exxaro

Annual report search

Governance & Sustainability

Legislative compliance/Mining charters progress

Progress against mining charter scorecard*

*Broad-based socio-economic empowerment charter for the South African mining industry

During the year, Exxaro obtained new-order mining rights for its Inyanda and New Clydesdale mines, reflecting the group’s steady progress in complying with the requirements of the mining charter.

REQUIREMENTS	PROGRESS	SECTION
Human resources development	• Pay skills development levy • Submit workplace skills plans and annual training reports • Provide training and encourage employees to become functionally literat	read more
Is there any interface with the MQA?	Yes, through submission of statutory reports and serving on sector skill planning committee and technical reference groups	read more
Have you formulated a comprehensive skills audit?	Exxaro is ensuring that individual development plans are in place for all employees. Roll-out plan is in place	read more
Have you interfaced with education authorities and are you providing scholarships to promote mining-related educational advancement?	Currently interfacing with professors to examine this element. Bridging school, bursary and professionals-in-training programmes in place	read more
Have you increased the number of learnerships in the mining industry? If so by how much?	More than 30% of engineering learnerships registered with MQA are trained by Exxaro. 408 engineering learners in the system. Additional 56 unemployed youths were trained at Collieries Training Centre with Exxaro sponsorship and have done their on-job training at Exxaro mines	read more
Have you, through the MQA, provided skills training opportunities to miners during their employment to improve their earning capacity after mine closure? What training?	Exxaro’s only mine closure to date was at Durnacol, where comprehensive reskilling and skills development programmes were initiated years before closure. This mine closure occurred well before MQA was established	read more
Have you offered every employee the opportunity to become functionally literate and numerate in consultation with labour? Demonstrate.	• Fully company-sponsored, voluntary ABET programmes running at all mines (except whereemployees are 100% literate — corporate office) • All ABET training is accredited • Screening and counselling with all ABET candidates for informed decisions about participation – trade unions included in process • Incentive scheme implemented to make ABET more attractive	read more

REQUIREMENTS	PROGRESS	SECTION
Have you implemented career paths to provide opportunities to HDSA employees to progress intheir chosen careers? Have you developed systems through which empowerment groups can be mentored as a means of capacity building?	• Human resources development (HRD) policy in place dealing with accelerated development • Formal succession planning and individual development plans rigorously used for all management and professional categories • HDSA employees receive special career planning consideration and mentor support • 77% of learners in engineering learnerships are HDSAs	read more
Employment equity Have you published the employment equity plan and achievements?	Employees consulted about plans and progress communicated to employees at each business unit and published via suitable media, eg intranet	read more
Have you established targets for employment equity in junior management category?	No specific targets for different management categories have been identified. Progress is being monitored against an overall target of 40% HDSA in management as stipulated in the mining charter	read more read more
Have you established targets for employment equity in senior management category?	As above	read more read more
Have you detailed plans for employment equity at management level?	As above. Focus of Exxaro’s employment equity plan is on management	read more read more
Have you met the baseline of 40% by 2009? State your achievement against the baseline.	Aspiring to meet the target by 2009. Employment equity plans are focused on reaching 40%, compared to the current 36%	read more read more
Do you focus overseas placement and/or training programmes on HDSAs?	Fast-tracking process includes exposure of senior management to international operations. Exxaro currently has limited international operations and there is one HDSA broadening his experience in Namibia.	read more
Have you identified a talent pool?	Yes	read more
Is there fast tracking in the company which includes high-quality operational exposure?	Yes	read more

REQUIREMENTS	PROGRESS	SECTION
Do you ensure higher level of inclusiveness and advancement of women? Have you supported the aspired baseline of 10%? Demonstrate.	Exxaro has a succession plan system in place to fast-track women. There are currently two women on the board and three on the executive committee The company is on target, with women comprising 12% of the workforce.	read more read more
Does the company set and publish targets?	The company sets targets on a five-year cycle. Information on targets is published in the annual report, on the intranet and other suitable media targeted at specific business units (eg bulletin boards, line manager communication, newsletters, e-mails, etc)	read more
Migrant labour
Have you ensured non-discrimination against foreign labour?	Exxaro does not discriminate against any employees, regardless of their country of birth.	NA
Can the company demonstrate how this was achieved?	A policy on non-discrimination is in place.	NA
Mine community and rural development		read more read more
Have you cooperated in the formulation of integrated development plans for communities where mining takes place and major labour-sending areas?	Assisted local authorities near our operations to develop integrated development plans, and participated in relevant forums.

