Socio-economic development Highlights Disappointments 750 houses at Sunrise View project occupied by employees whose mortgage bonds have been approved, of which 536 have been registered 42 provincial government housing subsidies approved for employees earning below R7 000 basic salary Successful conversion of hostel accommodation to family units and residences accommodating 6 000 employees Successful implementation of local economic development (LED) projects at 78% rate Management approach In line with the Group s approach to sustainable development, the way in which we manage socioeconomic development in our operating areas has been substantially changed. In 2009 a fully fledged technical team was established to ensure the successful implementation of socio-economic projects, assisted by the stakeholder engagement department to ensure appropriate consultation with key roleplayers in each project. All project approvals start at operational committees and move through to the sustainable development forum, which comprises predominantly executive management. An independent verification agency assesses the impact of project implementation and verifies appropriate allocation of funds. In South Africa, the Group s approach ensures the balanced delivery of socio-economic development objectives against a set of business imperatives on the one hand, and the needs of stakeholders on the other. Implats faces considerable challenges in meeting its socioeconomic development goals in South Africa, involving dozens of affected communities with disparate needs. To manage this more effectively, we have concentrated on both these communities and their identified needs. Driven by champions in various areas, the approach to socioeconomic development now focuses on: Enterprise development/local economic development Infrastructure development Housing and living conditions Low bond approval rate due to poor credit rating Education and training Health, safety and environment Sports development Corporate social investment Sustainable development working and steering committees, supported by project committees, review and guide funding and monitor progress on identified development projects. Each major project undergoes a commercial and technical evaluation process and, once approved, the best project management principles are applied to ensure proper implementation, control monitoring and evaluation. Included in our socio-economic development initiatives are the activities of the Impala Bafokeng Trust (page 116). At Group level, Implats continues to support civil society institutions such as the National Business Initiative (NBI), South African Mining Development Association (SAMDA) and South African Women in Mining Association (SAWIMA). Performance in FY2010 South Africa In FY2010, the Group spent R88 million on socioeconomic development projects in South Africa (FY2009: R60 million), and R552 million has been spent on housing. This is part of the home-ownership programme to help employees acquire their own property. 113 Implats Integrated Annual Report 2010
Performance overview In FY2010, 54 793 people benefited directly and indirectly from Implats socio-economic development expenditure (40 901 and 13 892, respectively). Across our various initiatives, 1 333 direct and 983 indirect jobs were created. In total, 281 organisations benefited. Demographic split of beneficiaries Black males (youth) 43% Black females (youth) 43% Black females 7% Black males 4% Other 2% Disabled 1% The demographic and category breakdown are shown in the graphs alongside. Socio-economic development expenditure in South Africa (Rm) Programme FY2010 FY2009 Empowerment of community structures* 21 18 Health, safety and environmental 1 2 Education 16 14 Government and municipal support infrastructure 12 4 Sports development 15 11 Enterprise development 19 10 Community welfare, arts and culture 4 1 Total socio-economic development 88 60 Housing and living conditions 552 917 Total sustainable development 640 977 Note: Overhead costs excluding R7.5 million was accrued for Afplats. 114 Implats Integrated Annual Report 2010
South African operations flagship projects Project Operations Programme Project duration Accommodation Rustenburg/Marula Housing and Living Conditions 2007 2012 Macharora Vegetable farm Rustenburg Enterprise development 2009 2014 Community Environmental rehabilitation Rustenburg Enterprise development 2008 2013 OR Tambo Essential oils production Labour Sending Area Enterprise development 2009 2014 Small Medium and Micro Enterprise Rustenburg/Marula Enterprise development Ongoing Hydroponics Farming Marula Enterprise development 2009 2012 Portable Water and Electricity Marula Infrastructure 2008 2013 Chrome Project Marula Enterprise development Ongoing Zivuseni Farming Springs Refinery Enterprise development 2005 Ongoing For information relating to socioeconomic Aerial view of Sunrise Village. 115 Implats Integrated Annual Report 2010
