ANGLO AMERICAN PLATINUM LIMITED ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019
RE-IMAGINING MINING TO IMPROVE PEOPLE’S LIVES
PURPOSE: RE-IMAGINING MINING TO IMPROVE PEOPLE’S LIVES
Amid ongoing challenges in the global mining industry, Anglo American Platinum (Amplats) has proven its resilience and ability to manage change through a focused strategy that is unlocking our full potential and positioning our group for a sustainable future. At the same time, we understand that our future is inextricably linked to the wellbeing of all our stakeholders. Our strategic focus is on value – and we are intent on creating that value across our capitals as we re-imagine our industry and our world.
BUILDING ON DECADES OF LEADERSHIP In this time of rapid, powerful change, the world belongs to those who can redefi ne it and – in mining – today’s pioneers are tomorrow’s winners. As part of the Anglo American plc group, our innovation-led approach to sustainable mining is encapsulated in FutureSmart Mining™, which applies innovative thinking and technological advances to address mining’s major challenges. FutureSmart Mining is a trademark of Anglo American plc and its rights are reserved.
Refers to other pages in this report.
SUPPORTING DOCUMENTATION ON THE WEBSITE Annual fi nancial statements (AFS) Ore Reserves and Mineral Resources report Integrated report Notice of Annual General Meeting
www.angloamericanplatinum.com/investors/annual-reporting/2019
CONTENTS
1 Our business 3 Social 4 Governance 1 About this report 70 Pillar: safety and health 134 Our Board 2 Promises, commitments and progress 73 Safety 136 Leadership and governance 7 Our material issues 80 Health 144 Independent auditor’s assurance 12 The sustainable mining plan 92 Pillar: our people report 19 Our strategy 108 Pillar: socio-political 147 GRI Standards Index 114 Our communities 152 King IV Index 2 Environment 125 Our stakeholders 5 Appendices 20 Pillar: environment 127 Mining charter III 154 Related disclosures 21 Environmental management 128 Transforming our supply chain 155 Glossary 29 Water 133 Respecting human rights 38 Climate change and energy 161 Administration management 46 Biodiversity 49 Mineral residue facilities 53 Non-mineral waste 59 Product stewardship 60 Air quality 62 Mine closure and rehabilitation
* Copyrights and trademarks owned by the Institute of Directors in Southern Africa NPC and all rights reserved. 1 2 3 4 5 Appendices
ADMINISTRATION
Directors Sponsor Executive directors Merrill Lynch South Africa Proprietary Limited C Griffi th (chief executive offi cer) The Place, 1 Sandton Drive, Sandton, 2196 C Miller (fi nance director) PO Box 651987, Benmore 2010 Independent non-executive directors Telephone +27 (0) 11 305 5822 RMW Dunne (British) [email protected] NP Mageza NT Moholi Registrar D Naidoo Computershare Investor Services Proprietary Limited JM Vice Rosebank Towers, 15 Biermann Avenue Rosebank Non-executive directors 2196 M Cutifani (Australian) PO Box 61051 S Pearce (Australian) Marshalltown, 2107 AM O’Neill (British) N Mbazima Telephone +27 (0) 11 370 5000 Facsimile +27 (0) 11 688 5200 Company secretary Elizna Viljoen Auditor [email protected] Deloitte & Touche Buildings 1 and 2, Deloitte Place Telephone +27 (0) 11 638 3425 The Woodlands, Woodlands Drive Facsimile +27 (0) 11 373 5111 Woodmead Financial, administrative, technical advisers Sandton 2196 Anglo Operations Proprietary Limited Investor relations Corporate and divisional offi ce, registered offi ce and business and postal addresses of the Emma Chapman company secretary and administrative advisers [email protected] 55 Marshall Street, Johannesburg, 2001 Telephone +27 (0) 11 373 6239 PO Box 62179, Marshalltown, 2107 Lead competent person Telephone +27 (0) 11 373 6111 Gordon Smith Facsimile +27 (0) 11 373 5111 [email protected] +27 (0) 11 834 2379 Telephone +27 (0) 11 373 6334 Fraud line – YourVoice Anonymous whistleblower facility 087 232 5426 (South Africa) www.yourvoice.angloamerican.com
Human resources-related queries
Job opportunities: www.angloamericanplatinum.com/careers/ job-opportunities
Bursaries, email: [email protected]
Career information: www.angloamericanplatinum.com/ careers 2 3 4 5 1 Our business
ABOUT THIS REPORT
This report expands on the environmental, social and governance (ESG) performance summarised in the 2019 integrated report of Anglo American Platinum Limited (Amplats or the company) and should be read with that report on www.angloamericanplatinum.com/investors/annual-reporting/2019. It has been renamed to more accurately refl ect its content, but follows on from the supplementary report of 2018. Our suite of reports is aimed at a broad range of stakeholders for a fuller view of our activities in the past year and progress against sustainability-related goals. Where relevant, readers are referred to more information in another report. This facilitates an informed assessment of the value Amplats creates in society and of its long-term sustainability. With longer-term comparatives, readers should note that corporate activity over the past fi ve years will skew year-on-year comparisons. As with the integrated report, content has been guided by the following frameworks and grouped under our pillars of value: { International
KEY SUSTAINABILITY INDICATORS
0 78% of management comprises 20.08 million GJ fatalities historically disadvantaged South Africans energy used 2018: 2 2018: 78% 2018: 20 million GJ
17% improvement in total 4.4Mt 0 level 4 and 5
recordable case frequency rate GHG emissions, CO2 equivalent environmental incidents – target achieved 2018: 34% 2018: 4.1Mt 2018: 0
3 R14.4 billion 25.1Mm total water withdrawal R240.5 million preferential procurement 2018: 24.4Mm3 corporate social investment* 2018: R264.26 million * Excluding overheads and including Unki. ESG highlights Amplats has demonstrated leading ESG performance in 2019, with our strong management of environmental, social and governance issues refl ected in several global rankings by leading agencies: { Sustainalytics ranked Amplats as a global leader out of 55 peers in the precious metals sector. This includes our leading position on social and environmental issues and average performance on governance issues. Our ESG-related disclosure follows best practice, with strong oversight at board and executive levels signalling strong accountability to investors and the public. { FTSE Russell ranked Amplats as the ESG leader among the top 5 platinum and precious metal peers. We received the highest ratings for overall ESG (4.8), environmental (4.7), social (4.7) and governance (5.0) and maintained our membership in the FTSE4Good Index series. { FTSE/JSE Responsible Investment Index: we remained a constituent of the top 30 in this index. { Amplats was ranked among the Vigeo Eiris best emerging-market performers for its leading ESG performance. { Admitted to Bloomberg Gender-Equality Index in 2019.
Global leader Maintained Ranked as out of 55 peers inclusion in global leader in the precious emerging among the top 5 metals sector markets universe peers
Anglo American Platinum Limited Environmental, social and governance report 2019 1
PROMISES, COMMITMENTS AND PROGRESS
PROMISES, COMMITMENTS AND PROGRESS
In our last report, we responded in detail to a Bench Marks Foundation study (Policy Gap 13: Coping with unsustainability (2)) on our sustainable development reports from 2003 to 2015 that asserted Amplats had failed to deliver on promises made in those reports. Below, we summarise our progress in 2019, demonstrating that we remain committed to both delivering on promises and continual improvement in line with our vision of re-imaging mining to improve people’s lives.
Promises, commitments and progress Level of progress
Promises and commitments Supplementary report: Given the scale of change in our group (workforce, metrics and reporting standards), we did not provide comprehensive targets for 2018. Progress We provide comprehensive targets for our business. Refer to page 22 in the integrated report.
Promises and commitments Developing our sustainability strategy: We will develop an Amplats sustainability strategy aligned to the group strategy while considering our context and external environment. Progress The sustainability strategy was introduced in 2018 and re-named as the Sustainable Mining Plan. Refer to pages 12 to 18 for further details.
Promises and commitments Managing HIV/Aids and TB: In 2019, 97% (21,587) of employees knew their status. We will continue to focus on the level of participation and, as part of regular reviews, seek to identify and remove any barriers to participation. Progress { We intensifi ed our HIV campaigns in 2019, in order to improve testing; which resulted in achieving the fi rst two UN 90:90:90 targets for HIV { The TB incidence rate remains low at 328 per 100,000 employees { We completed health and wellness baseline assessments across our operations in 2019, to achieve SDG 3 health outcomes
Promises and commitments HIV and TB prevention and 90:90:90 (wellness): We are committed to innovative HIV and TB prevention initiatives and to the 90:90:90 target. Progress { After adopting test-and-treat guidelines, uptake of ART increased to 91% from 90% in 2018. 91% of all known HIV-positive employees are on ART { In 2019, the TB rate is low at 328 per 100,000 { To better understand the interplay of risk factors, we commissioned a research study on the social determinants of HIV. Once completed, the results will complement the health baseline assessments linked to the sustainable mining plans { For clinical programmes, continuous monitoring and evaluation tracks progress against targets. Detailed analysis to fully understand the nature of the problem and the context showed that, despite well-entrenched HIV and TB programmes, our inability to proactively identify and follow-up on HIV- positive employees and the lack of integrated clinical pathways were major constraints to managing these diseases. As this intervention covered all our business units, the analysis extended beyond clinical parameters to a site-by-site review of healthcare arrangements – including medical insurance cover and the unique features of various healthcare settings (for example, the Eastern Limb region is remote, with few facilities falling under medical aid networks, so this requires managed-care processes and interventions).
2 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 Our business
Promises, commitments and progress Level of progress
Promises and commitments Nkululeko fi nancial wellness programme: This was initiated in 2014 to enable our workforce to take ownership of their fi nancial wellbeing and address high levels of over-indebtedness that affected their mental wellness. The programme was relaunched in 2018, moving the focus to empower our workforce to know and understand their fi nancial status and take ownership of improving their fi nancial wellness. This step-change, which has been most successful, included: { Aggressive audits to uncover unscrupulous lenders targeting our employees { Issuing clearance certifi cates for employees who completed their debt counselling or paid off their rescheduled amounts { Interventions to save employees from having their assets repossessed – houses, vehicles – through available debt-relief solutions { Providing skills development through a partnership with Capitec to assist employees in understanding their fi nancial status and available options to assist them in being fi nancially fi t { Reducing the debt:income ratio of employees by a further 5% and facilitate the intrinsic transformation to wealth creation. Progress { 8,863 employees attended fi nancial awareness and skills development workshops: – 5,832 attended induction – 155 completed cadet training – In partnership with Capitec, 2,876 attended skills development training { 4,836 employees signed up for the overall programme { Signed up 750 employees for the debt-rehabilitation programme { 67 employees received debt clearance certifi cates through the debt-rehabilitation programme { 129 employees signed up for debt counselling and 11 for debt rescheduling in 2019 { As part of our interventions to save employees from having their assets repossessed, through the debt-relief programme, 50 employees’ vehicles and 16 mortgage bonds were saved { In 2015, at inception of the programme, our indebted employees’ debt:income ratio was 54%. By the end of 2019, this had improved by 24%, and unsecured debt improved from 96% to 85% { Freed cash fl ow to indebted employees improved from a monthly average of R12,363 to R6,600, a saving of R6,763. The next contracting period for the Nkululeko fi nancial wellness programme from 2020 to 2024 is being fi nalised, and we are looking for another step-change towards realising our purpose – to improve people’s lives in a sustainable way that will not only reach our employees but touch the lives of our contractor and service-provider employees and their families.
Fully achieved Partially achieved
Anglo American Platinum Limited Environmental, social and governance report 2019 3
PROMISES, COMMITMENTS AND PROGRESS
PROMISES, COMMITMENTS AND PROGRESS CONTINUED
Promises, commitments and progress Level of progress
Promises and commitments Using water responsibly: We will continue to reduce our fresh-water consumption and incrementally improve water effi ciency. Progress { Site plans include provision for water security, water-use effi ciency, tailings water recovery projects and a mine dewatering strategy, stormwater management and discharge management, complemented by a monitoring programme { We have implemented an integrated water plan (conservation and demand management) to mitigate related security risks. This includes shifting further to non-potable process water; investing in water-treatment and relevant technology innovation to improve operational water effi ciencies; constructing on-site storage at Mogalakwena, Amandelbult and Rustenburg; rolling out the regional water strategy development for Limpopo; and ensuring strategic alignment, partnership and technical support to local and regional water authorities { We are increasingly reducing fresh-water consumption at our operations, and partner in several regional bulk-water resource and water-effi ciency initiatives { Total water withdrawal intensity was 1.00 against a target of 1.17 m3/tonne { Potable water-use intensity from an external source was 0.30 m3/tonne, 23% improvement since 2015
Promises and commitments Transformation: Amplats is committed to providing equal opportunities to all employees, particularly historically disadvantaged groups. Progress By end of 2019, 78% of our managers were HDSAs (2018: 78%), exceeding the prior South African mining charter requirements for 40% and 88% for core and critical skills, against the current mining charter target of 60%. At the end of 2019, women made up 24% of management and 19% of the workforce (2018: 24% and 18% respectively).
Promises and commitments Meaningful engagement: We are committed to working with our stakeholders to understand their legitimate needs and concerns, and integrate these into our business to create an organisation that is sustainable and shares the value generated. All our operations have functioning community engagement forums, leadership forums or task teams (in the case of Mogalakwena), nominated and elected by communities and meeting at least quarterly. We have also established business forums in our communities, which engage with the mines on business issues and opportunities. We continually monitor the quality or our engagement, structures and communication channels in place, especially at community level, to ensure these are effective. Progress Our engagements with communities in 2019 are detailed on pages 120 and 31 of the integrated report.
4 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 Our business
Promises, commitments and progress Level of progress
Promises and commitments Social licence to operate: We are committed to delivering on these value levers to increase levels of trust and improve our standing in host communities. Our social licence to operate depends on our ability to ensure our stakeholders participate in the economic benefi ts we generate, and that our activities leave our host governments and communities with a fi rm foundation for a sustainable future. The fact that we are a major mining company raises particular expectations. Through our core activities, we employ people, pay taxes to governments and procure from host communities – a signifi cant total contribution to the South African and Zimbabwean economies. In South Africa, Amplats invested R231.2 million (2018: R271 million) in community developments. Progress In 2019, Amplats contributed R619 million to total social investment in South Africa, including R9.3 million to corporate social investment in Zimbabwe. See page 117 of this report for details.
Promises and commitments Mining charter scorecard: Although fi nalisation of the revised charter was long delayed, Amplats remains committed to its principles and continues to report against it. Progress Amplats will report against the new charter in FY20. Please refer to page 127.
Promises and commitments Environmental stewardship: We are committed to minimising our impact on the natural world by integrating environmental considerations through research, planning and responsible management. Progress { We have outlined initiatives under the sustainable mining plan for 2030 on water, climate change and biodiversity performance (page 14) { Many of the technological innovations we will apply to achieve a step-change in our water and energy performance are at different stages of development. The journey is underpinned by best-practice policies, performance standards and business processes, investing in internal capacity, capability and technological innovation, as well as partnerships and collaboration with stakeholders { Amplats also outperformed its peers in the FTSE/JSE Responsibilities Investment Index Series, achieving 4.5 out of 5 for our environmental performance, and 4.8 out of 5 as an overall ESG score { Amplats was ranked global leader by Sustainalytics out of 55 global peers in the precious metals sector.
Fully achieved Partially achieved
Anglo American Platinum Limited Environmental, social and governance report 2019 5
PROMISES, COMMITMENTS AND PROGRESS
PROMISES, COMMITMENTS AND PROGRESS CONTINUED
Promises, commitments and progress Level of progress
Promises and commitments Managing air quality: Rustenburg Platinum Mines Limited remains committed to comply with the 2020 minimum emission standards. Progress Our subsidiary, Rustenburg Platinum Mines Limited (RPM), was granted a postponement on complying with the 2015 limit for its Mortimer and Polokwane smelters. In 2018, RPM started constructing an abatement project at Polokwane smelter, which will use innovative technology to capture SO2 gas from the furnace and convert it to sulphuric acid. With a capital investment of R2.5 billion, the technology will ultimately reduce SO2 emissions by an estimated 96% to comply with more stringent limits. The project progressed well in 2019 (77% complete), with full completion expected in August 2020. Once construction and commissioning has been completed and the project proven effective, construction of a similar project will begin at Mortimer smelter. In March 2019, we submitted applications for all three smelters to postpone the timeframe for compliance with stipulated 2020 emission limits. We requested the postponement for Waterval to enable us to evaluate the impact of future high-sulphur concentrate. In November 2019, the requested limits and dates were approved.
Fully achieved Partially achieved
6 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 OUR MATERIAL ISSUES Our business
OUR MATERIAL ISSUES
Our strategic objectives may be affected by matters that substantively affect our ability to create value over the short, medium and long term. Our success will be measured by how well we manage these issues while retaining our focus on longer-term goals.
Socio-political/people
Material issues and related matters Impact Mitigating actions Read more
Social licence to operate Developing trust as a corporate leader, providing There is a growing need to Communities { Community unrest ethical value chains and improved accountability achieve measurable social section, { BEE procurement to the communities we work with. To expand local outcomes and build sound ESG report { Labour unrest employment opportunities, increase tax revenues, relationships around our { Stakeholder engagement and meet growing community demands for operations. Effective { Human rights improved infrastructure and greater environmental stakeholder engagement, assessment and protection, government continues to put pressure which has been conducted management on the mining industry. Accordingly, there is a in 2019, is therefore key to { Employee housing and growing need to achieve measurable social implementing our business debt relief outcomes and build sound relationships around strategy. Please refer to the operations. Engaging with stakeholders is key to communities section for implementing our business strategy. Failing to do further information on how so jeopardises our social licence to operate and Amplats maintains its social could reduce opportunities in the market. Amplats licence to operate. aspires to be a global leader in sustainable mining and aims to positively infl uence areas where the industry may be lagging in terms of sustainability. This will have benefi ts for society and should, in turn, spur growth in the PGM market.
Anglo American Platinum Limited Environmental, social and governance report 2019 7
OUR MATERIAL ISSUES
OUR MATERIAL ISSUES CONTINUED
Our established materiality process (page 34 of the integrated report) aims to ensure that societal, environmental and economic issues that present risks and opportunities to Amplats are identifi ed, while considering issues of salient concern to external stakeholders.
Financial
Material issues and related matters Impact Mitigating actions Read more
Deliver maximum The portfolio has been reshaped; we now aim to Our business model and Business model potential of operating extract further value through the sustainable strategy outline the pillars of page 16, assets delivery of our strategy, with the largest contributor value creation for our strategy page 20 { Failure to make to unlocking value being the drive to extract the stakeholders. investment full potential from operations through people and { Mogalakwena expansion innovation. With a simplifi ed mining asset portfolio, { Amandelbult we will achieve our strategic goals, primarily modernisation through technology initiatives and investing in our core portfolio. Failing to make effi cient and value-creating investments on time and within budget would jeopardise the sustainability of our business.
Safety and health
Material issues and related matters Impact Mitigating actions Read more
Improving health and Injury and absentee rates are generally linked to By amending the wording Health and safety safety trends in morale and productivity. Our goal is zero of this material issue in sections, ESG { Employee and harm, supported by targeted initiatives that should 2019 from ‘health and report community safety result in fewer health and safety incidents. safety’ to ‘improving health { Employee health and and safety’, we emphasise wellbeing our commitment to { Fire risk and explosives improving the health and management safety of employees and { Reducing airborne communities. This includes pollutants and inhalable the focus on employee hazards wellbeing in 2019. { Tailings storage facility integrity
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Financial/socio-political
Material issues and related matters Impact Mitigating actions Read more
Market conditions One of the key factors in ensuring the long-term Market development is Market { Future demand and sustainability of the PGM industry is demand for undertaken globally through development supply of PGMs these metals. Changing global economic a mix of marketing section { Macro-economic conditions affect markets and, in turn, our position initiatives in existing or uncertainty in those markets. Future demand for PGMs is at near-term demand { PGM prices risk from slower growth in combustion engine segments such as jewellery { Growing the market for manufacturing, technological developments in through Platinum Guild PGMs battery vehicles, suppressed jewellery sales, as International (PGI); { Fuel cell technology well as Amplats’ dependency on market investment through the segments such as autocatalyst and diesel World Platinum Investment vehicles. Market development is therefore Council (WPIC); and a long-standing strategic priority, and latent targeted market demand across jewellery, investment development in longer-term and industrial segments presents a large growth areas such as fuel and growing opportunity. cells, hydrogen and clean energy, in part through our new venture-capital vehicle, AP Ventures. Global policy advocacy and South African benefi ciation objectives form part of broader market development activities.
Socio-political/fi nancial
Material issues and related matters Impact Mitigating actions Read more
Socio-political Changes in the socio-political and regulatory Government urgently needs Stakeholders environment environment (eg mining charter 2018, MPRDA to collaborate with the { Regulatory compliance amendments, failing to deliver on social and mining industry to grow risk labour plans, changes to land and water investor and customer { Lack of municipal legislation) can impact our business through confi dence. This can be capacity and service increased compliance requirements and costs. achieved by addressing key delivery Socio-political instability can also affect business issues including: unreliable { Unreliable power supply operations as it impacts investor sentiment. power supply, { Mining charter and Therefore, one of the main ways in which unemployment and job MPRDA government can support a stable and productive losses, as well as a lack of { Enhanced community mining sector that will benefi t the South African municipal capacity and expectation economy is by working with industry to grow service delivery (added to { Land access and investor and customer confi dence. material issues in 2019). resettlement Please refer to the { Unemployment and government section under job losses stakeholders which highlights engagements on key matters.
Anglo American Platinum Limited Environmental, social and governance report 2019 9
OUR MATERIAL ISSUES
OUR MATERIAL ISSUES CONTINUED
Socio-political/people
Material issues and related matters Impact Mitigating actions Read more
Create thriving Building thriving communities with better health, To build thriving Community communities education and levels of employment. Our vision is communities, we have development in { Local procurement and for economically diverse and sustainable listened carefully to their ESG report supplier development communities with a future beyond mining, through expressed needs. We are { Local economic mining. This will require companies to leverage playing our part as development digital infrastructure, create new education a responsible corporate { Alchemy community models, improve communication, develop citizen through a range of empowerment initiative suppliers, or deliver other services. initiatives, including: { Planning for local Alchemy, local economic economic activity and development, local social sustainability post procurement and supplier life of mine development (included as material topics in 2019).
People
Material issues and related matters Impact Mitigating actions Read more
Ethical leadership and The contravention of business and ethical Mandatory training Governance culture principles, especially fraud and corruption, conducted on the group report, ethics { Improved NGO and remains a serious concern. Fuelled by the code of conduct. management religious leader economic downturn, exposure to corrupt cooperation practices and unethical leadership within society { Fraud and corruption heightens the risk to Amplats. Given that mining { Contravening business companies face regional and global scrutiny, and ethical principles complying with formal ethical standards of conduct is non-negotiable.
Inclusion and diversity An inclusive and diverse environment is promoted Gender equity supports People section, { Gender-based violence at Amplats, where every colleague is valued and employment equity by ESG report { Gender equity respected for who they are and given the creating an environment { Talent and development opportunity to fulfi l their potential. where women have equitable access to resources and opportunities.
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Production/cost
Material issues and related matters Impact Mitigating actions Read more
Technology and Modernisation of the PGM industry in South Africa With the introduction of Technology and innovation is crucial to our global competitiveness and new mining technologies at innovation { Mechanisation and sustainability. We are working towards a future Amplats, new and different page 21, the modernisation that, through collaborative partnerships between skill sets are required for future of work { Benefi ciation and stakeholders, will shape an industry that is safer, our people. It is therefore page 105 of the recycling of PGMs more sustainable and effi cient, and better critical that the future of ESG report { Using data insights to harmonised with the needs of communities and of work is assessed in tandem drive value society as a whole. Accordingly, it has become with the employee of the { Re-envisioning talent critical that the future of work and the employee of future. We are addressing management in the the future be looked at holistically, but also with this through a step-change digital age the Amplats lens. in our approach and innovative initiatives.
Environment
Material issues and related matters Impact Mitigating actions Read more
Maintain a healthy The growing scarcity of non-renewable natural Amplats is committed Environment environment resources is arguably the greatest risk to to creating waterless, section, { Energy management corporate sustainability in modern history. Our carbon-neutral mines and ESG report { Climate change (carbon goal is to support our long-term sustainability by delivering positive tax) effectively managing resources, reducing our biodiversity outcomes with { Water infrastructure and impact on the environment and communities, and social co-benefi ts, which management complying with legal requirements. implies full implementation { Emissions reduction and of the impact-mitigation renewable energy hierarchy, including { Zero waste to landfi ll avoidance, minimisation, { Biodiversity stewardship restoration and offset { Circular economy waste measures. In line with this to resource approach, our zero-waste- { Mine closure and to-landfi ll initiative has rehabilitation become increasingly signifi cant.
Identifying, evaluating and prioritising material risks { Sustainability reporting is built on the materiality assessment process. Our well-established materiality process identifi es societal, environmental and economic issues that present risks and opportunities and impact value creation. We follow a four-step process in our materiality assessment framework, aligned with the AA 1000 AccountAbility principles (2018) { Internal materiality: desktop assessment { External materiality: interviews with selected stakeholders { Materiality workshop { Review and approval of key material issues by exco and board.
Anglo American Platinum Limited Environmental, social and governance report 2019 11
THE SUSTAINABLE MINING PLAN
THE SUSTAINABLE MINING PLAN
The Anglo American sustainability strategy was offi cially launched in March 2018, outlining a series of stretch goals across three major areas of sustainability – the environment, community development, and driving greater trust and transparency across the mining industry – to be delivered between 2018 and 2030. Anglo American has applied its FutureSmart Mining approach in developing this strategy, which includes a robust consultation process with employees and an array of external stakeholders, in line with the United Nations’ Sustainable Development Goals (SDGs).
OUR GLOBAL SUSTAINABILITY PILLARS
TRUSTED CORPORATE THRIVING HEALTHY LEADER COMMUNITIES ENVIRONMENT
TAILORED FIVE-YEAR SITE PLANS All sites and key group functions. Flexible and integrated response to group, business unit and local priorities
GLOBAL STRETCH GOALS COLLABORATIVE REGIONAL DEVELOPMENT PARTNERSHIP AND ENGAGEMENT
Education Accountability Biodiversity Regional Planning and specialist implementation Health and Ethical value Climate change analysis in partnership wellbeing chains Water Livelihoods Policy advocacy PARTNERSHIP AND ENGAGEMENT PARTNERSHIP
CRITICAL FOUNDATIONS
INCLUSION GROUP COMPLIANCE LEADERSHIP HUMAN ZERO HARM AND STANDARDS AND WITH LEGAL AND CULTURE RIGHTS DIVERSITY PROCESSES REQUIREMENTS
12 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 Our business
Sustainable mining plan Global strategy with local response The sustainable mining plan is at the core of our business strategy FutureSmart Mining It is part of Discovery Project Operating Technology Sustainable Marketing FutureSmart Mining development model model mining plan model … our innovation-led approach to sustainable mining
To be the best of the best and then to create new benchmarks beyond what is currently thought to be possible: this is P101 – or full potential plus P 1 0 1 Full potential plus
The modern mine The waterless mine The intelligent mine The concentrated mine Transforming hard rock Towards water-free A smart, connected, A mine that delivers mining processing learning mine more metal and minerals, and less waste
Driven by our purpose, re-imagining As a commercial business, Amplats is our impact on the global call for a ‘better mining to improve people’s lives, our responsible for creating value. That and more sustainable future for all’. While transformational sustainability approach responsibility extends equally to the this provided a limited view of our has broadened our focus from individual business of sustainability. To further contribution to natural, social, human and projects to an overriding and overarching enhance our value proposition and manufactured capital, as embodied by the ambition, by embedding sustainability into understand our broader societal SDGs, we were able to refl ect on current our business processes and operational contribution, we mapped our 2018 activities and future opportunities in the plans, and then measuring our societal contributions to the United context of our operations and our performance against that ambition. Nations Sustainable Development Goals products. (UN SDGs) (pages 17 and 18) to gauge
Anglo American Platinum Limited Environmental, social and governance report 2019 13
THE SUSTAINABLE MINING PLAN
THE SUSTAINABLE MINING PLAN CONTINUED
SUSTAINABLE MINING PLAN – STRETCH GOALS – BUSINESS LEVEL
TRUSTED CORPORATE THRIVING HEALTHY LEADER COMMUNITIES ENVIRONMENT
Community health/ Local accountability Biodiversity wellbeing { Local stakeholder groups { Baseline studies { Biodiversity framework convened at all completed for all Amplats and tools being operations, except for operations. Outcomes developed (including Eastern Limb shared with all sites self-assessment against { 4 national dialogues held, { Strategies for each standard, overlay and with the focus on Anglo operation will be value assessments, American’s alignment developed in 2020 in line management programme with and contribution to with key milestones/ guideline, net positive UN Sustainable targets. impact methodology Development Goals. and indicators).
5-year sustainability plan Energy and climate Mine certifi cation Livelihoods roll-out change { 5-year plans completed for { Unki Mine has completed { Two workshops to { Deep-dive assessment/ Unki, Mogalakwena and IRMA third-party audit in develop a strategy and review completed for Amandelbult November. implementation plan for Mogalakwena Mine. { Twickenham and Mototolo { Amandelbult and meeting 2025 and 2030 Implementation of scheduled for 2020 Mogalakwena have targets completed in identifi ed projects completed self- September and October. planned assessment. Work under way to fi ll { Amplats on track to meet Collaborative regional { Responsible platinum information gaps on energy savings target development work and palladium standard: baseline, defi nitions and { Progress made with Team focusing on: desktop readiness audit identifi ed strategic business-unit carbon- { Aligning accountabilities and to identify key drivers. intensity target, although governance for project documents, process and lagging on 2020 savings delivery procedures required for against business-as- { Align input and outcomes a third-party audit usual target. with stakeholders on site, at completed in 2019. Amplats and group level Certifi cation audit { 4 pilot projects. scheduled for Q1 2020
Responsible sourcing Education Water
{ Group procurement is { Anglo American schools { The water team is currently rolling out the programme under way at defi ning water metrics responsible sourcing all sites and targets, with results standard and guidelines { A review of expected expected in 2020. at all sites outcomes of planned interventions and initiatives will ascertain the likelihood of meeting 2025 and 2030 goals
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Case study: RE-IMAGINING SOCIO-ECONOMIC DEVELOPMENT IN LIMPOPO Context The collaborative regional development (World Vision South Africa), and research was launched in October 2019. (CRD) platform is a voluntary organisations (CSIR) to drive socio- This partnership is underpinned by collaboration between the Limpopo economic change in Limpopo, one of a consortium agreement between parties government (offi ce of the premier), the poorest regions in South Africa. and memorandum of understanding to private sector (Anglo American and The Limpopo CRD platform, known in formalise the relationship with provincial Exxaro), non-governmental organisations South Africa as the Impact Catalyst, government.
2016 2017 2018 2019
{ Completed detailed special analysis { Began to build political will { Completed three feasibility studies { Launched Impact Catalyst (backbone potential economic opportunities in the national and provincial { Designed appropriate business and organisation) { Gained interest and attention of governments for more operating model and backbone { Gained interest from additional partners relevant partners for development effective collaboration organisation { Obtained proof of concept by { Included government structures and { Invested in four showcase { Successfully obtained third-party implementing fi rst project (COPC) continue to engage these initiatives for collective funding: { Built a pipeline of 20+ projects impact – Fund fi rst three years of backbone { Integrated CRD into internal processes, organisation (R23 million) including SLPs and sustainable – Support game farm initiative mining plan (R10 million)
■ Completed ■ In progress Key milestones ■ Not actioned/delayed
March Jul Sept Dec 2019 2019 2019 2019
All Offi cial Institutional Proof of concept: { Establish backbone responsibilities launches arrangements 2 – 3 initiatives organisation and offi cial completed in place implemented launch { Secure additional third-party funding – Integrated game ■ – Sign MoU/consortium ■ – Register legal entity ■ Candidates: { Implement – Community ICT access ■ agreement – Appoint backbone ■ – Game farm ■ 2 – 3 initiatives – Community health ■ – Launch indaba ■ manager – Health pilot ■ – Agro-processing ■ – Interest from additional ■ – Appoint other human ■ – Additional ICT sites ■ partners and onboarding resources – SQ quick-win – Supplier development ■ ■ – Acquire additional funding – Agro-processing ■ ■ ■
Status We have now achieved proof-of-concept Launch and partnerships Despite initial challenges, the Impact by implementing the fi rst projects (an Following the formal launch of the Impact Catalyst is now fi nally starting to see integrated game project at Mooihoek, Catalyst in Limpopo, many enquiries were visible progress. Overall, good progress which also seeks to resolve legacy made by interested parties and potential has been made in the establishment and resettlement issues, and community- partners. Several organisations are now operation of the backbone organisation, oriented primary care, (COPC)). Project being reviewed for inclusion in the and the necessary organisational and management can be streamlined partnership and the consulting engineers, institutional arrangements are in place. further and the partnership needs to Aurecon, have formally joined the Impact Funding for both its operations and refocus on opportunities with the Catalyst. Partners like this will strengthen initiatives was also secured in 2019. greatest overall impact. project delivery by adding capacities such as engineering and facility design, provide project-management capacity and support the development of strategic plans for the province.
Anglo American Platinum Limited Environmental, social and governance report 2019 15
THE SUSTAINABLE MINING PLAN
THE SUSTAINABLE MINING PLAN CONTINUED
Funding Initiatives our sustainable mining plans and To date, R57 million in third-party We are currently working on some initiatives under way. To give scale to the funding has been secured, including 20 initiatives in various stages of enormity of the challenges, by 2030, the R10 million for the Armoede Community development, shown below. A number required number of jobs supported for Trust to support integrated game farm of these are now included in operation- platinum operations alone is estimated work at Mooihoek. For the backbone, specifi c sustainable mining plans, at 100,000. The conclusion from these the CSIR approved additional feasibility supported by cross-functional teams discussions was that we will need to and backbone funding (R2 million in (and operational budgets), while others think radically differently about initiatives direct funding plus offi ce space and will be included in site-specifi c SLPs to required to achieve these targets. We full-time human resources), and Exxaro be developed in 2020. are working to integrate collaborative confi rmed a R10 million contribution to regional development and Zimele In addition, in 2019, we conducted the partnership. processes (page 124) to enhance several business unit-led workshops to delivery against the ambitious livelihood understand the gap between targets in goals in Limpopo and beyond.
Pipeline of potential projects
PREFEASIBILITY/ PILOT PILOT CONCEPT SCALE-UP FEASIBILITY PRE-IMPLEMENTATION IMPLEMENTATION
Musina SEZ Start Well school nutrition
Amandelbult Mobile Commercial Laser Fresh produce merchandising abattoirs agriculture refurbishment market programme Mogalakwena COCP Mutale Irrigation Moringa farmss scheme component healthcare Honey Multi-product ICT access production manufacturing Integrated School agro-processing game sanitation School Tyre recycling Women PPE agri-tunnels manufacturing
Fish farms
Platform-led projects De Beers/ AA-led projects Exxaro-led projects
STAGE GATE 1 STAGE GATE 2 STAGE GATE 3 STAGE GATE 4
Key challenges Next steps { Select and onboard potential new In the third quarter of 2019, we enlisted Priority focus areas in 2020 are partners specialist services for an indepth review concentrated on backbone operations: { Appoint additional resources, of the current programme and priorities, { Support development of the Limpopo including full-time programme and to accelerate delivery and improve provincial economic strategy (and funding managers programme effi ciency and effectiveness. district plans) { Develop a monitoring and evaluation framework, funding strategy and register the legal entity.
16 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 Our business
Our contributions to Amplats 2018 SDG mapping Our 2018 footprint is a business-as-usual view, where the SDGs had an impact on the UN Sustainable investment decisions or activities. The baseline assessment indicates that 67% of our Development Goals 2017 fi nancial contributions are linked to 12 of the 17 SDGs. The largest fi nancial contribution is to SDG8 (decent work and economic growth), followed by SDG10 (reduced The United Nations’ Sustainable inequalities), SDG1 (no poverty) and SDG5 (gender equality). The results are consistent Development Goals (SDGs) are a set of with organisational initiatives focused on job creation. The current baseline assessment global goals adopted by 193 member focuses on fi nancial contributions for activities in 2018. states in 2015. They articulate a vision for a transformed world in 2030 by addressing 17 goals and 169 targets that span economic, social, environmental and partnership categories. The goals provide a framework of shared action for people, planet and prosperity to be implemented by all countries and all stakeholders, acting in collaborative partnership. Four years into the 15-year ambition for SDGs, the high-level political forum on sustainable development in mid-2018 highlighted growing momentum, but a need for accelerated action. Business therefore has a key role to play and is becoming more engaged. The SDGs can be used as a lens to report on performance, which provides a common language for the responsible investment community to understand cross-sectoral organisational impacts. Amplats already makes signifi cant contributions to the SDGs and is well positioned to play a greater role in South Africa attaining these goals. Before beginning the process of aligning our business to the SDGs through our sustainable mining plan, we had already established solid foundations on which to build as we move towards 2030. In implementing our sustainable mining plan, 12 SDGs are brought into focus (overleaf). The SDGs informed development of our sustainable mining plan (launched in 2018) which sets a vision for 2030 with clear targets that will re-imagine mining to improve people’s lives. In 2017 and 2018, we also began mapping our activities in our South African business units to the SDGs to ascertain how our current activities support these goals. This business-as-usual footprint revealed how we are already making signifi cant investments in SDGs through a portfolio of workplace, operations, community and supply-chain activities. Our SDG roadmap thus assesses our SDG footprint while implementing our sustainable mining plan in the context of an ongoing stakeholder accountability dialogue.
Anglo American Platinum Limited Environmental, social and governance report 2019 17
THE SUSTAINABLE MINING PLAN
THE SUSTAINABLE MINING PLAN CONTINUED
MAPPING OUR SUSTAINABILITY STRATEGY TO UN SDGs 67% Anglo American global stretch goals… Sustainable development goals… 15% Policy advocacy orporat d c e le te ad Accountability s e ru r T Ethical value chains
H e a lt h Water y
e
n
v 6%
i Climate change
r
o
n
m
e
n Biodiversity
t
T
h s
r
79% e i i
v
t
i i
n
n
g Education u
c m o m
Health and wellbeing
Livelihood
SDG accountability dialogues This is an Anglo American SA initiative to establish an ongoing multi-stakeholder two-way accountability dialogue in South Africa that uses SDGs as a benchmark and reference for external accountability at a national level. The second annual SDG accountability dialogue was held in November 2019, with some 60 external and 30 internal stakeholders. Since launching the dialogue series in 2018, we have successfully established a leadership position in the eyes of key stakeholders for mapping our activities to SDGs as well as integrating these global goals into a strategic framework, namely the sustainable mining plan.
This standard has been developed over responsible forestry and sustainable Case study: ten years through public consultation with fi sheries. over 100 individuals and organisations, The IRMA self-assessment tool has including mining companies, customers given us a valuable opportunity to and the ultimate downstream users of measure our performance at Unki mined products, NGOs, labour unions, against international best practice on and communities. a range of environmental and societal Unki completed an initial self-assessment factors. ahead of the independent on-site audit. Unki is the fi rst of many group It performed well against the 26 areas operations to be measured against the covered by the standard, including IRMA standard, in line with the working conditions, human rights, commitment in our sustainable mining community and stakeholder engagement, plan to have all our operations environmental impact, and planning and assessed against credible responsible fi nancing reclamation and closure. Anglo American leads the mining standards by 2025. Unki will go way on IRMA standard IRMA is a voluntary certifi cation system through the certifi cation audit in the for responsible mining meant to complement strong laws and fi rst half of 2020. This is an important In September 2019, our Unki Mine in government oversight. It is also the world’s initiative for Amplats, as our customers Zimbabwe was the fi rst mine in the fi rst global defi nition of what constitutes and end consumers who rely on our world to publicly commit to an leading practice in social and environmental metals and minerals rightly expect independent audit against the Initiative responsibility for large-scale mining the highest standards of ethical for Responsible Mining Assurance’s operations, emulating certifi cation production. (IRMA) standard for responsible mining. programmes in fair-trade agriculture,
18 Anglo American Platinum Limited Environmental, social and governance report 2019 2 3 4 5 1 OUR STRATEGY TO 2022 Our business
OUR STRATEGY OUR PURPOSE – RE-IMAGINING MINING TO IMPROVE PEOPLE’S LIVES
By re-imagining mining, we unlock the potential of our precious metals and people to create a positive impact on people’s lives and the environment. With the portfolio successfully reshaped, we are now in pursuit of further opportunities to extract value from our core portfolio. Through our people and innovation our strategy seeks to extract the full potential from our operations identifi ed from P101 and FutureSmart™ initiatives. Our strategic priorities
SHORT TERM (1 to 2 years) MEDIUM TERM (3 to 5 years) LONG TERM
1 EXTRACTING THE FULL POTENTIAL FROM OUR OPERATIONS THROUGH OUR PEOPLE AND INNOVATION
Improve asset reliability
Drive mining excellence and modernisation
Enhance concentrator performance
Pursue process excellence
FutureSmart technology and innovation
Digitalisation
Implement sustainable mining plan, centred around three pillars:
Trusted corporate leader Thriving communities Healthy environment
2 INVESTING IN OUR CORE PORTFOLIO THAT DELIVERS INDUSTRY-LEADING CASH FLOWS AND RETURNS
Implement fast-payback low-capex projects
See page 60 Progress growth options studies – Mogalakwena and Der Brochen 3 FACILITATING DEVELOPMENT OF THE MARKET FOR PLATINUM GROUP METALS TO INCREASE DEMAND
Stimulate investment demand through WPIC
Increase jewellery demand through PGI
Stimulate industrial demand by investing in R&D and AP Ventures
Drive global advocacy eff orts towards a greener economy
Building leading Organisational Achieving community and ZERO HARM culture anchored on best practice, stakeholder Safety, health and signifi cant leadership modernisation relationships to environment style and values and innovation make a lasting orientation across value chain contribution
... delivered in a safe, value-driven and socially responsible way
Anglo American Platinum Limited Environmental, social and governance report 2019 19
PILLAR: ENVIRONMENTAL VALUE
PILLAR: ENVIRONMENTAL VALUE
ENVIRONMENT Minimise harm to the environment
20 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
ENVIRONMENT
Amplats’ approach to sustainability sets out our commitment to demonstrating leadership in environmental stewardship. Mining must play its part to address the environmental challenges of a carbon-constrained world and society’s wider expectations of us as enablers of change, while we continue to meet the ever-growing demand for our products. Anglo American’s FutureSmart Mining programme is designed to tackle many of these challenges, both environmental and social. It is a new way of thinking that will transform the nature of mining – how we discover, mine, process, move and market our products – and how our stakeholders experience our business, in line with our purpose to re-imagine mining to improve people’s lives.
In the transition to a low-carbon economy, PGMs are critical to enable associated technologies. In delivering these products, we are committed to materially reducing our environmental footprint over the next decade. This will lead to fundamental changes in how we mine and process our products. Our ultimate vision is to maintain a healthy environment by creating waterless, carbon-neutral mines that deliver net positive biodiversity and conservation outcomes.
ENVIRONMENTAL MANAGEMENT
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ ZeroZeZ level 4 – 5 environmental { OneOnO level 3 (moderate) environmental { MaintainM zero level 4 – 5 incidents incident: an overfl ow of effl uent from environmental incidents { 35% year-on-year decrease in the the Unki Mine pollution control dam { Track compliance with all applicable number of substandard acts and discoloured river water legal audit fi ndings of environmental conditions recorded { Full compliance with all audit fi ndings authorisations for mining/process { Complied with NEMA regulation on not yet achieved activities, water and air submitting external legal audits of { Build capacity in the environmental environmental authorisations by team and embed improved reporting 7 December 2019 and web-based and effective dashboard publication within seven days management of priority environmental issues
Case study: FUTURESMART MINING: { Concentrate the mine: designed to RE-IMAGINING THE FUTURE provide a step-change increase in an OF MINING operation’s metal output, reducing FutureSmart Mining is Anglo American’s energy and water consumption through innovation-led pathway to sustainable more effi cient processing techniques mining. We are looking well beyond our { The waterless mine: focused on own industry to re-imagine the future innovative ways to separate and of mining, using open-innovation transport waste, evaporation principles and partnerships to fi nd measurement, dry-tailings disposal and solutions that will materially improve non-aqueous processing effi ciencies and our competitive { The modern mine: aiming to achieve a positions. As part of FutureSmart step-change in mining effi ciency by Mining, we are investing signifi cantly in developing and implementing new the following initiatives: technologies, automation and processes. { Digitalisation: the intelligent mine that leverages, for example, advanced process control and Internet of Things, as well as artifi cial intelligence
Anglo American Platinum Limited Environmental, social and governance report 2019 21
ENVIRONMENT
ENVIRONMENT CONTINUED
OUR MANAGEMENT Sustainable mining plan environmental stretch goals towards 2030 APPROACH Water The Anglo American FutureSmart 2030 goal: 50% reduction in abstraction of freshwater from water-scarce regions Mining approach to sustainability sets 2020: 20% reduction in abstraction (2015 baseline), 75% reuse (2015 baseline), water out meaningful targets for our water, intensity <1 (use less water per unit milled) climate change and biodiversity performance (reviewed below). We are Climate change building the foundations that will guide 2030: Achieve a 30% net reduction in greenhouse gas emissions, and a 30% our progress towards achieving these improvement in energy effi ciency (against 2016 baseline) targets. While we have made signifi cant 2020: Achieve existing energy and carbon-management targets (included in progress in areas such as water and management’s long-term incentives) energy effi ciency, realising our long- term environmental management goals Biodiversity will require considerable further focus 2030 goal: Deliver net positive impact on biodiversity across Anglo American and investment. This journey is 2020 goal: Net positive impact methodology, biodiversity value assessments and underpinned by best-practice policies, site-specifi c indicators in place at all high-risk sites performance standards and business processes; investment in internal capacity, capability and technological innovation; and partnerships and In 2019, we conducted a SHE way gap includes tracking the status of permits and collaboration with stakeholders. We analysis at all our operations, which audits. We aim to have implemented track and ensure compliance with our shows that Amplats operations have stable ORM processes by the end of 2020 policies and performance standards, achieved 96% compliance to SHE way and ensure effective dashboard which are available on request. requirements for 2019: management of priority environmental { In 2019, SHE way requirements were issues across our operations. ORM EFFECTIVE RISK MANAGEMENT extended to all non-core operations, implementation, particularly for our most SHE policy: The Amplats environmental activities, care-and-maintenance signifi cant environmental risks, forms part policy supports long-term sustainability operations of performance-based remuneration for of the business through effective { An ISO gap analysis on our SHE senior executives, along with a target to management of resources, reduced management system was introduced in reduce signifi cant environmental incidents. the fourth quarter for all operations. impact on the environment and Environmental management systems: We also identifi ed gaps and communities, as well as compliance to RMBR and PMR, which are responsible for opportunities between the various ISO legal requirements. It focuses on the product delivery and compliance to SHE management system requirements following value levers: water, climate external requirements, have environmental and the SHE way, and the progress by change and energy, land stewardship, management systems (EMS) certifi ed each operation in implementing the rehabilitation, waste and emissions. The against the ISO 14001:2015 standard. SHE way. policy is aligned with our safety, health EMS (environmental management system) and environmental (SHE) policy under the compliance with the standard is assessed overarching Anglo American SHE policy. ORM: We made progress in integrating annually by an independent certifi cation They are reviewed annually and updated the way we manage environmental risk body and continued certifi cation has been if required. into the Anglo American operational risk confi rmed for both operations. All other SHE way: The Anglo American SHE way management (ORM) process and operations’ EMSs are aligned with the ISO details our internal policy requirements for operating model. This year we used 14001:2004 standard and are on track to SHE in a single management system. Smartsheet software to develop a be certifi ed against the new standard by The SHE way was rolled out across our framework that uses the operating model 2020. Gap assessments against ISO operations in 2018 and guides our to manage and support delivery of our 14001:2015 have been performed at all integrated approach to achieving zero environmental strategy. Implementation of these operations, aiming for stage 1 and harm. It is designed as a platform to the Smartsheet platform is enabling more 2 certifi cation audits in 2020. This does enable operations to comply with and, effective and aligned systems to support not apply to our joint ventures or project in some cases exceed, ISO 14001:2015 more effi cient and accurate reporting that partners. requirements of an environmental management system. We set 2019 targets for each operation across the SHE performance areas and track and monitor progress against defi ned plans.
22 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
LICENCE AND PERMITTING contamination and related non-compliance Amplats has quarterly liaison meetings CONDITIONS with WUL limits are a key risk for the with the director: licensing and regional Our licence to operate relates directly to business. We address identifi ed non- managers of DWS. These engagements environmental permits and authorisations compliances through remedial action, help build and maintain constructive under relevant sections of the: with clear accountabilities: relationships, and address concerns raised { { Mineral and Petroleum Resources WULs approved in 2019: Mototolo Mine by both parties. (26 April), Amandelbult 15E and 62E Development Act (MPRDA) – (25 May), and Amandelbult chrome COMPLIANCE environmental management programme recovery plant (26 June) All operations work towards full report { Current WUL applications submitted compliance with legal commitments { National Environmental Management and pending approval by the (as per approved environmental Act (NEMA) – environmental impact Department of Water and Sanitation authorisations) by continuously managing assessments (EIAs), basic assessments, (DWS): commitments through action plans and waste licence and air emission licence – Twickenham proposed development tracking progress against fi ndings from { National Water Act (NWA) – water-use (renewal of existing licence) internal reviews/audits. All reviewed licence (WUL). – Der Brochen amendment fi ndings are discussed with senior A dedicated team coordinates permitting – Amandelbult Haakdoorndrift management at each operation and key and stakeholder engagements (during opencast fi ndings are regularly reported to our exco permit acquisition, administration, – Amandelbult fi ne chrome recovery and operations committee. plant execution and verifi cation), integrates Each Amplats operation and joint venture – Retained Rustenburg process project-permitting schedules, integrates (JV) in South Africa is required to conduct operations amendments reporting on permit compliance and risk, annual or biannual external audits against – Mogalakwena complex. and monitors implementation of permit their WULs in terms of the National Water conditions. Other licence and permitting Act, environmental management developments programme reports (EMPR); regulation Given that environmental permitting is a Applications for environmental 55 of the Minerals Act; and environmental key success factor for the business, and authorisations for Mogalakwena complex impact assessments (EIA) in terms of that delay in acquiring environmental expansion options study and Der Brochen regulation 34 of the National Environmental permits (or failing to comply with related expansion project were submitted to the Management Act. conditions) can have fi nancial, operational authorities in December 2019 for approval These audits are conducted by an and reputational costs, Anglo American in 2020. implements an industry-leading cross- environmental assessment practitioner and cutting permitting practice. The minimum Applications to postpone timeframes for a formal audit report is issued to the permitting requirements (MPR) programme compliance with 2020 SO2 emission limits operation in line with the format required was established in 2014 to support were approved by the Department of by legislation. Environmental Affairs and Forestry (DEFF) operations in timeously obtaining the right We have developed a strategy (illustrated for Polokwane, Mortimer and Waterval permits and complying with the conditions below) to increase levels of compliance complex smelters. of existing permits. with permit conditions by addressing Meeting the MPR is part of the critical To support our licence to operate, our fi ndings identifi ed during the external foundations of our approach to operations continually engage the environmental audits for WULs, EMPRs sustainability; it helps identify areas within authorities on relevant legislation to obtain and internal audits for air emission licences (AEL). permitting that are subject to risks and or renew the necessary permits or environmental authorisations and address provides guidance to achieve sound any challenges. permitting practice. All our operations are reviewed against the MPR annually. Plans are implemented to address gaps and progress is monitored to ensure continuous improvement to desired performance levels. In 2019, all Amplats operations achieved their target and some exceeded their target. The overall business unit score was 2.9, exceeding the target of 2.4, while Unki was the best performer, scoring 4. MPR best practice is a score of 5. Water-use licences All managed operations have water-use licences (WULs). Internal and external WUL audits are conducted annually in line with regulatory requirements. Groundwater
Anglo American Platinum Limited Environmental, social and governance report 2019 23
ENVIRONMENT
ENVIRONMENT CONTINUED
ENVIRONMENT AUDIT COMPLIANCE STRATEGY ENVIRONMENT Aspirational statement: Support long-term sustainability of the business and legal compliance through effective tracking and close-out of environmental external and internal audit fi ndings
Timeous Value Effective Continuous and Risk-based 100% Functional levers systems verifi cation accurate fi ndings compliance ownership audits
• Simple and • Monthly tracking • Scheduling of all • Risk-based • Assess fi ndings • Actions to effective systems and feedback legal audits to assessments of to confi rm when address fi ndings to track the on close-out of ensure timeous all fi ndings 100% can be to be allocated following risks: fi ndings at each auditing • Analysis of risk achieved for to functions that – Repeats operation different fi ndings are responsible • Professional • Prioritising – Unauthorised • Quarterly audits to be • Quarterly for managing the activities fi ndings based controls feedback to performed that on risk reporting on – Pollution/ operational align with legal progress towards • Responsible community leaders on requirements 100% to OPSCO action owners Key focus impacts areas compliance status • Elevation of must report • Real-time repeat fi ndings on progress of dashboard addressing the tracking fi ndings compliance status REDUCE IMPACT ON RESOURCES
(1) Enablon/Landfolio/Smartsheet (2) Minimum permitting requirements Key enablers (3) Cross-functional alignment and collaboration (4) Communication (5) ID and implementation of critical controls
What will Systems that add value to Compliance status Internal and external Business risks allocated 100% of audit fi ndings Responsible function fully success the users through effective against permits available audits completed and to each fi nding and closed-out effectively aware of relevant actions look like dashboard tracking at any given time submitted on time prioritisation and on time and successful close-out
Audit performance The 2019 status of prior year audit fi ndings for WULs and EMPRs is shown below: All 2018 audit fi ndings have been captured in our information management system WUL (2018 AUDIT FINDINGS) called Enablon and specifi c reports generated to refl ect: { Total fi ndings: 216 { Percentage of fi ndings versus solved { Total conditions: 987 { Finding classifi cation report { Percentage compliance: 78 { Risk to the business report { Finding description report PROCESS: Findings for MINING: Findings for { Commitment dates for open fi ndings { Flow metres { Stormwater infrastructure { Open fi ndings past commitment dates { Exceed water limits { Erosion { Findings solved per quarter. { Erosion { Exceed water limits { Contribution to pollution { Administrative changes to WUL Progress against audit fi ndings are { Flow metres reported to operations monthly and exco quarterly.
