Sishen Mine SEAT report 2008 table of contents
1 Introduction 2 Approach 3 Structure of the report 5 2 Overview of the mine 6 Key information 7 Ownership structure 8 Mine management 9 3 Commitments and leadership 10 Responsibilities 11 Strategic business goal 12 Compliance with corporate policy requirements 12 Partnerships 14 4 Overview of neighbouring communities 16 Northern Cape demographics 17 Age and gender structure 17 Education 18 Housing 18 Health 20 5 Sishen Mine’s socio-economic impact 22 Overview 23 Key facts 23 Education and training 24 Employment opportunities 25 Employment equity 27 Procurement from HSDA suppliers 28 6 Stakeholder engagement 30 Principles and strategy 31 Stakeholder forum 31 Outcome of the SEAT engagement process 34 7 Sishen Mine’s support for socio-economic development 36 Overview 37 Education 37 Enterprise development 39 Health and wellness 40 8 Management and monitoring plan 44 Overview 45 9 Management measures 46 10 The future 52 This report presents the findings of introduction the Socio-Economic Impact Toolbox (SEAT) assessment of Kumba Iron Ore’s Sishen Mine and its impacts on communities and other stakeholders in South Africa. This report presents the findings of the introduction Socio-Economic Impact Toolbox (SEAT) assessment of Kumba Iron Ore’s Sishen Mine and its impacts on communities and other stakeholders in South Africa. The SEAT process has been developed by Anglo American plc, Kumba’s parent company, to enable mines to identify and manage the socio-economic impact of their activities on local communities, and to provide guidance on how to improve performance on key social issues.
Approach
The approach used for the assessment is aligned with the seven steps outlined in the SEAT report (see table below). This process introduces a proactive approach into the management of social and economic development issues in communities and the greater stakeholder spectrum. The process also ushers in widespread participation in the setting and identifying of priorities whilst simultaneously facilitating a shift of focus in decision-making from a solely company-centred approach to a more participatory and inclusive approach to involving stakeholders in mine decisions. the seven steps of the SEAT process
Step Step 1 Profile the Sishen Mine Step 2 Profile the mine’s neighbouring communities and stakeholder engagement to identify key issues Step 3 Evaluate social and economic impacts Step 4 Review site management systems Step 5 Develop community development initiatives in partnership with stakeholders Step 6 Prepare a managing and monitoring plan Step 7 Reporting to key stakeholders
The objective of the SEAT process is to promote and identify any shortcomings and make enhance meaningful relationships between the mine and its improvements where appropriate neighbouring communities, as well as those in the labour • to assess if the operation is in line with best sending areas. The outcome of the process will enable practice requirements on social performance, Sishen Mine to evaluate the impact of its operations on and identify examples of best practices that can immediate communities and other stakeholders and to be shared address these. • to gather and collect data for corporate social reporting on indicators that are relevant to local The objectives of the process are: conditions • to identify and prioritise the key negative social • to provide a planning tool for the management and economic impacts the mine has that must of the mine’s social and economic impacts and be addressed • to involve stakeholders in the management • to assess the effectiveness and suitability of and monitoring of impacts through ongoing existing community development initiatives engagement and consultation. and stakeholder engagement processes, .3 introduction
Sishen Mine engages with a number of stakeholders as part recommended by certain legislative requirements – in of its ongoing stakeholder engagement and consultation particular South Africa’s Mining Charter. The mine programme. Some of the mine’s stakeholder engagement also engages with stakeholders to keep them abreast activities are in the form of interviews or meetings of developments that may affect them, to discuss initiated by stakeholders seeking assistance from the environmental issues and to participate in local and regional company, or by the company seeking to engage with a forums.The mine’s key stakeholders, identified as per the particular stakeholder group to gain certain insights into SEAT stakeholder identification process, are as follows. possible joint ventures, activities or projects as stakeholder identification
Stakeholder category Reason for consulting them Represented by Affected Parties Neighbouring communities Stakeholders that are affected by the mine due to their close proximity to operations Dingleton, Deben, Sesheng, Kathu / Mapoteng Interested parties Community-based and Stakeholders, though not directly Local police forum, church organisa- non-governmental organisations affected, but have an interest in the tions, Gamagara Environmental Forum, (CBOs and NGOs) operations Gamagara Development Forum, Gamagara Crisis Centre, Community Wellness Forum, Gamagara Sports Council, Gamagara Youth Council
Local businesses and associations Local businesses in close proximity to Dingleton Emerging Business Forum, the operation that provide services to Gamagara Chamber of Commerce, the mine Small Enterprise Development Agency (SEDA), Khula Enterprise Development Agency Authorities Provincial, local and traditional Responsible for policy making, Department of Water Affairs & Forestry authorities regulation and oversight (DWAF), Department of Minerals & Energy (DME), Department of Environ- mental Affairs & Tourism (DEAT)
SEAT assessments are undertaken every three years - the next report will therefore be published in 2010. Ongoing engagement and community support will of course continue in the interim.
4. introduction
Structure of the report • Section 5 discusses the mine’s socio-economic impact The report provides a summary of Sishen Mine’s • Section 6 discusses the mine’s stakeholder socio-economic activities for 2007. engagement processes and the results thereof • Section 7 describes the mine’s support for The rest of this report is structured as follows: socio-economic development within the region • Section 2 describes the mine and its operation • Sections 8 & 9 describe the social • Section 3 describes the corporate policy management systems, including monitoring requirements on the basis of which the SEAT systems and timeframes, as well as the responses process is undertaken to the issues raised by stakeholders during the • Section 4 provides an overview of the SEAT process. neighbouring communities including demographics and socio-economic issues
.5 Kumba Iron Ore owns 74% of Sishen overview of Iron Ore Company, itself a subsidiary the mine of Anglo American plc, one of the world’s foremost mining companies. overview of the mine
Key information
Kumba Iron Ore owns 74% of Sishen Iron Ore Company (SIOC). Sishen Mine, owned by SIOC, falls within the Gamagara Local Municipality which is part of the Kgalagadi District Municipality. The mine is located just south of the town of Kathu. The mine was established in 1954, primarily providing ore for consumption at domestic steel mills. Further exploration programmes led to a significant increase in the resource base, increased production resulting in the creation of the world’s fourth largest supplier of sea-borne iron ore. Sishen Mine now exports 73% of its production. In 2007, Sishen produced 29.7Mt of final product, which is 92% of Kumba Iron Ore’s total production. The Sishen Expansion Project (SEP) will extend the mine’s life by a further ten years. The proposed Sishen South Project – a new mine south of Kathu and close to Postmas- burg – will be operated as an independent mine. geographic locations
Northern Cape Sishen Mine 27°44’02”S, 23°00’69”E Sishen South
Limpopo
Gauteng
Mpumalanga
Free State
Eastern Cape
Western Cape Saldanha Port Operations
North West
KwaZulu-Natal
The mine achieved an all time high output of 28.7 Mt in 2006 and 29.7 Mt in 2007 due to continuous improvement projects implemented during that period. The SEP has increased employment figures from levels greater than 7 700 in 2006 to 9 900 at the end of 2007, including 5 040 contractors. The majority of the mine’s employees come from the neighbouring settlements of Kathu, Sesheng, Mapoteng, Dingleton and also further afield from places such as Kuruman, Vryburg and Upington. Sishen Mine has a policy of employing local people, although, where necessary, expertise may be sourced from outside the Northern Cape Province. .7 overview of the mine
Ownership structure
Kumba Iron Ore owns 74% of Sishen Iron Ore Company which was born out the unbundling of Kumba Resources in 2006. The SIOC Community Development Trust and SIOC Employee Share Participation Scheme are initiatives designed to allow employees and local communities to own shares in Kumba Iron Ore. ownership structure
Industrial Development Anglo American plc group* Minorities Corporation
13.1% 63.4% 23.5%
Kumba Iron Ore*
74%
Sishen Iron Ore Company (SIOC)
20% Exxaro*
3% SIOC Community Development Trust 26% BEE ownership
3% SIOC Employee Share Participation Scheme
Operations Projects
Sishen Mine SEP1
Thabazimbi Mine SEP2
Sishen South
Rest of pipeline
*Listed on the JSE
8. overview of the mine
Mine management
The following figure shows the 2007 management structure at the mine. sishen mine management structure (2007)
From left to right: Anisaan Naidoo – Acting Resident Engineer Kobus Meyer – Manager Human Resources Theo Kleinhans – Operations Manager Witness Kwaza – Manager Safety, Health and Environment Anel Marais – Manager Sustainable Development
From left to right: Christine de Beer – Supply Manager Chris Minnie – Manager Plant Hannes Cronje – Manager Mining Marthina Alchin – Manager Business Improvement Paul Hibbert – Manager Finance Retief Louw – Acting General Manager .9 The positive developmental impact commitments that Sishen Mine has had can be & leadership attributed in part to the strong partnerships it has formed with a range of local and national agents. At Sishen Mine, stakeholder engagement commitments and community development are & leadership coordinated through the Sustainable Development Department.
