations. During the year, several potentially engage actively with the authorities on Planned task observations totalled serious safety incidents occurred, during these stoppage instructions. We 81 332, compared to 84 428 in 2015. which no injuries were sustained. In each welcome that the stoppage O We achieved 96% compliance in our case, an investigation into the root cause instructions issued at Impala road behaviour testing (120 157 and other contributing factors was checks and 4 608 transgressors), as conducted and disciplinary and remedial actions undertaken. Notable safety achievements It is important to recognise the significant safety achievements and milestones we achieved across many of our operations. Operation Date Achievement Impala Processing 19 July 2015 One million fatality-free shifts (1 year and 6 months) Impala 1 Shaft 31 July 2015 One million fatality-free shifts (11 months) Impala 11 Shaft 3 August 2015 One million fatality-free shifts (10 months) Marula 13 August 2015 One million fatality-free shifts (11 months) Impala 7 Shaft 4 September 2015 One million fatality-free shifts (3 years and 9 months) Impala 6 Shaft 9 November 2015 One million fatality-free shifts (2 years and 11 months) Zimplats 19 November 2015 Four million fatality-free shifts (2 years and 4 months) Impala 10 Shaft 14 January 2016 One million fatality-free shifts (1 year and 6 months) Two Rivers 1 March 2016 Three million fatality-free shifts (4 years and 1 month) Impala 20 Shaft 21 April 2016 Two million fatality-free shifts (3 years) Impala 16 Shaft 27 April 2016 One million fatality-free shifts (1 year and 7 months) Impala 11 Shaft 7 May 2016 Two million fatality-free shifts (2 years) Impala Services 8 May 2016 Eleven million fatality-free shifts (14 years and 11 months) Impala 4 Shaft 3 June 2016 Two million fatality-free shifts (4 years and 1 month) Marula 13 June 2016 Two million fatality-free shifts (1 year and 9 months) Zimplats 17 June 2016 Five million fatality-free shifts (2 years and 10 months)
Implats “We Care” programme
Implats is committed to safeguarding the health and safety are 125 children receiving educational benefits: 66 are in of all of its employees and strives to achieve zero harm. If an primary school, 33 are in high school, six are in tertiary employee loses their life as a result of a work-related education and there are also 20 pre-school children incident, we recognise the severe impact that this has on receiving We Care grants. their family.
We have a We Care programme that provides support and opportunities for the children of the deceased to complete their education. The benefits are in addition to the Rand Mutual and the Pension and Provident fund death benefits received by the spouse and children and have been applied to all fatalities since 1 July 2009. A total of 238 children have been enrolled under the programme. Currently there SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 45
Fatal fire at Impala Rustenburg 14 Shaft
Four of our employees tragically died following a fire that Following the fire, various actions to enhance current fire occurred in the main underground decline at Impala prevention control and prevent similar occurrences were Rustenburg 14 Shaft during the night shift on 22 January identified and a committee was established to implement 2016. A search and rescue operation for the four men was the actions and monitor progress. The committee meets initiated after all other employees were safely evacuated. bi-weekly and progress on the actions are recorded and The four employees were overcome by fumes while trying to monitored in the CURA risk management system. Actions find their way to safety. Implats has and will continue to include the installation of fire retardant belts, which is being provide support and assistance to the families of the done on a replacement basis. During 2017, a formal employees. warning system will be developed to warn employees to evacuate in the event of an emergency. Operations at Shaft 14 were suspended while comprehensive investigations were undertaken into the Operations resumed at 14 Shaft on 15 February, when sequence of events, the cause of the conveyor belt fire and crews re-entered the upper conventional section of the resulting fatalities and the extent of the damage. Forensic mine. Development activities in the upper sections and third-party investigations are still under way. It was recommenced in February, while the lower trackless and found that the detection and suppression systems worked conventional mining sections remained closed and mining according to design since the required warnings were raised crews were redeployed to assist in the clean-up and and water was sprayed at the heads and the tails of the rehabilitation operation. Extensive damage was caused to conveyor belt. The failure was the human element in the the conveyor, monorail, power and air reticulation systems. chain of events, as employees were lowered into the shaft Underground fire rehabilitation work at 14 Shaft will be after the system warnings were activated. Seven people completed by March 2017. We will continue to share the have been suspended pending an investigation and lessons from this incident and implement appropriate disciplinary action will be taken where necessary. actions across the Group as we strive for zero harm.
Our safety focus for 2017 and assessments among D and E level representative and supervisory beyond leaders every six months monitoring interventions Our priority is to ensure improvements to O Enhance the Section 22/23 O Develop critical controls to prevent the person and behavioural pillar of our withdrawals process with formalised any of the following unwanted events: safety strategy to create the right safety and systematic recording and conveyor fires; major fall-of-ground culture and achieve and maintain zero reporting collapses; a tailings dam run out; harm. We will drive the shift from the O Include in all injury investigations an methane explosion; and rolling stock prevailing dependent culture towards an analysis to determine whether any falling down a shaft interdependent culture through effective human failure factors were O Continue to implement best practice safety leadership and engagement with unintentional or intentional; where technical initiatives and assess new employees. This includes a focus on applicable, enforce disciplinary action technological advances to determine visible felt leadership through Stop as required by the human failure guide their appropriateness at our observations, safety leadership self- O Continue to analyse data sets to operations assessments, leadership training that identify employees at high risk of O Continue to pursue interactions with includes the Zero Incident Process (ZIP) having a safety incident, monitor and senior union leadership to gain principles, safety reward schemes based seek to mitigate the level of risk commitment for safety initiatives on leading indicators and systematically O Enhance the knowledge and enforcing disciplinary action where safe competence of our employees, Our target is zero fatalities across all production rules have been breached. including: providing special training for operations. Each operation is expected users of new equipment and to achieve at least a 20% year-on-year To promote a culture shift and mitigate communicating and providing training improvement in their LTIFR performance safety risks in the workplace, the on a revised set of safe production in support of the MHSC safety following key interventions are planned rules milestones. We aim to certify all for 2017: O Entrench the critical safe behaviours operations to the OHSAS 18001 O Conduct a further 360 degree safety that have been rolled out to the five (ISO 45 001) standard by 2018. survey of all E level managers and critical occupations, through safety further ZIP safety leadership self- SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 46
Health and well-being
“The occupational health strategy ensures that all occupational health risks are identified, mitigation controls are in place and that any ill health is detected and treated early and efficiently.”
Effective management of occupational Our strategic approach on ensuring that all employees have health risks, as well as promoting health to employee health and access to affordable healthcare so and well-being in the workplace, well-being all health stressors can be identified, protects our employees, enhances Our health strategy addresses both managed and treated. Implats has productivity and helps maintain our occupational and non-occupational extended its shared responsibility to licence to operate. Investing in health and is focused on preventing include the non-occupational health of community healthcare around our harm to our employees. It is structured dependants of employees. The delivery operations provides a significant around three main pillars: wellness, and funding arrangements depend on societal benefit and is important for education and treatment. local facilities and conditions and differ achieving our longer-term business between our operations in South Africa goals. Our community healthcare The occupational health strategy ensures and Zimbabwe. activities are noted on page 109. that all occupational health risks are identified, mitigation controls are in place Our strategy guides our approach to and that any ill health is detected and achieving the occupational health treated early and efficiently. Any resulting milestones set for the South African disability is referred to independent third mining industry. The milestones include parties for assessment and possible targets for HIV, TB, silicosis and noise compensation. Our strategy on induced hearing loss (NIHL), which are non-occupational health focuses deemed strategic risks for Implats.
t Early detection of illness t "OOVBMNFEJDBMTDSFFOJOH t &NQMPZFF"TTJTUBODF1SPHSBNNF Wellness t )*7XFMMOFTTQSPHSBNNFT t'JOBODJBMTVQQPSUBOEDPVOTFMMJOH t/VUSJUJPOBMTVQQMFNFOUVOEFSHSPVOE
t"DDFTTUPBGGPSEBCMF healthcare Health strategy t$MJOJDT IPTQJUBMTBOE third-party service t Chronic illness education providers t )*7"JET t"37USFBUNFOU programme Treatment Education t 5VCFSDVMPTJT t"MJHONFOUXJUI t Smoking and alcohol Department t /PJTFJOEVDFEIFBSJOHMPTT PG)FBMUIDISPOJDJMMOFTT treatment t)PVTFLFFQJOH t;FSPIBSNJODFOUJWFT SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 47
The Impala Medical Plan (IMP) is a practitioners especially around the clinical and occupational health longstanding registered medical scheme operations have been providing full information. formed to provide private care to our services to members. The cost of any O Medical incapacity: Across the South African employees and their services provided within company Group, 377 employees were declared dependants through Company-owned managed facilities is recovered from to be permanently or temporarily and operated facilities at Impala the scheme. disabled due to HIV-related medical Rustenburg, Marula and Impala Springs. conditions (2015: 505). The main We also provide access to external Our 2016 health performance disability diagnosis remains HIV/Aids. medical schemes. Company funding of The principal health risks facing our The DMR published a guideline on the these is based on the cost of the IMP. employees are pulmonary tuberculosis medical incapacitation process for the We assist employees with receiving (TB) and the associated human South African mining industry, which treatment through their medical aids and immunodeficiency virus (HIV) co- required a revision of Impala and managing transfers between schemes. infection, both of which are of epidemic Marula procedures. Following proportions in southern Africa. The major discussions with AMCU HSE The South African government’s occupational health risk associated with structures, a revised code of practice commitment to developing National our mining activities is noise-induced has been submitted to the DMR. Health Insurance (NHI) has been hearing loss (NIHL). The main changes include the considered in our non-occupational establishment of an incapacitation health strategy and we continue to A review of health-related trends and our committee consisting of medical, support the NHI through partnerships, performance during 2016 is summarised human resource and employee working closely with the Department of below. A more detailed breakdown of representative disciplines. Health (DoH) directly and through the our health performance at an operational O Employee indebtedness: The high Bojanala Health Forum. level is provided in the table on level of employee indebtedness is a page 121. growing concern, affecting employee At our Zimbabwean operations, Mimosa well-being and raising stress-related institutes a national health and safety O General health indicators: This health and safety risks. We implement environmental campaign dubbed “Let’s year, 48 641 occupational medical various initiatives aimed at assisting go Zero”. The initiative aims at mobilising screening examinations were employees with financial literacy, stakeholder support on the basis of conducted, of which 44 159 were planning and mitigating indebtedness shared national goals. Drawn from periodic (as compared to 56 605 last (reviewed on page 54). Mimosa’s existing company motto, “Zero year, of which 52 405 were periodic). O Noise-induced hearing loss harm is possible”, the private-public No previously unknown occupational (NIHL): We provide all employees partnership campaign seeks to illnesses were detected. Analysis of exposed to noise with custom-made encourage better living by practicing various data has been conducted to hearing-protection devices (HPD) and good driving habits to achieve zero determine the health of employees to associated training. Ensuring carnage on the roads, zero pollution and better manage employee health, adherence wearing the HPDs deforestation, zero new HIV infections productivity and sick leave. remains a challenge. We conduct and zero accidents at the workplace, on O Chronic illness: We have been annual audiometric screening the roads and at home. To ensure the focusing on identifying and managing examinations to detect deterioration campaign is highly impactful, Mimosa patients with chronic conditions and of hearing before permanent NIHL works with sustainable development assessing whether they are still fit to develops. Employees with a hearing partners such as the National AIDS perform their duties safely and loss shift of between 2.5% and 4.9% Council (NAC), Traffic Safety Council of productively. Over 30% of the South undergo counselling. Cases of Zimbabwe (TSCZ), the Environmental African employee base is receiving hearing loss shift of between 5% and Management Agency of Zimbabwe treatment for chronic medical 9.9% are investigated and patients (EMA), the Zimbabwe National Roads conditions, the main conditions being counselled and monitored. In 2016 Association (ZINARA) and the Zimbabwe hypertension, HIV/Aids and diabetes. there were 2 035 such cases, Republic Police (ZRP). Impala Rustenburg and Marula compared to 1 988 in 2015. This year, medical clinics use the Trimed 120 cases (employees and Zimplats employees have access to information technology system to contractors) of NIHL shift of more medical insurance, the delivery of which manage patient information. The than 10% were diagnosed and is outsourced to external service system has been enhanced to focus submitted for assessment of disability providers. Although there have been on chronic disease management and and compensation; compensation issues of funding shortfalls when facilitate the cross-referencing of was provided in 59 cases (2015: accessing specialist services, general SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 48
Health and well-being
49 submissions and 36 cases O HIV/Aids: Our HIV/Aids policy, volumes and this will assist in compensated). The industry health which covers activities across all selecting appropriate engineering milestones require a revised formula our operations, ensures patient controls where necessary. The for calculating NIHL and that no confidentiality, non-discrimination average dust concentration trends person develops a hearing loss of and highlights our commitment to recorded remain below 10% of the greater than 10% using this formula. ARV-treatment programmes. All OEL. This year, 11 employees and The rebasing of performance data employees and contractors are four contractors were diagnosed with using the new formula is under way counselled and offered HIV testing at silicosis; all of these cases have in the South African operations. annual medical examinations. Our HIV proven historical gold mine exposure. Good progress has been made in prevalence rate is estimated at 23% All cases have been submitted for investigating and improving the sound based on available data for Impala assessment and compensation to the suppression of all equipment that Rustenburg, level with last year. Department of Health’s Medical exceeds the industry milestone target During the year, we undertook Bureau of Occupational Diseases. of a sound pressure level of 107dB 10 867 voluntary counselling and All new employees are screened for and in providing noise clippers to all testing (VCT) interventions of pneumoconiosis at a pre-employment employees at risk. employees and contractors (2015: examination. Pre-employment O Pulmonary tuberculosis (TB): TB is 11 875). A total of 6 891 employees individuals who have x-ray changes being driven by the HIV epidemic in participated in Company-funded and suggestive of silicosis are classified southern Africa. Over 60% of our TB managed HIV-wellness programmes as unfit and referred back to their patients are HIV-positive and the two (2015: 6 140). At year end, Group- previous employer for assessment infections are considered and wide there were 4 843 patients and submission to the Bureau of managed together. Most of our TB (2015: 4 429) on ART treatment Occupational Diseases. and HIV/Aids performance indicators of which 87% (4 234) were at O Diesel particulate matter (DPM): continue to show a steady Impala Rustenburg. The number of We continue to monitor exposure to improvement. During the year, employees receiving ART through DPM. The risk of exposure to DPM is 171 new cases of pulmonary TB were external medical aids or government mitigated by adequate ventilation, low detected (2015: 304). Our incidence health facilities is not known and so sulphur diesel replacement and DPM of 447 per 100 000 employees is well these figures may be underestimated. exhaust filters in underground diesel below the South African average of Fitness monitoring of patients on ART combustion engines. We are 840 per 100 000. Multiple drug- is ongoing and the adherence rate developing a prototype fuel cell- resistant TB continues to be a was 94.5% this year. Patients on powered load haul dumper which will concern; we have eight new cases external medical aids can only be eliminate DPM underground. All diagnosed, with six on treatment, all monitored through the Occupational underground locomotives are electric at Impala Rustenburg, down from Health Centre (OHC). Controls have and therefore do not emit DPM. 16 in 2015. All cases of pulmonary been put in place to conduct OHC O Malaria: This year, 17 cases of TB are submitted to the Department testing to determine these patients’ malaria were diagnosed at Impala of Health’s Medical Bureau of fitness. Regrettably, 57 employees Rustenburg and five at Zimplats. All of Occupational Diseases (MBOD). passed away due to HIV-related these patients had recently travelled At Impala Rustenburg, where the illnesses during the year (compared to malaria areas and were majority of cases are diagnosed, all with 73 in 2015), while 377 patients successfully treated. cases are submitted to the MBOD via applied for permanent medical O Medical aid and non-occupational the Rand Mutual Assurance Company incapacity as a result of HIV-related medical care: During 2016 the for independent third-party evaluation. disorders and left the Group. Impala Medical Plan (IMP) received This improves the reporting and O Pneumoconiosis: The risk of 1 459 new applications (2015: 3 023) compensation process for contracting silicosis at our operations and membership of medical aids employees. An analysis of unpaid is extremely low due to the very low increased by more than our targeted claims at the Compensation levels of alpha quartz in the rock 5% annual increase. At year end, the Commissioner for Occupational mined. Measured dust concentrations IMP had 23 227 members (2015: Diseases (CCOD) is being undertaken are well below 50% of the 22 231), of whom 12 014 across the industry. Impala Medical occupational exposure limit (OEL) and are dependants (spouses, children Services has been informed by the meet the industry milestone level of and pensioners). The cost of CCOD of the unpaid claims of former 1.5 mg/m3 set for 2024. Real time external medical schemes is employees and is resubmitting the dust monitors have been installed at becoming prohibitive for many information and banking details for high-risk locations underground to employees and we strive to ensure payment. detect potential excessive dust that the IMP maintains affordable contribution levels. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 49
Medical aid membership records. This will assist with our Noise-induced hearing loss 2016 2015 management of patients on chronic O The rebaselining of employee cases Medical Principal Principal medication programmes and the using the industry’s revised formula scheme members members identification of high health risk for calculating NIHL will assist us in Impala employees. achieving the new noise milestones. Medical Plan 8 997 8 568 O Ensuring further mitigation of risks We will roll out noise clippers to all Commed 1 729 1 700 relating to specific occupational underground and employees at risk chronic illnesses, TB and HIV/Aids, who will receive custom made and Umvuzo 802 805 as well as NIHL fitted HPDs and we are on track to Discovery Health 605 639 ensure that no equipment exceeds TB and HIV/Aids Fedsure 215 254 107dB, in 2017. O Provide six-monthly screening of all HIV-positive employees, annual Silicosis will continue to receive political Our health focus for 2017 and screening of all other employees, and media attention due to the class beyond improve our assessment of TB risks in action being taken by ex-gold mining In striving to deliver on our strategic contractors, provide contact tracing in employees against their former priorities, we will focus on the following communities and Isoniazid preventive employers. Implats’ direct liability in this health-related areas in the year ahead: therapy. We aim to increase ART regard is limited. However, there is a risk uptake by HIV-positive employees by of indirect effects and increased indirect Striving for zero harm 5% and maintain a 95% compliance costs due to cross subsidisation through O Every employee to be screened rate. Ongoing monitoring of ART an industry fund, which we will focus on annually and any occupational ill compliance is vital as there is a limiting. health detected will be treated and growing risk of rapid viral resistance reported early. We will be further as a consequence of non-compliance We aim to increase private membership integrating occupational and clinical or interruption of therapy. of medical aid schemes by a further 5% care information as well as sick leave during the year.