24 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Progressive improvement of compliance EMPR/EIA (2018 AUDIT FINDINGS) with audit fi ndings is evident since 2016: { Total fi ndings: 178 WUL TRENDS FOR MANAGED OPERATIONS { Total conditions: 3,519 (%) { Percentage compliance: 95 100
77 78 PROCESS: Findings for MINING: Findings for 80 74 { Stockpile-related { Invasive species management/ { Stormwater control/infrastructure biodiversity action plan 60 { Stakeholder engagement (internal and { Licence amendment 40 external) { Stormwater control/infrastructure 26 23 22 { Noise monitoring { Maintenance issues 20 { Soil monitoring { Drainage facilities cleaning 0 2016 2017 2018 2016 2017 2018 Findings Compliances All external EMPR/EIA and WUL audits of total conditions) that need to be for 2019 are in the process of being added addressed. The balance of the conditions EMPR/EIA TRENDS FOR MANAGED OPERATIONS to Enablon to ensure all fi ndings are relate to observations/conditions to be (%) addressed and remedial actions tracked noted/undetermined. continuously. 100 94 Based on the 2019 audit fi ndings, each 88 89 Audits under regulation 34 of the operation will adhere to the following 80 Environmental Impact Assessment process: 60 Regulations { Take action to ensure that all non- Amplats is committed to adhering to the compliances are addressed as a matter 40 legislative amendments of the EIA of priority { 20 12 11 Regulations enacted on 7 April 2017. Engage with relevant authorities on any 6 Compliance with these regulations requires non-compliances raised that are no 0 environmental authorisation (EA) longer relevant to specifi c operational 2016 2017 2018 2016 2017 2018 holders to: activities Findings Compliances { Conduct EA and related environmental { Where non-compliances have been management programme/environmental identifi ed that require government management plan compliance audits intervention with permit approvals, in line with regulation 34 licences and other authorisations or the From the 26 audit reports (2019 reg 34 { Notify interested and affected parties of amendment of an EA and/or EMPR, audits), 3,261 conditions were audited. the submission of all regulation 34 audit each operation will engage the relevant We found 2,470 (76%) compliant reports to competent authorities authorities as a priority to ensure that conditions, as well as conditions that { Make these audit reports available to relevant government departments are were either partially non-compliant anyone on request aware of the non-compliances and (249, 8%) or non-compliant (362, 11%) { Place these audit reports on a publicly agreements can be reached on the that needed to be addressed. The balance accessible website. formal application processes to be of conditions relate to observations/ initiated to close out non-compliance conditions to be noted/undetermined. As a result, 26 external legal audit reports fi ndings. on our environmental authorisations ENVIRONMENTAL INCIDENTS (EMPR/EA audits) were published online in Fines and directives Reporting, investigating and sharing December 2019. The 2019 audit reports In 2019, no confi rmed fi nes or directives lessons learned from environmental can be downloaded from our website: for non-compliance with environmental incidents or substandard acts and https://www.angloamericanplatinum. regulations, licences or permits were conditions reported are essential in com/sustainability/environmental- imposed by authorities on any of our improving our environmental performance compliance-audits managed operations in South Africa or across the business. Zimbabwe. However, Unki (Zimbabwe) From the 26 audit reports (2019 Reg 34 reported that an order and potential Over the last two years, we have rolled audits), 3,261 conditions were audited. USD1,000 fi ne was issued in September out digital tablets to report incidents and As a result we found 2,470 (76% of 2018 for the pollution control dam (PCD) environmental inspections. This technology conditions) compliant conditions, as well sludge temporary holding pad before has improved the effi ciency of our as conditions that were either partial disposal in the tailings storage facility. reporting by reducing time spent capturing non-compliant (249) (8% of total An appeal has been submitted to the incidents and fi ndings, and eliminates conditions) or non-compliant (362) (11% authority, with a response still pending. paperwork.
Anglo American Platinum Limited Environmental, social and governance report 2019 25
ENVIRONMENT
ENVIRONMENT CONTINUED
We adhere to the Anglo American In 2019, we recorded one level 3 The better-defi ned classifi cation process approach to reporting fi ve levels of (moderate impact) environmental incident – introduced in 2018 has contributed to an environmental incident severity according the fi rst since 2013. This related to an increase in level 2 incidents reported this to actual and/or potential consequences overfl ow of effl uent from the Unki Mine year: 22 compared to 12 last year, with for the receiving environment. pollution control dam into Mtebekwana two classifi ed as high-potential incidents. River, which discoloured the river water The classifi cation criteria were updated in A 36% decrease in the number of (refer page 27). This was classifi ed as a 2018 and became more exact. Level 3 – 5 substandard acts and conditions recorded high-potential incident with a reasonable incidents (ranging from moderate to major) this year and corresponding 32% decrease worst-case potential consequence rating are featured in the chief executive’s report in number of environmental incidents of level 4 (major). to the board and disclosed publicly. Any recorded (see trend analysis below) incident that could have resulted in more indicates more effective risk monitoring serious impacts is recorded as an and management. environmental high-potential incident.
ENVIRONMENTAL INCIDENTS AND SUBSTANDARD ACTS AND CONDITIONS (SSAC)
800 2,000 1,786
23 1,536 600 1,480 1,500 603
400 11 998 1,000 380
12 200 Target: Zero level 4 – 5 incidents 500 209 1 20 131
0 0
2016 2017 2018 2019
Q Level 1 Q Level 2 Q Level 3 Q SSAC
Trend analysis of level 1 and 2 incidents shows that 81% of incidents affected land and/or open water, predominantly through hydrocarbon spills and pipe leakages (2018: 89%). In 2019, we recorded 12 complaints/ grievances classifi ed as having an environmental impact (2018: eight). Nine were community complaints at our managed operations about activities that cause gas emissions or excessive dust, and one similar complaint at our Bokoni JV operation. Three complaints related to mine impact on water resources. Each complaint was investigated, feedback given to the complainants and remedial action taken where required.
26 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Case study:
LEVEL 3 ENVIRONMENTAL INCIDENT: OVERFLOW OF EFFLUENT FROM THE UNKI MINE POLLUTION CONTROL DAM
At our Unki Mine in Zimbabwe, the placed a guard to monitor the water-level These included lowering the warning pollution control dam overfl owed on rise in the dam for risk of further potential level of the overfl ow sensor, 21 March 2019 due to excessive rain. overfl ow. reconfi gured warning system to emit Mine management was alerted audible emergency warning when levels The required remediation was minor and immediately and the social performance are exceeded, and automating the proved effective. The incident resulted in a manager alerted the community to the system to activate the dewatering low-toxicity pollutant, initially measurable incident. We reported the overfl ow to pump. up to 3.1km away from the discharge the Environmental Management Agency point. The impact was fully contained The community uses boreholes in the (EMA) and took immediate action to within four days. Potential accumulation village for drinking water as river water mitigate the impact. We sealed off the was monitored through sampling and is not potable. To ensure clean drinking spillway to prevent further overfl ows, analysis of the results which showed there water is available to the community next stopped other sources of infl ow into the was no accumulation in river water. There to the river, Unki Mine engaged with the dam, introduced aluminium sulphate to were no reports or evidence of visible community and District Development coagulate and settle the solids in river negative impact on any aquatic life during Fund to resuscitate boreholes in the water to reduce further spread, and and after the event. village that had broken down. introduced borehole water to dilute the spill plume. We collected samples of The mine conducted internal investigations the effl uent at the spillway and Chironde to identify root causes of the incident and Bridge for laboratory analysis. We institute mechanisms to prevent a repeat.
Anglo American Platinum Limited Environmental, social and governance report 2019 27
ENVIRONMENT
ENVIRONMENT CONTINUED
ENVIRONMENTAL Responsible Investment Top 30 Index in also meet our requirements, such as EXPENDITURE AND 2019. Vigeo Eiris confi rmed our inclusion responsible sourcing. We ask suppliers PROVISIONS in the best emerging-markets performers to agree to these contractual requirements Environmental expenditure for our managed ranking for 2019, as a result of leading during registration. ESG performance. operations in 2019 was: Suppliers will be required to complete and { R24.3 million for waste disposal, regularly update a self-assessment emissions treatment and remediation RESPONSIBLE SUPPLY CHAIN MANAGEMENT – questionnaire, which will become a (2018: R19.5 million) mandatory requirement for future sourcing. { R57.9 million for preventing pollution ENVIRONMENTAL STEWARDSHIP The questionnaire defi nes key question and environmental management sets, which enables suppliers to better (2018: R48.5 million). Anglo American’s supply-chain function is a key facilitator in achieving our understand customer sustainability Total environmental expenditure of sustainability strategy. Our vision is to be requirements and their own practices. R82.2 million was R14 million higher part of a value chain that reinforces To maintain transparency around this than 2018, refl ecting increased costs for positive human rights and sustainability requirement, and support prospective expenditure on waste treatment/disposal outcomes. Accordingly, the supply chain suppliers to better understand customer and personnel (travelling, education, team has prioritised several breakthrough expectations, the questionnaire is also training). This excludes the costs of outcomes supporting an ambitious plan to posted on our website. non-product output as defi ned in the innovate supply responsibly. On a sample basis, ‘high-risk’ suppliers International Federation of Accountants’ Our approach to responsible sourcing may be required to provide evidence of guidance document on environmental previous responsible-sourcing management accounting. helps prioritise ethical decision-making when buying goods and services, allowing assessments, or to conduct a new, Expenditure for environmental-related us to work closer with suppliers to partner third-party assessment. We expect programmes and projects is tracked on in identifying and addressing sustainability suppliers to develop corrective plans to our SAP system at operational and issues. address any identifi ed gaps in meeting our corporate levels. requirements as well as plans to address The Anglo American responsible sourcing risk. Suppliers are also expected to EXTERNAL RECOGNITION standard for suppliers, available on our cascade the standard throughout their Amplats is considered a leader on ESG global websites, details our expectations supply chains (including their agents, issues compared to its industry peers. of existing or prospective suppliers under intermediaries, contractors and suppliers). fi ve pillars, including a requirement to We were pleased to retain our Prime rating demonstrate how they protect the To focus our efforts and identify suppliers in the metals and mining sector of the environment. Under each pillar, the with higher potential for sustainability risk, ISS-Oekom Corporate Responsibility standard defi nes minimum expectations we use a risk heat map and nomination Review for 2019, scoring 1 (the lowest risk and highlights best-practice and approach. The risk heat map has been in score) out of 10 for our environmental aspirational sustainability ambitions for use since 2018 and considers potential performance. suppliers to work towards. risk to people, the environment or society due to the type of goods or services Amplats was ranked by Sustainalytics as We expect all suppliers to comply with supplied. a global leader out of 55 peers in the applicable environmental legislation and precious metals sector in 2019. This stems set out requirements to support suppliers Our engagement with suppliers indicates from the company’s leading position on in limiting their environmental harm. These that most high-spend suppliers social and environmental issues and include risk assessments, monitoring understand potential responsible sourcing average performance on governance emissions (eg greenhouse gas and air risk and environmental impact, and issues. Our ESG‐related disclosure follows quality), responsible use of water and other typically have established processes to best practice, signalling strong resources such as energy. Where possible, identify and manage these risks. In 2019, accountability to investors and the public we encourage suppliers to integrate no major adverse environmental issues due to strong oversight at board and circular-economy principles in supplying were recorded. executive levels, as well as ESG goods and services to the group. Small and medium-sized suppliers, which management integrated into core business are a large percentage of our supply base, strategy. We have aligned the standard closely with our group-wide sustainable mining plan, traditionally have greater diffi culty in Amplats was ranked by FTSE Russell as best-practice external guidance and demonstrating procedures and practices ESG leader among the top fi ve peers in policies, including our SHE policy. Our linked to core environmental requirements. the platinum and precious metals sector in standard is available in multiple languages We have intensifi ed our efforts to support 2019. We received the highest ratings for and supported by a frequently-asked these businesses to meet our standards overall ESG (4.8), environmental (4.7), questions document for suppliers. through a bespoke responsible sourcing social (4.7) and governance (5.0). We also training programmes, targeting remained a constituent in the FTSE/JSE All suppliers to Anglo American must 74 suppliers for training and self- assessment in 2019.
28 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
WATER
HIGHLIGHTSLOL LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ TotalTo water withdrawal intensity { WaterW shortage is a principal risk as { ReduceReR our freshwater consumption was 1.00 against a target of all our sites are in water-scarce areas and incrementally improve water 1.17m3/tonne { One level 3 (moderate) incident: effi ciency { Potable water-use intensity from – An overfl ow of effl uent from Unki { Risk-based approach: Develop external was 0.30m3/tonne for Mine pollution control dam site-specifi c water management the year, a 23% improvement discoloured river water plans to address operational water since 2015 management priorities and risks { Increasingly reducing freshwater (page 31) consumption at our operations, { The main focus remains on site-wide and partner in several regional and regional water balances, bulk-water resource and water- supported by the water information effi ciency initiatives and management system (WIMS) { Groundwater liabilities included for programme to optimise recycling/ all managed mining operations’ reuse at our operations. This will be closure liabilities. The groundwater supported by projects to manage liabilities for all managed process stormwater, improve mine operations will be fi nalised in dewatering, adequate sizing of water H1 2020 storage infrastructure to contain, { Improving the way we defi ne, manage and recycle water, correct account and report our water use measurements of water withdrawals and use, reducing total dissolved solids, sulphate and organics for sites using effl uent and looking at alternate sources of water for those sites dependent on potable water
Water is a vital resource for our Water: a critical issue South Africa’s water supply is predicted to operations and host communities. Amplats relies heavily on water as an input reach a crisis point by 2030, and large- For Amplats, water shortage is a to mining and processing activities. scale public-private partnerships will play principal risk as all our sites are in Responsible management of this resource a vital role in the future of water in this water-scarce areas. To address our is critical, given concerns on its security country. Mining is one of the few industries and quality, as well as strict regulation and that can use water of lower quality, ie not water risks, we are managing current scrutiny by authorities. Pressure on shared suitable for human consumption, which water use holistically, while freshwater resources is exacerbated by allows us to apply creative approaches developing and applying innovative growing climate impacts, competition to water reuse and recycling. management approaches and between users and potential for confl ict. technologies. In tandem, taking a catchment-based approach to water management enables us to play ANGLO AMERICAN SUSTAINABLE MINING PLAN 2030 TARGETS a key role in defi ning and realising Our vision is to operate waterless mines. Amplats has set 2030 goals against a 2015 opportunities for contributing to baseline: regional water conservation. { Our vision is to substantially reduce our freshwater use in water-scarce regions { Move towards zero potable water use in process operations This approach provides a solid { Ensure our operations are water-resilient by 2020 foundation as we work towards { Invest in water treatment and other relevant technology innovation meeting our ambitious sustainability { Build water-related infrastructure for the mutual benefi t of the company and our targets. As part of FutureSmart communities Mining, our ultimate vision is to { Proactively partner with key stakeholders in public-private partnerships. develop the waterless mine – one that uses no external freshwater beyond ramp-up.
Anglo American Platinum Limited Environmental, social and governance report 2019 29
ENVIRONMENT
ENVIRONMENT CONTINUED
Amplats water management journey
2021 to 2030 2020 { Implementation 2015 2019 { Formulate { Monitoring and Baseline for control { Robust Amplats water targets 2018 water strategy { Validation Anglo balance { Defi ne water 2016 American tools action plans Revised water water strategy { Updated { Confi rm water management and goals water goals to 2030 standard metrics { Underpinned 2010 – catchment- reporting by approved WETT wide risk-based baseline initiatives and programme resources
KEY WATER STRATEGY ACHIEVEMENTS AND DEVELOPMENTS IN PROGRESS
Consume only minimal clean water Redesign processes and technology and use others’ waste water; help Through water, create sustainable to be water-effi cient and only use develop new sources of clean, development opportunities for recycled water potable water stakeholders
2002: Reverse osmosis plant at Dishaba 2002: 6Mℓ/d Mokopane effl uent secured 2014: PEGAC (Premier’s employment Mine for Mogalakwena Mine growth advisory council) – Amplats co-chairs integrated infrastructure working group
2015: Dissolved air fl otation plant 2004: 14Mℓ/d Polokwane effl uent In progress: Limpopo regional water supplying Rustenburg process secured for Mogalakwena Mine resource development project operations
2018: Electrocoagulation water 2004: Olifants River water resources In progress: ORWRDP phase 2 for treatment system at Amandelbult and development project (ORWRDP) initiated mutual benefi t of communities and Baobab concentrator as phase 1 De Hoop Dam completed industry with water for mutual benefi t of communities and industry
Under investigation: Evaporation-loss 2006: 15Mℓ/d Rustenburg effl uent Under investigation: UG pyroxenite reduction from open water bodies secured for mines and process plants aquifer development at Twickenham Mine
Under investigation: Paste and dry 2013: 6Mℓ/d additional Polokwane stack tailings effl uent secured for Mogalakwena Mine
2018: Hall Core Mapela project to supply groundwater to communities around Mogalakwena Mine
30 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
MANAGEMENT APPROACH self-assessments conducted according { Aligning freshwater defi nitions and Since 2010, Amplats has been improving to a schedule water reporting is a key building block its water management as part of Anglo { Amplats’ water strategy and operational in setting actions to achieve the American’s group-wide initiative (key steps water management plans and sustainable mining plan’s water targets. on page 30). Our major shareholder associated targets for 2030 will be The Anglo American water information signifi cantly revised its approach to water fi nalised and developed by the second management system (WIMS) provides management in 2016 by introducing a new and fourth quarters of 2020, a real-time data analytics platform to group water management standard and respectively. The fi t-for-purpose water manage capturing, quality control, reporting requirements. The standard action plans will focus on operational accounting and reporting of water data. takes a risk-based approach to water expenditure and sustaining capital on It translates water balances into management, in line with global best the highest priorities accounting water balances and uses practice and ICMM reporting guidelines. { At 75% of our sites, we have completed ICMM defi nitions to report data A cornerstone of the standard is dynamic water balances (60% in consistently for each site every month. implementing operational and regional 2018) and we expect all sites to have The WIMS system has been piloted at water balances to inform our approach developed dynamic water balances by the Polokwane smelter, Twickenham to managing regional (catchment-wide) the end of 2020. These balances and Mogalakwena mines, and will be water risks, in partnership with regional provide a more accurate and detailed rolled out to all our sites in 2020 stakeholders. understanding of ICMM-defi ned water { Groundwater liabilities have been withdrawal, discharge and use, which included for all managed mining The group water management standard underpins the effective assessment and operations’ closure liabilities. The underpins our strategy and defi nes the evaluation of site-specifi c water risks groundwater liabilities for all managed minimum requirements to ensure under various rainfall forecasts. They are process operations will be fi nalised in sustainable water management. It used to identify operational water the fi rst half of 2020 addresses all aspects of water management priorities and examine { Water intensity performance: We are management, including supply and different scenarios, with the aim of planning to improve our water intensity security, water for operations, hydrology setting realistic operational water performance to best-in-class for our and hydrogeology, mine dewatering, water management targets to reduce mines as well as benefi ciation plants. collection, storage, uses and discharge, freshwater withdrawal We are continuously improving our closure, post-closure, water quality and { We have completed a regional internal reporting to better inform potential environmental impacts, including Limpopo water balance which has management of water fl ows and status sustainable and socially responsible water assisted in quantifying the catchment reuse. This will allow us to track our use, for sites and projects. Site plans water assurance, shortfall and demand internal performance in water recycling include provision for water security, over time for all water users in the and reuse, and compare it to the water-use effi ciency, tailings water- catchment. We compiled heat maps to industry, while identifying areas of recovery projects and a mine dewatering indicate shortfalls in storage reservoirs improvement. strategy, stormwater management and (with and without interventions over The baseline water management discharge management, complemented time) and we considered bridging understanding will continuously be by a monitoring programme. options to meet water demand in the improved as we fi nalise existing and study catchment. The regional The standard has transformed the way we future initiatives. The current baseline catchment analysis also included an capture and process information about our understanding is acceptable for life-of- analysis of climate-change impact on water risks and use. We summarise our asset planning (LOAP) and for developing the regional water balance. We plan to progress in implementing it over the last an updated Amplats water management complete a regional water balance to two years as well as key steps going strategy. forward: support Mogalakwena Mine in future { In 2018, we completed regional water { Hydrogeological models have been By the end of 2020, we expect all assessments, following the ICMM established at 80% of our sites and will operations to have detailed, dynamic regional balance approach, for all our be fi nalised for all applicable sites where operational water balances and sites groundwater features in the fi rst half hydrogeological models, supported by { By end-2019, we had dedicated water of 2020. Modelling water-balance and regional water balances linked to regional specialist managers as custodians of hydrogeological scenarios signifi cantly climatic data and the WIMS database. This the water management standard at improves our ability to predict and will enable a more consistent baseline of every site and overall for Amplats quantify life-of-asset risks and identify water-management data with which to { Over the last two years, we have required infrastructure modifi cations. determine targets, KPIs, scenarios and completed detailed self-assessments Mine dewatering strategies are being site-specifi c strategic water plans. developed for two sites. Dewatering and gap analyses for all our operations Until 2020, we will report water against the standard, with results forms part of the operational site water balance and water security performance under the defi nitions we used included in our CEO’s scorecard. in 2015. In 2020 we will re-baseline all In 2020, all gaps identifi ed will be fully data and introduce improved ICMM- addressed and follow-up annual aligned defi nitions, to measure progress against our 2030 goals.
Anglo American Platinum Limited Environmental, social and governance report 2019 31
ENVIRONMENT
ENVIRONMENT CONTINUED
All new Amplats capital projects follow our The Department of Water and Sanitation We are implementing an ongoing investment criteria by stage for water (DWS) published a report on mining integrated water plan (conservation and management, as part of the Anglo companies’ compliance with the demand management) to mitigate related American investment development model, conditions of their water-use licences security risks. This includes a focus on which includes water-management targets (WULs). The report, which was submitted shifting further to non-potable process and specifi es requirements for to parliament, contained outdated water; investing in water-treatment and infrastructure and technology to meet information and Amplats engaged with the relevant technology innovation to improve those targets. department to ensure accurate information operational water effi ciencies; constructing is available. We responded to media on-site storage at Mogalakwena, We assess water-related risks each year enquiries with detailed responses to Amandelbult and Rustenburg; rolling out as part of our enterprise risk management highlight numerous actions that are the regional water strategy development framework. This includes operational risks planned or under way to improve for Limpopo; and ensuring strategic from limited water supplies, and social compliance levels at all operations. alignment, partnership and technical risks from competition with other water support to local and regional water stakeholders, which are embedded in the Amplats has a standing monthly meeting authorities. LOAP process for all operations. with DWS to discuss and resolve any issues arising from water-use licence Partnering and engaging with Water in our operations compliance. These meetings have been stakeholders on water security Our main water-management activities helpful in tracking the status on any licence Water security is a particular risk for our include: applications submitted to the regulator. operations in Limpopo, especially during { Abstraction, conveyance treatment and prolonged drought and rising community recirculation No water source, ecosystem (eg Ramsar- and municipal demand. We are { Monitoring and implementing water listed wetland) or habitat was materially increasingly reducing freshwater balances affected by our extraction and use of consumption at our operations, and { Dewatering to access ore reserves water. In 2019, we recorded one level 3 partner in several regional bulk-water { Ore processing (moderate impact) environmental incident resource and water-effi ciency initiatives. { Mineral residue deposition and – the fi rst since 2013. This related to an This is part of a collaborative water discharge control overfl ow of effl uent from the Unki Mine strategy for Limpopo, launched in 2017, { Smelting pollution control dam into Mtebekwana in partnership with government, regional { Benefi ciation of metals River, which discoloured the river water water providers and other mining houses. { Cooling (refer page 27). This was classifi ed as a While the province is expected to be { Transportation and dust suppression high-potential incident with a reasonable severely water-stressed between 2022 { Stormwater management and fl ood worst-case potential consequence rating and 2025, studies have identifi ed several protection of level 4 (major). opportunities for source-water options to { Diversion of freshwater We are working to eliminate these augment regional water supply. { Storage for recycled water and incidents completely by improving freshwater supply. maintenance, desilting storage dams, In 2019, the focus was on enhancing the partnerships between government and We also provide access to fully functioning introducing operational controls and industry to better understand the status water, sanitation and hygiene (WASH) increasing water recycling. of water sources in the province. This will services at all our mining operations and RESPONDING TO WATER RISKS inform the development of bulk-water hostels as a basic human right. Water security infrastructure improvements to supply the Investment All our sites operate in areas of high water Olifants River catchment by implementing Since 2017, Anglo American has spent stress, defi ned as catchments where the Limpopo water resources study USD4 million (R58.8 million) on water available water resources are over-used. project, funded and undertaken by Anglo initiatives at Amplats, including Our approach to risk considers four levels: American. This work supports the investments in reporting, computerised low, moderate, signifi cant and high. Our understanding and planning initiatives by water reporting and management systems company water-risk profi le is moderate to DWS on water resources. (SCADA), developing water balances and signifi cant at this stage, based on We are particularly active in the Olifants hydrogeological models, and dewatering risk-based criteria in our water River water forum and Lebalelo pipeline strategies. We have set aside an additional management standard. in sourcing water into the Northern and USD5.5 million for water-related initiatives Our climate-data review and predictive Eastern Limb platinum operations and in 2020 and a further USD20 million for modelling indicate that increasing weather communities. This includes collaborating the period 2020 to 2023. volatility – including highly variable and with 30 organisations to provide bulk- Compliance interchangeable periods of droughts and water services to mines and communities Refer to pages 23 to 26 for compliance fl oods – is likely to exacerbate water stress in the area. Used (grey) water is also with environmental regulations, licences or and vulnerabilities at our operations and sourced for Northern Limb operations permits for managed operations in South communities in which we operate, notably through partnerships with the Polokwane Africa or Zimbabwe. in the Limpopo region. and Mokopane municipalities.
32 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
We meet with municipalities, water boards under the jurisdiction of municipalities, but the impact is localised and no external and water-user associations to review Amplats is investigating options to groundwater users are affected. Seepage issues affecting supply. In Rustenburg, replicate the HCWM project in from TSFs contributes primarily to Mogalakwena and Lebalelo, these Twickenham’s host communities. increasing salinity in localised groundwater engagements are ongoing and assist in bodies. The risk associated with Although Twickenham is on care and improving the management of water- groundwater plumes is continuously maintenance, it is still being actively supply infrastructure and resources in the tracked through monitoring boreholes and managed from a water point of view. In municipal areas. Through the Olifants River groundwater models. Management 2019, funds were spent on maintaining the joint water forum, we are instrumental in measures are considered where required, 16Mℓ raw-water dam and bulk-supply advising and soliciting feedback to such as curtain drains/boreholes. pipeline. Additionally, infrastructure has government on the needs of the mining been installed between the dam and Operational water balances will enable us sector and the communities where the shafts to ensure effi cient excess water to better understand and manage water mines operate on water issues. management in the care and maintenance quality issues. We are increasingly using We have partnered with Polokwane phase. We have refurbished the Lebalelo hydrogeological models to assist in municipality in upgrading the wastewater pipeline supplying Twickenham mine in identifying potential risks related to treatment works. The 6 megalitres/day areas where it was exposed by erosion to seepage from tailings dams and affected (Mℓ/d) expansion module of the plant has ensure safety of the infrastructure. water-containment facilities, and develop been completed. The upgrade has to solutions. At Unki in Zimbabwe, which continues to enabled us to increase our total effl uent experience severe drought, we started Addressing specifi c risks and allocation from the Polokwane waste- introducing boreholes in 2019 as an concerns water plant to 20Mℓ/day. To fully use the alternative water source to augment Our principal water quality-related risks lie allocation from this plant, we have initiated surface water. This project will with our Mogalakwena operation due to its a pipeline upgrade project from Polokwane be completed in early 2020. We also dependence on effl uent reuse. Effl uent to Mogalakwena. This is expected to be engaged with the local community and quality from the two waste-water plants is completed in 2021. District Development Fund to resuscitate variable and this affects the operation in In Polokwane, we are working with the boreholes in the village that had broken terms of output and potential health risk brewer, SAInBev, and the Strategic Water down to ensure adequate access to from exposure to poor wastewater effl uent. Partners Network to fi x water leaks that drinking water. Unki is implementing We provide technical assistance to the led to over half the potable water supply several water-conservation and demand- municipality for operating and maintaining being lost. management projects to reduce site water its assets to improve the quality of effl uent demand and withdrawal from the supplied and discharged into the We are completing a feasibility study of the Lucillapoort dam. environment. The expansion of the Mokopane effl uent pipeline to improve its Polokwane waste-water plant will help reliability. The project aims to improve Water quality risks reduce quality risks in water being supplied reliability of supply to the mine through the We seek to minimise adverse effects of our to Mogalakwena concentrators. pipeline, and ensure accessibility for mining activities on surrounding surface maintenance, by rerouting it to avoid and groundwater to avoid affecting the We have developed a strategy to address built-up areas and private housing water security of our stakeholders concerns on elevated nitrate levels in the backyards. (poor-quality water is harmful to the groundwater at Mogalakwena complex environment and human health, can affect and surrounds, and ensure the mine does We are also improving water security at mining and processing equipment, and not contribute to these levels. Mogalakwena by providing adequate presents closure liabilities). At Twickenham, which is under care and storage facilities in the form of a buffer maintenance, we have surplus water and dam. This project is planned for 2023. The volume and quality of water allowed to be discharged by our operations are about 1.0Mℓ/d is released into the In 2018, we initiated the Hall Core Water regulated. Any unplanned discharges or environment. We are addressing related Mapela (HCWM) project to provide water regulatory breaches are investigated and community concerns through a joint to communities in Mapela. Amplats funds reported as environmental incidents, while community forum, chaired by DWS. In the supply of 3.5Mℓ of potable water daily root causes are addressed promptly. 2019, to stop uncontrolled excess water to over 100,000 people in the 42 villages discharge from the mine, we modifi ed around Mogalakwena complex. The We monitor surface and groundwater at all existing infrastructure to reroute this water initiative is a successful partnership our mines and process plants (upstream to a central storage facility, the main dam between Hall Core, Mapela communities and downstream of operations), as well as at the mine, for distribution to other users and Mogalakwena local municipality. inside and outside mining areas in and an irrigation initiative for the catchments where we operate. We also community. We have identifi ed additional In response to stakeholder concerns in the monitor surface waterbodies. Our tailings initiatives to use the excess water for media about municipal water-supply return-water dams are habitats for fi sh, irrigation that will be implemented over the challenges to Twickenham Mine birds and plant life. At some operations, next two years. In the meantime, excess communities, although water supply falls seepages from tailings storage facilities water will be further treated and (TSFs) affect the quality of groundwater, discharged through the wastewater facility
Anglo American Platinum Limited Environmental, social and governance report 2019 33
ENVIRONMENT
ENVIRONMENT CONTINUED
on site. In 2021, the neighbouring mine is opportunities at priority sites, and set up cooling applications that traditionally used planning to develop infrastructure to take plans for each of the selected sites that freshwater. the excess water to its site for commercial may include: As part of our best-practice new benefi cial use. { Freshwater diversions infrastructure development, the lined { Innovative water-saving solutions, 400,000m3 Mareesburg tailings facility has REDUCING FRESHWATER USE including increased recycling and reuse enabled an 8% increase in water recycled Based on current defi nitions, some 90% of with associated treatment facilities to (up from 52% to 60% from conventional our freshwater withdrawals take place at increase the use of treated sewerage unlined facilities). In addition, we are four sites: Unki, Mototolo and Amandelbult instead of potable water scoping and developing improved mining complexes, and our smelters and { Tailings dewatering technologies to management and design criteria for metal refi neries in the Rustenburg maximise water recovery and reuse. pollution control dams (desilting) complex. Mogalakwena sources most of At priority sites, we will focus on maintenance and sizing of rock-waste its withdrawals from treated effl uent. Our technological changes and digitalisation to dumps, based on evaluating long-term operations at Amandelbult and Mototolo monitor water management and optimise rainfall data and water-balance analysis to recycle over 50% of water used, with water systems and balances for a further improve recycling and reuse at our additional sources from rainfall and step-change towards best-in-class. operations. Upgrading pipelines and water stormwater harvesting, and supplement infrastructure to reduce leakages are all with potable or raw water from third-party At Rustenburg, we implemented a part of our commitment to reduce suppliers. Our operation at Unki uses dissolved air fl otation unit and sand-fi lter freshwater use. We are also looking at predominantly surface water. All our treatment which has improved the implementing emerging technologies to benefi ciation plants (smelters and consistency and quality of effl uent used by improve water quality from the waste- refi neries) are sensitive to water quality the operation. This has also helped reduce water plants where we source effl uent and mostly rely on potable water from its dependency on potable water for for processing. This will ensure we have third-party suppliers. processing. safe effl uent and improve our reliance We are re-baselining water data for all Another key enabler is electrochemically on its use. mining operations with freshwater treating water to improve effi ciency by defi nitions developed by Anglo American promoting the use of mine service water in in 2019. Concurrently, we will evaluate
AMPLATS FRESHWATER (POTABLE) WITHDRAWAL (x1,000m3)
20,000 17,395
14,290 15,000 13,581 12,327
9,433 10,000 7,642 6,142
5,000
0
2013 2014 2015 2016 2017 2018 2019
Freshwater withdrawal refers to potable water (in our case, water from Magalies, Rand Water, Polokwane municipality and Lepelle), excludes surface water (from Lebalelo and Lucillapoort dam) and groundwater extracted from well-fi elds (not seepage or pollution control scavenger wells orwater ingress into mines).
34 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Case study: PARTNERSHIPS IN LIMPOPO project delivers substantial benefi ts to management features for our dams, Amplats has been instrumental in all stakeholders sustainably and reduce the risk of level 3 setting up partnerships to advance { Greater Tubatse local municipality: discharges bulk-water resource development in Amplats has been supporting the { Two-dimensional studies that map Limpopo: municipality with project implementation fl ood risk and help to identify { Lebalelo Water Users Association for the past 10 years. We have provided structural and design improvements (LWUA) was established in 2002 to the municipality with resources { Water covers and fl oating solar develop and operate the supply (engineer, fi nance and administrative) to panels that also minimise system from Havercroft to Steelpoort source MIG funding for all its projects, evaporation Valley, providing raw water to including water { Under-drainage systems for tailings 15 mining operations. Amplats is the { PEGAC: established in the early 2000s, dams that recycle water and reduce majority shareholder and chairs the PEGAC is a forum for public and private freshwater withdrawals, eg HDPE entity. LWUA was appointed to sectors to coordinate efforts to develop lines the Mareesburg tailing dam at project manage raising the Flag infrastructure in Limpopo. Amplats Mototolo Boshielo dam wall with DWS and is co-chairs the integrated infrastructure { Tailings dewatering technologies engaging with the department on working group and has seconded a (cycloning, thickening or fi ltered potentially assisting with specialist to assist the premier’s offi ce tailings pilot systems) that allow implementing the remaining phase with project management and improved water recovery of the Olifants River water resource coordination since 2017. and recycling rates. Cycloning was trialled at Unki and tailings fi ltration development project (ORWRDP) Innovation changing the game for at Mototolo (see tailings section, { ORWRDP: the mining industry’s water page 49) engagement with DWS on this Our ambition is to develop mines that are { Piloting coarse particle recovery project is coordinated through the water-neutral in their operational phase. technology that uses a coarser joint water forum. Amplats chairs the This means that no additional water is grinder when processing ore; by forum’s executive committee and introduced to or intercepted and combining this with dry-disposal or has been instrumental in engaging contacted by the mine, diverting fi ltered tailings technology, we can with the department on bulk-water freshwater. Innovation is key to realising reduce water intensity by over 50%. distribution in Limpopo in particular, this goal and, through FutureSmart, we are identifying critical areas where exploring several promising technologies: commercial entities can collaborate { Computational fl uid dynamics that with government to ensure the inform the design of new stormwater
Return water, Paardekraal.
Anglo American Platinum Limited Environmental, social and governance report 2019 35
ENVIRONMENT
ENVIRONMENT CONTINUED
WATER WITHDRAWAL WATER WITHDRAWAL BY SOURCE IN 2019 3 (million m3) (000m )
Surface water 1,717 35 33.2 32.7 30 29.6 26.5 25.1
25 24.4 Groundwater 8,851 20 Third-party potable water 7,642 15 14 .3 12.3 9.4
7.6 Third-party
10 7.4
6.1 non-potable water 6,884 5 0 Total withdrawals 25,094 2015 2016 2017 2018 Target 2019 2019 0 2,000 4,000 6,000 8,000 10,000 12,000 Q Total water withdrawal Q Potable water
TOTAL WATER WITHDRAWAL INTENSITIES POTABLE WATER INTENSITY 3 (m3/tonnes milled) (m /t milled)
1.2 0.5 0.48 1.02 1.00 0.46 1.0 0.96 0.91 0.88 0.8 0.4 0.39 0.6 0.36 0.33 0.4 0.30 0.2 0.3 0.24 0.0
2015 2016 2017 2018 2019 0.2 2012 20132014 2015 2016 2017 2018 2019
In 2019, for each refi ned ounce of PGMs and gold from managed operations (excluding toll refi ned):
Intensity (m3/t milled) 2019 2018 2017 Total water-withdrawal intensity 1.00m3 0.96m3 1.02m3 Potable water-use intensity from an external resource 0.3m3 0.24m3 0.36m3
FRESHWATER USE INTENSITY drought conditions, we used more potable achieved an A score for its 2019 Our operations report on water withdrawal, water than in 2018 and exceeded our submission. This score falls in the consumption and discharge, tracking target. Our progress in recent years has leadership band, which includes A and A- performance against targets monthly. been driven by progressive implementation scores. This demonstrates strong of best-practice water-treatment recovery management of water issues. We are making steady progress towards technologies. our 2020 water targets of reducing absolute freshwater abstraction and use There has been an increasing focus on for processing operations (compared to recycling and reusing water from internal projected business-as-usual (BAU) sewerage plants, tailings return-water consumption), recycling and/or reusing dams, mine service water and other water for operational requirements and internal sources, such as pollution control recording only one level 3 (or above) and stormwater dams. incident in the year. In line with our commitment to transparent In 2019, we met our targets for total performance, we participate in the annual withdrawal and withdrawal intensity. Due water disclosure project of the CDP, to infrastructure problems and recent available at www.cdproject.net. Amplats
36 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Water consumption partnership, projects are being defi ned to Our water is used in transporting and reduce losses. processing ore, separating out metals, Amplats focuses on several bulk-water disposing of mineral residue, and cooling and municipal water initiatives to improve smelters. We are consuming less water in the use of treated sewerage water for these processes as our water-recycling mining, while enabling potable water performance improves. We recycle over supplies in regions where we operate. 50% of water at our mining operations. Our Rustenburg and Polokwane We expect this fi gure to improve as we benefi ciation plants and smelters use validate water data against ICMM potable water from a third-party supplier. defi nitions and apply more accurate Der Brochen, Mototolo and Twickenham accounting water balances. use raw water from a third-party supplier. Each operation has set a potable water- Unki in Zimbabwe withdraws surface reduction target for 2020. These are water. expressed as an absolute reduction in Some of our operations use potable water consumption by 2020 against forecasts of from external sources for processing. business-as-usual demand at individual Progressive reductions in potable water operations. We have already achieved our use will require developing and target to reduce abstraction of freshwater implementing projects to increase the use 20% by 2020, against a 2015 baseline. of treated sewerage water, technology to Water sources increase recycling and reuse of water or Our sites use water from different sources. increasing capacity of storage reservoirs Mogalakwena complex’s main source is and water treatment. treated municipal sewerage effl uent and The aggregate water intensity remains rainfall run-off. We are providing seed below target levels although, in certain funding for a municipal water, leak and months, some mining operations have pressure reduction initiative at Polokwane exceeded targeted use. Total water use, municipality. This project is a partnership and therefore water intensity, was below between SAInBev, Anglo American, the the 2019 target. municipality of Polokwane, Strategic Water Partners Network, and the National Business Initiative. Some 50% of the municipality’s potable water supplies are lost or not accounted for. Through this
Anglo American Platinum Limitedmitedted Environmental,Environmental, socialsocial andand govgovernanceerernance rreporteport 20120199 377
ENVIRONMENT
ENVIRONMENT CONTINUED
CLIMATE CHANGE AND ENERGY MANAGEMENT
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ ProgressPrP in implementing our { EnergyEnE use exceeded our 2019 AchieveAcchiehi the 30% reduction in energy renewable energy strategy, with target, resulting in energy intensity intensityint and GHG emissions by 2030 the large-scale solar photovoltaic also missing target. Aided by against 2016 baseline through: (PV) project at request-for-proposal effi ciency improvements, we are on { Business improvement projects phase track to meet our 2020 target (energy reduction and effi ciency { Work under way to develop fuel { Rising energy and new carbon tax in improvements) cell-powered large mining trucks, South Africa will increase capital and { Alternate/renewable energy (solar PV potentially transformational to the operating costs plant) hydrogen industry { Long-term security of reliable and { Technology development – smart adequate supply of electricity from power project (fuel cell-powered haul Eskom is a major risk for our trucks) South African operations { Diversify energy mix (greater reliance { Uncertainty on emerging carbon- on renewable or zero-carbon pricing policies and changing market alternatives) while delivering mining demands for PGMs community benefi ts { Support development of hydrogen economy, together with fuel cells for heavy-duty vehicles
Climate change presents a fundamental challenge in coming decades. In living our purpose to re-imagine mining to improve people’s lives, we must be part OUR RESPONSE TO CLIMATE CHANGE IS FIRMLY of the solution. This means demonstrating that climate change ENTRENCHED IN THE GROUP SUSTAINABILITY is fully integrated into our strategic- GOALS THAT INFORM OUR GHG REDUCTION planning processes, that we are fi nancially resilient to a range of AND ENERGY-INTENSITY REDUCTION TARGETS. climate scenarios and that our operations are resilient to the likelihood of extreme weather events. It also means ensuring our host communities are resilient to the physical risks. Optimising the value UNDERSTANDING OUR CLIMATE-RELATED RISKS of our portfolio includes improving Our business is exposed to a spectrum of risks from climate change, including physical, energy management and planning regulatory, market, cost or legal. Details are provided in our annual submission to CDP, for future energy sustainability. In the section C2.2c (www.cdproject.net). Our principal climate-related risk is the potential transition to a low-carbon economy, impact of climate change on security of water supply for our organisation and host the products we mine are critical to communities. Security of energy supply, rising energy prices and the new carbon tax enable associated technologies. in South Africa are also material risks for our operations.
38 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
MANAGEMENT APPROACH Two key processes guide how we manage To anticipate these impacts and formulate Our approach to climate change adheres climate-change risks, namely the strategic responses, we have developed to the Anglo American climate change operational risk management (ORM) scenarios for possible future worlds that policy and our specifi c strategy is aligned programme for operations, and investment represent combinations of a potential set with the group strategy in guiding us to development model (IDM) for projects. of outcomes. The ORM guides operations on how to carbon neutrality. Our aim is to attain the Our resilience to physical risks assess risk at each level of activity, with maximum economically sustainable energy The investment decisions we make today tools to identify priority unwanted events and carbon savings, both in our business on mine projects could be signifi cantly and the controls we need to put in place and in the use of our products, and to affected by weather variability associated and monitor to prevent those events. The build internal agility and resilience to with long-term climate change. We seek IDM process and evaluation criteria ensure climate change. Our efforts to reduce our to understand the physical implications of that climate-change risks and carbon emissions are important in a global climate change for our operations and opportunities are embedded in the environmental context, and will reduce our neighbouring communities, and implement investment design, including the exposure to emerging carbon policies adaptation response. (such as carbon tax) and increases in consideration for alternative low-carbon energy costs, while creating opportunities energy sourcing and the adaptation Our approach to adaptation includes in the markets for our products. required for extreme weather and building climate-change scenarios with the long-term climate change. best-available science using our operating Amplats aligns with the Anglo American models to identify vulnerability and We are committed to the transparent 2020 energy and carbon targets, and exposure. We also consider adaptation disclosure of climate-related risks and sustainability strategy 2030 climate- measures in new project stage-gate opportunities for our business, and have change stretch goals (reviewed below). evaluations. In working towards these targets, we are offi cially expressed support for, and aligned developing a more integrated approach with, the Task Force for Climate-related Climate change and extreme weather are to managing our social and environmental Financial Disclosures (TCFD) potential risks for our operations. We have climate-related risks, recognising the recommendations for voluntary reporting. worked with South Africa’s Council for importance of cross-disciplinary A summary of our current compliance with Scientifi c and Industrial Research (CSIR), collaboration for effective risk management TCFD recommendations is on page 154. a leading research body, to model the possible impacts of climate change and through integrated water, energy and Further disclosure on our climate-related extreme weather, and inform the design of carbon management. Anglo American’s practices appears in our integrated report mitigating controls. For example, increased climate-change policy articulates our and in our annual submission to CDP frequency of extreme rainfall will require commitment to fi ve principles: (www.cdproject.net). { Building internal agility and ensuring changes in monitoring, infrastructure resilience to climate change ENSURING RESILIENCE TO design and emergency preparedness. { Driving energy and carbon savings CLIMATE CHANGE Our aim was to understand the impact of changes in rainfall, water consumption, throughout our business Understanding how climate change may security of water supply and infrastructure. { Understanding and responding to the affect our operations and the key end carbon lifecycle risks and opportunities markets for our products is critical to our The model we jointly developed with the of our products strategic decisions and to give us CSIR is a state-of-the-art, high-resolution { Developing and implementing confi dence in the resilience of the sector climate model, with results used to inform collaborative solutions with our and our business. Scenarios help us the risk assessment and infrastructure stakeholders imagine how the world might develop in planning work by Anglo American’s water { Contributing our skills and knowledge to response to different assumed conditions. and environment teams. The analysis, developing responsible public policy. It is not possible to know exactly how which extends beyond 2050, is the fi rst Our risk-management approach enables climate change will evolve and what its such study on the African continent. us to identify and manage both risks and implications will be. However, for mining, The CSIR team looked at the PGM- opportunities, helping to ensure the we expect impacts in two broad areas: bearing Bushveld complex of north- resilience of our portfolio. Our quantitative { Physical: the potential impact on our eastern South Africa and the Great Dyke scenario analysis work, reviewed below, operations and neighbouring region of southern Zimbabwe. The data has reinforced this approach and is a key communities from fl oods, droughts and from the climate models will be used in input in our strategic-planning processes. other extreme weather events water-catchment models and site-water Amplats assesses and reviews climate- { Demand for mined products: regulatory balances. change risks monthly, with a formal risk and technological implications of the review conducted annually. transition to a low-carbon economy and how this might impact demand for different products.
Anglo American Platinum Limited Environmental, social and governance report 2019 39
ENVIRONMENT
ENVIRONMENT CONTINUED
Portfolio resilience Aligned with this approach, we have set In recent years, we have applied best- The transition to lower-carbon, climate- 2030 targets to improve energy effi ciency available technologies to underground resilient economies is expected to affect and reduce absolute GHG emissions by ventilation, fuel use and pumping water. demand for our products and these trends 30%, against a 2016 baseline. These Recent energy-effi ciency improvement are factored into our risk and opportunity stretch goals were informed by the South projects include mining excellence, grade assessments. In 2016, we undertook a African government submission to the sorting and concentrator throughput. In qualitative analysis of the climate-change 2015 Paris Agreement. In 2019, we have driving clean power for our mines, we aim signposts and indicators affecting PGM been completing technical reviews to to increase the contribution of renewables demand to 2035. In 2018, we extended identify priority energy and carbon- in our energy mix to a minimum of 40%. this work and developed scenarios for reduction options at our major operations. Our current focus is on developing a possible future worlds that represent Operational site-specifi c targets have large-scale (75MW or megawatt) solar combinations of a potential set of been cascaded and monthly progress per photovoltaic (PV) plant to power the outcomes from physical impacts on our site is reported. Mogalakwena complex. Technology operations and neighbouring communities, Amplats forms part of the Anglo American development projects include hydrogen and demand for our mined products. 2020 GHG target, with a stretch replacement for diesel trucks, coarse Demand for PGMs is forecast to increase performance included in the Anglo particle fl otation, and bulk sorting over time, given the ongoing trend to American 2017 long-term incentive plan (reviewed below). We also continue to cleaner-emission vehicles under more (LTIP). Our CEO’s scorecard includes benefi t from tax incentives in South Africa stringent global emissions legislation. performance on energy and carbon. for demonstrating measurable energy Increasing demand by the automotive Amplats general managers are monetarily savings. We have introduced emission- industry is likely to be augmented by rewarded for achieving operational-level related supplier authorisation criteria in our growing opportunities for emerging energy-reduction targets. Going forward, responsible sourcing standard. applications, including hybrid and we aim to incentivise individuals based on We are on track to achieve our 2020 hydrogen fuel cell electric vehicles, while their team’s performance against climate, targets. Continued work on operational emerging countries such as India offer energy and water targets. This will productivity and energy effi ciency the potential of developing, from a contribute to the whole workforce being sustained our steady decline in levels of relatively low base, into signifi cant platinum incentivised to meet our GHG targets. GHG emissions generated and energy jewellery markets. Our progress in driving energy and carbon consumption. We are well positioned to proactively savings throughout our business has been Our total reported annual GHG emissions stimulate demand for platinum, including underpinned by our energy and carbon- were 4.4 million tonnes CO e in 2019. This through targeted campaigns in emerging management (ECO2MAN) programme, 2 was marginally higher than the 4.10 million jewellery markets; creating new investment which we have been embedding across tonnes CO e in 2018, due to the inclusion demand for the metal as a store of value; the group for several years. The 2 of Mototolo Mine (acquired in November and supporting the development of PGM programme centres on identifying and 2018) and Unki smelter (fi rst year of full technologies that are expected to drive implementing projects to reduce energy production), collectively adding 0.3 million industrial demand. This includes investing use and GHG emissions, and achieve tonnes CO e. in primary research and development; site-level targets. The performance against 2 investing in early stage companies our 2020 energy and GHG targets (see Over the same period, our total energy commercialising PGM technologies; and below) requires a reduction against use was 20.08 million GJ, up from working to enable a favourable policy projected business-as-usual (BAU) 20.01 million GJ in 2018. The increase is environment for these technologies. components. The targets consider variable also attributable to the inclusion of operating conditions, such as changes to Mototolo Mine and Unki smelter which REDUCING OUR FOOTPRINT mine plans, production levels, the depth used a combined 0.4 million GJ. An In re-imagining the future of mining, we and grade of orebodies and haul overview of our reduction targets and believe that mines will be carbon neutral distances, as well as acquisitions or progress against these is provided in the and we have begun detailed work to disposals. tables and graphs overleaf. develop a pathway and timeframe to Each operational site is tracked on its carbon neutrality, based on: We are actively managing our use of monthly energy consumption and CO e { Radically reducing energy consumption 2 energy and GHG emission at our GHG emissions. These are reported through FutureSmart Mining methods Zimbabwean operations. As the smelter against targets to meet annual and and technology adoption at Unki complex has been completed, we longer-term energy and carbon-intensity { Switching to low-carbon energy are measuring GHG impacts and actively reductions. We continue to implement sourcing, increasing renewables in our engaging with the Zimbabwean site-specifi c business improvement energy mix. government on the environmental impacts projects as part of ECO2MAN. of the facility.