Responsibilities
The department’s key responsibilities are to ensure that the mine is operating according to its own stakeholder engagement and community development systems, policies and principles and in so doing ensures that: 1. The mine keeps its stakeholders informed and is informed by its stakeholders 2. The social and economic development interventions that the mine makes are sustainable i.e. their success is not dependent on continued support from the mine 3. The mine is constantly in compliance with the requirements of the Mining Charter.
The organisational structure of the department is shown below. organisational structure
Kumba Transformation Steering Committee
Super Trust Board
Kumba Manager Public Affairs General Manager Sishen Mine
ZIMELE Board
Manager Sustainable Development
Administrative Assistant
Enterprise Development Manager Communication & Practitioners / LED (ZIMELE) Public Relations
Community Enterprise Enterprise Development Development Development Events Manager Translator Communication Officer Practitioners Practitioners Assistant
LED Team Assistant Events Assitant .11 commitments and leadership
Strategic business goals Compliance with corporate policy requirements The strategic process at Sishen Mine consists of a facilitated session at the beginning of each year where The aim of this section is to present performance indicators, different targets are established according to the Norten which include a set of social and economic policy Kaplan Balanced Scorecard Model. During this session requirements adapted from Anglo American’s “Good the strategic business goals (SBGs) are agreed upon and a Citizenship” Business Principles, Safety, Health and champion is appointed for each of the goals. Environment (SHE) Policy and other Management Principles, Throughout the year the champions give monthly feedback against which Sishen Mine will self-assess its performance. on the progress against the specific targets. To ensure that these policies respond to local conditions, Mitigating actions are proposed and approved to ensure the mine also applies internal policy and procedures the achievement of the envisaged strategy. designed by Kumba Iron Ore in the execution of its Sustainable development is one of the SBGs. community engagement and development activities. relevant policies and procedures - 1
Key Elements Key Actions Kumba’s ‘Good Citizenship’ Principles – Our Responsibility to Stakeholders Communities Promoting strong relationships with communities Enhancing the capacities of the communities of which the operation is part Seeking regular engagement about issues that may affect communities Supporting community projects that reflect the priorities of local people and which are sustainable and cost effective Assessing the contribution the mine makes to local social and economic development
Customers and business partners Seeking mutually beneficial long-term relationships with business partners, contractors and supplies, based on fair and ethical practices
Government bodies Respecting the laws of host countries, and being seen as socially responsible
NGOs Aiming for constructive relations with relevant NGOs
12. commitments and leadership relevant policies and procedures - 2
Kumba’s ‘Good Citizenship’ Principle – Principles of Conduct Corporate citizenship Seeking to make a contribution to the economic, social and educational well-being of communities associated with the mine, including through local business development and by providing opportunities for workers from disadvantaged backgrounds Recognising the sensitivities involved in addressing issues relating to the cultural heritage of indigenous communities Ensuring that matters relating to indigenous communities are handled in a spirit of respect, trust and dialogue
Employment & labour rights Promoting workplace equity and seeking to eliminate all forms of unfair discrimination Providing employees with opportunities to enhance their skills and capacities
Safety, health and environmental Working towards striking an optimal balance between economic, environmental stewardship and social development
Safety, Health and Environmental Policy Making a contribution to addressing priority community health issues
Conservation of environmental resources and demonstrating active stewardship of land and biodiversity (where these are issues, the mine is likely to get feedback during consultation – additional environmental studies, outside of the scope of this assessment, may need to be undertaken)
Management Principles Commitment Allocation of adequate financial and human resources to ensure that the mine’s social issues are dealt with in a manner that reflects the high corporate priority given to these issues
Risk assessment Accurately identifying, assessing and prioritising the hazards and risks associated with all operating activities
Prevention and control Preventing, minimising or controlling priority risks through planning, design, investment, management and workplace procedures
Performance Setting appropriate goals, objectives, targets and performance indicators for all our operations, as well as meeting all applicable laws and regulations and, where appropriate, applying international best practice
Evaluation Accurately monitoring, reviewing and confirming the effectiveness of management and work place performance .13 commitments and leadership
Kumba Iron Ore’s draft Sustainable Development Policy, Engagement continues throughout the life of the project, Stakeholder Engagement Standard and Social Responsibility whether an education intervention, or a new pipeline. Standard are also relevant guiding documents. Partnerships are also a feature of the Safety, Health and Partnerships Environment (SHE) Department. The department regularly engages with the authorities – DME, DWAF and DEAT – and also with suppliers, academic institutions and the The positive developmental impact that Sishen Mine has South African Chamber of Mines. had can be attributed in part to the strong partnerships it has formed with a range of local and national agents. The table below lists some of the many collaborative To ensure that socio-economic success is attained, it is projects that the mine has initiated in response to identified imperative that synergies are achieved through public policy and more general stakeholder aspirations. In partnerships with affected and interested stakeholders. total, in 2007, the mine invested R 38 million in community The mine partners with local authorities in its community projects, one of the highest investments by any mine in development efforts as well as with relevant South Africa. organisations which specialise in particular fields. Across the board, projects are not started unless all stakeholders have been consulted and an appropriate degree of “buy-in” achieved. social development partnerships
Northern Cape Provincial Sishen Mine Initiatives Impact Development Targets 2004 – 2014 Annual GDP growth rate of 4% - 6% Kumba New Horizons entrepreneurial > 50 new businesses established per year programme Reduce unemployment by 50% Creation of 200+ employment opportunities Black Economic Empowerment (BEE) initiatives per year for mine rehabilitation, brick manufacturing, recycling and vehicle maintenance
Implementation of the Enterprise Development Hub Improve literacy rate by 50% Early Childhood Development School readiness for 300 learners (ECD) / Grade R facility Improve the efficiency and effectiveness of Teacher development, learner support material institutions of learning Education Quality Improvement Programme and upgrading of infrastructure at seven local (primary and high schools) schools
Facilitated the introduction of engineering subjects at Kathu High School Reduce infant and maternal mortality by two Ancillary Health Learnership To reach 200 mothers per annum through thirds information sharing sessions. Community outreach through peer educators Stabilise the prevalence rate of HIV and AIDS To reach 3000 individuals per annum Provision of the Ulysses Gogi Modise Wellness Clinic (Kathu) Public access to accredited Anti-Retro Viral (ARV) clinic within the Gamagara Local Municipality. Redistribute 30% of productive agricultural land Making land owned by the mine available Making available 20 000 hectares of mine land to Historicaly Disadvantaged South Africans to HDSA farmers to HDSA farmers on a rental basis (HDSAs) Agricultural skills development programmes Increase skills of HDSA farmers
Meat processing plant Processing of organic meat products within the Northern Cape Specialised game breeding programmes 14. Venison to be processed at the plant commitments and leadership Sishen Mine is located in the Northern overview of Cape Province, the largest province neighbouring in South Africa. Despite its size, the communities province has the smallest population, of just over 850 000. overview of neighbouring communities The Northern Cape Province has a land mass of 361 830 km2, covering approximately 30% of South Africa’s land area. It is bordered by the Atlantic Ocean, Namibia, and Botswana to the west, Northern Cape demographics northwest and north, Despite having the largest surface area in South Africa, the province has respectively. It consists of the smallest population, of just over 850 000, which is approximately 1.8% of the population of South Africa. This is comprised of a sizable 26 Magisterial Districts, coloured population of approximately 435 000, followed by which have been divided blacks (279 000), whites (122 000), Indians (2 300) and others including San, Khoi, and Khwe communities. into five District Municipal Of all five district municipalities, Frances Baard has the largest population Areas (Frances Baard, (303 239). The Kgalagadi District Municipality has an estimated Karoo, Namaqua, Siyanda population of 36 881, with an average household size of approximately 5.1 people. The largest proportion of the population within the and Kgalagadi). The major Kgalagadi District Municipality lives within the Moshaweng municipal towns in the district are area (56.2 %) followed by Ga-Segonyana (34.2%) and Gamagara with 9.6 % of the total population. Kuruman, Hotazel, Deben Kathu is the iron ore powerhouse of the region and is located in the and Kathu. Gamagara Local Municipality, which also includes other towns such as Dingleton, Sesheng and Deben. Sishen Mine is one of the largest open cast iron ore mines in the world.
