building a sustainable economy by developing people responsibility/employees.pdf · building a...

2006 CORPORATE

RESPONSIBILITY REPORT

Implats 2006 Corporate Responsibility Report | 67

EMPLOYEES Building a sustainable economy by developing people Acknowledging that mining is not a sustainable source of employment, Implats makes every effort to build local capacity in the communities within which it operates. Conscious emphasis is placed on local recruitment, thereby providing education, skills development and training opportunities that might not otherwise have been accessible to residents of these communities. It is hoped that this will empower individuals to seek alternative work opportunities once the mine ceases to operate, in turn contributing to the sustainability of the communities as a whole. The primary objective of the group’s recruitment activities is to ensure that the company attracts, recruits and/or promotes the best person for each position, so as to enable Implats’ business units to achieve the group’s business goals through maximum utilisation of its human resources. The main focus, especially at operations level, is on targeting local labour sources so as to localise the workforce as far as possible. A formal procedure for local recruitment has been developed at our Rustenburg operations and may be rolled out across the group once approved. To date, no senior management appointments have been made from the local communities serving our South African operations. Compensation and benefits All Implats employees have access to comprehensive employment benefits, including membership of a pension/provident fund, medical aid, annual leave, sick leave, overtime payment, standby allowance, accident leave, family responsibility leave and study leave. Career growth opportunities and occupational health facilities are also provided (described on pages 35 to 42) as an Employee Wellness Programme. Employees are graded in bands from A (unskilled) to F (senior management) in the Paterson Grading System. Impala Platinum contributes to various pension/provident funds on behalf of its employees. These are:

• Impala Workers Provident Fund (IWPF); • Impala Supplementary Pension Fund (ISPF); • Novel Platinum Pension Fund (NPPF); • Sentinel Mining Industry Pension Fund (Sentinel); • Mine Employees Pension Fund (MEPF). • Impala Platinum Provident Fund (Head Office) and • Impala Provident Fund (IPF) (Refineries)

The minimum contribution made by the company towards these funds is 10.5% of 100% of the total package, per employee member. The IWPF, ISPF and NPPF were established within the company, whereas Sentinel and the MEPF are mining industry funds. The IWPF is a negotiated fund between Impala Platinum and the National Union of Mineworkers (NUM). In the case of the IPF, WPF, ISPF and NPPF the Boards of Trustees comprise 50% management trustees and 50% employee trustees, elected by employees from their own ranks. A comparison between the four funds is summarised in Table 15. A total of 28,056 employees are members of these four funds, which have a total investment portfolio valued at R2,440 billion. Trustees in Sentinel and MEPF are nominated by the different mining houses and appointed from the different employee representative bodies i.e. Unions and Associations – employees thus have far less say and insight in the management of these funds. The membership eligibility to these funds varies according to the rules of the funds, as determined by the Boards of Trustees. Nevertheless, employees have, depending on their membership eligibility, a wider choice of funds when they join the company.

68| Implats 2006 Corporate Responsibility Report

Table 15: Comparative features of the IWPF, ISPF, NPPF and IPF. IWPF ISPF NPPF IPF Description Originally a

negotiated as a fund for Category 3 to 8 employees, the IPWF now also accommodates “Officials” and “Union men” categories of employees.

Established by the Company in 1984 for “Officials” and “Union men” when the rules of the mining industry funds did not allow for black/coloured employees to join the funds

Established in 2005 for “Officials” (after employees who were members of Sentinel expressed their dissatisfaction with the fund and requested the company to allow the establishment of their own “in-house” fund)

Established in 1990 for all Refineries employees who did not belong to MOPF or MEPF

Total investments R1,425 billion R175,5 million R779,7 million R57,9million Growth on investments in FY2006

28.1% 24.5% Money Market: 6.0% Stable portfolio: 20.25% Long-term portfolio: 33.5%

31.1% in managed funds

Total members 25,784 761 1,142 369 Risk benefits offered

- Death: 3 x annual salary

- Disability: 32 weeks + 2 weeks for every year service

- Temporary disability: 75% of salary

- Funeral Benefit for the member, spouse and children

This fund also allows for a housing loan.


- Disability: 2 x annual salary

- Funeral Benefit for the member, spouse and children

This fund also allows for a housing loan.


- Disability: 2 x annual salary (flexi-cover: up to 6 x annual salary)

- GLA: 2 x annual - TTD: 75% earnings for

15 months waiting period.

- PTD: 2 x annual after 6 months waiting period.

- Continental disability: 2 x annual

- Funeral benefits: Member, Spouse Child > 14: R5,000.00 Child 6 to 13: R1,500.00 Child 1 to 5: R1,000.00 Child 0 to 1: R500.00

Employee profile Head Office Our corporate Head Office employs 37 permanent employees and two contractors. Of these, 17 (45.9%) are female (including white females). At senior level there are three (15%) females, one of whom is black. The total number of HDSAs employed at our corporate Head Office is 21 (56.8%) (including white females), of whom five are at senior level (13.5%). We employ two handicapped people, one is a black female and one is a black male. The average age at our corporate Head Office is 44 years, the youngest person being 28 years and the oldest being 62 years. The average length of service is 11.6 years, with the range extending from 0.2 years to 41 years. Four employees (three black males, one white male, across the age spectrum) left Implats’ employment during the year, equating to a 10% employee turnover rate. A total of 1,348 days were taken as leave, of which 87.4% was annual leave, 9.3% sick leave, 1.6% study leave and 1.7% was for family responsibility leave. The average remuneration for B-Level officials employed at our Head Office is R125,227 and R179,744 per annum for males and females respectively (0.73:1). The remuneration of male and female staff at D- and E-Levels is on par, with the ratio for both categories being 0.99:1. At F-Level, male employees (at R2,003,000) earn marginally more than their female counterparts (at R1,841,000), a ratio of 1.08:1.

2006 CORPORATE



Table 16: HDSA incumbents by employment category, Implats Head Office, FY2006.

Designated Non-designated TOTAL

Male Female Foreign Nationals Occupational Levels

A C I A C I W White Male Male Female

Top management 1 3 4

Senior management 1 1 1 1 11 15

Professionally qualified and experienced specialists and mid-management

1 1 4 1 7

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

1 1 2

Semi-skilled and discretionary decision making

1 2 1 3 1 8

Unskilled and defined decision making 1 1

TOTAL PERMANENT 2 2 6 1 10 16 37

Non–permanent employees 2 2

GRAND TOTAL 2 2 6 1 10 18

39

Table 17: HDSA incumbents at management levels, Implats Head Office, FY2006.

Level Total

Employees

HDSAs (Incl

White Females %

Senior Management (E and F) 19 5 26.3 Middle Management (D) 7 6 85.7 Supervisory ( C ) 2 2 100.0 Semi-Skilled (B) 8 7 87.5 Unskilled (A) 1 1 100.0 Total 37 21 56.7

Table 18: Equity demographics by ethnic group, Implats Head Office, FY2005 and FY2006.

FY2005 FY2006 Actual % Actual % African 9 23.7 8 21.6 Indian 3 7.9 3 8.1 White 26 68.4 26 70.3 Coloured 0 0.0 0 0.0 Total 38 37


Table 19: Equity demographics by gender, Implats Head Office, FY2005 and FY2006.

FY2005 FY2006 Actual % Actual % Male 22 57.9 20 54.1 Female 16 42.1 17 45.9 Total 38 37

Table 20: Comparative annual wages of employees, Implats Head Office, FY2006.

Employment category

Males Females Ratio

A Nil R81,577 N/A B R125,227 R170,744 0,73:1 C Nil R235,936 N/A D R409,000 410,983 0,99:1 E R1,043,214 R1,053,523 0,99:1 F R2,003,000 R1,841,000 1,08:1

Impala Platinum Rustenburg operations A total of 26,637 people are employed directly at our Rustenburg operations, representing 90% of total group employees (FY2005: 26,373). Some 87% of employees are employed at the shafts. Of the total number employed at D and E level, 27% are HDSAs and 73% white. The majority of HDSAs, at 75%, are A, B and C-level employees (FY2005: 77.7%). Table 21: Women in mining per department, Rustenburg operations, FY2006.

Department Total Employees Current Females %

Auditing 5 2 40.0 Engineering 5,080 267 5.3 Finance & administration 388 151 38.9 Geology 44 5 11.4 Human Resources 456 74 16.2 Medical Services 201 88 43.8 Mining Production 18,372 301 1.6 Minpro 829 111 13.4 Rock Engineering 50 1 0.0 Safety and Health 95 17 17.9 Survey 450 62 13.8 Transport 443 14 3.2

Ventilation 224 14 6.3

Total 26,637 1,106 4.2

Some 94.3% (24,990) of total employees are black and originate from South Africa (79.4%) and neighbouring countries (20.6%); the majority, at 15,448, are from North West province, where the mine is located.

2006 CORPORATE



Table 22: HDSA incumbents by employment category, Rustenburg operations, FY2006.

Table 23: Equity demographics by ethnic group, Rustenburg operations, FY2005 and FY2006. FY2005 FY2006 Actual % Actual % African 24,757 93.87 19,732 74.08 White 1,564 5.93 1,520 5.71 Indian 28 0.11 13 0.05 Coloured 24 0.09 29 0.11 Foreign Nationals 5,343 20.6 Total 26,373 26,637

Table 24: Equity demographics by gender, Rustenburg operations, FY2005 and FY2006.

FY2005 FY2006

Actual % Actual %

Male 26,593 97.0 25,531 95.8

Female 780 3.0 1,106 4.2

Total 26,373 26,637

Designated Non-Designated

HDSA Male HDSA

Female White

Female Total White Male Foreign

Nationals Total Occupational Levels No % No % No % No % No % No % No %

TOTAL

Top management

1 100

- 0

- 0

1 100%

- 0%

- 0%

- 0% 1

Senior management

5 9%

1 2%

4 7%

10 18%

41 75%

4 7%

45 82% 55


79 21%

15 4%

42 11%

136 36%

228 61%

12 3%

240 64% 376


1,824 61%

89 3%

93 3%

2,006 67%

784 26%

185 6%

969 33% 2,975


2,780 74%

187 5%

44 1%

3,011 80%

224 6%

546 14%

770 20% 3,781

Unskilled and defined decision making

14,168 73%

625 3%

3 0%

14,796 76%

57 0%

4,596 24%

4,653 24% 19,449

Total

18,857 71%

917 3%

186 1%

19,960 75%

1,334 5%

5,343 20%

6,677 25% 26,637


Table 25: Employee turnover, Rustenburg operations, FY2006.