40 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Energy challenges TARGETS AND PERFORMANCE Our energy challenges include security of Our energy and GHG reduction targets for 2030 are summarised below. supply and cost escalations, as well as innovating to reduce our GHG emissions. With about 70% of our energy mix coming ENERGY CONSUMPTION from electricity provided by the national Target Target Target 2018: 2019: 2020 power utility, Eskom, which is essentially 25 10,000 24.6 19.29 20.53 Target coal-based, 88% of the 4.4 million of 20 21.5
20.1 8,000
20.0 2030 carbon emissions we emit is an indirect eq 2 consequence of this dependency. 15 5,579 6,000 4,612 4,436 4,118 30% Both South Africa and Zimbabwe face a 10 improvement 4,000 in energy renewed electricity-security crisis. For kilotonnes CO 5 intensity 2,000 Eskom, this refl ects its new-build coal against 2016 Total energy used (million GJ) power plants not achieving design output, 0 baseline 0 high and often-unplanned maintenance 2016 2017 2018 2019 2020 2030 costs of its ageing fl eet and higher-than- Total energy used (million GJ) Total CO2 equivalent emissions (Kt CO2eq) budgeted coal costs. Our operations monitor the situation constantly and have emergency preparedness plans in place, including protocols to minimise the impact ENERGY CONSUMPTION INTENSITY of sustained unplanned power-station Target Target 2018: 2019: 1.0 outages and load-curtailment requests 0.83 0.81 Target from Eskom. Refer to the CEO’s review in 0.82 2020
0.8 0.80 0.79 our integrated report for details. 0.66 Target 0.6 2030 The response to our energy challenges
30% eq/tonnes milled 2 hinges on reducing our energy intensity 0.4 improvement in energy and changing the energy mix to lower- GJ/tonnes milled 0.18 0.18 0.16 0.2 0.15 intensity carbon emissions, reviewed in this section. against 2016 Tonnes CO 0.0 baseline 2016 2017 2018 2019 2020 2030
Energy intensity/tons milled CO2 intensity/tons milled
ENERGY INTENSITY (PGM PRODUCTION) (TJ/koz)
8.00
6.24 5.28 5.31 6.00 4.65 4.44 4.11 4.00
2.00
0 2014 2015 2016 2017 2018 2019
Anglo American Platinum Limited Environmental, social and governance report 2019 41
ENVIRONMENT
ENVIRONMENT CONTINUED
ALTERNATIVE ENERGY – DEMONSTRATING LEADERSHIP
RENEWABLE ENERGY PROJECTS Amplats is implementing an alternate (renewable) energy strategy to transition to sustainable energy sources that reduce carbon emissions and provide predictable cost and energy effi ciency. This strategy promotes opportunities to collaborate with our communities in realising mutually benefi cial opportunities, and supports the development of new markets for PGMs. In switching to low-carbon energy sources, we are considering alternatives for electricity and diesel. Last year, we assessed current and anticipated renewable-energy and energy-storage technologies and expected longer- term developments. At present, the most suitable technology delivering the greatest impact is solar photovoltaic (PV). Amplats is well-placed to benefi t from the successful development of the solar energy industry. A large- scale solar PV plant is being studied for installation at Mogalakwena and, if successful, the technology will be rolled out at our other operational complexes. In supporting the development of hydrogen and fuel cells, we are working to make hydrogen (H2) a key part of decarbonising and powering our own operations. We have been developing fuel cell-powered underground mining equipment for a number of years. Our current fl agship project is to pilot a ‘green’ hydrogen-fuelled, platinum-bearing fuel cell truck at Mogalakwena Mine (reviewed below). This supports South Africa’s opportunity to create a new market in the hydrogen and fuel cell economy. Recent pronouncements by government on energy regulations have been encouraging. Firstly, the DMRE minister announced at the mining indaba in February 2020 that self-generation would be enabled by gazetting a revised schedule 2 of the Electricity Regulation Act following concurrence with the National Energy Regulator of South Africa (Nersa). Minister Mantashe also noted that, depending on the circumstances, the generation plant may only require registration and not licensing. Secondly, in his state of the nation address, President Ramaphosa stated that Nersa will ensure that all applications by commercial and industrial users to produce electricity for own use above 1MW will be processed within the prescribed 120 days, and that there is now no limit to installed capacity above 1MW. We have engaged with the DMRE and are now preparing applications for environmental authorisation and water-use licences, among other long-lead permit approvals. While we fi nalise these applications, we continue to engage with relevant departments and Nersa.
Solar PV projects lease rentals, job creation and skills Hydrogen fuel cell-powered large A project to develop a large-scale development and local enterprise (small, mining trucks (75MW) solar PV facility to supply medium and micro-enterprises or SMME) Using fuel cells in large mining trucks is power to our Mogalakwena complex is engagement. estimated to potentially reduce the level progressing well. The project study was of CO e emitted by 36% and reduce The solar PV plant would cater for 21% of 2 approved in 2016 and we have continuous noise pollution, with the the mine’s annual electricity consumption completed the prefeasibility phase, added benefi t of lower energy intensity (an average of 167GWh per annum versus which includes the technical, compared to diesel. We have partnered its total annual energy requirement of commercial, fi nancial and social with global energy company, Engie, some 777GWh.) The plant design includes aspects. We have progressed to the which is developing the hydrogen the option to scale up to 120MW and then key activities of the application process generation, storage and dispensing 340MW. The longer-term aim is to use for a generating licence, site selection, system, while Anglo American is electricity from solar PV to generate green compiling developer agreements and developing the world’s fi rst hydrogen- H2 for use as fuel in fuel cell haul trucks. the initial fatal-fl aws assessment as the powered fuel cell 800kW mine haul truck fi rst step towards environmental At our Unki Mine in Zimbabwe, in early (using some 130g of platinum). The aim authorisation. The shortlisted bidders 2019, we commissioned the erection of a is to modify vehicles by replacing diesel are currently preparing proposals for demonstration pilot solar PV plant, which with hydrogen tanks and replacing submission in the fi rst quarter of 2020. was used to determine solar irradiation engines with hydrogen fuel cells and pattern and trends. The electricity battery packs. A prototype hydrogen- The project will include host community powered truck is expected in 2020, after generated from this facility powers the participation and benefi t options, which a testing and validation phase will offi ce block at Unki. including community ownership, land be conducted at Mogalakwena Mine before the project is scaled up.
42 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Solar power at the mining site will be Supporting growth in the hydrogen USD100 million each to the endeavour. used to produce green hydrogen for use (H2) and fuel cell economy AP Ventures will continue with the as fuel instead of diesel. The We continue to invest in developing the original intention of the PGM investment combination of a hydrogen fuel cell hydrogen economy through our programme, investing in high-growth powered by solar-generated green H2 membership of the Hydrogen Council and companies developing patentable could reduce current levels of CO2e the spin-off of AP Ventures, which targets technologies that use PGMs to address emitted by 50% (scope 1 and 2) and growth of early stage hydrogen enablers. some of society’s biggest challenges. could be applied across Anglo Partnering with the South African state By December 2019, AP Ventures had American’s fl eet of 130 haul trucks in pension fund manager, Public Investment secured fi ve limited partners, further South Africa. Corporation (PIC), the parties committed endorsing its mandate.
SOURCE OF ENERGY BACKBONE ENERGY SYSTEM END USES Pt
Pt Pd Platinum or palladium Pt catalyst in FCEVs catalyst/technology present 4. Fuel cell electric vehicles Pt (FCEVs) can decarbonise light and heavy-duty transport
5. Decarbonise industry Pt catalyst in LOHC energy use. Examples include tech using renewable H2 in petrochemical refi ning Pt 2. Distribute energy across Pd sectors and regions Pt in petrochemical catalysts Electrolyser Pt 6. Serve as feedstock using
captured carbon. CO + H2 creates syngas which is a basic building block for a multitude of chemical products Pt/Pd catalyst for Pt catalyst in electrolysers stationary fuel Pt catalyst in stationary Pt cells and LOHC fuel cells 1. Enable large-scale, tech for storage effi cient, renewable 7. Stationary fuel cells can FC chip energy integration. help decarbonise building Renewable hydrogen can 3. Act as a buffer to increase system resilience. heating Ru be stored indefi nitely H2 energy density enables bulk energy storage
Hydrogen fuel cell electric vehicles world’s future transport energy mix. FCEVs are expected to account for Fuel cell electric vehicles (FCEVs) offer a Crucial to this are developments in China, 500,000 ounces of PGMs, mainly zero-emissions alternative to internal the world’s largest automotive market, platinum – as these ‘new’ uses for combustion engine (ICE) vehicles, where the government has set a 2020 PGMs start to take market share in the without the need for consumers to target of having 2 million new electric automotive segment as the share of change their behaviour. FCEVs – which vehicles and hydrogen-powered vehicles traditional ICE vehicles (which use use platinum as the catalyst that turns on its roads, and 1 million FCEVs by 2030. PGMs in their autocatalyst systems to hydrogen gas into electrical power – are This is positive news for our PGM scrub noxious gases) declines. expected to play a signifi cant part in the business. Between now and 2030,
Anglo American Platinum Limited Environmental, social and governance report 2019 43
ENVIRONMENT
ENVIRONMENT CONTINUED
REDUCING ENERGY Coarse particle recovery As part of Anglo American, we engage CONSUMPTION Coarse particle recovery technology allows in policy processes through the ICMM, In our quest to radically reduce energy us to coarsen grind size and separate as well as several local and international consumption, through process, equipment non-metal bearing material while forums. In South Africa, we participate and behavioural effi ciencies, we maintaining recoveries – reducing the in policy engagement processes through summarise examples of technological energy required to grind non-metal bearing our membership of the National Business advancements we are implementing and ore for fl otation. The technology allows Initiative, Business Unity South Africa and developing. coarse material to be rejected at an early the industry task team on climate change. stage, and to dry stack it on tailings We take a positive policy-advocacy stance Bulk sorting facilities, reducing water consumption to accelerate investment in developing and By capitalising on natural variations in up to 20%. It is currently being tested at commercialising both hydrogen and fuel orebodies, we can identify and reject Mogalakwena north concentrator. gangue (waste rock) between the crusher cell sectors. We have been instrumental in and the mills. This means we can reduce Electrohydraulic rock drills a number of initiatives, such as the global our energy intensity by over 10%, as less We have worked with suppliers to develop Hydrogen Council, of which we are a reject gangue is being processed in our electrohydraulic rock-drill technology to founding member. Also as member, we plants. replace old pneumatic rock drills in actively participate in the China-based underground mining. This has potential International Hydrogen and Fuel Cell Shock-break technology for a signifi cant improvement of energy Association, UK-based Hydrogen and Fuel Over 60% of the energy consumed at a effi ciency and productivity, eventually Cell Association as well as two USA-based mine is used to crush ore to a particle size eliminating compressed air as an ineffi cient associations. Each organisation provides a suitable to liberate the minerals. To tackle driving force. platform to engage relevant industry and this, we have developed a new method for government partners. Key events this year Energy recovery crushing ore that uses 30% to 50% less included our role as key sponsor and Our Waterval smelter has a clean, energy than conventional mills. In August co-organiser of the annual international sustainable and reliable source of energy 2018, we began testing our full-scale hydrogen fuel cell vehicle congress and by generating electricity from waste heat demonstration unit in South Africa to roadshow in China. confi rm energy savings were as expected, recovered from the converting process. and to demonstrate wear characteristics The plant has an installed capacity of In South Africa, our operating sites comply of components in the demonstration unit. 5.0MW of which 4.3MW is available to with requirements under national GHG In 2019. the grid, reducing our capacity bought emission-reporting regulations and the from Eskom. carbon tax introduced in June 2019. While In 2019, we installed a second pilot unit at certain policy and technical aspects a concentrating site (Baobab) to augment PUBLIC POLICY AND remain outstanding, we are evaluating and accelerate our learning. Development ENGAGEMENT ON CLIMATE further opportunities to limit our exposure on wearing materials (hammers) to ensure CHANGE through both reduced energy use and durability is still in progress given the Anglo American’s formal position on GHG emissions, and opportunities to internal hardness of PGM-bearing ore. climate change is expressed in the group source carbon-offset credits. The environmental licence has delayed climate change policy, group position development of this technology, but is now statement on climate change and the in place. ICMM statement on climate change.
44 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Case study: AMPLATS CARBON TAX reduce the effective rate to R48 per tonne are evaluating options to source
IMPACT of CO2. The fi rst levy payable to the South cost-effective carbon credits. In South Africa, a carbon tax came into African Revenue Service (SARS) is due on This presents opportunities for our effect on 1 June 2019. The carbon tax 30 July 2020. South African operations to mitigate risk (reduce our carbon tax liability) but and related measures are designed to We have assessed the potential carbon also to potentially generate an enable South Africa to meet its targets tax liability for our business and included additional income stream. under the Paris Agreement, which carbon pricing in our budget guidance comes into effect in 2020. The tax will and project evaluations. The estimated Amplats’ position on carbon tax is be phased in, with the fi rst phase to the exposure to carbon tax, with the launch of consistent with the Minerals Council end of 2022 and the second phase the scheme for 2020, is R17 million in South Africa, and we will continue to from 2023 to 2030. The design of the 2019. This assumes the basic and some infl uence and provide input on this tax carbon tax provides for signifi cant additional allowances. Given uncertainty and the update of subsequent phases; tax-free emission allowances of 60% to on allowances, the liability ranges from and its impact on business. 95% for the fi rst phase. To ease the R11 million to R29 million for 2020. potential adverse impacts on energy- Electricity use accounts for 87% of our intensive sectors like mining, in the fi rst We continue to assess our approach to exposure to carbon tax cost impact phase there will be no impact on the mitigating our exposure, as we progress from 2023. The Mogalakwena 75MW price of electricity. The fi rst phase will towards our climate-change stretch goals. solar PV project under development will apply a tax rate of R120 per tonne of The South African carbon tax legislation reduce that operation’s demand on a carbon dioxide equivalent from fuel and allows for the use of domestic offset highly constrained power grid and coal use. Allowable tax breaks will credits against 10% of tax exposure. We reduce exposure to carbon tax
(150,000tCO2e/pa).
CARBON TAX PROJECTED ON 2018 EMISSIONS
5,000 350
300 4,000 250 e) 2 3,000 200 4,017 4,017 4,017 2,000 150 C tax (Rm)
GHG (ktCO 100 1,000 323 50 323 323 323 323 323 323 0 204 204 204 204 204 204 204 0
2019 2020 2021 2022 2023 2024 2025
Q Diesel (ktCO2e) Q Coal (ktCO2e) Q Electricity (ktCO2e) Carbon tax (Rm) O Incl solar PV
* Carbon tax rate escalates at CPI +2% pa.
* Base carbon tax of R120/tCO2e less applicable allowances. * Anticipated reduction in carbon tax in 2025 from R306 million to R295 million when solar PV plant is included.
Anglo American Platinum Limited Environmental, social and governance report 2019 45
ENVIRONMENT
ENVIRONMENT CONTINUED
BIODIVERSITY
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ StartedStS implementing the new { AlthoughAlA t operations have alien { AllAlA sites to comply with biodiversity Anglo American biodiversity vegetation control programmes, standard by end-2020 standard, ensuring progress the complete eradication of alien { Implement sustainable mining plan, towards 2020 targets species remains an ongoing supporting work to achieve stretch { Completed self-assessments challenge at most operations goals in biodiversity against the biodiversity standard { 2030 goal: deliver net positive impact at fi ve sites { Mogalakwena completed a net positive impact (NPI) baseline assessment { Ongoing enterprising initiatives include species studies in our conservation areas, community training in sustainable land practices and environmental awareness training for youth
In line with our purpose of re-imagining mining to improve people’s lives, a tenet of our approach to sustainability is to contribute positively to biodiversity. Our planet serves a variety of life forms, and biodiversity is important because it supports the production of our ecosystem and every living species in it. To reduce our risk exposure, ensure access to land and increase opportunities in biodiversity and ecosystem services, we need to understand how our projects, operations and supply chains affect, and depend on, the environment around them.
Our biodiversity commitment OUR MANAGEMENT with the biodiversity standard Anglo American has committed to leaving APPROACH { Ensure all operations are monitoring and a legacy where the biodiversity on land In 2019, all our sites started implementing evaluating the state of biodiversity and where we have operations is left in a better the new Anglo American biodiversity its response to mitigating actions to state than it was before the impact of our standard, approved and introduced in reduce residual impacts operations – achieving net positive impact late-2018. This standard and our { Build a foundation of monitoring and (NPI) by implementing the mitigation sustainable mining plan seek to ensure evaluating progress towards NPI hierarchy – avoid, minimise, rehabilitate/ that, by 2030, all our sites demonstrate { Build operational biodiversity capacity restore, compensate or offset – and that they are on track to deliver NPI at (dedicated resources to deliver on investing in biodiversity stewardship. closure. commitments) { Develop and monitor site-specifi c Biodiversity is a complex interaction The standard is supported by a indicators to track progress between species and habitats. The NPI biodiversity guideline for implementation, { Formalise partnerships and commitment applies to signifi cant and outlines a systematic approach to collaborations aligned with planned, biodiversity features that are impacted by identify biodiversity features, set targets existing regional and national landscape activities. These can include threatened for signifi cant biodiversity features, identify initiatives. species, natural habitats, features actions to meet those targets, and track supporting important ecological processes progress to achieve NPI through To assess and determine the level of and/or ecosystem services that are monitoring programmes. biodiversity on the land where we have essential to the wellbeing of benefi ciaries. operations and the potential impacts of Some of our operations are in areas of Requirements to be met by the end of our activities, we have introduced the higher biodiversity value, increasing 2020 include: biodiversity overlay assessment tool our responsibility to contribute to { Ensure all sites are meeting compliance application and requirement to complete biodiversity conservation.
46 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
a biodiversity value assessment. Mogalakwena has been making a The impact of alien invasive plant species { Biodiversity value assessments: used to signifi cant contribution to the is a key risk to biodiversity. All our identify potential signifi cant biodiversity environmental education of local youth operations with natural landscapes features (biodiversity, ecosystem since 2014. For fi ve years, the incubator (Whiskey Creek, Mototolo, Der Brochen, services and conservation areas) that has supported four local schools on the Mogalakwena and Twickenham) might have impacts that require Eco-Schools programme, part of an implement an alien vegetation control applying the mitigation hierarchy and acclaimed international programme programme. The removal of alien species setting NPI targets. All sites are required implemented in South Africa by the Wildlife is often done by our employees but also to complete these assessments by the and Environment Society of South Africa through community businesses, often end of 2020 (Wessa). The programme supports established by the mines. Removing these { Biodiversity overlay assessment tool: environmental learning in the classroom, species signifi cantly benefi ts the protection used to identify and map where promoting awareness and action on social of natural fauna and fl ora as well as operations and properties overlap with, and environmental sustainability. In 2015, wetland. At Mogalakwena, we researched or are adjacent to, UNESCO world Mogalakwena developed the concept of the most effective eradication method for heritage sites, core areas and buffer eco-clubs to support the many schools the aggressive species Tecoma sans. zones, legally designated protected that faced challenges in meeting Eco- To date, over 30,000 plants have been areas and known key biodiversity areas. Schools’ expectations in delivering eradicated at the mine. The approach will The tool helps identify potential year-end portfolios. Launched in 2016, be replicated at our other operations. high-level biodiversity risks and liabilities eco-clubs promote opportunities for To mitigate some of these activities, we but also, importantly, biodiversity learners to be enterprising and creative in support the annual Arbor Week in South opportunities for an operation. As a developing initiatives that help address Africa, with year-round tree planting across member of the ICMM, we are environmental challenges in their school our operations and neighbouring committed to abstaining from activities or community, while increasing communities. in protected areas and areas of environmental awareness in schools. At our Whiskey Creek site, situated in importance in terms of biodiversity. Eco-clubs now has some 20 dedicated Lydenburg montane grasslands, we have learners from 14 schools. In 2019, the Using the tools and biodiversity guideline, conducted a biodiversity stewardship Ditholwana Tsa Rena Development Trust all operations can follow the mitigation assessment with the local conservation became a new funder for eco-clubs over hierarchy and document a list of actions authority. The aim is to enter into a the review period and 2020, with a total taken to avoid, minimise and restore voluntary agreement to protect and investment of R14 million. Previous funding impacts to signifi cant biodiversity features manage the site as a biodiversity priority came from Otraco, a large supplier to across the mining lifecycle. This rigorous area. This stewardship agreement will Mogalakwena Mine, which donated application of the hierarchy conforms support conservation and sustainable R1 million over the past fi ve years to the to global best practice in biodiversity resource use. It also provides long-term incubator’s community and youth training management and is communicated security for Whiskey Creek and helps meet programme. Mogalakwena also delivers to stakeholders. national targets in the Protected Areas Act. an inspiring weekend course on Implementing the biodiversity biodiversity and sustainable development technical standard: progress in 2019 for children in local villages. The initiative In 2019, Mogalakwena, Twickenham, is reviewed overleaf. Mototolo/Der Brochen, Amandelbult and Mogalakwena is developing a better Unki completed self-assessments against understanding of the diversity of species the requirements of the standard. inhabiting its offset area (Mooihoek and Mogalakwena completed an NPI baseline Groenfontein farms). Over the last two assessment to inform the development of years, the mine has conducted two a site-specifi c NPI roadmap. surveys of small mammals (mice, shrews, OUR PRINCIPAL OPERATIONAL gerbils, etc) which identifi ed 10 species, INITIATIVES and two studies this year of bats, undertaken with the Bat Interest Group, Mogalakwena has an incubator support which identifi ed nine species. A four-day programme on its Groenfontein farm. This study identifi ed 165 bird species but we is a long-term community investment believe there may be close to 200 species. designed to promote the development of The data collected provides insight on community cooperatives and SMEs in the population numbers and the health of farming, food, land stewardship and those populations. This can be used to environmental business areas. The ensure the protection of endangered incubator includes a centre that provides species and to inform urgent conservation environmental training for community and management decisions. Further members of all ages in sustainable species studies are envisaged. land-use practices, funded by the mine. Whiskey Creek.
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ENVIRONMENT
ENVIRONMENT CONTINUED
Case studies EDUCATING YOUTH ON 12 attend each course, along with one or Rare bat species identifi ed at BIODIVERSITY two teachers from the school. About six Mogalakwena Mogalakwena plays a leading and courses are held each year and, to date, The bat studies we undertook this year critical role in promoting awareness 618 learners have participated. on Mogalakwena’s properties recorded and education on biodiversity and the presence of the little free-tailed bat sustainable development among youth and the Botswana long-eared bat, in its local communities. Since 2014, which are especially signifi cant species the operation has been delivering a – the former because of its distribution weekend course at its Groenfontein range extension of about 150km and environmental training centre for the latter due to its rarity (there are very schoolchildren from nearby villages. few records for the entire country which The course is linked to the Eco- makes the mine’s properties an Schools and eco-clubs programme important site for this species). (reviewed on page 47) and aims to inspire an understanding and appreciation for biodiversity through a combination of learning and hands-on experiences. Topics include identifying and dealing with snakes and scorpions, learning about small mammals, the role of trees in our environment, alien invasive plants, Mogalakwena Mine’s positive infl uence and involvement in communities, and learning about game and sustainable development. Activities included game ECO-SCHOOLS LEARNERS walks and educational games. NURTURE A VEGETABLE The sustainable development course is GARDEN delivered by Riaan van Zyl, Tlakana Primary in the village Ga-Tshaba environmental offi cer, who is is one of the participating Eco-Schools responsible for driving Mogalakwena’s we support. This year, Eco-Schools enterprising biodiversity initiatives. donated seeds and the learners and Riaan is passionate about sharing his teachers have taken ownership of knowledge and love for the African developing and nurturing a thriving bush with children in local vegetable garden that improves the school communities and instilling in them a environment and resources. sense of appreciation and responsibility for the environment and ecology. Feedback from the children is always extremely positive and there is great demand for the courses. An average of 20 children (gender balanced) between grades 8 and
48 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
CONSERVATION AND SOCIO- identifying and supporting opportunities to linking community-owned land with mining ECONOMIC DEVELOPMENT generate socio-economic and concessions to create locally managed We are adopting a regional approach to environmental benefi ts in the province. biodiversity conservation areas that identify, formalise and support strategic This work has included biodiversity-related contribute to the local economy through partnerships at a local level to conserve economic and agricultural initiatives that wildlife ranching and tourism. The and protect threatened and endemic optimise the use of available land on a programme is being developed in line species. The objective is to establish a regional scale. This builds on the leading with national biodiversity strategies, framework with guiding principles and example at Mogalakwena’s farms conservation plans and provincial processes that apply across our (reviewed on page 47). development initiatives. operational footprint. As Amplats owns and manages large In Limpopo, the socio-economic tracts of land in South Africa, with only development (SED) platform was created around 20% actually used for mining and for multiple stakeholders to partner in related activities, opportunities include
MINERAL RESIDUE FACILITIES
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ DetailedDeD assessment of our tailings { AtA our Bokoni JV, we identifi ed a { EnsureEnE full compliance with Anglo facilities at managed and non- material risk from eroded areas in the American mineral residue facilities managed JV operations (see our Rapholo riverbank and potential and water management structures’ website). No new major stability instability of tailings storage facilities. technical standard for all our tailings issues identifi ed We mitigated the risk by reinforcing dams and water-retaining dams, as the stability of the riverbank in critical well as waste-rock piles areas. We have also started { Continue to develop surface-fl ooding rehabilitation work on the tailings risk management plans facility at risk { Investing in new mineral-processing technologies that are more energy- and water-effi cient { Await approval of declassifi cation of slag at all three smelters; this will allow slag to be used for commercial and community projects
Mining and processing orebodies generates signifi cant quantities of mineral residue, which affects the land through establishing tailings dams and waste-rock piles, and may infl uence water quality if not managed effectively.
In recent years, catastrophic tailings dam appropriate advanced technologies, and if the integrity of a mine’s TSF fails, the breaches in the mining industry, such as at to work together to build greater levels consequences can be calamitous, both in Vale in Brazil in January 2019, have of trust with all our stakeholders. loss of life and for the local environment, heightened public scrutiny of how tailings which can take decades to recover from and the storage of mineral residue are MANAGING TAILINGS AND the sudden release of contaminated water managed. As an industry, there is a clear STORING MINERAL RESIDUE and slurry. The root cause of an incident ethical imperative to do everything possible Amplats is committed to demonstrating may include a variety of factors, including to ensure tailings facilities are managed to leadership in mitigating tailings storage overtopping, internal erosion, slope or the highest standards of safety, using facility (TSF) risk through good foundation instability, seismic event, governance. Without effective controls, penstock failure or human error.
Anglo American Platinum Limited Environmental, social and governance report 2019 49
ENVIRONMENT
ENVIRONMENT CONTINUED
Detailed assessment of our tailings Effective risk management monitoring and support. Risk assessments storage facilities TSFs are classifi ed as a critical risk and are are conducted at all stages of mineral A TSF is a highly engineered structure subject to a rigorous risk-management residue facility management. A dedicated comprising one or more tailings dams, programme. In 2014, Anglo American team of group engineering specialists with embankments designed to upgraded its mineral residue facilities provides strategic direction and technical permanently store the tailings. Amplats standard to align with best practice. The support. A review of tailings facilities at manages six active TSFs: fi ve in Limpopo, mandatory standard is implemented at all non-managed operations is done on a South Africa, and one in the Midlands managed operations. Requirements rotational basis. province of Zimbabwe. We also manage include a self-assessment at each site to Various forms of remote and other three slag dumps: two in Limpopo, and demonstrate improved compliance to monitoring technology are used to one in Zimbabwe. the standard. measure TSF performance, including All our managed tailings dams have been This year, we completed self-assessments ground movement and seepage. Local constructed using the upstream method, against the standard, showing compliance site-based operational personnel conduct except Blinkwater dam at Mogalakwena, levels of 84% to 97% at our facilities. daily/weekly/fortnightly inspections. An which uses a downstream method of Typical non-compliances related to engineer of record conducts formal dam construction, and dam 1 at Unki Mine, shortcomings in master deposition plans, safety reviews at all managed sites on a which uses a hybrid downstream/ engineering and construction documents, quarterly, semi-annual or annual basis. upstream method. Upstream tailings dams water balances, operation, maintenance A technical review panel conducts an are generally considered an appropriate and surveillance manual, and emergency independent review of critical facilities at design for facilities in dry and seismically response and preparedness plans. Each least once per year. stable regions with fl at topography, operation identifi ed and addressed priority Safety assessments of our mineral residue including our TSFs in South Africa and issues; only low-priority items are yet to be facilities are undertaken at least annually Zimbabwe. There are eight TSFs (two completed. and trigger action response plans are in on care and maintenance) at our non- As required by the standard, all TSFs have place to guide an effective response to managed JVs where we have an a consequence classifi cation of structure different potential scenarios. Communities ownership interest in North West and (CCS) rating based on the potential hazard in inundation areas at all our mining and Limpopo, South Africa. evaluation. Classifi cation criteria include process operations have been included in In response to requests from a number of public and employee safety; employee emergency response plans. A process global institutional investors, during the health; environmental; infrastructure; was followed in 2019 where community year Amplats published the details on fi nancial; social and reputational leaders were identifi ed, workshops held, all these facilities on its website. As part of consequences of incidents. In turn, the and training provided. An emergency with global efforts to improve transparency on classifi cations determine design criteria; community engagement was held on TSFs, this detailed information frequency of monitoring and inspection; 25 November at Mogalakwena. Further underscores our confi dence in the integrity assignment of appropriately skilled and testing at other areas is scheduled of Amplats’ managed TSFs which are resourced people; governance structures for 2020. subject to the highest global safety and to manage, monitor, audit and review All our TSFs in South Africa are operated stewardship standards. We also received facilities. in line with the national mandatory code assurances from the operators of Major or high CCS facilities have a of practice on mine residue deposits as non-managed JV facilities on the safety competent person in charge and an stipulated by the DMRE. In 2019, we rolled of their TSFs. external engineer of record, providing out the standard for our waste-rock piles continuous technical management from and started developing surface-fl ooding initial design and construction to risk management plans.
50 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
TSF safety management in critical areas, with no weaknesses identifi ed after heavy rains. We have also started rehabilitation work for the south- western slope of the tailings facility at risk. Project/operational review best Group practice and risk management support This project is currently in the procurement phase to select a contractor.
Technical assurance – critical Group controls review LEADING PRACTICES We are implementing leading practices in s all aspects of tailings and dam ialist Annual technical pec External l s review panel management – from concept, design, ca ce ni ran h ssu engineering, maintenance and surveillance ec a t k nel p is pa u l r t to closure and post-closure. Examples o a en echnical Routine site visit/governance/ r n d it t sta G r n un n BU e e s da of innovations at our operations include: t p s rd audits/support In e e d in f rec e n s r o ord x { Co-disposal is in place at the Blinkwater I u ee p B in e g r n t TSF where the wall is from waste rock E and tailings are deposited inside the Operation facility, with an interface layer between Quarterly annual External inspections waste rock and tailings { At Mogalakwena, we are exploring water-effi cient deposition methods, Routine inspections Operation by fi eld staff including the potential for depositing tailings as paste or fi ltered cake { At Mototolo concentrator, a fi lter press processes coarse and fi ne tailings streams to an acceptable size for Responding to high potential risks and reinforcing levels of safety. The bedding and over-liner material in the We have not had any signifi cant tailings Vaalkop TSF is also being buttressed as new Mareesburg TSF. This will protect management-related incidents since 2013, a precautionary measure after an the synthetic liner that serves as a when we recorded a tailings spillage (level assessment. pollution-control measure to prevent 3) at Mogalakwena’s Blinkwater TSF. This year, at our Bokoni JV (currently under seepage into groundwater. At this In 2017, we identifi ed a potential stability care and maintenance), we identifi ed a facility, we have installed fi bre-optic risk at the Helena TSF and took immediate material risk from eroded areas in the cable ‘near real-time’ monitoring remedial action by constructing a buttress Rapholo riverbank and potential instability technology to monitor and safeguard wall using waste rock to improve the of TSFs. We undertook urgent work to its integrity. Trigger action response stability of the facility, successfully restoring reinforce the stability of the riverbank plans will be set up for the different
Anglo American Platinum Limited Environmental, social and governance report 2019 51
ENVIRONMENT
ENVIRONMENT CONTINUED
aspects of the technology. Mototolo energy use reductions for each tonne of TAILINGS (RESIDUE WASTE) also uses hydro-cyclones to deposit metal or mineral produced, as well as We aim to reduce our impacts on land by tailings at the Helena TSF smaller overall mine waste footprints. reusing mineral residue where possible. { We are using a new digital tablet Coarse particle recovery: a recovery For example, we used waste rock to application for safety inspections of method that uses a fl uidised bed to enable construct the containment dam at tailings facilities and water-retaining valuable minerals, with as little as 1% Mogalakwena. Some of the mine’s dams. This technology enables us to mineral surface exposure, to be separated waste-rock dumps are a source of better monitor defi ciencies and track from gangue (ore of no commercial value). low-grade PGMs which are remined, maintenance at these facilities, Energy savings can be realised but the crushed and reprocessed. The waste rock removing all paperwork related to dam water savings are even more signifi cant, is also processed into aggregates for inspections. The development and as a far greater proportion of water used in construction and road-building. Waste testing of a specifi c dashboard and processing can be more easily recovered rock at the Amandelbult and Twickenham inspection application is advanced. The and recycled. This will also create a drier operations supports small-scale crushing dashboard will provide a comprehensive and more stable mineral residue deposit. projects that reduce their waste-rock inventory and updated risk tables for all footprints and decrease our closure containment facilities at our operations. Bulk sorting: leverages new sensor liability. technology that can, in real time, reject a Mineral processing technologies proportion of sub-economic material early Tailings are one of the major consequence We are trialling and implementing a in the processing sequence, creating waste types that mining companies number of step-change technologies that opportunities to increase plant throughput produce in terms of volume and potential we expect to signifi cantly decrease the and reduce the volume of waste material toxicity. Quantities accumulated in 2019 volume of waste material produced in to the TSF. Bulk sorting also delivers are shown on page 69. extracting and processing mineral ore. signifi cant reductions in water and energy These will also generate major water and intensity.
Shock-break: a new comminution device, which uses three stages of high-speed blades to reduce ore to the targeted size and expose mineral surfaces. In crushing and grinding rock, this technology can reduce energy consumption by over 30%. This method of comminution delivers a dry product and is a key enabler for dry separation processes, which remains our longer-term goal to achieve dry tailings.
Shock-break trials at Baobab concentrator, South Africa.
52 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
NON-MINERAL WASTE
HIGHLIGHTSLOL LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ OnO track to meet our goal of zero { SettingSeS targets for non-hazardous { AchieveAcA ZW2L (for all managed waste to landfi ll (ZW2L) by waste can be challenging as we operations) by December 2020 end-2020 rely heavily on improved sorting and become the fi rst South African { Partnership with specialist waste and recycling to reduce the non- mining company to do so company has enabled a step- recyclable portion directed to landfi ll { Shift towards lifecycle solutions, in change in diverting waste streams { Mototolo is challenged in identifying partnership with waste companies from landfi ll, with a 54% year-on- a sustainable solution to rubber and community-based initiatives year reduction waste and conveyor belts { Downsize all pre-levy tyres at { At PMR, offtake initiatives for { Some 2,600 pre-levy tyres still to be Mogalakwena before end-March gypsum and sodium chloride will downsized at Mogalakwena 2020, as regulated annually save over R2 million in { Limited waste-mitigation disposal costs opportunities with suppliers realised to date
We are on track towards our goal of achieving and sustaining zero hazardous and general waste to landfi ll by the end of 2020. Our approach demonstrates EACH OF OUR leadership in managing non-mineral waste streams to minimise effects on OPERATIONS IS human health and the environment, and embracing the concept of a circular economy where waste becomes a resource, in line with our purpose to HELD TO ACCOUNT re-imagine mining to improve people’s lives. FOR DELIVERING DELIVERING ZERO WASTE TO sorting and recycling. By the end of 2019, ON TARGETS IN LANDFILL – AN INCLUSIVE we reduced total waste sent to landfi ll to a THE ZERO WASTE APPROACH third of our 2016 levels, from 21,300t to Zero waste to landfi ll (ZW2L) is when none 4,116t. While some of this reduction was TO LANDFILL of the waste included in the ZW2L scope due to the divestment of Rustenburg and is sent to landfi ll. It means eliminating Union mines (which accounted for 17% of PLAN SO THAT, BY unnecessary wastage and waste total waste to landfi ll in 2016), it was DECEMBER 2020, generation, and ensuring methods are in largely the result of key projects and a place to eliminate any disposal to landfi lls renewed focus on operational waste- ALL HAZARDOUS through waste recovery, reuse and awareness campaigns, reuse and recycling, as well as alternative recycling. AND NON- technologies. Our approach ensures we Recognising that meeting the 2020 target HAZARDOUS WASTE comply with requirements under South required a step-change in our progress, Africa’s NEMA and Waste Act. in 2018 we appointed a waste specialist PREVIOUSLY SENT Since we committed to ZW2L by 2020 (for company to support our work over three TO LANDFILL WILL all managed operations) six years ago, we years (to 2021), and developed a 14-step have recorded a progressive shift in waste plan to deliver ZW2L by the end of 2020, BE ELIMINATED, management, supported by awareness outlined on page 54. campaigns and improved waste-stream REUSED, RECYCLED OR RECOVERED.
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ENVIRONMENT
ENVIRONMENT CONTINUED
Zero waste to landfi ll (non-mineral waste)
2020 Achieve ZW2L by December 2020 2020 and beyond 2018 Implement sustainable Step change target waste programme to and position maintain ZW2L 2013 Amplats for Commit to long-term ZW2L sustainability
Energy Prevention Minimisation recovery/product Avoid Packaging and distribution General and hazardous Reuse/recycling Disposal at landfi ll Value chain (Supply chain) (Operations) (technology solutions) (zero)
Undertake detailed 2019 PROGRESS mapping of all waste streams Categorise waste DONE streams in support of non-landfi ll alternatives DONE 1 T Set landfi ll AR 2 diversion targets STA ➧ for 2019 and 2020 DONE 3
Maintain Review management performance and go processes and 14 beyond ZW2L (>2021) procedures 4 TO BE INITIATED OUR DONE
Achieve ZW2L 13 JOURNEY Develop robust strategies to achieve ZW2L (Dec 2020) 5 and procedures to achieve TO BE ACHIEVED by 2020 and targets beyond DONE
12 Share best practice 6 and raise awareness Prioritise and implement waste avoidance and IN PROGRESS minimisation strategies 11 7 DONE Improve efforts to recycle, 10 reduce, reuse 8 Audit and review 9 waste management facilities IN PROGRESS Track waste IN PROGRESS disposal data Strengthen Engage employees to DONE supplier build a sustainable relationship culture IN PROGRESS IN PROGRESS
ZW2L Zero waste to landfi ll
54 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
The initial focus was to identify and to select a company waste hero from realising a key component of the circular quantify waste streams at each operation across our operations for their commitment economy. We are also exploring and fi nd solutions (reuse, reduce and to excellence in waste management. opportunities to develop cost-effective recycle) to mitigate or divert away from reuse and recycling business ventures with Our progress has depended on ensuring a landfi ll. Based on the assessments and community-based initiatives, as part of a mind-shift change, and the participation improved measuring of certain waste growing shift to lifecycle solutions. and cooperation of everyone across the streams, we redrafted our strategy, setting business, in valuing waste as a While the ZW2L strategy is premised on operation-specifi c strategies and targets commodity. By year end, waste to landfi ll a 2020 target, a defi ning measure of for 2019 and 2020. The strategy was totalled only 4,116t. success will be sustainably maintaining updated in September 2019 to incorporate specifi c identifi ed waste streams at zero. Mokopane’s core yard and Mototolo Mine. Our approach encompasses the entire We are working towards this by ensuring value chain, not only end-of-line Each site addressed immediate that all waste, by default, is turned into a production waste. Our supply chain is a opportunities for improvements, which resource and preventing suppliers from critical area for waste avoidance and helped them manage waste better and bringing any form of waste into our minimisation initiatives. We strive to achieve signifi cant reductions in both operations. Three key elements to our mitigate the levels of products we use volume and cost of management. We plan’s success are to: across our activities, particularly hazardous appointed waste champions to help audit { Reduce waste in an economically materials, and encourage all key suppliers and review waste management facilities sustainable way with a clear business to consider reuse and recycling monthly. To ensure the commitment of case opportunities and support our ZW2L general managers, the best-performing { Work with local communities to involve goals. We are investigating opportunities operations in reducing waste across the them in identifying environmental for them to apply the waste hierarchy and business unit are recognised and rewarded solutions prevent waste generation (in our quarterly. This year, we introduced our { Focus on non-mineral waste, where operations and projects), or take back waste hero award – a monthly competition there is the greatest potential to make and recycle waste that they bring in, a quick impact.
Case study: UNLOCKING VALUE IN A over-consumption and eliminate waste by Although the process of separating, CIRCULAR ECONOMY making the most of resources through collecting and disposing of waste at ZW2L acknowledges the potential value reuse and recycling. our operations incurs costs, there are substantial opportunities to generate of waste as a resource in downstream Circular-economy aspects are embedded revenue by recycling waste streams applications, and supports the concept in our business strategy. For example, like oil, paper, plastic, glass or steel. of unlocking value in a circular PGM recycling illustrates how the circular This revenue can fund substantial economy, or closed-loop system. As economy can materially impact markets. further investment in waste reduction an alternative to a linear economy, a Shifts in the market driven by the circular – such as baler machines, waste- circular economy is regenerative and economy are both a risk and opportunity sorting areas, and technology to restorative by design: durable goods for PGMs. Initiatives to improve effi ciencies convert waste into energy, further can be repaired (rather than replaced) are under way and our ZW2L and solar building the business case. and biological materials returned to the project are signifi cant contributors (see biosphere without being contaminated. case on page 42). It is a strategy that aims to diminish
FROM A LINEAR TO A CIRCULAR ECONOMY
Linear economy Reuse economy Circular economy
Raw materials Raw materials R aw materials Pr od u c g t Production Production i lin o yc n c e R Use Use
Non-recyclable waste Non-recyclable waste Use
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ENVIRONMENT
ENVIRONMENT CONTINUED
Platinum and the circular economy value chain Touching on a sample of initiatives we have under way at Platinum
Wasted resources Wasted capacity
Material and energy that cannot be Underutilised or unused products continually regenerated and assets Introduce renewable and bio-based materials, Manufacturing Logistics Increase sharing, co-owning, co-using, chemicals and energy resource pooling, etc.
Marketing Sourcing and sales Circular value chain Wasted embedded values Product use Components, material and energy not recovered at disposal Wasted embedded values Increase recycling, upcycling, component Reverse End of life logistics disposal harvesting and energy recovery Premature end of working life of products Lifecycle services for resell, maintain, repair, remanufacture, etc.
Hazardous waste management standard requires operations to design sump spill at an acid plant. These are Managing hazardous substances is strictly systems to reduce the potential for typically treated with lime before being regulated and controlled at our operations, exposure to hazardous materials. It does cleaned out of the sump and the lime mix and at the receiving-waste facilities, which not set explicit targets on reducing or is further treated so that it can be used as are regularly audited by external parties. substituting the use of hazardous cover/fi ll material (becoming a resource) at Hazardous waste can only be stockpiled materials. the Klinkerstene landfi ll facility. for up to 90 days and is not an alternative Hazardous waste, such as acids and At Mogalakwena, the bioremediation plant for sending it to landfi ll. chemicals, are primarily used where we rehabilitates soil affected by hydrocarbon This year, we started baseline have on-site laboratories. At RBMR, for spills and, at RBMR, an offtake of sodium assessments against the Anglo American example, used chemicals are retained in sulphate produced as a by-product is sold hazardous-materials management a closed system and absorbed in the into the market. PMR identifi ed offtakes technical standard, and have defi ned production cycle, ensuring that no liquid for gypsum and sodium chloride, which is minimum mandatory critical controls to be chemical waste is sent to landfi ll. sold as a by-product, diverting these implemented at each site to ensure fatal Chemical/acid waste is mostly produced streams from landfi ll with a cost saving risks are managed proactively. The when there are spillages, for example a of about R2.2 million per annum.
56 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
year we collected 27t of taphole clay (from to avoid further delays and communicate spillages while tapping), which accounted any challenges. In July 2019, Waste for 39% of hazardous waste sent to landfi ll Bureau (a division of the DEA) collected in 2018. In 2019, we found a solution to 413t of the mine’s shredded off-the-road avoid disposal to landfi ll by hardening, tyres that had been left onsite by the crushing and recycling the clay back into bureau’s predecessor, which went the process. bankrupt in 2017. To date, the mine has shredded 1,695t and has a further 2,592 Offsetting sodium chloride: In 2019, pre-levy tyres of all sizes to downsize. PMR introduced an offset agreement for sodium chloride to reduce waste to landfi ll. Wood chipping as compost: Since the contract was instituted in August Mogalakwena started a fi ve-year exotic 2019, 125t have been diverted from landfi ll vegetation-removal project in 2018. Yellow INNOVATIONS TO REDUCE and reused by a third party. bells (Tacoma stans) are felled, chipped and used as compost to improve the WASTE TO LANDFILL Air fi lter project: At the Mogalakwena quality of remediated soils and sludges. Key waste streams diverted: key waste remediation site, we collect all air fi lters streams at our operations that have been (used in trucks), cut them open with Selling sodium sulphate by-product: diverted to alternatives over the last two pneumatic shears and separate the Sodium sulphate is a by-product at years include: components. The metal and fi lter paper RBMR. Since 2017, we have improved the { Empty chemical bags and fi lters are sent for recycling. quality of the by-product and amended (majority at RBMR) – being used as an offtake contracts with customers to sell Shredding waste tyres for recycling: In alternative fuel source through the an additional 13,000t per annum, with 2019, Mogalakwena signed a contract refuse-derived fuel (RDF) facility savings of around R25 million to date, with a specialist company to downsize { Contaminated wooden pallets – being rather than disposing of the excess used tyres (pre-levy tyres) and generate used as an alternative fuel source in product as hazardous waste. shredded, high-quality rubber for reuse. the RDF facility A plant became operational on-site in Combustible low-grade material: PMR { Empty paint containers sent for January 2020 and is expected to produce produces a low-grade material stream that recovery and sold as scrap metal 350t to 400t of shreds each month using a is treated by an external party through { Used grease treated in a facility that machine that grinds the tyres into fi ne thermal decomposition to produce an ash mixes different grades of grease and oil crumbs and steel beading. Mogalakwena which is returned to PMR to recover in ideal ratios to achieve specifi ed aims to fulfi l the regulatory requirement to PGMs. This process eliminates disposal as calorifi c value to serve as a fuel source downsize all its pre-levy tyres by the end of hazardous waste. in the cement industry March 2020, and will engage with the DEA { Recycling fl uorescent tubes through a specialist company Measuring our progress { Reusing ceramic melting pots used in All our operations apply the ‘avoid, reduce, reuse and recycle’ waste-management laboratories by crushing and feeding hierarchy. Large non-mineral waste streams include tyres, oils and greases, rubble and into furnaces offi ce consumables. Waste streams are sorted on site and weighed when leaving the { Improved sorting and recycling of operation. We report hazardous and non-hazardous waste separately and against targets. domestic waste across the business Detailed monthly reports indicate the types and quantities of waste recycled, reused and unit. disposed. We track and report our monthly and year-to-date performance against targets Mine soil bioremediation: At our open-pit across our operations. Mogalakwena Mine, instead of disposing Since 2013, Amplats has reduced its total waste to landfi ll by 81%, from 22,120t to 4,116t of soil affected by hydrocarbon spills as in 2019. hazardous waste, we have a licensed site to treat the soil for reuse. We have TOTAL WASTE TO LANDFILL processed almost 5,000t of contaminated (kilotonnes) soil since the site was commissioned in 30 2017 (including 1,985t in 2019), achieving 22.12 21.33 25 substantial fi nancial savings and ensuring 18.11 18.86 that soil is reused on site and not disposed 20 12.79 Target of elsewhere. Due to the success of the 15 2019: Mogalakwena facility, the process is now 7.89 10 5.89 Target-end being implemented at other operations in 2020: the company, including the treatment of 5 3.59 Zero nearly 2,000t at one of our JV operations. 0 Clay recycling: At Polokwane smelter, last 2013 2014 2015 2016 2017 2018 2019 2020
Anglo American Platinum Limited Environmental, social and governance report 2019 57
ENVIRONMENT
ENVIRONMENT CONTINUED
2019 2019 2018 2018 2017 2017 000t target actual target actual target actual Non-hazardous waste to legal landfi ll 1.90 1.28* 3.03 2.30 3.8 3.6 Hazardous waste to legal landfi ll 3.99 2.31* 7.52 5.60 22.0 9.2 Total 5.89 3.59 10.55 7.89 25.8 12.79 * Excludes Mototolo Mine as it was not included in 2019 target as it only became part of Amplats in November 2018.
Waste collected for recycling (tons)* 2019 2018 2017 Waste paper 638 499 319 Glass 9.66 32.08 47.55 Steel 12,081 11,535 7,295 Plastic 468 359 324 Hazardous and non-hazardous waste reused/recycled 265,964 15,553 6,900 Used oil recycled to external companies# 812 731 65 Used grease recycled to external companies 13.5 25.4 2.9 * Excludes recycling of site-specifi c waste streams. # 0.881t/m3 density factor.
Waste paper Glass Steel Plastic (tons*) (tons*) (tons*) (tons*)
800 35 32.08 15,000 500 468 638 30 12,081 12,000 11,535 400 600 359 499 25 20 9,000 300 400 15 6,000 200 9.66 200 10 3,000 100 5
0 0 0 0 2018 2019 2018 2019 2018 2019 2018 2019
COMMUNITY INITIATIVES Last year, to increase awareness of how we manage waste responsibly in our business and in surrounding communities, we created a school art competition called Waste to wonderful art. Students from eight schools around each operation expressed their creativity by reusing waste to create pieces of art. Building on the success of this interactive awareness initiative, this year we undertook site-specifi c engagements around ZW2L and waste- related matters in our host communities. These engagements are highlighted and commended across the company. Twickenham is implementing a pilot project with its host communities to set up a central waste-collection and recycling hub. Community members will be encouraged to deliver Waste sorting at Groenfontein farm. recyclable materials to the hub and, in return, receive e-vouchers that can be used at various retail outlets to buy goods. The e-vouchers are a safe way to buy goods electronically and avoid the risks of carrying cash. If the project is successful, we will investigate introducing similar hubs in other community areas around our operations.
