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Improving quality of life is fundamental to the
Social development
From 2008, and policy will incrementally move away from ad hoc philanthropic donations to funding or implementing longer-term, strategic programmes for measurable and lasting change within disadvantaged communities close to our operations. In each of the following focus areas, the objective is job creation and improving the quality of life within communities near our operations:
- Skills development and capacity building
- Formal education
- Enterprise development
- Health and welfare
- Environmental stewardship.
To ensure we achieve our strategy, we believe it is important to create public-private partnerships on all our projects. These partnerships are mainly informal although, during the year, Exxaro has had discussions with government on integrating formal public-private partnerships from 2009.
At each of our operations, social and labour plans were developed by engaging and consulting with relevant authorities and communities. These plans focus on communities close to our operations, the source of 70% of our workforce on average, to ensure they benefit from the mine’s presence in multiple ways.
It is group policy to actively recruit labour from local
communities wherever possible. Training initiatives
concentrate on developing the skills of community members
to fulfil the group's requirements.
In 2008, no significant fines or sanctions for non-compliance with labour laws or regulations were imposed.
% spend on socio-economic
focus areas by Exxaro Chairman's
Fund and Exxaro Foundation 2008
In 2008, Exxaro spent R19,8 million on socio-economic development projects, which includes over R5 million in donations.presence in multiple ways.
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see www.exxaro.com/case_studies
Case study - Contributing to an industry challenge
Exxaro convened a skills debate in March 2008, with panellists from Business Unity South Africa, the Chamber of Mines and its own business units. Key points from the debate included:
- Companies must focus on employment branding as opposed to company branding
see www.exxaro.com/case_studies
Developing maths and science
- Businesses must look internally – skills theft is a reality and companies that invest in skills, will steal them
- Companies can achieve much through short-term measures, such as adopting a school, while macro issues are being addressed at government level
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- Mining companies must identify and promote role models who can raise the
industry's profile at schools, and promote it as an exciting career opportunity
- Public-private partnerships are essential. The only way to change the current landscape is for schools, academia, business and government to join forces
- Businesses should second their experts to academic institutions to meet the need for top-quality training, rather than luring academics through lucrative positions
- Mining companies must attract more women to the industry file at schools, and promote it as an exciting career opportunity
- Industry needs a better database of available skills, wasting undue time looking for talent in the wrong places
- National bodies, SETAs and industry must co-ordinate their efforts to avoid the mismatch between what these bodies do and what industry actually needs.
We must adopt a country, not company, approach. The war will not be won by companies working individually, especially when they are all fighting for the same skills. |
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The planned number of jobs to be created over a five-year period in social and labour plan projects that started in 2008 will exceed 660. In addition to job creation, the projects will benefit over 4 200 people indirectly.
Selection of projects and donations: 2008 – 2012 |
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| Mine |
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Project/donation |
Beneficiaries |
| Tshikondeni |
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Alternative energy project in Guyuni (see page 88) |
3 direct jobs, 990 indirect project beneficiaries
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| Tshikondeni |
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The Sanari Entrepreneurial Centre was established in Sanari, near Tshikondeni Mine. Exxaro partnered with the National Development Agency and Department of Labour to develop a business and training centre for Sanari community ( Sanari). |
20 direct jobs, 200 indirect project beneficiaries
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| Tshikondeni |
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Masunda Citrus Farm ( Masunda). |
12 direct jobs, 120 indirect project beneficiaries
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| Tshikondeni |
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Exxaro partnered with the Department of Agriculture in the Makuya farmers’ co-operative ( Makuya). |
40 direct jobs, 400 indirect project beneficiaries
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| Corporate commitment |
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Exxaro established the chair in Business and Climate Change at Unisa to focus on carbon footprinting and climate change issues that companies should consider( Unisa). |
n/a
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| Corporate commitment |
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Exxaro assists the University of Pretoria’s project for the maintenance engineering department. |
n/a
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| Grootegeluk |
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Donation to Abbotspoort drop-in-centre near Grootegeluk Mine to care for the growing number of orphans in the area. |
18 direct jobs, 65 orphans |
| Grootegeluk |
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Each year, a sizeable investment is made in technical and civil skills development in the Lephalale area with the help of several local training institutions. Offered skills include welder/planter, ABET, maintenance operator and building. |
1 710 learners over a five-year period
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| KZN Sands |
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SME development and support centre was constructed last year and is now fully operational. Exxaro partnered with the European Union, Absa and uThungulu District Municipality to offer community members a centre where they can learn skills like art and decoration, furniture-making, pottery and jewellery production. |
350 direct jobs, 1 750 indirect project beneficiaries
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| KZN Sands |
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In Ezingeni, a hydroponics garden was started which produces tomatoes for local retailers. The garden was recently expanded in partnership with BHP Billiton( Incubating new talent). |
15 direct jobs, 75 indirect project beneficiaries |
| Grootegeluk |
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Eco-friendly housing, roadbuilding and enterprise development project. |
24 direct jobs, five home owners ,101 indirect project beneficiaries |
| Rosh Pinah |
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Due to the large influx of people to the area, the need was identified to expand the existing primary school which already accommodates 600 learners. New teachers were employed and a campaign to providea better education standard started. The improved school will make Rosh Pinah town a better place toraise children and Rosh Pinah Zinc Corporation an ideal employer. |
15 teachers, 600 learners
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| Zincor |
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In Vukuzenzele, an informal settlement near the Zincorplant in Springs, a refuse project educates residents about a healthy environment, hygiene and welfare. Refuse is collected monthly. Given its success to date, Ekhurhuleni Metropolitan Municipality will take over the project from mid-2009. |
all inhabitants of Vukuzenzele settlement
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| Arnot |
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A hydroponics garden was started near Arnot mine which will expand into a commercial farm over five years. |
95 direct jobs, 332 indirect project beneficiaries |
| New Clydesdale |
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A hydroponics garden was started where local community members and mine employees can receive training in agricultural skills. |
65 direct jobs, 227 indirect project beneficiaries |
| Leeuwpan |
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A laundry and dry-cleaning enterprise was started tomeet demand from mine workers and Delmas residents. A pick-up and delivery service is included for servicing clients further away. |
7 direct jobs, 25 indirect project beneficiaries |
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| see www.exxaro.com/case_studies
CHANGING THE FACE OF A TOWN
see www.exxaro.com/case_studies
THEIR FUTURE IS A CLICK AWAY |
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Monitoring and evaluation
We are currently implementing monitoring and evaluation software to measure progress and identify challenges. This system will be aligned with Exxaro’s internal socio-economic by June 2009. |
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