social and labour plan · 2021. 6. 14. · mqa: mining qualifications authority mrp: metal recovery...

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SOCIAL AND

LABOUR PLAN

SAMANCOR CHROME SPITSKOP MINE

December 2017

Mining Right Ref no. LP 30/5/1/2/2/84 MR

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TABLE OF CONTENTS

1 INTRODUCTION TO AND BACKGROUND INFORMATION ABOUT THE OPERATION ........... 2

1.1 INTRODUCTION ................................................................................................................ 2

1.2 PARTICULARS OF THE OPERATION ......................................................................................... 3

1.3 LOCATION ....................................................................................................................... 3

1.4 BREAKDOWN OF EMPLOYEES PER LABOUR-SENDING AREA ......................................................... 6

1.5 BACKGROUND .................................................................................................................. 8

1.5.1 Company ........................................................................................................................................... 8

1.6 METHODS TO FACILITATE SLP IMPLEMENTATION .................................................................... 9

1 HUMAN RESOURCES DEVELOPMENT PROGRAMME (HRDP) ......................................... 12

2.1 INTRODUCTION .............................................................................................................. 12

2.2 APPROACH.................................................................................................................... 12

2.3 SKILLS DEVELOPMENT PLAN ............................................................................................. 13

2.3.1 Introduction .................................................................................................................................... 13

2.3.2 Adult Education and Training (AET) .............................................................................................. 13

2.3.3 Learnerships ................................................................................................................................... 17

2.3.4 Skills training programmes ............................................................................................................ 19

2.3.5 Portable skills training ................................................................................................................... 22

2.4 HARD-TO-FILL VACANCIES ................................................................................................ 24

2.5 CAREER PROGRESSION PLAN ............................................................................................. 24

2.5.1 Overview ......................................................................................................................................... 24

2.5.2 Career paths .................................................................................................................................... 25

2.5.3 Career Progression Plan .................................................................................................................. 25

2.5.4 Targets ............................................................................................................................................ 26

2.5.5 Action plan ...................................................................................................................................... 27

2.6 MENTORSHIP PLAN ......................................................................................................... 27

2.6.1 Overview ......................................................................................................................................... 27

2.6.2 Targets ............................................................................................................................................ 27

2.6.3 Action plan .......................................................................................................................................... 29

2.7 INTERNSHIP AND BURSARY PLAN ....................................................................................... 29

2.7.1 Overview ......................................................................................................................................... 29

2.7.2 Internship (Experiential Training) Plan............................................................................................ 29

2.7.3 Bursary Plan .................................................................................................................................... 29

2.7.4 Study assistance .............................................................................................................................. 30

2.7.5 Action plan .......................................................................................................................................... 31

2.8 EMPLOYMENT EQUITY PLAN ............................................................................................. 32

2.8.1 Overview ......................................................................................................................................... 32

2.8.2 HDSAs in management targets ....................................................................................................... 32

2.8.3 Participation of women in mining ................................................................................................... 34

3 LOCAL ECONOMIC DEVELOPMENT PROGRAMME (LEDP) ............................................... 36

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3.1 OVERVIEW .................................................................................................................... 36

3.2 BACKGROUND SOCIO-ECONOMIC INFORMATION ................................................................... 37

3.2.1 Introduction .................................................................................................................................... 37

3.2.2 District and Local Socio-Economic Regional Analysis ...................................................................... 37

3.2.3 Action plan indicating the zone of focus of the Samancor ECM LEDP ............................................ 47

3.2.4 Socio-economic impact of operation ‒ Regulation 46(c)(ii)(b)........................................................ 47

3.3 INFRASTRUCTURE DEVELOPMENT, POVERTY ERADICATION AND WELFARE CREATION PROJECTS ........ 48

3.3.1 Approach ......................................................................................................................................... 48

3.3.2 Baseline situation ............................................................................................................................ 48

3.3.3 Action plans and projects ................................................................................................................ 49