58 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
PRODUCT STEWARDSHIP
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ StrengtheningStS structures to { AfterAfA a non-compliance incident in { ContinueCoC to engage proactively with comply with evolving product- 2018, RBMR took steps to ensure stakeholders interested in the focused regulation that environmentally hazardous impacts and contribution of our { In managing hazardous materials, products are shipped in line with UN materials and the products we have defi ned minimum requirements. In 2019, we received manufactured from them mandatory critical controls for positive feedback from European { Implement a roadmap to ensure all each site to ensure fatal risks are Union authorities on new packaging our operations undergo third-party managed proactively and cargo-restraint solutions audits against recognised { Unki was the fi rst mine in the world designed for our products responsible mine-certifi cation to announce it will undergo systems by 2025 independent assurance against Initiative for Responsible Mining Assurance (IRMA) in December 2019
Producers have a shared responsibility for the environmental and social impacts of their products throughout their lifecycles. Value to society is maximised when we produce materials responsibly and then engage downstream to promote their benefi cial use.
Responsible stewardship is crucial for Comprehensive systems are in place to they are appropriately applied – for maintaining our reputation and ability to ensure ongoing compliance, establishing a example in the shipping codes that ensure market our products. Our approach continuous process of product testing, safe transport of our products. This is part focuses on ensuring responsible hazard assessment and communication of a programme of continuous learning production, meeting regulatory obligations, via safety-data sheets. Where products and development to ensure our sector and responding to increasing demand are deemed to be ‘dangerous goods’, the remains on top of emerging issues. from our customers for assurance that relevant packaging, labelling and Ethical value chains and the circular the minerals and metals they buy are consignment procedures are met – as economy produced responsibly. defi ned in the UN’s international maritime While originally the major focus of product dangerous goods code. Following a Meeting regulatory obligations stewardship was complying with non-compliance incident in 2018, an active The implementation of product-focused regulation, today leading companies are programme has been under way at RBMR regulation such as the UN’s globally emphasising how products impact the key to ensure that environmentally hazardous harmonised system of classifi cation and social and environmental challenges facing products are shipped in line with labelling of chemicals (GHS) is growing. society – including climate change – and UN requirements. In 2019, we received We comply by developing high-quality the need to decouple economic growth positive feedback from EU authorities on hazard data on our products and their from resource consumption. new packaging and cargo-restraint applications, and communicating these – solutions designed for our products. Here, we are looking beyond compliance either to customers via safety-data sheets, and engaging proactively with those who or to authorities where required (for We ensure that hazardous substance are interested in the impacts and example under the European Union’s management is strictly regulated and contribution of our materials and the (EU) registration, evaluation, authorisation controlled at our production sites. This products manufactured from them. To and restriction of chemicals (REACH) year, we started baseline assessments better understand this, in 2019, we took regulation). against the Anglo American hazardous- a deep-dive into our role in the circular materials management technical standard, In 2019, we ensured continued economy. While the concept means many and have defi ned minimum mandatory compliance with REACH should the UK things to many people, we explored it critical controls for each to ensure that leave the EU in a way that does not openly and agreed on three dimensions fatal risks are managed proactively. Our preserve the existing framework. We are that are relevant for the future of Anglo hazardous waste management practices working proactively to ensure we comply American and aligned with our purpose: are reviewed on page 56. with upcoming regulations in other regions { Operationally: ensuring the optimal use where we sell our products, such as This work helps to protect the environment of resources and elimination of waste Korea’s K-REACH regulation. and human health by informing and ineffi ciency, to achieve a neutral downstream risk-management decisions or even net-positive impact on the Regulations like REACH and those and ensures we maintain our licence to environment and communities by stemming from the GHS apply to all market. We also work closely with peers in leveraging our strategic goals (eg chemical substances, including minerals our industry, academia and government to reducing our water and energy/carbon and metals. Failing to comply would improve the science and test methods footprint, physical waste management) jeopardise our ability to access markets. used for minerals and metals, and ensure
Anglo American Platinum Limited Environmental, social and governance report 2019 59
ENVIRONMENT
ENVIRONMENT CONTINUED
{ Through our value chains: maintaining We are already implementing the tenets of a responsible-sourcing programmes and the value of resources in the economy circular economy in many parts of the other stakeholders in sustainability matters for as long as possible, providing business (see case studies on pages 55 continues to grow. All these constituencies maximum benefi t to society and and 56). increasingly seek assurance that minerals ensuring elimination of waste across the and metals have been produced Linked to the circular economy, it has also lifecycle of our products (eg getting our responsibly. become clear that conscious consumers materials into the most benefi cial and are increasingly choosing ‘responsible’ One of the ways we will provide this well-designed products) brands and products while boycotting assurance in future is through assessment { Through holistic circular economy others that are not perceived as against the Initiative for Responsible Mining transformation: a lens to re-imagine responsible. While their defi nition of Assurance’s (IRMA) new standard. Amplats’ mining by growing our business while ‘responsible’ is evolving, sourcing Unki Mine was the fi rst in the world to reducing global resource use to programmes and standards have been announce it will undergo independent sustainable levels. This means developed across a range of industries, assurance against IRMA in December considering the fundamentals of how including mining and metals. This theme of 2019. We have developed a roadmap to our business model will need to change ethical value chains has been an emerging ensure all our operations undergo third- to deliver growth in a resource- discussion in Anglo American for some party audits against recognised responsible constrained world. time and our engagement with customers, mine-certifi cation systems by 2025.
AIR QUALITY
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ { { ApplicationsApA to postpone 2020 SO2 EightEiE g complaints on visible emissions EnsureEnE emissions are minimised and emissions limits approved by { Scrubber availability has been a permit conditions met government for all three smelters challenge at RBMR; the causes will { Develop and implement air quality { All high-risk sites for air quality are be addressed in the February 2020 offset plans for Mortimer and implementing site-specifi c plans to shutdown Waterval smelters, which are in the address identifi ed gaps in meeting Waterberg-Bojanala air quality priority group air quality and emissions area standards { Achieve full compliance with group air quality and emissions technical standard { Complete construction of SO2 abatement project at Polokwane by August 2020. Then construct a similar facility at Mortimer smelter to reduce emissions and comply with more stringent emission limits
Air quality and air emissions are integral to our environmental management activities and permitting processes. Ensuring we adequately understand and control the dust and gases we release at our operations is essential to prevent adverse impacts on host communities, and to meet current and future legislative requirements.
OUR MANAGEMENT Polokwane and near the town of Northam. (potential toxic emissions) are identifi ed APPROACH through the site hazardous material In addition to GHGs, we monitor and register and risk assessments for chemical Air quality and air emissions are governed manage the emission of sulphur dioxide controls and management. There are no by national and local legislation as well as (SO ) and particulates (largely from our 2 other applicable high-risk emissions for our by national and international conventions. smelters), as well as dust (mainly from our operations. Our RBMR, PMR, Polokwane smelter, tailings dams and opencast mines), and Waterval smelter complex and Mortimer nitrogen dioxide (NOx) emissions from mine We promote ongoing operational smelter each have an atmospheric vehicles and other diesel engines. The improvements to reduce levels of emission licence (AEL) in place, aligned to emissions inventory is calculated annually emissions and manage air quality risks by legislated emissions standards for South under the national atmospheric emissions implementing the Anglo American air Africa. We have three real-time ambient inventory system (NAEIS). Hazardous quality and emissions technical standard, monitoring networks in Rustenburg, materials and related air pollutants introduced in August 2018. This guides
60 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
our approach to effectively identify risks Polokwane smelter, which will use Our performance and improve the management of air quality innovative technology to capture SO2 gas Amplats’ GHG reporting aligns with annual controls to reduce levels of dust and from the furnace and convert it to NAEIS reporting regulations. All our South gaseous emissions (excluding emissions sulphuric acid. With a capital investment African operations submitted their 2019 managed for occupational-health impacts) of R2.5 billion, the technology will NAIES process and mining emissions that may pose a risk to humans, fauna and ultimately reduce SO2 emissions by an data, including GHGs, using 2018 data, fl ora. In doing so, we reduce adverse estimated 96% to comply with more before the 31 March 2019 due date, and effects on communities, the risk of stringent limits. The project progressed submitted their GHG reporting data to the non-compliances, and strengthen our well in 2019 (77% complete), with full DEA in April 2019. Our 2019 data will be position to meet evolving regulatory completion expected in August 2020. submitted for the 2020 NAEIS and GHG requirements. Our targets to reduce Once construction and commissioning has reporting cycle by 31 March 2020. emissions are aligned to legal been completed and the project proven In 2019, ambient conditions for SO at all requirements. Specifi c reduction targets effective, construction of a similar project 2 three smelters remained below the limit are in place for our smelters (see below). will begin at Mortimer smelter. of under 88 exceedances of the hourly All our high-risk sites for air quality In March 2019, we submitted applications standard per annum: { completed a self-assessment against the for all three smelters to postpone the SO2 stack emissions for Mortimer standard in 2019 and are implementing timeframe for compliance with stipulated smelter remained below the AEL limit of site-specifi c plans to address identifi ed 2020 emission limits. We requested the 30,000mg/Nm3 based on the monthly gaps and ensure ongoing improvements postponement for Waterval to enable us to average action tracking and close out. evaluate the impact of future high-sulphur { At Polokwane smelter, the AEL limit for concentrate. In November 2019, the SO stack emissions of 30,000mg/Nm3 SO abatement 2 2 requested limits and dates were approved, was exceeded in January and February, Our most material air-quality issue is SO 2 as follows: based on monthly averages, due to a emissions from our three smelters in South { Polokwane smelter: SO limit of higher sulphur content in the Africa. These are regulated by the National 2 60,000mg/Nm3 for 1 April 2020 to concentrate smelted Air Quality Act, which stipulated reduced 31 December 2022. From 1 January { SO stack emissions for Waterval SO emission levels by 2015, and a further 2 2 2023, the limit will be 1,200mg/Nm3 smelter and ACP remained below the reduction by 2020. { 3 Waterval smelter complex: SO2 limit of AEL limit of 3,500mg/Nm based on Our subsidiary, Rustenburg Platinum 3,500mg/Nm3 for 1 April 2020 to the monthly average.
Mines Limited (RPM), was granted a 31 December 2023. NOX limit of postponement on compliance with the 2,000mg/Nm3 for 1 April 2020 to 2015 limit for its Mortimer and Polokwane 31 March 2025 { smelters. In 2018, RPM started Mortimer smelter: SO2 limit of constructing an abatement project at 52,000mg/Nm3 for 1 April 2020 – 31 March 2025.
NUMBER OF DAILY AVERAGE EXCEEDANCES OF THE LIMIT OF 3,500mg/Nm3 per month)
10 10
8
6 5 1 April 2020 MES: 1,200mg/Nm3 4 3 2 2 2 2 2 2 1 1 1
0 000000 0000000
January February March April May June July August September October November December
Q Waterval smelter main stack Q ACP (acid plant)
Anglo American Platinum Limited Environmental, social and governance report 2019 61
ENVIRONMENT
ENVIRONMENT CONTINUED
In 2019, we recorded nine air quality-related complaints (2018: eight) about visible emissions; four were reported internally at RBMR and PMR. Two incidents occurred during unplanned shutdowns which resulted in excessive emissions. Relevant parties were informed about the unplanned shutdowns and resulting deterioration in conditions before the complaints were received. All complaints are investigated and dealt with through the environmental management system.
SO2 STACK EMISSIONS – 2019 (Monthly average 1,000mg/Nm3)
Emission limit 40 30,000mg/Nm3
35 36 30 32 29
25 28 27 26 26 26 25 24 23 23 20 23 22 21 21 21
15 18 17 16 14 14 10 13 12
5
0
January February March April May June July AugustSeptember October November December
Q Mortimer smelter Q Polokwane smelter 2015 postponement limit
MINE CLOSURE AND REHABILITATION
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ AmandelbultAmA fi nalised its detailed { RehabilitationReR backlog of 190ha { AllAlA operations to comply with the fi ve-year rehabilitation plan { Non-compliance with a requirement Anglo American mine-closure { Amandelbult and Mogalakwena of the Anglo American mine-closure standard by end-2020 achieved their 2019 rehabilitation standard, to be addressed in 2020 { Mogalakwena will fi nalise its detailed targets of 19.5ha and 7.5ha, fi ve-year rehabilitation plan in 2020 respectively { Groundwater liability estimates for all { Groundwater remediation liability for managed process operations will be Twickenham fi nalised and models fi nalised in 2020 fi nalised for Mortimer and { Focus on concurrent rehabilitation to Polokwane reduce backlog and associated closure liabilities
Amandelbult open-pit rehabilitation.
62 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Our integrated mine-closure planning approach effectively reduces long-term closure risks and liabilities, while ensuring we leave a positive and sustainable legacy when our mines conclude their operational lives. We are steadily integrating mine-closure planning into the full life-of-mine (LOM), or life-of-asset planning – from exploration to post-closure. Our decisions and changes are achieving tangible results, particularly by rehabilitating land in parallel with mining activities.
OUR MANAGEMENT against the toolbox (detailed above) and required by regulations APPROACH concurrent rehabilitation strategy { Performance monitoring: all post- Managing mine closure and rehabilitation requirements. The performance standards production monitoring and maintenance at Amplats is primarily governed by three comprise three focus areas: costs are included in closure liability corporate systems: the mine closure { Planning and design: requires the estimates that allow suffi cient time for toolbox, the Anglo American concurrent operation to develop a closure plan realistic lease relinquishment (minimum rehabilitation strategy, and the Anglo that is fundamentally aligned with the of 10 years post-decommissioning American mine-closure technical standard. toolbox, with a closure vision phase unless otherwise indicated in established and maintained with site-specifi c technical studies). Detailed Mine-closure toolbox associated specifi c closure objectives monitoring plans are implemented at This is our key guidance document to and land-use plans. A risk assessment rehabilitated sites. ensure successful closure planning of and gap analysis aligned with the Alignment with the mine-closure standard projects and operations in various phases toolbox must be completed in all ensures alignment with our sustainable of their life cycles, and meet the updates of the closure plan. Closure mining plan. requirements of the group mine-closure plans consider and address regulatory technical standard. In 2019, two existing conditions and community and guidance documents – version 2 of the PERFORMANCE stakeholder commitments. In addition, DEVELOPMENTS toolbox and Anglo American’s integrated where appropriate, closure liabilities are In 2018, we evaluated our operations’ closure planning system – were merged to minimised by proactive integrated performance against 23 minimum provide clarity about expectations in the planning throughout the operational requirements of the mine-closure standard. form of the mine-closure toolbox version 3. lifecycle, involving formal opportunities The assessment concluded that we were analysis. Closure requirements are The toolbox is underpinned by the Anglo fully compliant with nine requirements, integrated into the business planning American code of conduct, ICMM principles partially compliant with 12 and non- and LOM planning processes, and sites and commitments as well as good-practice compliant with two. We have made are required to have at least a fi ve-year guidance for integrated mine closure, and progress towards full compliance, with concurrent rehabilitation plan with clear the Anglo American SHE way (policy and partial non-compliances down to four this targets guidelines). It also dovetails with the Anglo year, and non-compliances reducing from { Implementation and management: American social way and socio-economic two to one. The remaining non-compliance all toolbox and rehabilitation strategy assessment toolbox (SEAT), the vehicles for is the non-completion of Mogalakwena’s requirements are implemented at social transition in the operational phase. fi ve-year rehabilitation plan with clearly Amplats operations. This includes defi ned annual rehabilitation targets, which Concurrent rehabilitation strategy promoting benefi cial reuse of is being addressed. Full compliance with An Anglo American concurrent infrastructure post closure where all group requirements is expected by the rehabilitation strategy has been developed possible, minimising post-closure active end of 2020. to clarify the group’s commitment to treatment requirements through reduce its rehabilitation backlog and integrated closure planning, managing Closure plans and actions associated closure liabilities. The strategy and reducing dependency of relevant All our operations have standalone outlines requirements for Amandelbult and surrounding communities through the mine-closure plans, except Polokwane Mogalakwena to develop fi ve-year lifecycle of the operation to leave behind smelter, which will complete its plan by rehabilitation plans with specifi c annual a positive post-closure legacy. the end of 2020. Detailed closure plans are targets integrated into the operational The successful rehabilitation of developed within fi ve to 10 years of planning process. The plans are to be impacted sites is achieved by operational closure. The current life-of- annually updated. establishing proven rehabilitation mine for almost all our mines is 2040. techniques that meet the closure vision Mine-closure standard The standalone (outside the closure liability and associated land-use. In addition, This group technical standard defi nes assessment reports) mine-closure plans a review and update of closure liability minimum requirements for mine closure to for Rustenburg process operations and estimates (accounting provision) is ensure that all Anglo American projects Mortimer smelter must be updated completed annually at all our operations and managed operations proactively plan following the asset divestment in both and a fi nancial provision (guarantee, for closure to manage risks and Rustenburg and Union mining sections. trust fund) is provided to the DMRE opportunities. The standard assists in Similarly, Mototolo Mine was acquired from tracking the closure-planning progress to cover premature closure costs as
Anglo American Platinum Limited Environmental, social and governance report 2019 63
ENVIRONMENT
ENVIRONMENT CONTINUED
Glencore (our former JV partner) and will environmental impact and ultimately NEMA fi nancial provision regulations be included with the Mototolo reduce liability where possible. compliance, the 2019 closure liability concentrator operation (acquisition submission for Amplats managed mining The focus at Mogalakwena has been to process still under way). These updates operations to the DMRE is done in terms reduce the liability for rehabilitation of its will be fi nalised in 2020. of the MPRDA. waste-rock dumps. Since waste rock and At our underground Twickenham Mine, tailings account for the bulk of mine Annual closure liability assessments are on care and maintenance, illegal chrome residue and the overall liability, the based on EMPR commitments and design mining in the mining-right area is currently integration process has ensured that both criteria for closure planning for all a risk to the health and safety of local residues are placed in dumps as close to operations. Last year, we estimated and communities and the environment. The their fi nal rehabilitation angles as possible. phased in surface and groundwater DMRE is addressing the matter in This will reduce the reshaping liability of the liabilities into the overall closure liability conjunction with the mining companies. fi nal dumps and reduce the overall liability. assessment for all our operations and In 2019, as a responsible mining company, In addition, it will enable the successful principal joint ventures. Assessments the liability of rehabilitating illegally mined concurrent rehabilitation of these dumps. continued throughout 2019, with the areas in Twickenham’s mining rights was Therefore, key closure inputs have been groundwater liabilities and remediation included in its overall liability, with an provided in the updated waste placement requirements for all managed process intention to rehabilitate those areas. strategy, including Vaalkop buttressing at operations expected to be fi nalised Mogalakwena. in 2020. The key closure actions identifi ed last year for Mototolo concentrator were to develop Closure liabilities The open-pit mining sites, Mogalakwena a comprehensive decommissioning plan The fi nancial provision regulations under and Amandelbult, recorded signifi cant for the Helena TSF (which is almost at the NEMA were promulgated in late-2015. The year-on-year increases in their liability end of its life) based on potential future current compliance date of February 2020 owing to physical changes intrinsic to groundwater impact; reinstate biodiversity is expected to be extended by another their activities. Our underground mine on the concentrator footprint; and review year because the regulations have not Twickenham, on care and maintenance, and update the groundwater liability and been fi nalised by the DEA despite multiple only refl ected an increase in liability due to related remediation requirements. These draft amendments. an infl ation-related rate increase in closure actions were successfully addressed costs, in addition to including its As required by legislation, each of our in 2019. groundwater liability in the overall liability. operations estimates its closure liability Integrated planning projects annually, when fi nancial provisions are Assumptions underpinning closure liability In 2019, as part of integrated closure made, reviewed and audited. We engage estimates are regularly reviewed and planning, detailed design closure criteria extensively with the DMRE through the revised as required to improve liability inputs were provided into the life-of-asset process of submitting and seeking estimates. As per the mine-closure plans for Mogalakwena and Amandelbult. approval of the annual closure liabilities standard requirement, all operations now The objective of the integration is to enable for Amplats mining operations. In addition, have 10 years of monitoring and effi cient concurrent rehabilitation by closure liabilities of all new or planned maintenance liability as opposed to fi ve establishing short- and long-term projects are reported to the authorities. years previously. rehabilitation targets and assigning annual Financial provisions are provided once budgets. In addition, we aim to optimise DMRE approvals of the liability estimates our mining processes to reduce the are received. Due to uncertainty with
64 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
Case study: Groundwater liability project model, customised to South African operation is available on request from conditions and populated with data the company secretary offi ce. A project was initiated in April 2017 relevant to Amplats’ operations. As such, The 2019 closure liability assessment to estimate the residual liability from fi nal closure liability estimates are more is based on identifi ed closure risks groundwater contamination at all conservative and practical than the (predominantly environmental) at each Amplats managed operations. Over DMRE model. 2017 and 2018, the groundwater operation and developing a mitigation remediation liability for Mogalakwena, The 2019 liability estimate includes the plan over the remaining life of operation. Amandelbult, Unki and Mototolo following main categories of costing for The table on page 66 summarises concentrator was assessed and our operations: closure and rehabilitation risks at our included in the overall liability. In 2019, { Infrastructure demolition and operations. the groundwater remediation liability for rehabilitation The fi nancial provision to address Twickenham was fi nalised and included { Rehabilitating mine residue deposits premature liability has two components: in the overall liability. In addition, (tailings storage facilities, waste-rock funds in the environmental rehabilitation groundwater models for Mortimer and dumps, slag dumps, etc) trust and fi nancial guarantees. The Polokwane have been fi nalised. A { Backfi lling and rehabilitating open pits Platinum Producers’ Environmental review of remediation solutions for { Environmental remediation such as Trust is the main rehabilitation facility these two smelters is in progress and rehabilitating contaminated soil, water for Amandelbult and Mogalakwena the resulting liabilities are expected to courses and riparian ecosystems complexes and Twickenham project. be included in the overall liability in { Lawful disposal of hazardous and Mototolo concentrator is provided for 2020. The groundwater liability non-hazardous waste under the Mototolo Environmental estimation project is under way at the { Residual liability, mainly for ground and Rehabilitation Trust. Please refer to the Rustenburg process operations and surface-water remediation, including table on page 66 for further details. also expected to be fi nalised in 2020. post-closure monitoring and maintenance. Trust funds are invested over the life of relevant operations to ensure there will Closure liabilities: independent We are still determining the residual liability be suffi cient funds at the end of life to assessment for some of our operations (see table sustainably close them. The annual The 2019 liability has been estimated by below). An overview of per-operation 2019 fi nancial statements for these trusts independent consultants using the closure liabilities is also provided (table on are available from the company standardised reclamation cost-estimating page 66). A detailed bill of quantities per secretary offi ce.
Anglo American Platinum Limited Environmental, social and governance report 2019 65
ENVIRONMENT
ENVIRONMENT CONTINUED
Closure liability estimates and corresponding fi nancial provisions for year-end 2019 Premature closure Total premature liability at end closure liability 2019 (excluding (including residual residual liability, liability, DMRE DMRE weighting weighting factor, factor, preliminary Residual liability preliminary and Financial Remaining and general, for ground and general, Closing balance in guarantees life of operations contingencies and surface-water contingencies and rehabilitation trust in place (as per mining VAT) remediation VAT) at end 2019 at end 2019 at end 2019** Operations rights) (years) (ZARm*) (ZARm*) (ZARm*) (ZARm*) (ZARm*) Mortimer smelter 38
Precious Metals Refi ners (PMR) 141 Since process operations are not governed under MPRDA or NEMA Waterval smelter and ACP Depends on life 122 fi nancial provision regulations, they are not required to calculate and of mining operations provide the fi nancial provision North West Rustenburg Base Metals they process ore Will be fi nalised Refi ners (RBMR) from 569 by Q1 2020 Depends on life of Since operations are not governed under MPRDA or NEMA fi nancial mining operations provision regulations, it is not required to calculate and provide the from which it fi nancial provision Limpopo Polokwane smelter processes ore 326 20 Amandelbult complex 21 688 6 964 151 874 Mogalakwena complex 21 1,193 20 1,671 457 1,214 Twickenham platinum project 22 93 3 144 19 125
Limpopo Mototolo Mine*** and concentrator 15 128 36 241 75 166 Zimbabwe Mineral rights tenure legislation does not in Zimbabwe is not require calculating restricted to number and providing Zimbabwe legislation does not require Zimbabwe Unki Mine of years USD18 million USD1 million fi nancial provision rehabilitation trust provision * ZAR is only used for South African operations, the closure liability for Zimbabwe operation (Unki Mine) is estimated in USD. ** Guarantee amounts include 2019 top-ups that will be submitted to DMRE in Q1 2020. *** Mototolo Mine is now part of Amplats-managed Mototolo concentrator. Closure and rehabilitation risks and corresponding remedial actions at end 2019 Precious Rustenburg Metals Waterval Base Metals Refi ners smelter and Refi ners Amandelbult Mogalakwena Twickenham Mototolo Top fi ve risk/remediation (PMR) ACP (RBMR) complex complex project concentrator Unki Mine Risk ➊ Groundwater Groundwater contamination contamination Groundwater Successful from from contamination rehabilitation of processing concentrating from mining slag dump activities activities activities Risk ➋ Groundwater contamination from mining Illegal mining in and processing Soil Stability of surrounding activities contamination Helena TSF areas Risk ➌ Lack of natural growth Soil Air quality Loss of medium such contamination Groundwater impact Groundwater biodiversity as top soil Risk ➍ contamination contamination Lack of natural from from Degradation of growth Air quality processing processing land Successful rehabilitation medium such impactactivities 0 activities productivity of waste-rock dumps as top soil 0 Risk ➎ Groundwater Groundwater contamination contamination from mining from mining 0000activities activities 0 0 0
66 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
REHABILITATION Operational footprint and impact (ha)
Land fully rehabilitated Total land and land altered for rehabilitated mining and but not yet Growth commercial meeting medium activities, and agreed Area Rehabilitation Reshaping construction Seeding supporting land-use available for target for completed completed completed Company-managed land infrastructure objectives rehabilitation 2019 YTD 2019 YTD 2019 YTD 2019
Amandelbult complex 11,172.42 1,469.47 39.6 140.5 19 19 19 19 Mogalakwena complex 17,225.05 4,158.24 8.7 0 8 8 8 8
REHABILITATION to be aligned with the latest waste { Amandelbult: historical rehabilitation One of our most important responsibilities placement strategy, and consideration of work, until the end of 2018, totalled is to rehabilitate the land we disturb to a any applicable authorisation requirements. 183ha of rehabilitated opencast areas condition that meets the expectations The plan will be reviewed and revised in (Merensky outcrop). The new opencast of affected communities and other 2020 to address current challenges. (UG2) rehabilitation began in 2018 and will continue to the end of 2021. In stakeholders. Disturbed land is We review and develop rehabilitation 2019, we achieved the targeted rehabilitated concurrently, where possible, success criteria by documenting the rehabilitation of 19ha of opencast area. which involves the staged rehabilitation success and failures of rehabilitation trials. of disturbed areas over mining project This involved backfi lling, reshaping and phases instead of large-scale work when Our South African operations follow top-soiling the area. Due to a rich the mine closes. This demonstrates social prescribed standards for remediating natural seedbank, the rehabilitated area responsibility, results in signifi cant fi nancial contaminated land as per the Waste Act. is currently being monitored for natural and environmental benefi ts, and can Mogalakwena has a bioremediation plant vegetation growth reduce closure liabilities. that rehabilitates soil affected by { Mogalakwena: historical rehabilitation hydrocarbon spills, which can then be work, until the end of 2018, totalled All our mines are underground operations, reused as cover material for rehabilitation. 87.3ha of waste-rock dump side except the open-pit Mogalakwena Mine. slopes. The initial 2019 rehabilitation Our most signifi cant surface disturbances The total estimated undiscounted target included buttressing Vaalkop are TSFs and waste-rock dumps, roads rehabilitation liability for our managed mining (including vegetation establishment on and infrastructure, and Mogalakwena’s operations (excluding process operations top) and decommissioning and open pits. All TSFs have concurrent and joint ventures) at the end of 2019 was removing a silo. However, we later rehabilitation plans that include R2.20 billion (2018: R1.62 billion). realised this target would not be met revegetation of side slopes as well as dust Rehabilitation targets and due to pending legal authorisation so and water management. performance the target was revised to identify 8ha in Amandelbult and Mogalakwena have Amplats manages 40,511ha of land, of other areas that require rehabilitation. integrated closure and rehabilitation which 7,756ha have been altered for These are mostly lay-down areas actions into LOM operational planning. mineral-extraction activities. We currently around a non-perennial stream that As per the group rehabilitation strategy, have a rehabilitation backlog of some have contributed silting. In addition, Amandelbult and Mogalakwena are 209ha at our mining operations. some areas were also affected by the Blinkwater tailings dam spillage in 2013. required to establish and annually update Mogalakwena and Amandelbult detailed fi ve-year rehabilitation plans. The rehabilitation of these areas involves complexes set annual targets aligned with minor reshaping, top-soiling and These are rolling fi ve-year plans to ensure fi ve- and 10-year rehabilitation targets, as a focus on concurrent rehabilitation and seeding. The target was met by required by the group strategy. Our other end-2019. reduced backlog. In 2019, Amandelbult operations do not set specifi c rehabilitation fi nalised its fi ve-year plan to address targets as they have a less signifi cant Progressive (concurrent) rehabilitation concurrent rehabilitation of its opencast impact on the land. At our underground operations. 2020 2019 2019 Twickenham Mine, on care and Ha target target actual At Mogalakwena, the most signifi cant maintenance, there is little surface Amplats (total) 38 27 27 concurrent rehabilitation opportunity is disturbance at present and therefore no rehabilitating its waste-rock dumps. current rehabilitation opportunities. Amandelbult complex 35 19 19 However, due to constrained space, In 2019, our rehabilitation target was Mogalakwena concurrent rehabilitation has been a 26.5ha, split between Amandelbult (72%) complex 388 challenge. The mine prepared a fi ve-year and Mogalakwena (28%). At year end, we rehabilitation plan in 2019, but this needs had met 100% of this target.
Anglo American Platinum Limited Environmental, social and governance report 2019 67
ENVIRONMENT
ENVIRONMENT CONTINUED
ENVIRONMENTAL INDICATORS for the year ended 31 December
2019 2018 2017 2016 2015
MATERIALS – kilotonnes Rock broken – managed operations (100%) 91,570 97,369 98,340 112,433 152,414 Ore milled – managed operations (100%) 25,179 25,378 26,066 37,165 36,305 Accumulated low-grade stockpiles 60,500 59,909 55,710 49,060 41,811 Coal 128.94 133.96 142.27 132.58 137.02 Liquid petroleum gas (LPG) 6.1 5.68 4.62 4.84 4.17 Grease 0.29 0.29 0.34 0.37 0.37 FUELS – megalitres 74.38 79.55 74.88 75.68 70.8 Lubricating and hydraulic oils 13.12 2.83 7.66 53.14 15.97 ENERGY – terajoules Energy from electricity purchased 13,768 13,402 14,889 18,112 18,751 Energy from processes and fossil fuels 6,311 6,609 6,608 6,516 6,428 Total energy consumed 20,079RA 20,011 21,497 24,628 25,178 WATER – megalitres Total water withdrawals1 25,894 24,433 26,533 32,687 33,197 Potable water from an external source 7,642 6,142 9,433 12,327 14,408 Non-potable water from an external source2 6,884 6,189 5,595 10,021 4,961 Surface water used 1,717 1,418 1,396 4,521 9,343 Groundwater used 8,851 10,684 10,110 5,826 4,695 Water recycled in processes 28,877 25,783 28,791 54,631 60,170 LAND – hectares Land under company charge for current mining activities 118,085 98,374 109,299 108,202 117,266 Land under management control 40,511 41,594 43,240 42,142 46,644 Land used for current mining and related activities 7,756 7,539 8,600 7,903 10,321 Total tailings dam area 1,127 1,316 1,564 1,593 2,326 Total waste rock dump area 1,134 1,134 928 947 1,097 All land owned 11,054 13,685 13,685 13,685 21,154 EMISSIONS – kilotonnes
GHG emissions, CO2e (scope 1 and 2 only) 4,436 4,118 4,612 5,579 5,878 From electricity purchased (scope 2 GHG emissions) 3,903RA 3,560 4,049 5,034 5,316 Internally generated – from fossil fuels (scope 1 GHG emissions) 533RA 558 563 545 561 Nitrous oxides NM NM 0,937 1,395 NM Sulphur dioxide3 NM 22.29 14.78 23.97 19.66 Particulates (point sources) 0.03 0.03 0.04 0.18 0.16 DISCHARGE – megalitres Discharge to surface water 566 352 769 913 278 QUALITY Surface-water quality monitored at all operations Yes Yes Yes Yes Yes Surface-water quality deterioration off-site Yes Yes Yes Yes Yes Adverse surface-water impact on humans No No No No No Groundwater quality monitored at all operations Yes Yes Yes Yes Yes Groundwater quality deterioration Yes Yes Yes Yes Yes Adverse groundwater impact on humans No No No No No LA/RA Limited/reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
68 Anglo American Platinum Limited Environmental, social and governance report 2019 1 3 4 5 2 Environment
ENVIRONMENTAL INDICATORS CONTINUED for the year ended 31 December 2019 2018 2017 2016 2015
WASTE – kilotonnes Mineral waste accumulated in: Tailings dams (active and inactive) 422,180 400,059 467,072 439,118 841,963 Rock dumps 1,554,357 1,488,359 1,184,522 1,115,410 1,053,785 Slag dumps 6,902 6,340 5,820 5,218 4,728 Non-mineral waste generated Hazardous to landfi ll4 2.61LA 5.60 9.22 15.51 9.01 Hazardous incinerated 0.09 0.09 0 0 0.02 Non-hazardous to landfi ll4 1.5LA 2.30 3.58 5.82 9.76 Non-hazardous incinerated 0 0 000 ENVIRONMENTAL INCIDENTS AND COMPLAINTS Level 1 131 209 381 603 453 Level 2 20 12 10 28 18 Level 3 1RA 0 000 Level 4 and 5 0RA 0 000 Formal complaints 11 8 9 23 2 Substandard acts and conditions (recorded non-compliance to internal standards) 998 1,536 1,480 1,786 2,135 PRODUCTS – ounces Total refi ned PGMs and gold 4,885,547 4,507,335 4,621,211 4,641,604 4,766,736 1 Total water withdrawals or abstractions (total water infl ows). Water reporting requirements changed in 2017 to align with ICMM. Water use for primary and non-primary activities no longer reported. 2 Non-potable water from external sources includes waste or second-class water (prior years).
3 Annual calculated tonnage of SO2 from Amplats processes only available for reporting by 31 March 2020 as per NAEIS (DEA reporting) system. NM = not measured. 4 Includes Mototolo Mine – no targets were set for 2019 due to acquisition in November 2018. LA/RA Limited/reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
Anglo American Platinum Limited Environmental, social and governance report 2019 69
PILLAR: SAFETY AND HEALTH
PILLAR: SAFETY AND HEALTH
SAFETY AND HEALTH Do no harm to our workforce or communities
70 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
The safety, health and wellbeing of our employees remain a top priority and core value for Amplats. We are committed to eliminating fatalities, reducing (and ultimately eliminating) injuries from the workplace, and ensuring against any adverse effects on human health. While our safety and health performance this year refl ects our progress in building a culture of zero harm at our operations, we are mindful that more needs to be done to reach our desired state of safety leadership and a culture of safety consciousness and operational discipline. Our aim is to continually build and instil both a company and industry culture that protects people from harm and improves their health and wellbeing.
MANAGEMENT APPROACH By implementing operational risk management training and revision courses Recognising the interplay between management (ORM), front-line managers across our operations. We conduct managing safety and health risks, and are able to identify, prioritise and control operational risk assessments (ORA) that promoting employee wellbeing, we risks that threaten their ability to meet focus on the most signifi cant risks maintain close cross-functional objectives. The main purpose of ORM is identifi ed at respective operations, collaboration to ensure an integrated to ensure that we manage all forms of and commission specialists to audit approach. We implement the following key operational risk effectively, with an the fi ndings. emphasis on improving safety systems, processes and initiatives for Incident management performance and eliminating fatalities. safety and health: Reporting and investigating health and Resilient management systems Embedding our ORM processes for safety safety incidents is an essential part of Anglo American plc’s safety, health and and health is driving improvements in managing our risks and tracking progress environment (SHE) way integrates related identifying, implementing and monitoring in hazard prevention and control expectations and performance standards critical controls, analysing defi ciencies measures. We continue to build in-house into a single management system aligned and incorporating identifi ed controls into capacity to learn from incident (LFI) with our goal of zero harm. In 2019, we task-risk assessments. ORM targets investigations and promote reporting worked to ensure that all operations will form part of management incentives and on high-potential incidents (HPIs) and be recertifi ed to OHSAS 18001, the embedding this system is a priority over high-potential hazards (HPHs), to heighten occupational health and safety the next two years. We provide risk awareness, facilitate organisational management systems standard, in 2020. learning, and effect more robust controls. Last year, our operations conducted self-assessments against SHE way STRENGTHENING OUR POST-INCIDENT MEDICAL CARE requirements, establishing a performance As part of Anglo American group-wide elimination-of-fatalities activities, in 2019 our baseline. In 2019, each site started health function reviewed our post-incident medical care practices and has been implementing a SHE management addressing areas identifi ed for improvement in conjunction with our emergency improvement plan. This includes tracking preparedness and response activities. The objective is to ensure that our post-incident performance against key performance medical care delivers the best possible outcome for an injured person so that the indicator (KPI) targets for 2019 across situation does not become life threatening. SHE performance areas. The benefi t of integrating health and safety into our We initially assessed the level of trauma and emergency care provided at 12 of our sites operating model is increasingly evident in against internal performance standards. This included reviewing key characteristics, improved planning and scheduling of work resources, capabilities, and capacity linked to aspects of trauma and emergency care. and tasks. To address referrals to nearest appropriate and defi nitive points of care, we visited private emergency rooms and hospitals. We developed site-specifi c post-incident We conduct internal and external audits medical care review reports, sharing observations and recommendations across annually to monitor and provide assurance operations, as well as a consolidated business unit report. on our SHE performance. The review indicated that Amplats has a good management system for trauma and Effective risk management emergency care. Areas for improvement included fi rst-aid training and management, The better a company is at managing risk, control room communication and delivering emergency medical services at the scene the more consistent and competitive its of the incident. performance is likely to be. Risk management is therefore a critical In strengthening our emergency-response preparedness, we have focused extensively component of our future success. on fi rst-aid training to ensure we provide the right amount and quality of training at various levels in the organisation. We are also revising the training provided to control- room operators to ensure we are adequately equipped to respond to emergencies. We have reviewed and updated our business continuity management plans in line with this training.
Anglo American Platinum Limited Environmental, social and governance report 2019 71
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Independent contractors Integrating digital technology at our Amplats maintains constructive and In implementing our safety and operations will remain a focus in the short collaborative relationships with regulators occupational health initiatives, we treat to medium term. We already have such as the Department of Mineral independent contractors and permanent extensive equipment using intelligent Resources and Energy (DMRE) and its employees in the same way. This includes technologies and aim to be able to track mine health and safety inspectorate. We providing training, level of care and and respond to information remotely. In the engage regularly to ensure a common benefi ts. Performance data therefore does longer term, we aim to digitise lock-outs, understanding of issues and challenges, not differentiate between employees and daily bookings, logbooks, warnings, and collaborate on solutions. contractors. measuring critical-control effectiveness Regulatory initiatives and monitoring health information via We typically have between 3,000 and We have continued to implement the wearable devices. These developments 4,000 independent contractors (some fi ve-pillar cultural transformation framework are multi-year projects in progress. 14% to 18% of our total workforce) at our developed by the Minerals Council’s mine operations, varying across the year Mine modernisation health and safety council (MHSC). We according to operational demands. For We continually explore methods to make participate in industry health and safety example, to rebuild a furnace requires mining safer and healthier. To achieve our forums and report on our progress 600 to 700 contractors for a month. long-term objectives, we have a internally and externally. Key developments continuous drive on modernisation to across the leadership, risk management, Our employee health and wellbeing ensure our equipment is much safer, more leading practices and technology pillars of initiatives, such as disease management, effi cient and productive. At Amandelbult, the framework are refl ected in this section. are implemented primarily for our for example, this includes different types of We are fi rm on our compliance obligations permanent employees. Initiatives that drills and explosives, transport equipment, in terms of policy, legislation and practices. extend to independent contractors are cleaning methods and logistics. While the indicated in the health section. For Amplats, regulatory compliance is a benefi ts of innovation in mining, for minimum standard. We have also We implement a contractor safety example improved health and safety adopted several voluntary standards management programme that is designed performance, are clear, we continue to (see page 127). to embed consistent leading safety engage in a socially responsible way in practices. This includes training and a deploying innovation to mitigate concerns Assurance and transparency medical examination. We use the about job losses. In line with our culture of assurance and innovative, web-based, on-boarding transparency, regular external assurance Engagement and collaboration system Passport 360 for managing is undertaken across our operations. In Amplats plays a leading role in the contractor SHE compliance. The system 2019, the following key health and safety industry’s initiatives to improve safety and allows Amplats to set its requirements for performance indicators were health, and to achieve and sustain zero contractors’ SHE fi les and the ‘passport’ independently assured for a consecutive fatalities. Our CEO, Chris Griffi th, monitors and records essential information year, split between the more onerous participates in the industry CEOs’ uploaded by contractors. It allows for reasonable and limited levels of assurance. zero-harm forum, a platform to openly real-time monitoring of performance share experiences, determine challenges requirements including training, certifi cates REASONABLE and drive collaborative action for a of fi tness and further requirements like step-change in performance. In 2019, permit issuing and management. the forum developed an initiative called { Total work-related fatal injuries Mobility and digitisation Khumbul’ekhaya, an Nguni word for { Fatal-injury frequency rate (FIFR) Reinforcing our leading management ‘remember home’. The initiative was { Total recordable case frequency approach, we have a dedicated team to launched in October and aims to drive and rate (TRCFR) drive mobility and digitalisation. In 2019, sustain the mining industry’s pursuit of { Total new cases of noise-induced we continued to roll out mobile devices zero harm, with particular emphasis on hearing loss (NIHL) (digital tablet applications) to people on eliminating fatalities. We have integrated the front line, particularly underground at this initiative with our own activities. Amandelbult, to capture and upload LIMITED We also participate in Anglo American’s workplace information daily to a central tripartite health and safety initiative, a platform and facilitate timely responses to senior leadership forum of mining concerns or deviations. { Workers potentially exposed to company, government and labour inhalable hazards above the Digital tablets have now been rolled out representatives in South Africa that strives exposure limit at our processing operations and at our to improve the health and safety of miners { Workers potentially exposed to open-cast Mogalakwena Mine. The through collaborative and transparent carcinogens above the exposure technology eliminates double-handling of stakeholder engagement. Relations are limit data, improves effi ciency and supports our good and collaboration has broadened integrated SHE approach to achieving zero this year, including greater involvement harm. We are on track with the roll out, of faith groups. Refer to page 144 for the independent which will continue over the next few assurance report. years.
72 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
SAFETY
HIGHLIGHTSLOL LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ OperatedOpO fatality-free since { DespiteDeD improvements in safety { SafetySaS leadership and behaviour, 18 October 2018 (fi rst fatal-free performance, we continue to record empowering employees to stop year) high-risk behaviour/non-compliance unsafe work { TRCFR of 2.50, from 3.00 in 2018 with operating procedures { Fatality-free operations and improved { Overall safety performance { 99 safety-related high-potential safety culture and performance improving, with problem areas incidents { Improved management of priority being addressed unwanted events { Fewer regulatory stoppages and { Renewed focus on transport, mobile improved relations with regulators equipment and moving machinery { High-potential incident (HPI) { Implementing elimination-of-fatalities reporting and learning from actions and learnings incidents constantly improving. { Focus on closing out high-risk CEO learning from incidents actions at all operations sessions continue to add value
Nothing is more important than making sure everyone returns home safely after a day’s work. While we have made signifi cant progress over the last two years, our safety performance is not yet where we want it to be. We continue to take decisive steps to foster a culture of collective responsibility and refusing to do unsafe work.
MEASURES OF OUR PROGRESS Total lost-time injuries (LTIs) recorded rose awareness of critical controls and Our intense focus on eliminating fatal risks from 156 in 2018 to 166 in 2019. promoting actions to improve their has resulted in Amplats operating Consistent with previous years, low-level effectiveness. incidents, typically fi nger injuries from fatality-free since 18 October 2018. This We are still at an early stage in reporting materials handling, and slip, trip and fall important milestone on our safety journey high-potential hazards (HPH) to identify incidents accounted for most of the LTIs. is complemented with a steady reduction and correct conditions that may cause an There were no major disabilities sustained in the number and severity of injuries and incident. HPH reporting and analysis is well at our operations in 2019. We continue to improvements across all key safety established at Mogalakwena Mine and is prioritise the prevention of transportation performance indicators. Safety being steadily introduced across our and materials-handling incidents. performance turnaround plans operations. implemented at our more challenging Our emphasis on encouraging the The number of regulatory (section 54) operations, Amandelbult and the smelters, identifying and reporting of high-potential stoppages declined from 23 in 2018 are a key driver and will remain critical in incidents (HPIs) has driven a dramatic to 21 in 2019. Stoppages continue to be meeting our commitments. 77% year-on-year increase in the number restricted to the area where the issue was of HPIs reported to 99 in 2019. These In 2019, we documented a total of 194 observed. A total of 16 non-compliance incidents primarily involved mobile recordable injuries (any injury that requires (section 55) notices were issued across equipment, falling or dropped object, more than fi rst-aid treatment), resulting in our operations (2018: 21). No fi nes or fall-of-ground, fi re or explosion, or a total recordable case frequency rate directives were issued. (TRCFR) of 2.50, exceeding our internal uncontrolled release of energy. While annual 15% reduction target of 2.88. we recognise that any HPI exposes TRCFR is our preferred leading indicator, our employees to fatal risks, which is as opposed to lost-time injury frequency unacceptable, we greatly value the rate (LTIFR), given that it is a better importance of improved reporting and measure of preventative actions. learning from HPIs in heightening
Anglo American Platinum Limited Environmental, social and governance report 2019 73
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Analysis of regulatory and voluntary At the 2019 MineSAFE awards, (proactive) stoppages shows that most Mogalakwena Mine received best safety related to non-compliance with operating performance in class and Amandelbult procedures. In monitoring compliance to concentrators were recognised for our standards, which remains a key focus, signifi cant achievements due to an we implement targeted initiatives to extended fatality-free period. address areas requiring signifi cant improvement.
Key safety issues { Failing to identify hazards and respect risks { Not following standard operating procedures { Inadequate supervision and oversight.
LOSS OF LIFE AND FIFR*
8 0.073 0.08 0.067 7 0.07 6 7 0.06 6 5 0.05 4 0.04 0.027 3 0.017 0.03 2 0.02 2 0 1 2 0.01 0 0 0
2015 2016 2017 2018 2019
Q Fatal injuries FIFR
* Fatal-injury frequency rate per million hours worked.
TRCFR
800 7.59 8 700 7
600 5.28 6 576 500 4.52 5 400 4 380 3.00 300 310 2.50 3 261 200 166 2 163 156 100 105 28 1 65 0 0 2015 2016 2017 2018 2019
Q Medical treatment cases Q Lost-time injuries (LTI) TRCFR
74 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
Case study
ONGOING SAFETY and winch incidents. Ongoing focus areas high turnover in the critical frontline PERFORMANCE include frontline supervisory training, supervisory category (miners, artisans IMPROVEMENTS AT critical control compliance, and enforcing and shift supervisors), which causes AMANDELBULT COMPLEX our golden rules (life-saving behaviours) instability, through short-term By implementing safety performance and bonus safety penalties. There is initiatives. still much to be done to ensure that all turnaround plans at Amandelbult In 2019, we conducted audits at two employees voluntarily stop and fi x a complex, we have ensured steady sections of Amandelbult complex, as substandard workplace or activity, and improvements over the last two years part of efforts to monitor and support eliminate a culture of rule breaking and at its two mines, Tumela and Dishaba, safety performance improvements. non-compliance to critical controls. which have 8,200 and 6,600 Our targeted mine-wide safety employees respectively and have We continue to address challenges turnaround plans are strictly monitored historically been our more challenging with focused initiatives. For example, bi-weekly and against monthly targets, operations. by deepening our understanding of with oversight from an executive team. These plans have rapidly improved sometimes complex underlying reasons Targets have been set for 2020, and levels of compliance at Amandelbult for labour absenteeism, and implementing our year-on-year progress is shown and, in 2019, both mines met and, in response measures, levels have improved below. Together, Dishaba and Tumela some cases, exceeded their safety but unavailability remains high at around accounted for 82 of 117 serious targets. Key developments included 20%. Other health-related challenges injuries (70%) across our operations in implementing critical controls for our include a high chronic disease burden 2019, compared to 70% in 2018. top priority unwanted events (PUEs) and fatigue (see our response to these – fall-of-ground, rail-bound equipment issues on pages 85). We are also tackling
Dishaba and Tumela (combined performance) 2019 2018 2017
Total fatal injuries due to all causes 0 23 Total recordable cases 117 127 151 TRCFR, per 1 million hours 3.62 4.02 4.63 Total lost-time injuries due to all causes 109 102 112 LTIFR – all causes, per 1 million hours 3.37 3.23 3.43 Total serious injuries 82 69 75 Total serious injuries frequency rate, per 1 million hours 2.54 2.18 2.30
Anglo American Platinum Limited Environmental, social and governance report 2019 75
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
PROVIDING A SAFE WORKPLACE Our safety strategy and focus areas (short to medium, as well as longer term) are illustrated below. We have maintained our focus on changing the safety culture at our more challenging mines, at Amandelbult complex, where we have the greatest number of employees and continue to experience high-risk behaviour (case study on page 75). In 2019, we emphasised initiatives to eliminate fatalities. Principal safety risks facing our employees/contractors are falls-of-ground, moving machinery, transportation, electrical or release of stored energy, and isolation/lock-out. We continue to prioritise prevention in these areas, and are addressing identifi ed shortcomings. Fatigue and stress management is another focus area.
AMPLATS SAFETY STRATEGY
Aspirational statement Deliver safe production by creating a resilient safety culture, built on robust and effective safety leadership and risk management
LEADERSHIP AND ELIMINATING OPERATIONAL RISK LEARNING FROM VALUE LEVERS ACCOUNTABILITY FATALITIES SAFETY CULTURE MANAGEMENT (ORM) INCIDENTS (LFI)
Key focus areas { Visible safety { Minimum mandatory { Organisational culture { Identify safety PUEs { Develop a learning leadership by fatal controls transformation and expedite organisation through management { Non-negotiable – transition operational application sharing and { Clear accountability: standards/golden rules { Safety: from a priority through job risk recognition risk owners (life-saving behaviours) to a value assessments { Culture of no repeats { Safety compliance { Safety competence: { Recognition { Institutionalise critical { HPI reporting, CEO and continuous risk training programmes control management reviews and close-out improvement { Process safety { Communication { Maintain focus on of learnings { Balance the demands { Behaviour and { Promote continuous major risk categories: { Identify and implement of production and psychology/ mental improvement culture fall-of-ground, heavy best practices maintenance through health programmes (use journey model to mobile equipment { Formalise learning safe work outcomes establish maturity) (HME), winches and cycles from regulatory { Supervisor { Personal accountability rigging, transport, stoppages competency and for safety explosions, inrush { Develop leading health of discipline { Community and family of water, working at indicators (integrate participation heights, confi ned into information space, electricity, management system) conveyors
Key enablers Culture; operational risk management; information management system; SHE way; integration into functions; mobility
What will success look like? Zero harm Culture of safety Zero fatalities Personal ownership for safety
KEY DEVELOPMENTS AND Every month, our CEO chairs a video recognise our responsibility for ensuring FOCUS AREAS IN 2019 conference across our operations to our people are adequately trained and Passionate leadership review and learn from two particularly empowered to exercise their right to refuse Strengthening leadership and signifi cant high-potential incidents at our to do any work they deem unsafe and withdraw to a safe area, without accountability is a priority to improve the operations. retribution. This is an area where we need impact of our visible felt leadership (VFL) Ownership and shared accountability to embed greater ownership and programme. Management and executives To foster a stronger safety culture, we commitment. regularly engage with employees in the continue to implement a framework to workplace, observing work and providing embed positive leadership practices in In 2019, we continued to enhance frontline coaching and mentoring to promote the daily activities. This defi nes the practices supervision, which will remain a focus in right behaviours to ensure compliance. expected of managers, supervisors, and the next few years. We implemented a all our employees, and their roles in development programme to ensure The tone is set from the top, with our CEO strengthening the culture. supervisors have the required technical emphasising safety leadership at every key skills and can apply theory effectively in event. At the annual CEO safety summit, Being unconditional about safety is a the workplace. In addition to improved senior leadership – supported by technical, critical component of true safety performance management processes, functional and external specialists – leadership. In practice, this means coaching assists in addressing any discusses performance for the past year everyone needs to be as concerned about challenges. The programme was and determines focus areas and the safety of their colleagues as they are introduced at Amandelbult at the end of expectations for the year ahead. about their own. At the same time, we last year and rolled out across our
76 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
operations in 2019. At Amandelbult and – include communicating a message from at work, at home and in the community, to our smelters, we have employed the CEO that if the product cannot be ensure everyone’s safety 365 days a year. experienced retired executives to coach delivered safely, work must stop, and the The programme was launched on Global front-line managers on how to approach introduction of a monthly reward scheme Safety Day on 10 October 2019 and is practicalities. to recognise and reward people for the being implemented over 12 months best self-imposed stoppages. We have through fi ve initiatives, each involving an We continue to increase our efforts to also been working with universities and eight-week challenge around safety and promote a culture of stopping work when global experts to analyse human error and one of our values. it is unsafe. While we have seen an better understand why people take risks increase in internal stoppages actioned by Our safety results affect the performance- that could be fatal. safety personnel or line managers, we are based remuneration of all employees. We yet to see many instances of frontline Our employees’ commitment to safety is use KPI-based reward and recognition to workers actioning stoppages. Efforts to being promoted through the eighth annual drive correct behaviours and provide the encourage employees to report when they Anglo American global safety campaign. necessary training to support outcomes. believe a work area is unsafe – in line with This is built around the theme Safety 365 We regularly review metrics and rewards to Mine Health and Safety Act section 23 – putting our six values of safety, care ensure they are in line with prevailing focus (the right to stop unsafe work and to and respect, innovation, accountability, areas, and effective. refuse working in an unsafe environment) collaboration and integrity into action daily
Case study OUR LIFE-SAVING GOLDEN life-saving golden rules towards our goal of This approach ensures that fair and RULES zero harm. These behaviours are a transparent processes are followed In driving our safety culture, we condition of employment and if employees after safety incidents, and necessary continue to entrench a commitment do not comply, consequence management consequences are consistently applied throughout the company to honour our through the ‘fair culture’ model will apply. whenever unsafe acts are observed.
