EMPLOYMENT PRACTICES

Northam is committed to fair and progressive employment practices where long-term employment opportunities are provided to employees to develop their potential. Remuneration practices take account of the demanding skills required in the mining industry, as well as the difficulty of attracting skilled HDSAs to work in remote locations.

Northam’s employment practices and policies are governed by South African legislation and regulations, including the following:

• 

  Mine Health and Safety Act

• 

  Employment Equity Act No 55 of 1998

• 

  Skills Development Act No 97 of 1998

• 

  Skills Development Act No 97 of 1998

• 

  Basic Conditions of Employment Act No 75 of 1997

• 

  Labour Relations Act No 66 of 1995 (Labour Relations Act)

• 

  MPRDA

• 

  Collective bargaining and recognition agreements with organised labour

Formal grievance policies and procedures are in place, providing for both individual and group grievances.

Full-time Northam employees receive the following benefits:

• 

  Membership of pension and provident funds

• 

  Death benefits

• 

  Access to medical care

• 

  Housing and living-out allowances

• 

  Study assistance

• 

  Maternity and paternity leave

ZONDEREINDE

In F2017, Zondereinde employed 6 059 full-time employees and 2 667 indirect employees (F2016: 6 083 full-time employees and 2 309 indirect employees). The operation’s total employee turnover was 688 (11.3%). Zondereinde aims to meet its employment needs from within the local community.

Zondereinde’s migrant labour contingent comprises 30% of its permanent workforce (excluding indirect employees) – meaning that they are sourced from South African provinces other than Limpopo and the North West. The operation’s foreign labour workforce, drawn from beyond South Africa’s borders, comprises 30% of permanent employees.

	F2017	F2016	F2015	F2014	F2013
Number of employees and indirect employees	8 726	8 392	8 548	8 788	9 148
Employee turnover rate (%)	11	6	7	4	1

BOOYSENDAL

In F2017, Booysendal employed 198 full-time employees and 3 481 indirect employees, which included 1 748 temporary construction workers (F2016: 191 full-time employees and 2 729 indirect employees). The operation’s total employee turnover rate was 5%.

Booysendal’s employment policies and those of its contracting companies give preference to local employees and South African citizens as part of its commitment outlined in its social and labour plan (SLP). Since inception, Booysendal has recruited an average of 60% of its workforce from local communities.

All contracting companies on site are obliged to commit to the group’s local recruitment targets, and are required to submit a monthly report detailing the number of local employees, resignations and terminations. The group takes local employment very seriously, given the depressed economic conditions in the area and its potential impact on the group’s operations.

	F2017	F2016	F2015	F2014	F2013
Number of employees and indirect employees	3 679	2 920	1 508	1 421	1 915
Employee turnover rate (%)	5	8	11	Project phase	Project phase

EMPLOYEE REMUNERATION

Northam’s remuneration model takes account of the demanding skills required in the industry. Benchmarking studies have demonstrated that entry-level mineworker wages in general, and those of Northam employees in particular, compare favourably with other sectors.

Wages and conditions of service are negotiated through engagement with employee representative bodies. (See Freedom of association and collective bargaining below for more information.)

EMPLOYMENT EQUITY AND TRANSFORMATION

South African employment equity legislation is aimed at redressing the imbalances of the past. To rectify these imbalances, Northam focuses on the participation of black South Africans and women at its operations. The Mining Charter required 40% of management to comprise HDSA employees by 2014, and for 10% of those to be women. Northam achieved a 62% HDSA (F2016:48%) level of management in F2017 with LA 53% at Zondereinde (F2016: 48%) and LA 66% at Booysendal (F2016: 50%).

Northam’s chief executive and the executive: human resources are responsible for employment equity and transformation. The implementation of these practices is a line management function, while the SE&HR committee has an oversight role. Our mine general managers have been appointed employment equity managers for their respective operations.

Northam’s employment equity plan is compliant with the requirements of the current Mining Charter and the Employment Equity Act. The group submits its employment equity plans and progress reports to the Department of Labour annually.

A Future Forum was established at Booysendal in 2015. The Forum comprises representatives of management, organised labour, the Booysendal Women in Mining committee and the health and safety committee to assist with amendments to the workplace skills plan and employment equity plan and the monitoring of their implementation on a quarterly basis.