3.4 MEASURES TO ADDRESS HOUSING, LIVING CONDITIONS AND NUTRITION ‒ REGULATION 46(C)(IV) . 53

3.4.1 Introduction .................................................................................................................................... 53

3.5.1 The baseline situation ..................................................................................................................... 56

3.5.2 Action plan ...................................................................................................................................... 56

4. PROGRAMMES FOR MANAGING DOWNSCALING AND RETRENCHMENT ....................... 59

4.1 APPROACH .................................................................................................................... 59

4.2 ESTABLISHING A FUTURE FORUM (FF) ................................................................................ 59

4.3 MECHANISMS TO SAVE JOBS AND AVOID A DECLINE IN EMPLOYMENT ........................................ 60

4.3.1 Consultation processes ................................................................................................................... 60

4.3.2 Notification to government authorities .............................................................................................. 61

4.3.3 Strategic plans for providing job security ............................................................................................ 61

4.4 MECHANISMS TO PROVIDE ALTERNATIVE SOLUTIONS AND PROCEDURES FOR CREATING JOB SECURITY

WHERE JOB LOSSES CANNOT BE AVOIDED ........................................................................................ 62

4.5. MECHANISMS TO AMELIORATE THE SOCIAL AND ECONOMIC IMPACT ON INDIVIDUALS, REGIONS AND

ECONOMIES WHERE RETRENCHMENT OR CLOSURE OF THE MINE IS CERTAIN ........................................... 63

4.5.1. Overview ..................................................................................................................................... 63

5 FINANCIAL PROVISION FOR IMPLEMENTING THE SOCIAL AND LABOUR PLAN ............... 65

6 UNDERTAKING .................................................................................................................. 67

APPENDIX I: CAREER PROGRESSION PATHS AT SPITSKOP ....................................................... 68

APPENDIX II: PRESENTATION AND PROOF OF CONSULTATION (MUNICIPALITY AND

COMMUNITIES) ........................................................................................................................ 70

APPENDIXIII: FORM T ............................................................................................................... 74

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LIST OF TABLES

Table 1: Breakdown of employees per labour-sending area of Spitskop and Shared Services .............................. 6

Table 2: Form Q – Employee educational levels at Spitskop, as required by Regulation 46(b)(i)aa .................... 14

Table 3: Targets for AET at Spitskop ..................................................................................................................... 16

Table 4: Five-year plan for learnership enrolments ............................................................................................. 18

Table 5: Five-year plan for skills training interventions ........................................................................................ 20

Table 6 shows the five-year targets set for portable skills training. As mentioned, individuals will be offered a

choice of the portable skills courses they would like to take. Table 6: Five-year plan for portable skills training

interventions ........................................................................................................................................................ 23

Table 7: Hard-to-fill vacancies as per Form R in Annexure II of the MPRDA Regulations .................................... 24

Table 8: Career Progression Plan targets .............................................................................................................. 26

Table 9: Mentorship Plan targets at Spitskop ....................................................................................................... 28

Table 11: Employment equity statistics as at January 2018 as per Form S in Annexure II of the MPRDA

Regulations ........................................................................................................................................................... 32

Table 12: Five-year plan and targets for the participation of HDSAs at Spitskop ................................................. 33

Table 13: Women participation in mining targets ................................................................................................ 34

Table 14: Population overview ............................................................................................................................. 37

Table 15: Population by race ................................................................................................................................ 38

Table 16: Population demographics of age .......................................................................................................... 38

Table 17: Languages ............................................................................................................................................. 39

Table 18: Educational levels of population older than 21 years ........................................................................... 40

Table 19: Current attendance at education institutions ...................................................................................... 40

Table 20: Employment levels ................................................................................................................................ 41

Table 21: Dependency ratios for the SDM and the FGTLM .................................................................................. 41

Table 22: Income .................................................................................................................................................. 42

Table 23: Social grant recipients ........................................................................................................................... 43

Table 24: Employment per industry ..................................................................................................................... 43

Table 25: Households’ tenure status .................................................................................................................... 44

Table 26: Households by type of main dwelling ................................................................................................... 44

