Website Links www.siyaqhubeka.co.za CONTENTS EXECUTIVE SUMMARY .................................................................................................. 2 1 INTRODUCTION.................................................................................................... 6 1.1 BACKGROUND......................................................................................................................... 6 1.2 STRUCTURE OF THIS REPORT ............................................................................................... 6 1.3 ACKNOWLEDGEMENTS........................................................................................................... 6 2 OBJECTIVES AND APPROACH............................................................................ 7 2.1 OBJECTIVES............................................................................................................................. 7 2.2 APPROACH .............................................................................................................................. 7 2.3 STUDY AREA AND KEY STAKEHOLDERS................................................................................ 7 3 OVERVIEW OF THE OPERATION ......................................................................... 11 3.1 BASIC INFORMATION ON THE OPERATION ............................................................................ 11 3.2 EXISTING SOCIAL MANAGEMENT SYSTEMS.......................................................................... 12 3.3 EXISTING COMMUNITY SOCIAL INVESTMENT INITIATIVES .................................................... 13 3.4 COMPLIANCE WITH ANGLO AMERICAN CORPORATE POLICY REQUIREMENTS ................. 16 4 OVERVIEW OF NEIGHBOURING COMMUNITIES ............................................... 17 4.1 INTRODUCTION........................................................................................................................ 17 4.2 AGE AND GENDER STRUCTURE............................................................................................. 17 4.3 EDUCATION.............................................................................................................................. 18 4.4 HOUSING.................................................................................................................................. 18 4.5 ACCESS TO WATER................................................................................................................. 18 4.6 AVAILABILITY OF SANITATION INFRASTRUCTURE.................................................................. 19 4.7 AVAILABILITY OF ELECTRICITY................................................................................................ 19 4.8 ACCESS TO TELEPHONE INFRASTRUCTURE......................................................................... 19 4.9 WASTE REMOVAL SERVICES .................................................................................................. 19 4.10 HEALTH STATUS....................................................................................................................... 20 4.11 INCOME AND AFFORDABILITY ................................................................................................ 20 4.12 EMPLOYMENT PROFILE .......................................................................................................... 20 4.13 ECONOMIC SECTOR PARTICIPATION...................................................................................... 20 5 ECONOMIC BENEFITS OFFERED BY SIYAQHUBEKA........................................ 21 5.1 INTRODUCTION........................................................................................................................ 21 5.2 EMPLOYMENT.......................................................................................................................... 21 5.3 VALUE ADDED.......................................................................................................................... 24 6 ISSUES RAISED BY STAKEHOLDERS................................................................. 25 6.1 POSITIVE ISSUES RAISED........................................................................................................ 25 6.2 NEGATIVE ISSUES RAISED ...................................................................................................... 25 7 ASSESSMENT OF ISSUES AND IMPACTS.......................................................... 27 8 MANAGEMENT RESPONSES TO ISSUES RAISED............................................. 28 9 INDICATORS AND MONITORING......................................................................... 33 9.1 STANDARD SEAT KEY PERFORMANCE INDICATORS............................................................. 33 10 ADDITIONAL ACTIVITIES TO BE CONDUCTED BY SIYAQHUBEKA................... 34 ENQUIRIES & GLOSSARY.................................................................................................................................. 34 ANNEXURE A: ASSESSING COMPLIANCE AGAINST ANGLO POLICIES AND PRINCIPLES............................. 35 1 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA EXECUTIVE SUMMARY INTRODUCTION The company also paid a total of R1.2 million (US$187,840) in taxes and other payments to the public This report presents the findings of a Socio-economic sector in 2004. SiyaQhubeka’s value added for 2004 Assessment Toolbox (SEAT) study undertaken for amounted to R9,832,000 (US$1.5 million). SiyaQhubeka Forests (Pty) Ltd (SiyaQhubeka), a commer- cial forestry enterprise located on the Zululand coastal plain of KwaZulu-Natal, South Africa. The report is also EXISTING SOCIAL MANAGEMENT part of the formulation of a strategic community develop- SYSTEMS AND COMMUNITY ment and social investment (SI) programme developed for SOCIAL INVESTMENT INITIATIVES SiyaQhubeka. The SEAT process was carried out from SiyaQhubeka has a number of key processes in place that March 2004 to December 2004. assist with the management of social issues relating to their operations. These include: the establishment of a OVERVIEW OF THE OPERATION Community Social Investment Department; the facilitation of Community Liaison Forums with communities in the SiyaQhubeka is a partnership between Mondi Business study area; the implementation of Participatory Rural Paper South Africa (an integrated pulp, paper and packaging Assessments to identify key needs; and Multiple Resource group), black empowerment entity Imbokodvo Use (MRU) activities, which allow the plantations to be Lemabalabala Holdings (I.L. Holdings) and government used for a wide range of other economically and socially structures. Mondi Business Paper South Africa (the majority beneficial purposes (e.g. bee keeping and livestock shareholder) forms part of Anglo Paper and Packaging, a grazing). DWAF also monitors SiyaQhubeka’s social division of Anglo American plc, one of the world's largest responsibility activities, as part of their 70-year lease mining and natural resource groups. SiyaQhubeka was the agreement with the State. SiyaQhubeka’s Forestry first black empowerment company (other than a community Stewardship Council certification also requires a compre- trust) to acquire shares in a significant forestry enterprise in hensive approach to managing environmental and social South Africa. issues. SiyaQhubeka’s three plantations (St Lucia, KwaMbonambi SiyaQhubeka has a wide range of CSI initiatives. These and Port Durnford), comprise 22,500 plantable hectares, range from firewood collection and brick-making initiatives, and stretch from Nyalazi in the north to Port Durnford in to bee farming, vegetable gardening and school class- the south. The St Lucia plantation borders largely on the room extensions. One of SiyaQhubeka’s flagship projects Greater St Lucia Wetland Park, a registered World is Fukamela, the objective of which is to facilitate the Heritage Site and one of South Africa's oldest game growth and commercial development of small and reserves. Land under SiyaQhubeka plantations is currently medium sized businesses in the forestry and wood rented from government, through the Department of Water processing industries. Affairs and Forestry (DWAF). The three estates are planted to gum and pine. COMPLIANCE WITH SiyaQhubeka has an annual turnover of R135.8 million1 ANGLO AMERICAN CORPORATE (US$20.9 million). The company outsources most of its POLICY REQUIREMENTS plantation activities such as silviculture, harvesting and transport to local enterprises. The total employment SiyaQhubeka undertook a self-assessment of performance generated by SiyaQhubeka is 1,451. This includes: 29 in relation to social and economic aspects within key Anglo permanent employees; 1,263 indirect employees (through policies and principles. SiyaQhubeka rated themselves as contractors and suppliers); 27 people employed by its implementing all social and economic actions required by community social investment (CSI) activities; and 132 induced employees. A total of 5,796 people are dependent upon SiyaQhubeka for their livelihoods. 1 Comparative values are calculated at R/US$ exchange rate of 6.5. 2 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA these policies and principles – albeit in a way that is specific ISSUES RAISED to the local context. SiyaQhubeka’s highest area of perform- BY STAKEHOLDERS ance was against Anglo’s Management Principles, where management scored themselves as implementing and Public consultation was conducted as part of the SEAT reviewing all actions required. study and associated formulation