Reason FY2001 FY2002 FY2003 FY2004 FY2005 FY2006

Change of employee category (Promotion/demotion to different category)

1 1 5 4 127

Deceased 247 251 216 211 180 212

Deserted 842 675 689 683 593 560

Discharged (leave overstayed) 113 88 104 100 43 64

Discharged and repatriated 2 1 4

Disciplinary dismissal 230 147 140 187 211 68

Incapacitation 244 438 555 546 438 434

Other terminations 16 16 83 63 63

Resigned 894 703 732 454 419 418

Retired 137 86 134 93 109 78

Retrenched 168 119 67 89 142 19

Terminally ill 1 2

Transfer to Head Office/Refineries 4 4 1 2

Grand total 2,879 2,530 2,649 2,452 2,203 2,048

In service 26,850 27,975 26,686 26,382 26,098 26,637

% Turnover 10.72 9.04 9,93 9,29 8,44 7.69

Employee turnover for the year was 7.69%. The absentee rate for the Shafts, Mineral Processes and Services are 2.1%, 1.11% and 1.59% respectively. Some 60% of employees are members of the NUM while 8% are members of UASA. The remaining 32% of employees are not members of the two recognised unions or labour associations at Rustenburg operations. The average length of service on A-level is 10 years, while that at B-level is 15 years and at C and D-levels it is 12 years. The average length of service of E-F Level employees is 13 years. The majority of employees (43%) are between the ages of 36- and 45-years-old. Employees in the 26- to 35-year-old and 46- to 55-year-old age bands represent 24% and 25% of the employee base respectively. Fewer employees are in the 18- to 25-year-old and 56- to 63-year-old age bands (4% each). The average total remuneration for Senior Management (Department of Labour Occupational Levels) employed at our Rustenburg operations is R828,344 and R568,956 per annum for males and females respectively (1.45:1). The average total remuneration of Unskilled and Semi-skilled (Department of Labour Occupational Levels) range from R45,720 to R121,668 per annum, with some disparity between the payment bracket of male and female employees in the various employment bands (1.03 – 1.11:1). The entry level monthly guaranteed package for surface employees is R3,762 (package R3,365) with that for underground workers being R3,940 (package R3,515). The operations also employ 7,292 contractors, the majority of whom (79%) work underground.

2006 CORPORATE



Table 26: Comparative annual wages of employees, Rustenburg operations, FY2006.

Employment category Males Females Ratio A3 R42,330 R40,002 1.06:1 A4 R47,404 R43,040 1.1:1 B1 R51,242 R51,878 0.98:1 B2 R40,772 R58,022 0.7:1 B3 R65,861 Nil N/A B4 R77,510 Nil N/A B7 R97,575 Nil N/A

Refineries At year-end Refineries provided direct employment to 976 permanent employees and 28 temporary employees; and indirect employment to 809 employees of contractors, bringing the total number of people employed on the site to 1,813 (FY2005: 2,292). Of the operation’s permanent employees, 18% (176) are female. Of the individuals at senior management level, 30% are HDSAs (FY2005: 22.2%). The proportion rises to 48.9% and 43.2% at middle management and supervisory levels respectively (see Tables 28 and 29). A total of six people employed at Refineries are disabled: three white males, one black male, one black female and one white female. The oldest employee band is B-Upper level where the average age is 50, followed by the E-band where the average age is 44. Engineering Learners are the youngest group overall, with an average age of 25. The youngest group of employees are at D-Lower and B7 bands (average age 39), followed closely by C-Lower employees (average age 41). The remuneration of employees (A1 to B7 bands) ranges from R54,737 to R110,279.11 per annum, with some male employees generally earning more than their female counterparts in the various employment bands (see Table 27). The entry-level monthly wage, for Engineering Learners is R2,624. Table 27: Comparative annual wages of employees, Refineries, FY2006.

Paterson Grade Males Females Ratio Engineering Learner R31,494.00 R28,220.57 1.12:1 A-Lower Nil R54,737.40 N/A B-Lower R 59,883.16 R59,204.72 1.01:1 B-Upper R 75,381.88 Nil N/A B5 R 84,637.08 R83,270.83 1.01:1 B7 R107,997.62 R110,279.11 0.98:1 C-Lower R148,741.21 R136,636.00 1.09:1 C-Upper R208,269.87 R176,327.38 1.18:1 D-Lower R302,006.64 R280,406.42 1.08:1 D-Upper R475,236.97 R407,463.14 1.17:1

A salary audit was conducted during FY2006 by an independent, external auditor, as a comparative measure of the remuneration policy in place at Refineries. The report covered all levels up to C-Upper Paterson grading. It revealed that total overall packages are market-related. The situation was rectified in areas where employees were paid below the minimum. The average length of service across all employee bands is currently 14 years. D-Lower employees have the shortest length service years (eleven) while B-Lower, B5 and C-Upper employees have the longest (16 years). Employee turnover for the year was 6.65%, an increase on the 2.76% and 1.31% recorded in FY2004 and FY2005 respectively. The greatest degree of turnover was at level B-Lower (1.164%) as well as C-Lower and B7 (1.43%). Female employee turnover for the year was 0.92%, while that for male employees was 5.64% (see Table 32). Absenteeism levels are insignificant.


Union membership at Refineries reflects representation by two unions: National Union of Mineworkers (NUM: 58%) and United Association of South Africa (UASA: 26%). Approximately 16% of employees are not affiliated to any union. Table 28: Women in mining per department, Refineries, FY2006.

Department Total Employees Current Females % BMR 499 49 9.82 PMR 325 56 17.23

IRS 10 5 50.00 SHEQ 28 15 53.51 Human Resources 27 13 48.14

Finance & administration 60 29 48.33

Protection Services 7 2 28.60 Sales administration 4 1 25.00

Corporate administration 3 1 33.30

Technical 13 5 38.46 Total 976 176 18.03 Table 29: HDSA incumbents by employment categories, Refineries, FY2006.

Designated Non-designated TOTAL

Male Female Foreign Nationals Occupational Levels

A C I A C I W White Male Male Female

Top management 0 0 0 0 0 0 0 1 0 0 1

Senior management 1 1 1 0 0 0 0 6 0 0 9


14 0 7 3 1 6 11 51 2 1 96


86 4 3 17 1 1 29 167 1 1 311


401 1 1 76 0 0 25 42 10 1 559

Unskilled and defined decision making

0 0 0 0 0 0 0 0 0 0 0

TOTAL PERMANENT 502 6 14 96 2 8 65 267 13 3 976

Non–permanent employees 18 0 0 7 0 0 4 1 0 0 28

GRAND TOTAL 518 6 14 103 2 8 69 268

13 3 1,004

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Table 30: Equity demographics by ethnic group, Refineries, FY2005 and FY2006.

FY2005 FY2006 Actual % Actual % African 611 61.72 615 63.01 Indian 24 2.42 22 2.25 White 347 35.05 331 33.91

Coloured 8 0.81 8 0.82

Total 990 976

Table 31: Equity demographics by gender, Refineries, FY2005 and FY2006.

FY2004 FY2005 Actual % Actual %

Male 828 83.64 800 81.97

Female 162 16.36 176 18.03

Total 990 976

Table 32: Employee turnover by age group and gender, Refineries, FY2006.

Age group (years) Gender Turnover In service % Female 3 55 5.45 Male 12 122 9.84 20 to 30

Total 15 177 8.47 Female 5 53 9.43 Male 14 180 7.78 30 to 40

Total 19 233 8.15 Female 0 42 0 Male 16 379 4.22 40 to 50



Total 6 7 85.71 Female 8 176 4.55 Male 57 800 7.13

Totals Total 65 976 6.65 Marula Platinum At year-end, Marula Platinum employed a total of 1,797 people directly plus a further 576 people indirectly (contractors’ employees), giving a total head count at the operation of 2,373. Of the direct employees, 91% are HDSAs and 6.9% are female (see Tables 33 and 34). Some 72.7% of the workforce is sourced from the immediate surrounding area of the operation (see Migrant Labour on pages 81 and 82). Both Marula Platinum and its main contractor, Minopex, achieved their targeted actual numbers of HDSA in management (including and excluding white women) as well as their women in mining and women at the mine targets, as detailed in the operations’ SLP.


Table 33: Equity demographics by gender, Marula Platinum, FY2005 and FY2006.

FY2005 FY2006

Actual % Actual %

Male 1,077 97.4 1,671 93.0

Female 29 2.6 126 7.0

Total 1,106 1,797

Table 34: Equity demographics by ethnic group, Marula Platinum, FY2005 and FY2006. FY2005 FY2006

Actual % Actual % African 992 89.7 1,638 91.2 White 112 10.1 157 8.7 Indian 1 0.1 1 0.05

Coloured 1 0.1 1 0.05

Total 1,106 1,797

Table 35: HDSA incumbents by employment category, Marula Platinum, FY2006.

Designated Non-designated

Male Female White Male

Foreign Nationals Occupational Levels

A C I A C I W W Male Female

TOTAL

Top management 0 0 0 0 0 0 0 0 0 0 0

Senior management 0 0 0 0 0 0 0 4 0 0 4


3 0 1 0 0 0 2 21 0 0 27


72 1 0 5 0 0 4 108 13 0 203

Semi-skilled and discretionary decision making 304 0 0 15 0 0 7 5 2 0 333

Unskilled and defined decision making 1129 0 0 93 0 0 0 7 1 0 1,230

TOTAL PERMANENT 1,508 1 1 113 0 0 13 145 16 0 1,797

Non–permanent employees 0 0 0 0 0 0 0 0 0 0 0

GRAND TOTAL 1,508 1 1 113 0 0 13 145 16 0 1,797

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Table 36: Women in mining per occupational category, Marula Platinum, FY2006.

Occupational category Total Employees Current Females % Legislators, senior officials, managers and owners managers 11 0 0 Professionals 23 6 26.1 Technicians and associated professionals 74 2 2.7 Clerks 26 18 69.2 Service workers, shop and market sales workers 10 2 20.0

Craft and related trade workers 141 0 0 Plant and machine operators and assemblers 250 5 2.0 Labourers and related workers 1,248 91 7.3 Apprentices and section 18 learners 14 2 14.3

Total 1,797 126 7.0 Table 37: HDSA incumbents at management levels, Marula Platinum, FY2006.