Table 27: Energy for lighting ................................................................................................................................. 45

Table 28: Sanitation .............................................................................................................................................. 45

Table 29: Refuse removal ..................................................................................................................................... 46

Table 30: Access to water ..................................................................................................................................... 46

Table 31: Current level of spend by the company on BEE or HDSA vendors ........................................................ 56

Table 32: Targets for increasing HDSA suppliers .................................................................................................. 57

Table 33: Cash flow forecast of SLP Expenditure .................................................................................................. 65

LIST OF FIGURES Figure 1 Location Spitskop Mine (an extension of Lannex Chrome Mine) --------------------------------------------------- 4

Figure 2 Location of Spitskop on Spitskop 333KT ----------------------------------------------------------------------------------- 5

Figure 3 SLP Implementation life cycle ---------------------------------------------------------------------------------------------- 10

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ABBREVIATIONS AND ACRONYMS

ABBREVIATION MEANING

AET: Adult Education and Training

ASGISA: Accelerated and Shared Growth Initiative for South Africa

ATR: Annual Training Report

BBSEEC: Broad-based Socio-economic Empowerment Charter

BEE: black economic empowerment

BIC: Bushveld Igneous Complex

BSESS: Baseline Socio-Economic Study-Survey

CBOs: Community Based Organisations

CEO: Chief Executive Officer

CMR: Conversion of Mining Right

COO: Chief Operating Officer

CSR: corporate social responsibility

DBE: Department of Basic Education

DMR: Department of Minerals Resources

DoL: Department of Labour

DTI: Department of Trade and Industry

EE:

employment equity

FET: Further Education and Training

FF: Future Forum

FGTLM: Fetakgomo - Greater Tubatse Local Municipality

FLC: Foundational Learning Competence

GET: General Education and Training

GMR: Granting of a Mining Right

GSDM: Greater Sekhukhune District Municipality

HDSA: Historically Disadvantaged South African

HET: Higher Education and Training

HRD: Human Resources Development

HRDP: Human Resources Development Programme

IDP: Integrated Development Plan/individual development plan

JIPSA: Joint Initiative on Priority Skills Acquisitions

LED: Local Economic Development

LEDP: Local Economic Development Programme

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ABBREVIATION MEANING

MPRDA: Mineral and Petroleum Resources Development Act (Act 28, 2002)

MQA: Mining Qualifications Authority

MRP: Metal Recovery Plant

NGO: non-governmental organisation

NQF: National Qualifications Framework

PAYE: pay as you earn

RDP: Reconstruction and Development Programme

SABS: South African Bureau of Standards

SAQA: South African Qualifications Authority

SDA: Skills Development Act

SETA: Sector Education and Training Authority

SHEQ: safety, health, environment, and quality

SLP: Social and Labour Plan

SMMEs: small, medium and micro-enterprises

UIF: Unemployment Insurance Fund

VAT: value-added tax

VCT: voluntary counselling and testing

WSP: Workplace Skills Plan

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SECTION 1

Introduction to and background

information about the operation

Regulation 46(a)

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1 INTRODUCTION TO AND BACKGROUND INFORMATION ABOUT

THE OPERATION

1.1 Introduction

This new five-year Social and Labour Plan (SLP) for the period 2018-2022 is submitted by Samancor

Eastern Chrome Mines (Samancor ECM) in terms of the requirements of the Mineral and Petroleum

Resources Development Act (Act 28 of 2002) (MPRDA). The development and submission of an SLP is

a requirement of the MPRDA and sets out the social and labour programmes to be implemented for

the life of the existing mine.

The objectives of the SLP are as follows:

Promote employment and advance the social and economic welfare of all South Africans.

Contribute to the transformation of the mining industry.

Ensure that holders of mining rights contribute towards the socio-economic development of

the areas in which they operate.

The progress in meeting the commitments set out in the programmes outlined in the SLP with regard

to human resources development (HRD), local economic development (LED) and the management of

downscaling and retrenchment will be reported annually to the Limpopo Regional Department of

Mineral Resources (DMR).

