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| REQUIREMENTS |
PROGRESS |
SECTION |
| Human resources development |
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| • |
Has the company offered the 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 – Ticor SA, Leeuwpan and corporate
office) |
Social summary
– workplace issues |
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• |
Screening and counselling undertaken of all
ABET candidates for informed decisions about participation |
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• |
Incentive scheme to make ABET more
attractive implemented |
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| • |
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 all management and professional
categories |
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• |
HDSA employees receive special career planning
consideration and mentor support |
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• |
A 50% joint venture with Eyesizwe
Coal for development of Inyanda coal reserves includes skills
transfer through mentorship and service level agreement |
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• |
Kumba trains 26% of all
apprentices in the South African mining industry, mostly HDSA |
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| Employment equity |
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| • |
Has the company published
its employment equity plan and reported on its annual progress
in meeting that plan? |
• |
Plans submitted to Department
of Labour. Policy published in annual report |
Social
summary – workplace issues |
| • |
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 |
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• |
Measured and monitored quarterly
up to board level |
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• |
Plans monitored per division |
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• |
HDSA overall: 31,5% |
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• |
HDSA senior management: 33% |
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• |
HDSA middle management: 27% |
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• |
HDSA first-line management: 33% |
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HDSA board: 26% |
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| • |
Has the company identified a
talent pool and is it fast-tracking it? |
• |
Formal performance management
and succession- planning processes facilitate fast-tracking
all management levels |
Social
summary – workplace issues |
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|
• |
HDSA talent pool catered for in succession-planning
process |
| • |
Has the company
established a plan to achieve the target for women participation
in mining of 10% within five years and is it implementing
the plan? |
• |
Current recruitment plans achieving results |
Social
summary – workplace issues |
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• |
Women currently 13% of workforce |
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– board: 0%
– senior management: 13%
– middle management: 20,7%
– first-line management: 12,8% |
| Migrant labour |
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| • |
Has the company
subscribed to government and industry agreements to ensure
non-discrimination against foreign migrant labour? |
• |
Recruitment policy is non-discriminatory |
N/A |
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• |
Few if any foreign migrant workers employed |
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• |
Emphasis on local recruitment |
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| Mine community and rural
development |
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| • |
Has the company
co-operated in the formulation of integrated development plans
and is the company co-operating 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 |
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| • |
Has there been effort
on the side of the company to engage the local mine community
and major labour-sending area communities? |
• |
Range of interventions are all aligned with
integrated development plans and register of community needs |
Social summary
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• |
Participating in
local economic development forums at business units |
Social
summary |
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• |
Stakeholder engagement forums established
at all business units |
Social summary |
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• |
Skills and ABET provided for unemployed,
skills training for government institutions, training-of trainers-programmes,
capacity building |
Social summary |
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• |
Partnership with MQA in Kgalagadi and Newcastle
to train ex-mineworkers |
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• |
Company spent R15 million during the
financial year on local economic development programmes |
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| Housing and living conditions |
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| • |
For company-provided
housing, has the mine, in consultation with stakeholders,
established measures for improving the standard of housing,
including upgrading 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 |
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• |
1 351 employees (22%) live in affordable
rental units |
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• |
More than R10 million will be spent to upgrade
hostels to family units and single quarters over four years |
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• |
763 employees assisted to become owners of
company housing |
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• |
1 895 housing units to be made available
for home ownership over four years |
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| • |
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 |
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• |
Quality of food contractually regulated
– human resources policy stipulates quality requirements |
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| Procurement |
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| • |
Has the company given HDSAs preferred supplier
status? |
• |
Policy, guidelines and systems in place to
promote procurement from HDSA companies |
Social summary
– supply chain management |
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|
• |
Preference given to black-owned and black-empowered
suppliers |
| • |
Has the company identified
current level of procurement from HDSA companies in terms
of capital goods, consumables and services? |
• |
An auditable system in place and performance
tracked |
Social summary,
p101 |
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• |
Kumba has had policies in place since 2001
and is committed to a progression over time |
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| • |
Has the company indicated
a 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? |
• |
Co-founder of South African Mining Preferential
Procurement Forum |
Social summary
– Supply chain management, p101 |
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• |
Supports facilitation of regional and provincial
collaboration as initiated by Department of Minerals and Energy |
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• |
24% discretionary procurement from HDSA companies
(black-owned and black-empowered) during the year (target
of 18% and 30% by 2008) |
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| Ownership and joint
venture |
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| • |
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? |
• |
Empowerment objectives will be
exceeded following the implementation in 2006 of Kumba’s
empowerment transaction (announced in October 2005)with 58%
black ownership of coal/heavy minerals/zinc assets and 26%
of iron ore assets |
Chairman’s report,
CE’s review, Empowerment
transaction |
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• |
50% joint venture development of Inyanda
coalmine with Eyesizwe Coal |
| Beneficiation |
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| • |
Has the mining company identified its current
level of beneficiation? |
• |
Baseline level established for various commodities |
N/A |
| • |
Has the mining company established
its baseline level of beneficiation and indicated the extent
that this will have to be grown to qualify for an offset? |
• |
New beneficiation projects identified
and evaluation of potential ongoing |
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• |
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 |
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| • |
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, internet site, annual report |
Business
objectives, CE’s review, SHE
summary,
social summary |
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