OUR LIFE-SAVING GOLDEN RULES
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THE UNDERGROUND MOBILE CONFINED WORKING AT ENERGY AND LIFTING AND WATER BODIES CHEMICALS FUNDAMENTALS AND SURFACE EQUIPMENT SPACES HEIGHTS MACHINERY MECHANICAL AND LIQUID AND MINING AND LIGHT ISOLATION HANDLING STORAGE HAZARDOUS VEHICLE SUBSTANCES Only carry out a task if Never enter Always follow the Never enter a Always use fall All energy sources Make sure the When working Make sure you you are trained and restricted areas traffi c rules, wear confi ned space protection safety must be safely lifting device is around water and know how to handle, authorised to do it. unless you have your seat belt, keep without equipment when isolated and capable of lifting liquid storage store and dispose of Make sure you assess permission. Only within speed limits understanding and working at heights. energy released the load. Never facilities, always any chemical or the risks involved and cross conveyors at and do not make following your site’s before working on allow anyone to be wear a buoyancy hazardous guard against them. designated crossing phone calls while confi ned space the piece of in the drop zone of vest and never substances you are Always wear your PPE points. When driving. Pedestrians procedure. equipment. the load. work alone. working with. and obtain a permit underground do not must always stand Release, energy, where required. If enter areas of well clear of mobile lock, tag and test. controls are not in unsupported equipment and place, or not working ground, always go vehicles. properly, stop the job down according to and only continue once your training and do the controls are not enter the working properly. pathways of winches which are not isolated.
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SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Risk management continued to improve in 2019 and we are Our progress with driving mobility and We train all employees on addressing risks confi dent that we now have our major digitalisation is reviewed on page 19. and specifi c hazards in their workplaces. risks under control. This will remain a top Workforce availability We identify substandard and high-risk priority over the next few years. Unscheduled workforce absenteeism can conditions continuously, and rank Last year, we began reviewing and revising present safety risks when team members workplaces based on observed risks. our critical controls in line with minimum are absent. Working closely with our health Management regularly visits workplaces mandatory strategies and associated department, we have been investigating with the highest risk ranking across our monitoring specifi cations for common the complex underlying challenges operations; these sites, and planned major hazards defi ned by Anglo American, associated with workforce unavailability. actions, are then discussed at executive such as working at height and heavy These include issues relating to mental level. mobile equipment interaction. This process health, chronic illness and collecting ORM improved signifi cantly in 2019 but continued in 2019 and we have now chronic medication. By addressing there remains much more to be done and implemented group critical controls for health-related risks, we mitigate safety we aim to ensure comprehensive ten mandatory critical controls at each risks. For example, at Amandelbult, implementation by 2021, with safety risk operation. identifying and responding to specifi c management inculcated into our daily challenges has driven a reduction in levels Technology and innovation action and thinking. In 2019, priorities of workforce unavailability from up to 26% Amplats continues to demonstrate included establishing a strong operational to an average 20%. Focused initiatives are leadership in developing and adopting risk function in the business, improving the being implemented to ensure further leading technologies and engineering scope of material risks managed and improvements. solutions to reduce potentially fatal risks, stabilising critical control management. reduce exposure to work hazards, and Responding to fatal incidents In 2020, we will continue to focus on mitigate the risk of human error. For While we did not record any work-related material risk and critical control example: fatalities at our operations in 2019, we management. { To address fall-of-ground risks, using continue to honour our commitment to Two key operational risk improvement bolts and nets on the rock face has provide meaningful, long-term care to the programmes were undertaken in 2019: made the most dangerous area families of all individuals who tragically lost for tailings storage facilities, focused on (between the last line of support and their lives at our operations. Ongoing aligning management practices across the face) much safer. At Amandelbult, in support includes fi nancial assistance for operations; and fi re risk management, areas where we face challenging ground schooling children of the deceased (from focused on developing our understanding conditions, we have implemented pre-school to tertiary level) and follow-up of fi re hazards and ensuring effective fi re comprehensive timberless support visits to families at least annually to monitor detection and suppression controls for all systems using tension-cabling anchors their wellbeing and school performance. signifi cant fi re hazards. The fi re and grout packs. This has dramatically Every fatal incident at our operations in programmes identifi ed improvement reduced the number of fall-of-ground previous years was subject to rigorous opportunities that are being incorporated incidents investigation, including an independent into current management strategies. { In managing transport and machinery investigation by a multidisciplinary team. risks, we implement collision-avoidance Critical controls to prevent priority Learnings were shared across our systems using vehicle and person unwanted events operations and, where applicable, remedial proximity-detection systems and In 2019, we continued to focus on actions taken and closed out to prevent auto-braking. We continue to roll out implementing critical controls to mitigate similar incidents. the systems across heavy mobile the risk of priority unwanted events (PUEs). equipment and light vehicles, and to Non-recordable loss of life A rigorous programme for monitoring identify and implement enhancements We regret to report that Thomas Maluleke critical-control management is fostering { At Mogalakwena complex, we use was fatally injured in a fall-of-ground greater transparency and accountability, earthmoving vehicles with technology incident on 27 March 2019 at and improving the levels of work executed that gives the operator a 360º view independently managed Modikwa Mine. to plan. We emphasise critical controls to and signifi cantly reduces the risk of a eliminate fatalities. Each month, we track man-machine accident In 2019, there were two cases of health- monitoring completed to plan and the { We use state-of-the-art fatigue related loss of life at our operations. We critical-control deviation rate. Any management systems to predict fatigue investigated these incidents to establish if shortcomings are addressed immediately. risk and monitor employee fatigue in there were any learnings we could apply to The quality of critical-control monitoring real time. mitigate the risk of similar incidents. and compliance, and closing out actions,
78 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
Safety statistics For the year ended 31 December Number of fatalities Fatal-injury frequency rate (FIFR)1
Operations 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Tumela Mine 0 0 1200 0 0.056 0.110 0 Dishaba Mine 0 2 2000 0.144 0.135 0 0 Mogalakwena Mine 0 0 0000 0000 Unki Platinum Mine 0 0 0000 0000 Amandelbult concentrators2 0 0 0000 0000 Mogalakwena concentrators 0 0 0000 0000 Unki concentrator 0 0 0000 0000 Mototolo concentrator3 0 0 0000 0000 Mototolo Lebowa and Borwa shafts4 0 0 0 0 ACP 0 0 0000 0000 Waterval smelter 0 0 1000 0 0.664 0 0 Mortimer smelter 0 0 0000 0000 Polokwane smelter 0 0 0000 0000 Unki smelter5 0 0 0 0 Rustenburg Base Metal Refi ners 0 0 0000 0000 Precious Metals Refi nery 0 0 1000 0 0.579 0 0 Greenfi eld projects6 0 0 0010 0 0 0 0.144 Total/aggregate7 0RA 2 6720RA 0.027 0.073 0.067 0.017
Lost-time injury frequency Total recordable case frequency rate rate (LTIFR)8 (TRCFR)9
Operations 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Tumela Mine 2.89 3.11 4.05 2.92 5.14 3.12 3.61 4.78 4.57 7.02 Dishaba Mine 3.97 3.38 2.69 3.14 4.66 4.24 4.53 4.44 4.76 9.13 Mogalakwena Mine 1.36 0.45 0.68 0.85 1.08 1.47 0.79 1.35 2.26 6.27 Unki Platinum Mine 0 1.17 1.68 0.95 0.91 0.43 1.40 2.80 4.13 2.72 Amandelbult concentrators2 1.02 0.82 4.05 1.51 1.24 1.36 2.45 6.30 3.03 4.14 Mogalakwena concentrators 0.86 1.18 0.81 0.78 0.53 0.86 1.18 1.29 2.34 4.54 Unki concentrator 2.18 0 0 0 2.27 2.18 0 0 0 6.82 Mototolo concentrator3 0 0 0 2.60 0 1.19 0 0 2.60 0 Mototolo Lebowa and Borwa shafts4 0.93 0 1.85 0 ACP 4.62 4.14 3.05 1.06 1.95 5.55 6.90 3.05 1.06 1.95 Waterval smelter 2.62 1.96 3.32 2.60 0 2.62 2.61 7.30 3.25 1.06 Mortimer smelter 5.30 7.51 5.09 1.89 0 5.30 7.51 6.78 5.67 3.71 Polokwane smelter 2.22 00002.22 0 4.53 2.28 2.11 Unki smelter5 0 0 0 0 Rustenburg Base Metal Refi ners 1.57 0.85 1.43 2.44 4.18 2.62 2.84 2.57 6.41 7.76 Precious Metals Refi nery 1.56 2.13 1.16 6.03 2.62 2.07 2.13 2.32 7.23 5.90 Greenfi eld projects6 1.03 1.07 0.94 0.82 2.59 2.75 4.73 1.57 1.37 5.75 Total/aggregate7 2.14 2.10 3.17 3.65 4.92 2.50RA 3.00 4.52 5.28 7.59 Notes 1 FIFR – fatal injury frequency rate (calculated) is a measure of the rate of all fatal injuries per 1 million hours worked 2 Includes Amandelbult chrome recovery plant 3 Includes Mareesburg tailings facilities from 2019 (previously included under greenfi eld projects) 4 Mototolo Lebowa and Borwa shafts acquired from 1 November 2018 5 Unki smelter operational from September 2018 6 Greenfi eld projects 2019: Twickenham Mine, Amandelbult chrome recovery plant (module 3 and 4), Der Brochen exploration, infrastructure and
prefeasibility projects, Western Limb Greenfi elds Exploration, the Unki Housing Infrastructure Project, the Unki Smelter Project, the SO2 Abatement Project at Polokwane and the Mareesburg Tailings Facilities Phase 2 Project. 7 Rustenburg and Union divested operations included to respective dates of divestment – 31 October 2016 and 31 January 2018 8 LTIFR – Lost-time injury frequency rate (calculated) is a measure of the rate of all lost-time injuries per million hours worked 9 TRCFR – total recordable case frequency rate (calculated) is a measure of the rate of all injuries requiring treatment above first aid per million hours worked. LA/RA Limited/reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
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SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
HEALTH
HIGHLIGHTSLO LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ IntensifiInt ed HIV campaigns and { 325323 new cases of HIV diagnosed { MedicalM surveillance to ensure procedures to improve testing among new and existing employees employees are fi t to work resulted in meeting all { 67 employee contracts terminated { Reach 90:90:90 UN targets for UN 90:90:90 targets for HIV due to ill-health and disability HIV management { TB incidence rate remains low at { Our healthcare system continues to { Continuous improvement in 328 per 100,000 identify a high number of cases of employee physical and mental { No case of workplace-acquired TB diabetes, hypertension, mental health, supported by proactive reported in the last three years disorders and other lifestyle diseases wellness screening and disease { Equipping ‘at risk’ workplace { We recognise the need to develop management environments with real-time data a more strategic approach to { Optimising real-time monitoring and monitoring is enabling timely promoting employee work-life data analytics to improve controls to intervention when control failures balance, and to foster greater further reduce levels of exposure to are noted, in reduced personal cross-functional collaboration in occupational health hazards exposures (notably resulting to managing fatigue { Retrofi tting exhaust systems with airborne pollutants) { 3 new cases of occupational fi ltering devices { Completed health and wellness disease: 1 case of NIHL, 1 case of { By end-2020, have site-level stretch baseline assessments across our occupational asthma and 1 case of targets and strategies in place to operations and started a Platinum salt sensitivity achieve SDG3 targets for health in stakeholder review to identify ways our host communities by 2030 to achieve SDG3 (page 14) health outcomes in our host communities
Against the backdrop of an increasing burden of communicable and non-communicable diseases, our approach to health extends beyond striving for zero harm to promoting employee wellbeing and optimal levels of health. As part of zero harm, we are committed to adopting leading practices to reduce levels of exposure to hazards in the workplace and to eliminate occupational diseases at our operations. Any illness caused by or associated with our work or working environment is unacceptable. Being in good physical and mental health is a vital component of employee wellbeing and contributes to a safe and productive workplace. We also address public health issues among our employees and their families to build healthier host communities.
Our principal health risks From a broader public-health perspective, Key occupational health risks associated other risk factors include: with our mining activities: { Communicable diseases { Exposure to inhalable hazards { Pulmonary tuberculosis (TB) and HIV { Exposure to noise co-infection { Ergonomics and vibration (resulting in { Non-communicable diseases (mainly stress to the musculoskeletal system hypertension and mental health). { Managing fatigue and mental health. Plans to reduce exposure are in place at all sites where risks are identifi ed.
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OUR MANAGEMENT APPROACH Our health-related activities focus on key areas and objectives:
Conduct fi tness Monitor and support the Mitigate health risks in the assessments and health and overall workplace (occupational employee surveillance wellbeing of employees Build healthier hygiene) (occupational medicine) (wellness) communities
{ Eliminate exposures to { Establish comprehensive { Maintain intensive HIV and { Collaborate with harmful substances by and integrated screening TB programmes, manage government and local understanding hazardous and surveillance chronic and lifestyle partners in implementing sources and mechanism of programmes that examine diseases, support good community health release; proactively investing workplace and personal mental health, prevent initiatives to improve in engineering and lifestyle risks drug and alcohol abuse access to healthcare operational control solutions { Optimise employee services and strengthen rehabilitation (from service delivery work-related injury or illness), reintegration and return-to-work processes
HEALTH STRATEGY occupational health milestones for the United Nation’s SDG targets for health Our health strategy is illustrated overleaf, South African mining industry, across all outcomes to be achieved in our host with further details on our focus-area our operations. These include targets for communities by 2030. This year, we activities. Key objectives include ensuring controlling HIV, TB, dust and noise focused on baseline social and health no new cases of occupational disease (see below). assessments in our communities. We aim to identify and implement strategic because of exposure to health hazards at Continuously improving our health community-health solutions that address our operations, and positively infl uencing performance is underpinned by our locally relevant health indicators. The the health and wellbeing of our employees progress in aligning health risk close alignment between health and through a proactive, integrated, holistic management with the operating model sustainability strategies supports the approach to managing workplace and and ORM processes, as well as improving expansion of existing wellness initiatives, personal health. In 2019, we focused on occupational hygiene capacity and such as HIV and TB programmes. mental health issues in particular. capability. Action plans are aligned with the Mine In line with the Anglo American Health and Safety Council’s (MHSC) 2024 sustainability strategy, our vision is for the
2024 INDUSTRY HEALTH MILESTONES Our operations are well on track to meet milestones set by the Mine Health and Safety Council (MHSC) for 2024. We continue to cooperate with the industry through the MHSC in developing programmes and initiatives to reach these milestones. The December 2024 health milestones are: To eliminate coal workers’ pneumoconiosis – 95% of all exposure measurement results must be below the milestone level of coal dust respirable particulate of 1.5mg/m3 (<5% crystalline silica) Our performance: No exceedances were recorded for exposure to coal dust in our operations where coal activities occur To eliminate silicosis – 95% of all exposure measurement results will be below the milestone level of respirable crystalline silica of 0.05% mg/m3 Our performance: Target achieved given the low silica percentage in our ore Reduction and prevention of TB and HIV and Aids – the TB incidence rate should be at or below the national TB incidence rate Our performance: Annualised TB incidence rate 328 per 100,000 in 2019 compared to national average of 567 per 100,000 To eliminate noise-induced hearing loss – total operational or process noise emitted by any equipment must not exceed milestone sound pressure level of 107dB(A) Our performance: 12 pieces of equipment emitting noise levels above 107dB(A) were recorded during the year. Plans are in place to mitigate the number of employees exposed to high noise levels.
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AMPLATS HEALTH STRATEGY
Aspirational statement Ensure a healthy and productive workforce through effective management of hygiene risks and exposures, wellness and identifi ed community initiatives
VALUE LEVERS OCCUPATIONAL HYGIENE OCCUPATIONAL MEDICINE WELLNESS COMMUNITY HEALTH
Key focus areas { Eliminate exposures to { Fitness assessment { Demographic and social { Targeted initiatives (linked to inhalable hazards and { Risk-based surveillance context SDGs) carcinogens (as part of { Trauma and emergency care { Health risk factors and { Strategic external PUE prevention) { Sick and injury absenteeism disease profi les partnerships (NGOs, World { Exposure to noise and management { HIV/TB – 90:90:90 and Health Organization, etc) airborne pollutants { Rehabilitation proactive TB management { Extend identifi ed key health { ORM and critical control { Improvement plans based on { Lifestyle risks and chronic initiatives to the community management operation-specifi c health risk disease management { Integrate/align with other { Ergonomics management profi les { Wellness campaigns functions, ie HR, social { Musculoskeletal disease (including World Aids Day) performance: prevention { Health promotion and { TB and HIV { Issue-based occupational education { Lifestyle diseases health risk and control assessments
Key enablers ➊ Five-year strategic planning cycle ➋ Critical control management ➌ Interventions covering prevention, care and rehabilitation ➍ Better understanding of social determinants of health ➎ Proactive involvement in community health
Longer-term goals To mitigate the effects of From 2022, no previously By 2020, the 90:90:90 target for Where we have a presence, we exposure, proactive risk-based unexposed employees at HIV will be achieved will partner with governments surveillance and care Amplats will suffer from the and NGOs in effective programmes will be in place consequences of work-related community health initiatives exposures
OCCUPATIONAL HEALTH We rigorously identify and manage Strict controls ensure employees adhere to Our primary focus is to eliminate or, where potentially fatal inhalable health hazards. requirements in areas where hazards are that is not possible, to mitigate exposure We are also concentrating on better present and the need to use PPE. understanding and managing certain to health hazards in the workplace to In parallel with engineering solutions, over occupational carcinogenic risks, including levels below those known to cause harm, the last three years we have introduced exposure to respirable diesel particulate and to prevent associated occupational real-time monitoring of key controls and matter (DPM), welding fumes, platinum diseases. We have ongoing initiatives to occupational hazards in all areas with salts, arsenic, nickel and ultraviolet educate our employees and reinforce exposure levels recorded above the OEL. radiation. Reducing levels of exposure messages on managing health hazards. This has signifi cantly improved to DPM is a particular focus. In 2019, there were no regulatory work understanding of our risk profi les and stoppages or non-compliance notices In workplaces that exceed an occupational timely control measures, supporting a issued for medical or health-related exposure limit (OEL), we investigate and marked reduction in potential exposure matters. We enforced 50 voluntary, implement engineering and administrative to health hazards. The real-time data proactive stoppages to mitigate controls, and give employees appropriate analytics system (Anglo American’s occupational hygiene risks (2018: 20). personal protective equipment (PPE), such operational intelligence suite or OiS) Controlling occupational exposure as respiratory-protection and hearing- records, analyses and collates data such Our occupational-hygiene programme protection devices. We ensure that all as dust concentrations, air fl ow, gas levels targets eliminating occupational health PPE adheres to stringent national and and noise on a single platform. It monitors hazards at source. By embedding our international standards, including specifi c defi ned parameters and triggers an alert to critical control management process and requirements for women. Intensive critical-control owners when an over- taking mitigating measures, we are steadily programmes ensure employees are aware exposure is detected. This prompts an reducing levels of exposure with fewer of the hazards to which they are exposed, immediate investigation to determine root health incidents. as well as the risk-mitigation measures causes and effective remedial action to implemented, and trained in the prevent repeat occurrences. appropriate use and maintenance of PPE.
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To date, we have rolled out the OiS at six The OiS team is continuously engaging technology is one example of the future- sites (RBMR, PMR, ACP, Mogalakwena with sensor manufacturers and data oriented thinking of this project. Mine, Amandelbult concentrator and transfer specialists to ensure that the In 2019, we recorded three new cases of Polokwane smelter), capturing data from platform remains a future-orientated occupational disease: one of occupational 429 sensors and monitoring 130 critical solution. The current work at ACP on the asthma, one of platinum salt sensitivity and areas. application of low range application (LoRa) one of noise-induced hearing loss.
New cases of occupational disease for the year ended 31 December 2019 2018 2017 2016 2015 Noise-induced hearing loss 1RA 2 62336 Chronic obstructive airways disease – –––– Occupational tuberculosis – –––– Occupational asthma 1 1312 Occupational dermatitis – 1311 Occupational cancers – –––– Platinosis (platinum salt sensitivity) 1 ––2–
Employees potentially exposed to hazards1 2019 2018 2017 Total number of workers2 36,700 37,096 37,947 Inhalable hazards and carcinogens Workers potentially exposed to inhalable hazards above the exposure limit 96LA 555 546 Workers potentially exposed to carcinogens above the exposure limit 84LA 527 983 Noise Workers potentially exposed to noise levels ≥ 85dB(A) < 105 dB(A) 19,978 18,639 21,465 Workers potentially exposed to noise levels ≥105 dB(A) 0 03 Number of pieces of equipment emitting noise ≥ 107 dB (A)3 12 16 34 Impact of attrition not factored. NM = not measured. 1 Exposure above the occupational exposure limit (‘A’ classifi cation band) without taking PPE into account. 2 All workers – employees and contractors. 3 SA mining industry noise sources to be below 107dB(A). Includes Unki. LA/RA Limited/reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
Managing inhalable pollutants systems with fi ltering devices that reduce Fugitive emissions: Metallurgical dust,
Occupational exposure to airborne harmful particulate matter by >95%. Other nickel and sulphur dioxide (SO2) have been pollutants at our operations, such as control mechanisms include optimising identifi ed as the main fugitive emissions at respirable dust, silica and carcinogens, is ventilation fl ow and personal exposure our smelters. Emissions generated through associated with developing occupational monitoring. We are planning to start cleaning activities and from the crusher lung diseases, notably TB, lung cancer real-time monitoring of differential plant and furnaces are the main sources of and airway diseases. pressures and inlet temperatures on diesel exposure. Action plans are implemented to particulate fi lters. These improvements reduce exposure with the main focus on We implement monitoring and control have signifi cantly reduced employee availability and effi ciency of local extraction programmes for dust and other airborne exposure to well below the OEL. To date, ventilation systems. Task teams have been pollutants at all sites, with results informing we have fi tted 28 diesel particulate fi lters established at RBMR and PMR to address controls and initiatives to reduce levels of (six at Modikwa, fi ve at Amandelbult and employee over-exposure at high-risk areas. exposure. Ongoing improvements have 17 at Mototolo). Eight fi lters will be fi tted at Controls implemented at Mortimer smelter been achieved, most effi ciently at sites Unki early in 2020. The retrofi tting strategy have ensured that employee levels of where we are implementing digital is currently being developed and will be exposure to metallurgical dust are below real-time monitoring. fi nalised in 2020. This will include an the legal limit. Diesel particulate matter: Our DPM installation schedule for different sites. reduction programme is well advanced. The key initiative is retrofi tting exhaust
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SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Platinum salt sensitivity: We have Noise and hearing conservation Customised hearing protection devices assessed levels of exposure to respiratory We have made signifi cant progress over rolled out at all sites (mining 21,635; sensitising platinum compounds at our the last four years to mitigate the risk of process 1,870) have materially improved operations. We identifi ed 45 employees at exposure to excessive noise levels, the effectiveness of hearing-protection PMR who were either skin-prick positive primarily driven by engineering solutions measures. Annual maintenance and (27 employees) or diagnosed with for haul-truck cabins and rock drills. We fi tments are undertaken at occupational occupational asthma (18 cases), working have also steadily decreased the health clinics. Noise zones are clearly in low-risk areas. The International proportion of employees working in demarcated in every workplace, enforcing Platinum Group Metals Association (IPA) higher-risk categories. the use of protective devices. workshop in April reviewed alternative Our focus remains on controlling exposure To detect early hearing deterioration, tests to the skin-prick test. We have at source and protecting employees who we conduct both annual and ad hoc adjusted medical surveillance screening for work in environments where noise levels (depending on noise exposure) employees at our operations exposed to exceed an eight-hour 85 decibel (dB(A)) audiometric screening examinations, platinum salts. Exposure reduction plans limit. We have 15,172 pieces of equipment which incorporate the required standard at PMR are meeting IPA targets for 2025. emitting noise levels above 85dB(A), threshold shift. Where necessary, we Respirators: In 2019, we established a compared to 13,955 in 2018, and implement additional corrective measures centre at our Process Clinic where we 12 emitting levels above 107dB(A), down before permanent NIHL develops. evaluate the best fi t of respirators for from 16 in 2018. Engineering In 2019, we diagnosed one case of individuals. The quantitative method improvements are ongoing to reduce noise hearing-loss shift exceeding 10%, which considers various facial parameters. levels to the 2024 milestone of below were duly submitted for independent Employees required to wear a tight-fi tting 107dB(A). We continue to test viable third-party assessment of disability and respirator must be fi tted properly and engineering solutions for our operations compensation. tested for face-seal leakage before using that will reduce levels by 10dB(A) and the respirator in a high risk area. Currently, ensure we control noise to permitted onsite respiratory fi tment testing is done levels. during initial and periodic medicals for all employees working in high-risk areas.
All our rock drills have been fi tted with second-generation attenuators to reduce noise levels.
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Based on our health profi ling and wellness Fatigue management NOISE-INDUCED HEARING LOSS (NIHL) examinations, we implement initiatives to Fatigue is a complex, multifactor challenge NEW CASES address lifestyle-related health risks, with many potential effects. Various 40 particularly smoking, nutrition, stress and factors, such as medical and psychological 36 mental health conditions. conditions as well as aspects of a person’s 35 workplace or lifestyle, can contribute to 30 We use an advanced electronic system fatigue and, in turn, reduced alertness and 25 23 that allows health professionals to capture poor judgement. Fatigue-related risks are 20 each health visit through a secure website. heightened at some operations by 15 The employees’ online records are linked exposure to heat stress. 10 6 to their hazard-exposure profi le and can 5 2 1 be accurately tracked and analysed Our current activities to manage and 0 over time. control this potential safety and health risk 2015 2016 2017 2018 2019 include: In 2019, 67 employee contracts were { Seeking to balance workloads terminated due to ill-health and disability. Monitoring the health of employees { Staffi ng and shift scheduling Our occupational medical-surveillance Musculoskeletal conditions { Applying controls, such as compulsory programmes ensure that the baseline The most prevalent musculoskeletal issue fatigue breaks health of every employee entering the at our operations is lower-back pain in { Training employees on how to manage workforce is recorded; their state of health machine operators. The most common fatigue is monitored while employed; and focused musculoskeletal injuries involve limbs and { Assessing alertness (readiness) for duty initiatives help individuals sustain and lower-back injuries. In all cases, we ensure { Monitoring fatigue. potentially improve their health. the necessary assessments and, where Our approach to managing fatigue is most applicable, referral to a specialist, Our programmes are designed to detect advanced at Mogalakwena Mine, where operation (if required), compensation, risk factors and early signs of ill-health we have implemented sophisticated rehabilitation and return to work. related to occupational exposures and fatigue-prevention, prediction and lifestyle conditions. Medical surveillance We continue to implement education and detection technology in high-risk areas. therefore incorporates screening for awareness initiatives on correct manual These include cameras in truck cabins and common lifestyle health-risk factors, handling, good posture and periodic tracking fatigue shifts using bio rostering. non-communicable and communicable stretching exercises. We conduct Our medical surveillance programmes also diseases shown below. ergonomic risk assessments for mobile consider contributing factors to fatigue. equipment and tasks involving manual Common lifestyle health-risk factors Given the complexity of the challenge, we handling and implement corrective { TB and HIV recognise the need to foster greater measures to mitigate the risk exposure { Obesity cross-functional collaboration across the profi le at that operation. For example, to lift { Smoking human resources, health and safety heavy loads, we aim to use equipment { Hypertension disciplines to ensure a more integrated instead of physical labour. { Diabetes. approach to managing fatigue.
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SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
EMPLOYEE WELLBEING As a condition of employment, permanent We continue to concentrate on Our approach to health risk management employees are required to have a medical improvements at Amandelbult, where HIV is increasingly addressing the interplay aid. We encourage our independent and TB prevalence is highest. This between occupational and non- contractors to have a medical aid. We includes visible-felt leadership support; occupational risk factors. For example, supported development of the proposed intensifi ed wellness campaigns; innovative, reducing or eliminating exposure to national health insurance, which is incentivised voluntary testing and airborne pollutants happens in conjunction expected to be introduced in 2020. We counselling; and proactive follow-up on all with anti-smoking campaigns, screening continue to engage in developments at employees who do not know their status. for TB, HIV, diabetes and other chronic sector level through the Minerals Council, Our executive leadership set the example conditions, roll-out of isoniazid prophylaxis with a focus on occupational health and and participate in wellness screening. for TB, and seamless referral to care safety legislation, specifi cally workers’ Multi-channel communication includes programmes. compensation. posters, videos, and health and safety representatives with formal wellness Managing HIV/Aids and TB Established wellness initiatives across our training (wellness ambassadors) to TB and HIV/Aids are signifi cant public- operations are supported by related promote health. Site-specifi c plans and health threats in southern Africa, with campaigns. Through various programmes, tactics are driving wellness screening potentially life-threatening consequences we strive to educate people on preventing and enrolment on the HIV programme. and managing chronic and lifestyle for employees and their communities. diseases, and to positively infl uence their Amplats is a recognised leader for its TB A signifi cant proportion of employees test wellbeing and lifestyles. In addition to HIV, and HIV/Aids management programmes during the annual medical at our TB and chronic-disease management, we in the workplace and our performance is occupational health centre. In 2019, we continue to focus on mental health, drug in line with World Health Organization introduced a revised procedure to improve and alcohol abuse, and other health and DMRE expectations. Our integrated testing at the centre. As part of health issues. Contractors have access to response includes implementing promotion and education, our health our HIV and chronic disease screening appropriate health policies, allocating teams conduct group counselling in the services. resources to enrol HIV-positive employees waiting areas. This covers the benefi ts of on treatment programmes, and reducing knowing one’s HIV status, screening for Through our wellness ambassador the incidence of TB and its lifestyle diseases and other health-related programme, we strive to increase levels of associated complications. prevention initiatives. knowledge and awareness of common health issues among our employees, and We are committed to playing an active In previous years, our wellness campaigns to promote ownership of personal health in role in the fi ght against HIV and achieving were primarily in the second half of the the workplace. At each operation, we have global and national targets. In 2019, year. In 2019, the ramp-up started in the wellness ambassadors – typically health we made further progress towards the fi rst quarter and HIV counselling and and safety representatives – who serve as UN HIV 90:90:90 targets for 2020: testing campaigns started from the rolemodels and ‘go-to’ people for our 90% of our permanent employees should beginning of the year. Onsite line employees to fi nd support and direction to know their HIV status, 90% of identifi ed management and other functions assisted the correct point of care or service. We HIV-positive employees should be on in coordinating and planning processes. antiretroviral treatment (ART), and 90% currently have 70 trained ambassadors In 2019, in partnership with the treating/ of those who receive antiretrovirals should operating across six sites. Training family medical service providers, we have undetectable viral loads. In 2019, materials include 17 modules and 13 short started implementing off-site testing and 21,587 employees knew their status – videos. submission of consent forms or representing 97% of our permanent declarations. Stakeholder advocacy and We recognise the importance of a good workforce and up from 88% in 2018. support is driven via central and onsite work-life balance. An imbalance can put The uptake of ART by HIV-positive stakeholder structures. strain on an individual and have negative employees (4,516 in the review period) implications for their physical and mental increased to 91%, up from 90% in 2018. We have a team responsible for managing wellbeing. Our wellness ambassador For the full year, 90% of viral-load tests ART uptake. In 2019, we focused on programme, employee assistance that were captured showed viral follow-up and initiating treatment in new programme, medical surveillance suppression. In line with government and cases of HIV, and monitoring and follow-up programmes and HR interactions support best-practice treatment guidelines, all of treatment (ART) defaulters. individuals in identifying and managing people diagnosed as HIV-positive start challenges. However, we recognise the ART treatment immediately. need to develop a cross-functional and strategic approach to monitoring and promoting employee work-life balance.
86 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
The number of reported new cases of HIV complement results and recommendations The annualised TB incidence rate at our remains a challenge. For 2019, 325 cases of health baseline assessments conducted operations was 328 per 100,000, were reported (2018: 415), comprising as part of our sustainable mining plan. compared to 331 in 2018, and remains 179 employees who were either new well below the national average of 567 per A total of 74 new TB cases were recorded recruits or previous status unknown and 100,000. at our operations in 2019. There were no 146 who changed from negative to TB retreatment cases recorded in 2018 or In 2019, three employees died from TB, positive status. To assist in better 2019. Our healthcare facilities have compared to fi ve in 2018: all at understanding individual risk behaviour, in infection-control measures and there have Amandelbult (one was a multi-drug 2019 we commissioned a research survey been no reported cases of occupational resistant case). on the social determinants of HIV risk at TB among healthcare workers in the last community level. The study will be three years. completed in 2020 and the outcomes will
PROGRESS TOWARDS HIV TARGETS TUBERCULOSIS INCIDENCE RATE ANNUALISED (%) (rate per 100,000 population) 100 1,000 98 97 987 96 781 800 94 834 92 91 90 582 90 567 567 88 600 660 88 86 567 86 84 400 82 82 331 328 80 200 78
2017 2018 2019 0 Q Known status Q On ART Target 2015 2016 2017 2018 2019YTD South African TB incidence rate Amplats
TARGET: 90% KNOWN HIV-POSITIVE EMPLOYEES ON ART TUBERCULOSIS INCIDENCE RATE PER 100,000 (%) 2,000 100 90 91 86 1,550 80 75 1,500 1,343 70 1,242 60 1,000 1,136 961 959 746 40 610 500 543 331 328 20 441 414 383 283 276 244 0 203 169 0 55 84 2015 2016 2017 2018 2019 20132014 2015 2016 2017 2018 2019 Q Total TB (new and retreatment) Q Pulmonary TB (new and retreatment) Q Extra-pulmonary TB (new and retreatment) From 2016, ART uptake was based on the UNAIDS 90:90:90 target and treatment guideline advocating test-and-treat.
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SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Case study: COMMEMORATING WORLD moment of silence in memory of theme, further messages and topics AIDS DAY employees who have passed away from included the fi ght against gender-based Every year we mark World Aids Day to an Aids-related illness. We then showed a violence, the need to remove all forms raise awareness and celebrate steps video message from our CEO, Chris of stigma against HIV/Aids, the being taken to reduce the impact of the Griffi th, followed by an address from union importance of knowing your status and disease. The theme of World Aids Day representatives and a site general/SHE/ the benefi ts of antiretroviral therapy, as on 1 December 2019 was Communities health manager. In line with the day’s well as the importance of prevention. make the difference. It recognised the essential role that communities continue to play in the HIV response at international, national and local levels. In line with our purpose (re-imagining mining to improve people’s lives), we have been working since 2000 to reduce the impact of the HIV/Aids pandemic on our employees, their families, and the communities in which we operate. Not only do we want to see our employees live healthy lives, but we want to see the end of HIV/Aids as a major public-health problem by 2030. On 6 December, each of our operations commemorated World Aids Day. We Aiming for 90:90:90… From left: Platmed group manager Dr Theunis Pieterse; Amandelbult distributed red ribbons and pins to complex senior SHE manager Abram Mabotja; Dr Charles Mbekeni, lead: health operations employees, lit candles and held a (southern Africa); and Dr John Ramaroka, Platinum Health health business unit manager.
HEALTH INDICATORS for the year ended 31 December 2019 2018 2017 2016 2015
Hearing conservation Employees exposed to noise levels ≥85dB(A) < 105dB(A) 19,978 18,639 21,465 15,993 28,552 Employees exposed to noise levels ≥105dB(A) — — 3 606 552 Number of pieces of equipment emitting noise ≥ 107dB (A) 12 16 34 42 29 Occupational diseases Noise-induced hearing loss (NIHL) new cases 1RA 2 6 23 36 HIV management ≥90% at risk population know their status1 97% 88% 82% NM NM Employees who know their status2 21,587LA 17,955 20,173 22,222 32,375 ≥90% known HIV+ employees on antiretroviral therapy (ART) 91% 90% 86% 70% 75% Employees on antiretroviral therapy (ART) 4,516 4,203 5,073 3,569 6,203 Tuberculosis New cases 74 72 148 253 450 Retreatment cases 0 0 7 33 73 TB deaths 3 5 5 14 27 Impact of attrition not factored. NM = not measured. 1 Excludes Unki. Reporting against 90:90:90 UN Aids targets commenced in 2017. 2 All known HIV+ and non-reactive cases. 2015-2016 = Number of employee VCT cases (tested). LA/RA Limited/reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
88 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
Chronic disease and lifestyle risks. An industry statistical review of BMI employees and contractors and their management data indicates that the BMI of in-service family members who need psychosocial We continue to focus on identifying and employees tends to increase. A statistical support. The programme is run by social managing patients with chronic conditions review of our workforce medical records workers, clinical psychologists and (particularly hypertension, HIV and concluded that 60% are overweight with a psychiatrists. The facility is provided by an diabetes) and assessing whether they are BMI above 25; 18% are overweight with a external service provider and access to still fi t to perform their duties safely and BMI between 30 and 35, and 8% are support is through a confi dential 24-hour productively. All employees with chronic obese, with a BMI above 35. Depending helpline, as well as face-to-face and email conditions are monitored regularly through on the level of BMI, we implement contact. our occupational health clinics to minimise measures to promote an improvement We monitor and analyse engagements to associated risks. and monitor progress at appropriate understand the most prevalent challenges, intervals. We strive to identify health risks through then design and implement initiatives to regular screening and to manage them At our single-accommodation villages, address these, and assess progress in accordingly to prevent adverse health we monitor average meal participation to mitigating problems. In 2019, we recorded consequences or injury as far as ensure our workers are adequately 1,629 consultations across our operations reasonably practicable. The most prevalent nourished. At all sites, the main (lunch) (2018: 1,089). The main reasons related to and concerning lifestyle-associated health meal participation remains over 85%. mental health (773) and social issues risks in our workforce are high salt intake We closely monitor dietary intake and (841). The low number of consultations on and tobacco smoking. We reinforce ensure food safety, storage and fi nancial issues refl ects good use of promotional messages on healthy lifestyles preparation requirements conform to our established fi nancial assistance at occupational health and dressing- recommended standards. programme (Nkululeko, page 99). station clinics, during team talks and wellness campaigns, and via health Mental health support posters. We plan to further develop our To promote emotional wellbeing, and efforts to support weight loss and promote support employees with early signs of physical activity levels. emotional stress, we facilitate access to professional support. Through our In 2019, we started focusing more on well-established company-funded monitoring body mass index (BMI), as employee assistance programme, we help levels that are high or low present health
CANCER SCREENING AT MOTOTOLO MINE
Mototolo Mine employees were encouraged to get screened for cancer during a cancer awareness and wellness campaign at Borwa and Lebowa shafts in collaboration with Pink Drive in December 2019.
Anglo American Platinum Limited Environmental, social and governance report 2019 89
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES
SAFETY AND HEALTH OF EMPLOYEES AND COMMUNITIES CONTINUED
Financial wellbeing Absenteeism (days) 2019 2018 2017 2016 Mental-health challenges are often related to fi nancial diffi culties. In recent years, Absenteeism due to injury on duty 31,962 22,702 30,514 42,670 we have concentrated on mitigating the Absenteeism due to non-work-related illness over-indebtedness that has affected the and injuries 352,051 384,474 496,109 767,587 wellbeing of many employees at our Total absenteeism rate (%) 7.48 7.63 8.61 8.77 operations. The benefi ts of our Nkululeko programme are evident in impressive numbers (page 99) but, more importantly, Investing in community health research on health and wellbeing needs in improved mental health for the In implementing our sustainable mining and priorities. Using available reports, a thousands of employees involved. plan (see page 14), we aim to partner in situational analysis of existing services, Absenteeism delivering community health solutions that projects and initiatives was conducted. Initiatives that support employees in will achieve the UN Sustainable The extent of alignment of qualitative and achieving optimal levels of health also Development Goal (SDG) 3 health targets quantitative data was assessed – assist in reducing levels of absenteeism, in all our host communities by 2030, with especially for SDG indicators for which which can have a signifi cant impact on the particular focus on girls, young women quantitative data was available. and people with disabilities. SDG3 has ability of our teams to execute planned The fi nal reports for our operations will be nine target areas for improving the health tasks safely and effectively. distributed in the fi rst quarter of 2020. and wellbeing of people of all ages: Internal and external stakeholder The total absenteeism rate (from injuries maternal, neonatal and child health; engagement sessions will be scheduled to on duty, non-work-related injuries and communicable diseases; non- discuss results and recommendations. In sickness) again improved to 7.48% (see communicable diseases; mental health 2020, we will engage with relevant graph) compared to 7.63% in 2018. Lower and other health risks; mitigating road government departments and other levels of workforce unavailability due to traffi c accidents and strengthening health stakeholders to select the appropriate non-work-related illness refl ects improved systems and funding. chronic disease management processes interventions and develop action plans to such as aligning reviews with renewing We are developing site-level stretch targets be implemented in 2021. linked to SDG3 and selecting initiatives to chronic-medicine prescriptions and Our 2025 milestone is to be halfway to achieve these targets. To inform this understanding and streamlining closing gaps between baselines and process, in 2019 we conducted health administrative process for disease SDG3 targets for health in our host baseline assessments across our management. communities by 2030. operations as part of an Anglo American- ABSENTEEISM funded global health-baseline study. The Amplats continues to contribute to (%) study was conducted by the Sustainable community health through specifi c Development Goals Health and Wellbeing services, including: 10 research consortium, led by the London { Emergency medical services: School of Hygiene and Tropical Medicine The resources allocated for mine 9 8.77 8.61 working with Research and Training for emergency-medical services are also Health and Development (RTHD) and Soul available to support emergency 8 7.63 City Institute for Social Justice (SCI). 7.48 responses for incidents outside the mining premises. These include vehicle The key objectives were to: 7 accidents on public roads, medical { Conduct a baseline assessment of emergencies in the community and existing data to estimate progress cases associated with community 6 towards SDG health and wellbeing violence. 2016 2017 2018 2019 targets in host communities { TB contact-tracing: Working with { Conduct a baseline assessment in host district TB coordinators, our facilities Our absenteeism rate remains high communities including stakeholder focus on TB contact tracing compared to the industry standard, and mapping, service mapping, needs { Alchemy project: Our SHE we are strengthening our approach by assessment and prioritisation management programme extends into developing corrective initiatives based on assessment, relative to SDG health and host communities through our Alchemy more insightful medical-surveillance wellbeing targets project and our community reporting and effective illnesses { Design tailored programmes, based on empowerment and development management. best-practice evidence, to address programme (reviewed on page 115). priority targets. A particular focus is return-to-work after frequent or prolonged sick leave. This The consortium designed and continues to be driven by a cross- implemented a mixed-method approach functional team and a coordinated based on a qualitative and quantitative approach between the human resources appraisal of new and existing data. RTHD and health disciplines. and SCI led the formative qualitative
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Anglo American Platinum Limited Environmental, social and governance report 2019 91
PILLAR: OUR PEOPLE
PILLAR: OUR PEOPLE
PEOPLE Resource the company with an engaged and productive workforce
92 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 4 5 3 Social
OUR PEOPLE
HIGHLIGHTSLOL LOWLIGHTS/CHALLENGESW FO FOCUSCUUS FOR 2020 AND BEYOND
{ StableStS relationships with labour { Three-weekThT unprotected strike at { AdaptingAdA to the future of work by: unions Mototolo – Investing in upskilling and reskilling { Three-year wage agreement our workforce reached with unions – Adopting new ways of working { 6.59% of payroll spent on training – Adopting the organisational culture and development and values { Re-envisioning talent management in the digital age and across a multi-generational workforce
MANAGEMENT APPROACH { Their benefi t preferences (job-change { Prepare for underground mechanisation The Amplats approach to its people is a options, mobility options, job fl exibility, where specialised equipment will be human resources (HR) response plan that constant learning) deployed in pilot shafts to increase seeks to enable the business to deliver its { What technology platforms they use production and improve safety, and full potential through its people in a and how they are connected (smart then rolled out to new operations. This values-driven and team-based way. This devices, always on, social media, represents a new skills set with the plan is based on four key levers: 24x7 connectivity). ever-increasing ability to operate and maintain a new fl eet of equipment { People, culture and skills development It is therefore critical that we view the underground { Future-fi t employee relations climate future of work and the employee of the { Quickly upskill and commission new { Agile labour management future holistically, and through the Amplats facilities. In several cases, this { Transition and change. lens. The future of work, in line with the represents a whole new operation to be fourth industrial revolution, indicates that it We measure our success in delivering on staffed over a very short commissioning will involve: these value levers through: period in a remote area { Deploying digitally enabled hardware { An engaged, collaborative and { Prepare the company for sophisticated tools to perform or improve activities team-based workforce technology-driven mining approaches that have traditionally been carried out { A future-fi t workforce and environment including data-driven mining, mining manually or with human-controlled { Having the right people at the right time automation and cutting technologies as machinery in the right place more and more mining is performed { Using connected mobility, as well as { Having an effective organisation. from the control room, and with virtual and augmented reality, to self-managed mining operations based It is also key to look at the future of work, empower fi eld, remote and centralised on sensing and data analytics. which is being fundamentally reshaped by workers in real time advancing technologies and new { Linking operations, IT layers and The employee of the future is defi ned in approaches. devices or systems that are currently the Amplats landscape, dictating that they Fines or directives separate will work with: No fi nes or directives were issued. { Leveraging algorithms and artifi cial { Immediate, remote expert assistance intelligence to process data from and real-time guidance HUMAN RESOURCE sources in and beyond the traditional { In-depth technical knowledge of DEVELOPMENT value chain, to provide real-time machinery We continually focus on the importance of decision support and projections. { Data-rich analysis and interpretation { Cognitive and visio-spatial abilities developing our human resources as a key Within Amplats, introducing new mining { Ability to apply more complex skills by component in achieving our strategic technologies and methods as part of our monitoring equipment and problem- objectives. In tandem, we are considering modernisation and mechanisation strategy solving the impact of the so-called fourth industrial to improve performance effi ciency and { Advanced technology design, revolution, the employee of the future and safety has required a different set of engineering and maintenance the future of work. responses: { Strong analytical and technological { Rapidly modernise existing conventional The combination of these factors and a skills. multi-generational workforce has a major mining operations to increase safety, infl uence on the company’s learning improve production output and lower landscape, specifi cally: costs. This is a large-scale transition to { How employees want to work new equipment as well as a radically (interactive, engaging, access different operational method and to experts, co-created) associated team leadership model
Anglo American Platinum Limited Environmental, social and governance report 2019 93
OUR PEOPLE
OUR PEOPLE CONTINUED
The new skill sets required by Amplats { Improving the standard of talent in the { Improve diversity in the leadership employees moving into the future has organisation over time pipeline, with specifi c focus on women fuelled the introduction of a digital talent { Driving succession planning across the in future leadership positions. An and learning capability strategy. Based on company accelerating plan for women at senior the development of the strategy, key areas { Fostering the motivation and management level has been of implementation started in the latter engagement of our talented people and implemented to ensure we meet the part of 2018 and continued throughout their managers. We will ensure we have mining charter target of 33% females 2019 to enable modernisation at the best talent in the right place at the by 2023 Amandelbult Mine. This implementation right time to meet our business needs { Continue increasing participation in has focused on two outcomes: now and in future. talent exchanges (talent marketplace) { Phase 1 – roll out the modernisation coordinated through the group talent The implementation of our 2019 talent plan conversion programme using traditional community of practice successfully achieved the following learning tools to support conversion at { Develop an early talent strategy to objectives: Amandelbult’s 50E section in the short ensure we identify and develop talent { Talent identities for all middle term (2019) as soon as possible to strengthen our management and above employees { Phase 2 – develop a set of digital pipeline with the skills and attributes were reviewed learning tools (virtual reality, augmented we need for the employee of the future. { Succession planning focused on critical reality, games, videos and e-learning roles (high-impact and business-critical In addition to a new approach, we also material) to be ready to implement the roles) need to rapidly extend our ability to identify digital enabled modernisation { Strengthening the leadership pipeline and engage with talent in local conversion programme in 2020. by improving access to learning and communities to create technological nodes Attracting and retaining talent development opportunities for all bands where community members can bridge Amplats has adopted an integrated { Creating more visibility of talent through the digital divide and provide generations approach to growing its talent and building targeted interventions of highly skilled mining talent for years to a strong leadership pipeline to drive its { Strengthening the pipeline for women in come. strategic objectives. The aim is to ensure leadership positions, to support mining Type of individual performance that the workforce and leaders have the charter targets. appraisal necessary skills and capabilities to drive Futuristic view: Amplats does not have long-term incentive business impact by: { Continue focusing on increasing, plans in place for employees below senior { Growing and fi nding the right talent for engaging and retaining ‘ready now’ management level. all roles, but with specifi c focus on successors, particularly for business- management roles critical roles
Trend of employee engagement Employee engagement Unit FY19 FY18 FY17 FY16 Employee engagement % of actively engaged employees 66 39 N/A 66 Data coverage % of total employees 100 100 N/A 100 *Data coverage is the number of people who were given an opportunity to participate. *Employee engagement is the number of people who actually participated. *n/a = not available.
Training and development FY19 FY18 Average per full-time employee (FTE) on training and development (hours) 53 50 Average amount spent per FTE on training and development R24,754 R24,620
Expenditure on training and development for the South African operations was 6.59% of total payroll in 2019 (2018: 6.28%) while, on average, each employee received 53 hours of training (2018: 50 hours).