Out of the 4 789 households in the Gamagara municipal area, an estimated 4 007 are formal houses and 782 are informal, and almost all are in close proximity to mining operations.
Age and gender structure
There are more women (421 559) than men (401 168) in the Northen Cape.
The Northern Cape population is a young population with 57.7% of the population being younger than 30 years old. However, the population age distribution in the Northern Cape shows a sharp decrease for the 20-24 age group range. This is attributed to, amongst others, people in this age group relocating in search of job opportunities and tertiary education.
.17 overview of neighbouring communities
Education
Since 1996, the population of the Northern Cape has been showing an increase in the number of people attending school. Since 2001, the number of people with primary and secondary education increased to 71.3% and those with tertiary qualifications by 3.7%.
The educational profile of the towns and settlements around Sishen Mine differ significantly. The graph below indicates that Deben has the highest number of uneducated people, followed by Mapoteng and Dingleton. The Kathu and Sesheng populations have higher numbers of educated individuals.
The skills levels within these communities follow that of the education levels. The communities with the least number of educated people have the least number of skilled people, and visa-versa.
level of education (%)
70 60 50 40 30 20 10 0 No Some or High Matric - Certificate Diploma University Other schooling primary School Grade 12
Dingleton Kathu Sesheng Mapoteng Deben Consolidated
Housing
The availability of housing is an important impacting factor in the local economy of Gamagara. Approximately 77% of the households which took part in the survey use their residencies for the long term. The following graphs indicate that Deben has both the highest number of long term household residencies and the highest number of home owners. On the other hand, Deben has the second highest number of informal dwellers, indicating the need for the provision of permanent dwellings in this town.
From these graphs, and assuming that most contractors are temporary residents who tend to rent or stay in informal homes, it can be assumed that Sesheng, Dingleton and Mapoteng have a fairly high proportion of contractors. Mapoteng is the settlement that urgently needs housing development as over 50% of its residents stay in informal dwellings.
18. overview of neighbouring communities
term of residence per settlement (%)
100
80
60
40
20
0 Dingletons Kathu Sesheng Mapoteng Deben Consolidated
Long term Short term
In keeping with the requirements of the South African Mining Charter, Sishen Mine has introduced a housing scheme aimed at providing low-cost houses for its employees living within the surrounding areas. The mine is one of the first in the Northern Cape Province to implement a project of this magnitude for its employees. The mine has already invested over R5 million for the development of housing to match demand in Kathu. This has seen the reduction in informal dwellings in the Kathu area as shown below.
However, there is still much work to be done by the mine since there is a high number of residents staying in informal dwellings.
type of home ownership by settlement (%) 60
50
40
30
20
10
0 Dingletons Kathu Sesheng Mapoteng Deben Consolidated
Tenant Home owner Kumba housing Informal dwelling .19 overview of neighbouring communities
In communities around the mine, the prevalence of HIV and AIDS and other diseases is high. This is especially noticeable in informal settlements and poorer rural communities. In this regard, the mine is committed to addressing these issues by developing a comprehensive HIV and AIDS programme.
Health
Despite the effort that all tiers of government have put in place in terms of investing in primary and secondary health care facilities, access to these facilities by poorer communities remains a hurdle. Over the long term, this will have a negative impact on Sishen Mine since it labour pool will be affected.
20. overview of neighbouring communities The Mining Charter outlines the sishen mine’s creation of employment socio-economic opportunities and the upliftment of impact surrounding communities as key focus areas for mining companies. sishen mine’s socio-economic impact
Overview The mine also contributes to the Gamagara area through employment, skills development and various other training The Mineral and Petroleum Resources Development Act is initiatives. As a requirement of South African legislation, the bedrock for transformation in the South Africa mining the mine annually submits the following employment and industry. Through the introduction of the Mining Charter, training reports: it stresses the creation of employment opportunities and • The workplace skills plan to the Mining the upliftment of surrounding communities as key focus Qualification Authority (MQA) areas for mining companies. This is achieved through • The Employment Equity Report to the Department comprehensive human resource programmes, employment of Labour equity policies and rural and community development • An annual Training Report to the MQA. initiatives. The charter requires mining companies to provide a scorecard that outlines their performance in These reports outline the mine’s socio-economic respect of these requirements. contribution with respect to training, transformation and development. Sishen Mine is one of the largest contributors to the economy of the Northern Cape. It is committed to Key facts upholding the requirements of the charter. In addition to these requirements, stakeholders expect Kumba Iron The following tables illustrate the important contribution Ore to address key developmental issues within the area. that the mine has both regionally and nationally by Therefore, the mine aligns all its development initiatives showing its current contribution as well as its predicted with the local economic development (LED) strategies and future economic contribution by way of projects in the integrated development plans (IDP) of the Gamagara Local pipeline. Municipality and the Kgalagadi District Municipality. Using the LED and IDP as a guide, the mine compiled its social and labour plan (SLP), which outlines its commitment to contributing to the socio-economic development of its employees and the surrounding communities. sishen mine’s economic impact (R millions)
Direct impact Contribution to GDP R 4 585 Gross Operating Surplus R 1 899 Household Income R 1 872 Employment for SA 10 216 Imports for SA R 669 Capital R 14 841 Personal Income Tax R 327 Company Income Tax R 347 Indirect Tax R 175 Total Tax R 849 .23 sishen mine’s socio-economic impact
economic impact of future projects (R millions)
Project Product Capex Turnover Project labour Operation capacity Mt pa labour Sishen South 9 R 2 700 R 2 250 1 800 500 SEP II 10 R 3 800 R 2 500 1 800 500 SEP II Phase 2 5 R 2 000 R 1 250 900 200 Sishen Pellet 1.5 R 2 000 R 500 1 000 200 Project Total impact 25.5 R 10 500 R 6 500 5 500 1 400
Education and training
The South African mining industry is facing a growing shortage of skilled workers and Kumba Iron Ore is no exception to the case. One of the mine’s challenges during 2007 concerned the recruitment of appropriate skills to enable the ramp-up of the SEP plant to full capacity. To ensure that both existing and new plants operate optimally, despite the fact that each will contain a proportion of relatively inexperienced employees as interplant transfers take effect, the mine engages in training and developing employees. The mine also spends money on education interventions within the local community ranging from early childhood development through to technical training for secondary school learners.