% HDSAs

	F2017	F2016	F2015	F2014	F2013
In group management	62	48	51	45	37
Represented at board level	60	60	50	44	56

HDSAs and women in operational management in F2017

	Occupational levels	Total in workforce (number)	Target (%)		LA Actual (%)
			HDSAs	Women in mining	HDSAs	Women in mining
Zondereinde	Senior management	12	40	10	58	25
	Middle management	69	40	10	52	16
	Junior management	205	40	10	53	11
Booysendal	Senior management	7	40	10	57	14
	Middle management	51	40	10	49	8
	Junior management	462	40	10	73	13

WOMEN IN MINING

Northam’s engagement and consultation with women is undertaken by the employment equity and training committee at Zondereinde and the Future Forum at Booysendal, and is informed by consultation with local branch structures of organised labour.

Barriers and challenges for women in mining identified by Northam and NUM (Zondereinde)

• 

  Scarcity of skills in the management category

• 

  The suitability of protective equipment for the needs of women

• 

  Active sourcing of women for bursaries and learnerships
  
  A talent pipeline aimed at developing women for positions in which they are underrepresented

• 

  Sourcing suppliers able to provide suitable protective equipment for female employees

• 

  Perceptions about women in mining

• 

  Underground facilities for women in the workplace

• 

  Changing perceptions using training programmes for a diverse workforce

• 

  Identifying and discussing women’s requirements and establishing appropriate arrangements and facilities

• Barriers and challenges
• Interventions implemented by Northam

In F2017, Northam employed a total of 831 women (F2016: 715), 61% (F2016: 46%) of whom were working in the core disciplines of mining, metallurgy and engineering. Women made up LA 10% of the workforce at Zondereinde (F2016: 8%) and LA 20% at Booysendal (F2016: 23%).

In December 2016, a Women in Mining celebration took place at Zondereinde, focusing on women’s success stories and women’s health and safety.

Women in mining (%)

	F2017	F2016	F2015	F2014	F2013
Zondereinde	LA 10	8	8	7	7
Booysendal	LA 20	23	17	20	Not reported

TRAINING AND DEVELOPMENT

Northam’s training and development programmes provide the support employees need to improve their competence and knowledge in the workplace and to grow as individuals. The programme includes:

• Legislative training (skills, health and safety)
• Learnerships
• External specialised training
• Bursaries and study assistance
• Adult education and training (AET)
• Mentorship
• Succession planning
• Job specific and refresher training

Northam’s training and development policy stipulates that emphasis be placed on the competence and competitiveness of employees as well as their personal development. The impact of training and development interventions is assessed in order to ensure that these interventions positively influence workplace behaviour. In F2017, the number of training interventions totalled 1 643 at Zondereinde and 315 at Booysendal.

In F2017, the group spent a total of LA R18.5 million on training and development at Zondereinde (F2016: R21.0 million) and LA R2.4 million at Booysendal (F2016: R3.2 million). This is equivalent to 1.1% of the total wage bill (F2016: 1.2%).

ZONDEREINDE

Zondereinde is in the process of implementing an integrated training solution that will reduce administration and improve reporting. This will be launched by early October 2017. The operation is also busy with the establishment of an underground training centre to be launched towards the end of 2017. The centre will help improve the quality of assessment and practical training.

In F2017, five Zondereinde employees (F2016: 13) participated in learnership programmes. Northam offers electrical, plater/ boilermaker, rigging, underground mining and rock-breaking learnerships to qualifying employees.

Zondereinde’s bursary programme offers bursaries to second- year students in the fields of mining, electrical, mechanical and metallurgical engineering. Successful bursars are subsequently entered into a two-year graduate internship programme before they are appointed to the Northam workforce.

In F2017, five students received support to the value of R340 141 for mining-related engineering degrees (F2016: eight students supported at a cost of R0.6 million). The current bursary programme includes five black females in line with the group’s strategy to increase female participation in professional occupations.

Literacy is important to Northam as it improves employees’ ability to communicate effectively and clearly. AET is available to all employees on a part-time basis and the company is accredited to offer AET up to General Education and Training Certificate (GETC) level or National Qualifications Framework (NQF) Level 1. In F2017, 320 employees (F2016: 456) attended the AET programme at Zondereinde.

Zondereinde – learning assistance breakdown F2017

	LA Expenditure	Number of people	HDSAs	Women
	R000		%	%
AET	1 775	320	62	15
Learnerships	724	6	83	17
Bursaries	340	5	100	100
Management development	298	3	100	67
Study assistance – refunds and leave	390	84	94	42
External training and skills development	5 583	1 634	72	11
Internal training and skills development	9 393	7 963	92	6
Total	18 503	10 015	88	8

BOOYSENDAL

The Booysendal training centre is now provisionally accredited with the Mining Qualifications Authority (MQA) and the International Standards Organisation (ISO) 9001:2008 system.