Level Total Employees HDSAs (Excl.

White Females) % HDSAs (Inc. White

Females) %

Senior Management (E) 4 0 0 0 0.0

Middle Management (D-Upper) 7 2 28.6 2 28.6 Junior Management (D-Lower) 20 2 10.0 4 20.0

Total 31 4 12.9 6 19.4 Marula Platinum took over operations from contractor mining in December 2004. This resulted in the operations recruiting the majority of employees as from this date. The longest length of employee service is therefore less than two years. Only one union has signed a recognition agreement with Marula Platinum, namely the National Union of Mineworkers (NUM). Some 57.9% of employees are members of NUM. As reflected in Table 38, male remuneration packages in general are higher than that of females in the different Paterson grading levels. Female packages are higher than that of their male counterparts in the B2, C3 and D1 grading levels only. The operations also employ 576 contractors.


Table 38: Comparative annual wages of employees, Marula Platinum, FY2006.

Paterson Grading Males Females Ratio A3 R34,602 R34,525 1.002:1 A4 R39,065 R37,664 1.04:1 B1 R52,388 R47,364 1.1:1 B2 R47,110 R51,470 0.92:1 B3 R58,726 NIL N/A B4 R68,344 R65,965 1.04:1 B5 R71,148 R68,964 1.03:1 B6 R67,248 NIL N/A B7 R88,395 R74,745 1.18:1 C1 R106,599 R98,916 1.08:1 C2 R130,088 R124,152 1.05:1 C3 R132,360 R136,304 0.97:1 C4 R204,240 R138,456 1.48:1 C5 R220,942 R198,456 1.11:1 D1 R260,607 R262,272 0.99:1 D2 R392,917 NIL N/A D3 R427,848 NIL N/A D4 R433,423 NIL N/A

The majority of employees (639) are in the 30- to 39-year-old age bracket, with the 60- to 69-year-old bracket numbering the least at 3. Employee turnover for the year was 11.6% (see Table 39), with the highest turnover volume (33.3%) being in the retirement bracket (i.e. older than 60 years), followed by 40- to 49-year-olds (16.1%) and 30- to 39-year-olds (12.5%). Female employee turnover for the year, at 3.2%, was much lower than that for male employees (12.2%). Table 39: Employee turnover by age group and gender, Marula Platinum, FY2006.

Age group (years) Gender Turnover In service % Female 2 49 4.1 Male 38 528 7.2 18 to 29





Total 1 3 33.3 Female 4 126 3.2 Male 204 1,671 12.2

Totals Total 208 1,797 11.6

Zimplats A total of 871 people were in the direct employ of Zimplats at year-end (FY2005: 743), with a further 3,190 people being indirectly employed via various contractors bringing the total workforce headcount to 4,061. During the course of the year, 19 employees were dismissed, the contracts of another 45 employees were terminated and three people passed away, collectively resulting in an employee

2006 CORPORATE



turnover rate of 7.7% (FY2005: 9%) (see Table 40). The highest turnover occurred in the 50- to 60-year-old age band (13.6%), and was lowest in the 20- to 30-year age band (4.3%). Table 40: Employee turnover by age group and gender, Zimplats, FY2006. Age group (years) Gender Turnover In service %

Female 1 10 10 Male 14 336 4

20 to 30

Total 15 346 4.3 Female 0 10 0 Male 35 329 10.6

30 to 40

Total 35 339 6.3 Female 0 1 0 Male 15 160 9.3

40 to 50

Total 15 161 9.3 Female 2 3 66.7 Male 1 17 5.9

50 to 60

Total 3 22 13.6 Female 0 0 0 Male 0 1 0

60 to 70

Total 0 1 0 Female 3 24 12.5 Male 65 847 7.6

Totals

Total 67 871 7.7 Of the 30 people at senior management level, 22 are black (73%) and the balance white. The gender split at this level is 97% male, 3% female. About 27% of Zimplats’ workforce is sourced from the immediate surrounding area of the operation. Approximately 84% of the workforce belongs to the National Employment Council (NEC) and 15% are affiliated to the Associated Mine Workers of Zimbabwe. The company contributes 100% of permanent employees’ medical aid contributions, which cover the employee, his/her spouse and two children. The company also pays 5% of basic salary towards a pension fund for all permanent employees, with the employee paying an equivalent amount. An additional, voluntary contribution of up to 10% of their basic salary can also be paid into the fund. Permanent employees are paid a housing allowance equivalent to 20% of basic pay. Zimplats pays well above the minimum basic salary set by the NEC for the Mining industry, as shown in Table 41. (Note that the NEC covers employees in grades A1 to C4 only). Table 41: Zimplats salaries relative to NEC guidelines.

Grade % Zimplats salaries above NEC A3 205 B1 234 B2 268 B3 302 B4 401 C1 485 C2 558 C3 693 C3 670

Male and female employees are paid the same wages. There is no discrimination by gender. Mimosa At year-end, Mimosa employed a total of 1,510 people directly plus a further 130 people indirectly (contractors’ employees), giving a total head count at the operation of 1,640. The bulk of employees


(722 or 47.8%) are from the Midlands province, where the organisation is situated. A further 14.2% hail from Mashonaland (west, east and central) and 27.7% from Masvingo province. Some 1,489 people (91.35% of the workforce) at Mimosa fall under the collective bargaining agreement for the mining industry in Zimbabwe. Mimosa embraces employees’ right to freedom of association with relevant trade unions and also to appoint workers’ representation. Labour turnover is predominantly male, in the 31- to 40-year-old age group, as indicated in Table 42. All full-time employees participate in a performance-related bonus scheme. Other benefits include participation in the Mining Industry Pension Fund (contributions are split equally between Mimosa and the employee); group life assurance and group accident insurance with death benefits ranging from two to three years’ basic salary; and IGI funeral assistance (contributions are split equally between Mimosa and the employee). Membership of two medical aid schemes is available: one for senior employees and NEC-graded employees respectively. Lower level employees contribute 8% of basic pay as medical levy while senior employees are on a Medical Aid Scheme, on a 50/50 basis with the company. In addition, employees receive a housing allowance equal to 10% of basic salary. Lower-level and semi-skilled employees have the option to participate in a home ownership scheme, with minimum conditions for eligibility. Skilled and senior-level employees stay in company accommodation (for additional detail, refer to page 84).

Table 42: Employee turnover by age group and gender, Mimosa, FY2006.

Age group (years) Gender Turnover Female 0 Male 4 20 to 30

Total 4 Female 0 Male 14 31 to 40




Total 0 Female 0 Male 21

Total Total 21 Managerial staff participates in a company vehicle scheme. Vacation leave is provided, ranging from 30.4 to 36 days a year, depending on seniority; and an annual leave bonus is paid, equivalent to leave days accrued. Labour legislation in Zimbabwe prescribes equal pay for equal work irrespective of gender, such that there is no discrimination against women in employment positions. Entry-level wages are determined by the collective bargaining agreement negotiated by the NEC. Mimosa pays well above the minimum basic salary set by the NEC, as detailed in Table 43.

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Table 43: Mimosa salaries relative to NEC guidelines.

Grade % Mimosa salaries above NEC

12 250

11 223

Class 2 86

9 100

7 71

6 1502

5 48

4 40

3 40

2 40

1 40 Employment equity Implats has submitted its Employment Equity Plan (EEP) annually to the Department of Labour (DOL) since 2001. The Implats EEP outlines specific strategies to comply with the Mining Charter’s requirements in terms of HDSAs in management positions (40%) and women in mining (10%) by 2009. These include an employment equity framework, developed in consultation with employee representatives; identifying talent pools among HDSAs and fast-tracking these individuals; and the determination of targets for forthcoming years. Employees have also been sensitised regarding the advantages of instilling a culture of diversity in the workplace. An updated EEP was completed in June 2005, reflecting the group’s achievements to date and its revised plans. As previously, the group’s goals in this regard have been communicated openly to all employees via notice boards and other forums at our operations. To accelerate the pace of employment equity within the group, Transformation Steering Committees have been established at all operations, with responsibility for ensuring employment equity progress. Marula Platinum’s employment equity efforts are aligned with those of Impala Platinum and comply with the Employment Equity Act, the MPRDA and the Mining Charter. Likewise similar initiatives will be implemented to accelerate the pace of employment equity. Migrant labour Implats subscribes to ILO conventions, which accord foreign and migrant workers equality before the law. Our group policy is to reduce the number of migrant workers by focusing on local recruitment i.e. employees living within a radius of 60 kilometres of our operations. Some 5,478 migrant labourers (defined as individuals who are engaged in a paid activity in a country of which they are not nationals) are currently employed at Impala Platinum’s Rustenburg operations, accounting for 20.6% of the workforce (FY2005: 23%). The foreign labour component at Refineries is negligible (2.25%). Approximately 88% of the workforce at Marula Platinum comprises local residents (i.e. they reside within a 60 kilometer radius), the balance coming from other parts of South Africa. Only 0.4% of the workforce at Marula Platinum is foreign labour.


Table 44: Breakdown of major labour-sending areas, Impala Platinum and Marula Platinum, FY2006.

Rustenburg operations Refineries Marula Platinum Area Actual % Actual % Actual % Eastern Cape 3,041 11.5 54 5.5 99 5.5 Free State 454 1.7 19 1.9 29 1.6 Gauteng 679 2.6 663 67.9 25 1.4 KwaZulu-Natal 360 1.4 61 6.3 37 2.1 Western Cape 1 0.0 0 0 0 0 Mpumalanga 118 0.4 39 4.0 252 14 North West 15,566 58.3 21 2.2 39 2.2 Limpopo 238 0.9 88 9.0 1,308 72.7 Northern Cape 702 2.6 6 0.6 6 0.3 Swaziland 193 0.7 4 0.4 1 0.1 Botswana 488 1.8 4 0.4 1 0.1 Mozambique 2,243 8.5 2 0.2 2 0.1 Lesotho 2,554 9.6 12 1.2 1 0.1 Total 26,637 976 1,800 An estimated 99% of all employees at Mimosa are Zimbabweans by birth, but come from diverse cultural backgrounds. The remaining 1% of the workforce is of Malawian, Zambian or Mozambican origin. Housing and living conditions Implats believes that its workforce (including that of its contractors) has the right to reside in decent housing, which is of an adequate size and serviced with basic infrastructure in terms of water, sanitation and electricity, in line with the Constitution of South Africa. The group acknowledges its responsibilities in this regard by providing and/or facilitating suitable employee accommodation that allows employees to reside with their families in a stable, healthy and secure environment within commuting distance (defined as a 60 kilometre radius) from their place of work. Impala Platinum A housing policy, which includes a draft accommodation strategy, has been implemented at operations level, and is available on Implats’ website. In broad terms, the policy provides a framework for actively promoting home ownership and assisting employees to become homeowners; improving the living standard of employees and ultimately eliminating single sex accommodation (i.e. hostels); and preventing and/or discouraging informal settlement in the company’s operational areas. Several strategies are in place to achieve these ideals, namely: • Local recruitment – In addition to fulfilling employment equity targets, recruitment activities focus

on targeting local labour sources so as to localise the workforce as far as possible (refer to Migrant Labour on pages 81 and 82).