Training and skills development
The critical lack of skills has informed the mine’s strategy to manage and develop its talent through a skills development programme. This programme is not only aimed at improving the existing skills of the company’s employees, but also the surrounding communities.
skills levels in surrounding settlements (%)
80
70
60
50
40
30
20
10 0 Unskilled Semi skilled Skilled Professional
Dingleton Kathu Sesheng Mapoteng Deben Consolidated 24. sishen mine’s socio-economic impact
The previous graph shows the level of skills in the Technical training is provided by the mine’s skills training communities around the mine. centre and also by the Tshipi Training Centre. The latter is focussed on providing skills to the community, the former The mine’s skills development programme focuses on to mine employees. developing its staff and providing them with technical, personal and leadership skills to enhance their personal and The SIVOS technical training facility, owned and operated professional growth. by Sishen Mine, is one of the first training institutions fully accredited by the South African Mining Qualifications The mine has an extensive training programme focused Authority (MQA) and one of a handful in the country. internally on its employees and externally on local people. This facility trains people from all over the country who gain valuable skills which are deployable anywhere. From an education and training perspective, the Northern Cape: Employment opportunities 1. lacks facilities for education and experiential / vocational training The mine is by far the biggest employer in the Gamagara 2. lacks access to resources for those wanting to Local Municipally. Positions that are in demand at the study / train mine range across the spectrum of skills from senior 3. has poor quality education management to artisans. 4. lacks employment opportunities. The mine employs approximately 10 216 people including To cope with the skills shortage, the mine has a contractors, mostly from towns around the mine, although comprehensive training programme. Its training department most contractors originate from elsewhere. The current is staffed by 70 people and has four focus areas: contractor complement is a result of the SEP project and 1. Functional training this number will decrease in 2008. 2. Technical training 3. Organisational development Surrounding communities have relied on the mine for 4. Learning technologies. employment, which has been provided in three different ways: Training is provided based on need and not initiated • Direct employment at the mine in isolation. The mine’s training supports community • Indirect employment as contractors enterprise development initiatives that are the responsibility • Induced employment through employ spending of the Sustainable Development. on local goods and service and public sector jobs supported by taxes paid by mine. Functional training provided to mine employees consists of: • Adult basic education and training (ABET) The following graph outlines the number of people • Safety, health, environment and quality (SHEQ) employed per household in towns near the mine. • Mining The graph shows that the number of households without • Plant employment is higher in Deben (25%), while 70% of the • Engineering. households in Kathu have at least one person employed.
.25 sishen mine’s socio-economic impact
employed persons per household (%)
80
70
60
50
40
30
20
10 0 None 1 Employed 2 Employed 3 Employed 4 Employed
Dingleton Kathu Sesheng Mapoteng Deben Consolidated
Unemployment remains one of the major challenges in some of these areas. The level of unemployment in communities around the mine differs due to skill and education levels. The next graph shows the number of unemployed persons per household. Kathu and Sesheng, both located closest to the mine, have the highest number of employed persons per household; Deben and Mapoteng have the highest number of households with at least one person unemployed compared with other towns.
unemployed persons per household (%)
30
25
20
15
10
5
0 None 1 Unemployed 2 Unemployed 3 Unemployed 4 Unemployed
Dingleton Kathu Sesheng Mapoteng Deben Consolidated 26. sishen mine’s socio-economic impact
Employment equity
The mine is committed to ensuring equity within its workforce through transforming itself to represent South Africa’s demographics. To this effect, the mine has developed an employment equity policy which is supported by procedures that promote equity and diversity in the workplace. Transformation is also a strategic business goal. As a requirement of the Employment Equity Act, every employer should design an employment plan to indicate company progress and / or performance against set targets. Therefore, in compliance with the relevant legislation To meet these targets, the mine’s management continues the mine submits an annual report on progress made in to identify employees to be targeted for accelerated increasing the number of HDSA employees. development and training. Furthermore, young people from historically disadvantaged backgrounds are being recruited The mine will implement the employment equity plan in and measures put in place to develop and retain these compliance with the Mining Charter. The charter states promising candidates. that by 2009, 10% of workforce, especially those involved in core mining activities, should be women and 40% of Through these and other efforts, the mine has achieved management personnel should be HDSAs. a 31% HDSA representation in management and 11.4% women in mining. Women make up 12.5% of the mine’s management team. employee profile
Occupational level African Coloured Indian White Total M F M F M F M F Legislators, senior officials, managers & owner managers 6 0 1 1 1 0 56 8 73 Professionals 12 1 6 0 0 0 66 11 96 Technicians & associated professionals 52 5 44 0 0 0 202 24 327 Clerks 73 32 10 36 0 1 25 100 277 Service workers, shop & market sales workers 61 25 5 4 0 0 5 2 102 Craft & related trade workers 385 8 158 2 1 0 303 3 860 Plant & machine operators & assemblers 1 229 72 109 18 0 0 122 10 1 560 Labourers & related workers 101 26 9 2 0 0 1 1 140 Total permanent employees 1 919 169 342 63 2 1 780 159 3 435 Temporary employees 13 5 0 6 0 0 0 4 28 Contractor employees 2 473 205 585 37 0 0 932 113 4 345 Total permanent, temporary & contractor employees 4 405 379 927 106 2 1 1 712 276 7 808 Apprentices & Section 18(1) 18(2) learners 202 66 98 10 0 0 65 1 442 Total employees & learners 4 607 445 1 025 116 2 1 1 777 277 8 250
.27 sishen mine’s socio-economic impact
Since the original Mining Charter target of 10% women in mining has been met, the mine decided to raise the target for women in mining to 12% by 2011.
mining charter targets for women 2007-2011
Employment level Actual Forecast 2007 2008 2009 2010 2011 % No. % No. % No. % No. % No. Senior management 2 2 3 3 3 Middle management 19 33 34 36 38 Junior Management & non-managerial 143 135 135 140 144 Semi-skilled 199 196 196 198 203 Unskilled 29 46 46 46 46 Women in mining 11.41 392 11.41 412 11.45 414 11.71 423 12.01 434 Total employees 3 435 3 613 3 613 3 613 3 613
Regarding HDSAs in management, Sishen Mine has considered various interventions that will ensure that the Mining Charter target of 40% is met by 2009 and the mine’s own target of 42% by 2011. mining charter targets for HDSAs in management 2007-2011
HDSA in Management Actual Forecast 2007 2008 2009 2010 2011 Senior management 3 5 5 5 5 Middle management 53 71 76 78 80 Total mine management 178 199 202 202 202 Total HDSAs in management 31% 56 38% 76 40% 81 41% 83 42% 85 Total employees 3 435 3 610 3 613 3 613 3 613
28. sishen mine’s socio-economic impact
Procurement from HDSA suppliers
The mine has a Preferential Procurement Policy aimed at maximising purchases from HDSA suppliers and supporting black businesses. The policy is guided by the Mining Charter and the Department of Trade and Industry’s Broad-Based Black Economic Empowerment (BBBEE) scorecard.
Purchases from HDSA suppliers accounted for 49.5% of total procurement expenditure, well above the target of 30%. procurement expenditure
Description Capital Consumables Services Total Total procurement spend R 781 277 602 R 940 722 009 R 1 020 444 215 R 2 742 443 827 Total discretionary spend R 570 039 702 R 718 871 361 R 469 614 457 R 1 758 525 522 HDSA TARGET Total HDSA spend R 247 839 187 R 298 418 613 R 323 708 326 R 869 966 128 % HDSA of total discretionary spend 25% 43.5% 41.5% 68.9% 49.5%
The mine is committed to increasing procurement from Northern Cape suppliers, and in particular suppliers from within the district municipality. Between January and September 2007, over 19% of services and 12.3% of consumables procured were sourced from suppliers within the district. Over R 8 million worth of products and services were sourced from within the province and the remainder from elsewhere in South Africa. Representatives of the mine sit on the Northern Cape Mine Managers’ Forum at which local procurement issues and opportunities are discussed. procurement by location January – September 2007
Location Services Consumables Spend % Spend % Within the district R 59 200 871 19.9 R 70 228 125 12.3 Within Northern Cape R 3 322 786 1.1 R 4 763 681 0.8 Elsewhere in SA R 235 654 621 79.0 R 496 519 062 86.9 Total R 298 178 278 100 R 571 510 868 100
.29 Sishen Mine engages with different stakeholder stakeholder groups on a regular basis engagement to inform them on issues regarding the company’s business development and to interact in a meaningful way. The mine’s socio-economic development stakeholder initiatives and stakeholder engagement engagement programme are coordinated by the Sustainable Development Department, which is also responsible for community affairs and public relations. The mine has formed a CSI committee which assists with the management of social and community related issues. The committee develops the annual objectives for community involvement and plans for their implementation.
