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Response |
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Availability, security of supply, efficient and responsible use of scarce water resources |
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Integrated water and waste management programme implemented. Comprehensive plans being developed for each business unit in addition to studies on water reclamation and reuse |
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- Hazardous waste management
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Avoidance, minimisation, management and disposal of hazardous as well as general waste generated from Exxaro operations |
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Hazardous waste management targets will be set in 2011 after approval of a policy document |
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Quantifying and determining the impact of emissions from
Exxaro operations; managing non-compliance and ensuring continuous improvement. Focus includes dust from mining activities and emissions from smelters |
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Updated targets will be set in 2011 to ensure compliance, as a minimum, with applicable national standards |
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Projected temperature increases could reduce water availability significantly in southern Africa, reduce agricultural yields across the continent, and place millions of people at risk of coastal flooding each year. From a South African perspective, the eastern part could experience higher rainfall while the western part could face water scarcity |
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The risks and related opportunities have been integrated into a climate change response strategy |
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Reduce environmental footprint from waste production and water use |
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Budget allocation for numerous related projects requested |
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- Energy and greenhouse gases
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Improve energy efficiency and increase use of renewable energy |
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Developed energy management and tracking system; studies under way on renewable energy projects |
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Conserving biodiversity-rich sections, eradicating and controlling alien invasive species |
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Biodiversity action plans developed for five operating units, with balance to be completed in 2011. Expenditure of R30 million in 2010 expected to increase in subsequent years as plans are implemented. Sponsoring research on biodiversity at selected universities, including specific studies at Exxaro operations and areas surrounding these operations |
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- Closure and rehabilitation
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Continual review of rehabilitation assessments and implementation plans
Consider third-party applications for mines in closure |
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Performance assessments against approved environmental management programmes completed at eight operations and submitted to relevant authorities. Good progress with social and rehabilitation plans at closed mines, Durnacol and Hlobane |
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- Significant environmental incidents
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Retaining our licence to operate through regulatory and legislative compliance |
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Continuous discipline in complying to regulatory and legal requirements |
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- Socio-economic development (projects, donations)
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Approval and implementation of local economic development projects and donations as per social and labour plans |
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Socio-economic funds paid to business units to implement projects and donations totalled 2,5% of net profit after tax of managed operations in 2010. Total contribution to socio-economic development projects, corporate commitment and donations was R38,6 million
With the focus on sustainability, financial support for the following university chairs was approved in December 2010:
- Exxaro chair in global change and sustainability at Wits: R12,5 million (2011–2015)
- Exxaro chair in business and climate change at Unisa: R7,5 million (renewed support for 2011–2015)
- Exxaro chair on the interface between biodiversity and business at Pretoria: R3,4 million (2011–2013)
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Granting and execution of submitted plans |
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Mining right conversions and new-order approvals for most of our operations have been granted |
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Consultation with all authorities and interested and affected parties |
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In terms of the social and labour plans and other socio-economic development-related activities, engagement with all relevant stakeholders takes place at each business unit |
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- Development of artisanal and small scale mining
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Identification of small-scale mining projects |
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At Grootegeluk mine, a feasibility study has been conducted for the Re a Dira small-scale mining project. This will be considered for approval in 2011 |
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Preference for recruiting from areas surrounding current operations and labour-sending areas
Employment equity progressively addressed in employment practices |
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90% of Exxaro’s learnership intake as well as some 80% of unskilled and semi-skilled employees are from areas surrounding current operations, and 60% of these are from designated groups. The housing project at Medupi created a number of employment opportunities for people from the Lephalale area |
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- Support for development of small businesses and supply chain management (procurement, local procurement and empowerment)
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Facilitating socio-economic development and empowerment |
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Exxaro allocated over R13 million to developing enterprises, the bulk of its socio-economic development funding
R3,8 billion of group procurement spend went to HDSA suppliers; 50% of the total discretionary procurement spend |
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- Safe workplace (fatalities, lost-time injuries, health and safety systems)
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- Inadequate awareness of health and hygiene issues
- Employers to meet legislated targets on noise and dust by 2013
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- Fatalities and lost-time injuries both down on 2009 but target remains zero for both indicators
- Reviewed health and hygiene strategic framework, highlighting key health risks to be communicated to employees
- Developed and implemented a tool for reporting early cases of hearing loss to management to ensure proactive mitigation
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- Healthy people (occupational diseases, HIV/Aids testing and treatment, healthcare, medical surveillance)
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- High prevalence of HIV in South Africa and mining industry
- High incidence of TB in South Africa and in the industry
- Increase in cases of multidrug resistant strains due to patient non-compliance with treatment protocols
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- New management and reporting standards introduced. HIV testing above target, while all incidents of occupational diseases declining
- Exxaro HIV/Aids strategy implemented
- TB management standard implemented, providing a guide for managers, employees and healthcare professionals
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Initiatives are required to address literacy and numeracy levels as well as to ensure continuous focus on the training and development of artisans, skills and leadership development, and the removal of development barriers |
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- A R3-million assessment workshop was opened at Grovos in Lephalale in April 2010
- 180 ABET learners in 2010