In F2017 a total of five employees (F2016: 18) participated in learnerships in the fields of rigging, fitting, welding and mining. This decrease in the number of learnerships compared to F2016 was due to the operation’s SLP approval not taking place until November 2016.

Booysendal’s bursary programme offers bursaries to first year students in the fields of mining, electrical, mechanical and rock engineering and mine survey, areas of study that support the group’s SLPs. These bursaries place emphasis on assisting students from Booysendal’s surrounding communities.

A study of the literacy levels among our indirect employees has revealed that they have an average minimum AET level 4 or Grade 9 qualification, thereby obviating the need for AET for employees. Northam has therefore prioritised the facilitation of AET classes for local community members in order to improve their access to employment opportunities in the future. An independent service provider from the local community provides these classes. Booysendal’s adjusted SLP was approved in November 2016 which made it possible to start AET classes in July 2017. Twenty candidates will be enrolled.

Booysendal – learning assistance breakdown F2017

	LA Expenditure	Number of people	HDSAs	Women
	R000		%	%
Learnerships	55	5	100	20
External training and skills development	1 535	114	67	23
Internal training and skills development	763	196	83	17
Total	2 353	315	77	18

NORTHAM’S ACCOMMODATION AND HOUSING STRATEGY

The living conditions of employees is a key concern for Northam and the group has embarked on a five-year roll-out of sustainable accommodation solutions. The MPRDA and the Mining Charter provide the group with direction in respect of the provision of employee accommodation and housing.

During F2015, the board of directors approved a comprehensive strategy to provide further accommodation opportunities to all employees. The strategy will focus the group’s future efforts.

Northam accommodation strategy

The following are pillars of our accommodation strategy:

• The strategy promotes home ownership as the preferred sustainable tenure option while acknowledging that rental, residence units and company accommodation will also be required. Northam cannot provide any one accommodation type in isolation, something that is further necessitated by the geographic diversity of our mines.
• The role of Northam is that of a facilitator, creating an opportunity for employees and using its financial and other resources to secure best prices and quality. Employees are encouraged to choose the option that best suits their circumstances and requirements.
• Accommodation provided to staff must be secure, decent and affordable. An employee must be confident that his or her tenure is legally secure, that it is affordable on his/her salary and that it is well designed and a good quality product.

Building programmes will be demand driven within the constraints of the group’s financial position as well as the availability of serviced land. The strategy takes account of the economic conditions prevailing in the industry and represents a commercially and financially prudent use of group resources.

Elements of the strategy

Elements of the strategy include:

• the refurbishment of existing hostels at Zondereinde into residences thereby providing single accommodation; the upgrade of visiting quarters; and the improvement of social amenities around the residences
• the building at Zondereinde and Booysendal of:
  • freehold home ownership units for Northam employees
  • freehold home ownership units for public participation
  • freehold rental units for Northam employees
• various financing options.

ZONDEREINDE

Type of homeownership	Number of units available/loans provided	Status	Cumulative spend to date/loan balance outstanding at 30 June 2017	Cumulative revenue generated
			R000	R000
Conversion of hostels into single residences	2 852	Conversion concluded in F2017	102 304	–
Freehold home ownership units (Mojuteng)	409	386 units have been sold	125 289	117 011
Freehold home ownership units (Mogwase)	24	7 units have been sold	3 366	3 378
Mine house units available for rental or home ownership (Setaria)	726	4 units have been sold	139 368	4 407
Units available in the town of Thabazimbi	24	N/A	9 401	–
Land acquisition in Northam town	N/A	Construction of 69 home ownership and rental units planned to start early F2018, with completion expected during the 2018 calendar year	14 576	–
Number of home loans relating to Mojuteng	369	Financing provided to employees and ex-employees to assist with home ownership	90 338	20 917
Number of interest free home loans	47	Interest free home loans provided to employees	9 386	–
Number of individuals receiving a living out allowance	2 563	An allowance is received of between R3 115 and R4 736 per individual	–	–

BOOYSENDAL

Type of homeownership	Number of units available/loans provided	Status	Cumulative spend to date/loan balance outstanding at 30 June 2017	Cumulative revenue generated
			R000	R000
Freehold home ownership units	71	Some of these units are available for sale to employees and contractors	97 625	–
Freehold rental units	28	N/A	16 462	–
Land acquisition in Mashishing		Construction work will be on tender towards the end of 2017. In total
	N/A	318 units will be constructed in various phases	12 085	–
Number of interest free home loans	9	Interest free home loans provided to employees and contractors	2 566	–
Number of individuals receiving a living out allowance	153	An allowance is received of between R3 115 and R12 218 per individual	–	–

PROGRESS TO DATE

Zondereinde

A total of 2 520 employees are provided with a living-out allowance while another 2 793 live in residences provided by Northam. The living-out allowance for each category forms part of wage negotiations between Northam and organised labour.