• Downscaling hostels – A sizeable portion of our labour force, especially those employed by our Rustenburg operations, is migrant and will thus continue to need single accommodation (i.e. hostels) for the foreseeable future. Three of the four hostels at Rustenburg operations continue to house labourers, with the fourth hostel being used by contractors’ employees. The occupant numbers at these hostels is declining year-on-year, in parallel with the reduced demand for such housing and a concomitant increase in use of various home ownership schemes (see Figure 15). Targets are in place to reduce hostel occupancy to zero by 2016. Likewise, the hostels currently in use at Marula Platinum will be phased out once alternative accommodation is available.

2006 CORPORATE



Figure 15: Hostel occupancy, Rustenburg operations, FY1992 and FY2000 to FY2005.

• Partnering local housing developers and participating in local economic development – Both

Rustenburg operations and Marula Platinum work with local government, landowners and, where necessary, financial institutions, to extend the low-cost housing projects in their respective areas. In the Rustenburg area, for example, the company has committed funds totalling R200 million over the next five years as collateral for a project that will add 5,000 houses to the stock pool. The planned roll out is detailed in Table 45.

Table 45: Planned roll out of low cost housing units in Rustenburg, FY2007 to FY2011.

• Home ownership scheme – As part of our participation in the development of local housing stock,

the Rustenburg operations and Marula Platinum aim to assist more employees become homeowners by facilitating employee access to appropriate finance (through financial institutions) for purchasing stands or housing stock within the formal sector. Impala Platinum also has a scheme in place which provides collateral for employees who want to buy property. Marula Platinum intends introducing a similar scheme for its workforce in the new financial year.

• Upgrading company houses – Although the provision of company housing for senior management has ceased and the formerly company-owned houses have been sold, the Rustenburg operations have retained a limited stock of company houses. A budget has been approved to invest R15 million over the three years to FY2008 in upgrading these houses and 67 have already been upgraded.

Marula Platinum At Marula Platinum, interim accommodation has been provided for supervisory level employees (and above) and their families in a park-home village at Steelpoort, some 40 kilometres from the mine. Permanent single quarters are also provided for employees on the mine property. A total of 45 housing units are under construction at Burgersfort for supervisory level employees and above, and the first

Year No. of houses to be built 2007 500 2008 500 2009 1,000 2010 1,500 2011 1,500 Total 5,000

21,119

12,933 12,928 13,015 12,523

9,941 9,6008,700

0

5,000

10,000

15,000

20,000

25,000

FY1992 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006


16 units have been completed and occupied by qualifying Marula Platinum supervisors. A breakdown of accommodation utilised at Marula Platinum appears in Table 46. Table 46: Summary of accommodation utilised by Marula Platinum employees. Description of housing type Number of employees

residing Percentage of employees

residing Private housing - Own or rented 1,679 93 Company single quarters accommodation at Marula Platinum

39 2

Company houses rented 82 5 Total 1,800 100 Zimplats At the moment, Zimplats provides accommodation to employees from three different locations, namely Norton which is some 35 kilometres east of SMC, Chegutu which is 35 kilometres to the west of SMC, and Turf Village at Ngezi. Currently, Norton has 55 flats, housing mainly employees graded C3 to D-Lower while in Chegutu there are 69 houses occupied by employees graded C3 to D-Higher. As part of the expansion programme at Ngezi operations, 181 houses were built at Turf Village and these are currently occupied by employees ranging from Underground Operators to Shift Bosses. An additional 715 houses will be built to accommodate employees who will be engaged to work at Portal 1 and 4, and the concentrator. Transport to and from work is provided to all employees staying in company accommodation. The development at Turf Village has transformed the local rural community into a semi-urban set up of which Zimplats and the local community are very proud. There is clean water reticulation to the houses and sewer and electricity reticulation. During construction of Turf Village, local people benefited from being employed by the contracting companies. Mimosa Mimosa’s policy is to provide housing for all its employees. Some 1,357 employees stay in Zvishavane town, about 32 kilometres from the mine, while others live in the villages near the mine. An estimated 263 employees live in company-provided accommodation at the mine. Transport to and from work is provided to all employees. Mimosa also operates a Home Ownership Scheme for lower-level employees in terms of which the company builds houses and sells the dwellings to eligible employees at affordable prices. Since the Home Ownership scheme was started in 1999, 585 employees have benefited from the initiative. Another 347 housing units are currently under construction in Zvishavane town. Nutrition provided to employees Implats’ social strategy includes an objective to reduce the utilisation of its hostels which, in time, will diminish the group’s ability to directly influence the diet and thus the nutritional in-take of its workforce. The group nevertheless recognises the importance of adequate nutrition to the overall health and welfare of the workforce and has therefore introduced a nutrition programme designed for the specific benefit of those employees who continue to make use of single-quarters accommodation and who therefore receive three meals a day. A new catering services provider was introduced in September 2004 and the nutritional value of daily menu was adjusted upwards from 14,500 kilojoules to 17,500 kilojoules at an additional cost of R4 million per annum. This was implemented in December 2004 and is reviewed annually by a dietician. Marula Platinum has only an indirect influence on the diet of the workforce, following the closure of the hostels at the mine. Wellness and healthy eating nevertheless form part of Marula Platinum’s HIV/AIDS programme. Mimosa recognises that the work involved in mining is physically strenuous work and therefore provides buns and a high-energy drink (Mahewu) to all underground staff. The scheme is yet to be extended to cover employees in other departments.

2006 CORPORATE



Human resource development Social and Labour Plan As required by the MPRDA, Impala Platinum and Marula Platinum have submitted Social and Labour Plans (SLPs) to the DME in support of those companies’ applications for conversion of their mining licences. Essentially a comprehensive Human Resource Development (HRD) programme in each case, the SLP includes employment equity plans and local economic development programmes, as well as associated action plans for the next five years. The primary objectives of the SLPs are to: • Promote employment and the social and economic welfare of all South Africans; • Contribute to the transformation of the mining industry; and • Ensure that holders of mining or production rights contribute to the social and economic

development of the area in which they operate, as well as the development of those areas from which the majority of the workforce is sourced.

These ambitions are incorporated in the group’s commitments to: • Career paths for our major disciplines; • Mentorship for employees and empowerment groups; • Internships and bursary plans; • An employment equity plan; • Local economic development plans; and • Providing Adult Basic Education and Training (ABET) and portable skills training to employees. Importantly, the SLPs document each applicant’s Life-of-Mine Plan, which will be used as a framework for developing our training and development strategies in terms of the various mines’ long- and short-term production needs. HRD programme The HRD Programme for Implats’ South African operations (i.e. Rustenburg operations, Refineries, Marula Platinum and the corporate Head Office) is derived from the group’s annual HR strategic planning process and takes cognisance of the company’s needs in terms of its business plan (i.e. production and sustainability needs with regards to human resources), prevailing legislation, as well as community and environmental perspectives. The focus areas include:

• The Mining Charter • The Social and Labour Plan (SLP) • Local Economic Development (LED) Programmes • Company production and sustainability needs • Workplace Skills Plan (WSP)

All permanent employees (and employees of contractors) are given access to our HRD Programmes, facilitated or managed by either the operations or the contracting companies. Timeframes and targets are established for each HRD Programme and progress is reported annually. The main activities within the overall HRD Programme include core training (such as mining, metallurgy and engineering skills), functional literacy and numeracy, training and education (embracing learnerships and skills development), portable skills, career paths and mentorship (including talent management), internships and bursaries. These activities are well developed within Impala Platinum and continue to evolve at Marula Platinum. All of Impala Platinum’s training venues (of which there are ten, including the training facilities at Refineries) are accredited as training providers by the Mine Qualifications Authority (MQA). Functional literacy and numeracy ABET programmes have been in place at both our Rustenburg operations and Refineries since 1993. These programmes are offered as part of our overall HRD strategy, reflecting the priority placed on


numeracy and literacy skills in Impala Platinum’s WSP. Our goal is to develop the educational base of our workforce by giving all employees the opportunity to become functionally literate and numerate. ABET programmes are offered as full-time and part-time courses, to allow for the involvement of workers employed at different times. All our training venues and facilities are accredited with the MQA; and all our ABET programmes are approved by the Education and Training Development (ETD) Sector Education Training Authority (SETA). Impala Platinum currently employs twelve full-time ABET facilitators, eight of whom are based at our Rustenburg operations and the other four at Refineries. All our ABET facilitators are qualified trainers in their respective fields, as well as being qualified assessors registered with the MQA. Four facilitators are also qualified moderators at the MQA. In addition, all our ABET facilitators comply with ISO 9000 requirements. The following ABET courses are currently available:

• Pre-ABET: Foundation Level; Breakthrough to literacy • ABET Level 1: Communication and Numeracy • ABET Level 2: Communication, Life Orientation and Numeracy • ABET Level 3: Communication, Life Orientation, Natural Science and Numeracy • NQF Level 1: Introduction to Mining and Mineral Sector