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1.2 Particulars of the operation

Name of company Samancor Chrome Limited

Name of mine Eastern Chrome Mines ‒ Spitskop Mine

Physical address Polokwane Road (R36) Steelport Limpopo Province

Postal address PO Box 3 Steelpoort 1133

Telephone number 013 230 7000

Fax number 013 230 7003

Location of mine

Province: Limpopo Municipalities: Fetakgomo Greater Tubatse Local Municipality in the Sekhukhune District Municipality Farm name: Spitskop 333 KT,

Commodity Chromite

Chromite

Life of mine 30 years ears Breakdown of employees

per labour-sending area See section 0 (Table 1)

Financial year January to December

1.3 Location

Samancor Chrome Limited is the holder of a valid new order mining right LP30/5/1/2/2/84MR on the farm Spitskop 333 KT, situated in Fetakgomo Greater Tubatse Local Municipality of the Sekhukhune District Municipality, Limpopo Province. The Spitskop Chrome Mine is approximately situated 8 kilometres from Steelpoort Town. The location and general surface map of Spitskop 333 KT farm is shown in Figures 1 and 2 below and forms part of Lannex Mine. The mineral/s being mined at Spitskop is chromite and associated minerals and in particular the MG1, MG2 and MG3 chromitite seams.

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Figure 1 Location Spitskop Mine (an extension of Lannex Chrome Mine)

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Figure 2 Location of Spitskop on Spitskop 333KT

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1.4 Breakdown of employees per labour-sending area

Spitskop Open Cast operation has been outsourced to a contractor with the current number of

employment positions (excluding Shared Services) being 67. Of the Spitskop workforce, more than

80% of the total contractor staff complement were sourced from within Fetakgomo Greater Tubatse

Local Municipality.

The Shared Services employees are also provided for: 264 (75%) of the 352 are from the FGTLM.

Shared Services are staff who work for Samancor ECM and perform services for all of the operations.

Shared services include human resources, procurement, financial, mineral resources and health and

safety functions including the Mine Manager (3.1 legal appointment).

Only the labour-sending area information of Shared Services will be reflected in all SLPs.

Spitskop employee breakdown (both permanent and Shared Services) per labour-sending area is

provided in Table 1 below.

Table 1: Breakdown of employees per labour-sending area of Spitskop and Shared Services