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Employee development programmes
Quantitative impact of Description of business benefi ts (monetary Initiative Description business benefi ts or non-monetary)
Young Amplats has a well-structured Ensuring a healthy pipeline that The programme addresses one professionals bursary and graduate-development proactively feeds professionally of South Africa’s biggest socio- (bursars and programme focused on ensuring a competent people into Amplats. economic challenges – the lack of graduates) diverse pipeline of professionals into Ensuring the development of a qualifi ed engineers and technically the business across all key specialised and competent competent people disciplines workforce
Engineering Learnership programmes help Learnerships develop employee Developing employees supports learnerships mitigate the skills shortage in the skills required to become artisans. skills retention at operations. engineering artisanal levels that They also support development of Employment for local communities Amplats requires local communities, for a readily through post-schooling accessible pool of skills qualifi cations
Fast-tracking Fast-tracking programmes address Developing HDSA employees with The programme addresses the programmes under-representation of HDSA the right skills in under-represented need for Amplats to be adequately employees in technical fi elds, areas, enabling them to fi ll represented across all focusing on supervisory and supervisory and managerial roles occupational levels in line with its management categories transformational objectives
Skills Various skills programmes, Giving learners the opportunity to Employees benefi t from nationally programmes consisting of groups of unit participate in a skills development recognised qualifi cations relevant standards that allow learners to programme with national to the industry that also create the become employable for a specifi c recognition opportunity for promotion role and recognised by the Mining Qualifi cation Authority
Cadetship/ Training individuals from local Ensuring a pool of technically Addresses the socio-economic internships communities in skills for specifi c jobs competent people from local issue of preparing youth for to be employed immediately into communities who are immediately employment by providing permanent positions or later as available to fi ll specifi c roles in the experiential training in the mining needed business on completing the and minerals processing industry cadetship/internship
Our performance with selected training and development programmes in 2019 is summarised below:
Engineering training 291 learners enrolled in various engineering training schemes (2018: 289) and 214 qualifi ed (2018: 133) 3,638 participated in different specialised trade-related short courses (2018: 3,122)
Leadership development Attendance of management and leadership development initiatives in 2019: { Junior management programme: 36 { Programme for management excellence/accelerators: 20 { TAP/achievers: 7 { Senior leadership development programme: 38 { Anglo American sustainability management programme: 7 { 459 supervisors attended specifi c supervisory-level performance skills programmes
Developing our young Bursaries and graduate-in-training programmes in specifi c fi elds for 211 people (2018: 208) professionals
Operational risk management 11,988 completed the ORM programme in 2019 (2018: 12,567) process 446 employees completed training for the occupational health and safety skills programme
Access to adult basic AET was provided to 165 employees (2018: 151) and 44 contractor employees (2018: 53) as education and training (AET) well as 127 community members (2018: 125) This is provided part-time and full-time to accommodate shift workers
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OUR PEOPLE
OUR PEOPLE CONTINUED
Transforming the workplace We focus on rewarding good performers, WORKFORCE REPRESENTATION developing skills, providing opportunities (%) Transforming the workplace to refl ect the diversity of South Africa’s population and for career advancement, and developing 100 comply with mining charter requirements is leadership capacity. a business imperative. 80 17 By the end of 2019, 78% of our managers 24 We are successfully diversifying our were HDSAs (2018: 78%), exceeding the 60 prior South African mining charter workforce through targeted recruitment 40 requirement of 40%. HDSA representation 71 and development campaigns for 54 historically disadvantaged South Africans in core and critical skills was 88% against 20 (HDSAs), women in mining and people the current mining charter target of 60%. 0 with disabilities. Meeting representative At the end of 2019, women made up 24% Management Core and critical skills demand for skills at managerial level is an of management (2018: 24%), and 19% of Q HDSA Q Women ongoing challenge. the total workforce (2018: 18%), with 17% in the disciplines of mining, engineering, projects and metallurgy (2018: 15%).
Employment equity as per mining charter
2019 progress Description Measure against target Compliance target
Diversifi cation of the workplace to refl ect the Top management (board) level 27%RA 40% country’s demographics and remain Senior management (including exco) 51%RA 40% competitive Middle management 71%RA 40% Junior management 82%RA 40% Core skills 88%RA 40%
RA Reasonable assurance by PwC. Refer to page 144 of ESG Report for independent assurance report.
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Employment equity per occupational level (2019 statistics as per Employment Equity Act requirements)
Foreign Male Female nationals
African Coloured Asian White African Coloured Asian White Male Female Total Top management 00152000008 Senior management 44 3 11 76 12 0 7 8 7 0 168 Professionally qualifi ed and experienced specialists and mid- management 625 18 24 402 243 10 21 134 34 5 1,516 Skilled technical and academically qualifi ed workers, junior management, supervisors 2,417 33 8 592 798 12 5 168 139 4 4,176 Semi-skilled and discretionary decision- making 11,067 10 0 77 2,242 3 1 16 1,182 1 14,599 Unskilled and discretionary decision- making 809 3 0 8 364 100290 1,214 Total permanent employees 14,962 67 44 1,160 3,661 26 34 326 1,391 10 21,681 Temporary employees 27105120020047 Grand total 14,989 68 44 1,165 3,673 26 34 328 1,391 10 21,728 Note: All numbers are for the year ended 31 December 2019.
TOP MANAGEMENT SENIOR MANAGEMENT SPECIALIST AND MID-MANAGEMENT
27
2 413
141 6 1,103
Q Male Q Male Q Male QFemale QFemale QFemale
Anglo American Platinum Limited Environmental, social and governance report 2019 97
OUR PEOPLE
OUR PEOPLE CONTINUED
Northam Extension 6 Mokopane extension 14
Housing the future communities currently living in informal Employee housing In this dynamic world, Amplats is housing and former mine employees. Mokopane extension 14 committed to re-imagine mining to improve To provide residents with appropriate (413 serviced erven) people’s lives. In terms of this infrastructure, the fi rst 2Mℓ phase of the { 313 erven have been earmarked for the commitment, we immerse ourselves more sewage treatment plant was opened in home-ownership programme in the lives of our employees and host March 2019. { The remaining erven were donated to communities. As one example, we have the Motlhotlo community as part of a Community development committed to deliver adequate housing relocation project to bring people closer Bokamoso community project by 2025. For host communities, we create to social amenities. { We donated 204 hectares of land an enabling environment to earn a valued at R30.6 million for low-cost For our employees, the focus in 2019 was livelihood. housing and bulk infrastructure on ensuring that all preparations for our We are currently involved in several development home-ownership schemes were complete. housing projects in the areas where we { A tripartite partnership between We also launched a marketing campaign operate to supply infrastructure and Amplats, provincial and on the benefi ts of the Mokopane ext 14 accommodation for employees as well local government to deliver project. At the same time, we are as the community. 4,000 low-cost housing units improving living conditions for our host { To realise the development potential of communities by integrating the people of We do face challenges in our aim to our donation, a R45 million sewage Motlhotlo into the Mokopane ext 14 improve people lives, primarily the lack of package plant was developed, which project by bringing these communities essential services in local environments. has connected an additional closer to social amenities to ensure we We are addressing this challenge by 900 households since opening. build integrated communities where both partnering with national and local our employees and host community government departments on community Our contributions support the sustainable can thrive. housing projects. These partnerships have land reform agenda under way in South become essential to achieving our goal. Africa. The land was donated to the Rustenburg community, and will be used We have contributed to the changing face to better the life of residents in the Popo of the Bokamoso community in Molefe and Mbeki-Sun informal Rustenburg through this land-donation settlements, as well as relocating the and infrastructure development project. To Chachalaza informal settlement. We value date, 1,600 of the planned 4,000 units are these partnerships with communities and under construction. The intended government and believe these initiatives benefi ciaries are three identifi ed will have a positive impact.
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NKULULEKO FINANCIAL WELLNESS PROGRAMME The Nkululeko fi nancial wellness programme we initiated in 2014 has been very successful in empowering our workforce to take ownership of their fi nancial wellness.
Roadmap since 2014
Nkululeko strategy
Robust step-change approach
Step 1: 2023 Know your breakthrough fi nancial targets status 2019 Only 10% of Debt:income ratio employees with debt:income ratio Step 2: >50% = 24% >50% Be empowered Asset-backed debt and know obligation = 9% 30% of employee your options debt obligation is Unsecured debt = asset-backed 2018 85% Unsecured debt Debt:income ratio only 15% of debt >50% = 29% obligation Asset-backed debt Step 3: 10% net income obligation = 8% Be in-powered: Take action towards savings Unsecured debt = 92% 2014 Debt:income ratio >50% = 54% Asset-backed debt obligation = 4% Financially empowered FFinanciallyinancially fi t Unsecured debt = 96% and in-powered HHighlyighly iindebtedndebted Rehabilitated
2014 2018 2019 2023
While continuing to offer debt-relief Step-change initiatives for 2019 At inception of this programme, our solutions, in 2019 Nkululeko implemented { 8,863 employees attended fi nancial indebted employees’ debt:income ratio a change-management process to ensure awareness and skills development was 54%. By the end of 2019, this had individual transition from being empowered workshops: improved to 24%, while unsecured debt to become ‘in-powered’ and eventually – 5,832 attended induction improved from 96% to 85%. Translating fi nancially fi t: – 155 completed cadet training this to freed cash fl ow, indebted { Empowerment is about creating a – In partnership with Capitec, employees improved their repayments conducive environment for people to 2,876 attended skills development from a monthly average of R12,363 to perform and excel. Empowerment is an training R6,600, a signifi cant saving. important and critical leadership habit { 4,836 employees signed up for the The next contracting period for the or trait and the Nkululeko programme overall programme Nkululeko fi nancial wellness programme offers these opportunities { Signed up 750 employees for from 2020 to 2024 is being fi nalised, and { In-powerment is about personal choice: debt-rehabilitation programme we are looking for another step-change a decision and proactive action by an { 67 employees received their debt- towards realising our purpose – to improve individual to create (and ‘do’ or take clearance certifi cates through the people’s lives in a sustainable way that will action) for self. The process of in- debt-rehabilitation programme not only reach our employees but touch powerment depends on self and cannot { 129 signed up for debt counselling, the lives of our contractor and service be done by someone else, although a and 11 for debt rescheduling. provider employees and their families. coach can facilitate the process. As part of our interventions to save Through the Nkululeko fi nancial employees from having their assets wellness programme, individuals were repossessed, through the debt-relief assisted and coached towards programme 50 employees’ vehicles and becoming fi nancially fi t and eventually 16 mortgage bonds were saved. fi nancially free.
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Employee relations ORGANISATIONAL CULTURE green is nearing annual targets. We Amplats has maintained a strong and TRANSFORMATION achieved signifi cant traction in all key areas constructive working relationship with all Since the inception of our organisational to close the year on green for overall its unions. South Africa is a founding culture transformation (OCT) journey in progress across all operations, member of the International Labour 2013, we have made signifi cant progress. encompassing all the OCT levers: Organization (ILO) and has ratifi ed all its To measure our progress, we use metrics { Leadership conventions, including those on freedom for each OCT lever. Red indicates an { Engagement of association and the right to organise, activity that is not progressing well; amber { Change management and through legislation including the South indicates some signifi cant inroads although communications African constitution, and acts on labour some items may be behind schedule; and { Tracking and monitoring. relations as well as basic conditions of employment. Accordingly, Amplats has incorporated OVERALL OCT PROGRESS REPORT – DECEMBER 2019 (%) these principles in its policies and 99 procedures through, for example, 100 95 90 92 employment equity forums and 90 committees, sexual harassment policy, 80 grievance procedure. In addition, we have 72 created engagement structures like the 70 steering committee and operational unit 60 partnership forums in which ILO principles 50 are communicated and shared with unions and employees to ensure they are aware 40 of their rights to freedom of association or 30 dissociation and their right to raise 20 grievances or concerns without fear of 10 victimisation. 0
Collective agreements Overall Leadership Engagement Change Tracking and In 2019, Amplats concluded a three-year progress management and monitoring communication wage agreement with its unions to RAG legend: 30 June 2022. The main agreement does Q 85 – 100% Q 60 – 84% Q 0 – 59% not include the recently acquired Mototolo Mine. Wage negotiations with GIWUSA, The focus for leadership this year has been Some of the successes with the change the representative union at that mine, to ensure we have individuals equipped to management and communication lever should be fi nalised soon. The process of lead with conviction, anchored on the were ensuring that we have conversation integrating Mototolo Mine into the Amplats organisational values derived from our metaphors at each operation (vital in a conditions of service is ongoing. so-called 14 ingredients. For this lever, multilingual workplace). We also evaluated success is determined by the extent to each metaphor’s symbol and effectiveness which initiatives deliver the desired impact, to ensure it communicates change ie having leaders create conducive adequately. The benefi ts of this naturally platforms for employees to thrive with a spilled over the engagement lever. Since values orientation. Key to this focus area is human communication processes are ensuring that specifi c strategic initiatives deeply embedded in making comparisons, are accelerated by a value-driven metaphors and images invoke strong and organisational culture with high employee positive responses, we intentionally use engagement, and innovative solutions conversation metaphors as a way to coming from all parts and levels of the communicate salient change initiatives as company. part of the OCT journey.
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We ended the year stronger than 2018 on Mototolo Mine unprotected strike the tracking and monitoring lever by resolved concentrating on a consolidated matrix Although the sale and transfer of Mototolo that is reactively managed as well as Mine was processed in line with section proactively. Importantly, we identifi ed more 197 of the Labour Relations Act, the outcomes-based change indicators to mine’s majority union (General Industrial measure as opposed to input and Workers Union of South Africa or GIWUSA) activity-based indicators. We will roll this served a strike notice on Amplats on out in 2020 after robust stakeholder 9 May 2019. Earlier, the union had engagement and co-creation by all our declared a dispute at the Commission for stakeholders (organised labour, Conciliation, Mediation and Arbitration management and employees). (CCMA), alleging that the changes Amplats made to the employees’ medical scheme Survey results represented a unilateral change in Following a comprehensive culture survey conditions of service, and despite Amplats in 2018, in which 39% of our employees offering a medical scheme with similar participated against a target of 40%, we benefi ts. have systematically attended to action items that address employee concerns in On 10 May, Amplats was granted an the review period. The OCT team ensured interim court interdict against any strike that we ended the year in the green zone action by GIWUSA at the mine. Two days by resolving over 85% of our action items. later, union members began an unprotected strike, defying the court order In 2019, a global Anglo American and Amplats’ communication to employee engagement survey ran from employees to avoid an unprotected strike. mid-September to mid-October 2019. It Although we appealed to the union to end covered 66% of the wider group and 56% the strike and allow employees to return to of all employees at Amplats. Since then: work, these requests were ignored and we { Top-level fi ndings for the group were forced to dismiss about half management committee were released (643 employees) of Mototolo Mine’s in early December 2019 (when board underground workforce. meetings take place) The company reported publicly on { Follow-up reporting to business-unit 30 May 2019 that the strike had been CEOs and follow-up meetings were resolved, after ongoing engagement with completed in January 2020 GIWUSA. In terms of the collective { Focus groups and action plans per site agreement signed by the parties the prior were fi nalised. day, all dismissed employees were Employee benefi ts reinstated at Mototolo Mine and reported Amplats provides attractive benefi ts for for duty by 31 May 2019. employees, in line with our goal of In terms of the agreement, the union attracting and retaining skilled people of accepted that the proposed medical aid the highest calibre. In addition to meets the requirements of the section retirement funds, medical aids and 197 transfer. While the no-work, no-pay company-funded assistance for any death principle applied for the duration of the in service, Amplats also offers above- strike, the agreement made provision for average and fully paid family responsibility employees to earn back lost income within leave (eight calendar days per annual four months by working additional shifts. leave cycle).
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OUR PEOPLE CONTINUED
Employee share ownership plan In the 2016 – 2019 wage agreement, we undertook to establish an employee share option scheme (ESOP) task team with specifi c terms of reference. The Amplats ESOP applies to all permanent employees below senior management level (bands D1 and below as well as bands 6 – 10 and 6 – 11). As per the agreement reached in November 2018, the scheme runs over a fi ve-year period as follows: { Year 1: pay all qualifying employees a cash amount (2018) { Year 2: pay all qualifying employees a combination of 50% cash and 50% shares (2019) { Year 3: pay all qualifying employees a combination of 50% cash and 50% shares (2020) { Year 4: vesting (2021) { Year 5: vesting (2022).
EMPLOYMENT STATISTICS Breakdown of South African workforce
2019 2018 2017 2016 2015 Gauteng 259 237 255 278 330 Limpopo 16,940 16,926 22,010 21,669 23,259 North West 2,988 2,957 2,878 2,862 17,991 Mpumalanga 1,541 1,527 177 136 136 Total own employees 21,728 21,647 25,320 24,945 41,716 Contracting staff Labour hire 26 28 37 87 401 Contractors 2,282 1,916 2,201 2,129 2,171 Total contracting staff 2,308 1,944 2,238 2,216 2,572 Employment creation in provinces Gauteng 22 (18) (23) (52) (47) Limpopo 14 (5,084) 341 (1,590) (1,563) North West 31 79 16 (15,129) (2,332) Mpumalanga 14 1,350 41 0 (4) Total own employees 81 (3,673) 375 (16,771) (3,946) Labour turnover in South Africa, % (including voluntary separation packages) Gauteng 0.10% 0.11 0.25 0.15 0.20 Limpopo 3.65% 4.24 4.77 5.13 4.54 North West 0.44% 0.56 0.69 2.56 4.73 Mpumalanga 0.35% 0.08 0.03 0.01 0.02 Labour turnover in Zimbabwe 0.24% 0.21 0.19 0.14 0.12 Turnover per region
2019 2019 2018 2017 2016 excluding including 2018 including 2017 including 2016 including VSPs VSPs excluding VSPs VSPs excluding VSPs VSPs excluding VSPs VSPs
Total % Total % Total % Total % Total % Total % Total % Total %
Gauteng 22 0.10 22 0.10 19 0.09 23 0.11 60 0.23 65 0.25 33 0.09 61 0.15 Limpopo 763 3.48 799 3.65 747 3.47 913 4.24 1,211 4.67 1,235 4.77 976 2.53 2,055 5.13 Mpumalanga 76 0.35 76 0.35 17 0.08 17 0.08 8 0.03 8 0.03 5 0.01 6 0.01 North West 95 0.43 96 0.44 117 0.54 121 0.56 172 0.66 179 0.69 463 1.20 1,025 2.56 Zimbabwe 52 0.24 52 0.24 46 0.21 46 0.21 47 0.18 49 0.19 56 0.15 56 0.14 Grand total 1,008 4.6RA 1,045 4.77 946 4.39 1,120 5.20 1,498 5.78 1,536 5.93 1,533 3.98 3,203 8.00 RA Reasonable assurance by PwC. Refer to page 144 of ESG report for independent assurance report.
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TURNOVER BY GENDER AND AGE IN 2019
20 – 30 31 – 40 41 – 50 51 – 60 61 – 72 Total
Female % 0.08% 0.23% 0.14% 0.05% 0.00% 0.50% Male % 0.36% 1.42% 0.91% 1.26% 0.16% 4.10% Total 0.43% 1.65% 1.05% 1.31% 0.16% 4.60% Turnover including VSPs Female % 0.08% 0.25% 0.14% 0.05% 0.00% 0.52% Male % 0.36% 1.46% 0.95% 1.32% 0.16% 4.25% Total 0.44% 1.71% 1.09% 1.37% 0.16% 4.77%
TRAINING IN 2019
Black Coloured Asian White Total HDSA Total Type of training Male Female Male Female Male Female Male Female trained trained Graduates 52 31 2 0 2 3 18 6 96 114 Bursaries 34 21 0 0 8 1 24 9 73 97 Learnerships (engineering) 172 99 5 0 1 0 13 1 278 291
AVERAGE TRAINING HOURS IN 2019
Per employee 2019 2018 2017 Professionally qualifi ed and experienced specialists and mid-management 33 28 39 Semi-skilled and discretionary makers 56 50 96 Senior management 17 19 11 Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen and superintendents 51 49 85 Unskilled and defi ned decision makers 59 108 101 Total per employee 53 50 90 Note: Reduction in 2018 due to implementation of learning management system and more accurate recording of computer-based training.
FREEDOM OF ASSOCIATION Membership of recognised unions and associations as at 31 December 2019 2018 2017 2016 2015
Association of Mineworkers and Construction Union (AMCU) 9,284 9,886 13,664 13,691 24,382 National Union of Mineworkers (NUM) 5,974 5,670 6,437 6,378 8,200 United Association of South Africa (UASA) 2,160 2,157 2,544 2,630 5,827 National Union of Metalworkers South Africa (NUMSA) 0 50 269 270 347 General Industrial Workers of South Africa (GIWUSA) 855 917000 Total 18,273 18,680 22,914 22,969 38,756 Total workforce represented, excluding management* (%) 94.37% 94.82% 95.74% 96.88% 96.67% * Unki operations headcount excluded in denominator. Comparative fi gures (%) 94 92 92 96
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Working conditions policy Diversity { Management/board responsibility for Amplats adheres to South Africa’s Basic In fulfi lling our ambition to be an employer, diversity issues Conditions of Employment Act, and partner and investment of choice, Amplats { Training and guidance on diversity applies similar standards in Zimbabwe. has developed a framework that defi nes its { Diversity initiatives beyond legal This ensures that the health and safety of vision for transformation. The purpose of compliance: leading women every employee, as well as their family the framework is to meaningfully transform programme, nexus programme, responsibilities, are prioritised. As a mining our organisation and communities, to women-focused fast-tracking company, many of our business units improve people’s lives and make a programme operate shifts around the clock. Working positive, sustainable contribution. The { Mentorship programmes conditions at these mines fully consider following policies and programmes are in { Initiatives to support a diverse the health and safety needs of shift place: workforce: men as partners, sexual workers, and specifi c issues are { Inclusion and diversity programmes harassment training negotiated and agreed with representative { Employment equity policy { Diversity monitoring/audits. labour unions. { Bullying, harassment and victimisation policy
DIVERSITY INDICATOR PERCENTAGE
Female share of total workforce (%) 19%
Females in all management positions, including junior, middle and senior management (as % of total management workforce) 24%
Females in junior management positions, ie fi rst level of management (as % of total junior management positions) 24%
Females in top management positions, ie maximum two levels away from the CEO or comparable positions (as a % of total top management positions) 17%
Amplats was one of only eight South { Sexual harassment policies African companies to be included in the { Pro-women brand. 2020 Bloomberg Gender-Equality Index. This was a proud fi rst for our By disclosing gender-related metrics, company, refl ecting our signifi cant companies in the 2020 Index have progress in creating an inclusive and provided a comprehensive view of their diverse workplace. investment in workplace gender equality and communities in which they The Bloomberg framework is an operate. international, standardised reporting method for workplace gender data that In total, 325 companies headquartered enables companies to measure how in 42 countries, were included in the they promote gender equality across 2020 Index. As noted, only eight local fi ve dimensions: companies made the Index. The { Female leadership and talent pipeline Gender-Equality Index is regarded as a { Equal pay and gender pay parity valuable tool for investors considering { Inclusive culture environmental, social and governance (ESG) matters in their decisions.
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Future of work The world of work is being fundamentally reshaped by advancing technologies and new approaches to work. Our human resources function has developed a response plan to ensure Amplats has the right people, with the right skills, in the right job, at the right time and with the right attitude. ADVANCING TECHNOLOGIES NEW APPROACHES TO WORK
Anytime, anywhere connectivity Rise of the gig economy and freelancing
Cloud computing Open sourcing of ideas and products
Augmented/virtual reality New models of employment
Advances in artifi cial intelligence (AI) and cognitive computing
Internet of things and sensors
Social, local, mobile reality
The impact of these changing technologies and ways of work means: { Declining value of many traditional skills { Existing roles are evolving { New skills and job profi les are emerging { The nature of work is changing. The three key future-of-work areas on which Amplats must focus to thrive are: { Investing in upskilling and reskilling our workforce { Adopting new ways of working { Adapting the organisational culture and values.
Viewed through the talent landscape lens and given our diverse, multi-generational workforce, for Amplats the future of work necessitates a number of preferences: TECHNOLOGY PLATFORM AND HOW TO WORK CONNECTION BENEFIT PREFERENCES
{ Engaging { Smart devices { Job change options { Interactive { Video { Financial management { Access to experts { 24x7 connectivity { Mobility options { Co-created { Always on { Flex plans { Community-based { Smartphones { Constant learning { Social media { Health and wellness – fi tness { Job fl exibility
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Case study
AMPLATS SCHOOL PROJECT AMPLATS SCHOOLS VERSUS PROVINCIAL AND NATIONAL PASS RATES In 2015, we partnered with specifi c (%) technical high schools close to our 100 operations to improve learners’ 93.2 93.3 mathematics, science and technology 90 skills and drive the localisation of skills. The project – which involves close 81.3 80 78.2 cooperation with the Department of 73.2 69.4 Education, school principals and 70 governing bodies, educators and
learners – includes learner and 60 educator development, training school
management, and refurbishing and 50 upgrading school infrastructure. 2018 2019 The three schools, Mogale Wa Bagale Q AAPS average pass rate Q Limpopo pass rate Q National pass rate (near Twickenham and the town of Burgersfort), Phaladingoe (near Initiatives in 2019 included learner coaching and exam-preparation camps for grade 11 Mogalakwena outside Mokopane) and and grade 12 learners, educator development and coaching, and focused development Thekganang (near Amandelbult outside in maths and science for both learners and educators. Thabazimbi) achieved an average pass rate of 93% in the 2019 exams. This Ultimately, the programme aims to equip learners with the skills and education to compares to an average of 65% in access to higher education and provide them with employment opportunities, including 2014. These schools also outperformed at our operations. provincial and national averages, shown The learners can benefi t from several Amplats programmes, based on their alongside. performance in the grade 12 examinations (see overleaf).
Learners from Thekganang Technical School
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Grade 12 performance A total of 121 learners from the three schools wrote matric in 2019, up almost 19% from 102 in the prior year. Of these, 113 passed the 2019 National Senior Certifi cate examinations. Pass rates per school are shown below. Commendably, Phaladingoe’s university pass rate increased from 31% in 2018 to 50% in 2019. Academic performance 2018 2019
Wrote Passed Pass Wrote Passed Pass Mogale Wa Bagale 35 32 91.4% 62 58 93.5% Phaladingoe 49 46 93.9% 32 30 93.8% Thekganang 18 17 94.4% 27 25 92.6% Limpopo 76,734 53,254 69.4% 70,847 51,855 73.2% National 512,735 400,761 78.2% 504,303 409,906 81.3%
The 2019 average performance of the three Amplats schools exceed provincial and national performance by 20% and 12% respectively. Quality of results The latest results underscore the quality of learners’ pass rates in relation to university entrance (bachelor’s degree), diplomas and higher certifi cates.
Higher Year Bachelor Diploma certifi cate Fail Mogale Wa Bagale 2018 42.8% 45.7% 2.9% 8.6% 2019 35.5% 33.9% 24.2% 6.4% Phaladingoe 2018 30.6% 32.7% 28.6% 8.1% 2019 50% 25% 18.7% 6.3% Thekganang 2018 50.0% 22.2% 22.2% 5.6% 2019 55.5% 29.6% 7.5% 7.4%
In 2019, the schools project focused on: { Educator development { Direct learner support: coaching, exam-preparation camps for grade 12 and 11.
Continuous support is being provided: { Focused development in maths and science for learners and educators { Educator development and coaching { Grades 8, 9 and 12 direct learner support { Using ICT to enhance teaching and learning.
Amplats will absorb learners into various programmes based on their performance: { Bursary programme { Scholarship programme { Engineering learnerships { Process academy { Mining cadetship { Finishing school
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PILLAR: SOCIO-POLITICAL
PILLAR: SOCIO-POLITICAL
SOCIO-POLITICAL Partner in the benefi ts of mining with local communities and governments
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SOCIO-POLITICAL
HIGHLIGHTSLOL LOWLIGHTS/CHALLENGESWLW FO FOCUSCUC S FOR 2020 AND BEYOND
{ DeliveredDeD water to over 80,000 { HighHiH unemployment rates, mainly { EmbeddingEmE revised Anglo American community members in Mapela Sekhukhune and Waterberg social way and created employment for more districts, as mines downscale { Completing SLP2 for all sites; than 80 young people around the { Additional stakeholder groupings, developing and integrating villages of Mapela all requesting independent socio-economic development { Completed the electrifi cation of 970 engagement with mines despite components into SLP3 households in Phasha Makgalanoto agreed platforms and creating { Implementing and coordinating and GaMampa villages around tension between the parties programmes to achieve Twickenham mine { Escalating tensions with sustainability targets { Installed solar street lights in communities and different { Review stakeholder engagement 10 villages across the 3 operations. structures in the Eastern Limb with framework to building trusted and Mogalakwena, Der Brochen and over 200 protests to different mines enduring relationships Twickenham and over 50 000 and the municipality. The industry community members benefi ting called for the intervention of the and has created jobs for more than Police Minister and the MEC of 100 youths that continue to Community safety in Limpopo. maintain the lights A joint committee has been { Upgraded: established to engage and resolve { 4 schools, 2 clinics the community issues { 10 water and sanitation school { As the land dialogue in the country projects intensifi es, we had land invasions in { Completed the community access the Mogalakwena and Rustenburg bridge at St-George Farm areas. The matters were referred to improving access for communities the relevant authorities and eviction to amenities including schools orders were issued and executed { Paid Ga-Molekana and Sekuruwe accordingly communities { Bokoni and Twickenham on care { Reaching over 10,000 learners on and maintenance, with fewer the early childhood development, procurement and employment leadership and character-building, opportunities and grade 12 support programmes { Slow service delivery from { Rollout of the interfaith programme municipalities putting pressure on to Rustenburg, Amandelbult and mines to deliver services Der Brochen
SOCIAL CAPITAL Maintaining and improving our social licence to operate depends on our ability to enhance this capital at all levels of our society. We refer to this as our socio-political pillar of value. While a licence to operate is a tangible, regulated entity, the social licence to operate is a fl uid concept more easily identifi ed by its lack, rather than its presence. Social capital itself is the outcome of the investment an organisation makes in building relationships with its stakeholders.
Granting, rejecting or withdrawing a social SOCIAL ISSUES ENCOUNTERED Each site operates in a unique societal licence to operate is a stakeholder group’s AT SITES context, with specifi c risks and response to the extent of that social capital Our social licence to operate remains a opportunities. The way we manage social (positive or negative), which in turn key focus for the long-term sustainability of issues at each site infl uences our social supports an organisation’s legitimacy, our business. We recognise that Amplats capital and requires individualised and credibility and trust. is a microcosm, functioning in a broader focused effort to create positive social impacts. Our business strategy focuses on societal framework, and an inextricable embedding an approach that will improve part of the fabric of society. Our vision to our legitimacy and credibility by integrating re-imagine mining to improve people’s lives our purpose and embedding the Anglo highlights the role Amplats plays in shaping American sustainability strategy into the life of modern society and the role functional strategies. society, in turn, plays in achieving this vision for mutual benefi t.
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PILLAR: SOCIO-POLITICAL
SOCIO-POLITICAL CONTINUED
Key social issues at Amplats operations
Mogalakwena Mine { Provincial and government capacity { Leadership and chieftaincy disputes Zimbabwe { Inadequate infrastructure { Water supply under pressure { Land-claim issues Unki { Municipal instability { Drought { Infl ux { Political and regulatory uncertainty { Air blast and vibration { Inadequate infrastructure { Dust { Unmet community expectations { High expectations for benefi ts { Artisanal mining and informal settlements in mine lease area Polokwane smelter { Expectations for jobs and CSI { High expectations for employment and procurement opportunities { Contested lease rates by Reboile Trust Amandelbult Mine { Expectations for CSI and other benefi ts by { Local procurement traditional authorities { Municipal instability and limited capacity { Dysfunctional community engagement structures { HIV and Aids { Leadership and chieftaincy disputes { High expectations for benefi ts { Infl ux and informal settlement Polokwane
Limpopo
Twickenham { Unemployment due to care and maintenance { Environmental concerns { Illegal mining { Local procurement { Intermittent criminal activities
North West
Der Brochen/Mototolo { Limited access to basic services { Land claims { Leadership and chieftaincy disputes { High expectations for benefi t sharing { Dust and water impacts { Local procurement Gauteng
Rustenburg { Land claim on Waterval farm Mpumalanga { High expectations for employment and procurement opportunities { Land invasions, eg Bolana { Social and labour plan 1 legacy projects (high- Johannesburg mast lights) { Escalating confl ict around Sporong graves { Dysfunctional community engagement structures
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OUR SOCIAL STRATEGY strategy therefore helps the business to sustainable business and thriving Our social strategy plays a signifi cant role fulfi l its societal obligations by delivering communities by enhancing our social in supporting our business strategy and shared value – creating social value licence to operate through engaged addressing key social issues at our for stakeholders while generating and empowered stakeholders. business value. operations. Our business strategic It enshrines three value levers (or pillars), priorities are enacted in a safe, values- This strategy was adapted to the changing shown below, with strategic focus areas driven and socially responsible way, needs of the business and to better meet that aim to deliver positive social impacts underpinned by the need to build leading the needs of our stakeholders. It clearly and enhance social capital. community and stakeholder relationships defi nes our objective to enable a and make a lasting contribution. The social
Amplats social strategy HOW DO WE PLAN TO INTEGRATE SUSTAINABILITY
To enable a sustainable business and thriving communities by enhancing our social licence to operate Strategic objectives Socio-economic Stakeholder Sustainable development engagement and development communication
1 2 3
{ Regional economic development To become the industry benchmark for: { Develop and embed site sustainable – Focused on benefi ts in host areas { Proactive stakeholder management and mining plans – Leveraging funding and partnerships relations { Trusted corporate citizenship (human – Collaborative approach { Risk and reputation management rights and accountability) { Integrating land management, water { Internal and external brand equity – { Thriving community through a healthy management and development Amplats in SA and Zimbabwe environment initiatives (agriculture and agro- { Infl uencing policy (land, water and { Meeting requirements of social way processing) energy) { Social risk assurance and impact { Implementing site social plans { Interfaith group – roll out and management { Local procurement continuous engagement (social { Resettlement and land access/ Key focus areas – Zimele supplier development compact) management – Focus on host communities { Community communication – internal { Sustainable leasing model – Regular monitoring and reporting and external { Develop sustainable broad-based – Cross-functional initiative { Engaging with all levels of government ownership model { Community participation and civil society organisations { Social licence to innovate – Alchemy { Effective crisis communications { Assess and address emerging trends – Equity through partnerships { Applaud recognition scheme that might impact the business – Active suppliers to the mine –Pa rtnership framework development – Skills and capacity development { Facilitate development (Northam); safety (Eastern Limb); land development (process sites)
➊ Anglo American social way ➋ Capability and team effectiveness ➌ Effective IT and people systems ➍ Social risk managed ➎ Stakeholder mapping and engagement processes ➏ Impact management ➐ Purpose-led, high-performance culture and mindset ➑ Government relations guideline ➒ Data analytics and intelligence Key enablers
Creating a Economically Our stakeholders Zero costs of Informed Negative social megacity at diverse and Conducive policy trust and welcome community and engaged and environmental Amandelbult sustainable environment our presence in confl ict stakeholders impact mitigated through communities the area looks like partnerships What success
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PILLAR: SOCIO-POLITICAL
SOCIO-POLITICAL CONTINUED
The sustainable development pillar is strategy for all our sites, aimed at community forums that are now fully aligned with the Anglo American group delivering lasting benefi ts for the operational at each site, and concentrated sustainable mining plan, featuring three communities in which we operate. on stabilising our relationships with global sustainability pillars and associated government and communities. We are Stakeholder engagement was again an global stretch goals. working with interfaith groups as a trusted important focus in 2019, with Amplats and credible stakeholder in the community We remain focused on meeting our responding to the needs of diverse and ensuring faith leaders have input in commitments for 2016 to 2020 social and stakeholders, each presenting a unique rebuilding communities. Although some labour plans (SLPs). Our stakeholders are opportunity to communicate our strategic issues such as unemployment, lack of more involved in the delivery of SLPs and intent to enhance stakeholder inclusivity by procurement opportunities and dividend we monitor and evaluate the impact of building stronger and more effective structures persisted, we remained each project. This is part of the broader relationships. We built the foundations of committed to effective engagement socio-economic development (SED) effective engagement by setting up processes.
SOCIAL REPORTING – QUANTITATIVE DATA Please indicate below to what extent your company reports on social key performance indicators (KPIs) in the public domain and provide the targets linked to these indicators.
KPI Target Actual performance
Anglo American social way compliance monitored Target 2019: 3.2 4.1 through annual audit
ANGLO SOCIAL WAY COMPLIANCE The Anglo American social way defi nes the governance framework for social performance. It specifi es concise requirements for lal group-managed sites to ensure systems are in place to: engage with affected and interested stakeholders; avoid, prevent, mitigate and, where appropriate, remediate adverse social impacts; and maximise development opportunities. These requirements refl ect evolving expectations and international best practice including: the updated International Finance Corporation (IFC) performance standards (2012); UN guiding principles on business and human rights; and the voluntary principles on security and human rights (a collaborative global effort by governments, major multinational extractive companies and NGOs).
Social-way requirements apply to the lifecycle of our activities: from exploration through project development (concept, prefeasibility and feasibility stages), construction, commissioning, operation, closure and post-closure.
Our social performance principles include: { Deliver a lasting positive contribution to communities { Manage risks and impacts { Respect human rights { Engage with affected and interested stakeholders { Empower vulnerable and marginalised groups { Integrate social performance within relevant operational processes.
Annual social-way assessments were conducted in 2018 for all our sites, and externally. On a scale of 1 to 5, with 5 being the highest, sites scored between 3.6 and 4.5 (3 and above indicate compliance to social-way requirements). The Amplats business unit average was 4.1 for 2019.
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TSWELOPELE – OUR SOCIAL PERFORMANCE MANAGEMENT SYSTEM Tswelopele (Setswana: to move forward) was launched in late-2017. The system enables us to capture, interpret and manage all social information across our operations. This repository of data supports improved and informed management of social processes, governance, risk and compliance.
In addition to the ten modules launched between 2017 and 2018, a highlight was the launch of the Anglo American social way module. This allows our sites to conduct social way self-assessments and develop associated improvement plans.
Policies and documents Contract management
Objective and targets Development projects
Ad hoc actions Social labour plan Stakeholder engagement
Requests and commitments Mining charter Grievances
Stakeholder management Social incident management Land access and resettlement
Anglo Action Maintenance American Dashboards manager social way
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management. socio-economic assessment toolbox OUR COMMUNITIES (SEAT) that details how our operations The future of our business is linked with OUR APPROACH TO CREATING affect each community. We can then the future of communities in our operating SUSTAINED ECONOMIC AND engage more effectively, accountably areas. To support the sustainability of our SOCIAL BENEFIT and transparently. business, we invest in our communities by Stakeholder inclusivity underpins our Many of these programmes run in creating social and economic benefi ts that approach to value creation and is integral partnership with non-governmental meet explicit needs during and beyond the to securing our social licence to operate organisations, communities and local life of a mine. (refer to page 120). We intensifi ed our governments. Our approach is informed stakeholder relationships in 2019 to build Group-wide strategy by regulatory requirements such as the relationships. We recognise more needs to Anglo American social way South African mining charter and our be done to manage and build relationships compliance social and labour plans (SLPs), and is if we are to maintain the trust and The Anglo American social way defi nes implemented through a comprehensive acceptance of our stakeholders. the governance framework for social set of social performance requirements performance. It specifi es concise Real-time insight into community detailed in the Anglo American social way. requirements for all group-managed sites perceptions Our social performance department works to ensure systems are in place to: engage In striving for better stakeholder closely with our sustainability, supply chain with affected and interested stakeholders; engagement, three years ago we and local procurement departments to avoid, prevent, mitigate and, where participated in a pilot project that provides promote socio-economic upliftment in appropriate, remediate adverse social real-time insight into community communities close to our operations and impacts; and maximise development perceptions around our Mogalakwena areas from which we draw our labour. opportunities. These requirements refl ect Mine. The project used SMS technology evolving expectations and international for community perception surveys and We also aim to align our social and best practice including: the updated was developed with Australia’s infrastructural investment projects with International Finance Corporation (IFC) Commonwealth and Scientifi c Industrial municipal, provincial and national performance standards (2012); UN guiding Research Organisation, a pioneer in development plans. All our operations principles on business and human rights; measuring social licence to operate. have functioning community engagement and the voluntary principles on security forums, leadership forums or task teams During the project, over 1,800 community and human rights (a collaborative global (in the case of Mogalakwena), nominated members across the four sites completed effort by governments, major multinational and elected by the communities and a baseline survey and then, using SMS, extractive companies and NGOs). meeting at least quarterly. updated their views on each mine’s Social-way requirements apply to the progress against the key drivers of our In addition, the different communities have lifecycle of our activities: from exploration social licence to operate. This provided established business forums in their areas, through project development (concept, valuable insight into our strengths and which engage with the mines on business prefeasibility and feasibility stages), weaknesses, and supported the issues and opportunities. We continually construction, commissioning, operation, development of a strategic approach to monitor the quality of our engagement and closure and post-closure. maintaining and enhancing our social the structures and communication licence to operate. channels in place, especially at community Our social performance principles include: level, to ensure these are effective. { Deliver a lasting positive contribution to The mines continue to engage with communities stakeholders to address issues raised in Our commitment to social development in { Manage risks and impacts the survey. The fi eldworkers’ strategy Zimbabwe parallels our commitment in { Respect human rights has been rolled out in Mogalakwena, South Africa. At Unki Platinum Mine, our { Engage with affected and interested Amandelbult and Rustenburg and over corporate social investment initiatives stakeholders 100 youth trained and employed as include sports, arts and culture, health and { Empower vulnerable and marginalised fi eldworkers from surrounding food security, and supporting vulnerable groups communities to conduct door-to-door groups. { Integrate social performance within engagement with residents and provide relevant operational processes. feedback and progress on pertinent Fines or directives issues. No social compliance fi nes or non- Results for the 2019 assessments marked compliance directives were received a signifi cant milestone as all our sites These initiatives are helping to restore in 2019. achieved compliance against this trusting relationships with our communities framework. On a scale of 1 (reactive) to as they are openly communicating with the Distributing economic value 5 (resilient), our sites scored between mine through their representatives and Our licence to operate depends on our 3.6 and 4.5 (3 and above indicates receiving fi rst-hand information as ability to ensure our stakeholders compliance to social-way requirements). individuals. participate in the economic benefi ts we The Amplats business-unit average was generate, and that our activities leave our Understanding that each community is 4.2 for 2019, which means that our host governments and communities with unique, we use our industry-leading business is proactive in social performance a fi rm foundation for a sustainable future.
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The fact that we are a major mining shareholding in our company. The Alchemy FUNDING COMMUNITY EMPOWERMENT VIA company raises particular expectations. DIVIDENDS TO ALCHEMY development structures are tools for empowered communities and Through our core activities – which require (Rbn) development partners to participate in Amplats to employ people, pay taxes to 120 116 creating a sustainable future. governments and procure from host communities – we make our most 100 Alchemy is well aligned with the vision signifi cant contribution to the South 80 outlined by President Cyril Ramaphosa at African and Zimbabwean economies. 60 the mining indaba in 2019. All fi ve trusts and the non-profi t company (NPC) have The total value disbursed directly by 40 29 21 been established as agents for multi- Amplats in 2019 was R116.4 million 20 stakeholder local development, with (2018: R29 billion). Based on the dividend 0 communities having a direct say in their of R23.5 million, the Alchemy Trust 2017 2018 2019 destiny. The trusts and NPC are actively (detailed below) received a dividend consulting with the communities they payment of R46.5 million. Through the serve within the 15km to 50km radius from multiplier effect, the positive economic Alchemy – community empowerment Mogalakwena, Amandelbult, Rustenburg contribution of our operations extends and development and Twickenham, as well as the labour- signifi cantly further. The Amplats community empowerment and development programme (known as sending areas of Taung in the North West A number of empowerment transactions Alchemy) was launched in 2011. This province, OR Tambo district in the Eastern and joint ventures support our pioneering programme promotes thriving Cape, Lesotho and Mozambique. transformation goals. As an example, communities and sustained local, inclusive project Alchemy enables local communities community development through and to participate directly in Amplats, with beyond mining, leveraging communities’ progress summarised below.
Dikuno Tsa Rustenburg Ditholwana Bohwa Zenzele Sechaba Development Tsa Rena Bja Rena Itereleng non- Development Trust Development Development profi t company Trust Trust Trust
Lefa La Rona Trust ➧ ➧
FOUNDER TRUSTEE
PLATINUM
Highlights and priorities toward the Alchemy vision of sustainable and 2019 to enhance local relevance and All the representative structures are and thriving communities, through and impact. Ditholwana Tsa Rena Development registered, certifi ed as public-benefi t beyond mining. Trust and Bohwa Bja Rena Development organisations, and audited. They are Trust will appoint community trustees in The trusts and NPO are led by headed by senior operations managers 2020. In the consolidation phase, experienced, independent trustees. as well as project development and community trustees will have the majority Rustenburg Development Trust and implementation units, and are actively voice in these structures, ensuring full Dikuno Tsa Sechaba Development Trust engaging with stakeholders in alignment with the development visions of appointed community trustees in 2018 implementing development projects, local communities.
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Alchemy development structures are set up to drive local impact in a four-phased approach.
3/10 years 11/30 years 30 years+ Phase Foundation Consolidation Operational Full
Description Critical period ensuring First phase of fully Second phase of fully Potentially post-mining effective start-up capacitated trust consolidated trust phase of self-suffi cient structure, including structure trust operation community trustees on board
The Dikuno Tsa Sechaba Trust, { Supplier development { Through digital innovation, and to Rustenburg Community Development { Diversifying the local economy beyond enhance grassroots communication, Trust and Zenzele Itereleng NPC have mining, particularly agriculture in rural collaboration and positive impact in already transitioned to the operational and peri-urban communities (facilitating communities, the trust is pioneering phase. The other trusts will achieve the agricultural capacity-building and a free community-wide wi-fi same status in 2020, after electing offtake agreements) development platform (detailed above). community trustees. Weekly and monthly { Digital enablement of local businesses, The R1.3 million platform, including consultative and progress update community-based organisations and infrastructure and data, went live at meetings with various stakeholders take development initiatives. four schools in 2018 and was offi cially place, ensuring local relevance, improved launched in November 2019 across To date, the trusts have received impact and alignment with communities. the broader community. R454.4 million in funding through the Community development project dividend/safety net; CSI; safety, health Ditholwana Tsa Rena Development Trust funding and environment (SHE) KPI programme; { The early childhood development (ECD) With Amplats again paying dividends, the and interest. and non-governmental organisation advantage of shareholding/ownership is (NGO) capacity-building course Signifi cant projects highlighted with communities participating participants graduated in December Dikuno Tsa Sechaba Development Trust directly and experiencing the benefi t of a 2019, strengthening critical (Amandelbult) profi table organisation in their midst. On a development services in the community { The trust has implemented the practical level, the process of engaging on { This trust has also implemented the pioneering free community-wide wi-fi and prioritising community needs by the pioneering free community-wide wi-fi development platform to strengthen the trustees has matured commendably in development platform. This platform community life cycle from prenatal care, recent years. went live during a testing phase and schooling, post-schooling, skills for was offi cially launched in December The 2019 corporate social investment plan employability, SMME and 2019, reaching communities in a 15km included extensive local stakeholder and entrepreneurship to frail care for the radius from the Mogalakwena mining community consultation to maximise local aged. All the trusts/non-profi t operation. benefi ciation. While responding to companies (NPC) have launched free Bohwa Bja Rena Development Trust immediate community challenges, community wi-fi development platforms (Twickenham) including food security, access to drinking { With only some 5% of matriculants { The ECD and NGO capacity-building water and dignifi ed livelihoods, the trusts pursuing post-schooling opportunities, course participants graduated in and NPC are entering into strategic in 2019 the trust awarded bursaries to December 2019, strengthening critical partnerships to plan and implement 15 local youth for studies at institutions development services in the community medium to long-term strengthening of of higher learning. Bursaries cover { Like the other trusts, the free systems, and asset-based community registration, tuition and accommodation. community-wide wi-fi development development programmes to respond to Rustenburg Development Trust platform was offi cially launched in complex local challenges. Focus areas { The R42.3 million Mfi dikwe waterborne December 2019, reaching communities include: sewerage project includes 411 stands across a 10km radius from the { Strengthening education and health in a collaboration between the Royal Twickenham mining operation. systems, and infrastructure Bafokeng, Sibanye-Stillwater and the { Integrating fourth industrial revolution trust (which contributed R27.3 million) skills for meaningful employment to enhance health conditions in the { Entrepreneurship and small, medium community. Despite delays with service and micro-enterprise (SMME) providers, the project will be completed development by the fi rst quarter of 2020
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Zenzele Itereleng NPC (labour-sending The trusts/NPC are leveraging these COMMUNITY DEVELOPMENT areas) strategic partnerships to pioneer access PROGRAMMES { The NPC co-invested R4.75 million in to a wide range of development services, In 2019, the total social investment spend input costs (together with Tiger Brands) including over 10,000 units of free was R619 million, which included SLP and via rotational loans to support the courseware to all local SMMEs, corporate social investment (CSI) spend production of 3,000 tonnes of super- entrepreneurs and youth via their in South Africa of R231.2 million (2018: grade wheat which was harvested by community-wide wi-fi platforms R254.2 million) in line with mining charter 57 farmers in Taung (North West) in (detailed above). The IBM Digital-Nation requirements, and in Zimbabwe of November 2019. The profi t of around Africa fourth Industrial Revolution courses, R9.3 million (2018: R9.95 million). R2.5 million from the Tiger Brands together with Microsoft’s Virtual Academy offtake agreement has positively and massive open online courses, provide Since 2010, we have initiated 114 projects impacted 127 benefi ciaries. This free ubiquitous access to benefi t through our SLPs. By the end of 2019, we pioneering programme that unlocks communities to increase the miniscule 5% had completed 113 with the fi nal project market access for emerging black of youth participating in post-schooling due for completion in 2021. The remaining farmers will contribute to uplifting the studies, and enhance their livelihood project is the road being built in broader community through local prospects. The aim is to help reduce the partnership with Road Agency Limpopo in economic development high unemployment rate (some 65% youth Twickenham and we continue to report { The NPC’s pioneering free community- unemployment) in these mostly rural and progress to the DMRE as required. There wide Wi-Fi development platform in peri-urban communities by aligning with were delays in fi nalising this project and we Taung was offi cially launched in the skills requirements of the future global are continuously engaging with the Road November 2019, reaching communities economy while matching existing skill sets Agency Limpopo and relevant government in a 10km radius. to available job opportunities via the departments to deal with these issues. development platforms. Most completed projects have been Social return on innovation for handed over to the relevant benefi ciaries. positive, transformative impact On the journey to maturity and considering After submitting new SLPs in 2015, we the needs of the trusts and their benefi t began implementation in 2016. We communities, all trusts/NPC are leveraging committed to deliver 74 projects and, additional development vehicles, including to date, 44 have been completed. scalable innovative social investment The other 30 are in different stages of (projects/programmes with greater social implementation. return on investment and innovation), resource mobilisation, lobbying and advocacy in support of positive impact in Mine community development expenditure in 2019 was allocated to the following projects: benefi t communities. Training workshops on design thinking, theory of change and TOTAL SOCIAL INVESTMENT SPEND IN 2019 (Rm) social return on investment were conducted in late 2019 with all the trusts/ 9.3 6.4 33.8 NPC, and these frameworks have been 79.1 Q Health and social welfare embedded into their operating models 162.5 Q Education and skills development and practice to ensure so-called impact- by-design. Q Infrastructure Q Enterprise development Fulfi lling their role as facilitators in realising 74.4 Q Community trusts and resettlement the Alchemy vision, the trusts are playing leading roles in pioneering integrated, Q Community dividends 26.6 Q Other (Alchemy, interfaith programme and site-based development implementation other donations) plans in collaboration with teams from 227.1 Amplats (sustainability, social performance, Q Unki CSI supply chain, community regional development, Zimele, mining operations 2019 and more), Anglo American’s South Rm African education initiative, corporate partners like Tiger Brands, Vodacom, Total social investment 619 Microsoft and IBM, aligned with national, CSI spend* 240.5RA provincial and local/traditional RA government initiatives. This collaborative Reasonable assurance provided by PwC. Refer to page 144 for the independent assurance report. * Including Unki, excluding overhead costs. development approach will continue in 2020 and beyond to ensure integrated, effi cient and greater positive impact in communities.