All ABET training is conducted in English as directed by the MQA SETA, supplemented by informal instruction in the language of choice (notably in the Pre-ABET course). Awareness of these programmes is ensured through verbal communications during our new person and ex-leave induction programmes; as well as through relevant community forums and employee representative structures. A comprehensive marketing programme is also in place within the workplace and at Impala Platinum’s hostels. Impala Platinum More than 18,961 Impala Platinum employees have attended ABET courses since 1993, the majority accommodated at the dedicated ABET centres developed at both the Rustenburg operations and Refineries. Successful completion of these courses facilitates access to further skills training and development opportunities, and possibly career advancement. Impala Platinum aims to train 800 employees in functional literacy and numeracy a year so as to raise the proportion of the workforce that is functionally literate and numerate to 35.6% by FY2009. Rustenburg operations The ABET programme at our Rustenburg operations aims to increase the volume of full-time training on ABET Level 1, ABET Level 2, Level 3 and NQF Level 1 (part-time on Breakthrough to Language, Pre-ABET, ABET Levels 1 to 3) as a mechanism to raise the overall education levels of the organisation and thereby to reach a 70:30 demographic ratio as a resource for career progression. With this in mind, plans are also in place to increase the full-time learner intake by 50% (from 80 to 120 employees per intake), which will also progress the functional literacy rate of the composite employee base from 32.5% to 35.6% over the next five years. The spend on ABET training will rise concomitantly from R6.8 million to R10.3 million a year. A total of 852 employees attended ABET courses during FY2006 (FY2005: 772) at a cost of R4,8 million, as detailed in Table 47. This brought the estimated levels of functional literacy and numeracy at Rustenburg operations to 22%. Close on 250 employees also completed introductory computer classes during the year. Refineries Refineries trained 98 employees in ABET during the year (see Table 47). A graduation ceremony was held on 26 May 2006 and 112 certificates were issued to 77 employees. A five-year strategy has been developed, which aims to reduce the level of illiteracy at Refineries to 7% by 2009.

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Table 47: ABET enrolment, Impala Platinum, FY2006.

Course Rustenburg operations Refineries Pre-ABET 140 0 ABET Level 1 215 19 ABET Level 2 251 43 ABET Level 3 221 24 ABET Level 4 126 6 NQF Level 1 63 6 Marula Platinum A comprehensive ABET strategy, targeted at the operations’ own mining and process (contractor) employees, has been developed and will commence from August 2006. Courses on a full-time or part-time basis will be available for ABET Levels 1, 2, 3 or 4. An initial skills audit was conducted at the mine with a more comprehensive skills audit to follow to ascertain the total workforce’s skills levels at Marula Platinum. Based on the initial skills audit conducted, the targeted enrolment figures to reduce illiteracy from 31% to 19% over the next five years are indicated in Table 48. Table 48: Five-year targets for ABET enrolment, Marula Platinum, FY2007 to FY2011.

FY2007 FY2008 FY2009 FY2010 FY2011 Total

ABET Level

Base

line

Liter

acy

Le

vel

Cou

rse

Exp

ecte

d En

rolm

ents

% Il

liter

acy

Leve

l

Exp

ecte

d En

rolm

ents

% Il

liter

acy

Leve

l

Exp

ecte

d En

rolm

ents

% Il

liter

acy

Leve

l

Exp

ecte

d En

rolm

ents

% Il

liter

acy

Leve

l

Exp

ecte

d En

rolm

ents

% Il

liter

acy

Leve

l

Exp

ecte

d En

rolm

ents

( %

Illit

erac

y Le

vels

FT 30 45 45 45 165 ABET Level 1

PT 0 0

FT 45 45 ABET Level 2

PT 15 15 15 15 60

FT 45 45 ABET Level 3

PT 15 15 15 15 60

FT 30 45 45 45 165 ABET Level 4

PT 30 30

Totals

69%

FT 60

30%

90

27%

90

24%

90

21%

90

19%

420

19%

PT 30 30 30 30 30 150

Zimplats Literacy levels are high at Zimplats, with most employees fluent in reading and writing English. Zimplats has a minium target employment level of education whereby the majority of employees are required to have at least four years of secondary education. Mimosa Literacy levels at Mimosa are also generally high, with 60% of employees having completed primary school education and the remainder having completed secondary schooling also. Employees who express a desire to improve their performance are encouraged to enrol with the Adult Literacy of Zimbabwe (ALOZ) programme.


Training and education The HRD Programme for Implats’ South African operations (i.e. Rustenburg operations, Refineries, Marula Platinum and the corporate Head Office) takes cognisance of the company’s needs in terms of its business plan (with regard to human resources), prevailing legislation, as well as community and environmental perspectives. The focus areas include:

• The Mining Charter • The Social and Labour Plan (SLP) • Local Economic Development (LED) Programmes • Company production and sustainability needs • Workplace Skills Plan (WSP)

All our South African operations adhere to Section 101 of the MPRDA and ensure that all permanent employees on our mines, be they mine or contractor employees, have access to HRD Programmes, whether facilitated or managed by either the mine itself or by the contracting companies. Impala Platinum Core business training is undertaken to develop mining, engineering and plant-related competencies, at both Rustenburg operations and Refineries. Ex-leave refresher training is also undertaken in critical areas to ensure optimum performance of all employees. The total number of people trained in these fields during FY2006 amounted to 22,309. Table 49: Core business training enrolment, Impala Platinum, FY2006. Course Rustenburg operations Refineries Engineering 1,473 20 Metallurgy 650 891 Mining 2,452 - Ex-leave skills training 13,823 - Generic engineering & metallurgy 3,911 - Total 22,309 911 Rustenburg operations An integrated Talent Management Model is used to facilitate comprehensive HRD training and career progression among the workforce. Impala Platinum is an accredited Training Provider through the MQA, ensuring quality through the ISO 9001: 2000 accreditation and moderation process. All training officers and instructors are registered Assessors. An Integrated WSP, developed for Impala Platinum and Marula Platinum, has been approved by the MQA and implemented. Expenditure on skills development training at Impala Platinum amounted to R104 million in FY2006 (FY2005: R138 million), which equates to 4.1% of the payroll. The target is to spend 5% of payroll on skills training and development from FY2007 onwards. In total, 20,139 employees at our Rustenburg operations were trained during the year at an average of 9.6 man-days each, giving a total number of training man-days for FY2006 of 194,719 (see Table 50).

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Table 50: Key skills development and training statistics, Rustenburg operations, FY2006. Occupation Category Man-days Number trained

Legislators, senior officials, managers 333 98

Professionals 601 106

Technicians & associated professionals 13,959 501

Clerks & administrative workers 261 54

Services & Sales Workers 379 34

Skilled workers, craft & related trades 9,385 1,615

Plant & machine operators & assemblers 31,948 1,869

Labourers & elementary occupations 137,853 15,862

Total 194,719 20,139

Rustenburg operations, through its active participation in the MQA Learnership programme, supports the Department of Labour’s learnership programmes, which are geared towards ensuring that participants receive not only accredited training in the theory behind chosen disciplines, but also benefit from practical experience in the mining workplace. The number and type of learnerships offered each year is dictated by the annual skills audit, which is informed by the varying business needs, replacement plans, labour turnover, pensioners and so on. Every effort is made to ensure a 70:30 ratio in respect of HDSA participation in the learnership programme, with particular emphasis being placed on recruiting women into the engineering learnerships. Table 51: Learnership Programmes at Rustenburg operations, FY2006.

FY2006

Name of Learnership Programme

Length of Learnership Programme

WSP Skills Priority

No. of New Enrolments

Current Participants

Total Enrolments Qualified

Engineering Electrician 36 months Core Eng 18 42 60 25

Engineering Boilermaker 36 months Core Eng 11 17 28 5

Engineering Diesel Mechanic

36 months Core Eng 0 26 26 9

Engineering Instrument Mechanic

36 months Core Eng 2 9 11 0

Engineering Fitting 36 months Core Eng 8 20 28 3

Engineering Rigging 36 months Core Eng 4 8 12 0

Blasting Certificates 18 Months Core mining 60 35 60 16

Total 103 157 225 58

Progress with regards to these learnerships is reported annually in Impala Platinum’s SLP and the group’s Training Report, both of which are submitted to the Department of Labour. Reflecting the current need for engineers at the Rustenburg operations, the cost of Engineering Learnerships amounted to 7.42% of the total training budget in FY2006). Plans are in place to double these training efforts (from 40 to 65 qualified learners per year) so as to provide sufficient qualified


artisans for the operations’ own needs. Rustenburg operations’ engineering training services will also be opened to SMMEs in the North West region, thereby providing a training facility to help increase the number of trained artisans in support of the Joint Initiative for Priority Skills Acquisition (JIPSA). A Diversity Management focus group, representing the requisite 25% of the employee base, was identified and sampled for purposes of diagnosis in October 2005. The results of the survey have been conveyed to management and the Transformation Committee. Diversity management training began in July 2006, and will involve every employee at the Rustenburg operations. Refineries The Refineries HRD offers a wide range of in-house training programmes covering the core disciplines required – laboratory, process and engineering training. Refineries’ training officers, who are all certified assessors, facilitate these programmes in the plant. Many external programmes are also offered to employees in-house. In FY2006, the average number of training man-days per Refineries employee was twelve days, conducted at an average cost of R9,625 per employee (refer to Table 52). The total cost of training at Refineries during FY2006 amounted to R9,394,000 (FY2005: R6.9 million). The total value of grants received amounted to R3,622,906. Table 52: Key skills development and training statistics, Refineries, FY2006.

Average training man-

days per employee

Average expenditure per employee per

year

MQA grants received

MQA grants for

ABET

MQA grants for ABET learners

MQA grants for learning material

development

12 days R9625 R3 622 906 R36 000 R72 000 R65 920 Special emphasis was placed on five areas during the year: • Women in Mining – Three women employed at Refineries who were doing their Master of Science

degrees through Da Vinci Institute completed their dissertations at the end of June 2006. The trio has also completed the academic modules for the course and further career development opportunities have been identified for each of them.

• Diversity Management – A Diversity Management focus group, comprising 250 employees (amounting to the requisite 25% of the employee base), was identified and sampled for diagnostic purposes in October 2005. The results of the survey have been conveyed to management and the transformation committee. Diversity management training began in July 2006, and will involve every Refineries’ employee.

• Supervisory Development Programme – A group of ten potential and actual Supervisors successfully completed the DYNA supervisory course at a cost of R10,000 per delegate. This programme, which runs over a three-month period with the intense involvement of the relevant manager, takes supervisors to the next level in terms of confidence and competence. It covers the practical skills required for a supervisor to perform effectively while cementing his/her role as a future leader. Successful learners have the opportunity to further their skill base on the BMS200 (Best in Class Management Skills Programme).