Principles and strategy Stakeholder forums
The mine subscribes to Kumba’s “Good Citizenship” Each year the mine engages with key stakeholders and principles, which are founded on being a responsible also participates in business forums where concerns and business and creating value for all stakeholders, including challenges are raised and collectively addressed. affected communities. These principles provide a set of values that are applied at the mine to bridge the gaps The stakeholders include: between the mine and its surrounding communities. • Employees and contractors Sishen Mine engages with different stakeholder groups • Local community leaders and representatives of on a regular basis to inform them on issues regarding community based organisations the company’s business development and to interact in a • Farmers meaningful way. • Shareholders • Customers and supplies Various issues are addressed by the mine with its • Business partners stakeholders, including community socio-economic • Unions development, environmental issues, risks and occupational • NGOs health issues. The engagement strategy is such that there • Authorities is constant interaction between all stakeholders through • Media forums that allow for questions and concerns to be raised • Industry associations. and feedback to be provided. Interaction with key stakeholders The strategy is further implemented through a community forum around the mine, which creates a platform where During 2007, the mine consulted a variety of stakeholders. community issues and concerns are raised and feedback The following tables show each stakeholder grouping and received and fed into strategic planning. the method and frequency of engagement between the mine and the stakeholder.
.31 stakeholders engagement
stakeholder engagement plan - 1
Stakeholder Interest Method Frequency Responsibility Provincial Engaging provincial One-on-one meetings Quarterly Mine and head office Government government on issues of relevance on a regular basis, continuously seeking partnerships and support on issues of importance District Municipality Engaging district IDP Forum meeting Quarterly Mine authority on issues One-on-one meetings of relevance on with mayor regular basis through district Integrated Development Plan (IDP) forums and other district committee meetings, updating and informing the district council on Sishen Mine initiatives within the district. Continuously seeking new partnership on issues of importance Local Municipality Engaging with One-on-one meetings Monthly Mine and head office Gamagara local with mayor and municipal officials council and council on issues IDP Forum of relevance on a regular basis through various forums and committee, updating and informing the local authority on Sishen Mine initiatives within the municipal area. Continuously seeking new partnership on issues of importance Traditional Councils Engaging with One-on-one meetings Bi-annually Mine and head office traditional leaders on issues of relevance on a regular basis, sharing information and discussion issues of concern 32. stakeholders engagement stakeholder engagement plan - 2
Stakeholder Interest Method Frequency Responsibility Contractor’s Forum Sharing information, Forum meetings Monthly Mine representatives building partnerships on various issues, addressing issues of concern Stakeholder Sharing information Forum meetings Quarterly Mine representatives Environmental and discussing Management Forum environmental issues mainly due to but not only caused by mining activities Gamagara Health / Sharing information Forum meetings Quarterly Mine representatives HIV Forum and discussing health and HIV concerns within the Gamagara municipal area and forming meaningful partnerships to address health and HIV issues Community Policing Sharing information Forum meetings Quarterly Mine representatives Forum and discussing community safety concerns within the Gamagara municipal area and forming meaningful partnerships to address these issues NGOs, CBOs, NPOs Partnering on the Meetings Monthly / quarterly Sustainable delivery of community development staff development initiatives, assisting organisations through board representation Northern Cape Sharing information Meetings Monthly Mine representatives Mine Managers’ and partnering to Association address relevant topics
.33 stakeholders engagement
Outcome of the SEAT engagement process
The mine’s engagement with its key stakeholders provides management with first hand information on the impact of its activities on neighbouring communities. It also allows the mine to pinpoint those areas where the mine should focus in terms of community involvement. Engagement is not appeasement; it is an important management tool.
During the SEAT engagement process, various issues were raised by the residents of Dingleton, Kathu, Sesheng, Mapoteng and Deben. Most issues raised were associated with housing, infrastructure and basic services.
The graph below shows the issues raised during the process.
issues raised during the SEAT process with frequency (%)
30
25
20
15
10
5
0 # Crime Water Water Social ills Blast / Dust Road safety Road safety Discrimination Resettlement Health services Influx of people Environmental aspects Environmental Community development Community recreational facilities Community recreational Poor communication and feedback Housing infrastructure and basic services Housing infrastructure Local unemployment / underemployment / unemployment Local
Only in Dingleton Only in Kathu
34. stakeholders engagement
There are other noteworthy issues that were raised which require comment.
Firstly, although seemingly insignificant from the graph, the resettlement of Dingelton’s residents will be a major undertaking on the part of the mine. Dingleton was built in the 1950s by the mine to house workers. It will also be a difficult process for the Dingelton residents since they will be moving away from a place in which they have resided and which is their home. The communities have asked to be resettled because the houses they now live in are nearing the end of their planned lives, and hence many are Consultations with affected farmers and DWAF have in poor condition, and because they were built, by modern been ongoing to determine the scope of additional standards, too close to the mine. This has been exacerbated work required. In the meantime, the mine is assisting by an increase in mining activity at both Sishen Mine and a affected farmers with water by installing boreholes and new neighbouring mine. The relocation of the community constructing a water pipeline that will connect the farmers will allow the mine to provide improved housing and to the Gamagara water pipeline. Agreements to provide infrastructure. assistance for grazing were also reached with the majority of downstream farmers. Secondly, water is an important issue of concern. Farmers surrounding the mine have complained that the Thirdly, the sudden increase in Kathu’s population mine’s dewatering activity has affected their water supplies (associated with the expansion projects) has had a wide and their ability to water their livestock. Several studies range of negative effects: increased traffic, increased were conducted by specialists appointed by the mine to pressure placed on local services such as the sewerage determine the impact of dewatering on these farmers. plant, increased incidents of rape and assault and increases These studies were peer-reviewed by the University of the in alcohol abuse and prostitution. Western Cape which was appointed by the Department of Water Affairs and Forestry (DWAF) after some farmers The mine has a role to play in offsetting these impacts by disputed the findings of earlier studies. In particular, the providing direct support to the local municipality as well review raised doubts on the boundaries of the impact zone as by educating its own employees about the dangers of as defined by previous investigations. alcoholism.
.35 Sishen Mine is intimately involved in sishen mine’s the creation of social and economic support for well-being through a range of socio-economic initiatives. development sishen mine’s support for socio-economic development
Overview Education
Aside from the mine’s role in employment and the The educational quality improvement programme (EQUIP), procurement of services, it is also intimately involved in the which is supported and funded by Kumba, is an integrated creation of social and economic well-being through a range programme focussing on the delivery of quality education of initiatives that are not necessarily linked to the mine. to all pre-primary, primary and secondary school goers. The Both Kumba and Anglo American have a long-standing programme focuses on the holistic development of learners commitment to working closely with communities, and to through integrated education interventions, and ultimately being responsive to their needs. This is achieved through focuses on the quality of the learning experience which on-going engagement and consultation of stakeholders includes intangibles like teacher motivation, quality of that are impacted by the company’s activities. facilities and the quality of teaching materials.
