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2010 mining charter scorecard |
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Met |
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Progress 2009 |
| Human resources development |
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| Functional literacy and numeracy for employees |
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Target 2005:
- Skills development expenditure 100%
- Learning programmes 100%
- Functional literacy and numeracy 100%
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Yes |
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Exxaro’s policy is to invest an appropriate amount of total payroll each year on human resources development. In 2009, this was 6% (excluding 1% skills levy) or an investment of R114 million. Fully company sponsored, voluntary ABET programmes running at all mines. Good progress made in 2009 towards our target of offering everybody the opportunity to become functionally literate and to participate in ABET classes. In 2009:
- 311 employees and 320 non-employees enrolled on various ABET levels
- Financial incentive scheme for all identified ABET learners implemented
- Skills development expenditure 6%
- Learning programmes 97% as per employment equity report
- Functional literacy and numeracy rate of group: 78%
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| Are there career paths for HDSA employees |
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Not applicable |
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Yes |
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HRD policy in place dealing with accelerated development. Formal succession planning and individual development plans rigorously used for all management and professional categories. HDSA employees receive special career planning consideration and mentor support |
| Are empowerment groups being mentored |
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Not applicable |
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Yes |
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Formal plans in place |
| Employment equity |
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| Has the company published its employment equity plan and achievements |
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Targets by 2009
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Yes |
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Employees have been consulted and plans are available for reference at each business
unit |
| Is there a plan to achieve a set target for HDSA participation in management |
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- Top management 40%
- Senior management 40%
- Middle management 40%
- Junior management 40%
- Women in mining 10%
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Yes |
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Exxaro is legally required to comply with the management target of 40% as set in the Mining Charter. Targets and goals have been set and discussed with employee representatives. Management representation at 31 December 2009 was 48%.
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| Is this plan being implemented |
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Not applicable |
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Yes |
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Plans are implemented and progress monitored regularly |
| Has a talent pool been identified |
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Not applicable |
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Yes |
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| Is there a plan to achieve a set target for women participation in management |
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Yes |
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Exxaro has a succession plan system in place to fast-track women and women in mining.
- Actual women participation in management 13,77%
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| Migrant labour |
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| Is the company not discriminating against migrant labourers |
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Not applicable |
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Yes |
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Exxaro complies with government and industry policies of non-discrimination against foreign labourers |
| Mine community and rural development |
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| Did the company participate in the formation of integrated development plans |
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Not applicable |
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Yes |
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All interventions being implemented by Exxaro are part of the integrated development plans of involved authorities, required legislation of the Department of Mineral Resources and indicated community needs |
| Are these plans for local mining community and major labour-sending areas |
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Not applicable |
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Yes |
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All interventions are undertaken in the communities near our mines or as indicated by local government |
| What has been the process of consultation with local community |
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Not applicable |
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Yes |
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To identify real needs of involved communities, the integrated development plans of local and district government are being used as social impact assessments to identify socio-economic needs in the community |
| How much has been spent on integration development |
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Compliance target 1% of net profit after tax |
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Yes |
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Socio-economic development investment in 2009:
Total investment of R31 444 178. Measured against Exxaro’s 2008 net profit after tax (excluding equity contributions), this represents 1,8%, well above the compliance target.
The split per focus area at operation level is: education 17%, skills development and capacity building 25%, enterprise development 23%, health and welfare 3%, environmental stewardship 1% and infrastructural development 31%.
Exxaro also implements projects at corporate level, split among focus areas: health and welfare 17%, environment 13%, enterprise development 2%, skills development 57% and education 11% |
| Housing and living conditions |
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Has the company provided
housing for miners |
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Compliance target 2014:
100% conversion of hostels to single accommodation apartments/housing units |
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Yes |
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The housing policy for the Exxaro group in South Africa is focused on home ownership. An additional subsidy policy to assist first-time home owners at business units has been implemented.
Bargaining unit employees receive either a housing allowance or living-out allowance for accommodation. At some subsidiaries, bargaining unit employees receive an all-inclusive package (housing allowance consolidated in salary). These allowances are determined through collective bargaining. Management and specialist category employees receive an all-inclusive package.