Have you, in partnership with all governmental spheres, undertaken to develop infrastructure for these areas?	Part of the commodity businesses’ ocial and labour plans for conversion application.
	• Stakeholder engagement forums established at all business units
	• Skills and ABET provided for unemployed, skills training for government institutions, training-of trainers-programmes, capacity building
	• Partnerships with MQA to train ex-mineworkers

NA Not applicable

REQUIREMENTS	PROGRESS	SECTION
Housing and living conditions	Yes	read more
Have you consulted with Mine	• Company housing policy is being revised, focusing on home ownership
Health and Safety Council, Dept of Housing and organised labour on measures to improve the standard of housing?	• 936 employees (35%) live in affordable rental units
Have you upgraded hostels, converted hostels to family units, and promoted a home ownership option for mine employees?	• 1 277 employees bought company-owned housing
	• Bargaining-unit employees receive a housing/living-out allowance depending on their grade to assist them to obtain accommodation
Have mines established measures to improve nutrition of employees?	Part of the HIV programme
Procurement		read more read more read more
Have mines classified procurement into capital goods, services and consumables?	• Yes. Policy, guidelines and systems in place to promote procurement from HDSA companies in stipulated categories of capital goods, consumables and services

Has the company given HDSAs preferred supplier status, where possible, in all three levels?	• Preference given to black-owned and black-empowered suppliers

Have you identified current levels of procurement from HDSA companies?	An auditable system in place and performance tracked

Have you committed to a progression of procurement from HDSA companies over a 3- to 5-year time frame, reflecting genuine value-added HDSA provider?	• Policies have been developed and targets set up to 2011
	• Exxaro met its target of 35% of discretionary procurement for 2007 or R1,97 billion

Have you encouraged existing suppliers to transform, eg forming partnerships with HDSA companies, where no HDSAs tender for goods and services?	• Supports facilitation of regional and provincial collaboration as initiated by Department of Minerals and Energy

Have you undertaken to develop HDSA procurement capacity and access to DTI assistance programmes to achieve this?	• Exxaro continues to conduct needs assessments on potential suppliers and assists in areas that require development. Continual contact with SEDA on available development programmes to assist HDSAs is seen as a vital relationship for supplier development. Exxaro continues to advise emerging HDSA companies where financing is required. Referrals include the National Empowerment Fund, Umsobomvu Youth Fund, Industrial Development Corporation and other institutions that offer capital financing.

REQUIREMENTS	PROGRESS	SECTION
Ownership and joint venture
Does the company have ownership by HDSAs	Yes. Empowerment objectives achieved and exceeded in 2006	read more

Does the company have active HDSA control?	Yes

What is the company’s HDSA ownership and control percentage?	56%

Does the company have collective investments through ESOPS and mining dedicated unit trusts?	Yes	read more

Does the company have passive involvement by HDSA?	Yes

What is the percentage of passive HDSAs involved in the company ownership structure?	3%
Beneficiation

Is the company involved in the production of a final consumer product emanating from a mining process?	No. Exxaro produces intermediate or partially refined products. These are sold to various customers for beneficiation into final consumer products	N/A

Have you identified your current level of beneficiation?	Yes. Applicable to all Exxaro’s

Have you indicated to what extent they can grow the baseline level of beneficiation?	Yes. Coal beneficiation projects are detailed here and opportunities are being investigated for the downstream beneficiation of zircon, pigment and titanium metal (mineral sands commodity business)	read more

N/A Not available

REQUIREMENTS	PROGRESS	SECTION
Exploration and prospecting		read more

As an HDSA company, have you used the support by government in exploration and prospecting endeavours? Institutional support.	Yes, prospecting work done through legal framework
Financing mechanism

As an HDSA company, have you secured finance to fund participation (R100 billion assistance by the industry)	Exxaro is an investor participant in the New Africa Mining Fund established during 2003 to make portfolio investments in junior mining projects in Africa. Exxaro committed to contribute R20 million to the Fund and can be called upon at any time to make this contribution.	note 33.

	Exxaro contributed R9 million since March 2003 and was refunded a portion in 2007 resulting in a recurring investment of R1,8 million at 31 December 2007.


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