• Junior Engineering Programme (JEP) – Refineries has seven learners enrolled for this programme. Three completed the Law Examination and attempted the Plant Examination of the Government Certificate of Compliance (GCC) in June 2006, while the other four attempted the Law Examination of the GCC.

• Engineering Learnership – Refineries has engaged 15 learner engineers (two instrumentation, six fitting and seven electrical). One instrumentation learner successfully completed his trade test assessment in June 2006; and one electrical learner passed away during the year. An additional seven learner engineers will be engaged at the start of the new financial year, bringing the total number of people engaged in the engineering learnership programme to 20.

A talent management programme has been implemented, which aligns closely with Refineries’ succession plan. Individual development plans have been completed for all D-level employees.

2006 CORPORATE



More than three-quarters of Refineries’ employees (76%) hold qualifications above NQF Level 1. The majority of employees (27%) hold NQF Level 4 qualifications, while a further 22% are at NQF Level 5. Marula Platinum A training centre has been established at Marula Platinum, and already serves as the primary venue for all core business training. All mine employees (i.e. Marula Platinum and Minopex employees) received either Mining Competent A or B training during FY2006; while 31 people (all of whom are HDSAs) were enrolled for Learnership Programmes. Core business training, which aims to develop mining, engineering and plant-related competencies and skills, plus offering ex-leave training so as to ensure continuous improvement in the workforce, resulted in 2,029 employees on the Marula Platinum site undergoing appropriate training during the year. Of this, 40% was ex-leave refresher training. In total, Marula Platinum invested R6,863 million in training during FY2006 (5.5% of the total wage bill) while Minopex invested R22,991 million (4.2% of that company’s bill). A skills development plan has been developed that reflects the operation’s core business of mining, with a major portion of training and development resources being allocated to the development of mining, engineering and plant-related competencies and skills. The training targets in these core areas are reflected in Table 53. A skills audit, scheduled for the first quarter of FY2007, will confirm the applicability of the plan. It is envisaged that Rustenburg operations will then complete an internal audit of the training facilities, after which application for ISO registration assessment will be made (scheduled for December 2006). Table 53: Target enrolments for skills training and core business area training, Marula Platinum, FY2007 to FY2009. FY2007 FY2008 FY2009

Target Target Target

No. of Enrolments

No. Expected to

Qualify

No. of Enrolments

No. Expected to

Qualify

No. of Enrolments

No. Expected to

Qualify

Skills programmes

Mining Competent A 26 26 13 13 11 11

Mining Competent B 406 406 234 234 27 27

Total 432 432 247 247 38 38

Occupation-related training

Mining 284 284 124 124 20 20

Engineering 68 68 44 44 19 19

Plant 16 16 8 8 15 15

Total 368 368 176 176 54 54

Marula Platinum, through Impala Platinum’s established participation in the MQA’s Learnership Programme, supports the Department of Labour’s Learnership Programmes geared at ensuring participants benefit from practical experience in the mining workplace as well as receiving accredited training in the theory behind these chosen disciplines. The operation will make every effort to establish successful relations with the relevant SETA, as well as the training and education providers involved, to facilitate the implementation of beneficial and effective Learnership Programmes at Marula Platinum.


Marula Platinum plans to appoint learnerships annually in line with the business plan as well as the outcomes of the annual skills audit. While the skills audit for the mine still requires completion, the envisaged learnership requirements at the mine are based on the mine’s business plan for the next three years, which are presented in Table 54. These targets have further taken cognisance of the company’s experience to date in respect of hard-to-fill vacancies and the noted shortage of artisans and engineers. Based on the demographics of the area of operation, Marula Platinum will endeavour to ensure that there is a minimum of 80:20 ratio in respect of HDSA participation in Learnership Programmes in order to facilitate the achievement of the mine’s Employment Equity Plan. Marula Platinum currently has 14 Engineering Learnerships in training with two of the learnerships being HDSA females. Table 54: Three-year learnership programmes at Marula Platinum, FY2007 to FY2009.

FY2007 FY2008 FY2009

Name of Learnership Programme Le

ngth

of

Prog

ram

me

Expe

cted

No.

of

New

Enr

olm

ents

Cur

rent

Pa

rtici

pant

s

Tota

l Enr

olm

ents

Expe

cted

Pa

ssou

t

Expe

cted

No.

of

New

Enr

olm

ents

Cur

rent

Pa

rtici

pant

s

Tota

l Enr

olm

ents

Expe

cted

Pa

ssou

t

Expe

cted

No.

of

New

Enr

olm

ents

Cur

rent

Pa

rtici

pant

s

Tota

l Enr

olm

ents

Expe

cted

Pa

ssou

t

Engineering Electrician 3 years 0 2 2 0 2 4 4 0 2 6 6 2

Engineering Boilermaker 3 years 0 0 0 0 2 2 2 0 0 2 2 0

Engineering Diesel Mechanic

3 years 3 12 12 0 3 15 15 0 7 22 22 9

Engineering Instrument Mechanic

3 years 1 1 1 0 0 1 1 0 0 1 1 0

Engineering Fitting 3Years 0 3 3 0 3 6 6 0 0 6 6 3

Engineering Rigging 3 years 0 0 0 0 1 1 1 0 0 1 1 0

Learner Mining Official

18 months 2 2 2 0 3 5 5 2 2 7 7 3

Blasting Certificates (in process of registration)

1 year 5 5 5 0 5 10 10 5 8 13 13 5

Engineering Electrician (Minopex)

3 years 0 2 2 0 2 4 4 2 1 3 3 2

Engineering Instrument Mechanic (Minopex)

3 years 0 1 1 0 2 3 3 1 0 2 2 0

Engineering Fitting (Minopex)

3 years 0 1 1 0 1 2 2 1 0 1 1 0

Total 11 29 29 0 23 53 53 11 20 64 64 24

2006 CORPORATE



Zimplats During the year, priority for internal training was given to re-inductions. The two-day re-induction programme focuses on all aspects of employees being in the work environment by addressing issues such as Safety, Security, Health, Environment, Employee Welfare-related policies and work procedures. All employees attended training in Tip Offs Anonymous, which offers a confidential way to report theft, fraud, corruption and any unethical practices happening in the organisation. Technical training continued with a number of employees obtaining Mine Blasting and Full Blasting licences. Trackless equipment training also continued, resulting in 37 employees becoming competent operators. Four types of learnerships are offered at Zimplats, the numerical breakdown of which is detailed in Table 55: • Graduate Learners – University graduates who are selected to undergo a two-year learnership

programme. • Apprentices – These trainees are trained on-the-job for a period of four years and ultimately qualify

as artisans once their training is complete. • School of Mines Cadets – The School of Mines runs two- and three-year diploma courses in all

mining related areas. • Attachment/vacation learners – University undergraduates are provided with practical training

through holiday employment.

Table 55: Learnerships at Zimplats, FY2006. Learnership type Number of

learners Grauate learners 9 Apprentices 12 School of Mines Cadets 6 Attachment/Vacation learners 12 Total 39 Mimosa The Annual Capability Development programme at Mimosa is closely aligned to the operations’ overall strategic human resources thrust and takes full cognisance of the company’s needs in terms of the annual business plan. The key focus areas are: • Routine LHD operator and UV operator training - Participants in these programmes are drawn

from machine assistants, lashers and machine operators. These programmes are run regularly at the mine. Recruits first go through the mine test battery to determine capacity and potential to successfully complete the operator programmes. At any point Mimosa has a pool of trained UV and LHD operators ready to fill sustainable positions as they arise.

• Mechanised rig operator training – In line with Mimosa’s transition from a semi-mechanised to a mechanised technical system, particularly in mining processes, new Axera drill rigs have been acquired and incorporated into the mining framework. Rig operators have therefore become a vital skill in the loop and the rig operator programme has been implemented to train and develop a local pool of competent operators, who are ready to perform mechanised drilling underground.

• Vendor-supplied programmes – Mimosa’s plant process makes use of various items of vendor-supplied equipment, installed by Metso Minerals, Larox and DRA, among others. These vendors have presented training programmes on site to cover the various functionalities and design issues that can affect the operation and use of this equipment at the mine.

• On-the-job operational programmes – These include courses such as jackhammer operator, Novatek drilling techniques, mining standards refresher, barring down procedures and so on. Most lower-level employees have undergone such training to equip them with the basic skills to fulfil their job requirements.

• Supervisory development programmes – As a result of Mimosa’s rapid growth rate in the recent past, employees in supervisory positions have had to adjust from managing more subordinates than previously, yet with very little supervisor skills or knowledge. This has necessitated a suite of


supervisory programmes to provide the much-needed competencies for effective performance, with modules including:

o Supervisory Industrial Relations o Principals and practices of effective supervision o Communication skills o Business literacy o Supervisory Human Resources

A talent management programme is also in place at Mimosa, which includes a graduate trainee programme, School of Mines Cadetships, Apprenticeships and Mine Blasting Licence and Full Blasting Licence programmes. These interventions are detailed under internships on pages 97 to 99. The majority of HRD initiatives at Mimosa are facilitated and co-ordinated by in-house training officials and progress is reported monthly. In FY2006, 85% of the planned training initiatives took place, resulting in 2,667 employees undergoing training. Career development Implats upholds the philosophy that every employee should be given the opportunity to develop his/her personal potential within one of the career progression paths available in the group. Accordingly, a Career Path Planning model has been developed that helps employees identify appropriate career paths, as well as to familiarise themselves with the requirements at each level within their chosen path. The model integrates four employee career development initiatives: • Generic career plans – All employees go through a new-employee induction programme, which

informs them of the requirements for progression within their own career path and discipline. Generic career paths per discipline have been developed, incorporating timeframes, specific needs and requirements per level.

• Individual Development Plans (IDPs) – Employees with development potential are assisted by their supervisors and a training specialist to formalise a personal development plan, which is reviewed regularly and assistance given as necessary. These IDPs detail the exact career path to be followed by an individual employee, from their starting occupation to their end goal, as well as the specific training interventions that will facilitate their progress.

• Succession Planning – To facilitate the progression of employees (especially HDSAs in line with the company’s EEP), a succession planning system has been implemented within all core disciplines. The succession plan is linked to the generic career path programme and also incorporates a replacement plan for successors (including accelerated development of people with talent). It is managed by an enterprise-wide Succession Committee. The succession planning for Impala Platinum is outlined in Table 56.