Sishen Mine has a history of working with communities To understand the educational needs of Gamagara, the that has evolved over time to match the complexities mine contracted the services of a consultant to conduct of today’s business environment. Corporate social a needs audit. This included schools in Kathu, Deben (in responsibility at the mine implies investing and enriching progress) and Olifantshoek (not yet started). The audit communities around its operation and the region as a runs from 2007-2011. The primary output of this audit is whole. the identification of educational needs the mine is able to support. EQUIP produces business plans for the various In 2007, the mine spent R 38 million on its community interventions and the mine is able to choose where it wants development and related programmes. These focused on to get involved. skills development and community upliftment programmes designed to enhance employment opportunities and The following are some of the key projects in which Sishen improve quality of life. Mine is participating.
.37 sishen mine’s support for socio-economic development
Kathu High School Project mandates were evaluated and approved for the establishment of a computer-based learning centre and a technical division at the school.
Computer-based learning centre The lack of access to technology has always been an issue for HDSA learners. The establishment of the computer centre aided the ability of learners to manage their learning and set their own goals. The centre was equipped with 100 computers complete with all the necessary mathematics and science software. The advantage of computer-based learning is that it enhances learners’ ability to obtain information themselves.
Technical division Addressing skills shortages is not only the responsibility of the Department of Education but rather a partnership between all stakeholders. The mine has an acute lack of skilled artisans. To address this problem, Kumba funded the establishment of a technical division at the Kathu High School. This facility will allow learners to start their technical careers in their first year of high school, grade 8. When these learners complete grade 12, the programme gives them a better chance of being accepted at the local Further Education and Training (FET) College or into a university or technical university. The objective is also to ensure that once learners have completed their studies, they are employed at the mine and their skills are used to benefit the local community. Technical streams that can be followed include electrical, civil and mechanical engineering. Kumba also recruits bursary students through this programme to further their studies in the engineering disciplines.
Kathu Campus, language laboratory A computer-based language laboratory was established at the Kathu campus of the Northern Cape Rural FET College. The laboratory addresses the language barrier that slows progress of learners coming from historically disadvantaged communities. The programme will specifically address the language backlog in technical courses. The software used allows learners to enhance their reading skills at their own pace.
Kathu Primary School The needs audit also extended to the Kathu Primary School. The resulting plan focused on projects that included information signage at the entrance to the school, purchasing textbooks, crucial maintenance of toilets and funding a Neuro-Link development process for both learners and teachers.
Neuro-Link is a total brain-based developmental programme whose objective is to equip teachers and learners with the best available technology for education and human development, the end result being higher levels of emotional intelligence. The programme has the following outputs: • Better understanding by teachers and parents of unique learning methods as well as mental preferences fit for each learner • Better performance for learners • Effective stress management • Attitude and behavioural changes • Higher brain fitness levels.
Kathu Early Childhood Development Centre Statistics have proven that a cause of poor results in primary and especially high school learners is a direct result of none or too little cogni- tive development in the early childhood developmental stages.
The early childhood development centre was established to ensure that children and specifically HDSA children will have affordable and easy access to an educational institution where they will receive maximum exposure to quality developmental programmes. The centre provides a safe environment that develops and enhances cognitive development among children.
The facility is equipped with a playground, traffic course, shaded sand boxes and educational toys. To attend to the 150 learners in the centre, six teachers with the necessary qualifications were appointed. 38. sishen mine’s support for socio-economic development
Enterprise development Boitirello Jewellery Unique and exquisite silver, gold and other jewellery is The mine’s community and local economic development manufactured by the Boitirello Jewellery project, which programme has three primary focus areas: health and was founded through the Anglo Zimele small business welfare, education and enterprise development. development programme. The project is made up of six women from Kathu. Anglo American has been supporting small businesses since the inception of its Anglo Zimele support and funding The project is partly a response to the government’s goal programme in 1989. The aim of the enterprise development of ensuring that precious metals are beneficiated locally. interventions is to assist local enterprises with finance, skills All the jewellery manufactured is personally designed by and mentoring so that these can take root and flourish. The the staff. These designers have all completed the NQF 3 principal enterprise development projects undertaken in the Qualification – Production of Jewellery and are awaiting the last six years are summarised below. external moderation of their Portfolio’s of Evidence.
Wood and charcoal project Through the project, skills transfer and craftsmanship are The Black Thorn Tree, Acacia mellifera, is classified as an ensured through the production of high quality products. indigenous invader – it occupies valuable land and reduces the availability of grazing. The wood and charcoal project was Carwash project conceived in response to a need to clear the area of the pest. Any visitor to Sishen is instantly reminded that mining can The project has now been transferred to local ownership and be a dusty business. All mine vehicles are coated with is a fully fledged small business. It recently was appointed to brick-red mud in the rains and a similar coloured powder in supply the stores within the Kruger National Park with all of the dry season. their wood and charcoal requirements. Thus an opportunity presented itself – the space for a local Trees on farms are cut down and processed into marketable entrepreneur to deliver a cleaning service to the mine. fire wood. Teams are deployed on these infested farms to Currently, the service includes the cleaning of parts at the trim and cut down the trees. The trimmed wood products workshops before they are fitted back into vehicles or are transported to the depot at Deben where they are equipment. Sandblasting of parts is also included in the spread onto conveyor belts to dry for 3 months before they service delivered. With this level of attention, the lifespan are ready for market. The wood is packed in 7kg and 20kg of the mine’s vehicles is prolonged through regular and bags and transported to Gauteng, the Western Cape and thorough cleaning. Mpumalanga. In addition, the need for an employee car wash facility was This project employs 15 people as well as two teams of four identified. This facility is now being built which will cater people each on the farms. for private vehicles. Mine employees will be able to leave their vehicles for professional washing at the centre. A store room is being built and it will be utilised to store buffer stock to ensure a continuous availability of wood. Fifteen people are currently employed at the parts wash bays. Five will be employed at the car wash facility. Compost project This project was initiated as a second phase of the Wood and New Horizon Entrepreneurial Project Charcoal Project at Deben. Eighty percent of the Black Thorn The New Horizon Entrepreneurial Project was launched Tree is used for firewood and 15% is left behind to prevent by the Premier of the Northern Cape in Kimberley during soil erosion. Of the 80%, 45% - 60% is utilized to produce 2007. Grade 10 learners from all the high schools in the wood products and the rest if classified as waste. Northern Cape were invited to submit business plans to be evaluated by a skilled panel for the possibility of The waste product is being used as one of the components to implementation. produce compost which is used in the rehabilitation of mine dumps. Other components that are added to the mix are In 2007, the project attracted 96 submissions of which organic material from the Kathu municipal transfer station, 24 business plans were successful and were subsequently horse dung from the Kathu horse stables and grass clippings funded with start-up capital of R 5 000 by the mine. from the Kalahari Golf Course. These businesses will be given an opportunity to grow .39 sishen mine’s support for socio-economic development
and then be evaluated against each other. The winning The second part of the project saw advertisements placed businesses (winner and two runners-up) will be announced to recruit HDSA candidates to partner the initiative. in October 2008 and will be awarded prizes. The project will have three shareholders: Anglo Zimele, ART The businesses that have been established vary from selling and an HDSA company (with Anglo Zimele planning to scrap metal, to flowers, a tuck shop at a school, catering eventually sell its stake to the HDSA partner). services and sandblasted glass for sale to tourists. Tyres will be bought from the mine for R 200 and processed When the learners leave school, they will have the option into different products. Extracting the rubber is done using to either continue with their businesses or sell them back to a stripping machine. One of the products that will be their school. produced and sold back to the mine will be rubber granules which are used as part of the blasting process. This initiative Dingleton cleaning services will produce many other spin-offs which will allow for more The contractor responsible for maintaining houses in job creation and empowerment. Metal rims will be sold to Dingleton was in need of a sub-contractor to render Arcelor Mittal for recycling. cleaning services; specifically the cleaning of carpets and lounge suites after the maintenance work was completed. Butterfield bread franchise This business was the first owned by a black person in Sishen Mine assisted with the creation of the business Kathu. It opened its doors to the public on 11 February by providing industrial carpet cleaning machines and an 2004 and is staffed by youths from surrounding areas. industrial vacuum cleaner to deliver the service. In its first year of operation the bakery received an award Dingleton tuck shop from the Butterfield franchise for the best newcomer The previous owner of a spaza shop – an outside table nationally and internationally. The business has grown and selling a limited range of goods – expressed a need to up is now a successful venture. It has moved to larger premises her business’s tempo by expanding the range of items she to cope with the demand for bread, pies and confectionary. sold. Health and wellness With the assistance of Sishen Mine, she now owns a small shop complete with electricity, shelving and a telephone. Rather than focusing solely on the symptoms of society’s Sishen renovated an old building within which she ills, the mine has decided to address its community operates. wellness interventions in an integrated manner. This means addressing the causes and the symptoms of those Plumbing enterprise behaviours that manifest in, for example, sexual violence, Kathu’s unprecedented growth has had the town’s entire alcoholism, sexually transmitted diseases including HIV and complement of plumbers sewn up. They have been busy AIDS and child abuse. with large projects and thus the individual home occupant has been left plumber-less. The health of a community has an impact on its socio-economic status. Therefore, the mine is committed, This gap has been partly filled – a Drain Surgeon franchise through partnering with the public sector and other has been set up and is owned in part by an HDSA. private stakeholders, to ensuring a healthy workforce and This person was recruited via Anglo Zimele and is now busy community. The mine has a comprehensive HIV and AIDS unblocking Kathu’s drains. programme in place, guided by a relevant policy.