NIHL submitted for compensation VCT interventions
2012 63 2012 9 820
2013 50 2013 11 782
2014 36 2014 10 086
2015 49 2015 11 875
2016 61 2016 10 867 FY16: 61 (24% deterioration) FY16: 10 867 (9% deterioration)
Aids deaths in service TB
2012 112 2012 389
2013 69 2013 334 improvement) 2014 68 2014 268
2015 73 2015 304
2016 57 2016 171 FY16: 57 (22% FY16: 164 (44% improvement)
ART Medical incapacity
2012 3 566 2012 699
2013 4 039 2013 588
2014 4 276 2014 331
2015 4 429 2015 505
2016 4 843 2016 377 FY16: 4 843 (9% improvement) FY16: 377 (25% improvement) SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 50
Attracting, retaining and developing talent
Attracting and retaining talent and Our strategic approach have an innovative and tailor-made enhancing the productivity of our to people people strategy that positively impacts workforce remains a significant challenge Our approach to securing talent focuses employee morale and through talent and for the mining industry as a whole. on ensuring our employees are skills development initiatives aimed at Factors contributing to the challenge of motivated, have the ability and requisite developing individuals and teams securing talent in our operations include skills to carry out their duties and informed by our shared values founded the growing competition for skilled operate in a safe, fair and ethical work on respect and care. resources, the reduced supply of skilled environment. and semi-skilled mining talent, generally Our longer-term vision is to progressively low education levels in our semi-skilled Our people strategy aims to support the mechanise our mining processes, while talent pool and the traditionally poor overall corporate strategy by ensuring continuing to improve levels of workforce image of the mining industry as a that we have the right people, at the proficiency, satisfaction and diversity. potential employer. right place doing the right things. We
Our strategic approach to people
t 7BMVFPGSFTQFDUBOEDBSF t Diversity and transformation Fair, ethical and sustainable t Sound corporate governance organisation t $PMMBCPSBUJWFSFMBUJPOTIJQTXJUIVOJPOT t Effective engagement with employees t 3FTUSVDUVSJOHPG&3GVODUJPO
Effective people
t"MFBSOJOHNPEFM t 3FNVOFSBUJPO t5BMFOUNBOBHFNFOU People People with who are t 3FDPHOJUJPO t5FBNNPCJMJTBUJPO potential motivated t 3FXBSE SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 51
Motivating our people us to find opportunities to increase Our skills development, talent In return for the skills, capabilities and productivity levels, while seeking to management and team mobilisation experience our employees bring to our further enhance efficiencies. activities focus on three main areas: business, we aim to offer a unique O optimising team output and employee value proposition (EVP) and a Another strategic focus is to provide productivity; great place to work. Our EVP outlines career advancement opportunities. O developing our talent pipelines; and the benefits and opportunities of working We conduct career paths for all O maintaining an inflow of requisite skills at Implats, encompassing our disciplines. Succession planning is (see table below). programmes and initiatives relating to undertaken at semi-skilled and employee housing, skills development, supervisory level positions as well as at These are all critical enablers to increase health and financial reward. We professional qualified (D level) and senior intellectual capacity within the Group and communicate it widely through posters, management (E level). Discipline-specific facilitate succession planning and graphics displayed in the workplace and talent management forums and area- advancement activities, thus reducing in shopping malls. The underlying specific talent identification forums our reliance on the external market for message is: if you work for us, this is identify, develop and assess talent as these skills. We emphasise developing what you will enjoy. a line management function with the strong safety-conscious supervisory support of the talent department. leadership, which is essential to A strategic focus area is recognising and We review and assess our talent pools individual and team performance. Our rewarding performance with appropriate quarterly to ensure that identified talent targeted leadership interventions focus remuneration. Through our performance is considered for promotional and on developing the technical ability of management programme we have developmental opportunities and share managers and to ensure they have committed to offering attractive the outcomes with management and people leadership skills. remuneration and employment benefits, unions at our transformation committees. together with effective incentives linked Talent development also supports the to our safety and production efficiencies. Developing people with ability attainment of our employment equity We undertake regular benchmarks of Our training and skills development targets in our South African operations. pay and conditions to ensure we remain activities go beyond compliance to We aim to more effectively evaluate competitive. As with the other promote a people-focused culture, with the return on investment on training companies in the sector, the last two programmes aligned to Implats’ strategic initiatives, for example increased years have put pressure on our fixed-pay imperatives and values aimed at instilling productivity as a result of our team elements and employees’ disposable excellence in efficiency, productivity mobilisation initiative, an improved income, further highlighting the need for and safety. safety culture reflected in our lost-time frequency rates and employee satisfaction as reflected in turnover rates. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 52
Attracting, retaining and developing talent
Our skills development, talent management and team mobilisation activities Optimising team output Developing our Maintaining an inflow and productivity talent pipeline of future requisite skills
Objective Objective Objective To ensure the development and retention To minimise avoidable turnover, secure To improve education within our of talent with the requisite skills, the best available talent in the market, neighbouring communities, identifying knowledge and experience, in an and recognise, develop and reward talent and developing skills in local schools, as environment conducive to maintaining within the organisation. part of efforts to recruit from our local continuity and improving safety and communities. productivity. Key initiatives Key initiatives Key initiatives O Team mobilisation: developing O Supervisory leadership: developing O Novice mining training: training teamwork, mining cycle management capacity to effectively lead and young people (with Grade 12 and respect among team members, mobilise their teams. The programme qualification) from the local and ensuring that mine overseers and for mine overseers and shift community in mining skills supervisors are equipped to supervisors has been expanded to O School adoption programme: effectively lead and mobilise their include engineers, foremen and developing management and teams artisans infrastructure at targeted schools O New technology training: mitigating O Mining training: training centres O School support programme: the human element risk from our at Impala Rustenburg to develop mentoring educators, developing activities and promote a safety culture mining skills school sporting facilities, offering O Technical mining training: ensuring O Engineering training: training Impala bursaries to top achievers that line managers and supervisors centre to develop artisan and O Bursary programme: offering fully are kept informed about evolving engineering skills paid high-school scholarships, and standards and regulations, and new O Graduate development training: offering university bursaries to learners technologies awarding mine manager and mine in mining, chemical, electrical or overseer certificates, in support mechanical engineering of joining the Implats graduate O Career exhibitions: sharing training programme information at local schools on mining O ABET: offers full and part-time classes careers and our bursary programmes to ensure career progression and functional literacy and numeracy
Developing a fair, ethical and O Skills turnover: Total employee O Skills development at our South sustainable organisation turnover increased to 8.2% in 2016 African operations: Our skills We are committed to providing a work (2015: 5.1%); of this, 1.7% is due to development activities focus on three environment informed by mutual trust, headcount reduction initiatives in main areas: technical skills, general respect and care. We do so through our certain categories. Adjusting for the education and people management Respect, Care and Deliver programme rationalisation, Implats’ turnover rate skills. During the year, we continued (see page 57), by maintaining high has remained low. Turnover of miners to implement the following targeted standards of corporate governance and at our South African operations was initiatives: ethical behaviour throughout our 10.2% for the year, compared with – Team mobilisation: Over the past activities (page 35), and by driving 10.7% last year. Turnover of rock drill three years we have been rolling diversity and transformation in our South operators was 7.8%, compared with out this in-house people leadership African operations (page 58). 5.1% last year. Turnover at our training initiative to all our Zimplats operations was 6.3% production teams. The five-day Our 2016 performance on (2015: 4.3%). onsite course aims to promote a people management O Absenteeism: Improving productivity shift in attitude and behaviour to A summary of our performance on key is a critical focus and important in improve safety and production human resource issues for the 2016 view of the reduced headcount. performance while enhancing financial year is presented below. teamwork and relationships. Additional detail at an operational level over the past four years is presented in the performance tables on page 122. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 53
The programme is revisited as three-day ZIP training. To further O Bursaries and learnership operational requirements change. embed the ZIP concepts programmes: Over the course of To date we have trained 316 teams throughout the Group, this year 2016, our South African operations and a further 245 active teams are ZIP training was provided to had 33 full-time bursary holders (of still to be trained. We aim to train 25 supervisors as part of the which 82% are HDSA) at university, five teams per week. supervisory leadership course. studying primarily in the engineering – Supervisory leadership: Aimed at – Occupational health and safety and mining-related disciplines. In enhancing the capacity of mine skills training for safety addition, 175 engineering and 98 overseers and shift supervisors to representatives: All health and mining learners from Impala lead and mobilise their teams safety representatives at our South Rustenburg benefited from our artisan effectively, the programme has African operations undertake and non-artisan learnership been expanded to include the 10-day accredited MQA programmes (96% HDSA). engineers, foremen and artisans. skills programme. This year, O Adult basic education and training This year, 25 employees 437 representatives were trained. (ABET) and Foundational Learning participated in the four-day – School adoption programme: Competence (FLC): The average programme, which includes one Implats works closely with the level of basic literacy across the day of ZIP training. Miner, shift South African Department of Group’s workforce is 94%. At Impala supervisors and mine overseer Education to adopt a selection of Rustenburg the level is the lowest at forums have been established at all community schools that we have 82%. The total enrolment for ABET the shafts to engage and deal with built or that are in our mining lease across South African operations was line supervision issues. area but that do not benefit from 494 people (2015: 421). However, – Technical mining training: This existing support programmes. In due to drop outs, unsuccessful five-day training programme for 2016 we adopted three schools completions and exam completions, supervisors, including mine and now have 10 schools in the the net total enrolment at year end managers, mine overseers, shift scheme, which we aim to develop was 173 (2015: 292). supervisors and miners, covers into schools of excellence though O Promoting local employment: aspects of managing a half-level academic and sport initiatives. Open days are held at various production section safely and O Skills development expenditure: shopping malls in neighbouring effectively, with emphasis on The current focus on cost communities to present the planning with the participation of containment and cash preservation opportunities available at Implats. the multi-disciplined technical resulted in reduced spending on Despite efforts to hire more local teams. This year, 1 609 supervisors developmental training this year. Our people, migrant workers continue to were trained. South African operations invested play an important role in the industry, – Zero Incident Process for R512 million, compared with particularly for rock drill operators and Leaders (ZIP): The best-practice R523 million in 2015. Expenditure winch operators, who come ZIP initiative is designed to was 5.2% of payroll for Impala and principally from the Eastern Cape, empower people to take control of 7.1% of payroll for Marula, against our North West, Northern Cape and their personal safety by becoming targeted level of 5%. At our Lesotho. We continue to invest in more effective within the systems Zimbabwean operations, we spent various skills development initiatives in they work in. Last year all D and E US$4.9 million on skills development, our local communities and seek to level management attended the compared to US$5.3 in 2015. promote local employment through our local procurement practices (see page 74). SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 54
Attracting, retaining and developing talent
Total HRD expenditure at our South African operations (excluding mandatory skills development levy) in FY2016
Rustenburg Marula Springs Total Training area R million R million R million R million Non-artisan learnerships L2&3 rockbreaker 12.6 3.2 0 15.8 Artisan learnerships 30.9 5.6 4.7 41.2 ABET training 10.7 1.9 0 12.6 Other training initiatives 363.8 55.2 13.4 432.4 Bursaries and scholarships 2.5 0.7 0.3 3.5 Transfer of skills and capacity building of mine communities 3.6 1.7 0 5.3 Other school support and post-matric programmes 0 0 0.9 0.9 Total 424.1 68.3 19.3 511.7
Our focus on people maintain continuity and improve employees from the current 74% to management for 2017 and safety and productivity 81% by 2021 beyond O Increase supervision and leadership O Address potential skills shortages To implement an effective people skills and introduce best practice through in-house technical trainee strategy that promotes a people- technical initiatives programmes, capacity-building at focused, safety conscious culture and O Continually evaluate the current miner supervisory and managerial level, and meets our business requirements, our training system and improve on it enhanced people-leadership initiatives key objectives are to: O Redeploying employees at Impala O Promote our employee value O Retain key talent (mine overseers, Rustenburg as we restructure the proposition and develop a pipeline of shift supervisors, miners, engineers, operations and seek to resource them talent in schools, to support our foremen and artisans); this is vital to for optimal delivery. We intend to efforts to recruit from communities increase the proportion of production around our operations
Promoting financial well-being
At our South African operations, we focus on providing are referred to financial advisers (Careways), who provide opportunities to assist employees with financial literacy, debt counselling and debt consolidation services. planning and assistance. Many of our employees are Management and union leadership are working closely to struggling with a level of personal debt that is difficult to appoint a second service provider before end 2017. manage and this is a major concern. Following are key O Debt auditing: Implats employs an experienced former interventions: sheriff of the court to identify and curb fraudulent O Financial literacy: Financial literacy training is part of garnishee orders. All court orders served on employees our team mobilisation process and ex-leave training. We at our Impala Rustenburg operations are audited. Where offer a one-day financial life skills course to explain breaches of the rules relating to judgments and employee payslips, focusing on providing employees emolument attachments are identified, court proceedings with an understanding of the pay structure, benefits and are instituted. Employees with excessive debt and/or deductions, overall impact on net pay and managing with an emolument attachment are identified and offered their budget and debt. assistance as soon as possible. O Debt monitoring and consolidation: Payroll officials O Unscrupulous lenders: Implats participates in efforts to record and monitor the indebtedness status of tackle unscrupulous lenders, all of whom are removed employees and monitor trends for discussion and from hostels and mine property. Legal action is taken corrective interventions. Employees with excessive debt where necessary. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 55
Investing in employee relations
Maintaining stable and constructive regularly submitted from the operations National Mine Workers Union of labour relations is critical to enable our to Exco. An independent third party Zimbabwe (NMWUZ). people to consistently deliver on conducts biannual surveys on the business plan targets. The incidents effectiveness of our labour relations. We We carefully monitor the mining sector- before, during and after the five-month respect the independent status of unions wide state of industrial relations and the strike across the Rustenburg platinum and the right of our employees to wage negotiations environment. Our belt in 2014 brought to the fore the need associate and we strive to ensure full monitoring activities include holding to rebuild trust between business, labour compliance with local labour legislation, round table discussions with labour and government. Over the last two which is in alignment with the provisions analysts, tracking developments on years, collaborative efforts have of the International Labour Organisation social media, participating in the forums stabilised the industrial relations climate (ILO). We work closely with unions to hosted by the Chamber of Mines, and and union dynamics have improved. The resolve all internal disputes through through our Impala future forum, a body potential for volatility remains and is dispute resolution mechanisms and (in that includes representatives from the heightened by the difficult market South Africa) within the auspices of the Rustenburg local municipality (RLM), the conditions increasing labour tension. We Commission for Conciliation Mediation Royal Bafokeng Nation/Administration remain mindful of the lessons learnt from and Arbitration (CCMA). We prohibit any (RBN/A) and representatives from unions the strike and are encouraged by many attempt to differentiate between people and Impala management. positive developments in our relations on the basis of colour, religion, gender or with employees and unions. creed, other than as part of conscious Prior to wage negotiations we hold efforts to promote diversity and business planning meetings with union Our approach to employee transformation. representatives. We provide externally- relations run negotiation training and bargaining Our employee relations (ER) vision is to Currently 84% of permanent employees courses for shop stewards. This year foster a dynamic and sustainable in South Africa, and 92% of employees saw the opening of a new wage partnership with our employees and their in Zimbabwe are covered by collective negotiation period and our preparations representative bodies, with the aim of bargaining agreements. These for this are discussed below. becoming the best employer in the agreements address salary and benefit platinum industry. Our ER mission is to reviews, the participation of unions in Our 2016 performance on ensure our people are treated with decision-making at different forums and employee relations respect and care, fairly rewarded for their consultation and notice periods Following is a review of our progress in contribution, empowered to raise their regarding any significant organisational striving to deliver on our strategic goals concerns, safely engaged in their daily changes. The minimum notice period for for employee relations and our approach duties and able to deliver on their any organisational change at Implats to mitigating key risks in the year ahead: organisational goals. is 30 days. Strengthening relations with trade To achieve this we have maintained a In South Africa, of the unionised unions focus on the following strategic goals: workforce, the Association of We have continued to strengthen our O Ensuring high levels of employee Mineworkers and Construction Union relationships with the AMCU national engagement, based on the shared (AMCU) has the following representation: leadership and its elected values of respect and care Impala Rustenburg 75.17%, Impala representatives at Impala Rustenburg O Establishing collaborative relationships Springs 0%, Marula 81.57%. The and have good relations with its with all unions in a multi-union National Union of Mineworkers (NUM) representatives at Marula and at Impala environment has the following representation: Impala Springs, as well as with the NUM O Empowering frontline management to Rustenburg 3.31%, Impala Springs representatives at these operations. engage effectively with employees 51.13%, Marula 6.38%, and United Throughout the Impala Rustenburg Association of South Africa (UASA) as operations, we have undertaken Our labour relations policy deals with representivity at Rustenburg and Marula relationship-building sessions, working freedom of association, recognition of at 5.73% and 1.57% respectively. In within the structures outlined in the trade unions, discrimination and the Zimbabwe, the Associated Mine Workers recognition agreement. We follow a rights of employees and contractors. We Union of Zimbabwe (AMWUZ) comprises structured approach, conducting regular constantly monitor the state of labour 76% of the unionised workforce, with the dialogue with employees and union relations in our operations, with reports remaining 24% being members of the officials regarding workplace issues. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 56
Investing in employee relations
We have continued to implement a including social media and sms, is very Preparations have included education capacity-building training process for effective in bridging physical constraints programmes for the union officials and shop stewards, undertaken by an to up and downward communications. information sharing with all employees. external service provider. These interventions are progressing well. The union and employees are kept We also have interventions aimed at informed about the Company’s As part of the agreement that ended the empowering supervisors and managers performance and operating context and strike in 2014, we committed, with all to effectively engage their workers on of the implications for meeting union other parties, to continue talks on important issues and build trust. demands and employee expectations for various outstanding labour challenges. a wage settlement. This year our shop The relevant task teams have worked Labour reduction at Impala stewards received training in terms of throughout the year and gained traction Rustenburg disciplinary cases and wage in addressing the following key issues: Due to the challenging market and to negotiations. indebtedness; retrenchment and support competitiveness and severance; retirement benefits and sustainability, we have had to close Elections and appointment of new funeral cover; medical separation and shafts and reduce headcount at our shop stewards incapacitation; and housing and living Impala Rustenburg operations. At the The current AMCU part-time and conditions. Changes to the employee end of last year we issued Section full-time shop stewards were elected share ownership scheme (discussed 189 notices in terms of the Labour during July 2013 for a period of three below) and a new agreement for the Relations Act to retrench workers and years. The election and appointment of severance package of two weeks for held negotiations with AMCU on the new shop stewards will be in terms each year (double basic conditions), processes. This included agreeing to of the union constitution and the have been well received. Other reduce the number of proposed recognition and procedural agreement challenges remain and will continue to retrenchments and providing retrenched entered into between the Company and be addressed. employees with the opportunity to AMCU. Implats will seek to manage the acquire a portable skill. Following challenges that often arise prior to and This year, the strong collaboration with conclusion of the Section 189 process, after the election of new leadership. We AMCU underpinned our ability to reach of the 1 609 employees affected at the will be implementing capacity-building agreement on rationalising the workforce operations, 1 048 employees (65.2%) initiatives aimed at empowering the at Impala Rustenburg and negotiating a were redeployed, or were retrained and newly elected shop stewards with the positive outcome with no industrial reclassed to unaffected occupations. skills and knowledge required to fulfil action taken. The relationship was also Voluntary severance packages were their roles and responsibilities as crucial in the search and rescue granted to 349 employees (21.6%), and union leadership. operation and redeployment of half of 208 (12.9%) were retrenched. A total of the workforce following the fatal fire at 258 completed portable skills training New employee share ownership Rustenburg 14 Shaft. and this training opportunity is ongoing schemes for those who left the Company. Overall, The Group launched a new employee Engaging directly with employees 1 700 permanent employees left Impala share ownership plan (ESOP) which now We have seen encouraging results from Rustenburg operations since July 2015 holds 4% of the issued shares in Impala measures introduced last year to ensure due to a combination of natural attrition Rustenburg. This was by establishing a effective communication directly and the Section 189 process. In trust to hold the shares on behalf of the between management representatives addition, 3 319 contractors have also employees. The trust is consolidated and and employees at all levels. This includes left Impala. any future dividend from Impala a structured two-way communication Rustenburg paid to the trust will be model that cascades information and Wage negotiations expensed as a salary cost on the Group. feedback from weekly executive Implats has developed a wage The pre-existing ESOP, which is management meetings all the way to negotiation strategy and implementation managed through the Morokotso Trust, half-level meetings. We complement this plan aimed at mitigating the risks will terminate in July 2016. In November with periodic surveys of employee associated with this process. 2015, the NUM signed an agreement opinions, as well as engagements Preparations for wage negotiations have with our JV, Two Rivers Mine, to through briefings, CEO addresses and been ongoing throughout the year. Items introduce a short-term employee general manager feedback from daily, outstanding from the 2014 settlement empowerment scheme in the form of a weekly and monthly meetings at shaft have been given attention by an cash benefit. The scheme will benefit level. The increasing use of technologies, AMCU-management plenary. employees permanently employed in grades A to C. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 57
Promoting our respect and care production. This year we completed a O Develop effective relations with initiative diversity survey at our operations to communities to manage risks To embed our values into our key understand perceptions on issues associated with local municipal activities we are advancing our cultural relating to the implementation of our elections change management programme values, our approach to managing O Ensure constructive wage premised on Respect and Care diversity and women in mining, and negotiations and subsequent principles, which focus on respecting our human resource processes, implementation of the wage one another and caring for the Company, among others. agreement its people and the environment. The O Carefully manage the election of new intervention was informed by the Maintaining sound labour relations shop stewards in 2017 outcome of targeted engagements at Zimplats O Work actively with our industry with our employees in 2013 and 2014, We have continued to maintain partners, government, union leaders which highlighted the need for a culture constructive relationships at our and other stakeholders to address the change in the organisation through Zimbabwe operations, with no labour challenges raised by employees greater transformation and leadership action experienced throughout the year. during the strike in 2014 development. The workforce at Zimplats has responded well to Company initiatives, We continue to participate in relevant Each operation is implementing a plan including the home ownership scheme. forums at the Chamber of Mines, to drive the Respect, Care and Deliver including those relating to: the migratory programme. These include holding Our focus on employee labour system; the nature of the employee wellness and social events, relations for 2017 and beyond majoritarian system; labour hire and engaging on specific work issues and To maintain a stable employee relations employment agencies; the secondment hosting activities to encourage environment our priorities are to: of shop stewards to the regional and responsible living. This is supported by O Continue to focus on securing national institutions of the union; the our team mobilisation initiative, which effective and positive relations with establishment of life skills centres; and aims to inculcate respect among team employees and unions, to mitigate the mining housing initiatives. members and a duty of care to rebuild risk of industrial action relationships and ultimately deliver safe SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 58
Promoting diversity and transformation
Our commitment to employee diversity is Implats came second out of The Department of Mineral Resources driven by the belief that a more diverse 131 companies in the Department released the reviewed Broad-Based organisation is ultimately more of Labour’s inaugural EE Awards Black Economic Empowerment competitive. Encouraging diversity is an launched by the Commission for (B-BBEE) Charter for the South African important part of our efforts at promoting Employment Equity (CEE). Awarded in mining and minerals industry on 16 April broader socio-economic transformation October 2015, the judging process 2016 for public comment. The targets in the communities in which we operate. included site visits from the department. for the EE element have been amended The award was for “excellence in to reflect the B-BBEE EE targets. The Our approach to diversity recognising overall achievement in Chamber of Mines and Implats drafted Implats is committed to continuous implementing employment equity” and position papers on the draft Mining transformation on employment equity. considered our performance in the Charter and proposed an amended Our diversity and employment following areas: scorecard and EE targets. equity strategy at our South African O Sustainability: The representative operations focuses on addressing transformation forums and assigned Driving the advancement of women the following issues: EE managers have assisted in We strive to empower women working O Meeting and exceeding the legislated achieving significant progress at the in the mining industry and ensure that employment equity targets within the skilled level, ensuring a healthy talent mining becomes a profession that is Mining Charter and Employment pool and providing opportunities for attractive to women. Our transformation Equity Act, with a focus on upward mobility and career committees and talent management management and Exco positions advancement. forums have placed increased emphasis O Integrating transformation and O Diversity: Diversity management is on identifying high-potential female employment equity considerations embedded in and aligned with the candidates for placement and promotion within our talent-management business strategy, succession opportunities. activities and retaining key talent, planning, and talent management and aiming for turnover of less than employee engagement. There has been good participation 7.5% per annum O Integrity: EE forms part of our senior this year within our mining training O Accelerating the recruitment, management balance scorecard and programmes. Women represented development and promotion of performance management system 33% of mining graduates for the 2016 designated groups into occupational and is coupled with an effective financial year, including 67% of mining levels that are underrepresented tracking and measurement process diplomas. O Advancing the representation of integral to the business strategy. We women in mining, supervisory and view EE as a business imperative, The women in mining safety forum at management positions rather than a compliance issue. our Impala Rustenburg operations O Inculcating a corporate culture and O Innovation: We promote the convenes monthly and is functioning value system to advance integration of transformation and well, with a focus on improving working transformation, supporting the cultural EE considerations within our talent- conditions for women. The forum transformation strategy for the South management activities, by comprises management, safety African mining industry accelerating the recruitment, department representatives and women development and promotion of representatives from each shaft, with The Group transformation committee designated groups into occupational the agreement of the three HSE branch and Implats’ operational employment levels that are underrepresented. committees. equity (EE) structures follow a common O Consistency: Regular transformation framework aimed at driving the strategy meetings take place and reporting This year, the Impala Rustenburg throughout the Group. All our operations formats are aligned for all operating transformation steering committee have appointed EE managers and units. All committee members have established a women in mining task functional representative transformation been trained on EE requirements to team that focuses on analysing women committees. We are into the second year empower them with a better representation and movement per of our five-year employment equity plan understanding of the legislative department and level. The team’s (2015 to 2019). requirements. All annual reports have objective is to implement and monitor been submitted to the Department of strategies to assist advancing women, Labour timeously. monitor unfair discrimination and make recommendations on the acceleration of recruitment, development and promotion of women in mining. SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 59
Our 2016 performance on representation at management levels At Zimplats, women accounted diversity was 53%, up from 51% the previous for 33% of all surface engagements We made good progress this year in year. We had 137 women represented this year, far surpassing our target promoting equitable representation at all in management, representing 19.9% of of 10%. The number of women in mining levels and remain well positioned relative total management, up from 17% the is improving year on year, currently to our competitors. At year end, we had previous year. Our overall representation constituting 7% of the total Zimplats achieved and in most cases exceeded of women remained at 11%. workforce. the Charter’s targets (see table below). Representation of women in mining development programmes continues to At our South African operations, improve in all mining training streams. the aggregate level of HDSA
HDSA in management (South Africa) 2016 2015
Mining Total Mining Total Charter number of HDSA Charter number of HDSA target HDSA employees/ employees/ target HDSA employees/ employees/ % % members members % % members members
Board 40 58 12 7 40 63 16 10 Exco 40 44 9 4 40 44 9 4 Senior management 40 47 88 41 40 40 99 40 Middle management 40 47 196 92 40 46 211 98 Junior management 40 57 397 226 40 56 425 239 Total management 53 702 370 51 760 391
HDSA excluding non-executives is 363, which represents 52% of management. Senior management representation is E levels (excluding Exco), middle management is D upper and junior management is D lower.
Employment equity at our South African operations Total HDSA Level Total in service employees % HDSA
F – Top management 4 2 50 E – Senior management 92 42 46 D – Professionally qualified 593 318 54 C – Skilled technical 4 875 3 801 78 B/A – Semi-skilled and discretionary decision making/unskilled 28 862 25 449 88 Total permanent 34 426 29 612 86 Non-permanent employees 35 32 91 Total 34 461 29 644 86 SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 60
Promoting diversity and transformation
The tables below summarise the representation of indigenous people at our Zimbabwean operations.
Indigenous people representation at our Zimbabwe operations .JNPTB Number of % indigenous Number in- indigenous Level people service employees
F – Top management 100 7 7 E – Senior management 100 12 12 D – Professionally qualified and experienced specialists and mid-management 100 72 72 C – Skilled technical and academically qualified junior management 100 104 104 B – Semi-skilled and discretionary decision making 100 125 125 A – Unskilled and defined decision making 100 359 359 Total 100 681 681
;JNQMBUT Number of % indigenous Number in- indigenous Level people service employees
F – Top management 0 0 0 E – Senior management 100 21 21 D – Professionally qualified and experienced specialists and mid-management 100 76 76 C – Skilled technical and academically qualified junior management 99.8 912 909 B – Semi-skilled and discretionary decision making 99.9 1 490 1 489 A – Unskilled and defined decision making 100 548 548 Total 99.9 3 047 3 043 SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE Implats Sustainable Development Report 2016 \ PAGE 61
Mining training programmes in South Africa 2016 Total number of participants Female participants % female Mining training streams 51 17 33 Mining diplomats 3 2 67 Mining trainees 17 1 5 Bursary students 40 12 30 Learnerships (Level 2 and 3) 102 11 11 Rock breaker qualification obtained 41 6 15
Our focus on diversity for 2017 and beyond Our key objectives for the year ahead are to: O Focus on promoting diversity in the organisation and the advancement of historically disadvantaged HDSAs and women across all our South African operations O Eliminate transformational barriers and empower operational transformational forums to advance equity O Focus on retaining talent and promoting from within the organisation O Address amendments in the new Mining Charter and ensure provision for women representation O Continue to focus on representation of HDSAs at senior management level The sustainability of our mining activities depends on our ability to contribute to the well- being and prosperity of our mine communities. Social capital and licence to operate SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 64
Our strategic approach to maintaining our social licence to operate
We are committed to driving legislated transformation requirements, investing in socio-economic development and engaging with community representatives and government officials at all levels.
The sustainability of our mining activities prioritised our focus on driving legislated at all levels. We are committed to depends on our ability to contribute to transformation requirements, investing in meeting the transformational objectives the well-being and prosperity of our mine socio-economic development and of the countries in which we operate communities. To build and maintain our engaging with community through the empowerment of historically social licence to operate, we have representatives and government officials disadvantaged South Africans and indigenous Zimbabweans.
Our strategic approach to social capital and licence to operate
t 4PDJBMJOWFTUNFOUT t Enterprise development and preferential procurement Social t Housing and living conditions interventions t 4USBUFHJDDPMMBCPSBUJPOJOSFTFBSDI t 4USBUFHJDDPMMBCPSBUJPOJODPNNVOJUZ development
Social licence t Implementation of to 4PDJBMBOE-BCPVS1MBOT t4UBLFIPMEFSSFWJFXBOE operate t 3FTQPOEJOHUPUIF mapping Stakeholder Mining Charter t3FJOGPSDFNFOUPG t Compliance with the engagement and engagement Legal #SPBE#BTFE#MBDL communication and compliance structures and methods responsiveness Economic Empowerment Act t3FMBUJPOTIJQCVJMEJOH t Compliance with indigenisation laws of ;JNCBCXF SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 65
Our social and economic value added
*NQMBUTPQFSBUJPOTNBLFBQPTJUJWFDPOUSJCVUJPOUP TPDJPFDPOPNJDEFWFMPQNFOUJO4PVUI"GSJDBBOE;JNCBCXF
We provide employment, skills and training for our employees, we pay taxes and royalties to governments and dividends to our shareholders, we purchase goods and services from local businesses and we invest in the development and improvement of infrastructure and other social services in the communities that are home to our employees.