• Accelerated training – To cater for future manpower needs, the group uses accelerated training programmes to assist identified individuals (primarily HDSAs) progress through the organisation within one of their chosen career paths. Each programme is developed individually, but is usually in specific disciplines that align strategically with the group companies’ employment equity targets (see Table 57). A total of 146 HDSA employees attended accelerated skills training interventions FY2006 (accounting for 100% of those fast-tracked during the year).

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Table 56: Succession planning at Impala Platinum, FY2006 and FY2007.

Table 57: Employees fast-tracked through accelerated training programme, Rustenburg operations, FY2006 and FY2007.

FY2006 FY2007 (planned)

Fast-tracking programme

No. Fast- Tracked

No. of HDSAs Fast-

Tracked

% HDSA

No. Fast- Tracked

No. of HDSAs Fast-

Tracked

% HDSA

Management Development 158 158 100 504 218 43

Learner Shift Supervisors 41 34 82.9 46 37 80

Learner Official Engineering 12 9 75 16 12 75

Women in Mining (e.g. Da Vinci Institute) 7 7 100 4 4 100

Mine overseer 7 5 71 7 5 71

Experiential learning 7 7 100 10 8 80

Blasting certificate 60 58 97 30 24 80 Learner Official Services 9 8 89 4 4 100

Total 301 286 95 117 94 80

Career path planning, mentorship and internship planning were implemented at Marula Platinum in January 2006, as stipulated in the SLP, and are based on those developed at Impala Platinum. Accelerated training of HDSAs has not been instituted yet at Marula Platinum, but also forms part of the SLP. The roll out of IDPs for all employees is scheduled to commence in November 2006, pending the completion of the skills audit and the identification of suitable learners. All non-NEC affiliated employees at Zimplats receive regular performance and career development reviews annually. Individual development plans arising from these reviews are then consolidated into the organisations’ training needs and budgets are drawn-up to address them. The rest of the workforce does not go through formalised performance reviews as they are catered for in terms of the Mining Industries’ Collective Bargaining Agreement, through their membership of the NEC. Mimosa has in place a succession planning programme that seeks to identify and groom potential successors for key senior management positions in all departments. The required competencies for every senior role are defined upfront and potential successors are then psychometrically tested to assess the extent to which they possess these required competencies. Gaps are defined which can then be closed through a number of different means ranging from job rotation, understudying, in-tray exercises, vestibule courses and acting assignments, until the persons are ready. Mentoring by senior

FY2006 FY2007

Career Path No. of HDSA Successors

No. of HDSA Successors

Mining 10 15

Mining Services 5 16

Engineering 8 26

Human Resources 7 27

Medical Services 3 4

Finance 6 23

Metallurgy 8 102

Total 47 213


managers also helps identify career aspirations of individual managers and mould them to become congruent with organisational requirements. In particular, Mimosa offers employees the opportunity to participate in Mine Blasting (MBL) and Full Blasting Licence (FBL) programmes. These are in-house mining qualifications designed to prepare selected machine operators and machine assistants to become effective team leaders, then assistant overseer miners with an MBL. From here they can develop further through the FBL qualification to become miners. Mentorship Impala Platinum implemented a formal mentoring system in 2003, comprising a formal training and orientation programme for both mentors and protégés. The target beneficiaries of formal mentoring assistance are outlined in Table 59, which also summarises the envisaged outcomes of the mentoring system. The mentoring system provides a valuable mechanism for achieving the company’s employment equity targets, with the Da Vinci Institute initiative being a case in point. Implats, on behalf of Impala Platinum, is also actively involved in providing various forms of assistance to key empowerment groups within the company’s sphere of operations, with particular preference being given to the Royal Bafokeng Nation (RBN), who reside within the region where the Rustenburg operations is located. The RBN has been recognised as Impala Platinum’s strategic BEE partner. A summary of the mentorship targets appears in Table 58. To date, 45 mentors and 75 protégés have been trained. Plans are in place to train a further 15 mentors and 95 protégés in FY2007. The programme, which has been on a one-to-one basis until now, is under review and the option of group mentoring is being investigated. Impala Platinum’s interns and bursars are mentored using the same formal mentoring processes, as detailed under Interns, Bursaries and Scholarships on pages 97 to 99. Table 58: Mentorship targets and frequency of mentoring, Impala Platinum.

Mentoring Programme

Location Target No. of

Mentors Frequency of Mentoring

Successors Impala Platinum 70 Quarterly

Bursary Learners Impala Platinum 8 3 mentoring periods per annum

Learner Shift Supervisor Rustenburg operations 12 Monthly

Learner Official Engineering Rustenburg operations 11 Monthly

Woman in Mining – Da Vinci Institute

Rustenburg operations 7 Monthly

Mine Overseer Rustenburg operations 4 Monthly

Experiential Learning Metallurgy

Impala Platinum 2 Monthly

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Table 59: Mentoring system beneficiaries, Impala Platinum, FY2006. Number Gender

Mentoring Programme Career Deliverables Duration HDSA Non

HDSA Male Female

Impala Platinum Limited Successors Management Positions 2 years 47 43 67 23

Bursary Learners Talent Pool for successors 4 years 35 15 31 19

Rustenburg operations

Learner Shift Supervisor Shift Supervisor 30 months 12 3 14 1

Learner Official Engineering Engineers 3 years 9 3 11 1

Woman in Mining (e.g. Da Vinci Institute)

Management Positions 18 months 7 0 0 7

Mine overseer Mine overseer 1 year 5 2 7 0

Experiential learning Competency training for metallurgy 6 months 13 0 4 9

Refineries Study Aid* Capacity Building 3 years 25 10 22 13

Diplomates Promotion to the Process

Controller or Senior Analyst

6 months 5 0 3 2

Graduates Promotion to Senior

Chemical Engineer or Senior Chemist

3 years 1 0 0 1

Internship Completion of diploma qualification 6 months 0 0 0 0

Engineering Maintenance Operatives, Artisans, Junior and Plant

Engineers 4 years 13 1 12 2

Total 172 77 171 78 * Study aid is provided on a needs basis Mentoring is also provided to NGOs, co-operatives and small- and medium-enterprises (SMEs) at corporate level, in terms of which several local community structures have been empowered to provide mentoring services to these groups at the Rustenburg operations, Refineries and Marula Platinum. Several such groups received mentorship assistance during FY2006. A process to roll out an action plan for mentoring employees at Marula Platinum, in line with the operations’ SLP to commence in November 2006, is on track (pending the completion of the skills audit). A group of 175 individuals participated in the programme during FY2006, of whom 153 were successors, seven were bursary learners, 14 were learners and one was in mining management. As mentioned under Career Development on pages 94 and 95, a mentoring programme has been implemented at Mimosa, and is targeted at middle- and senior managers. Action plans have been developed to match individual aspirations and company strategic thrusts. Internships, bursaries and scholarships Each year, Implats provides a number of tertiary education bursaries to qualifying learners enrolled for registered courses in various fields of study, whether at university or technical college. Emphasis is placed on professional qualifications required for the optimum functioning of the organisation.


Impala Platinum In FY2006, Impala Platinum provided bursaries to 50 university learners (see Table 60), of which 35 were awarded to HDSAs (70%), at a total cost of R3.3 million. All bursary learners are formally mentored three times a year: two formal mentoring sessions per year at their respective tertiary institutions and the other during their eight-week vacation work period, where each learner is mentored individually. Graduates and diplomates are mentored on a monthly basis for the duration of their respective programmes. Likewise, the mentoring of other internship and experiential programme learners, who primarily comprise metallurgy and chemistry learners, also takes place on a monthly basis for the duration of these programmes. Impala Platinum also provides a number of bursaries to learners in the school education channel. These comprise: • School Achiever bursars – Impala Platinum has 80 school achiever bursars, all of who are HDSAs

and enrolled in Grades 11 and 12. They are formally mentored by receiving additional tuition by subject matter experts during a week-long period, three times a year.

• Child of Employee (COE) bursars – Impala Platinum has 75 school COE bursars, also enrolled for Grades 11 and 12 and who also receive additional tuition by subject matter experts three times a year.

Table 60: Bursary and internship programmes, Impala Platinum.

Programme Field of study HDSA Males

HDSA Females

NON HDSA Males

NON HDSA

Females

Number Offered

Career path entry

Mining Engineering 12 4 3 1

Chemical Engineering 3 4 2 2

Electrical Engineering 3 0 2 0

Accounting 2 1 0 2 Mechanical Engineering 1 0 2 0

Chemistry 0 2 0 1

University Bursaries

Geology 1 2 0 0

50 Core Skills Graduate Training programmes

Grade 11 11 21 0 0 School Achievers Programme Grade 12 16 32 0 0

80

Talent pool for Impala Platinum Bursary scheme, Learnerships

Grade 8 5 2 0 0 Grade 9 10 16 1 0 Grade 10 11 21 0 1

Child of Employee Bursaries

Grade 11 3 6 0 0

75

Talent pool for Impala Platinum Bursary scheme, Learnerships

Graduate Mining Training 5 0 0 0

Diplomate Surveying Training

2 0 0 0

Diplomate Mining Training 6 0 0 0

Graduate/ Diplomate Internship & Experiential Programmes

Graduate Engineering Training

1 0 1 1

16 Core Skills Mining & Engineering Supervisory positions

Metallurgy 4 3 0 0 Other Internship & Experiential Programmes

Chemistry 0 6 0 0 13

Discipline Specific Training/ Metallurgists & Analysts positions

TOTAL 234

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Marula Platinum Marula Platinum offers an open bursary scheme that aims to deliver timeously, sufficient appropriately educated employees for the company. The bursary scheme has three components: • University bursars – Marula Platinum has currently provided study bursaries to five learners from the

local community, all of whom are studying full-time at the University of the Witwatersrand. Two of the bursars are mining engineering learners and the third is studying geology. Two of the three bursars are women. One Mining Engineering learner completed his studies in 2005 and is currently on a development programme at Marula Platinum.

• COE bursars – A minimum of ten secondary school bursaries are offered to children of Category 3 to 8 employees, with preference given to learners who have passed Grades 8, 9, 10 or 11 and who have mathematics, natural science or accounting as subjects.

• School Achiever bursars – A minimum of six secondary school bursaries are offered to learners, with preference given to learners who have passed Grades 8, 9, 10, or 11 and who have mathematics, natural science or accounting as subjects.

