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Mining charter scorecard


In 2009, the Department of Mineral Resources promulgated codes of good practice for the mining industry. In 2010, the review of the mining charter was finalised and the accompanying scorecard adjusted. Exxaro already complies with several aspects of the revised scorecard and steady progress is being made in those areas where the group does not fully comply.

Exxaro Resources: 2010 scorecard for the broad-based socio-economic mining empowerment charter   
Element   Description  Measure  Compliance
target by
2014
 
  Progress achieved by   
  Compliance target   Actual  
  2010   2010  
Reporting   Has the company reported the level of compliance with the charter for the calendar year   Documentary proof of receipt from the department   Annually     Mining charter report will be submitted to DMR during March 2011      
Ownership   Minimum target for effective HDSA ownership   Meaningful economic participation    26%     15%   52,10%  
    Full shareholder rights   26%     15%   52,10%  
Housing and living conditions   Conversion and upgrading of hostels to attain the occupancy rate of one person per room.    Percentage reduction of occupancy rate towards 2014 target   Occupancy rate of one person per room     Accommodation
  • Number of people sharing hostel rooms = 40.
  • Number of employees accommodated in single quarters (one person per room) = 1 505
  • Number of employees staying in family quarters = 417
  • Number of company houses sold to employees = 948
1,15% of employees in company – provided accommodation  
  Conversion and upgrading of hostels into family units   Percentage conversion of hostels into family units   Family units established     Bargaining unit employees receive either a housing allowance or a living-out allowance for accommodation. These allowances differ by job grading and are annually revised through collective bargaining. Non-bargaining unit employees receive an all-inclusive remuneration package.   417 family units established  
Procurement and enterprise development   Procurement spent on BEE entity   Capital goods   40%     5%   43%  
    Services   70%     30%   24%  
    Consumable goods   50%     10%   25%  
  Multinational suppliers contribution to the social fund   Annual spend on procurement from multi-national suppliers   0,5%     0,5%   0,5%  
Employment equity   Diversification of the workplace to reflect the country’s demographics to attain competitiveness   Top management (board)  40%     20%   50%   
    Senior management    40%     20%   30%   
    Middle management   40%     30%   51%   
    Junior management   40%     40%   63%   
    Core skills   40%     15%   25%   
Human resources development   Developing requisite skills, including support for South Africa-based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation   HRD expenditure as percentage of total annual payroll (excluding mandatory skills development levy)  5%     3%   5,1%  
Mine community development   Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis   Implement approved community projects   Up-to-date
project implementation  
 
  • Continual engagement with all stakeholders (ie authorities, interested and affected parties) ensures a collaborative approach in implementing community projects
  • The establishment of a formal ethnographic consultative and collaborative socio-economic development forum at each business unit to be finalised during June 2011
  • Total spend on socio-economic development in 2010 was 2,5% of net profit after tax
 
Sustainable development and growth   Improvement of the industry’s environmental management   Implement approved environmental management programmes (EMPs)  100%     Programmes are in place to achieve the compliance target by 2014    
  Improvement of the industry’s mine health and safety performance   Implementation of tripartite action plan on health and safety   100%     In terms of implementing the tripartite action plan, Exxaro has developmental plans for 70% of the actions. These span continuous improvement in safety and health, transforming our culture, training, adopting leading practices, and supporting related research.    
  Utilisation of South Africa-based research facilities for analysis of samples across the mining value   Percentage of samples in South African facilities   100%     Exxaro has a research and development department and commissioned research was 100% South Africa-based in 2010.
  • In addition, Exxaro approved three tertiary chairs as part of its research support initiatives:
  • Exxaro chair in global change and sustainability at Wits
  • Exxaro chair in business and climate change at Unisa
  • Exxaro chair in biodiversity and business at University of Pretoria
 
Beneficiation   Contribution towards beneficiation (effective from 2012)  Added production volume contributory to local value addition beyond the baseline    Section 26
of MRPDA
(% above
baseline) 
  Exxaro is in the business of mining and beneficiating minerals. Products like coal and zinc are sold as final products and used in other processes; they therefore cannot be further beneficiated. Other products like mineral sands are beneficiated to a semi state (slag). While these products are being investigated to increase beneficiation rates, they are technically complex processes and thus long-term projects.

Exxaro does not benefit from incentives in the mining charter for beneficiation as the group cannot offset ownership with beneficiation initiatives. Exxaro is already BEE owned. Exxaro is a founder member of SAMMRI (an industry/government (dti)/academic institution) initiative on long-term research in beneficiation to develop value-adding technologies and internal skills (HDSA) in South Africa.

A downstream project is our market coke initiative, where we are investigating the production of market coke as a reductant for the chrome industry. Certain technology evaluation accompanies this initiative. Our coal beneficiation target for 2014 is 0,5%.

Calendar 2009 was the first full production year for Exxaro’s char plant. Coal from Grootegeluk is beneficiated in the char plant, and the product sold locally to ferrochrome smelters as a reductant. Tar is processed as a by-product and sold to a tar-refining company for further processing into products such as wood preservatives. The full production capacity of the plant is 140ktpa char and 8ktpa of tar.

The mineral sands business unit is investigating downstream beneficiation opportunities for titania slag and zircon. A number of new titanium metal production technologies were investigated with the aim of establishing a local production facility. Investigations and studies are long term and ongoing.
 


 

 

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