Booysendal

Booysendal employees and indirect employees live predominantly in the towns and villages surrounding the operation, including Mashishing (formerly Lydenburg), Steelpoort, Burgersfort, Ngwaabe and Jane Furse. The majority of employees and indirect employees have elected to receive living-out allowances.

Residences

The residence de-intensification programme was completed in F2017 and the density target of one person per room has been achieved. In total, 2 852 rooms were converted to single accommodation.

Employees in residence accommodation are provided with meals, which are overseen by a dietician who draws up meal plans and monitors energy, macro and micro nutrient content.

Home ownership

Home ownership solutions will be directed at permanent staff and indirect employees, taking into account that the Booysendal operations will ramp up towards the end of the decade requiring additional labour.

Mojuteng

Northam introduced the Mojuteng home ownership scheme to promote home ownership among its Zondereinde employees. The site is in Northam town, approximately 22km from Zondereinde. Employees are offered a home loan, a debt consolidation facility and a structured housing subsidy, which helps employees to increase disposable income levels and results in higher home loan approval rates.

The total number of units built is 409 and of those a total of LA 386 units have been sold to employees.

Mogwase

To meet short-term demand and provide more options, 24 free-standing units were procured at Mogwase. A total of LA seven units have been sold to employees.

Open market

Northam also promotes home ownership by assisting qualifying employees and indirect employees to procure houses on the open market by way of a partial interest free loan amount. A total of 28 houses have been purchased on the open market.

Future plans

Northam has acquired land in Mashishing and in Northam town. Progress with Mashishing includes the municipal approval of applications, the completion of architectural designs and services agreement negotiations with the municipality. Construction work will be on tender towards the end of 2017. The Northam Extension 10 has been proclaimed and services should be completed early in F2018. The construction of 69 home ownership and rental units is also planned to start early in F2018 with completion expected by March.

End goals

The successful conclusion of the accommodation strategy, combined with Northam’s efforts to date, mean that the majority of the workforce will have access to decent accommodation opportunities in the future. The strategy will ensure that the group exceeds its Mining Charter obligations and should enhance Northam’s standing as an employer of preference.

COMMUNICATING WITH OUR EMPLOYEES

At Northam we encourage open communication. Employees are encouraged to raise issues of concern and interest via the formal and informal structures in place, including through human resources structures, line management and union structures. Relations with employees and organised labour are governed by recognition agreements and legislated conditions of employment.

We recognise that more can be done in the area of communicating directly with our employees. In F2016 Zondereinde completed a comprehensive communications review, with the aim of putting in place a formalised structure and staff to support an invigorated communications drive. In F2017 a full-time communications specialist was appointed to manage this. Mine-wide television screens are being installed in strategic places.

HUMAN RESOURCES STRUCTURES

A senior manager, tasked with overseeing the operation’s human resources function, is in place at each operation and reports to a general manager. The general managers and chief executive are ultimately responsible for the management of human capital while the SE&HR committee assumes board level oversight of the management of human capital.

The SE&HR committee, which complies with the Companies Act in terms of its social and ethical obligations, is also responsible for ensuring that employees are equitably and fairly rewarded in alignment with company standards and industry peers. It is further responsible for governance of employment contracts and the remuneration packages of senior management, ratifying their appointments, setting mandates, approving short-term incentive schemes and bonuses, and overseeing shares in line with the Northam share incentive plan (SIP).

Mine-based human resources departments are responsible for the implementation and achievement of human resource priorities, including all aspects of the Mining Charter:

• 

  Training and development

• 

  Mentorship and talent management

• 

  Recruitment and retention

• 

  Succession planning

• 

  Career plans

• 

  Employment equity programmes

• 

  Labour relations

• 

  Human resource development

• 

  Stakeholder and compliance management

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

All employees, indirect employees and suppliers have the right to freedom of association and to exercise this freedom within the bounds of the law, collective agreements and the rights of others. Employees and their elected representatives must shoulder the duties and responsibilities that pertain to this right.