SPITSKOP

Local municipality Town Number Percentage

Local labour-sending area

Fetakgomo Greater Tubatse

Maroga 1 1.49%

Phasha 2 2.99%

Steelpoort 7 10.45%

Ngwaabe 10 14.93%

Mampuru 2 2.99%

Dithamaga 1 1.49%

Eerstegeluk 1 1.49%

Riba Cross 2 2.99%

Tjana 1 1.49%

Frans 1 1.49%

Manoka 1 1.49%

Mokgotho 1 1.49%

Motodi 1 1.49%

Ragopolo 2 2.99%

Kgautswana 1 1.49%

Kgatlopo 2 2.99%

Leshoaneng 1 1.49%

Mapodile 1 1.49%

Moroke 1 1.49%

Nokaneng 1 1.49%

Praktiseer 2 2.99%

Tukakgomo 4 5.97%

Madiseng 1 1.49%

Total local recruits 47 70.15%

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Other labour-sending areas

Limpopo

Sehlakwane Various towns 1 1.49%

Mahwelereng Various towns 1 1.49%

Groblersdal Various towns 1 1.49%

Mpudulle Various towns 1 1.49%

Mpumalanga

Ermelo Various towns 1 1.49%

Hazyview Various towns 1 1.49%

Kwa-Mhlanga Various towns 1 1.49%

Middleburg Various towns 1 1.49%

Bushbuckridge Various towns 1 1.49%

Thaba Chweu Various towns 4 5.97%

Witbank Various towns 2 2.99%

North West

Rustenberg Various towns 1 1.49%

Skoonplaas Various towns 1 1.49%

KwaZulu-Natal

Nongoma Various towns 1 1.49%

Vryheid Various towns 1 1.49%

Gauteng

Naledi Various towns 1 1.49%

Total other recruits 20 29.85%

Total 67 100.00%

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SAMANCOR EASTERN CHROME MINE SHARED SERVICES

Local municipality Town Staff

Number Percentage

Local labour-sending area

Fetakgomo Greater Tubatse

Burgersfort 74 18.69%

Eerstegeluk 2 0.51%

Kgoete 1 0.25%

Mahlakwena 0 0.00%

Mampuru 3 0.76%

Manyaka 1 0.25%

Maroga 29 7.32%

Mashishi 4 1.01%

Ngwaabe 13 3.28%

Others 126 31.82%

Phasha 13 3.28%

Riba Cross 27 6.82%

Steelpoort 103 26.01%

Total local recruits 396 100.00%

1.5 Background

1.5.1 Company

Samancor Chrome Limited is the holder of a valid new order mining right LP30/5/1/2/2/84MR on the

farm Spitskop 333 KT, situated in Fetakgomo Greater Tubatse Local Municipality of the Sekhukhune

district municipality, Limpopo Province. The mining right was granted on 31st October 2012 by the

Department of Mineral Resources (DMR) and will be in force for a period of 30 years ending on 1st

November 2042. The mining right comprises Portions 1, 2, 3, 4, 5, 12 and 13. The mining area measures

728.5433 hectares in extent. Samancor Chrome Limited has surface rights on Portions 1, 2, 3, 4 and 5.

Mining operations started in February 2013 using opencast mining method. Below reflects the

shareholding structure at Samancor Chrome. 1

1 9% BEE points was awarded to Samancor by DMR as beneficiation credits; which the total BEE shareholding to

26%

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Terris Chrome/

Mining 54%

ESOP Trust

1.11%

Holgoun Mining

1.62%Sibilo 3.08% Nanka 3.7%

Hanwa/ Jogmeg

32%

Samancor

Chrome 4.49%

EMPOWERMENT PARTNERS 9.51%

Samancor Chrome Holdings (Pty) Limited 100%

Samancor Chrome Limited - Main Operating Company

Beneficiation Credits 9%

Figure 3: Structure and shareholding of Samancor Chrome Limited

1.6 Methods to facilitate SLP implementation

The mine will use the following methods and the life cycle illustrated in Figure 4 to ensure the

successful and appropriate implementation of the SLP through its core contractors:

1. Ensuring continuous implementation of the action plans set out in the various sections of the

SLP

2. Updating all the baseline and target tables in this document to ensure continuous monitoring

and evaluation

3. Conducting regular meetings to review performance

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Figure 3 SLP Implementation life cycle

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SECTION 2

Human Resources Development

Programme

Regulation 46(b)

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1 HUMAN RESOURCES DEVELOPMENT PROGRAMME (HRDP)

2.1 Introduction

The Mining Charter requires mines to formulate and implement an HRDP to enable the transformation

and empowerment of the workforce, in particular, the empowerment of historically disadvantaged

South African (HDSA) employees to progress to higher levels of employment in the organisation, and

to be able to exploit alternative income-generating opportunities outside the organisation.

This section will outline Spitskop’s HRD Programme as required by section 46 of the Regulations to the

MPRDA. The mine takes full cognisance of the provisions of section 101 of the MPRDA. As such, the

provisions of the HRD Programme outlined in this section will apply to Spitskop’s entire workforce,

including core contractors.

The mine requires a skilled workforce for daily activities, and therefore offers training support and

career development opportunities to its employees, in particular to the HDSA employees.

The mine will comply with the requirements of the Skills Development Act (Act 97 of 1998) and will

submit Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) to the Mining Qualifications

Authority (MQA).

In order to ensure the proper implementation of the HRD Programme, Spitskop will utilise accredited

providers for its training needs, where necessary, in order to ensure the ongoing facilitation of

transferable, accredited skills among employees.

