KUMBA IRON ORE - Annual Report 2007
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Arrow Performance summary 2007 and targets
Arrow Report of the independent assurers
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Arrow Global Reporting Initiative Performance Indicator Table
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Sustainable development

Performance summary 2007 and targets

The following tables summarise our progress against the mining charter and our safety, health and environmental performance.

Mining charter scorecard

Mining charter imperatives   Target   2007 progress Comment
Human resources
• Adult basic education and training (ABET)
• Historically disadvantaged SouthAfrican (HDSA) career planning
• Scholarships
• Learnerships
 
• 74%
• 100%

• Various targets
• 600
 
• 74%
• 100%

• All targets met
• 622
 
Employment equity
• HDSAs in management
• Women in Kumba
• Women in management
• Talent pool
 
• 37%
• 10%
• 10%
• 30%
 
• 37.8%
• 12%
• 20%
• 20%

• Kumba achieved all internal employment equity targets and will exceed the mining charter targets for 2009.
Housing and living conditions
• Home ownership
• Home rental
• Improve nutrition of mine employees
 
• 60%
• 40%
• 100%
 
• 60%
• 40%
• 100%

• Progress is being made at Sishen and Thabazimbi mines on conversion of hostels into bachelor units and family units.
Procurement
• % of discretionary spend
 
• 30%
 
• 30%

• Most of Kumba’s suppliers without verified empowerment status have been identified and will be subjected to an internal audit for verification during 2008. The balance will be identified in 2008.
Ownership
• % of production controlled by HDSAs
 
• 26%
 
• 26%

• 26% HDSA ownership following the unbundlingfrom Kumba Resources and listing of Kumba in November 2006.
Migrant labour
• Policy of non-discrimination
 
• No disputes
 
• No disputes

• The recruitment policy is non-discriminatory. Emphasis is on employing local people.
Community and rural development   • Social andlabour
plans fully implemented
  • Plans revised to align
with municipal/district
integrated development plans
• Revised local economic development programmes will be implemented from 2008 as per commitment in social and labour plans. Consultation with local municipality to continuously align these with integrated development plans is ongoing.
Beneficiation         Kumba participated in submissions to the DME and South Africa’s National Treasury to discuss existing support to the domestic steel industry, as well as capital investment, job creation and increased resource utilisation through mineral beneficiation technology in SEP at Sishen Mine.

Safety, health and environmental performance

  2007   Targets 2008
  Lows Highs  
Safety • 1 fatality
• 0.22 LTIFR (target of 0.18 not achieved)
• Thabazimbi Mine reached 65 months without a fatality at
end 2007
• Sishen Mine reached 4.4 million man-hours LTI-free in August 2007
• Both mines retained OHSAS 18001 certification
• 0 fatalities
• 0.17 LTIFR
Health • 1 compensated case of irritant dermatitis at Thabazimbi Mine
• 1 suspected caseof noise-induced hearing loss at Sishen Mine
• Retained OHSAS 18001certification for both sites • Zero cases of silicosis reported on any new(2008) employees
• Hearing conservation programmes fully implemented
• 50% elimination of equipment exceeding 110 decibels
• 80% of all employees to undergo voluntary counselling and testing (VCT) (currently 75%)
Environment
General
• One level 2 incident reported • Retained ISO 14001 certification for both sites • Zero level 2 and 3 incidents
Water • 0.26m3/t against target of 0.22m3/t • Task team established to focuson water efficiency; number of initiatives identified to reduce consumption levels • Ongoing commitment to water use efficiency; target to be revised in 2008
• 1% reduction per annum, to be revised
in 2008
Waste   • Sishen Mine established its integrated waste management plan, Thabazimbi Mine to complete its plan in early 2008 • Implementation of waste management plans at all operations
Energy and emissions • 0.120GJ/t against target of 0.105GJ/t • Task team established to focus on energy efficiency, number of initiatives identified to reduce consumption levels • 15% improvement in energy efficiency to be achieved by 2014
• 10% reduction in CO2emissions by 2014
Biodiversity • Some progress made at Sishen Mine in integrating biodiversity action plan into environmental management system (EMS) • Thabazimbi Mine biodiversity action plan integrated into EMS • Peer reviews of plans and implementation at all sites
Land management   • Closure plans and cost estimates on physical component of Sishen Mine updated – socio-economic and bio-physical component will be completed in 2008
• Gap analysis for Thabazimbi Mine closure plan completed, findings to be addressed in 2008
• Updated closure plans and cost estimates to be incorporated into environmental management programme reports for
DME approval
Legal transgressions/incidents of
non-compliance
  • Zero legal transgressions/incidents of non-compliance reported • Zero fines or prosecution