Wages and other conditions of service are negotiated on an annual basis, or less frequently, as determined by the wage agreement in place. At Northam operations, unions registered with the Department of Labour, which represent at least 15% in any particular bargaining unit, receive organisational rights including:

• Access to the workplace, allowing qualifying unions to recruit members and host meetings on mine property outside of working hours
• Access to payroll deduction facilities
• The opportunity to elect employee representatives for internal disciplinary processes
• Paid leave for representatives to allow them to carry out union- related duties

When a registered union reaches a representative threshold of 33.3% within a bargaining unit, it acquires the right to bargain for that particular unit, and to reach agreement on wages and other conditions of service.

The group aims to engage in good faith to reach agreement on matters such as wages, conditions of service and other matters of mutual interest.

ZONDEREINDE

At Zondereinde, employees are divided into three bargaining units. Category 2 to 8 comprises operator level employees, Category 9 miners and artisans, and Category 10 officials. A total of LA 87% (F2016: 88%) of the workforce in these bargaining units is covered by collective bargaining agreements.

Recognised union representation at Zondereinde F2017 (permanent employees)

	Category 2 to 8		Category 9		Category 10		Category 11 to 14		Total
Complement	5 279	(%)	335	(%)	373	(%)	71	(%)	6 058	(%)
NUM	4 618	87.5	149	44.5	142	38.1	6	8.5	4 915	81.1
Solidarity	7	0.1	52	15.5	98	26.3	6	8.5	163	2.7
UASA	22	0.4	79	23.6	69	18.5	18	25.4	188	3.1
Total	4 647	88.0	280	83.6	309	82.8	30	42.4	5 266	LA 86.9

Organised labour consultation structures at Zondereinde

BOOYSENDAL

At Booysendal indirect employees comprise 90% of the workforce. Mining contracting company Murray and Roberts Cementation Proprietary Limited (MRC) and concentrator contracting company Minopex South Africa Proprietary Limited (Minopex) are currently unionised and hold regular structured meetings with recognised unions. A total of 77% (F2016: 87%) of the MRC workforce and 69% (F2016: 64%) of the Minopex workforce belongs to a union.

Recognised union representation at Booysendal F2017 (permanent employees)

	Category 2 to 8		Category 9		Category 10		Total
Complement	50	(%)	9	(%)	79	(%)	138	(%)
NUM	21	42	–	–	–	–	21	15
Total	21	42	–	–	–	–	21	LA 15

WAGE AND CONDITIONS OF SERVICE NEGOTIATIONS

Northam management continually seeks to build constructive relationships, and to avoid unnecessary work stoppages, which would inevitably have a negative impact on the group’s performance and the welfare of employees. The group has an established protocol and communication strategy in place to deal with industrial action, which includes maintaining open channels of communication with unions, employees, shareholders and investors, labour relations experts, mediators and facilitators, security services and the media.

The group also acts in compliance with the Labour Relations Act No 66 of 1995 and may use established processes, inclusive of legal relief when necessary, to bring any form of industrial action to a swift resolution. The group is committed to engage and negotiate with any union that achieves the necessary representation levels.

LABOUR RELATIONS IN F2017

Labour relations remains a challenging area for the mining industry as a whole. Northam management seeks to increase and intensify the engagement process with unions and to deal swiftly with any issues arising.

ZONDEREINDE

In July 2015, a three-year wage settlement was reached with the representative union, the National Union of Mineworkers (NUM), which has helped provide certainty and stability at this operation for a sustained period.

Both tonnages and production ounces were affected by operational reorganisation measures underground following the discharge of 357 employees after acts of violence and labour disruptions in June 2016. These measures included the reorganisation of mining teams. The mine is steadily recruiting to full capacity.

No further acts of violence took place during F2017. There were LA no strikes at Zondereinde during the year.

BOOYSENDAL

In October 2015, a three-year wage agreement was concluded between MRC and its representative unions, the Association of Mineworkers and Construction Union (AMCU), NUM and Solidarity across MRC operations. This agreement was consequently applied at Booysendal, with the ensuing stability contributing to the consolidation of the ramp-up to steady state production.

Some incidents of civil unrest, mostly minor, took place during F2017. Only one incident had a material impact when, on 6 to 8 July 2016, community activists engaged in protests and blocked roads leading to the mine. Production was affected because employees were prevented from coming to work. Other incidents were all prompted by the chronic lack of jobs in the area and included, on three occasions, the Kiwi community blocking access to Booysendal South demanding employment opportunities for the community.