2.2 Approach

The integrated HRD Programme will seek to maximise the productive potential of people employed

by the mine through the implementation of the following plans:

a) A Skills Development Plan

b) A Career Progression Plan

c) A Mentorship Plan

d) An Internship and Bursary Plan

e) An Employment Equity Plan

The HRD Programme for the next five years focuses on providing employees with adequate

opportunities for adult education and training (AET), skills development, progression at the mine, as

well as compliance with the Mining Charter requirements. The strategic HRDP model for the ECM

operations will provide guidance on the programmes and plans.

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2.3 Skills Development Plan

2.3.1 Introduction

Spitskop Mine recognises the importance of its employees in the achievement of its business

objectives, and that skills development is the foundation for developing competent and productive

employees who are able to participate in meeting the mine’s business objectives.

The mine will implement a Skills Development Plan that focuses on equipping employees with the

required skills to enhance their progression and development at the mine.

The Skills Development Plan provides action plans and targets on how Spitskop intends to offer its

employees opportunities to become functionally literate and numerate, to participate in learnerships,

skills development programmes and various other training initiatives, and to acquire portable skills.

The Skills Development Plan links with skills development legislation, and includes the regular

submission of WSPs and ATRs.

2.3.2 Adult Education and Training (AET)

Overview

The mine is committed to developing the educational levels of its employees, and AET will be a key

focus area in this regard. The mine has 67 full-time employees (excluding Shared Services) whose

literacy levels are below Grade 9 (see Error! Reference source not found.). Employees who are

identified as having functional literacy and numeracy levels below AET level 4 have been, and are still

being, afforded the opportunity to participate in AET training.

Over the next five years, the education and training of employees will continue to specifically focus on

providing opportunities and giving assistance to illiterate employees to become literate and numerate.

The mine’s AET programmes are facilitated by the ECM’s Training and Development Department,

overseen by a dedicated AET practitioner. In collaboration with dedicated, skilled AET teachers in the

surrounding communities, opportunities are given on a part-time basis to those interested to achieve

the AET programme targets (Error! Reference source not found.). Media Works and the accredited

community AET service provider will facilitate the marking and moderation of all AET material for

quality assurance purposes. AET training is to be offered to the community making use of either of the

two AET Facility at Eastern Chrome Mines. This will be explored from year 2018 as only four

employees have been identified whom require AET.

2.3.2.2 Form Q – Educational levels of the workforce

The following information is based on the total workforce as at 30th October 2017.

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Table 2: Form Q – Employee educational levels at Spitskop, as required by Regulation 46(b)(i)aa

A = African; C = Coloured; I/A = Indian/Asian; W = White; F=Foreign

Band NQF level Classification system

SPITSKOP

Male Female Total

A C I/A W F A C I/A W F M F

General Education

and Training

(GET)

No schooling/unknown 0 0 0 0 0 0 0 0 0 0 0 0

Grade 0/Preschool 0 0 0 0 0 0 0 0 0 0 0 0

Grade 1/Sub A 0 0 0 0 0 0 0 0 0 0 0 0

Grade 2/Sub B 0 0 0 0 0 0 0 0 0 0 0 0

Grade 3/Std 1/ABET 1 0 0 0 0 0 0 0 0 0 0 0 0

Grade 4/Std 2 0 0 0 0 0 0 0 0 0 0 0 0

Grade 5/Std 3/ABET 2 1 0 0 0 0 0 0 0 0 0 1 0

Grade 6/Std 4 0 0 0 0 0 0 0 0 0 0 0 0

Grade 7/Std 5/ABET 3 0 0 0 0 0 0 0 0 0 0 0 0

Grade 8/Std 6 3 0 0 0 0 0 0 0 0 0 3 0

1 Grade 9/Std 7/ABET 4 3 0 0 0 0 0 0 0 0 0 3 0

Further Education and Training (FET)

2 Grade 10/Std 8/N1 14 0 0 2 0 1 0 0 0 0 16 1

3 Grade 11/Std 9/N2 16 0 0 0 0 0 1 0 0 0 16 1

4 Grade 12/Std 10/N3 22 0 0 3 0 0 0 0 0 0 25 0

Higher Education and Training (HET)