A detailed breakdown of the economic value added in FY2016 is provided in the following table: Value added statement 2016 2015 2014 2013 2012 for the year ended 30 June Rm Rm Rm Rm Rm
Revenue 35 932 32 477 29 028 29 844 27 393 Net cost of products and services (16 031) (18 855) (17 091) (14 542) (13 463) Value added by operations 19 901 13 622 11 937 15 302 13 930 Other net (expenditure)/income 396 903 153 (185) 1 152 Depreciation (3 626) (8 877) (3 341) (3 332) (1 629) Total value added 16 671 5 648 8 749 11 784 13 453 Applied as follows to: Employee benefits 16 089 10 224 7 609 8 276 6 521 Labour and other 16 068 10 414 7 378 8 374 6 894 Share-based payments 21 (190) 231 (98) (373) The state as direct taxes 284 1 459 706 1 080 1 109 Deferred tax (841) (1 676) (562) 312 698 Royalty recipients 516 (575) 693 674 598 Providers of capital 693 (121) 666 1 008 3 731 Financing costs 620 355 432 375 248 Non-controlling interest 27 (476) (137) 53 119 Dividends 46 0 371 580 3 364 Total value distributed 16 741 9 311 9 112 11 350 12 657 Reinvested in the Group (70) (3 663) (363) 435 796 16 671 5 648 8 749 11 785 13 453 SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 66
Our social and economic value added
During 2016, we created value for our various stakeholders in the form of: Skills and training spend in Taxation and royalties paid to government excluding PAYE in South Africa South Africa R512 million R639.8 million in Zimbabwe US$31.3 million
Investments in socio-economic development initiatives in our communities Employee wages and benefits In South Africa R16 089 million R104.6 million In Zimbabwe US$4.7 million Skills development in Zimbabwe US$4.9 million Payments to suppliers and contractors In South Africa R6 100 million In Zimbabwe Payment to providers of capital US$252 million R693 million
Taxation We recognise government efforts to in-country smelting and beneficiation Our tax contributions are a critical become more efficient in the collection alternatives. In 2015, the Davis Tax element of the overall economic and distribution of taxes and to ensure Committee reviewed South Africa’s tax contribution we make to host the tax regime is applied consistently. In policy framework and its role in a wider governments and communities. We August 2015, the Government of social and economic framework. The ensure good tax governance and our Zimbabwe introduced a 15% export tax committee’s first interim report came out operations are required to comply with levy on unbeneficiated PGMs, earlier broadly in favour of retaining the status legal obligations and responsibilities in than expected. Our Mimosa operations, quo and taxing mining companies at the relation to tax affairs. Our approach to with the Chamber of Mines, has same rate as other corporate taxpayers. tax supports the principles of engaged authorities to have the levy Implats has provided feedback through transparency and proactive engagement deferred to 1 January 2017. Mimosa is the Chamber of Mines. with tax authorities, governments and assessing the viability of a number of other relevant stakeholders.
Implats has supported the principles of Implats taxes paid directly to government by category and country* the Extractive Industries Transparency Initiative on the disclosure of payments South Africa Zimbabwe (Rm)** (US$m)*** since 2012. Our tax practitioners act in accordance with sound business Profit taxes 560.8 24.8 principles, supporting commercial Employee PAYE 1 497.9 14.6 decision makers and ensuring the Royalties taxes 79 6.5 business is compliant in the collection Total 2 137.7 45.9 and payment of taxes to governments. * Reporting in line with the Extractive Industries Transparency Initiative (EITI) Tax matters are governed through the ** Excludes Two Rivers finance department and oversight is *** Excludes Mimosa provided by the audit committee of the board. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 67
Investing in community development – South Africa
The challenging social context in South management. The plans are aligned with Impala Rustenburg has made progress Africa highlights the need for sustainable the municipalities’ Integrated with the projects prioritised last year in community development as a Development Plans (IDP). The SLP aims consultation with the MCLEF. These commercial and social imperative. Many to address the developmental needs of relate to the infrastructure development of our operations are in rural areas these communities. The plans are for schools, community centres, sporting characterised by limited formal economic reviewed and revised where necessary, facilities, offices, roads and storm water activity, high levels of poverty and including prioritisation of projects. reticulation. unemployment, inadequate provision of infrastructure and poor service delivery. During the year, a high-level strategic Implementation of our Marula SLP has Our mines represent a centre of socio- forum was established with the Royal continued to face challenges and delays economic activity and an important Bafokeng Administration (RBA) and the due to fragmentation and escalating source of welfare. There is growing Rustenburg Mayor’s office with quarterly unrest in neighbouring communities. At frustration and community activism in meetings in place. These are proving the core of the communities’ demands many of our communities, particularly highly effective in strengthening relations are employment, skills development, among the unemployed youth. and delivering on objectives. procurement opportunities and enterprise and infrastructure Social interventions Performance is monitored and reported development. This has exposed the Social investment quarterly to the social, transformation mine to unauthorised protest marches Our management approach to social and remuneration committee of the and vandalism. Various spheres of investment board. Every year we commission an government have been approached to Investing in developing the communities independent review and assessment of intervene and are on board to assist with around our operations is formalised in the socio-economic impacts of most of the re-establishment of the community our obligations in terms of the Social and our investments and undertake engagement structures. Marula has Labour Plans (SLPs), which focus collaborative research studies to better appointed a stakeholder engagement primarily on infrastructure, health, understand the social challenges manager to reinforce its stakeholder education and community affecting the communities around our engagement department. Marula will empowerment. This complements our operations. explore alternatives in terms of its SLP emphasis on accommodation and living commitments to avoid non-compliance. conditions and our enterprise and Our 2016 performance and social A key SLP project initiated during the supplier development initiatives, through investment developments year is a collaboration with the Roads the provision of schools, clinics and This year we invested R105 million in Agency Limpopo to construct a other amenities. Our goal is to establish socio-economic development projects 17 kilometre stretch of road. infrastructure to address urgent needs in for our South African operations, mine communities with a focus on inclusive of our SLP commitments, up During the year, we implemented a addressing longer-term impacts. from R83 million in 2014. An additional community communication strategy, with R236 million was spent on improving flyers, posters and booklets distributed We are in the second year of our second accommodation and living conditions of to the community through MCLEF. The generation five-year SLPs for the period our employees (see pages 71 to 73). RBA offered the use of village boards to 2014 to 2018. These plans were A breakdown of our community communicate on community developed through engagement with the investments is presented in the table development projects. The feedback is Mine Communities Leadership overleaf. A review of our progress that the communication material has Engagement Forum (MCLEF) involving in providing affordable and decent assisted greatly in educating the representatives from municipalities, accommodation is provided later in community about the SLPs and their communities, traditional authority, and this section. benefits to the community. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 68
Investing in community development – South Africa
Assessing the impact of our social investments
Each year an external consultant (Trialogue) undertakes an Our funding of Raizcorp provides business incubator independent review and assessment of the socio-economic services to a number of small local organisations that are impacts of a selection of our social investments. During the not part of our supply chain. Mpho Tshukudu, owner of a year under review, Trialogue visited 13 socio-economic dietician business, participated in the programme and has development (SED) projects – 11 in South Africa and two experienced great success as a result. Her experience is reviewed in the case study on page 70. in Zimbabwe – as well as one housing project in South Africa. The following is a brief summary of the identified In line with the National Development Plan priorities and our contribution associated with the investments: own skills requirements, we continue to fund a number of education projects, including the Implats’ school support The 11 projects in South Africa benefited around mentorship and sports programmes, which benefits over 7 000 people, while almost 4 000 people benefited from 5 400 learners at eight schools in and around Rustenburg. the two projects in Zimbabwe. Project assessment In the 2016 financial year we contributed R10 million Each of the 13 projects was reviewed in the following towards the Impala Bafokeng Trust (IBT), which was categories: use of Implats funds, project design, established in 2007 by the Royal Bafokeng Nation and implementation, results, sustainability and risk. ourselves to augment the corporate social investment commitments of both organisations. Programmes funded Of the 13 projects reviewed, 11 were rated as good, with by the IBT this year benefited more than 8 500 vulnerable scores of over 60%, while one project fell just below the children, people with HIV/Aids, early childhood development 60% mark. The Zimplats community resettlement project (ECD) practitioners, educators and learners in the was not fully scored on the grounds that it was still being Bafokeng area. implemented.
The demographic of beneficiaries shows that 100% of the The categories in which projects scored best were use of beneficiaries of the reviewed socio-economic development funds and project design. Those with weaker scores projects were black. included results (often because the results are not adequately measured) and sustainability of projects. No The development of houses for our Rustenburg employees projects were rated exemplary or poor. Recommendations through the Platinum Village accommodation project for all the projects will be taken into account to improve continued to progress well. Phase one was completed last performance in the coming years. year, with 557 new houses sold and over 80% of those who benefited became homeowners for the first time. 2016 highlights A survey to determine perceptions of the project among We continued to fund the Godisanang programme, through a sample of the home owners is reviewed on page 73. the IBT. This programme provides assistance to 602 orphans and vulnerable children from the Bafokeng The two Zimplats projects reviewed were a livestock villages through after-school care, nutrition, general health commercialisation project and a community resettlement care, education, vocational training and psychosocial and project. The livestock commercialisation project aims to spiritual support. empower more than 2 500 households in the Mhondoro- Ngezi district by making livestock production a viable We refurbished the Ramotse Community Centre, a facility in business for them. The relocation project aims to resettle Luka Ward 4, to create additional office space and built two 10 families that currently reside in the zone of influence workshops to accommodate small black-owned local around one of the operations’ tailings storage facilities. community businesses, some of which are in manufacturing The objective is to relocate the families to safe areas and (carpentry and upholstery). to offer them appropriate compensation and restoration of their livelihoods (page 78). SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 69
We built three Makgotla offices and ablution facilities to SD project rating (%) support Luka headmen to carry out their traditional duties and hold sheltered community meetings. These upgrades 8 have enabled the community members to hold discussions 8 O Good O Adequate in a comfortable, dignified manner with proper seating and O Not fully implemented shelter. Phase two of this project is planned for 2017, which will provide a further 12 Makgotla offices for the remaining regional headmen. 84 We continue to support the children of Implats employees who have died in work-related incidents at our operations by paying their school fees and providing school uniforms Project status and supplies. This initiative is reviewed on page 43. In 2016, (%) Zimplats – community 29 239 such children were supported. resettlement project Zimplats – cattle project 59 Impala Bafokeng 2016 challenges Trust – overall 65 School support The low platinum price has affected our profitability and as a programme (sport) 66 result, we were unable to scale-up a number of successful School support programme (mentoring) 66 programmes, including our school support programmes for We Care Project – (children of fatals) 69 teacher mentoring and sports. Western Limb Producers Forum 70 IBT – Luka The Western Limb Producers Forum (WLPF) is a voluntary Clinic extension 71 Ramotse association which aims to ensure a common and coherent Community Centre 71 Luka Makgotla approach towards infrastructure development. Budget offices 71 Platinum Village Phase constraints have resulted in declines and uncertainty in the 1 and 2 (houses only) 73 membership contributions to the WLPF, of which we are an IBT – Tapologo 74 outreach active participant. IBT – Godisanang 75 Q Use of Implats funds Q Design Q Implementation Q Results Q Sustainability The Tapologo programme, which we fund through the IBT, provides a holistic response to the HIV/Aids-related health needs of communities in the Rustenburg area through outreach and home-based care. There is a risk of increased turnover of experienced nursing staff due to remuneration levels falling below public sector wages, due to the current budget constraints.
Implementation of our Marula SLP has been negatively affected by community unrest. We will continue to work with all stakeholders to ensure compliance to our SLP commitments. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 70
Investing in community development – South Africa
South African operations: socio-economic development expenditure (Rm) Programme 2016 2015 2014 2013 2012 Empowerment of community structures 16 19 20 13 17 Health, safety and environment 1 1122 Education 43 49 21 18 15 Government and municipality support infrastructure 38 7174534 Sport development 3 3 7 10 10 Enterprise development 3 2359 Community welfare, arts and culture 1 2293 Total socio-economic development expenditure 105 83 71 102 90 Housing and living conditions 236 228 261 445 430 Total sustainable development investment 341 311 332 547 520
Our focus on social investment for 2017 and beyond Looking to the years ahead, we plan to: O Engage effectively with communities to understand and manage expectations O Target social investment spend of R197 million for FY2017 O Ensure implementation of approved SLP projects, communicating closely with community representatives and authorities O Promote the rebuilding and reinstatement of community structures at Marula Mine communities O Manage SLP implementation challenges at Marula, exploring alternatives to ensure compliance O Identify additional collaborative enterprise development initiatives that bolster economic activity in our areas of operation
Mpho Tshukudu, the enterprising dietician
Mpho Tshukudu qualified as a dietician and initially worked co-authored book ‘Eat Ting’, a recipe book that addresses for government and pharmaceutical companies. She then the need for South African-specific nutritional guidance. “I started her own business so that she could move back to am thankful to Implats for investing in me. I have benefited Rustenburg and help the local communities by providing greatly from what I have learnt on the programme and look health services and creating awareness of obesity and forward to building my business further and reaching the targets I have set myself.” lifestyle diseases caused by poor eating habits.
At first, Mpho struggled to manage the financial aspects of her practice because her university training had equipped her to be a dietician – but not to run a business and be business savvy. She learnt the ropes quickly after being accepted onto Raizcorp’s business growth programme, which is sponsored by Implats. “I’ve been on the business growth programme for over two years now and have a much better understanding of how to run a successful business.” says Mpho. “The entrepreneurial classes have been extremely insightful and have taught me how to market my business properly, differentiate myself from my competitors and position myself. I am now able to read my financial statements, understand my books and evaluate whether I am going in the right direction.” Mpho is currently on a nationwide tour to launch and promote her new, SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 71
Accommodation and living Burgersfort and Rustenburg for future and 12% are on the Company’s home conditions development. Houses built are sold to ownership scheme. The balance of We are proud to have been recognised Impala employees at cost and 10% of employees use private accommodation. by government and other stakeholders the housing development is sold to the for our progressive stance and leading open market at market value. The uptake This year, we invested R236 million on example in programmes improving the of units by employees is underpinned by employee housing (2015: R228 million). housing and living conditions of a 30% soft loan from the Company. Following are principal developments mineworkers. Through our investment in There is a high demand from employees this year: housing we aim to create viable local to own homes within a commutable O Impala Rustenburg’s second home communities in which employees are distance to and from their place of work. ownership flagship project, Platinum able to reside with their families in a Some employees struggle to qualify for a Village in Rustenburg, has progressed stable, healthy and secure environment loan and our sales department seek to well. Following the completion last and within commuting distance of their overcome these challenges. year of phase 1 (557 units comprising workplace in line with the goals of the NDP. 503 housing units sold to employees We continue to explore opportunities for and 54 apartment units rented), the Our strategic approach to third-party funding and other creative construction of phase two (a further accommodation and living conditions ways of ensuring employees are moved 555 units), commenced in October Our vision is that all Company employees out of backyard dwellings and shacks 2015. By year end, 80 houses had should live in decent accommodation into decent living conditions. This been completed, 67 of which were within a reasonable distance from work requires a focus on entry-level units at fully allocated. The construction of a by 2020. Our mission is to be a pioneer lower prices with specifications closer to Platinum Village school is under way, in facilitating and promoting decent government’s free housing units. The which will provide for 1 700 primary housing and living conditions for current property portfolio is in line with and secondary school learners in the employees by creating sustainable business requirements in terms of area. The R120 million project, in partnerships with organised labour, providing employees with decent partnership with the North West government and third parties. accommodation. The Platinum Village Department of Education and the project is planned to deliver 400 rental Impala Bafokeng Trust (IBT), is due to Our housing strategy was revised in units to cater for the need for rental be completed by December 2016 2014 to address the findings of a stock close to operations and at O The Woodridge development project baseline social impact study within the affordable rental prices. in Rustenburg commenced in 2014 communities in which we operate. The and was completed in March 2016. study highlighted the need to provide Our South African operations endeavour Funded by the developer, Impala was different types of tenures and dwellings to capitalise on government initiatives allocated 318 housing units for sale to and to reconsider the conditions of developed to improve the living employees and community members, contractor employees and major conditions of mineworkers. The main all of which were bought off-plan. To contractors with the aim of providing challenge remains the bulk infrastructure date, all 318 units have been built and decent living conditions. services in municipalities such as 308 units have been sold, with 32 Tubatse local municipality in Limpopo units built in the current financial year. The housing projects extend into other and Rustenburg’s scarcity of serviced The remaining 10 are in the community projects, including roads, land, including uncertainty of bulk supply. registration process (197 to Impala lighting, water, health, sewerage and employees at cost and 111 to the schools as we collaborate with local Our 2016 performance and public at market price) government to eradicate informal achievements on accommodation and O Marula completed its Motaganeng settlements surrounding our operations. living conditions housing project in December 2015, This investment is the most significant Over the last eight years the Company with 30 units built in the 2016 financial of our contributions to the well-being of has invested more than R3.7 billion in year. The project has delivered our communities and employees. In our accommodation around its South African 150 sectional title units for employee SLP we have committed R1 billion to operations, providing almost 3 000 home ownership improving housing and living conditions housing units, converting mining hostels O Single rooms in mine hostel over 2014 to 2018. into more than 5 243 single units and residences are being converted to 308 family units, and securing land for family units. During 2016, we Our home ownership initiative is based future housing development. converted numerous single rooms on a cost recovery model to ensure that into 44 additional family units all related costs are recovered from Currently 24% of our employees in South sales. Portions of land were secured in Africa use Company accommodation SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 72
Investing in community development – South Africa
Housing – South African operations, cumulative totals 2011 to 2016 2016 2015 2014 2013 2012 2011 Houses built 2 959 2 788 2 376 2 049 1 803 1 640 Houses sold 2 956 2 878 2 210 1 883 1 622 1 057 Single units (through hostel conversions) 5 243* 5 375 5 375 5 375 5 375 4 858 Family units (through hostel conversions) 308* 264 264 264 264 198
* 144 single rooms converted into 44 family units
Our accommodation and living O Upgrade basic infrastructure in the We will continue to partner with conditions focus for 2017 and beyond informal settlement, Freedom Park government to ensure our housing We have set ourselves the following O Investigate the use of different types projects contribute to fully functional commitments for our South African of tenures and dwellings to replace communities with all the required operations over the next few years: informal settlements at Freedom Park amenities and that they are constructed O Complete the second phase of the and to provide decent within a broader integrated spatial Platinum Village by December 2017 accommodation for backyard development framework. We will partner and acquire the land adjacent to dwellers with government and the Bafokeng Platinum Village for the next phase, O Develop a convenience shopping Nation to provide bulk infrastructure and ultimately completing 2 420 units over centre in Platinum Village and provide services to mine communities in line with four phases opportunities for SMME development our developmental needs. O Build a further 300 houses by June O Ensure the availability of social 2017. Increase the number of houses amenities built to over 3 300 by 2018 O Promote home ownership at Marula
Accommodation
6 000
5 000
3 000
2 000
1 000
0 2009 2010 2011 2012 2013 2014 2015 2016
Q Hostel converted into family units Q Houses sold Q Hostel rooms converted into decent single accommodation Q Houses built SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 73
Platinum Village housing development survey
Our home ownership programme aims to provide Type of previous housing (%) employees with access to affordable and decent 11 accommodation. Building on the successful Sunrise View 14 home ownership programme, phase one of the new O Home owner 3 O Tenant flagship housing development Platinum Village in O Hostel O Other Rustenburg was completed early in 2016, with 100% of the 557 units sold and occupied. We are now in the process of construction and sales for phase two of the project. 72 A small sample of 36 home owners was surveyed in 2016 on the quality, pricing and amenities of the housing Quality of housing development. The majority of the respondents (over 80%) were happy with the various aspects of their bond agreements. 100 2.0 1.5 80 More than 72% were previously renting properties and more 1.0 60 0.5 than 80% were first time home owners. Only 11% moved to 0 Platinum Village from an owned home. More than 80% of 40 (0.5) (Average rating) the owners are employed by or contracted to Implats and (1.5) 20 more than half have monthly household incomes of more (Percentage of respondents) (1.5) than R10 000. 0 (2.0) House built House design House sanitation Facility manage- (n = 36) (n = 36) (n = 36) ment (n = 36) In general, the respondents were pleased with the price Q Very good Q Good Q Adequate Q Poor Q Defective Q Average paid for the houses – 58% rated the price paid for the house as very good, good, or adequate. The percentage of Pricing those that were generally happy with the perceived value of their house was lower (44%). This can be linked to the current state of the housing market and the economy. 100 A previous study conducted by the University of 80 Potchefstroom in 2013 showed overwhelming support and 60 satisfaction for our housing project offerings. 40
The survey identified a limited understanding of the 20 boundaries of Implats’ responsibility as opposed to that of (Percentage of respondents) 0 the home owner, the municipality and power utility Eskom. Price paid Perceived value The respondents raised complaints about storm damage to (n = 36) (n = 36) Q Very good Q Good Q Adequate Q Poor Q Unsatisfactory the house roofs and gutters, lack of power to street lights and water leaks. Implats works closely with the home owners to assist them with various issues even though these may fall outside of their contractual obligation. Implats also leverages its relationships with the municipality and Eskom to address the services that fall under their remit.
Despite some minor issues relating to construction, more than 60% of the respondents were happy with the quality of the housing. The vast majority (97%) do not regret buying houses in Platinum Village. House design and facility management received the highest ratings and more than three quarters of the respondents are happy with the safety and security at the housing development. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 74
Investing in community development – South Africa
Enterprise development and complete the course in December 2016. business registration, preparing business procurement The development programme has been plans, funding and complying with Preferential procurement and revised to align with Implats’ regulatory and Impala procurement investments in enterprise and supplier requirements and includes business- requirements. development (ESD) provide important specific training and mentoring and opportunities for social and economic scheduled meetings with the owner/ A review of our compliance with the transformation in South Africa. The manager. The results have been enterprise and supplier developments potential has been recognised in the encouraging; 70% of the initial intake requirements of the B-BBEE Charter is revised Broad-Based Codes, where they increased their turnover, with an average provided on page 80. are allocated 40 out of 105 points in the turnover growth rate of more than 400%; overall scorecard. It will be challenging to 33 jobs have been created equating to a Promoting transformation through meet the more stringent requirements 13% job creation rate. The second procurement and we are placing greater emphasis on intake will complete the revised Preferential procurement is an important promoting preferential procurement and programme in December 2016. part of our contribution to promoting ESD. We are implementing the revised transformation. Increasing the number of codes and aim to be well positioned to #VTJOFTTEFWFMPQNFOUThis black-owned and black women-owned conform to the DMR Mining Charter programme helps local black businesses in our supply chain is a alignment with the revised codes. entrepreneurs to grow and sustain their priority. Our preferential procurement businesses and become part of the strategy focuses on addressing the Investing to support small and Implats supply chain. The aim is to following issues: medium-sized businesses develop business skills that will lead to O Identifying, supporting and promoting Our ESD activities are an enabler for increased efficiencies, turnover and appropriate historically disadvantaged preferential procurement. In line with the profit. To date, 10 suppliers have suppliers through sustainable revised codes, we will increase our completed our supplier development procurement practices; investment in supporting local, black- programme. Collectively, the O Leveraging our existing supplier base owned and black women-owned 10 businesses have experienced to unlock opportunities for local businesses. Our initiatives are designed turnover growth of 20% and employment employment, mentorship and to ensure compliance with regulatory growth of 61%. Five companies have investment in the greater value chain expectations, contribute to socio- been identified for the second intake in of Implats; economic development in neighbouring July 2016. Additional benefits offered O Nurturing partnerships and joint communities, and build a more robust to SMMEs include access to office ventures between our existing and competitive supply chain for the infrastructure, bookkeepers, a supplier base and local entrepreneurs; Group. We work closely with the Royal receptionist, business guides and a and Bafokeng Enterprise Development unit in “business incubator” manager. O Striving to improve our year-on-year Rustenburg and the Marula community BEE spend performance relative to structures in Burgersfort. Our enterprise development (ED) office the requirements of the Mining within the supply chain department Charter and reporting in parallel on We have been providing support to maintains a business assistance B-BBEE performance as per the dti various small to medium local black programme that provides support to any Codes of Good Practice. businesses through two principal local and black-owned businesses initiatives, initiated in 2013. experiencing difficulties in meeting their Implats engages with suppliers to help contractual obligations. The department them understand black ownership 4VQQMJFSEFWFMPQNFOUQSPHSBNNF conducts a diagnostic analysis to structures and transform. To mitigate This aims to enhance the determine the needs. We then assist fronting risks, an independent audit firm competitiveness of local small, medium these companies to implement conducts annual compliance and micro enterprises (SMMEs) and corrective action and provide mentoring assessments on selected transformed ≥ 51% black-owned businesses that where required. External expertise or suppliers. Compliance to BEE legislation were already part of the Implats supply specialised services are sourced when is not negotiable. chain. Ten companies (the initial intake) the need arises, under the guidance of have completed the programme and six the ED team. The ED office functions as This year, total South African operations’ companies are enrolled and due to a walk-in centre to give guidance on discretionary procurement was SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 75
R8.1 billion of which 75%, or R6.1 billion, services 74% and capital goods Overall our performance continued to be was from companies in which BEE 74% (2015: R5.4 billion, 77% on very good in the key Mining Charter ownership was greater than 25% consumables, 73% on services, and elements of capital goods, consumables (2015: R7.6 billion or 72%). The total 60% on capital goods). Included in the and services against the Revised Mining discretionary procurement spend R6.1 billion BEE procurement Charter’s 2014 targets (see table below). included R1.3 billion for capital goods. expenditure in 2016 was R1.5 billion These targets remain in place until a third On the operational costs and included in from 336 black-owned suppliers (>50% iteration of the Charter is launched. the cost of sales was total discretionary ownership). During the year, 60 black- spend of R6.9 billion, of which 75% was owned suppliers (>50% ownership) were spent with suppliers having BEE added to the approved vendor list, of ownership of more than 25%. The which 16 are black-women owned. consumables category recorded 76%,
Percentage HDSA/BEE procurement (>25%) of category’s discretionary procurement (SA operations)
Mining Charter target 2016 2015* 2014 2013 2012 2015 Category (%) R billion % R billion % R billion % R billion % R billion % Capital 40 0.9 74 0.9 60 1.1 48 1.5 42 1.6 41 Consumables 50 2.3 76 2.1 77 1.8 72 2.0 64 1.5 55 Services 70 2.9 74 2.4 73 2.2 72 2.0 60 1.7 61 Total operations 6.1 75 5.4 65 5.1 65 5.5 55 4.8 51 Note: Capital goods have been reported based on IFRS and Implats’ accounting policies recognition criteria for capital expenditure. Suppliers with a valid broad-based black economic empowerment (B-BBEE) certificate in the financial year under review contributed to HDSA spend. The Implats policystops recognising HDSA spend from a supplier if their B-BBEE certificate expired and was not replaced within a two-month period.