There was LA a strike over production bonuses by Booysendal LHD operators and team leader operatives from 5 to 12 January 2017. A new production bonus model was agreed on and implemented.

HUMAN RIGHTS AND CODE OF ETHICS

Northam upholds the basic labour rights of the Fundamental Rights Convention of the International Labour Organization (ILO), through the implementation of fair employment practices. Our policies and practices comply with South Africa’s labour legislation and regulations. All employees are treated fairly, irrespective of origin, race or gender.

Northam’s SE&HR committee monitors support and respect for the protection of internationally-proclaimed human rights, ensuring that Northam is not complicit in human rights abuses. Systems are in place to deal with issues of discrimination and human rights breaches.

Northam’s code of ethics clearly safeguards the rights of all employees to a working environment free of discrimination on the basis of race, gender, sexual orientation, religious belief, political affiliation, age or disability. Our code of ethics is available here: www.northam.co.za/governance/policies-and-procedures

All Northam employees are expected to adhere to our code of ethics. Supervisors and managers are required to take all reasonable steps to ensure that the people for whom they are responsible are aware of and uphold the guidelines set out in the code. These steps include consistent demonstration of exemplary behaviour, activities to foster a culture in which employees understand their responsibilities and feel comfortable to raise concerns without fear of retaliation or victimisation, ensuring mandatory policies, standards and procedures are accessible and understood, and responding promptly to legitimate concerns.

The group has a whistle-blowing and ethics hotline.

SAFETY AND HEALTH

The safety and health of Northam employees is of paramount importance and takes precedence over all production objectives. We are guided by extensive legislation and regulations, notably the Mine Health and Safety Act No 29 of 1996. The company seeks to comply fully with applicable safety and health legislation, and to ensure that all employees adhere to group safety standards.

Key features of Northam’s safety and health structures and systems

PARTICIPATORY APPROACH

Northam encourages the participation of employees and management in all safety and health matters. Employees may also participate in the union’s safety and health committees through their elected officials.

Safety and health structures at Zondereinde and Booysendal

SAFETY PERFORMANCE IN F2017

All safety-related incidents are considered very seriously at Northam, and continuous efforts are made to reinforce operational standards and responsibility. The group will continue to focus on reinforcing and encouraging the correct behaviour of individuals. This will be achieved by continuous, internal and external behaviour change interventions. Measures are in place to support, encourage and coach employees to continuously conduct thorough and proper workplace hazard identification and risk assessment in order to institute proper action and withdraw when required.

Analysis of safety incidents indicates that most injuries are associated with the following activities:

• Material handling
• Falls of ground
• Trucks and tramming

Focused training and disciplinary measures manage the prevalence of behaviour-based safety transgressions. Disciplinary measures include counselling; verbal and written warnings; suspension; and dismissal. The Du Pont safety management programme was replaced by the Chamber of Mines’ recommended safety system in F2016. The Chamber’s Cultural Transformation Framework has been implemented at both operations.

Northam defines a lost time injury (LTI) as an injury which results in one to 13 days of lost time while a reportable injury (RI) is an injury which results in lost time of 14 days or more. A dressing case (DC) is defined as an injury on duty which leads to minor treatments, such as a plaster, and no lost days. Total injuries (TIs) include DCs, LTIs and fatalities. The LTI, RI, DC and TI incidence rates are based on 200 000 hours worked.

Regrettably, one fatality was reported during the year under review (F2016: no fatalities).

ZONDEREINDE

The total number of hours worked in F2017 was 16 689 118. The total number of injuries recorded was 149 and the total injury incidence rate (TIIR) was 1.79.

In November 2016, Zondereinde achieved six million fatality free shifts. However, on 24 January 2017, Mr Alexandre Macave, a loco operator with many years’ service, lost his life in an underground rail accident. The investigation into the causes of the accident has provided invaluable safety lessons.

In F2017, 11 DCs were recorded. A total of 138 LTIs were recorded, of which 94 were reportable. The primary causes of LTIs in F2017 were related to the manual handling of material and minerals, falls of ground, slips and falls, and transportation.

Overall the operation’s lost time injury incidence rate (LTIIR) was LA 1.65 per 200,000 hours worked (F2016: 1.92) and the reportable injury incidence rate (RIIR) was LA 1.13 (F2016: 1.11).

