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| Requirements |
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Progress |
| Human resources development |
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- Pay skills development levy
- Submit workplace skills plans and annual training reports
- Provide and encourage employees to become functionally literate
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| Interface with MQA? |
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Yes, through submitting statutory reports and serving on sector skills planning committee and technical reference groups |
| Formulated a comprehensive skills audit? |
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MQA is researching the required format of a skills audit acceptable to all stakeholders. Exxaro will implement this format once available |
| Interface with education authorities, scholarships to promote mining- related educational advancement? |
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- Bridging school, bursary and professionals-in-training programmes in place
- Contributing to fund to enhance faculty remuneration at two universities offeringhigher education in ;the mining field
- Through participation in educational structures of Business Unity SA and Chamber of Mines, Exxaro contributes to transforming broader education in thecountry
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| Increasing number of learnerships in the mining industry? If so by how much? |
|
Exxaro has increased its learnerships and skills programmes significantly – to 678: 392 in engineering learnerships, 230 in plant learnerships, 40 in mining learnerships and 16 in administration/services learnerships. |
| Skills training opportunities to prepare for mine closure? |
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No mine closures. All mines have sections on post-mining training processes and plans in their social and labour plans, submitted to the Department of Minerals and Energy |
| Functional literacy and numeracy in consultation with labour? |
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- Fully company-sponsored, voluntary ABET programmes running at all mines (some since 1992)
- Currently, 2 920 employees have qualification <NQF 1 (30,7% of workforce).
- In 2008, 236 completed some level of ABET and 465 are enrolled for further ABET levels
- Financial incentive schemes for identified ABET learners implemented
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Career paths and opportunities for HDSA?
Systems for mentoring empowerment groups as a means of capacity building? |
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- Human resources development (HRD) policy in place dealing with accelerateddevelopment
- Formal succession planning and individual development plans used for all management and professional categories
- HDSA employees receive special career planning consideration and mentor support
|
Employment equity
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| Published employment equity plan andachievements? |
Employees were consulted about plans and progress is communicatedaccordingly at each business unit. |
| Targets in junior and senior management categories? |
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No specific targets for different management categories have been identified. Progress monitored against overall target of 40% HDSA in management as per mining charter. |
| Plans at management level? |
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Yes |
| Achieved baseline of 40% by 2009? |
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At 42%, Exxaro has exceeded the baseline |
| Focus overseas placement and/or training programmes on HDSAs? |
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Exxaro currently has limited international operations |
| Identified talent pool? |
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Yes |
| Fast tracking that includes high-quality operational exposure? |
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Yes |
Focus on advancement of women?
Progress to baseline of 10%? |
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Succession plan system in place to fast-track women. Exxaro Women in Mining committee established to help attract and retain women.
Women comprise 13% of workforce in core operations, excluding support positions. |
| Set and publish targets? |
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Targets set on a five-year cycle. Information published in annual report, intranetand other suitable media targeted at specific business units (eg bulletin boards,line manager communication, newsletters, e-mails, etc) |
| Migrant labour |
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| Ensured non-discrimination against foreign labour? |
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Exxaro does not discriminate against any employees, regardless of their country of birth. |
| How was this achieved? |
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A policy on non-discrimination is in place. |
| Mine community and rural |
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| development |
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| Co-operated in formulation of integrated development plans for communities where mining takes place and major labour-sending areas? |
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All interventions being implemented are aligned with the integrated development plans of involved authorities and indicated community needs. In some of our operations, social impact assessments were undertaken to identify real needs of involved communities. |
| |
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| In partnership with all governmental spheres, undertaken to develop infrastructure for these areas? |
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As part of our social and labour plan commitment, we actively assist the authorities in infrastructure development and service delivery |
| Housing and living conditions |
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| Consulted with Mine Health and Safety Council, Dept of Housing and organised labour on improving standard of housing? |
|
Yes
- Company housing policy in place, focused on home ownership. Employees
receive housing or living-out allowance to assist them in obtaining
accommodation.