* Strike affected SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 76
Investing in community development – South Africa
Promoting development based on their proximity to operations community suppliers ready to conduct through local procurement (see table below). Tier 1 suppliers are business. Our localisation initiatives have We continue to increase the number of defined by proximity and the nature of also continued to deliver positive results. procurement opportunities awarded to their shareholding, and exclude These include encouraging some of our companies in neighbouring communities. companies where local community existing large contractors to support This is an important contribution towards individuals have shareholding in small tier 1 contractors, for example by creating sustainable communities, companies outside of the tier 1 appointing them as sub-contractors. We improving community relations and geographic area. In 2016 we procured encourage them to fill any vacancies with advancing local economic development. R608 million from 122 tier 1 suppliers, youth members from the local compared to R498 million from 107 tier community. We also encourage certain This year, we spent R2.5 billion on 1 suppliers in 2015. suppliers to move part of their procurement from local tiered suppliers manufacturing process closer to the (all >25% BEE), constituting 31% of the Our progress in stimulating sustainable mine lease area. total discretionary procurement spend local procurement is enhanced by Royal (2015: R2.6 billion or 34%). Local Bafokeng Enterprise Development, suppliers are classified as tier 1, 2 or 3 which assists in identifying local
Local tiered areas classified as tiers 1, 2 and 3 Category Tier 1 Tier 2 Tier 3 Impala Mine lease area (Bafokeng Rustenburg Municipality Bojanala district Rustenburg Village) Marula Platinum Mine lease area (four farms) Greater Tubatse Municipality Greater Sekhukhune district Freedom Park Seraleng, Meriting
Local (tiers 1, 2 and 3) HDSA procurement (>25%) as a percentage of total discretionary procurement 2016 2015 2014 2013 2012 Category R million % R million % R million % R million % R million % Impala Rustenburg 2 387 37 2 424 42 1 816 30 2 197 27 1 911 25 Marula Platinum 96 11 129 18 199 26 156 22 130 21
Our preferential procurement, enterprise and supplier development focus for 2017 and beyond Our objective is to address the requirements of the new codes in anticipation of the alignment of the mining sector to the broader transformational objectives of government. In support of this, we will focus on: O Implementing the revised B-BBEE codes of good practice O Implementing a structured approach to identifying and developing local suppliers, with an emphasis on black-owned and black-women owned O Developing an integrated ESD and preferential procurement policy and five-year strategy O Broadening the supply base and spend shift strategy, to impact black-owned and black-women owned spend O Enhancing controls and measures to mitigate the risk of fronting. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 77
Investing in community development – Zimbabwe
Social investment schools, clean water and sanitation and our community investments is presented Zimplats and Mimosa food security. Through the effective in the tables on this page and Our management approach to social implementation of the plan, we seek to on page 78. investment improve communication and Our Zimbabwean operations invest in neighbourliness between Zimplats and Zimplats’ community initiatives are socio-economic development aimed at its surrounding communities. Our funded directly or through its Community contributing to the prosperity and Mimosa operations implement a Share Ownership Trust, which was well-being of surrounding communities corporate social responsibility policy and established in 2011 with a donation of as well as the country’s stability and programme, which includes investing in US$10 million as part of the company’s economic progress. At our Zimplats national and local projects, some of indigenisation implementation plan. To operations, we are implementing a which are in response to local date, the trust has implemented projects community development plan to address community requests, while others are valued at more than US$4.5 million. some of our neighbouring communities’ initiated by the mine. More than 100 projects have been expectations and developmental implemented through the trust in the priorities. These have been identified Our 2016 performance and three districts. These include projects through baseline studies and quarterly achievements for social investment relating to road construction and stakeholder meetings with community The Zimbabwe operations’ total maintenance, rehabilitation of schools, representatives, leaders and local chiefs. social investment decreased from construction of classroom blocks at US$5.1 million in 2015 to US$4.7 million more than 30 schools, sinking of The development plan focuses on this year. Community spend was boreholes to access potable water, education, health and income-generating somewhat constrained as a result of funding income-generating projects for projects, with the aim of narrowing the cost management strategies applied the communities and providing business gap of community expectations relating across the business on the back of opportunities. to development needs such as clinics, declining metal prices and the impact of agricultural activity, employment, the collapse of Bimha Mine on volumes construction of secondary and primary and ultimately revenues. A breakdown of
Zimplats socio-economic development expenditure (US$000) Programme 2016 2015 2014 2013 2012 Empowerment of communities 0 0 4 200 2 500 3 300 Health, safety and environment 119 23 91 668 873 Education 162 300 207 3 062 3 283 Government and municipality support infrastructure 0 19000 Sport development 1 492 52 94 54 35 Enterprise development 0 413000 Income-generating projects 67 117 88 80 47 Community welfare, arts and culture 91 50 578 340 1 071 Total socio-economic development expenditure 1 931 974* 5 258 6 704 8 609 Housing and living conditions 1 085 5 474 15 000 20 548 49 000 Total sustainable development investment 3 016 6 448 20 258 27 252 57 609
* Community spend affected by depressed metal prices and the impact of the collapse of Bimha Mine on volumes and ultimately revenues. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 78
Investing in community development – Zimbabwe
Mimosa’s socio-economic development expenditure (US$000) Programme 2016 2015 2014 2013 2012 Empowerment of communities 13 396 1 065 411 127 Health, safety and environment 1 124 690039 Education 479 163 53 45 1 507 Government and municipality support infrastructure 51 2 006 1 086 3 878 987 Sport development 49 0000 Enterprise development 0 0000 Community welfare, arts and culture 1 096 1 497 1 453 336 489 Total socio-economic development expenditure 2 812 4 131 3 657 4 669 3 149 Housing and living conditions 0 67 146 3 031 16 560 Total sustainable development investment 2 812 4 198 3 803 7 700 19 709
Zimplats – Community resettlement project
One of the significant risks on the Zimplats risk register relates to members of the community residing within the zone of influence of the company’s tailings dam at Selous Metallurgical Complex (SMC).
The families concerned were settled within that area by government in 2000 as part of the land resettlement programme and former farm workers who worked on the land prior to the country’s land redistribution programme. While Zimplats has stringent control measures in place – including third-party reviews and control of freeboard – to ensure safe operation and management of its tailings facilities, we immediately filed a complaint with government registering concerns for the safety of the newly settled families. Government response was that they would move the families concerned when suitable land had been found for their relocation. Despite dialogue and persistent requests from Zimplats, there was no traction on this matter until this year when government officials visited the site to confirm that indeed there were people residing in the zone of influence of the dam. Government has since pegged the area and carried out a census to confirm the number of families affected and has committed to step up its efforts to find land so that the families concerned can be moved to a safer area. Meanwhile Zimplats has developed a relocation plan for the 20 families affected that will see the company meeting the costs of relocation, housing and assistance with compensation relating to livelihoods. Zimplats community liaison meeting SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 79
Accommodation and living indigenous (at least 51% owned by black Mimosa continued to implement a robust conditions Zimbabwean or other previously procurement policy aimed at Our Zimbabwean operations’ disadvantaged groups). Zimplats empowering and supporting local and commitment to improving the living continued to implement its local indigenous companies. In 2016, 40% of conditions of employees is in line with procurement and supplier development Mimosa’s goods and services were the company’s philosophy that all strategy. The company has a preferential procured from local suppliers, consistent employees should live in decent policy and initiatives aimed at increasing with levels in 2015. Mimosa’s preferred accommodation. Providing decent opportunities for local suppliers. These supplier programme has a strong bias accommodation provides a competitive include providing assistance with towards competent local entrepreneurs advantage in attracting future skills and meeting vendor requirements and and is implemented on a cost and can be used to support procurement standards and loans and advance quality competitiveness basis. As part of from local enterprises and enterprise payments to assist with working capital. the company’s skills transfer and job development in host communities The company plans to assist selected creation initiatives, local companies through the value chain. local suppliers with business and supply and maintain key mining financial plans to improve their supply equipment at the operations and During the year, we invested capacity. During the 2016 year, Zimplats contracted companies are required to US$1.1 million on employee housing spent US$252 million on local suppliers employ non-skilled employees from the (2015: US$5.5 million). Employee (including indigenous suppliers), local, surrounding communities. housing projects at Ngezi were deferred representing 75% of the total annual due to the depressed metal prices. The procurement spend, up from 73% in Our social investment focus total number of company houses 2015. The company has set a target of for 2017 and beyond remained at 1 410 units during the year at least 80% local procurement In our Zimbabwe operations, our focus under review. A proposed housing expenditure by 2018. areas are to: project in Chegutu for Selous-based O Identify and implement projects in line employees in grades A3 to C2 is being Zimplats’ supplier development activities with community needs and priorities pursued and a best cost housing model focus on supporting several small and O Invest at least US$4 million has been identified. Three demonstration medium enterprises in Mashonaland (US$1 million at Zimplats and houses have been completed and a West Province where its operations are US$3 million at Mimosa) in socio- preferred house will be selected following located. The company provides economic development projects in various tests by the Standards technical, financial and skills Zimbabwe for FY2017 Association of Zimbabwe (SAZ) on the development support. The enterprises O Implement the Employee Share quality of the houses and consultations supply Zimplats with goods and services Option Trust (ESOT) at Zimplats and with the worker representatives. such as work suits and overalls, engage with government on the construction materials, housing remaining elements of the IIP Enterprise development and maintenance services and ore O Assist selected local suppliers with procurement transportation. This initiative has a business and financial plans to positive impact on the beneficiaries, Our operations have maintained high improve their supply capacity creates local employment and enhances levels of procurement with local, O Increase purchases from local community relations. Approximately Zimbabwean-based suppliers and, more companies to at least 80% of total 180 permanent people are employed specifically, with those classified as spend by these enterprises. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 80
Legal compliance
Ensuring full compliance with Transformation in Indigenisation in Zimbabwe government policy and legislative South Africa Zimplats remains committed to the requirements is a cornerstone of our As part of South Africa’s transformation, aspirations of the government and commitment to delivering social value we are committed to complying with the people of Zimbabwe to grow and and promoting socio-economic requirements of the Mineral and diversify the PGM industry. A recent transformation. We engage actively with Petroleum Resources Development Act Presidential Statement, that is yet to be government, directly as a company and (MPRDA), which includes delivering on translated into law, defining new indirectly through representative our SLP commitments and meeting the significantly changed parameters for business organisations, with the aim of targets set out in the B-BBEE Charter for compliance for the mining sector states contributing to the development of the South African Mining and Minerals the following: “For existing businesses socially progressive and pragmatic Industry (Mining Charter). The 2010 where government does not have 51% legislation. We also subscribe to various Mining Charter expired in December ownership, compliance with the voluntary codes and social compacts. 2014 and is due to be replaced by a new indigenisation and economic charter being negotiated between empowerment policy should be through Following are some of the most industry and stakeholders. The DMR ensuring that the local content retained important socially oriented legislative released a draft third iteration of the in Zimbabwe by such businesses is not areas of focus for this year and beyond: charter on 16 April 2016. Implats has less than 75% of gross value of the O Implementation of our Mining Charter appointed executive champions for each exploited resources. Local content refers and SLP commitments in South Africa element of the charter and experts to the value retained in Zimbabwe in the O Participating in the review of the draft attended workshops at the Chamber of form of wages, salaries, taxation, Mining Charter and seeking alignment Mines aimed at developing a position community ownership schemes and with the B-BBEE Act and Codes of paper for the industry. This will be used other activities such as procurement and Good Practice in a consultation process with the DMR linkage programmes.” Despite meeting O Working towards compliance with the before the charter is finalised. In the this target – in the year under review new B-BBEE Codes interim, the targets contained in the Zimplats local spend was 83% of O Meeting the objectives of the expired Mining Charter continue to apply. revenue generated – the development President's Framework Agreement for has necessitated further dialogue with a Sustainable Mining Industry We have continued to deliver on our the government. Ongoing discussions (page 104 to page 107) commitments made in the SLPs for each on compliance include the ESOT and the O Aligning and positioning ourselves in of our operations. Last year we were Community Share Ownership Trust terms of the National Development assessed by the DMR as compliant in (CSOT). We will continue to engage the Plan (NDP) (page 108 to page 109) terms of the Charter targets set out for government on mutually acceptable O Engaging in government initiatives 2014. In many areas we exceeded solutions. relating to Operation Phakisa requirements. This year we have O Delivering on our commitments in sustained and in some areas improved Release of ground (Zimplats) terms of the Leaders’ Declaration on our performance. A review of our Zimplats agreed to release approximately the Mining Industry Commitment to performance is provided on pages 98 36% of its ground in 2006 to the Save Jobs and Ameliorate the Impact to 103. Government of Zimbabwe in return of Job Losses for cash and indigenisation credits. O Advancing the implementation of the Last year we obtained our first B-BBEE In March 2013, Zimplats received a Community Share Ownership Trust verification certificate for the Group and preliminary notice of the Government of and Employees Share Ownership its subsidiaries. The Group was granted Zimbabwe’s intention to compulsorily Trust at our Zimbabwe operations as level 3 and our subsidiaries Impala acquire additional land measuring part of the indigenisation plan Platinum and Marula Platinum were 27 948 hectares within its special mining O Continue to play a leading role in the given levels 2 and 4 respectively. Details lease area. A formal objection was Chamber of Mines, helping to lobby of Implats’ B-BBEE scorecard can be lodged at the time, but this demand was on key issues and for a consistent found at www.implats.co.za. The reiterated at the end of December 2015 and stable regulatory environment verification process identified where we and legal action was instigated in need to improve our performance. The July 2016. Zimplats continues to priority areas are procurement and engage with the Government of supplier development, skills development Zimbabwe in this regard. and socio-economic development. We will conduct a B-BBEE reverification under the revised codes. SOCIAL CAPITAL AND LICENCE TO OPERATE Implats Sustainable Development Report 2016 \ PAGE 81
Respecting human rights
3FTQFDUJOHBOEVQIPMEJOHIVNBOSJHIUTMBZTUIFGPVOEBUJPOGPS effective socio-economic development.
Our approach and Managing security and implement public and private performance To support growth and stability in the security measures in a way that respects Respect for human rights is an integral mining sector, managing security-related human rights. The VPSHR framework part of the Company’s code of ethics issues, especially at our South African provides useful guidance on: assessing and values. Our human rights policy operations, is key. The President’s the human rights risks associated with commits us to full compliance with Framework Agreement includes a public and private security; engaging applicable legislation in the regions in commitment to promote the safety and public security providers in a structured which we operate, as well as security of workers and communities manner; establishing a clear set of rules implementing the human rights principles and our contribution is reviewed on when contracting private security in the United Nations Global Compact. pages 104 to 107. There remains a high providers; and creating opportunities for Employees are trained on the code as risk of civil unrest, including xenophobic input by affected stakeholders. part of their induction process. violence, in the areas around our South African operations. This year we We introduced the VPSHR at Impala We have clear policies and processes in experienced growing levels of discontent Springs and Zimplats in 2015 and this place to ensure observance of human in our Marula Mine communities, with year at Impala Rustenburg. An rights, including the right to freedom of unauthorised protest action and acts of assessment and roll out at our Marula association and collective bargaining, the violence and vandalism disrupting operations is scheduled for next year. eradication of child and forced labour operations. The security detail has been The process entails an initial gap analysis and non-discrimination. We track increased to curtail these actions. We against the requirements of the VPSHR implementation of human rights issues are engaging with relevant stakeholders and the subsequent introduction of through monthly reports. Procedures are to restore peace and stability within the controls to mitigate identified risks and in place to ensure channels are available communities. ensure compliance. The assessment at to deal with unfair practices. No cases of our Impala Springs and Impala discrimination were reported in the year Third-party services are contracted to Rustenburg operations indicated that under review. provide security at our South African personnel had good levels of awareness operations. We employ 844 security of human rights issues. However, this Contractors are expected to abide by personnel (own and contractor) in South was not explicitly stated in any our Company policies, practices, Africa and spent R173 million in procedure. We are developing systems standards and the constitution of the providing security for our South African to address this need and to ensure countries in which they are operating. operations. Enhancing the interface standardisation and continuity. To We recognise the need to further between the South African Police formulate appropriate security improve our monitoring of contracted Service (SAPS) and our own security responses, early identification of the labour on human rights issues. Through response is critical to avoiding any potential for violence is critical, which stakeholder engagement processes, escalation of conflict. To mitigate this requires regularly updated and credible material community issues pertaining to risk, we have committed to adopting the information on security threats. The risk human rights are addressed in Voluntary Principles on Security and gap analysis has also assisted in community forums. No claims of human Human Rights (VPSHR) as defined by determining training requirements. The rights abuse were made against the the United Nations. The VPSHR are requirements for the adoption of the Company this year. non-prescriptive and provide guidelines VPSHR have been included in the on how companies should assess risks service contract with the private security service provider. We are committed to demonstrating responsible stewardship of our natural resources and to mitigating the unavoidable environmental impacts of our mining activities. Conserve natural resources and mitigate impacts CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 84
Our strategic approach to managing impacts and conserving natural resources
Our environmental mitigation activities We are committed to attaining and African operations are managed with the focus on: retaining ISO 14001-certified FlexiCadastre software system. O Promoting responsible water environmental management systems stewardship by minimising water use (EMS) at all our operations. Regular Environmental legislation continues to and water pollution compliance audits are conducted by the evolve and become stricter. We align our O Responding to climate change risks Group’s internal auditors and external environmental standards and practices and opportunities and promoting auditors. This year all the Group’s accordingly and participate in responsible energy management operations retained ISO 14001 governmental forums to keep abreast of O Minimising our negative impacts on certification, aside from Marula, which future changes. We engage with air quality was not approved for recertification authorities to ensure all applicable O Managing our waste streams owing to the repeat of a major non- licences and permit applications are O Promoting responsible land conformance raised during the previous approved and in place and requirements management and biodiversity audit relating to hydrocarbon met. Our Mimosa operation successfully practices contamination around the workshop and regularised its 1996 Environmental mining portal areas. Marula’s new Impact Assessment (EIA), as per Our environmental policy commits the certification process is in progress. We Zimbabwean legal requirements, and Group to running our exploration, mining, have started implementing the revised has been issued with an EIA certificate. processing and refining operations in an version of ISO 14001 published in environmentally responsible manner and September 2015 and aim to undertake We align environmental communication to ensuring the well-being of our recertification at our operations before with relevant stakeholders and stakeholders. We integrate September 2018. Our Refineries won the communicate effectively on environmental management into all Responsible Care award in 2015 based environmental issues at all operations. aspects of the business with the aim of on improved SHE performance. At our All new employees receive environmental achieving world-class environmental South African operations we use the awareness training and where performance in a sustainable manner. IsoMetrix software to track legal applicable, environmental competency compliance to licence conditions and training is integrated into training progress remedial actions. Mining rights manuals and within unit standards environmental authorisations for South training.