Tyre recycling project Part of the waste recycling strategy at the mine includes the recycling of tyres. As a result of research and through the support of Anglo Zimele, a joint venture was concluded with a company called ART (Alternative Recycling Technology). ART has the necessary intellectual property with regards to various methods of tyre recycling. 40. sishen mine’s support for socio-economic development
The programme features numerous interventions, which include: • Distribution of condoms and femidoms • Voluntary counselling and testing (VCT) for employees and their families • A Wellness Programme is in place to provide emotional support, to coordinate access to medical aid for nutritional supplements and anti-retroviral treatment, and to coordinate access to hospice care when patients are in the advanced stages of AIDS • Contractor access to ARVs and VCT on a voluntary basis • Active peer educators in local communities. Advice is given on how to access government provided services.
The mine’s HIV and AIDS intervention programme is depicted as follows. HIV and AIDS intervention process
Mine peer educators Human resources
Community peer educators Mine, government and NGOs
Mine peer educators Training and awareness Industrial Theatre
HIV and AIDS
Condoms Mine and community
Wellness programme Mine clinic
VCT Mine and government clinics
Sexual violence South African Police Services
.41 sishen mine’s support for socio-economic development
During 2007, over 75 000 people were reached through To entice employees to get tested, the mine utilises a range the mine’s HIV and AIDS awareness campaign of which of methods: 74% were from the local district. In carrying out these and 1. Management visibility other activities the mine partners with various stakeholders. 2. The Lucky Draw: employees stand the chance of (See previous diagram) winning one of three cash prizes (R 1 000, R 750, R 500) During World AIDS month (December), the mine was 3. Reducing the emotional and psychological charge involved in a variety of activities ranging from HIV and associated with getting tested by creating a AIDS training and awareness, to condom distribution and relaxed atmosphere in the areas where testing peer group activities. To succeed in the fight against HIV, takes place it is imperative that the mine forges partnerships with key 4. Free ART treatment. stakeholders. Therefore, the success of the mine’s World AIDS month effort was also due to the partnership it The mine is not only focused on identifying and treating formed with the Ga Segonyane AIDS Council. those persons with HIV and AIDS. It also facilitates awareness raising through its extensive peer education By the end of 2008, the mine will have tested 80% (3 102) programme that covers a large portion of the district of its workforce, up from the 74% (2 867) who already municipality. Reaching out to communities takes various know their status. Employees are not always willing to face forms – theatre, face to face meetings and demonstrations. the truth uncovered by an HIV test. The audiences also vary: school children of varying ages, adults, farm workers and dwellers, farmers and sex workers. Language differences are accommodated in the various programmes. the mine’s HIV and wellness statistics
Category Sishen Mine 2007 Employees 3 877 VCT (number) 2 873 VCT (%) 74 (2008 = 80) HIV prevalence (%) 9.7* Number of HIV positive 205 Number of employees on ART 69 Number of employees on wellness programme 205
* Excludes contractors
As well as educational and treatment programmes, the mine invested in healthcare infrastructure in the form of the Ulysses Gogi Modise Wellness Clinic in Kathu. This public facility was opened in December 2007 by the Premier of the Northern Cape, Dipuo Peters. It renders a much-needed service to the community and is also able to address the need for testing a large number of contractors working at the mine. It also provides services to the local community and relieves the burden experienced by the local clinic.
The clinic was built next to the local hospital which has doctors and other medical services. The location offers easy access from the taxi rank and is within a short walking distance to all other medical services.
The mine financed the construction of the clinic and will be responsible for its operating costs (excluding medicines) for the first three years of operation, with the provincial government assuming responsibility after that point. 42. sishen mine’s support for socio-economic development
Over and above the HIV and AIDS interventions, the mine places a strong emphasis on employee wellness. The mine has a comprehensive employee assistance programme (EAP) which makes use of a social worker and other professionals as required. Services required are often in relation to alcohol abuse, bereavement, financial problems, post traumatic stress and family problems. The mine also focuses its attention on work issues which can cause accidents.
.43 The management and monitoring managment plan’s primary objective is to provide and monitoring guidance in the development of plan appropriate measures for the priority issues identified during the stakeholder engagement process. Community engagement and managment and development requires a monitoring plan management and monitoring plan. It focuses on the information required to implement an effective management and monitoring plan, and provides a template to guide the development of the plan.
Overview The plan also incorporates other management measures, including those already committed to, for example, as a The development of a management and monitoring plan part of the permitting process for new mines. and associated key performance indicators (KPIs) is divided into three activities: The information gathered during stakeholder engagement • Development of a management plan is fed directly into the mine’s stakeholder engagement • Development of a monitoring plan plan – specifically, those aspects of the plan that require • Development of relevant KPIs for identified the identification of management objectives, KPIs, impacts and associated management measures. accountabilities and resource requirements.
Having engaged stakeholders and documented their issues The mine has a real commitment to education, to and concerns, the plan provides an opportunity to address alleviating the skills shortage and to promoting enterprise the respective issues through the development of suitable development. After consideration of the community issues management responses. These responses should be clear, raised, various management and monitoring interventions credible, where appropriate quantifiable, and address were identified. These are shown in the following tables. genuine stakeholder concerns: progress in implementing them should be measurable.
A management and monitoring plan requires the development of KPIs. These enable the monitoring of the effectiveness of the management measures in meeting targets and objectives, and in assessing the extent to which the impacts are effectively addressed.