The DMR imposed 11 Section 54 safety-related work stoppages at Zondereinde during the year under review, nine relating to underground and two to surface operations.

To date, Zondereinde has applied the following Mining Industry Occupational Safety and Health (MOSH) preventative measures:

• Hearing-protection devices
• Netting with bolting
• Entry examinations and making safe
• Proximity detection system
• Falls of ground hazard identification system (FOGHIS) – equivalent to the Trigger Action Response Plan (TARP) system.

A Safety Turnaround Strategy was put in place at Zondereinde in F2017 and implemented mine-wide in order to improve communication with employees. Regular visible felt leadership visits from senior supervisors are conducted to support working to standard as a condition of employment. In addition, refresher training was given to line supervisors to coach employees on proper hazard identification and work place risk assessment.

A new safety, health, environment and risk (SHER) department has been established at the mine, reporting to the SHER manager. The SHER department is designed to facilitate the working together of all the associated functions in the interests of employee health and safety.

Zondereinde

	F2017	F2016	F2015	F2014	F2013
Fatalities	1	0	0	0	1
Lost time injury incidence rate per 200 000 hours worked	LA 1.65	1.92	1.31	1.70	1.50
Reportable injury incidence rate per 200 000 hours worked	LA 1.13	1.11	0.94	0.86	0.83
Fatal injury incidence rate per 200 000 hours worked	0.01	0.00	0.00	0.00	0.01

BOOYSENDAL

The total number of hours worked in F2017 was 6 013 511. The total number of injuries recorded was 63 and the TIIR was 2.10.

No fatalities have been recorded since inception of the mine in 2010. Booysendal achieved three million fatality-free shifts subsequent to year-end.

In F2017, 54 DCs were recorded. At total of nine LTIs were recorded of which six were reportable. The primary causes of LTIs for F2017 were related to the use of trackless mobile machinery.

Booysendal’s LTIIR was LA 0.30 (F2016 0.44) and the RIIR was LA 0.20 (F2016 0.32).

The DMR imposed one Section 54 safety-related work stoppage at Booysendal during the year under review, related to the use of trackless mobile machinery.

Compliance with standards and procedures remains a challenge. In order to mitigate this, the mine employs a high visibility of safety staff who work irregular shifts. We also conduct extensive coaching as part of our Hlokomela Tau! – Watch out for the Lion (danger)! – campaign.

The Think falls of ground initiative continued to be one of the key focus areas during F2017 and resulted in significant improvements in examination techniques. Interventions take place every Monday and Friday, involving management at all levels, to ensure that employees are entering their worksites safely. Any deviations are rectified immediately and superior performance rewarded.

Booysendal

	F2017	F2016	F2015	F2014	F2013
Lost time injury incidence rate per 200 000 hours worked	LA 0.30	0.44	0.54	0.27	0.53
Reportable injury incidence rate per 200 000 hours worked	LA 0.20	0.32	0.41	0.21	0.33
Fatal injury incidence rate per 200 000 hours worked	0.00	0.00	0.00	0.00	0.00

HEALTH PERFORMANCE IN F2017

The primary occupational health risks identified at Northam in F2017 were tuberculosis (TB), noise induced hearing loss (NIHL) and occupational lung disease. We aggressively target HIV/ AIDS and TB with emphasis on prevention, through educational initiatives and community involvement, as well as a monitored employee wellness programme, which includes the provision of antiretroviral treatment (ART). We also focus on drug and alcohol abuse, and their effects on employee performance.

NORTHAM HEALTH CARE SERVICES

We provide employees and indirect employees with an integrated and holistic health care service, for primary and occupational health, through the Platinum Health medical aid scheme.

Health care services are offered to all employees and indirect employees who belong to the scheme, and to their families. A network of doctors, specialists and dentists is contracted to the scheme. As well as localised health care, scheme members also have access to the Netcare® and Life® networks countrywide.

Programmes designed specifically for occupational health include:

• Wellness
• Medical surveillance
• Injury-on-duty management
• Occupational and chronic disease management
• Rehabilitation and back-to-work programmes
• Emergency care

Healthcare services at Zondereinde and Booysendal

HIV/AIDS

Northam has a comprehensive HIV/AIDS policy in place which covers employee care, education programmes, respects information confidentiality and promotes non-discrimination. All Northam employees have access to professional counselling and support including voluntary counselling and testing (VCT) and ART.