t"EIFSFODFUPQPMJDZ t*40DFSUJýDBUJPO Compliance t$PNQMJBODFXJUIFOWJSPONFOUBM BVUIPSJTBUJPOBOEMFHJTMBUJPO t&OWJSPONFOUBMNBOBHFNFOUTZTUFNT
M g u in tu c a r l fo ly n r i e e r in
f y l o l r a c u i t n u Conserving g M natural resources t$MJNBUFDIBOHFBOEFOFSHZNBOBHFNFOU and o&OFSHZFGýDJFODZ mitigating t3FEVDF o%FNBOETJEFNBOBHFNFOU impacts QPUBCMFXBUFS o"MUFSOBUJWFFOFSHZTPVSDFT Mitigating Resource DPOTVNQUJPO t"JSRVBMJUZNBOBHFNFOU impacts management t*ODSFBTFXBUFS o402BCBUFNFOU SFDZDMJOH o%VTUTVQQSFTTJPO t.BOBHFXBUFS t8BTUFNBOBHFNFOU RVBMJUZ t-BOENBOBHFNFOUBOECJPEJWFSTJUZQMBO t8BUFSDPOTFSWBUJPO Mutually reinforcing CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 85
Environmental incidents During 2016, there were no major The principal potential impacts of our (Level 5) or significant (Level 4) DISTRIBUTION OF activities on communities relate to environmental incidents at any of our LEVEL 3 INCIDENTS pollution of soils, surface water, ground operations. However, we recorded a BY OPERATION water and air quality. In accordance with total of 51 limited impact (Level 3) t 'PSUZýWFJODJEFOUTBU*NQBMB ISO 14001 requirements, all our environmental incidents, 45 of which Rustenburg: predominantly operations identify and report on all occurred at Impala Rustenburg. None of related to emissions from the environmental incidents. This year we these limited impact incidents resulted in smelter and discharges of rolled out the Implats five-tier incident any lasting harm to the environment. The contaminated water. incidents related predominantly to classification matrix (see definitions of t 'PVSJODJEFOUTBU.JNPTBSFMBUFE effluent and contaminated water incidents in glossary on page 136), to tailings spillages enabling standardised classification and management and emissions to t 5ISFFJODJEFOUTBU*NQBMB reporting of incidents across the Group. atmosphere from the Rustenburg Historical incidents have been re- smelter (these were within the required Springs: a system non- classified according to the new format. conditions of the air emissions licence). compliance and a fugitive Systems are in place to investigate and There were no non-compliance notices, emission determine the root causes of high- fines or penalties issued to any of our t 5ISFFJODJEFOUBU.BSVMBB severity incidents and to address and operations during the review period. tailings spillage into the Moopetsi close out all such incidents. River as a result of vandalism of pipelines by the communities CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 86
Our strategic approach to mitigating impacts and conserving natural resources Water stewardship Our management approach to are in place and we review our water risk continue over the next few years. While water stewardship assessments annually. We work closely there is sufficient water from various Water stress poses a high socio- with different stakeholders to ensure sources, including boreholes, economic risk to mining companies security of supply for our operations and management has engaged consultants operating in South Africa and the risk is the surrounding communities. We have to audit water use across the complex to likely to increase. Water is a critical input once again participated in the Water identify potential new sources of supply, into our mining, processing and refining Disclosure Project initiated by the CDP. improve recycling efficiencies and reduce operations and we recognise our water loss and wastage. obligations in terms of maintaining water We engage regularly with the South quality and not compromising the access African and Zimbabwean regulatory Developments at Impala Rustenburg rights of other users. The principal risks authorities to ensure all appropriate during the year included: we face include increased water stress water use licences (WUL) and permits O Further implementation of a passive leading to operational disruptions, are in place and that due consideration water treatment project, involving uncontrolled dirty water discharges into is given to our proposals for water use scavenger boreholes being drilled the environment, increasing costs amendments, to ensure the operations close to the operating tailings dam. associated with water supply and are not affected. Impala Rustenburg has The boreholes capture water from the management, local community a WUL in place and this year re- tailings dam, remediating the plume discontent and reputational risks. submitted its application for licence around the tailings dam while amendments. Impala Springs continues collecting more water for reuse and A consecutive year of low rainfall, to experience delays in receiving an recycling in the operations especially around our Impala Rustenburg amended licence. Internal and external O Developed clean and dirty water operations in the water-stressed compliance audits are undertaken separation and storm water Limpopo Basin of South Africa, has annually. Mimosa evaluates compliance conceptual designs for 1, 4, 9, 10, underscored the strategic importance of audits every two years. The last audit 11, 12 and 14 Shafts. The optimising our water management was conducted in April 2016 and plans recommendations from the study are strategies. are being implemented to address being reviewed opportunities for improvements. Our strategy focuses on water Integrated Water and Waste Developments at other operations: consumption and quality management Management Plans and Rehabilitation O Marula conducted a groundwater and proposes a framework for Strategy and Implementation Plans are assessment for its tailings storage operation-specific water conservation reviewed and submitted to the facility plume scavenging strategies, in line with our strategic Department of Water and Sanitation O Impala Springs has commenced with commitment to reduce the use of (DWS) annually. This year we engaged the relining of the old BMR pond to potable water and increase recycled extensively with the authorities, notably provide double lining with leak water usage. This year we reviewed and on WUL amendment applications, audits detection. Rainwater captured in the updated our strategy and are driving its and community engagement. runoff pond is used for dust implementation at an operational level. suppression. The operation continues Operation-specific water conservation The Zimbabwean operations have to maintain good control on its and water demand management plans renewed their environmental licences effluent pond levels and high recycling are being developed. At Impala and effluent permits. The government figures with the efficient operation of Rustenburg, we are following a phased introduced new raw water tariff two crystallisers and a reverse approach, which includes: identifying regulations in 2016, which have osmosis (RO) plant opportunities, developing water balance increased our Zimplats operations’ raw O Mimosa conducted internal water models and water use efficiency water cost by 280%. Strategies are audits to ensure efficient use of benefits, identifying best options and being implemented aimed to mitigate the resources and all employees received developing action plans with measurable increased costs, including exploring awareness training on water targets to ensure further progress. further water recycling opportunities to conservation reduce raw water consumption. O Zimplats constructed Chitsuwa cha The Group’s recycled water target is Mandizadza dam gauging stations to 40%. We continue to implement projects Water management continues to receive monitor normal water flow in and out to reduce potable water consumption, particular focus at Impala Rustenburg, of the dam, in compliance with water optimise industrial use and increase which accounts for 49% of the Group’s permits regulations water recycling. Surface and total water consumption. Although groundwater monitoring programmes rainfall was better this year than last year, Following the BHP Billiton/Vale Samarco the dry conditions are expected to collapsed tailings dam disaster in CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 87
November 2015, we conducted a review The decrease in our unit consumption incident at Impala Rustenburg 1 Shaft in and documentation of critical control rate of water to 2.09 kilolitres per tonne which water was required to be pumped measures used to safely operate and of ore milled, from 2.11 kl/tonne in 2015, from underground to the surface. This manage the tailings facilities at Impala is a positive indication that we are filled the earth dams and seeped Rustenburg and Marula. Audit findings improving our water management towards the community area. However, and risk assessments provided practices. This year, 18 825 megalitres of the seepage remained within the confidence that the tailings dams are water was recycled, equating to 41% of operational shaft area. currently at a low risk. Management will all water consumed. Marula and Mimosa nonetheless continue to explore achieved 50% and 65% respectively, The Impala Rustenburg WUL audit this opportunities to improve current while Impala Springs (39%), Impala financial year reported a 2% level of controls. Rustenburg (37%) and Zimplats (34.8%) non-compliances, down from 8% the were below target. previous year. At our Zimbabwe Our 2016 performance operations, water extracted from dams on water Further details on the total water and rivers was all within the set allocation The supply and use of water throughout withdrawn, consumed and recycled at limits. From 2017, Zimplats will have the Group continues to be closely each of our operations are provided in additional water available from the managed. Total water consumption this the performance table on page 123. Chitsuwa cha Mandizadza dam, which year, including water withdrawn and was completed and issued with a water water recycled, was 45 528 megalitres. Tailings spillage incidents are managed storage permit from the Zimbabwe The year-on-year 14.7% increase in regularly. A written request was National Water Authority (ZINWA) water consumption (2015: 39 701 submitted to the DWS requesting this year. megalitres), is predominantly attributed to permission for Implats to only report hot and dry conditions. The successful those incidents that are not manageable commissioning of scavenging boreholes and have a direct impact on a surface at Impala Rustenburg in and around the water stream. Risk assessments tailings storage facility, which collectively regarding the severity of incidents were supplies an average of 1.6Ml/day, has created and included in the submission. assisted in mitigating the impact. We subsequently reported a seepage
Water consumption (Ml) 2016 2015 2014 2013 2012 (1) Water from water service providers or municipalities 10 160 9 576 7 515 8 851 10 722 (2) Waste water from other organisations 3 762 3 104 2 313 2 598 2 767 (3) Water from rivers 2 318 2 164 2 175 2 344 2 124 (4) Water from dams 6 580 6 897 6 696 8 777 7 891 (5) Water from ground water 3 883 3 634 2 667 2 870 1 770 Water withdrawn (1 + 2 + 3 + 4 + 5) 26 703 25 376 21 365 25 440 25 274 Water internally recycled 18 825 14 325 13 409 15 271 14 840 Total water consumption 45 528 39 701 34 775 40 711 40 114 Note: Our Zimplats operation uses a potentially significant amount of fissure water in one of its mining operations that has not as yet been quantified.
Water (Mℓ) 2012 40 114
2013 40 711
2014 34 775
2015 39 701
2016 45 528 Q Water internally recycled Q Water withdrawn Q Total water consumed CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 88
Our strategic approach to mitigating impacts and conserving natural resources
Our water focus for 2017 and beyond We have prioritised the following water management activities for the year ahead.
In South Africa we aim to: O Progress towards statutory compliance with amended water use licences O Continue the phased development and implementation of operation-specific water conservation and water demand management plans at all operations, in line with continued efforts to increase the percentage of water recycled and reduce the volume of water withdrawn O Continue to engage with local authorities and communities on water-related issues to meet regulatory and social expectations
In Zimbabwe we aim to: O Ensure effluent permits are available and renewed annually O Achieve 40% recycling of water at Zimplats and maintain greater than 50% recycling of water at Mimosa O Explore the opportunity at Zimplats for recycling turf treated effluent O Finalise and implement a climate change strategy and policy for the Mimosa operations
Engaging with communities on water issues
We actively engage with our host communities to manage concerns regarding water security. At all operations we serve on regional water management and governance boards.
Through participation in the Rustenburg local municipality water crisis committee, we augment our own off-take when required to increase water pressure/flow to surrounding communities. We have donated tools and in-house expertise to the local municipality to reduce water wastage and improve supply to communities. We receive grey water from the municipality to reduce our own fresh water requirements and ensure this does not contaminate water resources. Impala Rustenburg does not supply potable water directly to surrounding communities. However, cattle and livestock do source water from our Rockwall dam. Any issues raised pertaining to this water are discussed at our bi-monthly mine and community leadership engagement forum (MCLEF) meetings. Our Marula operations have established boreholes to serve the local community. One of our SLP projects is water reticulation to the community and we also supply water from tankers when required in emergency situations. Marula participates in the Lebelelo water scheme and governance structure. Our Zimplats operations have established a water purification and distribution network and continue to assist in this regard. Our Mimosa operations are represented in district water management issues through membership of the sub- catchment council. Community raw water off-take points are provided for livestock and domestic use to surrounding communities, in addition to drilled boreholes for drinking water. CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 89
Climate change and energy management Our management approach to In South Africa we work closely with the few years, we have invested in energy climate change and energy electricity provider Eskom and continue conservation programmes and are Our operations are exposed to the to participate in various demand-side pursuing opportunities to use fuel cell physical and policy implications of a management (DSM) programmes. As an technology as an alternative energy changing climate, as well as to the more energy-intensive user, we have specific source (See below and box on page 94). immediate impacts associated with agreements in place with Eskom. In Impala Springs is working towards taking regional electricity capacity constraints. terms of a signed load curtailment its refineries off-grid through a phased We are acutely aware of the document, Impala Rustenburg is given approach. The new applications are an environmental and socio-economic risks timely caution to implement load exciting example of our participation in associated with climate change. We are curtailment whenever the power system collaborative efforts to develop fuel cell progressively integrating climate change becomes severely constrained. Energy technologies and a vibrant, sustainable mitigation into core business and reduction plans have been developed local fuel cell sector. This includes the aligning processes with anticipated and modelled for a range of Eskom planned fast-tracking of a local special climate change and GHG emission scenarios, designed to minimise risks to economic zone to produce fuel cells in reduction policies and legislation. South employee safety and minimise the Springs area. In the longer term, we Africa is finalising the carbon tax policy production loss. plan to use fuel cells as the main source scheduled to come into effect on of energy for material handling and 1 January 2017 through the National In Zimbabwe, low water levels in underground mining equipment. Fuel Treasury Department and we continue Zambia’s Kariba hydro-electric dam have cells provide electricity cleanly and to assess our liability. affected the country’s power supply. As quietly, will improve ventilation in a result, Zimbabwean authorities have underground mines and reduce heat, The possible impact of climate change awarded tenders for solar projects with a noise levels and emissions. on water supply has meant that we need projected combined output of 300MW. to review this risk and implement A more detailed review and assessment mitigating measures for the organisation Our expansion into deeper mining of the climate change risks and and communities. Security of energy operations that are more energy opportunities for Implats can be found in supply and rising energy prices remain intensive, coupled with the introduction our annual submission to the CDP’s material risks for our operations in South of a carbon tax in South Africa, highlights Climate Change Programme, available at Africa and Zimbabwe. the imperative of reducing and www.cdproject.net. optimising our energy use. Over the last
Platinum fuel cells to drive underground mine vehicles
Implats is in the process of finalising a project for the The FC has no moving parts and an initial desktop study development of a prototype fuel cell (FC) driven Load Haul has indicated a potential 22% to 25% decrease in total cost Dumper (LHD). of ownership of a FC driven LHD.
Currently, diesel fuelled LHDs are used underground. This An operational prototype vehicle for testing is expected releases diesel particulate matter in confined spaces and underground by Q4 of 2017. has an exhaust temperature of approximately 350° C. This necessitates significant mine ventilation and cooling for the removal of pollutant emissions and for sustaining legislated operating temperatures.
A fuel cell driven LHD has zero DPMs, no CO and a
minimum 40% reduction in CO2 with negligible SOx and NOx formation. In addition the exhaust temperature of the fuel cell vehicle is less than half of its diesel counterpart. This will decrease emissions underground and reduce ventilation requirements and mine operational costs. The fuel cell/ battery combination is a superior fit to the duty cycle of the LHD and results in the improved use of available power. CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 90
Our strategic approach to mitigating impacts and conserving natural resources
Implats’ absolute Scope GHG emissions reduction targets % of emissions % reduction Type in scope from base year Base year Target year Scope 1 20 2 2015 2017 Scope 2 80 5 2008 2020 Scope 2 80 35 2015 2030 Scope 2 80 63 2015 2040
Our 2016 carbon and energy Electricity consumption accounts for year, the availability of auditable data on management performance around 70% of our total energy energy savings from all operations consumption (of which 50% is consumed remains challenging. Total CO2 emissions for 2016 amounted to 3.7 million tonnes, up from 3.4 million at Impala Rustenburg), and almost 10% tonnes in 2015. The increase in emission of our overall cash cost base this year. Principal energy efficiency initiatives levels is attributed to increased Additional data on our direct and indirect implemented across the Group include production at Impala Rustenburg and greenhouse gas emissions and our underground energy efficient lighting, Zimplats, which respectively contributed energy use, by operation for each of the the optimised use of underground 46% and 13% of total emissions. past five years, are provided in the compressed air systems, the installation Most of the Group’s GHG emissions performance table on page 124. of power factor correction equipment at (3.3 million tonnes) are associated Impala Rustenburg and Mimosa and with Eskom electricity usage, with the Each year we conduct a GHG emissions diesel performance management. balance (0.4 million tonnes) associated assessment to identify areas for Current initiatives focus on improving with the direct use of coal, diesel, petrol mitigation and efficiencies. To date, more efficiencies in the shafts, notably energy and industrial burning oil. In 2016 our than R100 million has been invested in efficient lighting installations and energy energy conservation programmes. A efficient motors. At Impala Rustenburg, emissions intensity (tonnes of CO2 per tonne of ore milled) was 0.2072, down number of energy efficiency initiatives energy efficiency initiatives are targeted from 0.209 in 2015. This improvement and projects have been undertaken at mainly at our mining operations as reflects positively on energy efficiency operational level. Although we improved there is limited scope for further energy initiatives. the quality of our reporting of Scope 2 efficiency at our concentrators and 3 emissions across operations this and smelter.
Climate change indicators 2016 2015 2014 2013 2012 2011
Direct CO2 emissions (t000) 382 349 323 401 418 436
Indirect CO2 emissions (t000) 3 286 3 002 2 714 3 387 3 289 3 587 Electricity purchased (MWh 000) 3 425 3 129 2 780 3 395 3 322 3 469 Direct energy (GJ 000) 4 998 4 671 4 386 5 350 5 584 5 661 Indirect energy (GJ 000) 12 330 11 266 10 008 12 224 11 958 12 561 Total energy (GJ 000) 17 328 15 937 14 395 17 574 17 542 18 222
Total CO2 emissions Total energy consumption (t000) (GJ000) 2012 3 707 2012 17 542
2013 3 788 2013 17 574 increase) increase) 2014 3 037 2014 14 395
2015 3 351 2015 15 937
2016 3 668 FY16: 3 666 (9% 2016 17 328 FY16: 17 328 (9% CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 91
Development of zero carbon material handling equipment
In March 2016 we launched a hydrogen fuel cell (FC) powered forklift and hydrogen refuelling station at the Impala Springs base-metal refinery. The prototypes are the fruit of a three-year collaborative effort with the Department of Science and Technology, the University of the Western Cape and Hydrogen South Africa (HySA) Systems, aimed at building local skills in the development of platinum-using fuel cells. Implats contributed R6 million to HySA.
The system has been in operation at the nickel dispatch section in the refinery since October 2015. The forklift has successfully demonstrated elimination of diesel particulate matter, carbon, NOx and SOx production as well as a reduction in operational noise levels (the FC forklift operates at between 66 and 73dB while the diesel unit operates at between 69 and 83dB). It contains a novel on-board metal hydride storage system. This allows the operation of the fuel cell and refuelling system at a pressure of 180 bar rather than the 350 bar required for the international system, creating huge opportunities and improvements in safety and cost. The cost of the prototype refuelling station was R2 million, a fraction of the €500 000 cost of an off-the-shelf 350 bar European system.
Building on the lessons learnt and the skills developed through this process, the plan is to roll out a fuel cell solution to underground load haul dumpers at the Impala Rustenburg 14 Shaft. Detailed design has also been completed for a 1.2MW stationary hydrogen-fed fuel cell system. We have developed a prototype system, which will use natural gas as a fuel source, produce 8MW of power, and off-set 8MW of heat. The system will be installed next year adjacent to the Impala Springs refinery, for performance testing and to demonstrate the different fuels that can be used. CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 92
Our strategic approach to mitigating impacts and conserving natural resources Air quality management Our management approach to monitoring networks are in place at tailings dam and have proved air quality Impala Springs, Impala Rustenburg and successful. The dust suppressant is The most significant air quality issue for Zimplats operations via a network of being used to minimise dust emission the Group relates to the sulphur dioxide ambient monitoring stations, which are from these sources when necessary. managed through site-specific (SO2) emissions from our smelting and refining operations at Zimplats, Impala procedures. These monitoring stations We have installed improved pollution
Rustenburg and Impala Springs. Both measure SO2, NOx and particulate matter prevention technology. Impala Springs Impala Rustenburg and Impala Springs and provide an indication of ambient air has made good progress with are located in priority areas as quality levels and associated trends. The implementing its R250 million project to promulgated by the National ambient monitoring results reflect the address airborne emissions from the Environmental Management Air Quality quality of ambient air in the region and coal-fired boilers, due for completion in Act and have the required air emission not just around the operations. Source 2017. In a phased approach, this will licences (AEL). In line with the new apportionment analysis is not currently ensure sustained compliance to NOx, requirements of the Act, our South undertaken at Impala Rustenburg as it is SOx and particulates emissions as African operations will be legally required much more difficult to accurately prescribed by current and future limits in to report on all air emissions (listed attribute the source of pollution due to our air emissions licence. activities, mining activities and GHG the extent of the mine lease area. emissions) on the National Air Emissions Various factors can influence the ambient Zimplats has continued to implement its Inventory System by March 2017. measured data. We report the results of sulphur abatement programme. A Certain emission factors are not included the ambient monitoring to the relevant proposed new furnace installation in our licences and we are engaging, authority each quarter and as and when project at Zimplats will incorporate a through the Chamber of Mines, on the requested. All SO2 exceedances are converter fugitive emissions capturing development of measuring and investigated to determine if the wind system which will improve ground level monitoring tools. direction suggests it could be originating SO2 concentrations around the Selous from the smelter operation. Metallurgical Complex (SMC) community. Zimplats is operating on a red permit Recent air dispersion modelling studies (issued for a discharge considered to This year Zimplats developed a detailed have shown that smelter fugitive present a high risk to the environment) action plan to improve the reliability of its emissions contribute significantly to from the Environmental Management air quality monitoring system. Dust current SO2 ground level concentrations. Agency (EMA). The current legislative fall-out monitoring is conducted at The new furnace will operate on its own Marula and Mimosa. During 2016, with the existing furnace as a standby SO2 emission point source limit of 50mg/ Nm3 is considered virtually unattainable Marula conducted air dispersion unit. Extension of the smelter chimney even with best practice abatement modelling for its operations and Mimosa stack will come in future when the two technologies. Existing Zimbabwe undertook an air emissions monitoring furnaces, inclusive of furnace matte legislation does not provide for ground survey for its emitting facilities, which casting, are required to operate level or ambient air quality standards. were all within specified permits simultaneously. In the longer term, the Zimbabwe is formulating a new air conditions. Persistent dry conditions in installation of an acid plant is planned to quality standard based on South African the Rustenburg area have resulted in ensure smelter stack point source and legislation. Zimplats is represented in the more dust. We are actively managing our ground level concentrations around the drafting of air pollution standards. dust sources to stay below the national SMC communities fall within the South standard. Dust suppressant trials were African legislative limits. Extensive ambient air quality monitoring undertaken on the haulage roads around networks as well as fall-out dust the tailings dam and side stopes of the
% direct SO2 emission (%) Total direct SO2 emitted (t) 2012 18 463 18 O Rustenburg
2013 18 536 increase) O Refineries 2 O Zimplats 2014 30 735
2015 27 706
80 2016 31 392 FY16: 31 392 (13% CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 93
Our 2016 performance on air 27 706 tonnes in 2015. Our Zimplats Our air quality focus for 2017 quality operations contributed 80% of total and beyond
In terms of managing our direct impacts, direct SO2 emissions, while Impala Principal focus areas for 2017 are to: we are operating within the conditions of Rustenburg and Impala Springs O Maintain ongoing operational the air emissions licence for our Impala operations contributed 18% and 2% improvement and monitoring to
Springs and Impala Rustenburg respectively. At Zimplats, SO2 emissions ensure emissions are minimised and operations, valid until 2018 and 2019 were above plan, representing a 14% permit conditions realised respectively. Our Zimplats operation increase from the previous year, due to O Ensure adherence with the National continues to exceed the severe high sulphur content in the furnace feed. Air Emissions Inventory System legislated emissions specifications, reporting regulations for the South emitting an average 65 tonnes per day Indirect SO2 amounted to 27 355 tonnes African operations (2015: 26 513 tonnes) and direct NO O of SO2 against a limit of 200 tonnes per x Maintain SO2 emissions at Impala quarter. An annual fine is paid for amounted to 14 435 tonnes (2015: Rustenburg at less than 16 tonnes exceeding the emissions specifications. 13 459 tonnes). Further details on the per day
SO2 and NOx emissions at each of our O Complete the waste classification of This year, total direct Group emissions of operations over the past five years are the Impala Rustenburg tailings dam provided in the performance table on SO2 were 31 392 tonnes, compared to and thereafter a health study of the page 124. tailings material O Ensure the successful implementation of the Impala Springs boiler abatement project and continue to reduce the ammonia emissions at the cobalt plant O Continue the sulphur emissions reduction programme feasibility studies at Zimplats CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 94
Our strategic approach to mitigating impacts and conserving natural resources Managing our waste Our waste management activities across extraction facility, to enable a sustainable Our focus on waste in 2017 the Group seek, as a minimum, to solution for the disposal of lead laden and beyond ensure compliance with evolving cupels, and exploring disposal solutions At the South African operations focus legislative requirements relating to waste. for fluorescent tube drums and areas are to: polychlorinated biphenyl (PCB) O Ensure all listed waste management At Impala Springs and Impala contaminated transformer oil. Zimplats is activities are licensed Rustenburg, we focus on retaining our investigating the disposal of scrap O Conduct external legal compliance waste licences by ensuring compliance trackless mining equipment and old audits as specified by all waste with statutory requirements and site- base-metal refinery chemicals and licences (landfill site and salvage yard) specific conditions. A priority is to meet continues to investigate a vermiculture at Impala Rustenburg the National Environmental Management: project at SMC for all biodegradable O Ensure all listed waste streams are Waste Act statutory obligation on our waste. Impala Springs continues to reclassified as per SANS 10234 at all South African operations to reclassify investigate alternative methods for the South African operations waste streams by September 2016. We disposal of crystalliser salts and jarosite. O Compile and report all required waste have reclassified the bulk of the waste All legal requirements in terms of the figures onto the South African Waste streams and assessed the implications in Basel Convention are being assessed. Information System terms of necessary design modifications to tailings dams and waste rock dumps. This year the Group’s recycling was At the Zimbabwean operations focus Marula is upgrading its salvage yard and 68%, up from 67.1% in 2015. A large areas are to: will submit its waste licence application portion of the waste from Impala O Set up waste segregation systems at in 2017. Rustenburg and Impala Springs is the Zimplats landfill sites to enable treated. Although treatment is regarded recycling and engage community- Zimplats monitors leachate collection for as a better waste management solution based organisations through the EMA its Ngezi and SMC landfills as per waste than disposal, technically it is not to augment waste recycling efforts and effluent regulations and is considered a recycling method. O Continue to investigate alternative investigating alternative ways to dispose disposal solutions for various waste of used tyres. The hazardous waste Data on the Group’s non-mineral waste streams situation remains challenging in (hazardous and non-hazardous) and O Finalise the design of a lead extraction Zimbabwe, with no best practice mineral waste is provided in the facility at Mimosa for the disposal of facilities being available. The Mimosa performance table on page 126. lead laden cupels and implement the operations are designing a lead initiative once approved CONSERVE NATURAL RESOURCES AND MITIGATE IMPACTS Implats Sustainable Development Report 2016 \ PAGE 95
Land management and biodiversity Our approach to land stewardship At Zimplats, we have continued with an ecosystem deemed under threat and focuses on rehabilitation, while ensuring open pit rehabilitation at Ngezi and that appears on the Montreux record. the responsible management of water, revegetation of all new surfaces at the Although Impala Springs is not seen to biodiversity, mineral waste and two tailings dams, rehabilitating 16.0ha have any direct impact on this hazardous substances. during the year. Across the Group this ecosystem, it is represented on the year a total of 27.5ha of disturbed land Blesbokspruit forum and is involved with Rehabilitation was rehabilitated (2015: 9.4ha). environmental education and A principal focus of our land stewardship Additional data on our land conservation initiatives at the is on ensuring effective rehabilitation. management, by operation, is provided Blesbokspruit Grootvlei Trust. This year, This is an important regulatory, financial in the performance table on page 125. Zimplats renewed a memorandum of and reputational risk for the Company The Mimosa operations do not have any agreement on lease of the Zimplats and is linked to our closure liabilities, opencast mining operations and claims (276ha of rehabilitated, non- which are reviewed and updated rehabilitation is limited to tailings storage operational land), which are within the annually in line with regulations. facilities. Annual revegetation of the Ngezi National Parks boundary. tailings slopes is ongoing. The Group seeks to entrench the Zimplats is implementing a lantana concept of design for closure throughout Biodiversity camera eradication project around the operations by ensuring that all aspects Given the potential of mining activities to SMC complex, which will aid in of rehabilitation are defined at the project affect habitats through land disturbance complying with the regulations pertaining planning phase. Determining the closure and pollution, biodiversity monitoring and to alien invasive species. The operation cost liability and the associated financial management is a requirement. The also plans to conduct archaeological provisions and security, if applicable, biodiversity impacts of our mining excavations of the identified Middle Stone Age sites in line with the remains a priority. A current focus is on operations are determined through the recommendations made in an aligning the closure liability assessment environmental impact assessments archaeological survey report. protocols and methodology for the (EIAs). All our operations have site- South African mining operations with specific procedures and standards to Our Mimosa operations are not located regulations pertaining to the financial manage the impacts associated with in a sensitive area with fauna and flora of provision for prospecting, exploration, their activities. A formal biodiversity high significance. A resource mining or production operations, management plan, which incorporates conservation procedure is in place that published in November 2015. The new the published mining biodiversity prohibits tree felling and animal hunting regulations represent a significant guidelines from the South African and trapping. Mimosa will continue to change to the MPRDA’s financial National Biodiversity Institute (SANBI), include tailings line monitoring as part of provision requirements, addressing was implemented at Impala Rustenburg. plant shutdown maintenance schedules concurrent rehabilitation and contingent This will assist in managing and to minimise tailings spillages, which may liabilities in a more specific and mitigating potential environmental have a negative impact on the structured manner. The regulation impacts from our mining activities. Our environment. introduced a specific transitional period Marula operation has implemented a and will thus impact our FY2017 closure site-specific biodiversity management Our focus on land and biodiversity in liability updates. The Chamber of Mines plan. We plan to develop and implement 2017 and beyond has been engaging with the Department strategic biodiversity management plans In the year ahead we plan to: of Mineral Resources regarding the at all our operations. O Maintain rehabilitation monitoring and implications, both operationally and management programmes at the financially, of the new regulation. At Impala Rustenburg, we have initiated opencast pit sites and tailings dams a medium to long-term programme to O Provide operations with a The implication of the new waste systematically replace alien invasive trees rehabilitation approach and licensing requirement for mine residue identified along our main road network methodology for the deposits and stockpiles is being with indigenous species. We continue to decommissioning and closure of investigated for the slimes dam at Impala implement rehabilitation interventions at identified non-operational areas Springs and a contaminated land the historic opencast sites. However, the O Conduct biodiversity monitoring and assessment for this area is planned. extreme drought experienced across the continue with the alien invasive tree country has necessitated a slight replacement project Our rehabilitation activities are focused postponement in these interventions. O Align the closure liability assessment on ecosystem functionality, which is Extensive alien and invasive weed protocols and methodology for the essential for sustainability beyond mine control is performed at the sites. South African mining operations with closure. We have maintained an active Additional alien and invasive species the newly published regulations on rehabilitation monitoring programme assessments at all the operational units financial provisions (using Landscape Function Analysis) at at Impala Rustenburg and Impala O Align the annual closure liability Impala Rustenburg’s rehabilitated Springs are planned for 2017. assessment at Zimplats with the opencast pits as well as the grassed South African assessment side slopes at the tailings dam. We plan Zimplats and Impala Springs both methodology and review the closure to provide operations with a rehabilitation operate close to areas of recognised and rehabilitation plans approach and methodology for the high biodiversity. The Impala Springs decommissioning and closure of refining operation is near the Cowles identified non-operational areas. Dam that feeds into the Blesbokspruit, We encourage all stakeholders to share their views on Implats’ activities related to delivering on its strategic commitment to minimise negative social and environmental impacts and to promote meaningful social and economic transformation. Appendix
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 98
Responding to the Mining Charter
Implats seeks to comply with or exceed all elements of the Mining Charter. Our transformation strategy is informed by the seven elements of the Mining Charter with housing and living conditions playing a pivotal role in five of these elements. We leverageeach element of the Mining Charter in terms of our business performance and therefore increase our value creation potential.
