Sustainability review

In identifying and reporting on sustainability matters management has adopted an inclusive approach, ensuring that the reporting narrative is informed by the context of the business, its business model and strategy, the risks to the business, while also taking into account the needs and concerns of its stakeholders, both internal and external.

Northam has in the past identified, through a series of GRI-guided workshops which took into account an analysis of the internal and external environments, information f rom the company’s risk register and feedback from stakeholders, a number of issues which are considered to be material to the company’s business and operations. These issues are reviewed and re-evaluated, on an ongoing basis, by management and have remained largely constant, notwithstanding some changes in their rankings.

The material issues should be read in conjunction also with the company’s business risks which may be found at managing business risk and opportunities of this document, and are defined as those issues which “reflect the organisation’s significant economic, environmental and social impacts; or would substantively influence the assessment and decisions of stakeholders.”

These issues are outlined below and form the substance of what we report against throughout this document.

MATERIAL ISSUES

Creating meaningful value and sustainable benefits for all stakeholders, including shareholders (see financial capital)

• Increased production and sales
• Increased earnings and growth
• Transformation
• Salaries and wages
• Investing in communities (LED/CSI)
• Taxes and royalties

Establishing and maintaining constructive communication and consultation with our employees (see human capital)

• Stakeholder engagement and employee relations
• Establishing direct channels of two-way communication

Operating safely and efficiently to protect the lives and livelihoods of employees and contractors (see human capital)

• Reducing injury rates
• Applying appropriate technologies
• Communication and training
• Reinforcing operational standards and responsibility

Establishing and maintaining constant and constructive community engagement, in order to deal with community concerns, expectations and developments (see social capital)

• Stakeholder engagement
• Investing in communities (LED/CSI)
• Local employment
• Local procurement

Achieving and maintaining legislative and regulatory compliance, including our social licence to operate, and ensuring the underlying systems and processes are in place to achieve this (reported throughout)

• Environmental compliance
• Mining Charter compliance
• Social and labour plans
• Accounting standards and IFRS

Environmental management, conservation and the optimal use of resources (see natural capital)

• Optimal use and conservation of resources
• Minimising environmental impacts
• Land conservation
• Compliance