Progress against scorecard for the broad-based
socio-economic empowerment charter for the
South African mining industry
| R E Q U I R E M E N T S | P R O G R E S S | S E C T I O N | ||
| Human resources development | ||||
| • | Has the company offered the development opportunity to be functionally literate and numerate by the year 2005 and are employees being trained? | • | Fully company-sponsored, voluntary ABET programmes running at all mines (except where employees are 100% literate) | Social summary – workplace issues |
| • | Leeuwpan, Ticor SA and corporate office 100% literate | |||
| • | Screening and counselling of all ABET candidates to take informed decisions about participation in ABET is undertaken | |||
| • | Incentive scheme to make ABET more attractive being implemented | |||
| • | Has the company implemented career paths for HDSA employees, including skills development plans? | • | Human resources development (HRD) policy in place dealing with accelerated development | Social summary – workplace issues |
| • | Has the company developed systems through which empowerment groups can be mentored? | • | Formal succession planning and individual development plans rigorously used for al management and professional categories | |
| • | HDSA employees receive special career planning consideration and mentor support | |||
| • | A 50% joint venture with Eyesizwe Coal for development of Inyanda Coal reserves includes skills transfer through mentorship and service level agreement | |||
| • | Kumba trains 24% of all apprentices in the South African mining industry, most are HDSA | |||
| Employment equity | ||||
| • | Has the company published its employment equity plan and reported on its annual progress in meeting that plan? | • | Plans submitted to Department of Labour and policy published on Kumba website | N/A |
| • | Has the company established a plan to achieve a target for HDSA participation in management of 40% within five years and is it implementing the plan? | • | Employment equity plans in place, supported by strategies in HRD policy | Social summary – workplace issues |
| • | Measured and monitored up to board level each | |||
| quarter | ||||
| • | Plans monitored per division | |||
| • | HDSA overall: 28% | |||
| • | HDSA senior management: 31% | |||
| • | HDSA middle management: 27% | |||
| • | HDSA first-line management: 33% | |||
| • | HDSA board: 28% | |||
| • | Has the company identified a talent pool and is it fast-tracking it? | • | Formal performance management and succession-planning processes make it easy to fast-track all management levels | N/A |
| • | HDSA talent pool catered for in succession-planning process | |||
| • | Has the company established a plan to achieve the target for female participation in mining of 10% within five years and is it implementing the plan? | • | Current recruitment plans achieving results | Social summary – workplace issues |
| • | Women currently 12% of workforce | |||
| – Board level: 6% | ||||
| – Senior management: 6% | ||||
| – Middle management: 14% | ||||
| – First-line management: 11% | ||||
| Migrant labour | ||||
| • | Has the company subscribed to government and industry agreements to ensure non-discrimination against foreign migrant labour? | • | Recruitment policy is non-discriminatory | N/A |
| • | Few, if any, foreign migrant workers employed | |||
| • | Emphasis on local recruitment | |||
| Mine community and rural development | ||||
| • | Has the company cooperated in the formulation of integrated development plans and is the company cooperating with government in the implementation of these plans for communities where mining takes place and for major labour-sending areas? | • | Collaborated on integrated development plans for Thabazimbi, Mutale and Vhembe Councils and Kgalagadi Development Node | N/A |
| • | Range of interventions are all aligned with integrated development plans and register of community needs | SHE summary | ||
| • | Forums established to engage local communication communities | |||
| • | Has there been effort on the side of the company to engage the local mine community | • | Skills and ABET provided for the unemployed, and major labour-sending area communities? skills training for government institutions, training of trainers programmes, capacity building | |
| • | Partnership with MQA in Kgalagadi and Newcastle to train ex-mineworkers | Social summary – corporate social investment | ||
| • | Company spent R13 million during the financial | |||
| year on social investment programmes | ||||
| Housing and living conditions | ||||
| • | For company-provided housing, has the mine, in consultation with stakeholders, established measures for improving the standard of housing, including the upgrading of hostels, conversion of hostels to family units and promoted home ownership options for mine employees? | • | Company housing policy in place, focusing on home ownership | Social summary – workplace issues |
| • | 3 004 employees (44%) live in affordable rental units | |||
| • | More than R10 million will be spent to upgrade hostels to family units and single quarters over four years | |||
| Companies will be required to indicate what they have done to improve housing and show a plan to progress the issue over time and show it is implementing the plan. | • | 763 employees assisted to become owners of company housing | ||
| • | 1 895 housing units to be made available for home ownership over four years | |||
| • | For company-provided nutrition, has the mine established measures for improving the nutrition of mine employees? | • | Mechanisms exist for employees to engage management and suppliers | N/A |
| Companies will be required to indicate what they have done to improve nutrition and show a plan to progress the issue over time and show it is implementing the plan. | • | Quality of food contractually regulated – human resources policy stipulates quality requirements | ||
| Procurement | ||||
| • | Has the company given HDSAs preferred-supplier status? | • | Policy, guidelines and systems in place to promote | N/A |
| procurement from HDSA companies | ||||
| • | Preference is given to black-owned and black | |||
| empowerment suppliers | ||||
| • | Has the company identified current level of procurement from HDSA companies in terms of capital goods, consumables and services? | • | Auditable system in place and performance tracked | N/A |
| • | Has the company indicated commitment to a progression of procurement from HDSA companies over a three to five-year time frame in terms of capital goods, consumables, and to what extent has the commitment been implemented? | • | Kumba has developed policies since 2001 and is | Social summary – HDSA procurement |
| committed to progression over time | ||||
| • | Co-founder of SA National Preferential Procurement | |||
| Forum and support facilitation of regional and | ||||
| provincial collaboration as initiated by the Department of Minerals and Energy | ||||
| • | R616 million or 14,7% discretionary procurement | |||
| to HDSAs during the year (ahead of target of | ||||
| 13,0%) and 18% target for 2005 financial year | ||||
| Ownership and joint venture | ||||
| • | Has the mining company achieved HDSA participation in terms of ownership for equity or attributable units of production of 15% in HDSA hands within five years and 26% in ten years? | • | Ownership implementation framework developed and approved and all strategic business units mandated to achieve specific objectives at asset level to ensure Kumba meets 15% and 26% targets within required time frame | N/A |
| • | Tiso Kgalagadi Consortium’s 4,8% equity stake in Kumba facilitated through a 10% discount | |||
| • | 50% joint venture development of Inyanda Coal mine with Eyesizwe Coal | |||
| • | Together with its major shareholder, Anglo, Kumba has embarked on an intense process that will result in Kumba achieving its empowerment ownership objectives during 2005 | |||
| Beneficiation | ||||
| • | Has the mining company identified its current level of beneficiation? | • | Baseline level established for various commodities | N/A |
| • | Has the mining company established its base line level of beneficiation and indicated the | • | New beneficiation projects identified and evaluation of potential ongoing | |
| extent that this will have to be grown to qualify for an offset? | • | Kumba has a specific case to make for beneficiation | ||
| credits based on its unique supply agreements with the steel industry, covering iron ore, coal, zinc and dolomite | ||||
| Reporting | ||||
| • | Has the company reported on an annual basis its progress towards achieving its commitments in its annual report? | • | Extensive reporting on progress through the scorecard, website and annual report | Business objectives, Chief executive’s review, SHE summary, Social summary |