- 389 employees live in hostels
- 1 336 live in single quarters
- 822 employees live in company houses
|
| Upgraded hostels, converted hostels to family units, and promoted home ownership option for mine employees? |
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Land has been made available for housing at Grootegeluk where some 800 units will be built over the next four years. |
| Established measures to improve nutrition of employees? |
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- Food services mostly outsourced to BEE suppliers
- Quality of food contractually regulated – human resources policy also stipulates
quality requirements
|
| Procurement |
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| Classified procurement into capital goods, services and consumables? |
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Policy, guidelines and systems in place to promote procurement from HDSA companies in stipulated categories of capital goods, consumables and services. |
| Given HDSAs preferred supplier status, where possible, in all three levels? |
|
Exxaro continues to give preference to companies that demonstrate HDSA involvement, development and support in ownership, management and skills development. |
| Identified current levels of procurement from HDSA companies? |
|
Exxaro has over the years tracked its performance on procurement from HDSA companies. This indicates progression from 2004 – 16%, 2005 – 24%, 2006 – 37%, 2007 – 35% (a level set to provide for the introduction of codes of good practice). Performance for 2008 was 39% against a target of 40%, influenced largely by transition to the codes of good practice. |
| Committed to a progression ofprocurement from HDSA companiesover a 3- to 5-year timeframe,reflecting genuine value-added HDSAproviders? |
|
- Kumba has had policies in place since 2002. The group is committed to bothprogression over time and to tracking its preferential procurement performanceagainst targets
- Close monitoring, tracking and stakeholder engagement continues to ensurestrong partnerships with suppliers. Major suppliers are encouraged to transform,secure company accreditation in line with the codes of good practice, butindicating their narrow based status
- Target for 2009 is set at 45%
|
| Encouraged existing suppliers to transform, eg forming partnerships with HDSA companies, where no HDSAs tender for goods and services? |
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In line with Exxaro’s future business relationships are regarded as strategic partners for transformation. These suppliers are encouraged to form partnerships with local HDSAs in areas of Exxaro operations. Transformation is also encouraged in areas of employment equity, skills development, enterprise development and employee share ownership plans |
| 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 National Empowerment Fund, Umsobomvu Youth Fund, Industrial Development Corporation and other institutions that offer capital financing. |
| Ownership and joint venture |
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Ownership by HDSAs |
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After the Kumba empowerment transaction, a new company was formed and
listed on the JSE, Exxaro Resources Limited. In terms of the empowerment
transaction, Exxaro’s only major shareholder is Main Street 333 (Pty) Ltd,
commonly referred to as BEE Holdco. This BEE entity holds 52,54% of the shares
in Exxaro. The entities that hold shares in BEE Holdco are:
- Eyesizwe SPV (55%)
- Eyabantu SPV (9,5%)
- Tiso SPV (9,5%)
- BEE Women’s SPV (11%)
In terms of the BEE Holdco relationship agreement, the BEE partners, BEE Holdco and the designated parties have agreed principles to ensure that each of BEEHoldco, Eyesizwe SPV, Eyabantu SPV, Tiso SPV and BEEtheir respective shareholders are and remain HDSAs until the final date of theagreement and therefore Exxaro remains a black-owned company. |
| Active HDSA control? |
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| HDSA ownership and control percentage? |
|
| Collective investments through ESOPS and mining dedicated unit trusts? |
|
| Passive involvement by HDSA? |
|
| Percentage of passive HDSAs involvedin the company ownership structure? |
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| Involved in production of final consumer product emanating from a mining process? |
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Base metals: Given South Africa’s (accounting for 70% of resources and 50% of demand), Exxaro has launched a business unit – Exxaro Reductants – producing reductants for this industry. |
| Identified current level of beneficiation? |
|
In the first of the group’s to Grootegeluk mine is being commissioned with char production from the first quarter 2009. |
| Indicated to what extent baseline level of beneficiation can grow? |
|
In addition to char, the plant will also produce and sell a tar product, and there is potential to use waste gas to generate electricity in future through co- generation initiatives. Staffed by highly qualified and experienced people, Exxaro Reductants has created 70 job opportunities already, which could quadruple. Growth opportunities include expansion of the char plant to supply the ferromanganese, titanium slag and platinum industries, as well as the production of market coke and hybrid reductants through briquetting and feedstock carbonisation. |
| Exploration and prospecting |
|
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| As an HDSA company, have you used support by government in exploration and prospecting endeavours? |
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No, all exploration and prospecting was self-funded using in-house technical skills |
| Institutional support. |
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| Financing mechanism |
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| As an HDSA company, have you secured finance to fund participation (R100 billion assistance by the industry) |
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Yes, facilitation was given to HDSA groups by Exxaro shareholders. (Exxaro contributes approximately R20 million) |