• Graduate/Diplomate internship and experiential programmes – Vacation work is provided for Marula Platinum’s bursary holders. Experiential training is also offered on an ad hoc basis for diplomate and bursary non-employee learners, in conjunction with the community, technikons and universities (with specific emphasis on metallurgy and chemical engineering). Learnerships in engineering are offered to assist engineering graduates and diplomates register as engineers. Thirteen individuals benefited from this programme in FY2006.

Zimplats Ongoing apprenticeship training resulted in a total of twelve apprentices undergoing training in various disciplines. All the apprentices underwent a six-month All Trades Introductory course, which gave them a good artisan foundation. Thereafter, on-the-job training and institutional training was administered and monitored through formal appraisal reviews. Zimplats’ first batch of apprentices will qualify in January 2008. In line with expansion requirements, the company’s intention is to double the number of apprentices in the system from FY2007 onwards. The number of learners enrolled for mining-related courses at the Zimbabwe School of Mines increased from two in FY2005 to six in FY2006. A total of nine graduate trainees are currently enrolled for two-year learnership programmes. Zimplats continues to assist local schools and colleges by offering attachment places to needy learners. Although bursaries are not offered either to employees, their families or independent learners, the company does assist employees by providing education subsidies for their children, thus enabling them to afford the fees at better quality schools in Zimbabwe. Mimosa Every year, Mimosa sends cadet miners, geotechnician cadets, survey cadets and metallurgy cadets to the Zimbabwe School of Mines in Bulawayo. The programme receives all round support, especially from employees who have taken a keen interest in development. The number of Cadets has risen from the initial 5 to 11 in FY2006, with plans to increase the intake. The training duration for employees at the Zimbabwe School of Mines has been reduced from the normal three years to two years, which acknowledges the mining experience learners have in comparison to immediate high school leavers. Mimosa’s cadets have shown a high degree of maturity and continue to excel. Several schemes are in place to provide career opportunities to learners and graduates. These include • An apprenticeship programme, which is in its infancy owing to inadequate capacity and

infrastructure. There are currently four apprenticeship learners in the disciplines of Boilermaking, Instrumentation, Fitting and Electrical. Successful completion of their respective programmes in these areas will strengthen Mimosa’s artisan skills base.

• A graduate trainee programme, where every year Mimosa recruits graduates in various disciplines, including mining, engineering, metallurgy, SHE, management information systems and human resources. There are currently seven incumbents on the programme. On successful completion of Mimosa’s two-year graduate trainee programme, they are appointed to substantive positions in their specific disciplines.


Portable skills training Impala Platinum’s skills development plan and retrenchment management programme provides training in portable skills which are applicable to the mining sector and other employment sectors and ensure such training programmes are adapted as required by the mine’s employees. Such portable skills are defined as accredited skills, developed through unit standards based training, that can be used either within the mining sector (across mineral sectors), or outside the mining sector. The plan has three components: • Core business training – The nature of Impala Platinum’s core business is such that employees are

exposed to skills and competencies that will enable them to find jobs elsewhere within or external to the mining industry, and/or to become financially self-sustaining in any sector. Core business training is carried out for all employees during the life of the mine in various disciplines, which facilitates on-going skills development and certification thereof. Supervisory and management training is also promoted at managerial levels which further facilitates access to generic business, financial, management-related skills transferable across any sector.

• Non-mining-related skills training – The potential risk to jobs at Impala Platinum’s operations (particularly the mine) due to fluctuations in the platinum industry within South Africa has highlighted the need for the development of non-mining related portable skills training, which is communicated to employees via the Future Forum structures. A dedicated Portable Skills Fund will be put in place to meet the costs of the training required by employees on an annual basis during the life of the mine. It is envisaged that the programme, which will be devised jointly by the Skills and Education Committee and the Joint Future Forum will commence by November 2006. An annual budget of R2 million will be provided for non-mining related training as of FY2007, which makes provision for 500 employees (20% of the workforce). Where possible the training will be accredited and training may be outsourced.

• Skills training against retrenchment or downscaling – Should changes in the market conditions, business plan or as part of a planned downscaling exercise result in retrenchment, the Portable Skills Fund will be supplemented with additional funds from the HRD training budget for that year. The exact amount will be determined by the number of people affected by the retrenchment exercise and will be calculated according to the training costs per person; and will give affected employees access to an expanded non-core portable skills training programme. Priority will be given to employees who have had limited access to portable skill training previously (i.e. during the life of the mine). The additional non-mining training requirements for the workforce will be determined in consultation with community forums, including Impala Platinum’s Future Forums, four to five years prior to operation closure. It is envisaged that three suitable programmes will be developed for the lower occupational levels at the company’s affected operations as well as three further programmes at supervisory and management level.

The progress of the portable skills training programme at our Rustenburg operations to date, plus the programme’s targets for FY2007, are cited in Table 61.

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Table 61: Portable skills training, Rustenburg operations, FY2005 to FY2007.

Impala Platinum Rustenburg operations FY2005 FY2006 FY2007

Training Programmes

Skills are portable within the mining industry (across mineral sectors)

Skills are portable outside of the mining industry

No. of enrolments

No. Qualif

y

No. of enrolments

No. Qualify

No. of enrolments

No. Expected to Qualify

In-House Training Mining 1,685 1,685 2,010 2,010 1,700 1,700 Engineering non -licensed

900 900 3,423 3,423 400 400

Engineering High Tension Electrical 15 15 4 4 20 20

Engineering Serviceman Training

80 60 115 115 80 60

Engineering - licensed 134 113 780 780 134 113

Metallurgy 1,039 1,000 1,259 1,259 900 900

Formal Learnership Engineering

189 40 150 25 192 55

Total 4, 042 3,813 7,741 7,626 3,926 3,748

Supervisory & Management Training

Principles of Supervision

150 150 188 173 200 200

Intro to Supervision 125 125 108 107 150 150

Financial Life Skills 250 250 220 205 300 300

Basic Business Skills 200 200 117 117 250 250

Introduction to Basic Computers

140 140 297 297 400 400

Total 865 865 930 899 1,300 1,300

Total participants 4,907 4,678 8,671 8,728 5,226 5,048

Marula Platinum has developed a similar portable skills development plan to that of Impala Platinum. The nature of the company’s core business is such that emloyees are exposed to skills and competencies that will enable them to find jobs elsewhere within or external to the mining industry, and/or enable them to become financially self-sustaining in any sector. Core business training will be carried out among all employees during the life of the mine in various core business disciplines and as such facilitiates ongoing skills development and certification thereof. Furthermore, the mine will institute supervisory and management training among all employee levels which further facilitates access to generic business, financial, management-related skills transferable across any sector. Marula Platinum will provide portable skills training within the various core business disciplines for all occupational levels during the life of the mine. Where the skills training is portable within the mining sector (and across mineral sectors) and/or is external to the mining sector, this has been identified. Targets for such portable skills training for the next three years have been developed in line with the core business training programme envisaged for the mine determined by the business plan for this period and taking cognisance of expected turnover levels and ongoing increase in employment levels. It is pertinent to note, however, that the targets in respect of training in these areas may change following the completion of the 2006 annual skills audit .


Employee objectives Our overall objective is to implement Implats’ new EEP across our South African operations by the 2006 calendar year. This will include achieving 34% HDSA management across Impala Platinum and increase the percentage of women employees (including white women) to 4% at group level. Impala Platinum Rustenburg operations Embed the talent management process across the group. Ensure the delivery of a detailed succession planning process for the group. Develop a group resourcing and retention strategy. Focus on the delivery of retention strategies, which include remuneration and skills development

initiatives. Monitor the implementation of all transformation processes in the group. Accelerate the delivery of all legislative imperatives, which encompass EE and the Mining Charter

requirements. Optimise relationships with our key stakeholders. Deliver on all our commitments to critical stakeholders. These include employees through sound

employee relations interventions; government by ensuring full compliance to legislation; communities though CSI and community development initiatives; and our suppliers through business partnerships.

Refineries Talent Management • Implement Performance Management System. • Develop a Leadership Model. • Implement Continuing Professional Development Program. Diversity Management • Complete Diversity Management training for all at Refineries. Engineering • Maintain Employment Equity Engineering strategy ABET • Reach target of 120 learners per intake. • Maintain ABET strategy for 2004 to 2009. Process and Labs • Complete the development of Unit Standards Learning Material. • Introduce E-learning in the plants. Social and Labour Plan • Implement portable skills in identified areas. • Develop and implement a mentoring strategy. • Engage and develop learners on internship programs. Marula Platinum Talent Management • Implement Performance Management System. • Identify and train mentors. • Identify a talent pool for all departments and develop career paths of such learners. Employment Equity • Develop an Employment Equity Plan for Marula Platinum involving all stakeholders. Diversity Management • Implement Diversity Management training.

2006 CORPORATE



Engineering • Annual selecting and training of Engineering Learnerships. ABET • Start Marula Platinum ABET by January 2007. • Maintain ABET strategy for 2006 to 2011. Social and Labour Plan • Implement processes and programmes as per Marula Platinum SLP. • Complete skills audit by November 2006. • Plan and implement portable skills training. Zimplats • All non-NEC affiliated employees (11% of workforce) to continue receiving regular performance

and career development reviews. Individual Development Plans arising from these reviews will be consolidated into training needs for FY2007. (NEC affiliated employees are covered by the NEC in terms of the Mining Industry Collective Bargaining Agreement.)

• Double the number of employees who receive training. • Provide mentorship training for all managers involved in employee development. • Maintain momentum of Management and Supervisory Development programme (ten managers

have been earmarked for the Management Development Programme through UNISA). • Continue providing operator training with a view to developing a further 40 trackless machine

operators in FY2007.

Mimosa Succession Planning for Managers • Carry out Career Path Appreciation (CPA) reviews for all senior managers by the end of December

2006. • Identify Training and Development needs through CPAs. • Develop a Succession Planning Model. Capability Development for lower level employees • Develop skills matrix for all levels of employees. • Match individual qualifications and skills with job requirements as per matrix. • Develop training plans to close gaps. Equal Employment Opportunity • Employ labour from the local community for all non-skilled staff. • Ensure compliance to our recruitment policy of non-discrimination on grounds of gender, race,

religion, HIV/AIDS status and colour.

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