Mining Charter compliance
| Description | Measure | Compliance target by 2014 | Progress achieved by 2013 | Weighting | Compliance | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Beatrix | Driefontein | Kloof | ||||||||
| Actual | Rating | Actual | Rating | Actual | Rating | |||||
| Reporting | ||||||||||
|
Has the company reported the level of compliance with the charter for the calendar year? |
Integrated Report | March 2014 | Yes | Y | Yes | Y | Yes | Y | Y/N | Yes |
| See pages: Group profile, Chief Executive’s review, Determining sustainability, Sustainability strategy and Financial capital | ||||||||||
| Ownership | ||||||||||
|
Minimum target for effective HDSA ownership | HDSA ownership | 26% | 26% | Y | 26% | Y | 26% | Y | Y/N | Yes |
| See pages: Human capital: Employment equity and transformation and Independent Assurance Report | ||||||||||
| Housing and living conditions | ||||||||||
| Conversion and upgrading of hostels to attain the occupancy rate of one person per room Conversion and upgrading of hostels into family units | Occupancy rate | 100% reduction | 84% | Y | 75% | Y | 75% | Y | Y/N | Yes |
| Family units | 100% | 0% | 0% | 60% | Y | 100% | Y | Y/N | ||
| Hostel upgrades | 100% | 100% | Y | 100% | Y | 100% | Y | Y/N | ||
| See pages: Chief Executive’s review, Human capital: Housing and living conditions and Independent Assurance Report | ||||||||||
| Procurement and enterprise development | ||||||||||
| Procurement spent on BEE entities | Capital goods | 40% | 52% | 5% | 54% | 5% | 48% | 5% | 5% | Yes |
| Services | 70% | 55% | 4% | 60% | 4% | 55% | 4% | 5% | ||
| Consumable goods | 50% | 50% | 2% | 59% | 2% | 60% | 2% | 2% | ||
| Multinationals* | 0.5% | 0% | 0% | 0% | 0% | 0% | 0% | 3% | ||
| See pages: Financial capital and Independent Assurance Report | ||||||||||
| Employment equity | ||||||||||
| Diversification of the workplace to reflect the country’s demographics to attain competitiveness | Top management (Board) | 40% | 40% | 3% | 40% | 3% | 40% | 3% | 3% | Yes |
| Senior management (Exco) | 40% | 40% | 4% | 40% | 4% | 40% | 4% | 4% | ||
| Middle management | 40% | 38% | 2.4% | 22% | 1.6% | 13% | 1% | 3% | ||
| Junior management | 40% | 43% | 1% | 47% | 1% | 49% | 1% | 1% | ||
| Core and critical skills | 40% | 48% | 5% | 55% | 5% | 57% | 5% | 5% | ||
| See pages: Human capital: Employment equity and transformation and Independent Assurance Report | ||||||||||
| Human resource development | ||||||||||
| Development of requisite skills, including support for South African-based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation, and environmental conservation and rehabilitation | Spend as percentage of payroll | 5% | 5% | 24% | 5.7% | 25% | 4.5% | 22.5% | 25% | Yes |
| See pages: Human capital: Human resource development, Independent Assurance Report | ||||||||||
| Community development* | ||||||||||
| Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis | Project implementation | Complete projects | 0% | 0% | 0% | 0% | 0% | 0% | 15% | Yes to the extent it has been able to do so |
| See pages: Chief Executive’s review, Engaging with stakeholders, Financial capital, Human capital: Housing and living conditions, Social capital, Case study: Rooting out invasive tree species and Independent Assurance Report | ||||||||||
| Sustainable development | ||||||||||
| Improvement of the industry’s environmental management | EMP implementation | 100% | 100% | 12% | 100% | 12% | 100% | 12% | 12% | Yes |
| Improvement of the industry’s mine health and safety performance | Health and safety | 100% | 100% | 12% | 100% | 12% | 100% | 12% | 12% | |
| Utilisation of South African-based research facilities for analysis of samples across the mining value chain | Sample analysis | 100% | 100% | 5% | 100% | 5% | 100% | 5% | 5% | |
| See pages: Chief Executive’s review, Financial capital, Human capital:Safety, Health, Housing and living conditions, Social capital, Case study: Rooting out invasive tree species, Managing water, Energy use, Approach to climate change and carbon emissions, Air-quality management, Land management, rehabilitation and closure, Environmental stakeholders, Total area of influence and Independent Assurance Report | ||||||||||
| Total score | 79.4% | 79.6% | 76.5% | 100% | Yes | |||||
* Multinationals (3%) and mine community development (15%) not counted.
The Mining Charter and Scorecard above summarises the performance of all three operations for the 2013 calendar year. All operations appear to be on track to meet the one-person-per-room occupancy target while Kloof is the only operation to have met targets for hostel upgrades and family units. Driefontein still has to build 195 family units while Beatrix has not begun the conversion programme. Operations have until the end of March 2014 to meet the one-person-per-room target, and non-negotiable target in terms of the revised Mining Charter. Achieving a demographically representative profile in the middle-management level remains a challenge, particularly at Driefontein and Kloof. Notwithstanding the daunting task of meeting the 10% target of women in core mining occupations, the representation of women in middle management is also not demographically aligned. Much progress has been made towards meeting the services target with all operations having met over 78% of the target.
Beneficiation: The contribution of a mining company towards beneficiation (effective from 2012) is measured in terms of additional production volume contributory to local value addition beyond the baseline. The compliance target set for 2014 is Section 26 of the MPRDA (percentage above baseline). While Sibanye acknowledges the inclusion of beneficiation in the Mining Charter, the Group wishes to highlight the fact that very little clarity has been provided in terms of what is required. While Sibanye fully supports the concept of promoting local beneficiation, particularly among host- and labour sending community members, as a gold-mining company with a very unique mandate and set of skills, the Group has not been in a position to take the lead on beneficiation. Sibanye eagerly awaits the State’s guidance on how beneficiation will be rolled out, and Sibanye supports the process as far as it is practicable from an industry point of view.