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Sasol Mining (Pty) Limited Social and Labour Plan Sasol Mining Secunda

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Sasol Mining (Pty) Limited Social and Labour Plan Sasol Mining Secunda Sasol Mining (Pty) Limited Social and Labour Plan for the Sasol Mining Secunda Complex Review and amendment for the five year period July 2020 – June 2025 Submitted in terms of the provisions Regulation 46B promulgated under the provisions of the Mineral and Petroleum Resources Development Act 2002 and Section 102 of the Mineral and Petroleum Resources Development Act, 2002 DMRE reference number: MP 30/5/1/2/2/138 MR October 2020 Index Page 1. Introduction 1 2 Preamble 7 3. Human resources development programme 13 3.1 Compliance with skills development legislation 13 3.2 Skills development plan (Regulation 46(b)(i)) 14 3.3 Hard-to-fill vacancies 16 3.4 Career progression plan/path (Regulation 46(b)(ii)) 17 3.4.1 Current literacy and AET needs 17 3.4.2 Learnerships 21 3.5 Mentorship plan and coaching (Regulation 46 (b)(iii)) 23 3.6 Internship and bursary plan (Regulation 46(b)(iv)) 25 3.7 Employment Equity Plan (Regulation 46(b)(v)) 31 4. Local economic development programme 32 4.1 Social and economic background information (Regulation 46(c)(i)) 32 4.2 Key economic activities (Regulation 46(c)(ii)) 37 4.3 Impact of mining 37 4.4 Infrastructure and poverty eradication projects 38 4.5 Measures to address housing and living conditions 49 4.6 Measures to address nutrition 50 4.7 Procurement progression plan 50 5. Processes pertaining to management of downscaling and retrenchment 53 5.1 Future Forum 53 5.2 Mechanisms to save jobs and avoid job losses and a decline in employment 54 5.3 Mechanisms to provide alternative solutions and procedures for creating job security 55 5.4 Mechanisms to provide alternative solutions and procedures 56 5.5 Mechanisms to ameliorate the social and economic impact 57 5.6 Portable skills 58 6. Financial Provision 61 7. Undertaking 62 i List of tables Table 1: Labour sending areas: Permanent employees .............................................................. 8 Table 2: Labour sending areas: Hired labour............................................................................. 11 Table 3: SETA registration information ...................................................................................... 13 Table 4: Educational levels of employees as at April 2019 (excluding hired labour) (Form Q) ... 15 Table 5: Educational levels of hired labour as at April 2019 (Form Q) ....................................... 16 Table 6: Internal AET targets per annum ................................................................................... 20 Table 7: External targets per annum ......................................................................................... 20 Table 8: Internal Learnership targets per annum (S18.1) .......................................................... 22 Table 9: External Learnership targets per annum (S18.2) ......................................................... 22 Table 10: Internal Internship (EITs) targets per annum ............................................................. 27 Table 11: External Internship targets per annum ....................................................................... 27 Table 12: Internal Bursary targets per annum ........................................................................... 30 Table 13: External Bursary targets per annum .......................................................................... 30 Table 14: Employment Equity Implementation Plan progressive five year targets ..................... 31 Table 15: Summary of proposed LED projects .......................................................................... 40 Table 16: Greylingstad waste water treatment works and reticulation ....................................... 41 Table 17: Nthoroane Ext 2 development and potable water supply ........................................... 42 Table 18: Secunda Drug Rehabilitation Centre ......................................................................... 43 Table 19: GMM Electricity Upgrades ......................................................................................... 44 Table 20: Lekwa Rural Water Supply ........................................................................................ 45 Table 21: Lekwa sewer system upgrades ................................................................................. 46 Table 22: Holfontein relocation .................................................................................................. 47 Table 23: Agro Processing Hub................................................................................................. 48 Table 24: Promotion of home ownership - funding model .......................................................... 