IMPALA PLATINUM Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Reporting Has the company reported a Documentary proof Annually Yes Yes/No Yes level of compliance for the of receipt from calendar year Department of Mineral Resources (DMR) Ownership Minimum target for effective Meaningful Yes/No Yes HDSA ownership economic participation Full shareholder 26% 30.4% Yes rights Housing and Conversion and upgrading Percentage Occupancy rate Occupancy of Yes/No Yes living of hostels to attain the reduction of of one person per one person conditions occupancy rate of one occupancy rate room per room person per room towards 2014 target Conversion and upgrading Percentage Family units Family units Yes of hostels into family units conversion of established established hostels into family units Procurement Procurement spent from Capital goods 40% 58% 5% 5.0% and enterprise BEE entities Services 70% 74% 5% 5.0% development Consumables 50% 76% 2% 2.0% Multinational suppliers’ Annual spend on 0.5% of 0.5% 3% 1.6% contribution to social fund procurement from procurement multinational value suppliers Employment Diversification of the Top management 40% 63% 3% 3% equity workforce to reflect the (board) country's demographics to Senior 40% 44% 4% 4% attain competitiveness management (Exco) Middle 40% 40% 3% 3% management Junior 40% 52% 1% 1% management Core skills 40% 76% 5% 5%
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 99
IMPALA PLATINUM Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Human Development of requisite HRD spend as 5% 6% 25% 25% resources skills, including support for percentage of total development South African-based R&D annual payroll initiatives intended to (excluding develop solutions in mandatory skills exploration, mining, development levy) processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation Mine Conduct ethnographic Implement Up-to-date Up-to-date 15% 15% community community consultative and approved project project development collaborative processes to community implementation implementation delineate community needs projects analysis Sustainable Improvement of the Implementation of 100% Annual progress 12% 12% development industry’s environmental approved EMPs achieved against and growth management approved EMPs Improvement of the Implementation of 100% Action plan 12% 11.9% industry’s mine health and the tripartite action implemented. safety performance plan on health and Lower score safety (95%) achieved for a sub-category under implementation of culture transforming framework Utilisation of South Percentage of 100% 100% 5% 5% African-based research samples in South facilities for analysis of African facilities samples across the mining value Beneficiation Contribution of mining Additional volume Section 26 of the company towards contributory to MPRDA beneficiation (this measure is local value addition (percentage effective from 2012) beyond the above baseline) baseline Total score 100% 98.5%
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 100
Responding to the Mining Charter
MARULA PLATINUM Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Reporting Has the Company reported Documentary proof Annually Yes Yes/No Yes a level of compliance for the of receipt from calendar year Department of Mineral Resources (DMR) Ownership Minimum target for effective Meaningful Yes/No Yes HDSA ownership economic participation Full shareholder 26% 27% Yes rights
Housing and Conversion and upgrading Percentage Occupancy rate Occupancy Yes/No N/A living of hostels to attain the reduction of of one person per of one person conditions occupancy rate of one occupancy rate room per room person per room towards 2014 target Conversion and upgrading Percentage Family units Family units N/A of hostels into family units conversion of established established hostels into family units Procurement Procurement spent from Capital goods 40% 68% 5% 5% and enterprise BEE entities Services 70% 69% 5% 4.9% development Consumables 50% 86% 2% 2% Multinational suppliers’ Annual spend on 0.5% of 0% 3% 0% contribution to social fund procurement from procurement multinational value suppliers Employment Diversification of the Top management 40% 100% 3% 3% equity workforce to reflect the (board) country's demographics to Senior 40% 50% 4% 4% attain competitiveness management (Exco) Middle 40% 69% 3% 3% management Junior 40% 59% 1% 1% management Core skills 40% 70% 5% 5%
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 101
MARULA PLATINUM Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Human Development of requisite HRD spend as 5% 7.3% 25% 25% resources skills, including support for percentage of total development South African-based R&D annual payroll initiatives intended to (excluding develop solutions in mandatory skills exploration, mining, development levy) processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation
Mine Conduct ethnographic Implement Up-to-date Up-to-date 15% 15% community community consultative and approved project project development collaborative processes to community implementation implementation delineate community needs projects analysis
Sustainable Improvement of the Implementation of 100% Lower score 12% 10% development industry’s environmental approved EMPs (2 out of 4) and growth management on period assessment of financial provisions sub-category Improvement of the Implementation of 100% Action plan 12% 11.8% industry’s mine health and the tripartite action implemented. safety performance plan on health and Lower score safety (89%) achieved for a sub-category under implementation of culture transforming framework Utilisation of South Percentage of 100% 100% 5% 5% African-based research samples in South facilities for analysis of African facilities samples across the mining value
Beneficiation Contribution of mining Additional volume company towards contributory to beneficiation (this measure is local value addition effective from 2012) beyond the baseline
Total score 100% 94.7%
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 102
Responding to the Mining Charter
AFPLATS (PTY) LIMITED Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Reporting Has the Company reported Documentary Annually Yes Yes/No Yes a level of compliance for proof of receipt the calendar year from Department of Mineral Resources (DMR) Ownership Minimum target for Meaningful Yes/No Yes effective HDSA ownership economic participation Full shareholder 26% 26% Yes rights Housing and Conversion and upgrading Percentage Occupancy rate N/A Yes/No Yes living of hostels to attain the reduction of of one person conditions occupancy rate of one occupancy rate per room person per room towards 2014 target Conversion and upgrading Percentage Family units N/A Yes of hostels into family units conversion of established hostels into family units Procurement Procurement spent from Capital goods 40% 82% 6% 6% and enterprise BEE entities Services 70% 77% 6% 6% development Consumables 50% N/A N/A Multinational suppliers’ Annual spend on 0.5% of N/A N/A contribution to social fund procurement from procurement multinational value suppliers Employment Diversification of the Top management 40% N/A N/A equity workforce to reflect the (board) country's demographics to Senior 40% N/A N/A attain competitiveness management (Exco) Middle 40% N/A N/A management Junior 40% N/A N/A management Core skills 40% N/A N/A Human Development of requisite HRD spend as 5% N/A N/A resources skills, including support for percentage of total development South African-based R&D annual payroll initiatives intended to (excluding develop solutions in mandatory skills exploration, mining, development levy) processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 103
AFPLATS (PTY) LIMITED Progress Compliance (calendar year Achieved Element Description Measure target by 2015 2015) Weighting score
Mine Conduct ethnographic Implement Up-to-date Up-to-date 15% 15% community community consultative approved project project development and collaborative community implementation implementation processes to delineate projects community needs analysis Sustainable Improvement of the Implementation of 100% Annual 12% 12% development industry’s environmental approved EMPs progress and growth management achieved against EMPs Improvement of the Implementation of 100% N/A N/A industry’s mine health and the tripartite action safety performance plan on health and safety Utilisation of South Percentage of 100% 100% 5% 5% African-based research samples in South facilities for analysis of African facilities samples across the mining value Beneficiation Contribution of mining Additional volume Section 26 of company towards contributory to the MPRDA beneficiation (this measure local value addition (percentage is effective from 2012) beyond the above baseline) baseline Total score 44%* 44% * Afplats is rated according to an adjusted total of 44 as it is in a care and maintenance phase.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 104
Responding to the President’s Framework Agreement
Context and commitments The Framework In signing the PFA, Implats Agreement commits to: Our contribution in 2016
Building a O Acting in a fair and impartial Throughout our operations we have undertaken relationship-building relationship manner in dealing with trade sessions, working within the envisioned structures outlined in the among unions and acting swiftly recognition agreement, which includes a code of conduct. stakeholders where these principles are Implats interdicts against any unapproved mass meetings or based on trust violated picketing areas. Future forums, as well as employee relations O and respect Working with government and structures and regular meetings, assist in resolving issues in order to labour to identify and address prevent marches. All parties are constantly reminded that the correct factors behind workplace and legal procedure needs to be followed before a march can be conflict approved. O Improve internal security measures and consistently Operations work closely with security to prevent intimidation, and to implement them at the ensure ethical behaviour. workplace We continued to engage with various government departments O Negotiate in the workplace directly, working with the Chamber of Mines (the Chamber) and and industry in ways that labour representatives to find sustainable solutions to industrial support long-term relations challenges in the country. development and constructive peaceful labour relations Improved community engagement structures ensure broader stakeholder representation, as well as engagement at different levels between the community and operations. We have successfully rolled out a community communication plan. Task teams in respect of wage negotiations are progressing well. Strengthening O Respect the rule of law and We have continued to strengthen our relationships with the AMCU labour relations the legal framework in labour national leadership and its elected representatives at Impala relations matters Rustenburg, and have good relations with its union representatives O When taking decisions, to take at Marula, as well as with the NUM representatives at all our account of both the broader operations. context in South Africa (in The envisioned structures required in terms of the recognition particular the need to reduce agreements with unions are in place and functioning: the stabilised poverty, inequality and industrial relations climate has been maintained. unemployment), as well as the interests of investors Union membership verification and processing of union membership O Respect agreements and legal stop orders against the Company’s payroll is conducted in obligations accordance with the Labour Relations Act and continuously O Contribute to creating cordial reviewed. relations between unions in Strong collaboration with unions underpinned our ability to reach the sector agreement on rationalising the workforce at Impala Rustenburg and O Follow proper labour relations negotiating a positive outcome with no industrial action taken. procedures O Work with labour to fast-track We implement initiatives aimed at ensuring more effective solutions resolution of disputes for working in a multi-union environment, and a more open system O The development of a where all employees are recognised and respected as equals, based pre-negotiations framework on a culture of trust, respect and care. O Recognise and respect This year we completed a diversity survey at all our operations to cultural diversity in the gather perceptions on issues including the implementation of our workplace values, diversity management, and women in mining.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 105
Context and commitments The Framework In signing the PFA, Implats Agreement commits to: Our contribution in 2016
Ensure the rule O Properly adhere to laws, The Chamber continues to engage actively with the security, crime of law, peace regulations and charters prevention and criminal justice cluster through the national joint and stability governing the sector and operations command (NATJOC). Companies participate through the consistently apply their policies provincial joint operations command (PROVJOCs) and NATJOC and respect agreements (including information sharing). O Take measures to protect staff Implats has committed to adopting the voluntary principles on members from violence and security and human rights (VPSHR) at its operations. We introduced intimidation and to ensure that the VPSHR at Impala Springs in 2015 and this year at Impala security personnel act in Rustenburg. The process will be conducted at our Marula operations accordance with the law at all next year, where the security detail has been increased in response times to growing levels of discontent in the mine’s communities. O Avoid acting in a manner that provokes or raises tensions in There were no reports of weapons carrying, or serious violence and the workplace intimidation in the period under review. O Participate in the Mine Crime Implats’ security teams have maintained a good visibility in traditional Combating Forum (MCCF) safety hotspots, and reaction units remain on high alert to quell any O Take all legal steps against unrest that may erupt. unprotected labour actions O Work with government and Security management at the mines work closely with the SAPS. labour in developing protocols Security plans were developed jointly with the mine and SAPS and for security and law are reviewed regularly to manage possible incidences of unrest. enforcement Operations play an integral part in the mine MCCFs established in O Where possible, inform police lease areas to gain intelligence on any potential security-related of all planned and unplanned issues. strikes and protests Strategic relationships have been maintained with the Phokeng, Boitekong and public order policing forum. Swift discipline is enforced through a disciplinary code. Improve living O Accelerating the A total of R236 million was expended on employee housing (2015: conditions implementation of human R228 million). settlement interventions Implats continues to participate in the Chamber’s task teams, and to O Assisting with resources and work through SLPs and the Mining Charter to improve living technical support for conditions and address housing issues. upgrading human settlements around mining towns within Implats is implementing a housing strategy that was informed by the the context of regulatory findings of a baseline social impact study in 2014 within the requirements and additional communities in which we operate. Focus areas include providing voluntary contributions rental stock and house ownership, investigating decent housing solutions for backroom dwellers, and upgrading communal facilities. Consultation is ongoing with social partners, the Royal Bafokeng Administration (RBA) and Rustenburg local municipality. We held a follow-up meeting with the RBA regarding prospective portions of land for rental stock. RBA is conducting due diligence on a portion of land north of Impala operations. The development of our second home ownership flagship project, the Platinum Village in Rustenburg, has progressed well. Phase two (the construction of a further 555 units) commenced in October 2015, and a Platinum Village school is being built. Our Marula operation completed its housing project, delivering 150 sectional title units for employee home ownership.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 106
Responding to the President’s Framework Agreement
Context and commitments The Framework In signing the PFA, Implats Agreement commits to: Our contribution in 2016
Assist workers O Empower employees to be Financial literacy is addressed as part of the Implats team with financial able to adequately manage mobilisation and ex leave induction training. literacy and their financial affairs In 2016, 494 employees were enrolled for ABET, which provides for O financial Find sustainable solutions to basic numeracy skills. planning employee indebtedness and guard against unscrupulous We offer employees a one-day financial life skills course to explain micro lenders payslips. O Inform individual employees Implats employs an experienced former sheriff of the court to assist upon receipt of emolument in identifying and curbing fraudulent garnishee orders. Auditing of garnishee orders garnishee orders is ongoing. In instances where breaches of the rules relating to judgments and emoluments attachment are identified, court proceedings are instituted. The number of garnishee orders has reduced and maintenance orders and administration orders have stabilised. Payroll officials record and monitor the indebtedness status of employees and trends; employees with excessive debt are referred to financial advisers (Careways), who also provide debt counselling and debt consolidation services. Management and union leadership are working closely to appoint a second service provider before end 2017. Implats continues to participate in efforts to tackle unscrupulous lenders. All unscrupulous lenders are removed from hostels and mine property. Legal action is taken where necessary. Last year we approached the courts to protect the rights of employees, as a result of which more than 370 emolument orders were found to be illegal, with almost R3 million of illegal debts being written off. The Chamber has an internal task team on employee indebtedness and promoting financial literacy training in which we participate. Reaching O Accelerate progress in Implats has continued to focus on advancing transformation. Our optimal levels of transformation, including the performance against the Mining Charter is outlined on pages 98 to transformation areas of ownership, 103 in this report. procurement, employment, beneficiation, human resource development, as well as health and safety in line with the targets set out in the Mining Charter O Review its long-term strategy and support initiatives for restructuring, reskilling to achieve competitiveness, sustainable growth and transformation
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 107
Context and commitments The Framework In signing the PFA, Implats Agreement commits to: Our contribution in 2016
Transform the O Improve socio-economic Implats has participated in government’s Project Phakisa, a multi- migrant labour conditions in labour sending stakeholder-led initiative designed to fast-track the implementation of system areas solutions to critical development issues, including migrant labour, O Enforce and implement all housing and skills shortages, and stimulating growth in the mining elements and commitments of sector. the Mining Charter Implats participates in the task team spearheaded by the O Ensure integration and Department of Performance, Monitoring and Evaluation (DPME) – a implementation of SLPs and multi-stakeholder committee consisting of labour, industry and IDPs in labour sending areas government – established in 2014 to participate in the government and mining areas driven policy review around migrant labour. SLP plans were developed through an engagement process with the Mine Communities Leadership Engagement Forum (MCLEF) and are aligned with the municipalities’ IDPs. We have continued to deliver on our commitments and engage regularly with key stakeholders in areas of operation. Implats has continued to meet the requirements of the Revised (2010) Mining Charter and in many areas exceeded targets. (pages 98 to 103). Resolve labour O Negotiate in the workplace Impala works closely with unions to resolve all internal disputes disputes as and industry in ways that through dispute resolution mechanisms and within the auspices of speedily as support long-term the Commission for Conciliation Mediation and Arbitration (CCMA). possible in the development and constructive Seven task teams, including HR managers and union best interest of peaceful labour relations representatives, have continued to address issues raised in the 2014 members and wage agreement. Good progress was made in the following key South Africa areas: employee share ownership plans; employee indebtedness; retrenchment and severance; retirement benefits and funeral cover; medical separation and incapacitation; and housing and living conditions. Preparations for wage negotiations included providing negotiation training for shop stewards and sharing information regularly with union representatives and all employees.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 108
Responding to the National Development Plan
The NDP objective Context and commitments Our contribution in 2016
Transforming the O Reducing poverty and O Our investment in employment opportunities, education, health society and inequality by broadening and infrastructure contribute to building social cohesion. uniting the opportunity through economic O We are committed to promoting broad-based transformation, country inclusion, education and skills mutual respect and mutual responsibility as evidenced by the development nature of our initiatives presented in this report, for example O Promoting mutual respect employment equity, skills development, respect and care, O Deepening appreciation of our preferential procurement and housing. mutual responsibilities O This year we invested R105 million in socio-economic development projects for our South Africa operations, inclusive of our social and labour plan (SLP) commitments. An additional R236 million was spent on improving accommodation and living conditions of our employees (see pages 71 to 73). O A breakdown of our community development expenditure by focus areas is presented in the table on page 70. An economy that O In 2030, the economy should O We participated in government’s Project Phakisa process, aimed creates more be close to full employment at accelerating progress in the NDP priority areas. jobs, is more O It should equip people with the O We provided more than 34 000 direct jobs in South Africa. inclusive and necessary skills O Our procurement spend of R8.1 billion to suppliers and that shares the O It should ensure that contractors in South Africa stimulated significant employment fruits of growth ownership of production is opportunities throughout our value chain. more equitably more diverse O We invested R4 million in our enterprise and supplier development O The functioning of the labour programmes, as part of a R20 million allocation to enterprise market should be improved development over the SLP five-year period. through reforms on dispute O With our training spend of R512 million in South Africa we resolution invested significantly in our people skills. O Small business should be O We paid taxation and royalties of R2 137.7 million in South Africa. supported O A breakdown of the economic value added throughout 2016 is provided in the table on page 65. Building safer O People living in South Africa O Implats continues to participate in various mine crime combating communities should feel safe and have no forums (MCCF), established through the President’s Framework fear of crime Agreement. These include one in Phokeng (Rustenburg), one in O People should have Gauteng (West Rand) and one in Limpopo. Mining house security confidence in the criminal heads are active participants. The agenda points include but are justice system and police not limited to: service – crimes against mine and mine employees O There should be greater – public violence provision for community – planned marches participation in community – intelligence regarding crime safety – identification of hotspots – profiling of individuals causing violence/destabilisers O Further details on our initiatives to ensure the rule of law, peace and stability in our communities are detailed on page 105. Improving O To grow in a more inclusive O Our strategic approach to investing in socio-economic infrastructure manner the country needs development initiatives continues to focus primarily on higher levels of investment in infrastructure, health, education, community empowerment and economic infrastructure, as poverty alleviation projects. The strategy aims to complement our well as infrastructure that accommodation and living conditions initiatives, through the supports human settlements provision of schools, clinics and other amenities. Our goal is to establish infrastructure that will address urgent needs in mine communities with the focus on longer-term impacts. O Our 2016 achievements for social investments are reviewed on page 67. We also contribute to modernising and optimising of our mining infrastructure through our significant spend on capital projects. In 2016 we invested R3 560 million on these mining projects.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 109
The NDP objective Context and commitments Our contribution in 2016