- 379 artisan learners at various stages of qualification
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To develop and sustain core competencies and maximise human capital to meet our strategic objectives and improve operational performance |
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A formal succession programme is in place for all employees in the management and specialist category |
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Individual development plans required for all employees |
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Progressive implementation of individual development plans for all Exxaro’s employees |
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Achieving regulatory and legislative targets |
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Achieving the target for senior management level is an industry-wide challenge, but more women from designated groups are being appointed in core positions |
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- Employee relations and wellness
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Equalisation of conditions of employment in coal businesses |
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Subsequent to a wage demand in 2009, management and organised labour from the coal businesses embarked on a process to progressively equalise conditions of employment |
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Adverse implications of industrial action |
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Employees at the KZN Sands operation embarked on a three-week strike in September 2010. Exxaro supports amicable resolution without the need for industrial action |
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Freedom of association |
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Employees have freedom of association and can join a union of their choice. Labour relations at all Exxaro operations are managed to best facilitate progress towards an amicable and mutually beneficial resolution |
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Collective bargaining |
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Trade unions with sufficient members at a specific employer are recognised and these unions represent their members in collective bargaining processes |
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Wellness |
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An employee assistance programme has been rolled out to all operations and is available for all employees to use |
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- Decent wages and benefits (retirement and medical plans)
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Wages |
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Wages compare well in the industry as determined by six-monthly market surveys. Exxaro complies with all requirements of the Basic Conditions of Employment Act and in most instances exceeds minimum requirements |
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Retirement funds |
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All employees belong to a retirement fund. Employer contribution ranges between 10% and 18% |
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Medical schemes |
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Where employees are members of accredited medical schemes, Exxaro subsidises contributions |
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Post-retirement liability for medical scheme |
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Certain employees of Exxaro Coal Mpumalanga and Namakwa Sands qualify for a post-retirement contribution towards a medical scheme from their employer but no new entrants are allowed to these arrangements. Adequate provision for actuarially valued liabilities is made in the financial statements |
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- Housing and living conditions
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Home ownership |
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Exxaro’s strategy was revised to comply with the new mining charter. The focus is still on home ownership and employees receive (either as an allowance or part of inclusive package) a housing or living-out allowance. In addition, 232 employees benefit from a home ownership subsidy |
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Hostels |
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At all operations, except Tshikondeni, there is one person per room in the hostels; at Tshikondeni some rooms have two occupants. Meals are provided at Matla and Tshikondeni, and the quality and nutritional value are determined by a dietician |
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Women in core positions |
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Although Exxaro already exceeds the prior mining charter target of having 10% of the workforce staffed by women, attracting women (specifically from designated groups) to the group’s core business remains a focus area. At present, women represent 7% of all learnerships for future core positions and 29% of our bursar and professional in-training programmes |
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Policy and process |
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A group policy and process was developed to standardise contractor management. The HR management system is used to capture contractors |
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Control |
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Operations are responsible for managing contractors, ensuring progressive compliance to Exxaro’s policies and procedures while monitoring data integrity |
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- Economic value generated and distributed
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Transparency in disclosure to stakeholders |
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Cash value-added statement reflects Exxaro’s cash taxation contribution to the fiscus, amounts collected on behalf of government, and cash payments to external suppliers for goods and services |
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Market presence
- Black economic empowerment
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Exxaro is the largest black empowered group on the JSE in terms of direct shareholding, while its day-to-day management is the responsibility of an empowered and representative executive committee |
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Board structure – leadership and governance
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Code of ethics required to support the entrenched group value system |
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Zero-tolerance code of ethics in place with compliance monitored by an ethics committee. Includes conflict-of-interest declarations and decisions |
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- Black ownership and control
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Legal and regulatory compliance in South Africa |
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More than 50% of Exxaro is black owned and controlled |
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- Stakeholder engagement (business partners, shareholders, employees etc)
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Ensure stakeholder concerns are identified and addressed |
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Exxaro is forming stakeholder engagement forums at each operation as well as a stakeholder panel at the corporate office. A socio-economic assessment will be conducted at every business unit in 2011 to capture and publish all stakeholder concerns, with detailed management responses |
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Sustainable supply chain management introduced, reflecting close collaboration with suppliers |
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To reduce the impact of fraud on the group’s resources and ensure that measures in place serve as a deterrent to perpetrating fraud |
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Zero-tolerance approach to fraud. Effective anonymous reporting hotline in place for a number of years. Managed by an ethics committee with access to experienced forensic team |
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Integrated enterprise risk management fundamental to identifying and managing all risks in the organisation |
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Entrenched and integrated enterprise risk management philosophy, policy, methodology and practice in the group. Risk management is integral to all strategic, business planning, and day-to-day activities |
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