Performance overview Socio-economic development continued Impala Bafokeng Trust Impala expenditure through the Impala Bafokeng Trust (jointly funded by Implats and RBH) is included above. Our focus is on ensuring that expenditure for every project is used to maximum benefit and for the purposes and beneficiaries intended. Our socio-economic development expenditure is externally verified with rigorous monitoring systems in place. Objectives FY2011 Completion of hostel conversion to residences Completion of all housing related projects around Rustenburg and keep momentum on renovation and upgrading of Company housing portfolio Establishment of Business Support Unit to serve the Small Medium and Micro Enterprises Ensure sustainability of the existing community projects through mentoring and coaching Jointly Impala and North West Provincial Government to build a school to cater for the residents of Sunrise View in Rustenburg Socio-economic development compliance Social and labour plans are in place for Impala Rustenburg, Marula and Afplats Leeuwkop. These plans set out each operation s commitment to participate in specific local economic development (LED) initiatives that benefit both the surrounding communities and areas where they draw their labour (so-called labour-sending areas). Areas of focus are income-generating projects, preferential procurement, enterprise development, employment equity, skills development, housing and living conditions, and infrastructure development. In recent years, there have been a number of problems in delivering infrastructure development programmes. These The Impala Bafokeng Trust (IBT) Formed after the significant BEE transaction between Implats and Royal Bafokeng Holdings (RBH), the primary aim of the trust is to contribute to the social and economic development of residents, particularly women, of Bojanala district in North West Province (home to Impala Rustenburg and the people of Royal Bafokeng Nation). Funding comes from equal contributions by Implats and RBH of R170 million over the eight years from 2007 to 2014. While the trust has an overarching emphasis on empowering women, it focuses more specifically on the areas of: Education, particularly early childhood development as the basis for entry to the formal education system Enterprise development, especially initiatives that help aspirant entrepreneurs advance beyond subsistence into the formal economic sector Health, particularly providing infrastructure, equipment and human resource development and retention Capacity-building in local institutions to support the work of the trust and its partners Sport and recreation to encourage personal development, healthy living and community building The trust seeks to go beyond mere grant-making in these areas, avoiding duplicated effort and facilitating partnerships where the private, not-for-profit and public sectors collaborate on specific programmes. The IBT does not provide support to individuals, private companies or businesses, political parties, trade unions or events and initiatives aimed at promoting any religion. It is guided by a Board of trustees, and managed professionally by an independent consultant. For further information, go to www.ibt.org.za. 116 Implats Integrated Annual Report 2010
include a lack of bulk services, funding and systems to manage and maintain infrastructure upon completion and delivery. For case studies relating to sports Zimbabwe During the year, amid rapid changes in the Zimbabwean operating environment, Zimplats conducted an extensive stakeholder survey to reassess needs and perceptions among its constituent communities. Overall results were encouraging. While this slowed progress on certain longerterm initiatives, it has sharpened our focus on areas most important to stakeholders: Health and sanitation Education Income-generating projects Water supply While Zimplats is consciously doing the right things in terms of human rights, it also ensures this behaviour is replicated by suppliers. The Group continues to implement investment initiatives where significant needs have been identified. Zimbabwe operations key socio-economic development projects As in South Africa, Zimplats has reviewed its housing strategy and plans are now under way to implement a large-scale housing scheme at the mining operation. As part of the US$340 million Ngezi expansion project, an employee housing project is on track, with 700 of 900 planned units already completed. At Mimosa, after a strategic review of corporate social investment initiatives, the focus has shifted to selfsustaining projects to empower community members in the longer term. Accordingly, the mine will partner with its communities in addressing identified needs as opposed to donating funds. Projects scheduled for implementation include agriculture-based community programmes, providing clean water to communities by drilling boreholes, developing local school and refurbishing hospitals. In FY2010, Mimosa spent some US$316 000 on CSI initiatives, primarily in the education field through scholarships and infrastructure development. For case studies relating to socioeconomic Project Operations Programme Project duration Refurbishment of local clinic Zimplats Community Welfare/Health 2009 Education Material donation Zimplats Education 2009 Student Scholarships Zimplats Education 2010 Conservation Farming Zimplats Enterprise development 2009 2010 Reconstruction of Primary School Zimplats Infrastructure 2010 Selous Electricity Sub-station Zimplats Infrastructure 2009 2010 For information relating to Zimbabwean projects, please go to 117 Implats Integrated Annual Report 2010