.45 management and monitoring tables The environment: issues and responses
Specific issue Responses Resources Timeframe Targets & KPIs Partnerships Dust About 60% of dust emitted is Environmental project leader 2010 Target: Anglo American from vehicles using gravel roads. Comply with relevant Technical Division Chemical dust suppressants are Dust task team legislation and standards used for suppressing dust on some of the main haul roads Annual dust suppression budget KPI: and water trucks are used on approximately R 40 million (includes Dust fallout (mg/m2/day) the other roads. Water spray operation & maintenance of water PM10 (µg/m3) systems are used to suppress trucks, Dust-A-Side, chemical dust at material transfer suppressants and others) points. The mine formed a team to look at opportunities for dust minimisation. An Air Quality Management Plan is being developed to ensure the mine implements industry best practices and complies with relevant legislation and standards Vibration from All vibrations caused by Relocation steering committee Final Inform stakeholders Local Municipality blasting blasting are carefully monitored established to focus on negotiation document through continuous to ensure compliance with process, comprising of: on relocation engagement with all District Municipality legal requirements. Quarterly • Kumba Head Public Affairs to Kumba identified stakeholders feedback is given to the • Corporate Manager Safety and Board by end Provincial Government affected community (Dingleton). Sustainable Development 2008 Formation of Community The Kumba Board has in • Head office Project Manager Relocation Committee Anglo American principle agreed to relocate • Manager Communication and Branding Board Technical Division the community, pending the • Head Legal decision by Registering Community management measurements outcome of the negotiation • General Manager Sishen Mine March 2009 Relocation Committee process between Kumba, the • Manager Sustainable Development as a legal entity for provincial government and the Sishen Mine negotiation purposes community. Appointment of relocation consultant in partnership with government structures and community
Complete negotiations and supply Kumba Board .47 with final relocation proposal management measurements Partnerships Mining Qualifications Authority (MQA) Construction Education and Authority Training (CETA) Other mines in e.g. the area, Sammancor, Idwala, Assmang Northern Cape Department of Education (service to level agreement train learners from as the province artisans) Targets & KPIs Targets Provide skilled and Provide trained artisans for Sishen Mine, other mining houses and of SA for rest ABET training Provide to eliminate illiteracy and to enhance the development of people (employees and community members) engineers and Provide technicians for Sishen the Mine through bursary scheme Ongoing Timeframe SIVOS Training SIVOS Training for Centre artisan training Training Tshipi for skills Centre training & ABET training Mining Training for Centre skilling of employees and learners in mining activities Plant Training for Centre training of employees and Learners in beneficiation activities University Bursaries for Engineers, and Technicians JIPSA students Resources Sishen Mine has developed a strategy to develop artisans for the mine, deliver ABET and other skills training to the employees and community members. Furthermore, leadership and operational training mine provides mining The mine intends to put 340 employees through initiatives these of learnerships All years. five next the over focused on those communities adjacent to the mine. are The mine has also invested significant sums in local the capacity of education which is designed to increase suitably qualified workers local schools to produce employment is given to Even though preferential that all people receive local people, the mine ensures when seeking fair and non-discriminatory treatment spent on skilling local employment. Millions of Rand are people for employment at Sishen Mine. The mine has a ABET and other strategy to develop artisans and provide skills training to community members make them employable. Responses Specific issue Kumba only hires qualified people other areas, from but not local people Skills development and unemployment: issues responses 48. management measurements Partnerships Partnerships Trade Unions Trade Local Municipality Deptartments of Local Government and Housing National Home Builder’s Registration Council (NHBRC) Consulting engineers Matlapeng Housing Co Lakutshona Housing Co Targets & KPIs Targets & KPIs Targets Affordable family Affordable housing to be to according provided needs Conversion of single quarters to decent provide accommodation Ongoing Phase 1 – 230 units completed and sold Phase 2 – 244 units completed and in of selling process Phase 3 – 596 units planned for 2008 to 2009 – 131 completed by July 2008 Phase 4 – 1250 units planned for 2010 to 2011 Ext 3 – 10 town houses completed Additional houses for expansion planned projects for Phase 5 & 6 – ± 3 323 units for 2009 to 2019 Conversion of 10 out of 18 blocks at single quarters into bachelor flats Timeframe Timeframe Fully staffed Fully staffed Human Resource Department Policies audited by Manadate Molefi Capital investment Land availability Expertise Technical assistance Housing allowances and subsidies Resources Resources Sishen Mine has adopted a Migrant Labour Policy which encourages fair and non-discriminatory practices for all employees and those seeking employment The mine maintains the same working conditions for all of origin employees regardless aimed at Sishen Mine has embarked on a housing project housing and living conditions for its employees. improving hostel accommodation will be the project, Through upgraded to single bachelor flats. Over R 90 million has been allocated to the housing project Responses Responses Specific issue Discrimination within the workplace and migrant workers Specific issue Not enough accommodation, and available not in houses are good condition Skills development and unemployment: issues responses and basic services: issues responses Housing infrastructure .49 50.
Housing infrastructure and basic services: issues and responses management measurements Specific issue Responses Resources Timeframe Targets & KPIs Partnerships Lack of water Sishen Mine pumps a considerable portion of excess Mine sevices Ongoing Municipality or electricity in water to the Gamagara Municipality for household some areas and garden use in the towns of Kathu and Dingleton. The remainder of the water is pumped into the Vaal- Gamagara pipeline for household, agricultural and industrial use in the villages, towns and mines in the Kalahari region
Eskom, the main supplier of electricity to the region, is working in partnership with the Kgalagadi District Municipality (which collaborates with the mine through the LED and IDP), in an effort to upgrade services in the area Poor Sishen Mine is involved in the integrated development Mine Ongoing Municipalities infrastructure planning process of the Kgalagadi Development Node, management and services which comprises four municipalities. Through this and Sustainable programme, the mine works with municipalities in Development improving the delivery of services to communities. Department To this effect, R 48 million has been allocated to these municipalities for 2008 - 2011
Recreational facilities: issues and responses
Specific issue Responses Resources Timeframe Targets & KPIs Partnerships Lack of All mine sports and recreational facilities are maintained Manager Ongoing Maintenance and Gamagara Local entertainment and supported financially by the mine. These facilities Kalahari upgrading of all Municipality facilities, shops, have been made available to all people at no cost Country Club Kumba owned sports swimming pool, facilities in Kathu ATMs Manager Sustainable Compilation of new Development sport and recreational development strategy Annual sport & recreation Active participant on budget the Gamagara Sports Council Safety and security: issues and responses
Specific issue Responses Resources Timeframe Targets & KPIs Partnerships Alcohol abuse, Sishen Mine shares information and discusses Sishen Mine Security Ongoing Actively support Kathu SAPS drugs, sexual community safety related concerns within Gamagara Department community policing violence municipal area. Through forums like the Community forums Gamagara Policing Forum, meaningful partnerships have been community formed to address these issues Purchase Dragger policing forums Communities are Sustainable System to assist overpopulated Development testing and Contractors make Manager prosecution of people communities under the influence unsafe Funding of alcohol
Lack of security Reduce the misuse of and safety alcohol and drugs.
Improving security at mine owned and community sites
Communication: issues and responses
Specific issue Responses Resources Timeframe Targets & KPIs Partnerships management measurements Kumba does Sishen Mine engages with different stakeholder Sustainable Implement Publish company Local Media: not inform groups on a regular basis to inform them on issues Development community information of Kathu Gazette communities regarding the company’s business development. Department engagement plan community interest in Kuruman Bulletin about decisions The mine endeavours to disclose information as January 2008; local media Volksblad quickly as possible to those likely to be affected by a Manager ongoing Gemsbok particular decision. Communication Convene community Sishen Mine meetings when needing to share information
Interact with .51 stakeholders as identified in engagement plan the future
The stakeholder reporting and feedback plan aims to provide guidance on the development of a stakeholder engagement report and reporting back to stakeholders on the findings and commitments arising out of the SEAT assessment.
This represents the culmination of the SEAT process. It takes implementers through the process of compiling all their findings, and then making these public – both through stakeholder feedback of the results and through the publication and distribution of the SEAT report.
SEAT reports should be transparent and candid about the mine’s strengths and weaknesses, and explain why as contained in its SLP. Engagement is also one of the practicalities or resource constraints may have ruled out means whereby the mine will monitor the impact of its implementing specific community suggestions. interventions.
Throughout this process it is critical that at least priority Over the next 12 months, Sishen Mine will implement stakeholders are given an opportunity to comment on the a new stakeholder database as well as a tool to assist it SEAT report and on the proposed responses, as this allows reporting on its interventions. for stakeholder comments to be considered in the shaping of future solutions. The mine has a real commitment to the communities in which it operates and it wants the interventions it makes to Based on the feedback derived from the SEAT process, the be sustainable and beneficial. It has a firm commitment to mine is in a much better position to focus its engagement the local IDP, to education, to alleviating the skills shortage activities and address those issues raised. Engagement and to promoting enterprise development. forms the basis of the mine meeting its obligations
52.