Kumba

KUMBA IRON ORESUSTAINABLE DEVELOPMENT REPORT 2011

SUSTAINABILITY PERFORMANCE

SOCIAL PERFORMANCE: SOCIAL AND COMMUNITY DEVELOPMENT

A CRITICAL PRIORITY FOR KUMBA

ASSEMBLING THE NEWLY ARRIVED EQUIPMENT
Samuel Chiri, builder, and Maria Motsudi, poultry farm worker, assembling the newly arrived equipment at the Groenwater poultry project outside Postmasburg, near Kolomela mine.

Key performance indicator   Sustainable and effective SCD is an integral part of Kumba’s business model at all stages of the life of a project, from the prefeasibility stage through operation to closure.

Kumba’s approach to SCD is holistic and multi-pronged, identifying and addressing real needs through interventions in support of improving local infrastructure, facilitating the establishment of small and medium enterprises, improving education and health services, increasing community safety and alleviating poverty. A group-level SCD department guides stakeholder engagement and reporting and the implementation of Kumba’s SCD strategy specifically related to the following focus areas:

These initiatives are broader than just the company’s social and labour plans (SLPs), which were developed in support of the company’s mining licences, and made commitments to government and communities. To avoid duplication of effort and address identified community needs, Kumba’s SLPs are aligned with the integrated development plans of local municipalities. Mine-based SCD departments are the custodians of the group’s initiatives and are directly responsible for LED at an operational level and ensuring that each mine meets its SLP commitments.

In 2011, Kumba’s total SCD expenditure amounted to R184.9 million (2010: R134 million). Of this, R42.6 million went to covering Kumba’s SLP commitments. Together with the company’s inter-Anglo American contribution, this amount adds up to R191 million, 1% of 2010 NOPAT, as per Mining Charter requirements.

MAKING USE OF SEAT

Kumba engages with groups and individuals within the communities that surround its operations who are directly affected by or have a direct impact on the company’s operations. Further information can be found under Stakeholder engagement. The group’s community engagement policy was reviewed in 2011. Community stakeholder engagement is based on the SEAT which also guides the company’s overall social performance.

See the webiste   www.angloamericankumba.com/pdf/reports/seat_report_29022011.pdf

Engagement takes many forms, including one-on-one discussions, group dialogues and briefings, local, provincial and national focus group forums, community consultations and internal publications.

The SEAT was developed by Anglo American plc to improve the management of social and economic impacts, to enhance partnerships and to advance environmental stewardship. By engaging with community stakeholders and reporting on the findings of its SEAT reports, Kumba takes full responsibility for the ongoing sustainability of the communities that surround its operations, and ultimately, of its business. Kumba implements the SEAT process by:

Each operation is required to complete the SEAT process and compile a report, which is subject to review every three years, to ensure that the company’s interventions remain appropriate. A wide variety of internal and external stakeholders participate in this process, including employees, employee representatives, community representatives and local government officials.

During the year, SEAT reviews were undertaken at the Kolomela and Sishen mines and both reports were published in December 2011. Thabazimbi mine will review its SEAT report in 2012.

SLP REVIEWS

Sishen mine has completed its five-year SLP commitment period and a new SLP for the period 2012 to 2016 has been developed and submitted to the DMR for approval. The mine has met or exceeded all of its SLP commitments except for those related to the conversion of hostels. Due to housing shortages, not enough transit housing was available to accommodate employees during the conversion of the hostel blocks. The mine is however still on track to meet the Mining Charter target to convert all hostels into single unit accommodation facilities by 2014. Despite production only starting in December 2011, Kolomela mine’s SLP programme was started in 2009 and is well under way. Thabazimbi mine has one year left in which to complete its first set of five-year commitments. Both Kolomela and Thabazimbi mines will draft and submit their new SLPs in 2012.