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SOME OF OUR COMMUNITY DEVELOPMENT FOCUS AREAS:
Estimated Focus area Progress benefi ciaries
Health and welfare Limpopo province Our investment in healthcare We have completed the Sekuruwe clinic and Naledi clinic in partnership with refl ects our desire to address the the provincial department of health. These clinics have been handed over to more immediate needs of our the department. The Sekuruwe clinic was offi cially opened by the MEC of communities, ensuring they health in Limpopo. We previously handed over two ambulances to the MEC have access to healthcare to support the Mecklenburg Hospital close to our Twickenham operation. facilities that protect their right to live healthy lives. North West province We began construction of Lenchwe clinic in the Mokgalwaneng village, close to our Amandelbult operation. This is due for completion in 2020. In addition we initiated the health baseline study around our operations in both provinces to establish the current status and guide the areas on interventions in our 2020 planning with the Department of Health. Education and training We invest in youth development and education programmes in communities We invest in education as the near our mines. In 2018 we launched the early childhood development (ECD) most effective way to reduce programme and supported nine ECD centres in Mogalakwena, Twickenham poverty and make a sustainable and Amandelbult with 858 learners participating. The leadership and 858 learners difference in the lives of our character-building programme was rolled out to Amandelbult and 3,218 learners; communities. Twickenham areas, with 3,218 leaners, 149 teachers and 4,076 parents 149 teachers, participating. We have seen signifi cant improvement in all schools where our 4,076 parents programme is being implemented: Modise School achieved a 100% pass rate and the six schools in Mapela were all in the top 10 performing schools in that district Schools infrastructure Mogalakwena Mine is constructing additional blocks of classrooms and administration facilities at Maleya, Kgwahlele and Mphunye schools. Kgoshi Manotshe, Thekganang and Kwena Tlase in Amandelbult as well as Lephenye and Tekanang in Twickenham are all under construction and due for completion in 2020. Learners at 10 schools We continue to provide water and build decent sanitation facilities at schools around our mines. In 2019, sanitation facilities in 10 schools were upgraded. The 10 best-performing learners from different schools around Mapela were offered full scholarships to attend one of the best private schools in Limpopo. The mine has contributed R12.7 million to the Limpopo Education Trust to construct the new Seritarita school. The mine and department of education are engaging the Skimming community to begin construction. Agriculture and environment We continue to invest in agriculture by supporting four farms managed by This economic segment offers different cooperatives that have created 46 permanent jobs. The farms in St signifi cant employment George and Kalkfontein, close to our Der Brochen project, were given back to opportunities and livelihood communities through the land-restitution process and we continue to work resilience. Our agricultural with them to ensure the land is being used effectively. The Ga-Mashabela projects support farmers in poultry farm is doing well, with the cooperative supplying eggs to local launching new agricultural markets. businesses on their own or communal land. Mogalakwena Mine sponsors and supports 20 eco-schools in the area. The mine’s successful Groenfontein farm and training centre offers courses in permaculture and cattle management to local communities. It has also been developed into an agri-ecological incubator to support agricultural and sustainable development projects in neighbouring communities. For the youth, it offers a sustainable development course linked to the international eco-schools programme. In 2019, Mogalakwena trained 95 local entrepreneurs through its supply chain.
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Estimated Focus area Progress benefi ciaries
Enterprise development Our initiatives to support localised procurement and supplier development This takes place through various contribute to skills development, create jobs and support emerging programmes and in conjunction businesses. Our enterprise development programmes are designed to build with our supply chain team. We resilience in host communities and a more robust and competitive supply also draw on Zimele, the Anglo chain for Anglo American. For more information on how we are transforming American-wide initiative that our supply chain, see page 128. is a catalyst for emerging black businesses in South Africa, supporting commercially viable small and medium enterprises by providing skills training and funding. Infrastructure Working with partners to provide infrastructure that can be used during and (roads, housing, water and after mining activities is important in creating sustainable value for our host sanitation) communities. Our mines are often in areas that are underdeveloped and A key feature of our SLPs is a remote, where we can share infrastructure, such as roads, health facilities and commitment to infrastructure water, with local communities. development. We aim to ensure our operations’ infrastructure Working with the Road Agency Limpopo and Department of Public Works, projects complement the we are constructing a 20km road at Twickenham. Amplats has contributed integrated development plans R47 million to the project, and over 100 local jobs have been created. There (IDPs) and priorities of local have been delays in fi nalising this road and we are in continuous talks with municipalities. the Limpopo government through the premier’s offi ce and DMRE. We estimate that the road will be completed in 2021. The project to electrify over 920 households in Ga-Mampa and Phasha- Makgalanoto villages has been completed and handed over to the Fetakgomo Tubatse municipality. We have installed solar street lights in fi ve villages around our operations in Mogalakwena, Twickenham and Der Brochen, with growing demand to reach more villages. This has reduced the cost of street lights signifi cantly. Mogalakwena has completed a project to provide access to water for 70,000 members of Mapela community, in partnership with Mogalakwena municipality and the Mapela traditional authority. To date, over 70,000 people in Mapela have access to clean water and this project was completed in 2019. Community trusts Community trusts are an important means to support community (including Alchemy) development initiatives. Four have been established to date. Alchemy is our R3.5 billion BBBEE ownership programme. It Project identifi cation and implementation is progressing well and 70% of is designed to promote long-term funds received have been approved for projects. Of the R69 million in sustainable development in host approved funds, R22 million was disbursed by the end of 2017. communities and key labour- sending areas that do not benefi t from our other BEE programmes.
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Indigenous rights policy { Incorporating the views of affected There were 21 level 3 to 5 social incidents The Anglo American social way guides our communities into operational and reported in 2019 compared to 20 in 2018. social performance compliance in project decision-making Of concern was the increase in level 4 engaging with indigenous people. In South { Reporting to affected communities and (high) incidents from four in 2018 to six in Africa and Zimbabwe, no community other stakeholders. 2019. Most of these incidents related to groups have been categorised as third-party vehicle incidents outside mining Responding to community concerns indigenous people. operations. In response, all our operations and impacts collaborated with strategic stakeholders to Active community engagement We believe our fi rst duty is to behave in a initiate intensive road-safety campaigns In line with the requirements of the social way that respects the human rights of targeting our communities, employees and way, all our operations have developed employees, host communities and contractors. plans to map key stakeholders and detail business partners. Beyond initiatives to methods of engaging with them. All benefi t our host communities, we aim to Resettlements and improving access operations have community engagement respond promptly to any negative impacts In the development phase of our mines, we may cause. forums, with monthly discussions on we plan projects to avoid or minimise progress as well as feedback on key social Where there has been physical resettlement. Our standards align with initiatives and issues. resettlement of people or heritage sites, Anglo American and stipulate that all such as relocating graves, we continue resettlements must at least meet the The fi eldworkers’ programme enlists to ensure the impact is minimal. International Finance Corporate (IFC) previously unemployed youth from our performance standard on land acquisition host communities to engage with and Community complaints and incidents and involuntary resettlement, and must provide feedback directly to communities Responding effectively to community demonstrably improve the livelihoods of in their own homes. complaints and expectations underpins resettled people. In line with the IFC good relations. Community expectations standard, each resettlement must also be Our community newspapers, recognised and the lack of development in some of planned and implemented in a as ‘best publication with a limited budget’ our neighbouring communities pose participatory manner. in the South African Publication Forum challenges for those operations, as corporate awards, have far-reaching demands on the mines to provide basic Corporate approach to resettlement impact by consistently providing feedback services and employment spiral. In line with the International Finance to our communities. The interfaith group Corporation (IFC) performance standards In 2019, 122 level 1 (insignifi cant) – level 5 programme, which includes church 1 and 5, an environmental and social (major) community complaints were impact assessment must be conducted leaders and other traditional healers to submitted through formal procedures at prior to resettlement. This assessment ensure inclusivity, now encompasses over our operations (2018: 139), mostly on local stipulates that a social management plan 500 leaders and forms part of the employment, procurement opportunities is designed to mitigate risks, deal with Courageous Conversation Movement to and environmental impacts. All were issues and restore communities. A foster engagement between the mining assessed and complainants kept informed remediation action plan and livelihood industry and churches to address issues throughout the grievance and complaints restoration plan are designed to guide that affect our host communities. process. We aim to resolve all complaints implementation, monitoring and provide as quickly as possible. Community consultation framework evidence of improvement. The overall approach is to conduct resettlement as a and implementation COMMUNITY COMPLAINTS last resort and, if it cannot be avoided, to Our community engagement adopt like-for-like replacement that methodology covers: 160 147 139 protects the community structure. { Identifying affected communities and 140 122 the range of stakeholders 120 { Implementing a stakeholder 100 engagement plan, which is in place for each of our operating sites 80 { Providing affected communities with 60 access to information through relevant 40
structures, such as community 20 engagement forums, community 0 newspapers and community radio 2017 2018 2019 stations { Enabling affected communities to express their views on operational and project risks through grievance and engagement mechanisms
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Case study: UPDATE ON MOTLHOTLO Armoede and Rooibokfontein Independent resettlement review RESETTLEMENT { Option 3: a location of their choice In 2015, our sustainability department To expand Mogalakwena Mine, we within a 50km radius of initiated an independent review on four needed to acquire land previously Mogalakwena Mine. resettlements: Mogalakwena (Ga-Pila, Ga-Puka and Ga-Sekhaolelo) and occupied by the community of Of the 156 households, 92 have relocated Twickenham (Makobakoba). The aim Motlhotlo to dump waste rock. to option 2, three have selected option 3, was to ascertain the status of resettled Motlhotlo is north-west of the mining pit and the 61 households remaining at communities in line with the IFC’s and resettling the remaining households Motlhotlo have selected option 1. After resettlement performance standard 5, is strategically important for the two households indicated that members as well as Anglo American Social Way continuity of our fl agship operation to: would remain on the land, a separate requirements. { Eliminate health and safety risks charter was issued to formalise the for households in the mining area relocation project for the remaining Due to setbacks (including unavailability { Give Amplats full access to the 61 households. of key documentation, community’s approved leased mining rights area reluctance to participate and The main challenge was to identify suitable and reduce reputational risks caused community confl ict), the review process land for relocating the households. The by unauthorised access by the was suspended in 2016. public land needed to comply with the Spatial { Fully use dump space and reduce Planning and Land Use Management Act At the beginning of 2018, consulting operational costs. 16 of 2013 and be accepted by the fi rms were re-engaged to complete community. A portion of land in ext 14 of the review, and present to Amplats with The Motlhotlo resettlement was initiated Mokopane was identifi ed, as well as a an assessment of the status of resettled in 2005 and all 956 households agreed portion of land in ext 12. The community communities and recommendations to relocate. Subsequently, and their lawyers selected ext 14A where to address identifi ed risks. The review 64 households retracted their decision, the land is fully serviced and roads were for Mogalakwena was completed electing to remain on the property. The being tarred. The community also liked in September, with fi ndings number of households at Motlhotlo show houses built for employee housing. and recommendations presented grew from 64 to 156 by 2012. After presenting the land options to the to Exco. Community Property Association (CPA) for Following negotiations, a relocation Based on the independent review on initial approval, the land was then shown agreement was signed with the the resettled communities at to the community. The majority (47/61) of community in mid-2012, and we Mogalakwena, exco resolved that eligible households selected the option. appointed external experts to develop a signifi cant remediation is required to resettlement action plan. The primary Subsequently, entitlements outlined in address the risks and gaps identifi ed. objectives of this plan were to: the 2012 agreement were re-evaluated The focus will be on implementing { Consolidate and build on existing to compensate for the challenges of rapid-impact projects in the resettled resettlement planning urban living. The entitlements and required communities. An integrated remediation { Include all negotiated agreements support were formulated into a relocation monitoring and evaluation schedule and confl ict-resolution activities action plan and a livelihood restoration and budgets have been developed (which have characterised the plan, with an appropriate budget against the recommendations of the Motlhotlo resettlement process) approved by the Amplats’ executive forum review report. { Document and fi nalise the relocation committee (Exco). agreement between Amplats and the The next steps include the remaining households. An addendum to the 2012 agreement implementation of an extensive was drafted and approved by most of engagement and communications plan The plan was developed in line with the the community in August 2018. House to communicate the fi ndings, policies, legal and institutional construction began in November and recommendations and remediation plan framework of South Africa, as well as implementation of the livelihood restoration emanating from the review and the demographic and socio-economic plan in January 2019. The fi rst activities structural assessments. This will be characteristics of the affected were house construction and providing followed by further development of the community. In addition, it was informed transport to schools and the construction Integrated Remediation Plan in by the internationally accepted site. The children of consenting partnership with the affected good-practice guidance in the IFC’s households also started 2019 in their communities. After that, the performance standard on land new schools. remediation plan will be implemented acquisition and involuntary and progress closely monitored. resettlement. The mediation process outlined in the 2012 agreement is being followed with the The 2012 agreements set out three remaining 14 households. The objective is resettlement options for the Motlhotlo to fi nd a suitable alternative relocation site households owners to move to: as per option 3 of the agreement for these { Option 1: an agricultural farm households. (Klipfontein and Tobias Zyn Loop farm) at Mookgophong { Option 2: the new villages at
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Case study: UPDATE ON MOTLHOTLO RESETTLEMENT CONTINUED
Before resettlement
During resettlement
After resettlement
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Case study: COMMUNITY DEVELOPMENT communities and mainstream gender, These have been successfully Interfaith programme human rights, generational and ethical implemented and the ICT a mechanical Effective stakeholder engagement is conduct as well as demonstrating humane hub will be offi cially opened in 2020. approaches in dealing with communities. one of the key pillars in our strategy and Key highlights to date include: the Anglo American social way. We also We started a pilot project in Mogalakwena { Successful roll out of the project to aim to preserve the culture and heritage premised on working with faith groups Twickenham and Der Brochen of host communities. and their leaders to advance community { There are currently 255 leaders on While we had successes with our past development in 2016. We went through a the programme in Mogalakwena, work, it is now opportune to align our process of mobilising all churches in this Der Brochen and Twickenham strategy with innovative ways of area, ensuring pastors understood our { The programme is currently engaging with stakeholders who were core values and identifying key community employing 88 graduates. projects they would want us to support. not prioritised in the past. Increased service uptake and ultimately Given greater demand to deepen our A total of 160 pastors from different create alternative innovative structures engagements and strengthen trust with churches in the area were rallied to work that can advance community the communities we work in, we believe towards the core values of unity, love and development while showcasing our the inter-faith programme is an service. They identifi ed six projects that work and enhancing our reputation. we should work on together: moral appropriate approach. Past channels The program is now being rolled out to regeneration to curb moral decay in the we have used to work with Rustenburg, Polokwane and communities; early childhood development communities include traditional leaders, Amandelbult. One of the key success (ECD) and teacher mentorship; IT services political formations, government, and factors we look forward to is faith for youth, including literacy through community engagement forums. leaders intervening and mediating on training; basic fi nance training, which However, various issues, primarily divisions and confl icts in communities, builds fi nancial literacy by covering issues rooted in the incapacity of these and reconstructing our society. structures to deliver promised services, such as debt and saving; agriculture; basic have made these traditional channels ethical conduct and governance; and and structures increasingly lose basic counselling and trauma support. authority, legitimacy, acceptability as well as the ability to mobilise communities on community development issues. As such, a one-dimensional, parochial association with these structures raises risks for all parties. Against this background, it was imperative to fi nd alternate structures and systems that could be used to facilitate dialogue on community development while maintaining good and credible relations. We proactively began working towards this in 2016. The key criteria in selecting novel avenues and structures included: past and current interactions with communities, the respect specifi c structures receive from communities, services coverage and uptake, reputation, credibility, awareness of community issues, ability to mobilise
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Case study: ZIMELE – HELPING { Supplier development, by leveraging the It continues to provide low-interest loan ENTREPRENEURS STAND ON group’s existing inclusive procurement funding to host community-based THEIR OWN FEET spend and helping host-community suppliers/enterprises through a OUR PARENT’S ENTERPRISE suppliers access new markets partnership with Absa. In 2019, Zimele { Youth development, through training for approved 12 loan transactions and AND SUPPLIER DEVELOPMENT relevant skills that make economic disbursed of R23.4 million while PROGRAMME, ANGLO AMERICAN opportunities more accessible for youth supporting 56 jobs. ZIMELE, AIMS TO SUPPORT 10,000 in host communities. JOBS BY 2022 AS PART OF A WORKING ON HAZARDOUS NEW APPROACH TO BUILDING Anglo American Zimele’s existing hubs in WASTE – AHOY host communities will adopt a SUSTAINABLE SMALL, MEDIUM ENTERPRISES multifunctional approach by incorporating AND MICRO ENTERPRISES (SMMEs) Ahoy Enterprises was founded in 2014 these key elements. They will focus on on the back of a small contract from IN COMMUNITIES WHERE THE supporting SMMEs and the youth in these Mogalakwena, with a staff complement GROUP HAS OPERATIONS. host communities through mentorship in of just four: the two co-founders and areas like general business acumen, Anglo American Zimele has been the two employees. Today, it has 46 people safety, innovation and technical capability. leading supporter of small business in on-site at Mogalakwena alone, to the country for the past 30 years, Importantly, this is a demand-led maintain pollution control dams and funding over 2,300 SMMEs and programme. We do not only offer manage hazardous waste and any supporting more than 50,000 jobs. development and access to funding, spillages from operations. To address South Africa’s economic we also invest in partnerships that assist The support of Zimele and Amplats has challenges and the national priorities entrepreneurs and youth to gain access been instrumental to their growth and of reducing unemployment and poverty, to markets in the mining value chain and success, says Valoyi: “Zimele helped us it will put greater emphasis on beyond. Ultimately the growth, passion with the fi nance to purchase critical mentorship, while focusing on youth, and success of each business or individual equipment, like our three skip trucks supplier and enterprise development lies in the hands of the participant – our and 200 hazardous waste skips. It has along with broader partnerships. role is to support them with tools and also provided intensive business skills networks to support the journey. We have been helping people stand training and mentorship, which has on their own feet for over three Zimele (isiZulu for stand on your own two really helped us understand what is decades and will continue with this feet) was established in 1989 to develop needed to run a sustainable, healthy single-minded aim – but differently. Our emerging black businesses, empower business.” initial goal was to enable black South entrepreneurs and facilitate job creation. The success of small businesses like Africans to participate in the economy, Since then, it has played a pioneering role Ahoy Enterprises highlights the need to but current unemployment levels mean in accelerating the pace of change in build sustainable SMMEs that can grow that providing funding is simply not South Africa’s SMME market. The revised their businesses, in turn creating and enough. By focusing on mentorship as model of entrepreneurial development sustaining jobs in communities around much as enabling funding, we will build – through sustainable local procurement the group’s operations. sustainable SMMEs that can grow their activity – will have a lasting impact on businesses and, in turn, create and communities across the country through We view entrepreneur development as sustain jobs. skills development, job creation and a major factor in creating sustainable The Zimele repositioning forms an thriving businesses. businesses and communities that will integral part of Anglo American’s thrive long after the mining operations ambitious sustainable mining plan. One PROGRESS UPDATE (2019) they serve are gone. of the pillars of this plan is to create fi ve Mentorship programme jobs off-site for every job on-site in our Zimele expanded its service offering to host communities. We believe this will Amandelbult operations in February 2019, have a signifi cant impact on building benefi ting 63 suppliers, 207 entrepreneurs thriving communities in the areas where and 212 host communities around the we operate in South Africa. Mogalakwena, Rustenburg and Amandelbult operations. The three key programmes underpinning Anglo American Zimele’s Through this programme, Zimele is new strategy are: supporting 1,262 jobs based in these host { Enterprise development, through communities. By 2022, Zimele aims to greater mentorship and increasing support 6,366 jobs across the three the pace of economic development operations. around our mining operations
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KEY ISSUES Refer to map on page 24 for key issues, and detailed discussion in the integrated report.
OUR APPROACH TO MEANINGFUL ENGAGEMENT
We are committed to working with our stakeholders to understand their legitimate needs and concerns, and integrate these into our business to create an organisation that is sustainable and shares the value generated. This means we need to stay abreast of ever-changing relationships in our diverse group of stakeholders. We believe building quality relationships rests on recognising key factors: { A relationship is only sustainable if it provides benefi ts to both parties (sharing value) { Clear, consistent communication is the operating framework in building and maintaining quality relationships. Our business relies on diverse stakeholders and they rely on us to meet certain needs. We engage with these stakeholders in numerous ways to understand their legitimate needs and communicate our goals, creating relationships of mutual benefi t. In 2016, we mapped our stakeholders in a comprehensive process to ensure we were aware of organisations and individuals with an interest in our operations. This insight has enabled us to improve future engagements.
A summary of key stakeholder engagements in 2019 is shown below, and detailed on page 24 of our integrated report.
Quality of relationship How we engage Why we engage
Government
We engage constructively at all levels, directly and Engaging effectively and openly with government at all through industry bodies such as the Minerals levels is essential to unlocking value. We have a Council. Key issues include: responsibility to understand the expectations of { Financial state of platinum sector government and to be clear about what we, as a { Compliance with mining licence and related company, need to do to succeed. We also believe that, requirements in turn, governments have a responsibility to listen to { Labour relations and safety aspects affecting our business, engage with us and { Contribution to national developmental priorities create an environment in which our industry can make a (job creation, skills development, public health, positive long-term difference to those countries. and economic and socio-political Many of our social projects can only succeed if we transformation) engage with government and align our projects to { BBBEE legislation broader goals for the country. { Taxation policy, including royalties and carbon taxes The way companies are run determines more than just { Company developments, including strategy. their fi nancial performance. If run well, they contribute to the prosperity of the country and their host communities. In Zimbabwe, we face uncertainty on indigenisation. We maintain regular contact with government offi cials, ensure full legal and regulatory compliance in a changing environment, and invest in community and social development initiatives.
* Strong relationships Cordial relationships Weak relationships
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Quality of relationship How we engage Why we engage
Entrenching compliance
Regulatory uncertainty is an ongoing risk that we We believe pursuing the highest levels of compliance is address through active engagement, both as a an opportunity for Amplats: by adhering to regulation, member of the Anglo American group and legislation, voluntary codes and social compacts, we through the Minerals Council. Regulatory matters ensure our business practices are conducted responsibly, on a specifi c material issue are discussed in the which in turn benefi ts the areas in which we operate. relevant section of this report or cross-referenced While we strive to meet legal compliance obligations, we to our integrated report. aim to go beyond mere box-ticking to make a substantive difference. In South Africa, companies are governed by a broad range of legislation and regulation, some generic to the business world and some specifi c to mining. Mining and exploration permits are issued under the Mineral and Petroleum Resources Development Act (MPRDA) that governs technical and socio-economic issues. In addition to complying with all applicable legislation, we also comply with voluntary codes and guidelines (page 127) to manage the social and environmental risks of mining.
Partnering to align goals
We aim to work with government stakeholders to South Africa is a well-developed mining jurisdiction, with ensure regulatory and legislative developments are comprehensive legislation. balanced and promote long-term investment and We continue to partner with government in contributing industry competitiveness in the international to the goals of the national development plan (NDP) as marketplace. well as the UN SDGs, in collaboration with the offi ce of the deputy president. We work with government’s integrated development plans at provincial and local level. Given the challenge of aligning our projects to maximise benefi ts for intended recipients, we focus on working across departments internally and aligning projects across multiple government departments.
Suppliers
Engagement with a large mining supplier included Amplats makes a valuable contribution to South Africa’s quarterly meetings on key sustainability matters. transformation, economic growth and empowering local businesses through inclusive procurement and supplier development as well as industry-wide enterprise development. Refer page 128 for detailed discussion.
* Strong relationships Cordial relationships Weak relationships
We support the principles of the Extractive Industries Transparency Initiative on disclosing payments. In 2019, R65.2 billion was paid to the South African government as taxes (2018: R4.4 billion); and R2.5 million to the Zimbabwean government (2018: USD19.5 million). We do not support any political party and make no political donations.
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MINING CHARTER III Since the fi rst charter was promulgated VOLUNTARY CODES In September 2018, the minister of mineral in 2004, Amplats has aimed for 100% resources, Gwede Mantashe, published compliance – both as a regulatory TO WHICH AMPLATS the fi nal version of the revised broad- imperative and as a responsible citizen. IS COMMITTED based black economic empowerment Our approach to the latest iteration will charter for the South African mining and be the same. However, as the Amplats { International Council on Mining minerals industry (MCIII). The new charter reporting system to government is still and Metals (ICMM) maximises came into effect immediately and is being fi nalised, our disclosure for FY19 the contribution of mining, minerals purportedly published under section 100(2) is being quantifi ed. Our goal remains full and metals to sustainable of the Mineral and Petroleum Resources compliance, and we already exceed development. Anglo American is a Development Act 2002 (MPRDA). stipulated levels for several elements. founding member and Amplats has Our FY20 report will include quantifi ed adopted and complies with the This long-awaited announcement was disclosure. welcomed by the Minerals Council, Anglo ICMM’s 10 principles for The Mining Charter is to be read together sustainable development American and other industry stakeholders for providing much-needed regulatory with the Implementation Guidelines, which { We support the UN guiding were gazetted in December 2018. The principles on business and certainty for the sector. The South African mining and natural resources sector has purpose of the Implementation Guidelines human rights aspects. These are is to outline processes, procedures, forms incorporated into our policies and been widely recognised as a signifi cant contributor and potential further and templates to facilitate compliance management systems, but we with the requirements of MC III. Amplats need to enhance implementation contributor to growth and transformation in South Africa for the benefi t of all citizens. has developed fi ve-year implementation and continue to integrate the plans for licensed operations. The plans principles into our operations MCIII contains far-reaching changes and were submitted to the Department of { Anglo American is a member introduces more onerous compliance Mineral Resources and Energy in company of the UN Global obligations than those stipulated in September 2019. Compact and Amplats therefore previous versions. It continues to complies with the compact’s emphasise the need for increased The MCIII 2019 annual report will be principles participation of black people historically submitted to DMRE at the end of { Anglo American is a member disadvantaged persons (HDP) at March 2020. company of the voluntary ownership, board and managerial levels of principles on business and businesses, with more focus on including human rights (VPSHR) and procurement opportunities for businesses Amplats complies accordingly. owned by women and youth. MCIII also These principles guide companies focuses strongly on creating South African in maintaining the safety and manufacturing capability by including local- security of their operations in an content requirements in the procurement operating framework that scorecard. encourages respect for human rights { The Extractive Industries Transparency Initiative (EITI) is a global standard promoting the transparent and accountable management of natural resources. Amplats, as a member of the Anglo American group, is a supporting company and complies with the principles of the initiative.
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economy – with a specifi c focus on { Partnership Initiative TRANSFORMING OUR black-owned, women-owned and In order to overcome barriers to entry youth-owned entities as well as promoting on capital intensive procurement SUPPLY CHAIN in-country manufacturing and assembly of packages Amplats in 2019 introduces Amplats continues to make a valuable goods. a requirement for its main contractors to outsource a portion of the work contribution to our country’s Offering greater business and development packages out of their Scope of Work transformation, economic growth and opportunities to these suppliers supports to other small local businesses. 2nd Tier empowering local businesses through our vision of helping more people access Spend therefor refers to indirect spend inclusive procurement and supplier diverse opportunities, even after our to local companies for supply of goods development, as well as industry-wide operations have ceased. enterprise development. and services, through our main We have therefore adopted several contractors. A 2nd Tier spend of Through our concerted focus and inclusive initiatives to empower historically R334 million was realised in 2019. procurement initiatives, we have improved disadvantaged persons (HDPs) and { Breakthrough initiatives our BEE spend to 72% of total specifi cally host community-based – Our supply chain team is working with procurement. In the past year, we spent companies: other departments (Zimele, R3.9 billion with host community suppliers { New inclusive procurement policy, collaborative regional development and R2.4 billion with our doorstep standards and guidelines (CRD), group supply chain) on various suppliers. Mining has evolved in the past 10 years. initiatives that will accelerate As a mining company, Amplats is To become a trusted corporate leader, empowerment of HDPs, increase host regulated by the Mineral and Petroleum Amplats has developed a policy, community spend and support mining Resources Development Act (MPRDA) and standards and guidelines to empower (internal) and non-mining job its associated mining charter. However, we HDPs and host communities. opportunities. believe in truly empowering South Africans { Ambitious targets – Our black industrialist pilot project as opposed to mere compliance. Our We have set ambitious inclusive was launched in 2019. The outcome vision is to create a more inclusive supply procurement targets, which we met in indicated 15 potential initiatives with a chain that generates shared and 2019. In the year ahead, we will potential to create annual revenue of sustainable prosperity in communities concentrate on meeting mining charter R450 million and 240 permanent jobs around our operations. This approach III and host-community commitments. for host communities. assists in creating thriving communities These targets will be aligned to other – The Amplats-OEM enterprise and around our mines and operating regions, business imperatives, ie social and supplier development partnership also and is underpinned by symbiotic labour plans, sustainable development started in 2019 to drive potential local relationships with a range of stakeholders and employment equity legislation. manufacture and refurbishment of including our employees, communities, { Procurement and implementation mining goods. This is imperative to customers, suppliers and shareholders. plan increase manufacturing skill and We will continue developing annual capacity in South Africa as well as job Our vision extends to promoting procurement plans with clear creation. empowerment initiatives such as milestones, outputs, outcomes and enhanced engagement of suppliers from implementation activities to meet our previously disadvantaged sectors of the commitments.
Case study: Bojanala was the brainchild of To diversify his operations, he established Under the auspices of our black Mr Philly Magane, who has an a business in Rustenburg after industrialist project, this has enhanced engineering facility in approaching the Amplats inclusive skills development and created 13 new procurement team for assistance. We off-site job opportunities for Rustenburg Steelpoort that specialises in supported this entrepreneur throughout host community members, including a repairing pumps, motors, the process of establish a pump repair doorstep business partner who hydraulic cylinders, buckets centre, Bojanala Mining. This involved acquired a 30% stake in the business. and other engineering structuring a business case, as well as services. facilitating funding and business relationships with our operations in Rustenburg.
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Host community supplier development In 2019, 72 new contracts were awarded to host community SMMEs, summarised below. These were in addition to longer-term opportunities put in place in prior years:
Contracts Contract awarded values Operations (2019) (Rm)
Amandelbult 25 35.9 Mogalakwena 28 328.4 Modikwa 2 3.2 Waterval smelter 3 12.3 Polokwane smelter 4 4.2 RBMR 1 3.2 PMR 2 26.6 Twickenham 3 10.7 Mototolo 4 10.9 Total 72 435.4
Enterprise and supplier development RESPONSIBLE SOURCING Responsible sourcing standard for (Anglo American Zimele) Globally, there is a rising expectation for suppliers Amplats supports host-community business to demonstrate accountability by This Anglo American standard emphasises suppliers – mostly EMEs and QSEs ensuring responsible conduct from all the need for suppliers to understand risk through our specialised Anglo Zimele parties in corporate supply chains. and combat modern slavery and human project (refer page 124). Zimele provides Responsible sourcing is a critical focus of traffi cking in their businesses and supply mentorship support to SMMEs in our host our commitment to ethical value chains chains. It complements a comprehensive communities to improve their capacity to under the trusted corporate leader pillar of policy framework that includes our group supply quality goods and services (supplier Anglo American’s sustainability strategy. human rights policy and code of conduct. development) and help others to develop The standard, available on our global businesses not linked to our wider group Responsible sourcing is a mechanism to websites, details our expectations of (enterprise development). The Zimele prioritise ethical decision-making when existing or prospective suppliers and model focuses on delivering four key purchasing goods and services. We are provides guidance on implementing it. services: mentorship and advisory; committed to working with suppliers that Available in English, Spanish and enabling access to markets; SMME loan comply with applicable laws, while striving Portuguese, the standard consists of fi ve funding; and hub management. Through for zero harm to people, society and our pillars, providing guidance on: this, we were able to: environment. This commitment ensures that { Protecting safety and health { Provide funding to 10 enterprises we work with responsible suppliers and { Protecting the environment (through 11 transactions) to the value of remain committed to supporting suppliers { Respecting labour and human rights R23.3 million in 2019 to identify and address sustainability issues (including modern slavery) { Create 67 jobs through funding (34 new such as safety, human rights, modern { Increasing social accountability and 33 jobs sustained) slavery and workplace conditions. { Conducting business fairly and with { Supported 1,314 jobs through We have several policies and standards integrity. mentorship programme. that illustrate our approach to conducting business with integrity, our commitment to Through a combination of self- prevent modern slavery in our business assessments, third-party audits and and across our supply chain and towards bespoke capacity-building programmes, zero harm. These policies are available on we support suppliers to fl ag potential risks the Anglo American website: and improve their management controls. { Code of conduct Based on potential for sustainability risk, { Human rights policy suppliers across our global procurement { Business integrity policy categories are identifi ed and required to { Responsible sourcing standard for complete self-assessments or third-party suppliers audits. Where risks are fl agged, corrective { Anglo American social way actions are agreed and monitored. In { Safety, health and environment policy. some cases, additional guidance and bespoke capacity development programmes are provided to support reducing risk.
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Sustainability risk assessment scope Responsible sourcing 2019 2018 2017 and targets Self-assessment questionnaires requested 109 72 15 Self-assessment questionnaires Suppliers identifi ed through the processes Suppliers audited 22 28 13 above were requested to complete SMMEs trained on responsible sourcing risk 76 49 31 self-assessment questionnaires. The outcomes gave both suppliers and Anglo American insights on workplace practices, Identifying risk in the supply chain heightened risk potential (such as human supported the identifi cation of potential We have updated elements of our supplier rights violations), country of origin, the risk and provided guidance on legal onboarding process to include mandatory degree of regulation in certain industries, requirements and our standard. acknowledgement of responsible sourcing and the extent to which goods or services As in prior years, the 2019 sample requirements and additional checks for our rely on manual labour. included multinational suppliers, onsite suppliers. While the nature of these checks We refi ned this approach in 2019, and contractors, security service providers and varies between regions, they typically used an updated risk heatmap to classify host-community suppliers. This supports include legal and compliance-related all our suppliers into one of fi ve our aim of a balanced view of risk over a checks, security-related checks and responsible-sourcing risk groupings, with diverse supplier base. third-party ‘adverse media’ screenings. our primary engagement focusing on high These supplier self-assessments We continue to review and update supplier and medium-high risk suppliers. confi rmed that most large-spend suppliers contract templates and other legal Nominating risk suppliers understand responsible-sourcing risk instruments to include core requirements, While the risk heatmap provides the areas and have typically established consistent with our standard. In 2019, we fi rst-pass view of potential risk suppliers, practices to manage key risks, including updated to contract templates for our UK we acknowledge that suppliers who pose those related to human rights and modern and South Africa-based businesses. potential for risk may be deprioritised when slavery. Contractors based on Anglo Using a risk heatmap its fi lters are applied strictly, eg suppliers in American sites, including security-services Recognising the need for proactive low-risk territories or with negligible spend. providers, demonstrated compliance with supplier engagement, and to focus efforts To complement the prioritisation of risk relevant legal and site requirements. on suppliers with higher potential for suppliers, we engaged with supply chain Smaller suppliers, including host sustainability risk, in 2018 we established colleagues throughout the organisation to community-based entities, often have a responsible sourcing heatmap that encourage the ‘nomination’ of suppliers diffi culty in demonstrating procedures and integrates categories of supply with that could present added potential for risk. practices linked to core legal requirements. To address this, we have intensifi ed our focus on supplier capacity building. For suppliers that we have not yet engaged, we posted a version of the self-assessment questionnaire on the Anglo American website. This document can be accessed by third parties, including prospective and current suppliers, to better understand some of the legal or responsible sourcing requirements.
Responsible sourcing training held at Amandelbult
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As part of our commitment to the ethical Whistleblowing with these bodies involves benchmarking value chain element of the sustainable Our independently managed YourVoice activities in peer mining and extractive mining plan, we will continue engaging facility is a confi dential and secure means companies; engaging with stakeholders suppliers with potential for sustainability for our employees, contractors, suppliers, including community activist groups; and risk through 2020. business partners and other external learning from examples of other industries, stakeholders around the world to report such as electronics and apparel, where Independent third-party on-site concerns about conduct that is contrary to common industry standards have already assessments our values or legal requirements. been established. Where we identify a higher likelihood of risk Complaints can be submitted through the self-assessments, we request In South Africa, we continue to engage anonymously and are handled by an suppliers to undergo on-site assessments with the Minerals Council, which has been independent third party. We do not tolerate by independent third parties. coordinating a more consistent industry any form of retaliation against individuals Acknowledging the cost implication of approach to setting standards for suppliers raising concerns in good faith. on-site assessments, especially for our and facilitating sharing certain non- host-community suppliers, Anglo American Integrating ESG in our supply-chain sensitive supplier information. This work has subsidised related costs. To management strategy will continue in 2020. supplement this risk-based approach, we Our vision is to be part of a value chain In November 2019, in support of the also nominate some suppliers on a sample that reinforces positive human rights – a Sustainable Development Goals (SDG) basis for on-site assessments. critical element of our sustainable mining Accountability Dialogue series hosted by plan. Within Anglo American, our supply- Risk management measures our business in South Africa, a roundtable chain function has initiated a process to Remediation and corrective action session was facilitated on responsible ‘innovate supply, responsibly’ by 2021 plan management sourcing. through defi ned outcomes focused on In cases where the self-assessment or safety, people, sustainability, value delivery We recognise this process as a positive on-site assessment identify areas of risk, and digitisation. Underpinning delivery of initiative that will enable us to solicit we expect suppliers to develop realistic these outcomes are our supplier feedback and learn from others’ good- corrective plans, then communicate details partnerships. practice innovations. Equally, collaborative to Anglo American. Where high-risk issues efforts with our partners and suppliers will are identifi ed, including any related to Responsible sourcing prioritises ethical improve transparency, due diligence and modern slavery, we engage directly with decision-making when buying goods and promote collective global activities against affected suppliers to monitor the close-out services. This commitment ensures we modern slavery and traffi cking of issues. This may entail several additional work with responsible suppliers and follow-up third-party assessments. remain committed to support suppliers to identify and address sustainability issues We are continually enhancing our ability such as safety, human rights, modern and the speed at which we can detect and slavery and workplace conditions. respond to potential responsible-sourcing incidents. This includes raising our internal Advocacy awareness of related risk, faster A collaborative approach is critical in mobilisation of third-party on-site tackling sustainability issues. To meet the assessment and response teams to ethical value-chain goals in our sustainable conduct investigations, and reviewing our mining plan, we have participated in supplier engagement and escalation several global forums, such as the processes. Refi ning this process is a focus responsible sourcing working group and for 2020. other initiatives of the ICMM. Our work
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Case study: SUPPORTING SMMES TO complexity for start-up businesses and had extended this programme to our MEET SUSTAINABILITY SMMEs – limiting their ability to operate operations in Rustenburg, Amandelbult OBJECTIVES sustainably. and the Polokwane smelter, reaching 156 SMMEs since its inception. Responsible sourcing is a key While a fair amount of support is provided component in achieving our through various business incubation and Programme design sustainability ambition. The aim is to enterprise development programmes, The SMMEs identifi ed to participate in support the group’s supply chain teams these are typically limited in their ability to the programme included existing to prioritise ethical decision-making generally address the detail of industry suppliers and those being considered when purchasing goods and services. requirements or support SMMEs to for future sourcing. These are address broader sustainability risk – businesses exclusively located in our We acknowledge that small, medium including human and labour rights, host communities, in line with our and micro-enterprises (SMMEs) often environmental management, business supplier development approach. have diffi culty in trying to interpret, then integrity and anti-corruption, and safety They range from professional services, implement policies and processes and health. such as plant hire, water purifi cation designed to meet South Africa’s legal and maintenance on engineering compliance requirements. This can be In 2017, we concluded a pilot programme equipment, to general services such as compounded by various industry at our Mogalakwena operation aimed at cleaning and waste management. regulations, regional difference and building awareness and supporting SMME customer requirements, potentially capacity to identify and manage legal and resulting in excessive costs and sustainability risks. By the end of 2019, we
The programme consisted of two main phases:
Phase 1 included excessive working hours, weak { The SMMEs were given materials { Initial awareness workshops: employment contracts, incorrect wage and sample tools to support their intensive two-day training session calculations and ineffective safety compliance efforts. management processes highlighting compliance requirements Conclusion { Implementation manuals: practice of South African law, including basic This approach has been very well workbooks have been provided to conditions of employment, BBBEE, received by the SMMEs. Our support SMMEs in closing out health and safety, and appropriate management team was commended additional risk areas. These workbooks environmental regulations by the host-community SMMEs for contain extracts from legal publications, { Participating SMMEs then completed recognising the daily challenges of implementation guidance and tools. The the responsible sourcing self- operating a small business and making intention is to build the content through assessment questionnaire, giving sense of complicated legal and 2020 and share these manuals with the them insights on customer corporate requirements. requirements SMMEs, and potentially with other { SMME assessments: SMMEs from businesses not included in the capacity- While we acknowledge the current gap each cohort are selected for building programmes. between corporate requirements and SMME capability, what is clear is how independent audits against our Phase 2 passionate SMMEs are about their standard. The process includes a { All suppliers currently work with external businesses, their eagerness to succeed, site assessment, documentation auditors to remediate risk issues. Where and the considerable innovation they review and employee interviews. necessary, additional follow-up potentially bring to Amplats. Where risks and issues were assessments will be conducted to verify identifi ed, corrective plans were how high-risk issues have been Programmes and approaches that developed, outlining specifi c actions addressed and how the SMMEs have respect this diversity, and can target required to close out the risk, committed to improving their business support to bridge that gap, will in turn timelines and responsibilities. activities when given appropriate levels build stronger relationships and reduce Through this work, risks identifi ed of support and clarity risk to our suppliers and ultimately our business.
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RESPECTING HUMAN Human rights – due-diligence process Monitoring and auditing All owned and JV operations undergo an The identifi cation, mitigation and overall RIGHTS intensive due-diligence process referred to management of human rights issues is as the Anglo American social way part of the Anglo American social way. Human rights describe rights that are assessment. All operations are expected Annual Anglo social way audits assess inherent to all human beings and to which to carry out internal due-diligence reviews compliance on human rights, for all everyone is equally entitled without every quarter and undergo external Amplats sites. discrimination on ethnicity, religion, reviews twice a year. The human rights language, sex, colour or any other status. Grievance remedies requirement is tested on the identifi cation We are a signatory to the United Nations Amplats operations have site-specifi c and management of human rights issues. Global Compact. grievance mechanisms in place, for the All sites are expected to demonstrate reporting of social incidents and Amplats has a zero-tolerance approach evidence which is reviewed by external grievances. The reporting and to child labour or forced labour. auditors. management of social incidents and Respect for human rights is a non- Human rights – assessment grievance is assessed annually through the negotiable value enshrined in Anglo Conducted by an external independent Anglo social way audits. American’s core values, its human rights auditor, the Anglo American social way policy and social way. These were drafted assessment audits potential human rights SECURITY AND HUMAN RIGHTS in line with the UN guiding principles on violations to determine if our business units Amplats has long committed to upholding business and human rights. They guide are continually identifying related risks and voluntary principles on security and human behaviour at our operations in South Africa vulnerabilities as operational issues rights. We are corporate participants of the and Zimbabwe in a way that respects the change. Voluntary Principles on Security and human rights of our employees, host Human Rights (VPSHR). Human rights training communities and business partners. Human rights training is embedded in our A due diligence was conducted in 2017 To ensure compliance with the UN guiding operations and joint ventures. Training to identify and manage the most critical principles and the requirements of our has been conducted by external service issues that may have human rights parent’s social way, external training on providers and includes all operational impacts from a security perspective. human rights and due-diligence teams and contractors. Human rights Training was conducted in late 2018 on assessments is conducted annually. training is also embedded into the annual the Voluntary Principles on Security and code of conduct training and as part of the Human Rights (VPSHR), a global In addition, indepth due-diligence safety induction process that all employees collaboration by governments, major assessments were conducted at all sites and contractors undergo prior to being multinational extractive companies and in 2017 by external human rights experts allowed access to operational sites. NGOs to provide guidance to companies to capacitate sites on managing human on tangible steps to minimise the risk of rights issues. This was achieved through Human rights – disclosure human rights abuses in communities interviews and workshops with key Amplats publicly discloses its human rights located near extraction sites. Security personnel to identify related impacts, commitment as a signatory to the United personnel attended training on VPSHR evaluate the effectiveness of existing National Global Compact (see page 127) between 19 and 22 September 2019 to management measures and identify the Anglo American core values and the enhance their training on confl ict analysis additional measures where required. Anglo American social way, which are and management in line with the VPSHR. aligned with the United Nations guiding Human rights – policy principles. Each site has undertaken the We continue to focus on security-related Amplats has a comprehensive policy on human rights due-diligence process to human rights issues in South Africa and human rights and a human rights identify and manage human rights risks. Zimbabwe by managing potential risks at framework, with identifi ed risks, The management of human rights issues is our operations and in the broader vulnerabilities and commitments assessed annually for all sites, through the communities where we operate. monitored internally. Anglo social way assessment.
Anglo American Platinum Limited Environmental, social and governance report 2019 133
GOVERNANCE
GOVERNANCE OUR BOARD
Nombulelo (Pinky) Moholi (58) John Vice (66) Independent non-executive director Independent non-executive director
Qualifi cation: BSc (engineering) Qualifi cation: BCom, CA(SA) Nombulelo has spent most of her career in the Before retiring in 2013, John was a senior partner in KPMG where telecommunications sector. She was chief executive offi cer of his roles included head of audit, serving on the South African Telkom SA SOC Limited from 2011 to 2013 after heading senior and African boards and executive committees, and chairman of portfolios in that company for 14 years. She also served in KPMG’s international IT audit. strategy, marketing and corporate affairs roles at Nedbank. External directorships: Standard Bank Group and Standard Bank External directorships: Woolworths Holdings Limited, Eyethu of South Africa Community Trust (chair), Engen Limited Appointed a director in November 2012 Appointed a director in July 2013
Peter Mageza (65) Daisy Naidoo (47) Lead independent non-executive director Independent non-executive director
Qualifi cation: FCCA (UK) Qualifi cation: BCom, CA(SA), Master’s in Accounting (taxation) Chartered certifi ed accountant and fellow of the Association Professional background in structured fi nance and debt capital of Chartered Certifi ed Accountants (ACCA) UK. Until 2009, he markets. Daisy developed her career at Sanlam after a brief tenure was executive director and group chief operations offi cer of in fi nancial planning and corporate taxation at SA Breweries and Absa Group Limited and served that group in various capacities Deloitte & Touche respectively. over his nine-year tenure. External directorships: STRATE Holdings Limited, Hudaco External directorships: Remgro Limited, Sappi Limited, MTN Industries Limited, Mr Price Group Limited, Redefi ne Properties Group Limited, RCL Foods Limited Limited, Barclays Africa Group Limited Appointed a director in July 2013 Appointed a director in July 2013
Richard Dunne (71) Independent non-executive director
Qualifi cation: CA(SA) Richard was with Deloitte for 42 years until retiring in 2006 as chief operating offi cer. External directorships: None Appointed a director in July 2006 Audit and risk committee (ARC) Governance committee (GC) Nomination committee (NC) Remuneration committee (RC) Safety and sustainable development committee (S&SD) Social, ethics and transformation committee (SET)
134 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
Norman Mbazima (60) Mark Cutifani (60) Independent non-executive Non-executive director chairman
Qualifi cation: BCom, CA(SA) Qualifi cation: BEng (mining) Norman has served as deputy chairman of Anglo American Mark has worked across six continents, 25 countries and over South Africa since June 2015. He joined Anglo American in 20 commodities. He has been chief executive of Anglo American 2001 at Konkola Copper Mines plc and was later appointed since 2013, and serves on the group management committee. global chief fi nancial offi cer of Anglo American Coal. He became Previously chief operating offi cer for Inco and Vale’s global nickel fi nance director of Amplats in 2006 and later stepped in as joint business, and senior executive with leading multinational mining acting CEO. He was CEO of Scaw Metals from 2008 and CEO groups. With a leadership style focused on people development, of Thermal Coal from 2009 to 2012. From 2012 to 2016, he was accountability and delivering sustainable value, Mark has CEO of Kumba Iron Ore. emphasised developing strong investor, labour, industrial, government and community relationships. External directorships: The Anglo American Chairman’s Fund Educational Trust, Zambia Sugar External directorships: Anglo American plc, De Beers Investments plc, De Beers plc Appointed a director in October 2018 and chairman in April 2019 Appointed a director in April 2013
Stephen Pearce (56) Tony O’Neill (61) Non-executive director Non-executive director
Qualifi cation: BA Business (accounting), graduate diploma in Qualifi cation: BEng, MBA company secretarial practice Group director technical at Anglo American plc and a recognised Stephen is the fi nance director of Anglo American plc. He has global business and technical expert in the mining industry. over 16 years’ experience as a director of public companies Spearheaded strategy development and signifi cant turnarounds and 30 years’ experience in the mining, oil and gas and utilities in large, complex and geographically diverse mining businesses. industries. He is a fellow of the Institute of Chartered Accountants Tony’s career spans some 35 years, predominantly in the gold and member of the Governance Institute of Australia and mining sector, with senior roles at Newcrest Mining, Western Australian Institute of Directors. Mining Corporation and AngloGold Ashanti. External directorships: Anglo American Capital plc, External directorships: Anglo American Quellaveco S.A., Anglo Anglo American plc, Anglo American Services (UK) Limited, American Technical & Sustainability Services Limited, De Beers BAE Systems plc, De Beers Investments plc, De Beers plc Investments plc, De Beers plc Appointed non-executive director in January 2018 Appointed a director in October 2013
Chris Griffi th* (55) Craig Miller (46) Chief executive offi cer Finance director
Qualifi cation: BEng (mining) (hons), PrEng Qualifi cation: BCompt (hons), CA(SA) Member of the Anglo American plc group management Craig joins Amplats from Anglo American plc where he served committee and director of Anglo American South Africa Limited. for 19 years. He was Anglo American’s group fi nancial controller Prior to his current appointment, he was CEO of Kumba Iron Ore from June 2015; prior to that, he held various fi nancial roles from July 2008 and has been with Anglo American for 27 years. including chief fi nancial offi cer of Anglo American Iron Ore Brazil He joined Amplats in 1990, progressing rapidly from supervisor and chief fi nancial offi cer of Anglo Thermal Coal. to one of the youngest general managers in the company, overseeing Amandelbult and Bafokeng Rasimone Platinum mines, Appointed fi nance director in April 2019 before heading the joint venture operations. Appointed CEO in September 2012
* Chris Griffi th will step down as CEO and is succeeded by Natascha Viljoen with effect from 16 April 2020.
Anglo American Platinum Limited Environmental, social and governance report 2019 135
LEADERSHIP AND GOVERNANCE
LEADERSHIP AND GOVERNANCE
BOARD STRUCTURE ASSESSMENT OF { Is a director or executive manager Independence of the board INDEPENDENCE of another organisation which is a In 2019, fi ve of 11 directors are The nomination committee assesses the related party independent. This represents 45% of the independence of directors annually and { Is entitled to remuneration contingent board from 50% in the prior year, and is considers the independence criteria on the performance of the company. mainly due to the resignation of Valli proposed by King IV. The assessment The committee recognises that the Moosa which reduced the number of entails whether a board member: majority of the board is no longer board members from 12 to 11. Norman { Is a signifi cant provider of fi nancial independent. It has, however, considered Mbazima has been appointed as chairman capital, or ongoing funding to the the balance of the board in its entirety to and, although he has resigned as deputy company, or is an offi cer, employee ensure that the board has the appropriate chairman of Anglo American South Africa, or representative of such provider of balance of knowledge, skills, experience, he is not classifi ed as independent due fi nancial capital or funding diversity and independence for it to to his previous appointment. Aligned to { Participates in a share-based incentive discharge its governance role and King IV principles, Peter Mageza, who scheme offered by the company responsibilities objectively and effectively. has been a member of the board for six { Owns securities in the company, the years, has been appointed lead value of which is material to their GENDER DIVERSITY independent director. personal wealth Female representation increased to 18% { Has been employed by the company as from 17% in the prior year due to the INDEPENDENCE OF THE BOARD an executive manager in the preceding reduction in board members. In terms of (%) three fi nancial years, or is a related party our race and gender diversity policy, the to such executive manager company is committed to aligning the { Has been the designated external board with the mining charter by 2020. auditor responsible for performing the statutory audit for the company, or a DEMOGRAPHIC DIVERSITY 45 key member of the audit team of the HDSA membership of the board is 27%, external audit fi rm, in the preceding down from 38% in the prior year. This three fi nancial years 55 refl ects fewer board members due to the { Is a signifi cant or ongoing professional retirement of Valli Moosa. adviser to the organisation, other than as a director of the board { Is a director or executive manager BOARD TENURE Q Independence of a signifi cant customer or supplier Our average board tenure is 5.4 years and QNon-independence of the company the average age of the board is 58.6 years.
