Northam seeks to mitigate any negative impacts on local communities, and maintains open and proactive communication channels with community structures and other stakeholders in order to deal with community concerns, expectations and developments. In addition, and given that its operations are situated in fairly remote areas of the country, the company recognises its responsibility to contribute to local surrounding communities, providing project and infrastructural support in pursuit of socio-economic upliftment and the provision of a social wage.
The CSI committee comprises three members of management and one representative from each of the organised employee representative bodies. It meets on a monthly basis to identify, prioritise and allocate resources to sustainable projects. Key interventions are planned with local municipalities in the areas of local recruitment and community projects.
Northam’s social and labour plans are aligned with the integrated development plans (IDPs) of local municipalities to address community needs effectively. In addition to local economic development the company also supports several projects that are not necessarily in the ambit of its social and labour plans but are considered worthy causes.
Compliance with aspects of the Mining Charter relating to local economic development and related issues is the responsibility of the corporate human resources and transformation manager under the guidance of the social, ethics and human resources committee, and is overseen at board level through the SE&HR committee.
In F2014, a total of R2.9 million was spent on CSI (F2013: R3.0 million). CSI expenditure at Zondereinde was R1.5 million during the year. The mine has been restricted in expenditure due to the delay in the final approval by the DMR of proposed projects by the local municipality and final approval of the SLP submission. (F2013: a total of R3.0 million).
At Booysendal, CSI expenditure amounted to R1.4 million.
Northam’s community development programme focuses on contributing to the social upliftment of communities surrounding its operations and those within major labour-sending areas. The programme aims to empower these groups economically in a sustainable manner. Investment in social and local economic development this year was restricted, however, owing to delays in project approval processes in the local municipalities other authorities.
Zondereinde engages with three municipalities:
In pursuit of developing a local supplier base, a supplier forum has been established, with mining companies and municipal officials represented on the steering committee. In addition a mining forum has been established in order to improve communication and coordination between the mines and municipal representatives on large-scale projects to improve infrastructure and delivery in the area.
Guided by the Zondereinde social and labour plan and the operation’s CSI committee, which is tasked with identifying development priorities in the areas surrounding the mine, Zondereinde’s primary local economic development projects in F2014 included:
CSI priorities are focused on education, support for people living with disabilities and the elderly. Zondereinde continued to support the Thabang Children’s Home which cares for orphans and other children. In addition the company invested in infrastructural support services and refuse removal for 200 residents in the Mojuteng housing project.
As part of its commitment to the Madiba Rhodes Foundation, Northam contributed R1.2 million towards bursaries for black students.
The lack of service delivery and poor follow-up and support from local municipalities remains a significant challenge, with the company having to contribute to service delivery instead of focusing on economic growth.
| Project | Objectives | Location | Spend |
|---|---|---|---|
| Northam comprehensive primary school | Upgrading sanitation facilities and infrastructure, i.e. doors and ceilings | The town of Northam | R81 661 |
| Deo Gloria primary school | Construction of three additional classrooms at Deo Gloria primary school | Thabazimbi | R14 677 |
| Entrepreneurial support centre | Agricultural activities and preparation towards provision of small business support activities | OR Tambo | R199 702 |
| OR Tambo job creation project | A joint initiative with Teba Development to create employment opportunities | OR Tambo | R405 911 |
| Computer Services | Payment for the provision of networking services for 3 schools | Moses Kotane and Thabazimbi Municipality areas | R322 114 |
The Booysendal mine is located in a remote region of the Limpopo province where there are limited economic opportunities. Agriculture, forestry, mining and tourism are the region’s primary activities. A major challenge is the low level of literacy and education in the area, which is rated among the lowest in the country.
Booysendal’s local economic development and CSI activities are co-ordinated by the divisional human resources manager, who is also responsible for oversight of community engagement in the area.
Stakeholder identification and engagement at Booysendal has been ongoing since the mine’s inception, but this is complicated by the scale, proximity and needs of local communities, and by historic interests in landholdings.
Booysendal has sound working relationships with all its stakeholders and engages with them mainly through the following structures:
A stakeholder engagement policy is in place and several forums have been set up in the area where Booysendal operates. The forums provide structures and channels for Booysendal to facilitate the flow of meaningful benefits to communities, help the mine to keep abreast of concerns among community members and to address any issues raised.
The forums include the following:
Given the lack of infrastructure in the area surrounding Booysendal, the division contributed some R412 787 to upgrades and repairs to the R577 road, the main access from Lydenburg. This was a joint initiative in collaboration with other mines in the southern cluster. The road is used by more than 10 000 people daily from the nearby mines and on neighbouring villages and farms.