Reversing the O Settlement patterns should O Our flagship investment in the well-being of our local communities spatial effects of meet the needs and remains our commitment to the provision of accommodation and apartheid preferences of citizens taking improved living conditions for our people. To this end, we into account broader social, expended R236 million on employee housing in South Africa. environmental and economic Since 2008 we have built nearly 3 000 houses for employees. interests O With our housing and community development projects in our areas of operation we endeavour to create viable local communities in which employees are able to reside with their families in stable, healthy and secure environments. Improving O Measures taken to address O We invested R105 million in skills development programmes in education, poor education and health that South Africa, including R43 million on education through our training and significantly reduce social investment initiatives. innovation and opportunities for a productive O 494 employees took part in our ABET programme to ensure providing quality life and undermines the functional literacy and numeracy. healthcare dynamism of the South African O In addition to our occupational health measures we continue to economy address non-occupational health risks such as TB and HIV through our wellness programmes. O We collaborate with The Employment Bureau of Africa (TEBA) to address community health issues. O We continue to support the National Health Insurance initiative through partnerships, working closely with the DoH and through the Bojanala Health Forum. O Through the Impala Bafokeng Trust we continue to support the community clinic in Luka. Fighting O Measures taken to address O We promote high standards of ethical behaviour throughout our corruption high corruption levels that activities. frustrate the state’s ability to O We have a zero-tolerance stance on fraud and corruption, with all deliver on its development employees, business partners, contractors and associates mandate required to conduct themselves in accordance with the Implats code of ethics and our fraud policy. O Adherence to the code of ethics is facilitated by a toll-free ethics helpline, for confidential reporting (whistle-blowing) of alleged incidents. An inclusive and O South Africa’s rural O Our social investment projects benefited 7 000 people in South integral rural communities should have Africa through investments in infrastructure, health and housing. economy greater opportunities to O Our enterprise development initiatives supported more than participate fully in the 10 local businesses (tier 1) and helped create jobs. economic, social and political life of the country through access to good quality education, healthcare, transport and other basic services Transitioning to O The country needs a coherent O We have continued to implement energy conservation a low-carbon plan to emit less carbon, use programmes at our operations and pursue opportunities to use resource water more sustainably, and fuel cell technology as an alternative energy source. We work efficient protect the oceans, soil and closely with national power utility Eskom, and continue to economy wildlife participate in various demand-side management (DSM) programmes. This year we launched a fuel cell operated forklift and refuelling station at Impala Springs refineries. In the longer term, we plan to use fuel cell technology as the main source of energy for material handling and underground mining equipment, and collaborate in developing a vibrant, sustainable local fuel cell sector. O We continue to work with industry bodies and government in seeking an appropriate policy response to climate change that does not compromise the competitiveness of our sector noting both our important development contribution as well as the role of platinum group metals in the transition to a lower carbon economy. O Our 2016 carbon and energy management performance is reviewed on page 90.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 110
Our performance data
People South Africa Occupational levels Foreign Male Female nationals Total Rustenburg A C I W A C I W Male Female Male Female Total
Top management 1 0 0 0 0 0 0 0 0 0 1 0 1 Senior management 16 0 2 33 5 0 0 2 2 0 53 7 60 Professionally qualified and experienced specialists and mid-management 132 7 13 205 27 0 5 41 8 0 365 73 438 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 2 572 23 0 601 466 6 4 71 253 4 3 449 551 4 000 Semi-skilled and discretionary decision making 7 157 8 0 69 735 2 0 7 1 503 3 8 737 747 9 484 Unskilled and defined decision making 12 614 20 0 9 1 545 3 0 0 1 701 33 14 344 1 581 15 925 Total permanent 22 492 58 15 917 2 778 11 9 121 3 467 40 26 949 2 959 29 908 Non-permanent employees 60016101006815 Grand total 22 498 58 15 917 2 784 12 9 122 3 467 40 26 955 2 967 29 923
Foreign Male Female nationals Total Marula A C I W A C I W Male Female Male Female Total
Top management 0000000000000 Senior management 5 0 0 3 0 0 0 0 0 0 0 0 8 Professionally qualified and experienced specialists and mid-management 23 0 0 19 8 0 0 4 2 0 44 12 56 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 353 2 0 36 54 0 1 7 85 0 476 62 538 Semi-skilled and discretionary decision making 1 048 0 0 0 93 0 0 0 40 0 1 088 93 1 181 Unskilled and defined decision making 1 299 0 0 2 428 0 0 0 22 3 1 323 431 1 754 Total permanent 2 728 2 0 60 583 0 1 11 149 3 2 939 598 3 537 Non-permanent employees 2 0 0 0 1 0 0 0 0 0 2 1 3 Grand total 2 730 2 0 60 584 0 1 11 149 3 2 941 599 3 540
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 111
Foreign Male Female nationals Total Impala Springs A C I W A C I W Male Female Male Female Total
Top management 0 0 0 0 0 0 0 0 0 0 0 0 0 Senior management 1012100120628 Professionally qualified and experienced specialists and mid-management 15 0 5 29 10 1 4 9 5 1 54 25 79 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 169 3 5 92 40 1 1 16 3 0 272 58 330 Semi-skilled and discretionary decision making 366 4 2 21 98 0 1 13 6 0 399 112 511 Unskilled and defined decision making 0000000000000 Total permanent 551 7 13 144 149 2 6 39 16 1 731 197 928 Non-permanent employees 60036000009615 Grand total 557 7 13 147 155 0 6 39 16 1 740 203 943
Foreign Male Female nationals Total Head office A C I W A C I W Male Female Male Female Total
Top management 0 0 0 2 0 0 0 1 0 0 2 1 3 Senior management 4 0 0 7 1 0 1 2 1 0 12 4 16 Professionally qualified and experienced specialists and mid-management 1 0 0 5 5 0 1 7 1 0 7 13 20 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 0 0 0 0 4 0 0 3 0 0 0 7 7 Semi-skilled and discretionary decision making 0 0 0 1 1 0 0 4 0 0 1 5 6 Unskilled and defined decision making 0000100000011 Total permanent 5 0 0 15 12 0 2 17 2 0 22 31 53 Non-permanent employees 0000200000022 Grand total 5 0 0 15 14 0 2 18 2 0 22 34 55
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 112
Our performance data
People South Africa Occupational levels Foreign Male Female nationals Total Combined (South Africa) A C I W A C I W Male Female Male Female Total
Top management 1 0 0 2 0 0 0 1 0 0 3 1 4 Senior management 26 0 3 45 7 0 1 5 5 0 79 13 92 Professionally qualified and experienced specialists and mid-management 171 7 18 258 50 1 10 61 16 1 470 123 593 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 3 094 28 5 729 564 7 6 97 341 4 4 197 678 4 875 Semi-skilled and discretionary decision making 8 571 12 2 91 927 2 1 24 1 549 3 10 225 957 11 182 Unskilled and defined decision making 13 913 20 0 11 1 974 3 0 0 1 723 36 15 667 2 013 17 680 Total permanent 25 776 67 28 1 136 3 522 13 18 188 3 634 44 30 641 3 785 34 426 Non-permanent employees 14 0 0 4 15 1 0 1 0 0 18 17 35 Grand total 25 790 67 28 1 139 3 537 14 18 190 3 634 44 30 658 3 803 34 461
Foreign Male Female nationals Total South Africa combined People with disability (PWD) A C I W A C I W Male Female Male Female Total
Top management 0000000000000 Senior management 2001000000303 Professionally qualified and experienced specialists and mid-management 16 0 1 20 0 0 0 0 1 0 38 0 38 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 187 2 0 63 8 1 0 3 22 0 274 12 286 Semi-skilled and discretionary decision making 476 0 0 8 19 1 0 1 89 0 573 21 594 Unskilled and defined decision making 599 0 0 0 41 0 0 0 123 1 722 42 764 Total permanent 1 280 2 1 92 68 2 0 4 235 1 1 610 75 1 685 Non-permanent employees 0 0 0 0 0 0 0 0 0 0 0 0 0 Grand total 1 280 2 1 92 68 2 0 4 235 1 1 610 75 1 685
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 113
People Zimbabwe Occupational levels Mimosa Females Males Total
F – Top management 167 E – Senior management 21012 D – Professionally qualified and experienced specialist 17 55 72 C – Skilled technical and academically qualified 16 89 104 B – Semi-skilled and discretionary decision making 3 123 125 A – Unskilled and defined decision making 8 351 359 Grand total 47 634 681
Zimplats Females Males Total
F – Top management E – Senior management 12021 D – Professionally qualified and experienced specialist 6 70 76 C – Skilled technical and academically qualified 79 833 912 B – Semi-skilled and discretionary decision making 91 1 399 1 490 A – Unskilled and defined decision making 34 514 548 Grand total 211 2 836 3 047
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 114
Our performance data
In-service 2016 2015 2014 2013 2012
Impala Rustenburg own employees 29 923 31 519 31 804 32 226 31 865 Contractor employees 8 735 10 288 11 201 12 624 14 436 Impala Springs own employees 943 957 942 991 1 021 Contractor employees 915 1 021 679 899 1 138 Marula own employees 3 540 3 568 3 395 3 165 2 965 Contractor employees 1 170 811 909 853 743 Zimplats own employees 3 047 3 214 3 325 2 929 2 791 Contractor employees 2 397 2 605 2 749 2 775 6 412 Mimosa own employees 681 701 711 776 786 Contractor employees 4 46465100 Corporate own employees 55 60 61 64 89 Contractor employees 0 0000 Total own 38 189 40 019 40 238 40 151 39 517 Total contractors 13 221 14 729 15 602 17 216 22 829 Group total 51 410 54 748 55 783 57 367 62 346 % own employees relative to total workforce 74%
Labour sending areas Impala Rustenburg Marula South Africa Number 2016 2016
Eastern Cape 4 459 156 Free State 852 38 Gauteng 794 49 KwaZulu-Natal 560 19 Mpumalanga 174 118 North West 18 061 48 Northern Cape 1 007 3 Limpopo 478 2 954 Western Cape 16 1 Total 26 401 3 386 Foreigners 3 507 151 Grand total 29 908 3 537
Zimbabwe (Zimplats) Number 2016
Bulawayo 29 Foreigner 4 Harare 88 Manicaland 303 Mashonaland Central 305 Mashonaland East 245 Mashonaland West 1 122 Masvingo province 448 Matabeleland North 34 Matabeleland South 46 Midlands 423 Grand total 3 047
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 115
Zimbabwe (Mimosa) Number 2016
Bulawayo 47 Foreigner 0 Harare 38 Manicaland 44 Mashonaland Central 35 Mashonaland East 23 Mashonaland West 27 Masvingo province 80 Matabeleland North 35 Matabeleland South 30 Midlands 322 Grand total 681
Unit (%) 2016 2015 2014 2013 2012
Turnover Impala Rustenburg 9.0 5.1 4.4 6.0 10.1 Impala Springs 4.1 6.2 4.5 7.5 5.3 Marula 5.6 6.3 5.6 4.2 11.0 Zimplats 6.5 4.4 3.6 3.9 4.2 Mimosa 2.9 3.4 9.0 3.5 4.2 Corporate 14.3 18.2 10 9.4 7.7 Group 8.2 5.1 4.5 5.7 10.0 Women turnover Impala Rustenburg 0.5 0.3 0.2 4 0.3 Impala Springs 0.4 1.5 1.4 2 1.7 Marula 0.5 0.4 0.3 5 0.7 Zimplats 0.1 0.3 0.2 6 6 Mimosa 0.1 0.3 5.0 4 0 Corporate 5.4 7.3 1.6 50 2.2 Group 0.5 0.3 0.6 5 0.8
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 116
Our performance data
Engagements per age group Number Male Female Total
Impala Rustenburg 941 52 992 15 – 25 121 4 125 26 – 35 455 27 482 36 – 45 243 18 261 46 – 55 119 3 122 56 – 63 202 Impala Springs 16 7 23 15 – 25 639 26 – 35 9312 36 – 45 101 46 – 55 011 56 – 63 000 Marula 148 80 228 15 – 25 42 22 64 26 – 35 68 34 102 36 – 45 20 24 44 46 – 55 14 0 14 56 – 63 404 Zimplats 20 2 22 15 – 25 909 26 – 35 8210 36 – 45 202 46 – 55 101 56 – 63 000 Mimosa 112 15 – 25 000 26 – 35 011 36 – 45 100 46 – 55 000 56 – 63 000 Corporate 011 15 – 25 000 26 – 35 000 36 – 45 011 46 – 55 000 56 – 63 000
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 117
Terminations per age group Number Male Female Total
Impala Rustenburg 2 531 155 2 686 15 – 25 113 11 124 26 – 35 533 68 601 36 – 45 582 29 611 46 – 55 642 12 654 56 – 63 661 35 696 Impala Springs 35 4 39 15 – 25 606 26 – 35 10 1 11 36 – 45 101 46 – 55 426 56 – 63 14 1 15 Marula 181 18 199 15 – 25 8311 26 – 35 42 5 47 36 – 45 61 9 70 46 – 55 43 1 44 56 – 63 27 0 27 Zimplats 193 4 197 15 – 25 16 0 16 26 – 35 97 1 98 36 – 45 41 1 42 46 – 55 25 2 27 56 – 63 14 0 14 Mimosa 19 1 20 15 – 25 000 26 – 35 011 36 – 45 707 46 – 55 707 56 – 63 505 Corporate 538 15 – 25 000 26 – 35 000 36 – 45 134 46 – 55 303 56 – 63 101
Unionised workforce Percentage 2016 2015 2014 2013 2012
Impala Rustenburg 84 81 78 73 58 Impala Springs 51* 75 71 70 70 Marula 90 91 87 75 65 Zimplats 34 37 40 46 52 Mimosa 25 26 25 24 24 *The notable reduction in 2016 compared to 2015 in Impala Springs statistics was caused by derecognition of AMCU
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 118
Our performance data
Female to male pay ratio Female Male Impala Rustenburg Top management 0 1 Senior management 0.81 1 Professionally qualified and experienced specialists and mid-management 0.85 1 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 0.89 1 Semi-skilled and discretionary decision making 1.08 1 Unskilled and defined decision making 1.02 1 Total 1.07 1 Impala Springs Top management 0 0 Senior management 0.79 1 Professionally qualified and experienced specialists and mid-management 0.77 1 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 0.84 1 Semi-skilled and discretionary decision making 1.01 1 Total 0.96 1 Marula Senior management 0 1 Professionally qualified and experienced specialists and mid-management 0.81 1 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 0.86 1 Semi-skilled and discretionary decision making 1.04 1 Unskilled and defined decision making 0.97 1 Total 0.83 1 Grand total 1.07 1
Female to male pay ratio Female Male
Zimplats Top management Senior management 1 1 Professionally qualified and experienced specialists and mid-management 0.91 1 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 1.18 1 Semi-skilled and discretionary decision making 0.93 1 Unskilled and defined decision making 1 1 Total 11 Mimosa Senior management 1 1 Professionally qualified and experienced specialists and mid-management 1 1 Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 1 1 Semi-skilled and discretionary decision making 1 1 Unskilled and defined decision making 1 1 Total 11 Grand total 11
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 119
Safety Unit 2016 2015 2014 2013 2012
Fatalities (employees) Number Impala Rustenburg 9 4387 Impala Springs 0 0000 Marula 0 1001 Zimplats 0 0100 Mimosa 2 0000 Total 11 5487 Fatalities (contractors) Number Impala Rustenburg 0 2015 Impala Springs 0 0000 Marula 0 0000 Zimplats 0 0000 Mimosa 0 0000 Total 0 2015 Group total 11 74912 Reportable injuries Number Impala Rustenburg 401 281 209 358 360 Impala Springs 2 2121 Marula 45 24 33 36 60 Zimplats 7 8 6 12 4 Mimosa 9 1102 Afplats and head office 0 2 2 13 3 Group total 461 318 252 421 430 Medical treatment cases Number Impala Rustenburg 519 393 341 454 441 Impala Springs 61 84 75 78 82 Marula 109 61 86 90 131 Zimplats 6 6271933 Mimosa 7 1101726 Afplats and head office 0 1 6 44 11 Group total 702 546 545 702 724 Lost-time injuries Number Impala Rustenburg 665 456 311 503 573 Impala Springs 3 2121 Marula 97 90 47 45 88 Zimplats 8 8 6 12 4 Mimosa 7 13211 Afplats and head office 0 2 1 15 4 Group total 782 559 369 579 681
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 120
Our performance data
Safety Unit 2016 2015 2014 2013 2012
Employee hours worked Hours Impala Rustenburg 84 043 377 86 231 570 57 954 414 98 131 748 95 598 107 Impala Springs 4 141 659 3 972 573 3 913 170 4 746 833 4 453 614 Marula 10 148 375 9 013 210 8 885 363 8 303 702 7 678 134 Zimplats 13 837 573 13 560 069 14 646 272 17 257 526 19 361 847 Mimosa 8 116 972 7 643 876 7 803 469 7 762 842 9 250 991 Afplats and head office 232 719 498 262 854 084 1 395 686 831 411 Group total 120 520 676 121 034 823 94 056 773 137 598 336 137 174 104 FIFR Pmmhw Impala Rustenburg 0.107 0.070 0.052 0.091 0.115 Impala Springs 0 0000 Marula 0 0.111 0 0 0.130 Zimplats 0 0 0.068 0 0 Mimosa 0.246 0000 Group 0.091 0.058 0.043 0.065 0.087 LTIFR (including RWC) Pmmhw Impala Rustenburg 7.91 5.29 6.69 6.50 6.61 Impala Springs 0.72 0.50 0.51 0.42 0.45 Marula 9.56 18.20 18.91 13.97 19.02 Zimplats 0.58 0.88 0.75 1.10 0.52 Mimosa 1.11 0.26 0.51 0.64 1.84 Group 6.49 5.27 6.10 5.80 5.91 TIFR Pmmhw Impala Rustenburg 14.09 9.85 12.58 11.13 11.22 Impala Springs 15.45 21.65 19.68 16.85 18.86 Marula 20.3 24.96 28.59 24.81 36.08 Zimplats 1.01 1.33 2.59 2.20 2.22 Mimosa 1.97 0.39 1.79 2.83 4.65 Group 12.31 9.78 11.9 10.91 11.19 MTCFR Pmmhw Impala Rustenburg 6.18 4.56 5.88 4.63 4.61 Impala Springs 14.73 21.14 19.17 16.43 18.41 Marula 10.74 6.77 9.68 10.84 17.06 Zimplats 0.43 0.44 1.84 1.10 1.70 Mimosa 0.86 0.13 1.28 2.19 2.59 Group 5.82 4.51 5.79 5.11 5.28 Total injuries Number Impala Rustenburg 1 184 849 729 1 092 1 073 Impala Springs 64 86 77 80 84 Marula 206 225 254 206 277 Zimplats 14 18 38 38 43 Mimosa 16 3142243 Afplats 0 2 7 63 15 Group total 1 484 1 183 1 119 1 501 1 535
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 121
Health Unit 2016 2015 2014 2013 2012
VCT interventions Number Impala Rustenburg 8 831 9 851 7 626 10 470 7 792 Impala Springs 14 410914 Marula 1 058 698 566 540 292 Zimplats 695 1 002 1 563 714 1 424 Mimosa 269 320 321 203 298 Group 10 867 11 875 10 086 11 936 9 820 Employees on ART Number Impala Rustenburg 4 299 3 929 3 822 3 639 3 222 Impala Springs 0 0272826 Marula 224 200 138 101 65 Zimplats 160 147 137 120 114 Mimosa 160 153 152 151 139 Group 4 843 4 429 4 276 4 039 3 566 Pulmonary TB cases Number Impala Rustenburg 149 274 213 311 352 Impala Springs 1 111— Marula 11 20 41 15 21 Zimplats 4 5716 Mimosa 6 46610 Group 171 304 268 334 389 NIHL Number Impala Rustenburg 49 32 16 36 53 Impala Springs 0 0000 Marula 12 7141210 Zimplats 0 6620 Mimosa 0 4000 Group 61 49 36 50 63
SKILLS DEVELOPMENT (Zimbabwe) Unit 2016 2015 2014 2013 2012
Expenditure (US$ 000) Zimplats* 1 586 1 784 2 568 2 350 2 763 Mimosa* 3 319 3 522 3 341 2 935 2 617 Total 4 905 5 304 5 909 5 285 5 380 * Zimplats’ skills development expenditure impacted by Bimha collapse and subsequent cost containment initiatives, hence the large difference when compared with Mimosa.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 122
Our performance data
Skills development Unit 2016 2015 2014 2013 2012
Expenditure (R million) Impala Rustenburg 424 456 280 387 313 Impala Springs 19 19 14 16 21 Marula 68 48 37 24 19 SA operations total (6% of wage bill) 512 523* 331* 428 353 Employee literacy (ABET III and above) Percentage Impala Rustenburg 82 82 82 80 74 Impala Springs 96 92 94 94 93 Marula 92 91 91 90 92 Zimplats 99 99 99 99 99 Mimosa 99 99 99 99 99 Average Group literacy 94 93 93 92 86 ABET training employees Number Impala Rustenburg 478 410 686 794 900 Impala Springs 0 0* 0* 5 7 Marula 16 11 21 6 0** SA operations total 494 421 707 805 907 Total number of employees trained (including ABET) Number Impala Rustenburg 29 526 30 031 20 338 29 299 23 477 Impala Springs 2 381 2 661 963 1 053 1 091 Marula 3 516 3 074 2 660 1 874 1 117 SA operations total 35 423 35 766* 23 961* 32 226 25 685 Cost of ABET training (R000) Impala Rustenburg 10 738 10 664 8 577 12 769 10 220 Impala Springs 0** 0 0 486 578 Marula 1 896 8192 0* SA operations total 12 634 10 672 8 596 13 257 10 798 Hours of ABET training Hours Impala Rustenburg 70 304 89 736 69 672 148 728 134 842 Impala Springs 0 0* 0* 11 064 13 433 Marula 15 640 26 028 20 160 4 032 0* SA operations total 85 944 115 764* 89 832* 163 824 148 257 Functional literacy Percentage Zimplats 99 99 99 99 Mimosa 99 99 99 99 Average Zimbabwean operations functional literacy 99 99 99 99 * Strike impacted, thus comparability impacted year on year ** No ABET intake
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 123
Environment Unit 2016 2015* 2014* 2013 2012
Key production figures Ore milled (excluding Mimosa) (000 tonnes) 18 426 16 024 13 916 17 209 16 626 Tailings disposed on tailing dam (000 tonnes) 20 936 17 891 16 004 20 770 20 619 Dump slag reprocessed/re-used (000 tonnes) 201 16 90 172 175 Furnace and converter slag generated and reprocessed (000 tonnes) 755 469 382 783 772 Total slag reprocessed/re-used (000 tonnes) 956 485 472 955 947 Platinum produced (000oz) 1 438 1 276 1 178 1 581 1 448 Group material consumption Diesel (000 litres) 22 523 21 748 21 776 25 247 27 875 Petrol (000 litres) 476 602 830 1 137 1 237 Coal (tonnes) 153 309 138 653 127 883 158 732 161 563 Industrial burning oil (000 litres) 1 222 1 633 1 264 1 730 2 660 Key production figures – Energy (GJ000) Impala Rustenburg 10 902 9 766 7 945 11 453 11 360 Impala Springs 2 511 2 523 2 549 2 727 2 688 Marula 771 743 792 729 713 Zimplats 2 425 2 199 2 390 1 940 2 100 Mimosa 719 706 719 725 701 Group total 17 328 15 937 14 395 17 574 17 542 Key production figures – Water (Ml) (Ml) Total water withdrawn Impala Rustenburg 14 201 14 491 10 353 14 514 15 961 Impala Springs 810 750 758 838 792 Marula 1 471 1 523 1 690 1 969 1 989 Zimplats 7 903 6 447 6 389 5 775 4 408 Mimosa 2 318 2 165 2 175 2 344 2 214 Group total 26 703 25 376 21 365 25 440 25 274 Total water consumed** (Ml) Impala Rustenburg 22 494 21 140 16 247 24 735 26 012 Impala Springs 1 333 1 261 1 255 1 244 1 251 Marula 2 929 3 311 3 573 3 544 3 585 Zimplats 12 121 10 725 10 386 7 852 6 003 Mimosa 6 651 3 264 3 314 3 336 3 263 Group total 45 528 39 701 34 775 40 711 40 114 Total water recycled (Ml) Impala Rustenburg 8 293 6 649 5 894 10 220 10 051 Impala Springs 523 511 497 406 459 Marula 1 458 1 787 1 883 1 574 1 596 Zimplats 4 218 4 278 3 997 2 078 1 595 Mimosa 4 333 1 100 1 138 993 1 139 Group total 18 825 14 325 13 409 15 271 14 840 Unit water consumption (kl/tonne milled) Impala Rustenburg 2.15 2.29 2.62 2.06 2.1 Impala Springs 47.45 49.44 51.59 44.93 52.96 Marula 1.74 1.99 1.99 2.18 2.28 Zimplats 1.80 2.02 1.75 1.68 1.37 Mimosa 2.52 1.25 1.35 1.4 1.4 Group total 2.09 2.11 2.12 1.97 1.94 * Comparability of year-on-year figures impacted by five-month strike in the 2014 financial year ** Total water consumed = total water withdrawn and total water recycled
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 124
Our performance data
Key production figures Emissions Unit 2016 2015 2014 2013 2012
Total direct CO2 (tonnes) Impala Rustenburg 170 301 143 523** 114 432* 182 406 193 317 Impala Springs 145 018 143 687 141 372 158 553 154 077 Marula 6 247 6 437 7 102 6 331 6 450 Zimplats 50 269 45 547 51 257 43 864 53 697 Mimosa 9 945 9 806 9 834 9 815 10 362 Group total 381 780 349 000 323 997 400 969 417 902
Total indirect CO2 (tonnes) Impala Rustenburg 2 449 626 2 267 832** 1 928 823* 2 534 307 2 444 347 Impala Springs 152 390 150 711 159 445 149 223 147 166 Marula 192 984 187 298 206 412 175 914 170 958 Zimplats* 326 665 290 863 312 357 366 492 249 345 Mimosa* 164 433 104 818 107 120 106 506 101 391 Group total 3 286 098 3 001 522 2 714 157 3 332 442 3 113 207
Total direct NOx (tonnes) Impala Rustenburg 10 187 9 468** 7 932* 10 644 10 370 Impala Springs 634 629 656 633 625 Marula 802 782 850 746 725 Zimplats 2 128 1 896 1 988 1 555 1 587 Mimosa 684 684 682 678 645 Group total 14 435 13 459 12 107 14 257 13 952
Total direct SO2 (tonnes) Impala Rustenburg 5 641 4 865** 3 729* 5 832 4 736 Impala Springs 677 824 1 006 687 256 Marula 0 —— — — Zimplats 25 074 22 017 26 000*** 12 017 13 470 Mimosa 0 —— — — Group total 31 392 27 706 30 735 18 536 18 462 * Strike impacted, thus comparability impacted year on year ** Post strike ramp up *** Start up of phase II
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 125
Key production figures Land management Unit 2016 2015 2014 2013 2012
Disturbed areas rehabilitated (ha) Impala Rustenburg 4.7 2.4 39.7 18.4 23.4 Impala Springs — —— — — Marula 0.6 1.8 3.0 3.3 — Zimplats 16.0 2.5 3.2 2.5 — Mimosa 6.2 2.7 0.7 4 — Group total 27.5 9.4 46.6 28.2 23.4 Rehabilitation liabilities/current costs (Rm) Impala Rustenburg 858 767 729 761 712 Impala Springs 229 137 67 63 60 Marula 109 101 102 94 82 Zimplats 557 413 285 247 216 Mimosa 0 0 0 98 77 Afplats 17 16 16 Group total 1 770 1 434 1 199 1 263 1 147 Rehabilitation provisions (Rm) Impala Rustenburg 522 459 436 523 520 Impala Springs 180 96 34 37 38 Marula 52 49 52 54 57 Zimplats 318 236 145 154 117 Mimosa 0 0 0 47 52 Afplats 9 88 Group total 1 081 848 675 815 784
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 126
Our performance data
Mining Prospecting Key production figures Implats right right Land leased and managed interest (ha) (ha)
South Africa Impala 100% 29 773 Impala RBR JV* 49% 3 789 Afplats 74% 4 602 1 065 Imbasa 60% 1 673 Inkosi 49% 2 583 Marula 73% 5 494 223 Two Rivers 49% 10 675
Mining Implats leases interest (ha)
Zimbabwe Zimplats 87% 48 535 Mimosa 50% 6 591 * Prospecting joint venture with Royal Bafokeng Resources
Total Total Total Key production figures Group Group Group Waste management Unit 2016 2015 2014
Non-mineral/non-hazardous waste Reused tonnes 367 811 1 014 Recycled tonnes 11 515 10 498 7 582 Recovered tonnes 0 00 Treatment tonnes 0 00 Disposal tonnes 4 457 6 884 3 001 On-site storage tonnes 0 00 Non-mineral/hazardous waste Reused tonnes 2.5 2.5 3.0 Recycled tonnes 30 892 27 704 23 960 Recovered tonnes 0 00 Treatment tonnes 5 675 5 127 3 294 Disposal tonnes 8 997 7 131 8 251 On-site storage tonnes 8.6 6.1 9.5
Mineral waste Unit 2016 2015 2014 2013 2012
Accumulated tailings (000 tonnes) 20 936 17 891 16 004 20 770 20 619 Accumulated waste rock (on surface) (000 tonnes) 911 824 778 1 484 1 323
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 127
GRI and UN Global Compact
Implats has followed the guidance provided by principles and criteria provided in the GRI’s G4 guidelines. A brief review of our application of the GRI reporting principles is provided below. A detailed response to each of the GRI reporting criteria (with hyperlinks to the corresponding sections of the report) is provided on our website, along with our communication on progress in terms of the UN Global Compact.
