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Stakeholder engagement

Engaging with our stakeholders is fundamental to creating value for all our investors. It also builds solid relationships with authorities and interested and affected parties.

To further strengthen stakeholder engagement, Exxaro applies the AA1000SES standard based on the processes shown below. This is supported by a new integrated software system to manage stakeholder engagement more effectively.

Exxaro communicates with each stakeholder group in a number of ways:

Stakeholder group     Objective     Issues raised     Progress    
Employees are invited to comment on any aspect of the group through bi-monthly newsletters, intranet, regular employee surveys and feedback from various forums     To maintain informed and supportive employees     Retrenchment procedures
Strategic business optimisation programme  
   Information-sharing sessions held. Opportunity to participate in consultation phase facilitated    
Customer perceptions are surveyed through external service providers and by regular interaction     To ensure customers view Exxaro as a reliable supplier and partner     Long-term security of supply     Continuous engagement on mutually beneficial contractual arrangements    
Supplier interaction is ongoing through external perception surveys, forums and other initiatives     
  • Capitalise on our purchasing power to drive socio-economic empowerment, transformation and development in South Africa
  • Maintain a constructive and positive preferential procurement relationship between Exxaro and its suppliers  
   Long-term security of supply
Effectiveness of planned procure-to-pay process  
   Target exceeded for 2010. Progress against targets in new mining charter tracked quarterly
Ongoing engagement  
  
Trade unions - regular consultation with all recognised unions by the group’s employee relations management unit      To maintain a collaborative relationship with accredited trade unions     Retrenchment procedures
Strategic business optimisation programme  
   In 2010, Exxaro notified unions of the planned retrenchment of a maximum of 300 employees. Through consultation, we are still examining all options to limit the effect of restructuring on our people    
Authorities - consultation at national, provincial, district and local level. Key government departments with which Exxaro interacts include mineral resources, water affairs, labour, environmental affairs and trade and industry     To maintain informed and supportive relationships with authorities and regulators at all levels that are important to Exxaro’s business aspirations     Progress with mining right conversions and approvals
Issuing of water permits and environmental approvals  
   Relationships at national and international level are handled by senior management. Local and regional government relations are handled by experienced members of Exxaro safety and sustainable development department. Understanding that sound government relations facilitate the group’s compliance/licensing requirements (mining rights, water permits, etc) Exxaro will centralise accountability for national/international relations, as well as oversight of all group stakeholder relations, as part of the group’s strategic business optimisation programme     
Regulators - senior Exxaro members meet with officials from relevant government departments  
Industry bodies     To participate in industry forums instrumental to Exxaro’s business     Revised mining charter. Industry safety initiatives     Exxaro’s chief executive officer has completed his third term as president of the Chamber of Mines, and the group actively participates in chamber issues    
Investors - regular interaction between management and investor community includes financial results presentations, roadshows, site visits and individual meetings. Investors may request access to group operations and management      To nurture solid relationships with investors, fund managers and investment analysts to ensure that Exxaro’s strategy, business plans and reported results are understood     Clarity on mineral sands strategy
Progress with energy portfolio
Progress with divesting zinc interests  
   Formal programme being developed to communicate strategy, challenges and targets to local and international investors    
Media - regular interaction between management and media representatives      To maintain informed and supportive media stakeholders     Coverage on mining groups’ alleged non-compliance with environmental legislation     Proactive interactions for insight on Exxaro’s strategy and developments: news releases, site visits, briefings, interviews. Media relations to manage ad hoc issues     
Communities - in addition to the stakeholder engagement process, business units’ management members serve on municipal forums for integrated development planning and local economic development, and actively participate in capacity-building initiatives      To consult with stakeholder communities on their needs, project planning and implementation     Employment opportunities and environmental impacts    

By June 2011 we aim to have a standardised strategy and systems in place to formalise:

  • Identifying stakeholders
  • Analysing stakeholder issues
  • Formulating company responses
  • Implementing stakeholder engagement plans for each operation
  • Training all relevant employees in the approach to stakeholder engagement  
  
  To provide details of stakeholders, basis for identification, engagement, stakeholder concerns, use of engagement information   
  To demonstrate commitment to stakeholder involvement on social sustainability issues through policy and implementation   
Interest groups - Exxaro is building strong relationships with relevant non-government bodies and interest groups     Collaboration and partnering with interest groups that are important to Exxaro’s business operations     Some environmental groups raised issues with the JSE and in the media about mining companies’ compliance with environmental standards, and whether JSE standards for membership of the Socially Responsible Investment index need to be raised. For Exxaro, issues included the alleged absence of water licences at specific operations and unauthorised mining operations at another     Exxaro satisfied the JSE that the required water licences had been issued, and that no unauthorised mining activities were being undertaken at Arnot’s Mooifontein section. Exxaro also demonstrated that an innovative solution was being implemented at Matla to preserve and minimise mining impacts on the wetland    


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