The Northam HIV/AIDS programme focuses on the following:

• Encouraging employees who are HIV-negative not to participate in high-risk behaviour through the mass distribution of condoms, the treatment of sexually transmitted infections (STIs) and a peer education programme
• Early detection and identification of HIV to limit high-risk behaviour among those infected and to start them on a treatment regime that can prolong healthy living (the VCT programme underpins this objective and provides the necessary counselling)
• Encouraging infected employees to participate in the wellness programme, which includes the provision of ART. Comprehensive counselling is provided to ensure that employees understand and accept the long-term implications of participating in the ART programme.

Zondereinde

Booysendal

Booysendal continued with its wellness and disease management policy and programme, an effective method to promote health and wellness among our employees and indirect employees.

Our programme:

• promotes a healthy lifestyle
• addresses chronic or life-threatening diseases such as HIV/AIDS and TB
• covers injuries which may result in a medical disability or occupational incapacity such as STIs, cancer, heart disease, chronic obstructive airways diseases, diabetes, asthma and hepatitis
• consists of a variety of activities including health education, medical screening, health coaching, weight management programmes, wellness newsletters and fitness educational information

Booysendal’s HIV/AIDS peer education group is managed by contracting company, Minopex. Training of peer educators for MRC and Booysendal employees took place and 18 employees have so far been trained. The aim is to educate employees about chronic illness, the spread of contagious diseases and prevention measures. Employees are encouraged to undergo VCT and Booysendal ensures that effective intervention, assistance and referral systems are in place. They also manage the distribution of promotional material for HIV/AIDS prevention.

VCT is done under the auspices of the wellness programme. In F2017, 733 employees were registered on the VCT programme (F2016: 319). Of these, 33 (F2016: 13) tested positive for HIV. Employees requiring treatment are referred to the relevant medical practitioner.

	F2017	F2016	F2015
Employees registered for VCT – Booysendal	733	319	459

TUBERCULOSIS

TB is a serious opportunistic infection and is the leading cause of death for people living with HIV. Northam runs a highly effective, directly-observed treatment regime, which is aligned with the TB guidelines of the World Health Organization.

Zondereinde

In F2017, 46 new cases of TB (F2016: 75) were identified at Zondereinde. A total of 44 employees remained on TB treatment at the end of F2017 (F2016: 46).

	F2017	F2016	F2015	F2014	F2013
New cases of TB – Zondereinde	46	75	111	97	70

Booysendal

In F2017, 10 new cases of TB (F2016: eight) were identified at Booysendal. Six employees (F2016: eight) are receiving TB treatment.

	F2017	F2016	F2015	F2014	F2013
New cases of TB – Booysendal	10	8	4	6	2

NOISE INDUCED HEARING LOSS

Prolonged exposure to hazardous noise causes loss of hearing acuity, which occurs gradually and is known as noise-induced hearing loss (NIHL). Excessive noise exposure is one of the most pervasive health hazards in mining.

Northam ensures that it is legally compliant by guaranteeing that the noise associated with underground equipment is contained to below 110dBA. All Northam employees are issued with PPE to ensure that exposure to noise levels above 85dBA over an extended period is limited.

Training in the use of PPE and prevention of NIHL is ongoing and forms part of the mines’ hearing conservation programme overseen by a hearing conservation committee, which meets quarterly.

Zondereinde

In F2017, 109 incidences of NIHL were reported to be investigated for compensation (F2016: 69), of which 46 were compensable (F2016: 16). This significant year-on-year increase in compensable cases is due to an increased focus in this area, an increase which is expected to continue in F2018 and thereafter plateau.

	F2017	F2016	F2015	F2014	F2013
New cases of NIHL – Zondereinde	109	69	27	20	43

Booysendal

In F2017, four new cases of NIHL were reported to be investigated (F2016: 31). One of these was found to be compensable (F2016: one)

	F2017	F2016	F2015	F2014	F2013
New cases of NIHL – Booysendal	4	31	18	41	28

OCCUPATIONAL LUNG DISEASE

Bushveld Complex rock does not contain quartz, thereby eliminating the threat of silicosis and occupational lung disease (OLD). In addition, the use of hydropowered mining equipment at Zondereinde reduces employee exposure to both noise and dust. Neither Zondereinde nor Booysendal reported any cases of silicosis or OLD.

DRUG AND ALCOHOL TESTING

Drugs and alcohol are not tolerated in the workplace. Tests are conducted on a daily basis, and particularly after any safety incident. Employees who test positive are subject to disciplinary procedures with assistance and rehabilitation offered to overcome dependency.