A number of local economic development projects, targeted in the social and labour plans, are still in the approval process at the DMR, resulting in project delays. This was exacerbated also by conflict within different stakeholder groupings, unsuitability of certain projects and the lack of suitable land for LED projects.
| Project | Objectives | Location | Spend |
|---|---|---|---|
| Mine crime combating forum | Address crime affecting mines in the Greater Tubatse municipal area | Greater Tubatse Local Municipality | R15 000 |
| Upgrading Rooi Draai substation | To avoid load shedding in Lydenburg | Thaba Chweu Local Municipality | R17 256 |
| Ngwaabe crime prevention campaign | Community crime awareness | Greater Tubatse Local Municipality | R10 000 |
| Laerskool Lydenburg – English text books | Assist the school with English text books not supplied by government | Thaba Chweu Local Municipality | R20 831 |
| R577 road maintenance | Repair and maintain the road which is in a bad state | Thaba Chweu Local Municipality | R412 787 |
| Project | Objectives | Location | Budget |
|---|---|---|---|
| Ngwaabe multipurpose centre | Provide educational and sports facilities | Ngwaabe | R800 000 |
| Dinalane early childhood development centre | Better infrastructure and facilities for the children living around Kutullo | Kutullo | R700 000 |
| ABET-community based initiative | Provide lifelong learning for adults | Ngwaabe | R90 000 |
| SMME mentorship programme | Capacitate local emerging SMMEs | Booysendal | R60 000 |
| Environmental cleaning education/ Mandela day celebration | Encourage community participation in environmental initiatives | Ngwaabe | R50 000 |
| Sports development/Ngwaabe secondary school soccer tournament | Network of community leaders and organisations actively using sports programmes to bring people from diverse backgrounds together and thus reinforce healthy lifestyles and foster civic pride and participation – theme: healthy body, healthy mind | Greater Tubatse Local Municipality | R100 000 |
| Scholar awareness/career guidance | Promote the mining industry through dissemination of information to attract quality candidates to mining disciplines from local schools | Ngwaabe Cluster | R50 000 |
In F2014 5.1% of permanent employees and 6.8% of contractors at Zondereinde were drawn from the local Thabazimbi municipal area.
In order to limit the dependence of communities on the mining industry for jobs, Zondereinde has prioritised key economic areas to be developed through the contributions of small businesses and local entrepreneurs. These areas include:
Engagements were held with local community structures, with representation of municipal councilors wherein specific issues of sustainable small business development and establishment of local economies were considered. Follow-up sessions are scheduled during September and October 2014.
As a single, shallow and mechanised operation, Booysendal is not labour-intensive, and it is unlikely that the mine will ever be able to meet the expectations and needs of everyone in the surrounding communities. Currently, 63% of MRC’s employees are local while 42% of Minopex and 44% of Booysendal’s employees are drawn from local communities.
Local employment remains key in the communities surrounding Northam’s operations. A major challenge faced by mines in remote and underdeveloped areas, is the community’s unrealistic expectations in terms of employment opportunities and the availability of resources.
In collaboration with the local municipalities at Booysendal, a dynamic database has been established for the recruitment of local employees with the necessary skills and experience, particularly in the fields of engineering, trackless mining and plant operations.
Booysendal prefers to hire people from the host communities at all levels of the workforce and encourages contractors to do the same in support of local development.
The mine strives to provide meaningful support to small and medium-sized businesses in nearby communities as well as those who are already providing services to the mine so that they can contribute to the development of the local economic base. Booysendal emphasises a pragmatic, gradual approach and plans to train 12 identified small, medium and micro enterprises (SMMEs), who have already been assessed by SEDA in the 2012/13 financial year, during F2015.
In compliance with the Mining Charter, Northam is committed to giving preference to local businesses in the communities surrounding its operations. Northam’s procurement policy, accordingly, gives local BEE companies preferred supplier status.
Northam enjoys a reasonably healthy and professional working relationship with all its stakeholders.
Nevertheless, as reported in the 2013 sustainable development report, land invasions by the Ba Choma community over a company-owned property adjacent to Booysendal, which is traversed by an Eskom servitude, led to delays in commissioning permanent power supply to Booysendal. The company has subsequently accepted an offer to purchase the farmvNevertheless, as reported in the 2013 sustainable development report, land invasions by the Ba Choma community over a company-owned property adjacent to Booysendal, which is traversed by an Eskom servitude, led to delays in commissioning permanent power supply to Booysendal. The company has subsequently accepted an offer to purchase the farm from the regional land claims commissioner’s office in Mpumalanga in order to restore it to the Ba Choma community. This property is not part of the Booysendal mining right. At the time of writing, this transaction had not yet been concluded. In addition, the company was notified by the regional land commissioner’s office in Limpopo that a number of land claims had been lodged over the farm Booysendal on which the mine is situated. An in loco inspection of the property conducted by officials from the regional land claims commissioner’s office was attended by more than 20 members of local communities. Investigation and research of these claims is still in progress. Should a claim be proved over Booysendal, the mining right is unlikely to be threatened as the claim is for the surface of the land and the state has many options available to compensate the claimants.
Booysendal did not incur any significant fines or other non-monetary sanctions. Furthermore there were no cases referred for dispute resolution in F2014. Booysendal did not incur any significant fines or other non-monetary sanctions. Furthermore there were no cases referred for dispute resolution in F2014.
At Zondereinde, the company engages local municipalities as conduits towards ensuring that priority areas are targeted with key interventions. However, councillors and traditional leaders do collaborate with the mine in respect of key interventions such as local recruitment, CSI and LED projects. Engagements with communities are on a needs basis and relationships to date can be reported as constructive and fruitful.