GENDER DIVERSITY DEMOGRAPHIC DIVERSITY BOARD TENURE – YEARS (%) (%)
1 18 3 27 2
73
82
5 Female Q Q HDSA Q 0 – 3 Q 6 – 9 Male Non-HDSA Q Q Q 4 – 6 Q More than 9
136 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
DEVELOPING AND STRATEGIC BOARD RENEWAL long-term and orderly succession of AND SUCCESSION PLANNING directors to maintain an appropriate MAINTAINING A Last year, following its evaluation, the balance of knowledge, skills, experience, diversity and independence on the board. COMPETENT AND board prioritised succession and initiated a strategic board-renewal process. The graph below indicates the profi le of DIVERSE BOARD A blueprint of current and future critical our ideal board versus the current skill competencies was mapped and a profi le. Defi nitions of the various skills are framework developed for the strategic, detailed on pages 114 and 115. BOARD SKILLS CURRENT VERSUS IDEAL
9 88 8 7 7 7 6 6 6 6 6 6 5 5 5 44 4 4 4 4 4 4 4 3 3 3 3 3 2 2 2 1 1 0 0 0 agility affairs sector Senior Global Mining solving People analysis Problem planning Learning Strategic Strategic Industrial Domestic corporate Sales and leveraging leadership marketing, experience experience experience technology and mining perspective commercial thinking and Building and relationships Openness of development Financial and communication product context mining or Q Current Q Ideal
Amplats has evolved from a pure mining The framework entails increasing the BOARD EVALUATION house to a more diverse company with board size over time, appointing women No board evaluation was undertaken in impact demands from other areas such to the board and appointing HDSA 2019. This was to allow for fi nalising the as industrial processes, markets, products candidates. Focus will be on obtaining strategic board-renewal process and and applications. This requires a broader the requisite skills, listed below, to be developing the succession framework. scope of attention and technical incorporated into the board over the The next board evaluation is scheduled for competence by the board, as well as a next fi ve years to achieve an ideal board mid-2020. With the appointment of new growing range of non-fi nancial skills that scenario: directors, we would like those directors to are becoming increasingly important { Sales and marketing in mining contribute meaningfully to the process and at board level, mainly innovation, problem- { People development therefore the evaluation will be conducted solving, strategic thinking and relationship { Mining technology/modernisation/ after their induction. building. Further considerations were mechanisation independence of the board and its desire { Industrial sector experience Planning is under way and the evaluation to reach its race and gender diversity { Futurist/innovation. will focus on: targets. { Overall effectiveness of the board and This will equip the board to discharge its committees its governance role and responsibilities – Strengths and development areas objectively and effectively into the future. of the board – Identifi ed areas for improvement.
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LEADERSHIP AND GOVERNANCE CONTINUED
COMMITMENT TO To align with our purpose, our values and the ethics programmes is determined the way in which the board and employees by group-wide policies, the committee ETHICAL LEADERSHIP are expected to behave form the ensures they remain relevant by foundation for our code of conduct. Living addressing any changes in the business. BUT ALSO INTEGROUS these values and behaviours defi nes our It provides an update on its activities to culture as an organisation, underpinning the SET committee annually. AND ETHICAL BEHAVIOUR our good reputation and the promise we Code of conduct and business integrity make to all our stakeholders: Real Mining. The board sets the ‘tone from the top’ training for all band 3 to 6 employees was Real People. Real Difference. and subscribes to the ethical standards completed in the fi rst quarter of 2019, detailed in the Amplats code of conduct During the year, our values were with 100% of individuals in the relevant and business integrity policy. It seeks to relaunched to translate these categories trained. lead by example in engaging with all into behaviours and articulate how those Our culture of ‘living the values’ and stakeholders, in its deliberations and behaviours demonstrate value. For more conducting our business ethically is the decisions, and by monitoring the ethical information on our organisational culture foundation for good governance, which in culture and compliance in the group. transformation journey and values, refer turn empowers employees at all levels to to page 100 of the ESG report. The board, through the SET committee, expose any behaviour that confl icts with has invested signifi cant time in the The business integrity committee, chaired our values. A dedicated tip-off channel company’s culture transformation journey to by the fi nance director and attended enables employees to anonymously report embed a new culture that values by executives and senior managers, any unethical behaviour. signifi cance over success and is focused convenes quarterly to review In addition to the approval and oversight of on developing an organisation known as an implementation of the ethics programmes our code of conduct and business integrity employer of choice in fostering high- and discuss issues such as confl icts policies, the board has oversight of the performance teams and individuals. As we of interest reported by employees and delegation of authority manual, confl icts move into the next phase our strategy, blacklisted suppliers with which the of interest and share-dealing policy and, aiming to be the world’s most-valued company should not associate. The through the governance committee, the mining company through the eyes of its committee also keeps abreast of adverse compliance policy. stakeholders, this journey has become media reports on companies that may be more focused on our purpose of re- doing business with Amplats and may imagining mining to improve people’s lives. affect our reputation. While the scope of
138 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
ALIGNING STRATEGY AND GOALS Amplats has adopted the principles and recommended practices in the King Report on Governance for South Africa 2016 (King IV). The board reviews its governance practices annually and is satisfi ed that all aspects of King IV were applied in 2019. Our governance universe illustrates how our pillars of value are governed via the four governance sections – board, fi nance, risk, and social and sustainable – in support of the Amplats strategy and purpose. The elements in each segment are governed with appropriate processes, systems and resources to ensure we achieve the desired governance outcomes.
Our pillars of value (below) are fundamental to how we manage all aspects of our business to achieve our purpose and strategy.
PILLARS OF VALUE GOVERNANCE UNIVERSE GOVERNANCE OUTCOMES ➧ { Board structure { Memorandum of incorporation and charters { Sustainability strategy { Board evaluation Ethical { Social way and performance BOARD Financial { Succession planning and rotation { Safety and health leadership GOVERNANCE { Key policies { Environment { Board organisational culture and ethics { Stakeholder engagement { Compliance with key legislation and communication Safety and health { Remuneration and reward { Transformation { Key performance indicators { Human resource development Good Environment performance ➧
SOCIAL AND Purpose, FINANCIAL Socio-political SUSTAINABLE strategy and GOVERNANCE GOVERNANCE values ➧ People Effective control { Planning and budget { Operational performance { Internal controls Production { Capital allocation { Monitoring and evaluation RISK { Funding structure { Risk management GOVERNANCE { IT governance Trust and Cost { Operational risk { Taxation legitimacy assurance { Outlook { Internal audit ➧
Governance elements of the business model and value-creation process
Anglo American Platinum Limitedmitedted Environmental,Environmental, socialsocial andand govgovernanceerernance rreporteport 20120199 1399
LEADERSHIP AND GOVERNANCE
LEADERSHIP AND GOVERNANCE CONTINUED
The board remains ultimately THE BOARD’S ROLE IN The board raised specifi c items for accountable for group performance STRATEGY management to consider in terms of and setting the strategic direction. At the board’s annual two-day strategic the medium and long-term strategy: The executive committee is tasked workshop, it reviews the proposed group { Understanding global trade wars and its with formulating the group strategy, strategy and provides input on strategic impact on our relative competitiveness { The impact of shared mobility on and implementing it as approved priorities. The strategy is approved at a demand for PGMs by the board. board meeting for implementation by management, and the CEO provides { Perspective on new potential demand quarterly updates to the board on progress sources for PGMs and which metals in implementing strategic priorities. are likely to offer the most attractive potential Amplats successfully implemented its strategy over the past six years which One of the outcomes of the strategy sought to restructure and reposition the session was the formulation of strategic portfolio. In 2018, the strategy was focus areas embedded in management’s enhanced by identifying the value to be key performance areas in the short term, unlocked from achieving operational namely: excellence and selective investment across { Facilitating development of the market the portfolio. In the current year, the board for PGMs to increase demand reaffi rmed our strategic priorities as: { Extracting the full potential of our { Facilitating development of the market operations through people and for PGMs to increase demand innovation { Extracting the full potential from our { Investing in our core portfolio that operations through people and delivers industry-leasing cash fl ows innovation and returns { Investing in our core portfolio that { Zero harm in terms of safety, health delivers industry-leading cash fl ows and environment and returns. { An organisation anchored on a signifi cant leadership style and The board provided further clarity on values orientation how our medium-term goals would be { Achieving best-practice modernisation achieved. In reaffi rming the strategy, the and innovation across our value chain board considered: { Building leading community and { Macro-trends that are likely to impact stakeholder relationships and make a our business in the long term, with lasting contribution. specifi c focus on climate change and the evolution of automobility { { Drivers of our demand and supply in the medium and long term.
140 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
KEY GOVERNANCE ISSUES In 2019, the board discussed several key issues in detail:
Alignment to strategic objective
Tailings dams control measures
Following the January 2019 tailings dam collapse at Vale’s operation in Brazil, the board considered our facilities in terms of design, integrity and monitoring, and compared our monitoring and control systems in line with the Anglo American group technical standards. Refer to the ESG report, pages 49 and 52. 1
Corporate transactions
Received updates on corporate transactions aligned to continued value creation in our assets. Refer to chairman’s letter, chief executive offi cer’s review and fi nancial review. 1, 2
Update on Zimbabwe’s economic environment and impact on employees
The board considered an economic environment that was being affected by both climatic conditions (such as drought impacting electricity generation and food security) and the devaluation of a new domestic currency. To assist employees in Zimbabwe, the board agreed to implement new remuneration practices to cushion employees against the impact of a high infl ationary environment. 1
Project Centrepoint
Technical and sustainability services are provided by Anglo American plc to Amplats under master services agreements. The terms of these agreements and associated recharges were approved by the board on recommendation of the governance committee, which solely comprised independent non-executive board members, in 2017. Anglo American’s technical and sustainability services play an important role, in conjunction with the Amplats management team, in unlocking value by extracting the full potential from our operations through people and innovation. This involves improving operational performance through greater stabilisation and optimisation to achieve best-in-class performance. After that, using game-changing technologies, Amplats aims to beat world benchmark performance. To achieve this, additional investment in fast-payback, value-enhancing projects is required, along with the operating costs associated with using world-class technical expertise. Following consultation and confi rmation from the JSE on the categorisation of the transaction and advice from independent external experts, the governance committee approved the recharge of costs associated with these technical and sustainability services under existing master services agreements. 2
Strategy
As detailed on page 120. 1, 2, 3
Supplier contract approvals
Approved supplier contracts as required within the boards authority. These contracts are expected to yield signifi cant commercial value and ensure technical innovation. 1
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LEADERSHIP AND GOVERNANCE
LEADERSHIP AND GOVERNANCE CONTINUED
RISK MANAGEMENT Our risk management process is an integral part of setting the strategy. A board risk workshop is held annually to consider the risk process, the company’s top risks against external views on risks facing the business, risk appetite and tolerance status for the top risks are considered. For a summary on top risks and opportunities, refer to pages 40 to 45. ATTENDANCE AT MEETINGS Board Board strategy Risk meeting session workshop
Valli Moosa (outgoing chairman) 1/1 0/0 0/0 Norman Mbazima (chairman) 5/5 1/1 1/1 Chris Griffi th (chief executive offi cer) 5/5 1/1 1/1 Craig Miller (fi nance director) 5/5 1/1 1/1 Ian Botha (outgoing fi nance director) 1/1 0/0 0/0 Mark Cutifani 5/5 1/1 1/1 Richard Dunne 5/5 1/1 1/1 Peter Mageza 5/5 1/1 1/1 Pinky Moholi 5/5 1/1 1/1 Daisy Naidoo 5/5 1/1 1/1 Tony O’Neill 5/5 1/1 1/1 Stephen Pearce 5/5 1/1 1/1 John Vice 5/5 1/1 1/1
DEFINING ROLES AND RESPONSIBILITIES
Roles and responsibilities are formally defi ned to determine how authority is exercised and decisions taken. THE BOARD The chairman promotes a culture of cohesive support by providing ethical and effective leadership to the board, without limiting the principle of collective responsibility for its decisions. The board is mandated by its charter, which sets out the role of the board, chairman and CEO to ensure a balance of power and authority, and preclude any one director from exercising unfettered powers of decision-making. BOARD COMMITTEES The board is supported by a number of committees:
SOCIAL,SOCIALL, ETHICSETTH AND TRANSFORMATION (SET) AUDIT AND RISK COMMITTEECOCOMOMMMITTEE COMCOMMITTEEMMITMIITT Oversees effective governance of the group’s fi nancialciaialal reresults,sultsts, MonitorsMonitotor social, ethics and transformation activities in the internal audit, external audit, risk and IT governance.ernarn ncnce. groupgrorooupu and reports to shareholders on developments and progress.prp
SAFSAFETYETYY ANANDD SUSTAINABLE DEVELOPMENT REMUNERATION COMMITTEECOOMMMMITTETEE (S&(S&SD)SD)) CCOCOMMITTEE Monitors the group’s remuneration practicesactctiices aandnd MoMonMonitorsitotor safety and health of the company’s employees BOARD structures aligned to best corporateorrpoppororate andand tththe impact of its operations on the environment governance practices.tticceeses.s. frofrom a SHE perspective.
GOVGOVERNANCEERNRNANA COMMITTEE NOMINATION COMMITTEECOOMMITTTEE MonitorsMonitotorsrs anaand reports on corporate governance in the group Makes recommendations on appointment and reappointmentppopoiointmmenent and enensuresns that best governance practices are applied. to the board, composition and succession planning.llananniningg.
142 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
The committees assist the board in ACCOUNTABILITY discharging its duties and responsibilities. The board remains ultimately accountable Each committee has terms of reference for the governance and performance of delegating specifi c responsibilities and the company – fi nancially and socially as a authority on behalf of the board. The corporate citizen. The board ensures there chairmen of these committees report on is accountability for company performance their activities at each quarterly board through, among others, reporting and meeting. The respective terms of reference disclosure. and board charter are reviewed annually. The committees are interrelated and ANNUAL GENERAL MEETING provide feedback to each other on salient (AGM) matters as these apply to their remits. NOTICE OF AGM Detailed reports from the chairmen of the The notice of AGM has been distributed committees are included in this report. to members on 11 March 2020. The directors unanimously recommend THE GOVERNANCE shareholders to vote in favour of all COMMITTEE resolutions in that notice. Shareholders Amplats’ majority shareholder is Anglo attending the meeting in person or by American plc, which owns 77.56% of the proxy will have the opportunity to ask issued share capital. Anglo American plc questions on the AGM resolutions and provides technical and sustainability we encourage all shareholders to attend advisory and support services that are the meeting. critical to a mining company, such as Amplats, being able to operate sustainably. APPOINTMENT AND ROTATION These services are provided under a OF DIRECTORS master services agreement and the The board follows a formal and transparent governance committee oversees and process in appointing new directors. Any monitors the relationship with our major appointments are considered by the full shareholder. In particular, the committee board, on the recommendations of the considers and advises on: nomination committee. This committee { Related-party transactions and funding evaluates the skills, knowledge and arrangements with the major experience required to implement group shareholder strategy, which are assessed against { Any unresolved disputes in terms of the defi ned competencies in the skills matrix to master services agreement between address any gaps, together with race and the company and the major shareholder gender-diversity targets. { Issues involving a confl ict of interest. In terms of the company’s memorandum The committee comprises solely of incorporation (MoI), a third of directors independent non-executive directors, retire by rotation each year and are eligible led by Peter Mageza, lead independent for re-election by shareholders at the AGM non-executive director. It meets at least and offer themselves for re-election. twice a year or more often as required. This ensures that each transaction is considered independently and objectively. The committee considered one key issue during the year. Please see key governance issues on page 121 for more information.
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INDEPENDENT AUDITOR’S ASSURANCE REPORT
INDEPENDENT AUDITOR’S ASSURANCE REPORT ON THE SELECTED SUSTAINABILITY INFORMATION IN ANGLO AMERICAN PLATINUM LIMITED’S 2019 INTEGRATED REPORT AND 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
TO THE DIRECTORS OF ANGLO AMERICAN PLATINUM LIMITED We have undertaken an assurance engagement in respect of the selected sustainability information, as described below, and presented in the 2019 Integrated Report and 2019 Environmental, Social and Governance Report of Anglo American Platinum Limited (the ‘Company’, “Amplats” or “you”) for the year ended 31 December 2019 (the Reports). This engagement was conducted by a multidisciplinary team including health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting. SUBJECT MATTER We have been engaged to provide a reasonable assurance opinion and a limited assurance conclusion on the selected sustainability information listed below. The selected sustainability information described below has been prepared in accordance with the Company’s reporting criteria that accompanies the sustainability information on the relevant pages of the Reports (the accompanying reporting criteria). REASONABLE ASSURANCE Environmental, Social and Unit of Integrated Report Governance Report Selected Sustainability Information measurement page number page number Total work-related fatal injuries Number 100 79 Fatality Injury Frequency Rate (FIFR) Rate 100 79 Total Recordable Case Frequency Rate (TRCFR) Rate 100 79 Total number of new cases of noise-induced hearing loss Number 101 83
Total Scope 1 carbon emissions Kilotonne CO2e 105 68
Total Scope 2 carbon emissions Kilotonne CO2e 105 68 Total energy used Terajoules 104 68 Total number of Level 3, 4 and 5 environmental Incidents Number 105 69 Corporate Social Investment (CSI) Spend ZAR 104 117 Employment Equity per the Mining Charter % 102 96 Total employee turnover excluding VSPs % 102 102
LIMITED ASSURANCE Environmental, Social and Unit of Integrated Report Governance Report Selected Sustainability Information measurement page number page number Workers potentially exposed to inhalable hazards above the exposure limit Number 101 83 Workers potentially exposed to carcinogens above the exposure limit Number 101 83 Hazardous waste to landfi ll Kilotonnes 105 69 Non-Hazardous waste to landfi ll Kilotonnes 105 69 Number of employees who know their HIV status Number 101 88
We refer to this information as the “selected sustainability information for Reasonable Assurance” and “selected sustainability information for Limited Assurance”, respectively, and collectively as the “selected sustainability information”. YOUR RESPONSIBILITIES The Directors are responsible for the selection, preparation and presentation of the selected sustainability information in accordance with the accompanying reporting criteria as set out on pages 155 to 160 of the Environmental, Social and Governance Report (the “Reporting Criteria”). This responsibility includes: { the identifi cation of stakeholders and stakeholder requirements, material issues, commitments with respect to sustainability performance; and { the design, implementation and maintenance of internal control relevant to the preparation of the Reports that is free from material misstatement, whether due to fraud or error. The Directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users of the selected sustainability information and for ensuring that those criteria are publicly available to the Report users.
144 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
INHERENT LIMITATIONS Non-fi nancial performance information is subject to more inherent limitations than fi nancial information, given the characteristics of the subject matter and the methods used for determining, calculating, sampling and estimating such information. The absence of a signifi cant body of established practices on which to draw allows for the selection of different but acceptable measurement techniques which can result in materially different measurements and can impact comparability. Qualitative interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The precision of different measurement techniques may also vary. Furthermore, the nature and methods used to determine such information, as well as the measurement criteria and the precision thereof, may change over time. In particular, where the information relies on carbon, energy and other emissions conversion factors derived by independent third parties, or internal laboratory results, our assurance work will not include examination of the derivation of those factors and other third party or laboratory information. OUR INDEPENDENCE AND QUALITY CONTROL We have complied with the independence and other ethical requirements of Sections 290 and 291 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised January 2018) and parts 1 and 3 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the IRBA Codes), which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confi dentiality and professional behaviour. The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) respectively. The fi rm applies the International Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality ontrolc including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. OUR RESPONSIBILITY Our responsibility is to express either a reasonable assurance opinion or limited assurance conclusion on the selected sustainability information as set out in the subject matter paragraph, based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000 (Revised)), and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), issued by the International Auditing and Assurance Standards Board. These Standards require that we plan and perform our engagement to obtain the appropriate level of assurance about whether the selected sustainability information is free from material misstatement. The procedures performed in a limited assurance engagement vary in nature and timing and are less in extent than for a reasonable assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. (a) Reasonable assurance A reasonable assurance engagement in accordance with ISAE 3000 (Revised), and ISAE 3410, involves performing procedures to obtain evidence about the measurement of the selected sustainability information and related disclosures in the Reports. The nature, timing and extent of procedures selected depend on the auditor’s professional judgement, including the assessment of the risks of material misstatement of the selected sustainability information, whether due to fraud or error. In making those risk assessments we have considered internal control relevant to the Company’s preparation of the selected sustainability information. A reasonable assurance engagement also includes: { evaluating the appropriateness of quantifi cation methods, reporting policies and internal guidelines used and the reasonableness of estimates made by the Company; { assessing the suitability in the circumstances of the Company’s use of the applicable reporting criteria as a basis for preparing the selected sustainability information; and { evaluating the overall presentation of the selected sustainability performance information. We believe that the evidence we have obtained is suffi cient and appropriate to provide a basis for our reasonable assurance opinion. (b) Limited assurance A limited assurance engagement undertaken in accordance with ISAE 3000 (Revised), and ISAE 3410, involves assessing the suitability in the circumstances of the Company’s use of its reporting criteria as the basis of preparation for the selected sustainability information, assessing the risks of material misstatement of the selected sustainability information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the selected sustainability information. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks.
Anglo American Platinum Limited Environmental, social and governance report 2019 145
INDEPENDENT AUDITOR’S ASSURANCE REPORT
INDEPENDENT AUDITOR’S ASSURANCE REPORT ON THE SELECTED SUSTAINABILITY INFORMATION IN ANGLO AMERICAN PLATINUM LIMITED’S 2019 INTEGRATED REPORT AND 2019 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT CONTINUED
Accordingly, for the selected sustainability information where limited assurance was obtained, we do not express a reasonable assurance opinion about whether the Company’s selected sustainability information have been prepared, in all material respects, in accordance with the accompanying reporting criteria. The procedures we performed were based on our professional judgement and included inquiries, observation of processes followed, inspection of documents, analytical procedures, evaluating the appropriateness of quantifi cation methods and reporting policies, and agreeing or reconciling with underlying records. Given the circumstances of the engagement, in performing the procedures listed above we: { interviewed management and senior executives to obtain an understanding of the internal control environment, risk assessment process and information systems relevant to the sustainability reporting process; { inspected documentation to corroborate the statements of management and senior executives in our interviews; { tested the processes and systems to generate, collate, aggregate, monitor and report the selected sustainability information; { performed a controls walkthrough of identifi ed key controls; { inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting processes against the reporting criteria; { evaluated the reasonableness and appropriateness of signifi cant estimates and judgments made by the directors in the preparation of the selected sustainability information; and { evaluated whether the selected sustainability information presented in the Reports are consistent with our overall knowledge and experience of sustainability management and performance at the Company. REASONABLE ASSURANCE OPINION AND LIMITED ASSURANCE CONCLUSION (a) Reasonable assurance opinion In our opinion, and subject to the inherent limitations outlined elsewhere in this report, the selected sustainability information set out in the subject matter paragraph above for the year ended 31 December 2019 are prepared, in all material respects, in accordance with the reporting criteria. (b) Limited assurance conclusion Based on the procedures we have performed and the evidence we have obtained, and subject to the inherent limitations outlined elsewhere in this report, nothing has come to our attention that causes us to believe that the selected sustainability information as set out the subject matter paragraph above for the year ended 31 December 2019 are not prepared, in all material respects, in accordance with the reporting criteria. OTHER MATTERS Our report includes the provision of limited assurance on the “number of employees who know their HIV status”. We were previously not required to provide assurance on this selected sustainability information. The maintenance and integrity of Amplats’ website is the responsibility of Amplats’ directors. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the Reports or our independent assurance report that may have occurred since the initial date of presentation on Amplats’ website. RESTRICTION OF LIABILITY Our work has been undertaken to enable us to express a reasonable assurance opinion and a limited assurance conclusion on the selected sustainability information to the directors of the Company in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than the Company, for our work, for this report, or for the conclusion we have reached.
PricewaterhouseCoopers Inc. Director: Jayne Mammatt Registered Auditor Johannesburg 28 February 2020
146 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
GRI STANDARDS INDEX
◆ Integrated report ● ESG report ■ Annual fi nancial statements
This index guides readers to relevant data or notes reasons for omission as permitted by GRI.
GRI index
Standard Page Omission
GRI 102 General disclosures 102-1 Name of the organisation ◆ Cover 102-2 Activities, brands, products and service ◆ 7 102-3 Location of headquarters ◆ 172 102-4 Location of operations ◆ 7 102-5 Ownership and legal form ◆ 170 102-6 Markets served ◆ 8 102-7 Scale of the organisation ◆ 7 102-8 Information on employees and other workers ◆ 98 ● 102 102-9 Supply chain ● 128 102-10 Signifi cant changes to the organisation and its supply chain Zero 102-11 Precautionary principle or approach ● 21 102-12 External initiatives ● 127 102-13 Membership of associations ● 127 102-14 Statement from senior decision-maker ◆ 3 102-15 Key impacts, risks and opportunities ◆ 32, 38 102-16 Values, principles, standards and norms of behaviour ◆ 20, 118 102-17 Mechanisms for advice and concerns about ethics ◆ 133 102-18 Governance structure ◆ 119 102-19 Delegating authority ◆ 120 102-20 Executive-level responsibility for economic, environmental and ◆ 120 social topics 102-21 Consulting stakeholders on economic, environmental and ◆ 24 social topics 102-22 Composition of board and its committees ◆ 122 102-23 Chair of board ◆ 115 102-24 Nominating and selecting the board ◆ 116 102-25 Confl icts of interest ◆ 118 102-26 Role of board in setting purpose, values and strategy ◆ 119 102-27 Collective knowledge of board ◆ 114 102-28 Evaluating the board’s performance ◆ 117 102-29 Identifying and managing economic, environmental and social ◆ 120 impacts 102-30 Effectiveness of risk management processes ◆ 38, 129 102-31 Review of economic, environmental and social topics ◆ 32 102-32 Board’s role in sustainability reporting ◆ 140 102-33 Communicating critical concerns ◆ 36 102-34 Nature and total number of critical concerns ◆ 32 102-35 Remuneration policies ◆ 151
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GRI STANDARDS INDEX
GRI STANDARDS INDEX CONTINUED
◆ Integrated report ● ESG report ■ Annual fi nancial statements
GRI index
Standard Page Omission
102-36 Process for determining remuneration ◆ 151 102-37 Stakeholders’ involvement in remuneration ◆ 151 102-38 Annual total compensation ratio ◆ 151 102-39 Percentage increase in annual total compensation ratio ◆ 151 102-40 List of stakeholder groups ◆ 24 102-41 Collective bargaining agreements ◆ 30 102-42 Identifying and selecting stakeholders ◆ 24 102-43 Approach to stakeholder engagement ◆ 24 102-44 Key topics and concerns raised ◆ 24 102-45 Entities included in the consolidated fi nancial statements 102-46 Defi ning report content and topic boundaries ◆ 2 102-47 List of material topics ◆ 32 102-48 Restatements of information Zero 102-49 Changes in reporting Zero 102-50 Reporting period ◆ 2 102-51 Date of most recent report ◆ 2 102-52 Reporting cycle ◆ 2 102-53 Contact point for questions on the report ◆ 172 102-54 Claims of reporting in accordance with the GRI standards ◆ IFC 102-55 GRI content index ● 147 102-56 External assurance ● 144 GRI 103 Management approach 103-1 Explanation of the material topic and its boundary ◆ 2 103-2 Management approach and its components ◆ 32 103-3 Evaluation of the management approach ◆ 32 GRI 201 Economic performance Management approach disclosures ◆ 57 201-1 Direct economic value generated and distributed ◆ 14 201-2 Financial implications and other risks and opportunities due to ● 38 climate change 201-3 Defi ned benefi t plan obligations and other retirement plans 201-4 Financial assistance received from government Zero GRI 202 Market presence Management approach disclosures ◆ 70 202-1 Ratios of standard entry level wage by gender compared to — Confi dential, local minimum wage negotiated 202-2 Proportion of senior management hired from the local ● 102 community GRI 203 Indirect economic Management approach disclosures ◆ 94 impacts 203-1 Infrastructure investments and services supported ● 117 203-2 Signifi cant indirect economic impacts ◆ 14 GRI 204 Procurement practices Management approach disclosures ● 128 204-1 Proportion of spending on local suppliers ● 128 GRI 205 Anti-corruption Management approach disclosures ◆ 118
148 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
◆ Integrated report ● ESG report ■ Annual fi nancial statements
GRI index
Standard Page Omission
205-1 Operations assessed for risks related to corruption ◆ 118 205-2 Communication and training about anti-corruption policies ◆ 118 and procedures 205-3 Confi rmed incidents of corruption and actions taken ◆ 133 GRI 206 Anti-competitive Management approach disclosures ◆ 118 behaviour 206-1 Legal actions for anti-competitive behaviour, anti-trust and Zero monopoly practices GRI 300 Environmental Management approach disclosures ● 21 GRI 301 Materials 301-1 Materials used by weight or volume ● 68 301-2 Recycled input materials used ● 68 301-3 Reclaimed products and their packaging materials Not applicable GRI 302 Energy 302-1 Energy consumption within the organisation ● 68 302-2 Energy consumption outside of the organisation ● 68 302-3 Energy intensity ● 41 302-4 Reduction of energy consumption ● 41 302-5 Reductions in energy requirements of products and services ● 41 GRI 303 Water 303-1 Water withdrawal by source ● 34 303-2 Water sources signifi cantly affected by withdrawal of water ● 36 303-3 Water recycled and reused ● 34 GRI 304 Biodiversity 304-1 Operational sites owned/leased/managed in or adjacent to ● 46 protected areas and areas of high biodiversity value outside protected areas 304-2 Signifi cant impacts of activities, products and services on ● 46 biodiversity 304-3 Habitats protected or restored ● 46 304-4 IUCN Red List species and national conservation list species ● 46 with habitats in areas affected by operations GRI 305 Emissions 305-1 Direct (scope 1) GHG emissions ● 68 305-2 Energy indirect (scope 2) GHG emissions ● 68 305-3 Other indirect (scope 3) GHG emissions ● 68 305-4 GHG emissions intensity ● 40 305-5 Reduction of GHG emissions ● 40 305-6 Emissions of ozone-depleting substances (ODS) ● 60 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) and other ● 60 signifi cant air emissions GRI 306 Effl uents and waste 306-1 Water discharge by quality and destination ● 31 306-2 Waste by type and disposal method ● 49, 53 306-3 Signifi cant spills Zero 306-4 Transport of hazardous waste ● 49 306-5 Water bodies affected by water discharges and/or runoff ● 36 GRI 307 Environmental 307-1 Non-compliance with environmental laws and regulations ● 23 compliance
Anglo American Platinum Limited Environmental, social and governance report 2019 149
GRI STANDARDS INDEX
GRI STANDARDS INDEX CONTINUED
◆ Integrated report ● ESG report ■ Annual fi nancial statements
GRI index
Standard Page Omission
GRI 308 Supplier environmental 308-1 New suppliers screened using environmental criteria ● 28 assessment 308-2 Negative environmental impacts in the supply chain and ● 28 actions taken GRI 400 Social Management approach disclosures ● 12 GRI 401 Employment 401-1 New employee hires and employee turnover ● 102 401-2 Benefi ts provided to full-time employees not provided to ● 93 temporary/part-time employees 401-3 Parental leave ● 101 GRI 402 Labour/management 402-1 Minimum notice periods on operational changes ● 100 relations GRI 403 Occupational health and 403-1 Workers’ representation in formal joint management-worker ● 76 safety health and safety committees 403-2 Types and rates of injury, occupational diseases, lost days and ● 73 absenteeism, and number of work-related fatalities 403-3 Workers with high incidence or high risk of diseases related to ● 81 their occupation 403-4 Health and safety topics covered in formal agreements with ● 76 trade unions GRI 404 Training and education 404-1 Average hours of training per year per employee ● 94 404-2 Programmes for upgrading employee skills and transition ● 95 assistance programmes 404-3 Percentage of employees receiving regular performance and ● 94 career development reviews GRI 405 Diversity and equal 405-1 Diversity of governance bodies and employees ◆ 116 opportunity ● 97 405-2 Ratio of basic salary and remuneration of women to men ◆ 151 GRI 406 Non-discrimination 406-1 Incidents of discrimination and corrective actions taken Zero GRI 407 Freedom of association 407-1 Operations and suppliers in which the right to freedom of Zero and collective bargaining association and collective bargaining may be at risk GRI 408 Child labour 408-1 Operations and suppliers at signifi cant risk for incidents of Zero child labour GRI 409 Forced or compulsory 409-1 Operations and suppliers at signifi cant risk for incidents of Zero labour forced or compulsory labour GRI 410 Security practices 410-1 Security personnel trained in human rights policies or ● 133 procedures GRI 411 Rights of indigenous 411-1 Incidents of violations involving rights of indigenous peoples Zero peoples GRI 412 Human rights 412-1 Operations subject to human rights reviews or impact ● 133 assessment assessments 412-2 Employee training on human rights policies or procedures ● 133 412-3 Signifi cant investment agreements and contracts that include ● 133 human rights clauses or that underwent human rights screening GRI 413 Local communities 413-1 Operations with local community engagement, impact ● 110 assessments and development programmes
150 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
GRI index
Standard Page Omission
413-2 Operations with signifi cant actual and potential negative ● 110 impacts on local communities GRI 414 Supplier social 414-1 New suppliers screened using social criteria ● 128 assessment 414-2 Negative social impacts in the supply chain and actions taken ● 128 GRI 415 Public policy 415-1 Political contributions Zero GRI 416 Customer health and 416-1 Assessment of health and safety impacts of product and — Information safety service categories not available 416-2 Incidents of non-compliance for health and safety impacts of — Not available products and services GRI 417 Marketing and labelling 417-1 Requirements for product and service information and Not applicable labelling 417-2 Incidents of non-compliance on product and service Not applicable information and labelling 417-3 Incidents of non-compliance on marketing communications Not applicable GRI 418 Customer privacy 418-1 Substantiated complaints on breaches of customer privacy Zero and losses of customer data GRI 419 Socio-economic 419-1 Non-compliance with laws and regulations in the social and Zero compliance economic area
Anglo American Platinum Limited Environmental, social and governance report 2019 151
KING IV INDEX
KING IV INDEX
Our King IV Index can be found at: www.angloamericanplatinum.com/aboutus/our approach/
152 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 5 4 Governance
Platinum’s unique properties are crucial to many industrial processes that improve our lives.
HEALTHCARE ENVIRONMENTAL MANUFACTURING RENEWABLE POWER
Anglo American Platinum Limited Environmental, social and governance report 2019 153
RELATED DISCLOSURES
RELATED DISCLOSURES
Amplats’ response to the risks posed by climate change is multidisciplinary and covered throughout our reporting suite. The table below shows where to fi nd information on each of the TCFD’s recommendations. Amplats received B (management band) for its 2019 CDP climate response submission. This is higher than both the metal smelting, refi ning and forming sector average of C and Africa egionalr average of B-.
GOVERNANCE Disclose the organisation’s governance around climate-related risks and opportunities.
Recommended disclosures References
(a) Describe the board’s oversight of climate-related risks and Climate change: Our plans, policies and progress, pages 38 to 41 opportunities. Climate change, IR, pages 140 to 145 (b) Describe management’s role in assessing and managing Climate change: Our plans, policies and progress, page 38 climate-related risks and opportunities. Our material matters, IR, page 32
STRATEGY Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and fi nancial planning where such information is material.
Recommended disclosures References
(a) Describe the climate-related risks and opportunities the CDP climate response 2019, question CC2 organisation has identifi ed over the short, medium, and long term. (b) Describe the impact of climate-related risks and opportunities on ESG, pages 39 and 40 the organisation’s businesses, strategy, and fi nancial planning.
RISK MANAGEMENT Disclose how the organisation identifi es, assesses, and manages climate-related risks.
Recommended disclosures References
(a) Describe the organisation’s processes for identifying and Climate change: Our plans, policies and progress, pages 38 to 41 assessing climate-related risks. CDP climate response 2019, question CC2.2b (b) Describe the organisation’s processes for managing climate- CDP climate response 2019, questions CC2.1, 2.2, 2.5 and 2.6 related risks. (c) Describe how processes for identifying, assessing, and managing Climate change: Our plans, policies and progress page 38 climate-related risks are integrated into the organisation’s overall CDP climate response 2019, questions CC2.1, 2.2, 2.5 and 2.6 risk management.
METRICS AND TARGETS Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Recommended disclosures References
(a) Disclose the metrics used by the organisation to assess CDP climate response 2019, questions CC2.2b, 2.3a and 11.3a climate-related risks and opportunities in line with its strategy and risk management process. (b) Disclose scope 1, scope 2, and, if appropriate, scope 3 ESG report and data table page 68 greenhouse gas (GHG) emissions, and the related risks. IR page 105 (c) Describe the targets used by the organisation to manage ESG page 41 climate-related risks and opportunities and performance against targets.
154 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 4 5 Appendices
GLOSSARY
ACP Amplats converting process, a pyrometallurgical process used at the Waterval smelter complex in Rustenburg
Aids Acquired immune defi ciency syndrome, a disease of the immune system caused by HIV infection
Au The symbol for gold
Base metal A common metal that is not considered precious, eg copper, tin or zinc
BBBEE Broad-based black economic empowerment. This is a broadening of earlier BEE (see below) policy and attempts to spread the benefi ts of economic empowerment to the widest possible spectrum of black South Africans
BEE Black economic empowerment, a policy of the South African government aimed at increasing the access of black South Africans to productive assets. It seeks to ‘promote new opportunities for and increase the levels of participation of black people in the ownership, management and control of economic activities
Bioremediation Treatment or waste-management technique that uses naturally occurring organisms to break down hazardous substances into less toxic or non-toxic substances
BRPM Bafokeng Rasimone Platinum Mine
CDP An independent not-for-profi t organisation that acts as an intermediary between shareholders and corporations on all issues related to climate change. It provides the global marketplace with primary climate-change data gathered from the world’s largest corporations
CO2 Carbon dioxide
Company-managed land An area of land under the direct management of the company. It includes company-owned land, land managed/mined on behalf of third parties, land leased from third parties, company land leased to third parties, land under servitude, land set aside for biodiversity offsets, etc at the end of the reporting period. The parameter excludes privately owned land above company mineral/mining rights areas, and undeveloped projects/prospects where the land does not yet fall under the direct management or ownership of the company. It also excludes prospecting licences and claims
Concentrating The process of separating milled ore into a waste stream (tailings) and a valuable mineral stream (concentrate) by fl otation. The valuable minerals in the concentrate contain almost all the minerals found in base and precious metals. They are treated further through smelting and refi ning to obtain pure metals: Au, Cu, PGMs and Ni (see relevant entries for full names)
Anglo American Platinum Limited Environmental, social and governance report 2019 155
GLOSSARY
GLOSSARY CONTINUED
Corporate social Categories for corporate social investment expenditure include charitable donations, community investment investment spend (CSI) and commercial initiatives. CSI is reported in South African rand and converted from the currency of the operations at the average foreign exchange rate applied by Anglo American for fi nancial reporting purposes. Data is prepared in accordance with the principles of preparation for fi nancial information. Charitable donations include cash donations; contributions in kind; employees’ working hours spent on charity projects during work hours; and the cost of initiatives designed to inform communities about community-benefi t initiatives (eg the production of reports that are issued to communities for the purpose of reporting progress). Not included is expenditure that is necessary for the development of an operation (eg resettlement of families) or for receiving a licence. Training expenditure for individuals who will be employed by the company following completion of training is not included. Community investment includes the funding of community partnerships which address social issues; the costs of providing public facilities to community members who are not employees or dependants; the marginal value of land or other assets transferred to community ownership; and income-creation schemes or mentoring/volunteering initiatives which do not have a principally commercial justifi cation. Commercial initiatives include enterprise development and other community initiatives/partnerships that also directly support the success of the company (such as supplier development). There must, however, be a clear and primary element of public benefi t. We prohibit the making of donations for political purposes to any politician, political party or related organisation, any offi cial of a political party or candidate for political offi ce in any circumstances, either directly or through third parties
Cu The symbol for copper
DMRE Department of Mineral Resources and Energy
DWS Department of Water and Sanitation
EBIT Earnings before interest and tax
Employment Equity Historically disadvantaged South African (HDSA) representation at top management, senior management, per the Mining Charter middle management, junior management and core skills. HDSA refers to ‘any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution of the Republic of South Africa (Act 200 1993), came into operation’. The company defi nition of HDSA’s includes employees classifi ed as African, Asian, coloured or female.
Employee turnover Calculated from the total number of employees who left the company during the reporting period and expressed as a percentage of total headcount and excluding VSPs
Energy use Sum of energy from electricity purchased, total energy from fossil fuels and total energy from renewable fuels
Equivalent refi ned Mine production and purchases of metal in concentrate, converted to equivalent refi ned platinum platinum production using Amplats’ standard smelting and refi ning recoveries
Fatal injury frequency The rate of fatalities, calculated as the number of fatalities per 1 million hours worked rate (FIFR)
Flotation In the fl otation process, milled ore is mixed with water to form pulp, which is passed through a series of agitating tanks. Various chemicals are added to the pulp in a sequence that renders the valuable minerals hydrophobic (water-repellent) and the non-valuable minerals hydrophilic (strong affi nity for water). Air is dispersed through the tanks and rises to the surface. The hydrophobic particles attach to rising air bubbles and are removed from the main volume of pulp as a soapy froth. In this manner, various combinations of fl otation cells in series are used to produce a concentrated stream of valuable mineral particles, called the concentrate, and a waste pulp stream, called tailings
156 Anglo American Platinum Limited Environmental, social and governance report 2019 1 2 3 4 5 Appendices
GHG Greenhouse gas. As outlined in the Kyoto protocol to the United Nations framework convention on climate
change (1998), GHGs comprise: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O);
hydrofl uorocarbons (HFCs); perfl uorocarbons (PFCs); and sulphur hexafl uoride 6(SF ). The term refers to gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and remit infrared radiation
GJ Gigajoule (1,000 Megajoules)
Grade The mass of desired metal(s) in a given mass of ore. Ores bearing PGMs are normally low grade. Grades are usually expressed as grams per tonne, equivalent to parts per million
Greenhouse gas Quantity of CO2 from electricity purchased and generated internally. Conversion factors used are those emissions, CO2 recommended by the Intergovernmental Panel on Climate Change. Gases include CO2, CH4, NO2 (nitrogen equivalent dioxide), HFCs, PFCs, SF6 and other CO2 equivalents (see GHG)
Hazardous waste to Consider only waste generated during the reporting period. This should include the following as a legal landfi ll minimum: heavy metal contaminated sludges (excluding SX sludge); contaminated containers (reagent containers, oil/grease containers, anti-freeze drums, etc); medical waste, vehicle batteries and oil contaminated material (gaskets, fi lters, soaking agents, rags, etc). A legal landfi ll is a landfi ll designed and operated to contain the wastes and result products in a manner compliant with legislation or internationally accepted practice
HDSA Historically disadvantaged South African. Refers to ‘any person, category of persons or community, disadvantaged by unfair discrimination before the Constitution of the Republic of South Africa (Act 200 1993), came into operation’. The company defi nition of HDSAs includes employees classifi ed as African, Asian, coloured or female
HEPS Headline earnings per share – additional earnings number permitted by IAS 33 that excludes separately identifi able remeasurements (as defi ned), net of related tax (current and deferred) and related non- controlling interest, other than remeasurements specifi cally included in headline earnings
HIV Amplats committed to the new 90/90/90 UNAIDS targets. Based on this: { Know your status: 90% of our employees should know their HIV status { Treatment: 90% of our HIV-positive employees are receiving ART
LTI Lost-time injury. Refers to an injury resulting in the person being unable to attend/return to work to perform the full duties of his/her regular work, as per the advice of a suitably qualifi ed medical professional, on the next calendar day after the injury
LTIFR Lost-time injury frequency rate. The number of employee and contractor lost-time injuries (see entry) per 1 million hours worked. From 2018, Amplats will no longer report the lagging indicator LTIFR, replacing this with the leading indicator of total recordable case frequency rate (TRCFR, see entry) mg/Nm3/hour Milligrams per cubic metre per hour under normal conditions, where normal conditions are defi ned as a temperature of 20°C and a pressure of 1.01 bar
MPRDA Mineral and Petroleum Resources Development Act 28 2002
NEMA National Environmental Management Act 107 1998
NEMAQA National Environmental Management: Air Quality Act 39 2004
NEMWA National Environmental Management: Waste Act 59 2008
New water used New water used (1,000m3) New water, or make-up water, is water required to replace losses from the water circuit. It excludes water reused or recycled within the operation. New water can be drawn from several possible external sources (ie seawater, rainfall, municipal water, external raw or sewage water, dewatered groundwater)
Ni The symbol for nickel
Anglo American Platinum Limited Environmental, social and governance report 2019 157
GLOSSARY
GLOSSARY CONTINUED
NIHL Number of employees diagnosed with NIHL in the reporting period. New cases are recorded when: { The rules for diagnostic criteria for occupational disease in Anglo American have been met { There is a pattern consistent with NIHL on the audiogram { Average hearing loss at frequencies 0.5, 1, 2, 3 and 4kHz for both ears is greater than 25dBA { There is a 10dBA change in the average hearing loss since the preplacement audiogram recorded on employment by Anglo American { The employee has not been previously counted as NIHL
Non-hazardous waste to Consider only domestic (non-hazardous) waste generated during the reporting period. A legal landfi ll is one legal landfi ll designed and operated to contain the wastes and resultant products in compliance with legislation or internationally accepted practice
NOx Emissions of nitrogen oxides from diesel engines
Number of employees The total of all employees who are known to be HIV+ve on the medical records (irrespective of the year of who know their testing or testing facility), and who are still in employment at the end of the current reporting month, and the HIV status total of all employees whose last test confi rmed an HIV sero-negative status (based on a VCT result during a calendar year), and who are still in employment at the end of the last reporting month.
NWS National waste strategy (South Africa)
OHSAS 18001 Occupational Health and Safety Assessment Series, which provides specifi cations for management systems for occupational health and safety
Particulates Particulate matter consists of airborne particles in solid or liquid form. Particles are a type of air pollution that commonly affects people’s health. ‘Big’ particles are between 2.5 and 10 micrometres and named PM10. ‘Small’ particles are under 2.5 micrometres. They are named PM2.5 and cause more severe health effects. Our data on particulates refers to the mass of particulates released to atmosphere from point sources
PGMs Platinum group metals. Six elemental metals of the platinum group, nearly always found in association with one another. Some texts refer to PGEs (platinum group elements). The metals are platinum, palladium, rhodium, ruthenium, iridium and osmium
Primary activities Activities in an operation to produce product(s), including dust suppression in the operational area
Pt Symbol for platinum
Pt oz Equivalent refi ned platinum ounce(s). Equivalent ounces are mined ounces expressed as refi ned ounces
ROCE Return on adjusted capital employed attributable to equity shareholders of Amplats; excludes the portion of the return and capital employed attributable to non-controlling interests in operations where Amplats has control but does not hold 100% of the equity. Calculated as annualised underlying EBIT divided by adjusted capital employed
Section 54 stoppage Issued when a mining inspector orders a work stoppage after a death or other accident at a mine, or when the inspector believes working conditions are unsafe. Such stoppages are legislated by section 54 of the Mine Health and Safety Act
SLPs Social and labour plans. Stipulated in the MPRDA (see entry), these plans aim to promote employment in South Africa and advance the social and economic welfare of all citizens, while ensuring economic growth and socio-economic development
SO2 Mass of SO2 released from point sources and fugitive emissions to atmosphere in reporting period
Tailings That portion of ore from which most valuable material has been removed by concentration, and which is therefore low in value and rejected
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TB Pulmonary tuberculosis refers to tuberculosis of the respiratory organs, confi rmed by positive sputa microscopy or culture for mycobacterium tuberculosis
Terajoule Measure of energy, one terajoule = 1,000,000,000,000 joule (10^12)
Tonne Unless otherwise defi ned, this refers to a metric tonne (1,000kg)
Total environmental We classify environmental incidents on a scale of 1 to 5 based on increasing severity, in line with the incidents Anglo American 5 x 5 risk matrix, which plots potential incidents against their likelihood of occurring and the severity of their consequence. A level 1 incident will have a minor impact on the environment while a level 5 incident will have a major impact. Correct classifi cation of incidents is important as it determines the level of response, investigation and reporting required. From January 2018, we implemented an updated classifi cation process for environmental incidents, which maintains the level 1 to 5 classifi cation scale while providing substantially greater guidance and rigour to the classifi cation process. The following components are considered when rating the severity of environmental incidents: Scale: How signifi cant is the size/scale of impact relative to size/scale of receiving environment? Sensitivity: How sensitive is receiving environment to the impact? How special or unique is the area that has been impacted? Remediation and clean-up: How diffi cult is the impact to contain, remediate and/or clean up? How much time and/or resources are required to manage the incident?
Total recordable case TRCFR is a rate per 1 million hours of employee and contractor fatal injuries, lost-time injuries and medical frequency rate (TRCFR) treatment cases. First-aid cases – minor work-related injuries which, in normal circumstances, can be treated successfully in line with recognised fi rst-aid training – are not included. Injuries are diagnosed by medical and safety professionals according to Anglo American criteria. These criteria are additional to local legal reporting and compensation requirements. From 2018, we have reported injury frequency rates per million hours worked to align with ICMM and other global mining companies. This will allow for a more granular view, which will be valuable as our injury numbers have reduced signifi cantly in recent years
Total scope 1 carbon Scope 1 emissions include CO2e emissions from fossil fuels, coal seam gas fugitive emissions, renewable emissions fuels, and operational processes. Process emissions include those associated with on-site and managed sewerage facilities, on-site water-treatment facilities, use of carbonates in acid leaching processes at copper-processing facilities, fugitive emissions in producing phosphates
Total scope 2 carbon Scope 2 emissions include CO2 from electricity purchased and reported in kilotonnes CO2e emissions
Total social investment CSI spend including contributions paid to community trusts and dividends paid to communities. Payments to trusts and dividends paid to communities occurred in 2018
Total water consumed Total withdrawals or abstractions (total infl ow excluding estimate of surface run-off or precipitation (million m3, Mm3) harvested)
Total work-related fatal A fatality is an employee or contractor death resulting from a work-related injury. Anglo American records all injuries work-related losses of life for the purposes of internal and external investigation, management action, legal process and compensation. However, while fatal injuries that result from criminal activity and public-road incidents are recorded for management purposes, these are not included in formal statistics and frequency-rate calculations tpm Tonnes per month
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GLOSSARY
GLOSSARY CONTINUED
Water used for primary Total new or make-up water entering an operation and used for the operation’s primary activities. This activities defi nition includes mine dewatering water used for primary activities, but excludes internally recycled water and mine dewatering water discharged to surface or evaporated and not used for any primary activities
Workers potentially Total number of employees assigned to homogenous exposure groups in an “A” classifi cation band, ie exposed to inhalable ≥OEL (without taking into account PPE) for inhalable hazards for the reporting period. hazards above exposure Inhalable hazards and carcinogens include: limit and workers { Coal dust (respirable particulate) potentially exposed to { Respirable crystalline silica carcinogens above { Diesel particulate matter exposure limit { Nickel (water soluble compounds) { Copper dusts and mists { Sulphuric acid mists { Sulphur dioxides { Arsenic { Coal tar pitch volatiles { Cobalt { Dust (respirable and inhalable) { Welding fumes { Volatile organic compounds (VOCs) Total number of employees (including long- term contractors) exposed to one or more known cause of occupational cancer including but not limited to arsenic, coal tar pitch volatiles, cobalt, diesel particulate matter, nickel (soluble and insoluble) and solar radiation at levels ≥ OEL. For solar radiation: the number of workers working in open environments (without roof cover) for periods in excess of four hours per shift exposed to excessive sunlight
160 Anglo American Platinum Limited Environmental, social and governance report 2019
Anglo American Platinum Limited Incorporated in the Republic of South Africa Date of incorporation: 13 July 1946 Registration number: 1946/022452/06 JSE code: AMS – ISIN: ZAE000013181 www.angloamericanplatinum.com A member of the Anglo American plc group www.angloamerican.com
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