SOCIAL AND COMMUNITY DEVELOPMENT EXPENDITURE (R million)

  2011   2010  
Corporate office 71.2   6.2  
Sishen mine 73.6   72.1  
Thabazimbi mine 9.2   16.8
Kolomela mine 30.9   38.9  
Group 184.9*   134.0  

*Including Kumba’s inter-Anglo American contribution, this amount adds up to R191 million, 1% of 2010 NOPAT, as per Mining Charter requirements.

MAJOR SOCIAL AND COMMUNITY DEVELOPMENT PROJECTS

Kumba supports a range of developmental interventions. Listed below are a few examples of Kumba’s SCD initiatives in 2011.

Name of project   Description
Education and skills development
   
Sonstraaltjie day care centre   This venture involved the construction of a 24-hour day care centre that can accommodate 150 toddlers. The centre opened its doors in January 2011 and currently employs 15 staff members who provide care for 126 toddlers. The centre offers meals and an after-school care service to around 200 learners from grades 1 to 7.
Rural early childhood development centres   Three, out of a total six, rural early childhood development centres have been built in the deep rural areas of the John Taolo Gaetsewe district. The whole project is conducted in partnership with the Northern Cape Department of Health and stretches over two years.
Pinocio Grade R   Pinocio Grade R is a grade R facility that forms part of the Postmasburg Primary School. Kolomela mine funded the upgrading and expansion of the facility to accommodate the increased number of learners to the school.
Rooiberg Primary School   The Rooiberg Primary School faced a health risk due to old and dilapidated sanitation infrastructure. The company funded the upgrading of the ablution facilities at the school.
Health and welfare
Ulysses Gogi Modise (UGM) wellness clinic  

The UGM wellness clinic in Kathu provides CCT services and anti-retroviral treatment to the people of the Gamagara local municipality.

Case study The Ulysses Gogi Modise wellness clinic
Sesheng distribution centre   The centre supplies food, frozen and fresh products, clothing and a range of dry goods to an average of 1,300 people a month.
Batho Pele mobile units  

The nine units of the Batho Pele mobile clinics serve the isolated villages of the John Taolo Gaetsewe district, delivering free primary and secondary health care to a potential 14,800 people. Kumba works in partnership with the Northern Cape Department of Health to deliver this much needed medical assistance.

Case study The Ulysses Gogi Modise wellness clinic
Ambulances for the Northern Cape   This initiative involved the funding of 77 ambulances as part of the Northern Cape Department of Health’s ambulance replacement strategy.
Thabazimbi community wellness clinic   This clinic is run in partnership with the Limpopo Province Department of Health, and provides primary health care services to the community.
Poverty alleviation and enterprise development
Business Development Support (BDS) centre (Kuruman)   The BDS centre in Kuruman is based on the Business Simulation Hub model developed in Kathu. Opened in January 2011, the centre supports around 280 entrepreneurs a month by assisting with a variety of business issues, providing training and mentoring, and helping to obtain funds.
Manyeding cultivation project   The aim of the initiative was to create a sustainable agricultural business that would benefit the broader community through employment, skills development and economic empowerment. Although the project started in 2010, it became commercially viable in November 2011 with financial support from Kumba.
Infrastructure
Zinc air fuel cells project   Kumba fitted around 250 rural households in the Gaetsewe district with zinc air fuel cells as an alternative to paraffin and candles.
Addressing water backlog in Moshaweng:
Dithakong village
  This project involved the refurbishment of boreholes and storage facilities and the reticulation and replacement of standpipes with pre-paid meters.
Sewer network in Olifantshoek   Kumba was a partner in the upgrading and expansion of the sewer network in the Ditlhong township in Olifantshoek.
Upgrade of water management infrastructure
near Kolomela mine
  This involved the planning and construction of water management infrastructure for the Siyanda municipality (Kuruman) and the Tsantsabane municipality (Postmasburg).
Postmasburg bus and taxi terminus   This project is a joint venture with the Tsantsabane municipality, with funding provided by Kolomela and Beeshoek mines. It focused on the upgrading and expansion of the bus and taxi terminus in Postmasburg town to assist with safer traffic flow through the town.