The split of accommodation is:
- 594 employees live in hostels. Hostels are being converted into single quarters or family housing or closed down
- 1 343 employees reside in single quarters
- 420 employees live in family housing
- 1 002 employees rent company houses
- 7 821 employees provide their own accommodation
Plans are being developed to convert hostels at Tshikondeni and Arnot to single accommodation.
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| Is the company improving the standards of housing |
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Yes |
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| Are hostels being upgraded |
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Yes |
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| Are hostels converted to family units |
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No |
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| Has the company offered the option of home ownership to miners |
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Yes |
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| Is there a plan in place to improve housing and living conditions |
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Yes |
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| Does the company currently have measures in place to improve nutrition provided to miners |
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Not applicable |
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Yes |
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Exxaro provides meals at two operations where the quality and nutritional value are determined by a dietician. Qualified staff continually monitor adherence to contractual obligations. Employees have accessible mechanisms to engage both management and suppliers on food issues. Nutritional plans are continually updated |
| Are there plans in place to further improve nutrition in future |
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Not applicable |
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Yes |
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| Procurement |
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| Are HDSAs given preferred supplier status |
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Compliance
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Years |
0-5 |
6-10 |
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Local suppliers (goods) |
20% |
30% |
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Local suppliers (services) |
50% |
70% |
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Local suppliers (consumables) |
15% |
30% |
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Local SMMEs |
10% |
20% |
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BEE suppliers: |
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50% black-owned |
15% |
20% |
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30% black women owned |
15% |
20% |
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Yes |
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In 2009, Exxaro reviewed and implemented a policy aligned to the recently promulgated Department of Mineral Resources codes of good practice and broad-based socio economic empowerment charter for the South African mining industry. The group’s preferential procurement policy tasks the business to use its purchasing power to ensure that external suppliers are engaged and every effort made to contract with suppliers that have strong BEE credentials or are making a tangible effort to transform their businesses to be BEE compliant. |
| Has the current level of procurement from HDSA companies been identified in terms of capital goods, consumables and services |
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Yes |
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The target for 2009 was set at 45% procurement from HDSA companies and marginally exceeded at 45,03%. With the promulgation of the DMR codes, our policy now incorporates BEE spend targets specified in terms of capital goods, operational goods, services, black women ownership and SMMEs. Our performance tracking system has been aligned to the policy. |
| Is there commitment to progress procurement from HDSAs of capital goods, consumables and services |
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Yes |
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Through its preferential procurement policy, Exxaro has affirmed its commitment to accelerating procurement from HDSAs by requiring every business to contribute towards achieving specific percentage spend targets on capital goods, services and consumables. |
| Ownership and joint ventures |
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| Is there HDSA participation in terms of ownership equity |
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Demonstrable HDSA fiduciary participation at board level:
- 40% target on executive committee
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Yes |
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After the Kumba empowerment transaction, a new company was formed and listed on the JSE as Exxaro Resources Limited. In terms of the empowerment transaction, Exxaro’s only major shareholder is Main Street 333 (Pty) Limited, commonly referred to as BEE Holdco. This BEE entity holds 53% of the shares in Exxaro. The entities that in turn hold shares in BEE Holdco are Eyesizwe SPV (54,1%); Eyabantu SPV (9,7%); Tiso SPV (9,7%); Women’s Group SPV (11,2%) and IDC (15,3%). A structure for shareholder development is in place. |
| Has the company managed to have attributable units of production of 15% over five years |
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Ownership scorecard
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Yes |
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| Has the company managed to have attributable units of production of 26% over 10 years |
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Yes |
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| Beneficiation |
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| Has the current level of beneficiation been identified |
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Compliance target 42% annual production from refine stage |
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Yes |
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The mineral sands business is investigating downstream beneficiation opportunities for titania slag and zircon. A number of new production technologies were investigated with the aim of establishing a local titanium metal-production facility. Investigations and studies are ongoing |
| Has the baseline level of beneficiation been identified |
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Yes |
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In coal, the market coke project is another example of downstream beneficiation. Exxaro is investigating the feasibility of producing market coke as a reductant to the chrome industry. Certain technology evaluation accompanies this initiative |
| Is there an indication how the baseline can be grown to qualify for an offset |
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| Reporting |
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| Is the company reporting progress on its commitment annually in its annual report |
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Not applicable |
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Yes |
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Listing particulars
» Sustainable development 