49 Table 25: Inclusive Procurement targets for mining goods ........................................................ 51 Table 26: Inclusive Procurement targets for services ................................................................ 52 Table 27: Action plan for downscaling and retrenchment .......................................................... 55 Table 28: Mechanisms available to employees affected by retrenchment ................................. 56 Table 29: Strategies for mine closure ........................................................................................ 57 Table 30: Portable skills training................................................................................................ 60 Table 31: Financial provision: SLP components ........................................................................ 61 List of diagrams Diagram 1: Secunda Complex mining rights................................................................................ 5 Diagram 2: Sasol Mining revised Secunda Complex mining right area ........................................ 6 ii List of Annexures A: OMI Solutions report B: Workplace Skills Plan C: Annual Training Report iii Acronyms AET Adult Education and Training AF African Females AM African Males BBBEE Broad Based Black Economic Empowerment BEE Black Economic Empowerment BEEE Black Economic Empowered Enterprise BEEP Black Economic Empowerment Procurement BIE Black Influenced Enterprise BWO Black Woman Owned CEP Community of Expert Practitioners CEPPWAWU Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union CF Coloured Females CHIETA Chemical Industries Education Training Authority CM Coloured Males COGP Codes of Good Practice CPP Career Progression Plan CSI Corporate Social Investment DMRE Department of Mineral Resources and Minerals DOL Department of Labour EE Employment Equity ESOP Employee Share Option Programme FLISP Finance Linked Individual Subsidy Programme FY Financial Year GDP Gross Domestic Product GDPR Graduate Development Programme GET General Education and Training HDP Historically Disadvantaged Person HET Higher Education and Training HIPO High Potential Candidates HRD Human Resources Development IDP Integrated Development Plan IF Indian Females IM Indian Males JV Joint Venture LED Local Economic Development LRA Labour Relations Act, 1995 (Act 66 of 1995) iv MC Mining Charter MPRDA Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002), as amended MQA Mining Qualifications Authority MSP’s Monthly salaried personnel NPAT Nett Profit After Tax NQF National Qualifications Forum NSDS National Spatial Development Strategy NUDPW National Union of Democratic & Progressive Workers OFO Organizing Framework for Occupations PDP Personal Development Plan PGDS Provincial Growth Development Strategy QCTO Quality Council Trades and Occupations Sasol Mining Sasol Mining (Pty) Ltd Sasol The Sasol Group of companies Secunda Complex Sasol Mining (Pty) Ltd mining operations around Secunda SED Small Enterprise Development SEDA Small Enterprise Development Agency SETA Sector Education Training Authority SLP Social and Labour Plan SME Small and Medium Enterprises SP’s Salaried Personnel T2 Sasol Mining Technical Training Trade Union A recognised and registered trade union in terms of the Labour Relations Act (Act 55 Of 1995) WF White Females WIM Women in Mining WM White Males v 1. Introduction The Sasol Group (Sasol) is a proudly South African based, yet global energy and chemicals company, which is internationally recognised for its innovative proprietary technologies to convert coal-to-liquid (CTL) and gas-to-liquid (GTL) into liquid fuels, fuel components and a whole host of chemical products. Sasol is also an independent power producer. Sasol’s CTL technology is used to produce more than a third of South Africa’s transportation fuels which is of strategic importance to the country. Coal, which is the main feedstock in the gasification process, is extracted by Sasol Mining which operates one of the world’s largest underground coal-mining complexes near Secunda in the Mpumalanga province. Sasol Mining’s Secunda Complex has been operational for almost 50 years and annually produces approximately 41 Mt of coal destined for the following markets: • Domestic market: the majority of the coal mined in Secunda area is used as gasification feedstock in Sasol’s CTL operations. By utilising various processes, Sasol beneficiates the coal into a number of products such as petrol, diesel, jet- fuel, chemicals and chemical by-products; and • Export market: a small percentage, roughly 3,5 Mt is exported to European and Asian markets. Sasol Mining is the holder of a mining right, also referred to as the Secunda Complex mining right, with the Department of Mineral Resources and Energy (DMRE) reference number MP 30/5/1/2/2/138 MR, which includes the associated
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