Principles relating to the quality of this report O Materiality: As outlined on pages 23 to 25 the issues covered in this report have been guided by a combination of feedback from stakeholders, the identification of material issues by the sustainable development forum, and matters identified through the Group’s risk management process. O Stakeholder inclusiveness: The views and concerns of stakeholders have been considered in this report. O Sustainability context: The content of the report is informed by the nature of our products and markets, and with consideration to the social, economic and environmental context in which we operate. O Completeness: The Group’s approach to sustainability management has been disclosed under management approach on page 34 as well as key sections of the report. O Balance: The Group has endeavoured to report in a balanced manner, reflecting both achievements and challenges during the year. O Comparability: In almost all performance areas, comparisons with 2015 have been made. Where possible and where the information is available, data has been provided over a period of five years. O Accuracy: Implats believes data has been provided in a format that is broadly acceptable and comparable against industry norms. Where necessary definitions have been provided and where there are differences with industry norms, indicated. O Timeliness: This Sustainable Development Report is published annually, combining financial and non-financial performance. O Clarity: The Group has adopted a reporting style that is concise, but comprehensive enough to be understandable to the lay person. O Reliability: In 2009, Implats implemented a sustainability toolkit to collate and verify data, and to ensure greater accuracy and reliability. Certain performance indicators have been verified by the external assurance provider.
Principles relating to the boundaries of this report O This report includes operations that are wholly owned or managed by the Group, as well as Mimosa Mine, in which Implats has a 50% interest. The Two Rivers operation, in which the Group has a 49% interest and does not directly manage, is not directly covered. O Mass balance: Mass balance accounting is used to calculate all sulphur emissions at our smelters. In this case, sulphur mass balance is a systematic manner in which the mass of inputs containing sulphur with the mass of outputs containing sulphur as products, waste, change in material stocks and emissions. O Particulate matter: Particulate matter is tiny pieces of solid or liquid matter released to the atmosphere. At Implats, particulate matter refers to the mass of particulates measured at ambient monitoring stations. Particulate matter smaller than 2.5 microns (μm) in size is called PM2.5 and particulate matter bigger than 2.5 microns (μm) and smaller than 10 microns (μm) in size is called PM10. O Isokinetic sampling: Isokinetic sampling is a sampling method which is used for monitoring pollution from the stacks. The samples are taken in a duct or stack. The sampling collects particles at a rate where the velocity and the direction of the gas entering the sampling nozzle is the same as that of the gas in the duct or stack and elsewhere in the stream. The results are therefore more accurate and reliable.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 128
Independent assurance report on selected sustainability information
To the directors of Impala Platinum Holdings Limited We have undertaken an assurance engagement on selected sustainability information as described below and presented in the 2016 sustainability report of Impala Platinum Holdings Limited (Implats) for the year ended 30 June 2016 (the report). This engagement was conducted by a multidisciplinary team of health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting.
Subject matter and related assurance We are required to provide:
1. Reasonable assurance on the following key performance indicators: KPIs prepared in accordance with the Global Reporting Initiative Sustainability Reporting Guidelines (GRI G4 Guidelines), supported by Implats’ internal guidelines Assured value Page Boundary 1 Contractor and employee fatalities 11 fatalities 43, 119 Implats Group 2 Contractor and employee lost time injury frequency 6.49 3, 10, 43, 120 Implats Group rate (LTIFR) 3 Total injury frequency rate (TIFR) 12.31 3, 43, 120 Implats Group 4 New cases of noise-induced hearing loss (NIHL) 61 cases 13, 49, 121 Implats Group submitted for compensation 5 New cases of pulmonary tuberculosis diagnosed 171 cases 4, 13, 48, 49, Implats Group and treated 121 6 Employees on antiretroviral treatment (ARV/ART) – 4 843 employees 3, 13, 48, 49, Implats Group net enrolment at year end 121 7 Employee voluntary counselling and testing 10 867 tested cases 48, 49, 121 Implats Group programme uptake (VCT) 8 Energy consumption 17 328 GJ000 90, 123 Implats Group 9 Water withdrawn 26 703 Ml 87, 123 Implats Group 10 Water consumption 45 528 Ml 87, 123 Implats Group
11 Total indirect carbon dioxide (CO2) emissions 3 286 098 Tonnes 124 Implats Group
12 Total nitrogen oxide (NOx) emissions 14 435 Tonnes 93, 124 Implats Group
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 129
2. Limited assurance on the following key performance indicators: (a) KPIs prepared in compliance with the Amendment to the Broad-Based Socio- Economic Empowerment Charter for the South African Mining and Minerals Industry (BBSEEC) (2010) and related scorecard (2010) Assured value Page Boundary 13 Number of employees who are classified as 363 employees 59 South African historically disadvantaged South Africans (HDSA) operations only and who are employed at management positions, above the supervisor level – excluding non-executive directors 14 Number of women employees in management 137 employees 14, 59 South African positions, above the supervisor level – excluding operations only non-executive directors 15 Number of people trained through adult basic 173 people 53 South African education (ABET) – net enrolment at year end operations only 16 HDSA procurement (>25%) (in line with the Mining R6.1 billion 75 South African Charter categories of capital goods, services and operations only consumable goods) 17 Local procurement R608 million spent on Tier 1 76 South African procurement operations only
(b) KPIs prepared in accordance with the GRI G4 guidelines, supported by Implats’ internal guidelines Assured value Page Boundary 18 Total socio-economic development (SED) R104.6 million 10, 66 South African expenditure operations only
19 Total direct carbon dioxide (CO2) emissions 381 780 tonnes 124 Implats Group
20 Total sulphur dioxide (SO2) emissions 58 747 tonnes 93 Implats Group
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 130
Independent assurance report on selected sustainability information
Directors’ responsibilities Our responsibility We believe that the evidence we have The directors are responsible for the Our responsibility is to express an obtained is sufficient and appropriate to selection, preparation and presentation assurance opinion and conclusions on provide a basis for our opinion on the of the selected sustainability information the selected sustainability information selected sustainability information set out in accordance with the following based on the work we have performed in section 1 of the subject matter and reporting criteria: and the evidence we have obtained. We related assurance paragraph above. O For the subject matters in 1 and 2(b): have conducted our engagement in A limited assurance engagement is the GRI G4 Guidelines, supported by accordance with the International substantially less in scope than a Implats’ internal guidelines; and Standard on Assurance Engagements reasonable assurance engagement in O For the subject matters in 2(a): The (ISAE) 3000 (Revised), Assurance relation to both risk assessment amendment to the BBSEEC (2010) Engagements other than Audits or procedures, including an understanding and related scorecard (2010). Reviews of Historical Financial of internal control, and the procedures Information, issued by the International performed in response to the assessed This responsibility includes the Auditing and Assurance Standards risks. Given the circumstances of our identification of stakeholders and Board. That standard requires that we limited assurance engagement on the stakeholder requirements, material plan and perform our engagement to selected sustainability information set out issues, for commitments with respect to obtain assurance about whether the in section 2 of the subject matter and sustainability performance and for the selected sustainability information is free related assurance paragraph above, in design, implementation and maintenance from material misstatement. performing the procedures listed of internal control relevant to the above we: preparation of the report that is free An assurance engagement in O Interviewed management to obtain an from material misstatement, whether due accordance with ISAE 3000 (Revised) understanding of the internal control to fraud or error. involves assessing the suitability in the environment, risk assessment circumstances of Implats’ use of its process and information systems Our independence and quality control reporting criteria and performing relevant to the sustainability reporting We have complied with the code of procedures to obtain evidence about the process; ethics for professional accountants quantification of the selected O Tested the processes and systems to issued by the International Ethics sustainability information and related generate, collate, aggregate, monitor Standards Board for Accountants, which disclosures. The nature, timing and and report the selected sustainability includes independence and other extent of procedures selected depend information, which included the requirements founded on fundamental on the practitioner’s judgement, including following; principles of integrity, objectivity, the assessment of the risks of material – Inspected supporting professional competence and due care, misstatement, whether due to fraud or documentation and performed confidentiality and professional error. In making those risk assessments analytical procedures on a sample behaviour. we considered internal control relevant basis to evaluate the data to Implats’ preparation of the selected generation and reporting processes KPMG Services Proprietary Limited sustainability information. The against the reporting criteria; applies the International Standard on procedures we performed were based – Undertook site visits to the Quality Control 1 and accordingly on our professional judgement and Rustenburg (mining, concentration maintains a comprehensive system of included inquiries, observation of and smelting), Springs (refineries), quality control, including documented processes performed, inspection of Marula (mining and concentrating) policies and procedures regarding documents, analytical procedures, and Zimplats (mining and compliance with ethical requirements, evaluating the appropriateness of concentration, where we also met professional standards and applicable quantification methods and reporting with Mimosa personnel) operations; legal and regulatory requirements. policies, and agreeing or reconciling with and underlying records.
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 131
O Evaluated whether the selected 2. On the selected key performance independent assurance report that may sustainability information presented in indicators on which we are required have occurred since the initial date of the report is consistent with our to express limited assurance presentation on the Implats website. overall knowledge and experience of a. Based on our work performed and sustainability management and the evidence we have obtained, Restriction of liability performance at Implats. nothing has come to our attention Our work has been undertaken to enable that causes us to believe that the us to express the opinion and The procedures performed in a limited selected sustainability information conclusions on the selected assurance engagement vary in nature set out in 2(a) of the subject matter sustainability information to the directors from, and are less in extent than for, a and related assurance paragraph of Implats in accordance with the terms reasonable assurance engagement. As a above for the year ended 30 June of our engagement, and for no other result, the level of assurance obtained in 2016 is not prepared, in all material purpose. We do not accept or assume a limited assurance engagement is respects, in compliance with the liability to any party other than Implats, substantially lower than the assurance amendment to the BBSEEC (2010) for our work, for this report, or for the that would have been obtained had we and related scorecard (2010). opinion and conclusions we have performed a reasonable assurance b. Based on our work performed and reached. engagement. Accordingly, we do not the evidence we have obtained, express a reasonable assurance opinion nothing has come to our attention KPMG Services Proprietary Limited on the matters described in section 2 of that causes us to believe that the the subject matter and related assurance selected sustainability information paragraph above. set out in 2(b) of the subject matter and related assurance paragraph Reasonable assurance opinion and above for the year ended 30 June Per PD Naidoo limited assurance conclusions 2016 is not prepared, in all material Director 1. On the selected key performance respects, in accordance with the indicators on which we are required GRI G4 Guidelines, supported by Johannesburg to express reasonable assurance Implats’ internal guidelines. 1 September 2016 In our opinion, the selected sustainability information set out in Other matters 1 of the subject matter and related The maintenance and integrity of the assurance paragraph above for the Implats website is the responsibility of year ended 30 June 2016 is Implats’ management. Our procedures prepared, in all material respects, in did not involve consideration of these accordance with the GRI G4 matters and, accordingly, we accept no guidelines, supported by Implats’ responsibility for any changes to either internal guidelines. the information in the report or our
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 132
Glossary
ABET Adult Basic Education and Training Aids Acquired immune deficiency syndrome AMCU Association of Mineworkers and Construction Union AMWUZ Associated Mine Workers Union of Zimbabwe ART Antiretroviral therapy, provided for the treatment of HIV and Aids (excluding state and private medical aid) B-BBEE Broad-based black economic empowerment CEE Commission for Employment Equity
CO2 Carbon dioxide CoM Chamber of Mines CSOT Community Share Ownership Trust CTF Cultural transformation framework dB Decibels. Unit of measurement for sound DEROs Desired Emissions Reduction Objectives DOH Department of Health DMR Department of Mineral Resources, South Africa DPM Diesel Particulate Matter DPME Department of Performance, Monitoring and Evaluation DSM Demand-side management DWS Department of Water and Sanitation EAO Emolument attachment orders ECD Early childhood development EFF Economic Freedom Fighters EIA Environmental impact assessment EITI Extractive Industries Transparency Initiative EMA Environmental Management Agency of Zimbabwe EMP Environmental management programme ESOP Employee Share Ownership Programme ESOT Employee Share Ownership Trust Executive director Is employed by the Company and is involved in the day-to-day running of the organisation EVP Employee value proposition FC Fuel cell FIFR A rate expressed per million man-hours of any Impala employee, contractor or contractor employee or visitor who is involved in an incident while performing his duties at work and who sustains terminal injuries shall constitute a fatal accident. Any road-related fatal incident where the Company is in full control of the vehicle, the driver and conditions related to the road injury of an employee shall constitute a fatal incident. A fatal injury may occur when an employee is incapacitated for a period of time prior to expiration, thus requiring a revision of injury status from LTI to a fatality FLC Foundational Learning Competence FY Financial year (to 30 June)
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 133
GJ Gigajoules. Unit of measure for energy GHG Greenhouse gases GRI Global Reporting Initiative HDSA Historically disadvantaged South African HIV Human immunodeficiency virus HPD Hearing Protection Devices HSE Health, safety and environment HSRC Human Sciences Research Council IBC Inside back cover IDP Integrated Development Plans IFC Inside front cover IFRS International Financial Reporting Standards IBT Impala Bafokeng Trust, socio-economic development vehicle jointly funded by Implats and RBH ILO International Labour Organisation IMF International Monetary Fund IMP Impala Medical Plan Impala Platinum Impala Platinum Limited, comprising Impala Rustenburg and Impala Springs Implats Impala Platinum Holdings Limited Independent Directors who apart from receiving directors’ remuneration do not have any other material pecuniary directors relationship or transactions with the Company, its management or its subsidiaries, which in the judgement of the board may affect their independence IPA International Platinum Group Metals Association ISO International Organisation for Standardisation IWWMP Integrated waste and water management plan IIP Indigenisation Implementation Plan JORC Australasian Code for the Reporting of Mineral Resources and Ore Reserves JSE JSE Securities Exchange LCA Life cycle assessment LCMs Loose cubic metres LED Local Economic Development LHD Load Haul Dumper Local community Communities that are directly impacted by our mining operations and are on or near the mine lease area Lost-time injury A work-related injury resulting in the employee being unable to attend work at his/her place of work, performing his/her assigned duties, on the next calendar day (whether a scheduled work day or not) after the day of the injury. If the appointed medical professional advises that the injured person is unable to attend work on the next calendar day after the injury, regardless of the injured person’s next roster shift, a lost-time injury is deemed to have occurred LSE London Stock Exchange LTIFR Number of lost-time injuries expressed as a rate per million hours worked
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 134
Glossary
Marula Marula Platinum (Pty) Ltd Materiality and Issues of materiality are those aspects that may have a significant impact on the organisation’s reputation material issues and may carry a financial and/or legal cost. These aspects are identified internally through the risk process and externally through ad hoc or routine engagements with a range of stakeholders MCDA Marula Community Development Agency MCLEF Mine Communities Leadership Engagement forum MCSOT Mberengwa Community Share Ownership Trust MCT Marula Community Trust MHSC Mine, Health and Safety Council MIGDETT Mining Industry Growth Development and Employment Task Team Mimosa Mimosa Platinum (Private) Limited Mining Charter Broad-based socio-economic empowerment charter for the South African mining industry MPRDA Mineral and Petroleum Resources Development Act, 28 of 2002, which came into effect in South Africa on 11 May 2004 Medical treatment A medical treatment case is defined as a one-time treatment and subsequent observation of minor injuries cases (MTCs) by an appointed medical professional. Such minor injuries may include treatment by the application of bandages, antiseptic, ointment, irrigation of the eye to remove non-embedded foreign objects or the removal of foreign objects from the wound. MTCs never involve a loss of one or more calendar days after the injury, regardless of the injured person’s next rostered shift or where the injured is unable to perform one or more of their routine functions normally connected with their work due to a restriction applied by an appointed medical professional MW Megawatt, a measure of electric power NAC National Aids Council NASCA National Senior Certificate for Adults NATJOC National Joint Operations Command NCPC National Cleaner Production Centre NCR National Credit Regulator NGO Non-governmental organisation NBI National Business Institute NDP National Development Plan NIHL Noise-induced hearing loss NMWVZ National Mine Workers Union of Zimbabwe Non-executive A director who is not involved in the day-to-day running of the organisation but is a nominee director of a director material shareholder
NOx Nitrous oxide NRF National Research Foundation NUM National Union of Mineworkers, South Africa OEM Original Equipment Manufacturer OHSAS Occupational Health and Safety Assessment Series ORAs Objective-based risk assessments
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 135
PBC PGM beneficiation committee PDS Proximity detective systems PFA President’s Framework Agreement PGI Platinum Guild International PGMs Platinum group metals being the metals derived from PGE PIC Public Investment Corporation PPC Platinum producer’s committee PPE Personal protective equipment PPM Parts per million RBED Royal Bafokeng Enterprise Development RBH Royal Bafokeng Holdings RBN Royal Bafokeng Nation/Administration Reportable injury (a) A reportable injury is an injury which results in: the death of the employee; (b) An injury, to any employee, likely to be fatal; (c) Unconsciousness, incapacitation from heatstroke or heat exhaustion, oxygen deficiency, the inhalation of fumes or poisonous gas, or electric short or electric burning accidents of or by any employee and which is not reportable in terms of paragraph (d), or as required by the OHS Act where applicable (d) An injury which either incapacitates the injured employee from performing that employee’s normal occupation for a period totalling 14 days or more, or which causes the injured employee to suffer the loss of a joint, or a part of a joint, or sustain a permanent disability Restricted Work A restricted work injury is a work-related injury which results in the employee being able to return to his or Injuries her permanently assigned workplace, to perform his or her permanently assigned work on the next (RWI) calendar day, but where the injured is unable to perform one or more of their routine functions normally connected with their work due to a restriction applied by an appointed medical professional RDP Reconstruction and Development Programme RFA Rehabilitation and Fitness Assessment RLM Rustenburg Local Municipality RO Reverse osmosis RSIP Rehabilitation strategy and implantation plan SAMREC South African Code for Reporting of Mineral Resources and Mineral Reserves SANBI South African National Biodiversity Institute SAZ Standards Association of Zimbabwe SD Sustainable development SED Socio-economic development SHEQ Safety, Health and Environment Quality SLP Social and labour plan SMC Selous Metallurgical Complex SMMEs Small, medium and micro enterprises
SO2 Sulphur dioxide SRI Socially responsible investment
APPENDIX Implats Sustainable Development Report 2016 \ PAGE 136
Glossary
STR Social, transformation and remuneration committee TARP Triggered action response plan TB Pulmonary tuberculosis, which in South Africa is considered an occupational illness when it is associated with the presence of dust in the workplace TEBA The Employment Bureau of Africa TMM Trackless mobile machinery Traditional council Elected/appointed members of a community according to customs and practices. The tenure of these leadership leaders differ among communities. The chief King/Kgoshi/Kgosi or inKhosi is the head of the traditional council leadership and the chairman of the council TSCZ Traffic Safety Council of Zimbabwe UASA United Association of South Africa UNGC United Nations Global Compact VCT Voluntary counselling and testing, in respect of HIV and Aids VPSHR Voluntary principles on security and human rights WBCSD World Business Council on Sustainable Development WC/WDM Water Conservation/Water Demand Management WiM Women in mining WLPF Western Limb Producers Forum WPIC World Platinum Investment Council WUL Water use licence ZCSOT Zvishavane Community Share Ownership Trust ZINARA Zimbabwe National Roads Association ZINWA Zimbabwe National Water Authority ZIP Zero incident process ZRP Zimbabwe Republic Police
Environmental incident reporting levels Level of severity Definition of levels Level 5 Incident that contains major non-conformances or non-compliances. These non-compliances are those that result in long-term environmental impact. Company or operation-threatening implications. Level 4 Incident that contains significant non-conformances or non-compliances. These non-compliances are those that result in medium-term environmental impact. Serious environmental impact, but not operation-threatening events. Level 3 Incident that contains limited non-conformances or non-compliances. These non-compliances are those that result in ongoing, but limited environmental impact. Level 2 Incident that involves minor non-conformances that result in short-term, limited and non-ongoing adverse environmental impact. Level 1 Incident that involves minor non-conformances that result in negligible adverse environmental impact.
APPENDIX
Contact details and administration
Registered office Impala Platinum Japan Limited 2 Fricker Road Uchisaiwaicho Daibiru, room number 702 Illovo, 2196 3-3 Uchisaiwaicho Private Bag X18 1-Chome, Chiyoda-ku Northlands, 2116 Tokyo Telephone: +27 (11) 731 9000 Japan Telefax: +27 (11) 731 9254 Telephone: +81 (3) 3504 0712 Email: [email protected] Telefax: +81 (3) 3508 9199 Registration number: 1957/001979/06 Share codes: Company Secretary JSE: IMP Tebogo Llale ADRs: IMPUY Email: [email protected] ISIN: ZAE000083648 Website: http://www.implats.co.za United Kingdom secretaries St James’s Corporate Services Limited Impala Platinum Limited and Suite 31, Second Floor Impala Refining Services 107 Cheapside Head office London 2 Fricker Road EC2V 6DN Illovo, 2196 United Kingdom Private Bag X18 Telephone: +44 (020) 7796 8644 Northlands, 2116 Telefax: +44 (020) 7796 8645 Telephone: +27 (11) 731 9000 Email: [email protected] Telefax: +27 (11) 731 9254 Public Officer Impala Platinum (Rustenburg) François Naudé PO Box 5683 Email: [email protected] Rustenburg, 0300 Telephone: +27 (14) 569 0000 Transfer secretaries Telefax: +27 (14) 569 6548 South Africa Computershare Investor Services (Pty) Limited Impala Platinum Refineries 70 Marshall Street PO Box 222 Johannesburg, 2001 Springs,1560 PO Box 61051 Telephone: +27 (11) 360 3111 Marshalltown, 2107 Telefax: +27 (11) 360 3680 Telephone: +27 (11) 370 5000 Telefax: +27 (11) 688 5200 Marula Platinum 2 Fricker Road United Kingdom Illovo, 2196 Computershare Investor Services plc Private Bag X18 The Pavilions Northlands, 2116 Bridgwater Road Telephone: +27 (11) 731 9000 Bristol Telefax: +27 (11) 731 9254 BS13 8AE
Zimplats SD Report Auditors 1st Floor KPMG Services (Pty) Limited South Block 1 Albany Road Borrowdale Office Park Parktown Borrowdale Road Johannesburg, 2193 Harare, Zimbabwe PO Box 6380 Corporate relations Harare Johan Theron Zimbabwe Investor queries may be directed to: Telephone: +26 (34) 886 878/85/87 Email: [email protected] Fax: +26 (34) 886 876/7 Email: [email protected] Auditors PricewaterhouseCoopers Inc Sponsor 2 Eglin Road Deutsche Securities (SA) Proprietary Limited Sunninghill Johannesburg 2157
BASTION GRAPHICS www.implats.co.za