5 Certificates 0 0 0 0 0 1 0 0 0 0 0 1

6 First degrees/diplomas 0 0 0 0 0 0 0 0 0 0 0 0

7 Honours/higher diplomas 0 0 0 0 0 0 0 0 0 0 0 0

8 Master’s/doctorates 0 0 0 0 0 0 0 0 0 0 0 0

Total 59 0 0 5 0 2 1 0 0 0 64 3

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2.3.2.3. Targets

The targets below incorporate all the employees who are eligible and who will be offered the

opportunity to attend AET classes. The employees who will not make use of the opportunity will be

requested to sign a declaration of non-interest, and this will be kept as proof that all the employees

did receive this opportunity. AET classes will be conducted on a part-time basis. See Error! Reference

source not found. for the five-year targets.

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Table 3: Targets for AET at Spitskop

SPITSKOP

Level

2017 (baseline) 2018 2019

African Coloure

d Asian White

T African

Coloured

Asian White T

African Coloure

d Asian White

T

M F M F M F M F M F M F M F M F M F M F M F M F

AET 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

AET 2 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

AET 3 0 0 0 0 0 0 0 0 0 2 1 0 0 0 0 0 0 3 1 1 0 0 0 0 0 0 2

AET 4 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 3 2 1 0 0 0 0 0 0 3

FLC 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 4 4 1 0 0 0 0 0 0 5

TOTAL 0 0 0 0 0 0 0 0 0 11 3 0 0 0 0 0 0 14 9 5 0 0 0 0 0 0 14

Financial contribution

R0 R49 000 R49 000

Level

2020 2021 2022

African Coloure

d Asian White T African

Coloured

Asian White T

African Coloure

d Asian White

T


AET 1 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

AET 2 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

AET 3 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

AET 4 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

FLC 2 1 0 0 0 0 0 0 3 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

TOTAL 6 5 0 0 0 0 0 0 11 5 5 0 0 0 0 0 0 10 5 5 0 0 0 0 0 0 10


R38 500 R35 000 R35 000

NOTE: Most employees recruited above AET Literacy Levels (See Table 2: Q-Form). Emphasis to be placed on community AET

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2.3.2.4 Action plan

The action plan for AET at Spitskop is as follows:

Action needed Anticipated

completion Responsible person

Plan 2018 AET/FLC programme Feb 2018

HRD Superintendent

(Technical) AET awareness campaigns to promote participation Biannually

Conduct AET placement assessments as per requirements Biannually

Revise incentive scheme Annually HR Manager

Expand community learning opportunities on AET Annually HRD Superintendent

(Technical) Update IDPs and training matrix Ongoing

2.3.3 Learnerships

2.3.3.1 Overview

A learnership is a registered and accredited learning programme that includes practical work

experience, as well as theoretical studies, thereby integrating both workplace and institutional

learning. These programmes enable learners to work towards a qualification while being employed.

Spitskop have 7 learners who have completed the learnership programmes in engineering since 2015.

Learnerships may take anything up to three years to complete and they are offered to both internal

and external individuals (who are not employees at Spitskop). Internal learnerships enable learners to

work towards a qualification while being employed, whereas external learnerships are a means to

upskill and qualify individuals from the neighbouring communities. Error! Reference source not found.

below reflects the targets for both internal and external learnerships. Spitskop aims to have a 50:50

split. Learnerships are offered in fields such as mining operations, Metallurgy, Electricity, fitting,

boilermaking and diesel mechanics. ECM is unable to provide Opencast (Surface) Mining Learnerships

as the qualification falls outside of our scope of accreditation. The Opencast Mining Learnerships will

be outsourced to an external provider.

2.3.3.2 Targets

The mine will continue its current Learnership Programme in disciplines relevant to its operation. A

needs-based analysis will be conducted to identify learnerships that will be required within the next

five years. See Error! Reference source not found. for the five-year targets that indicate the actual

learners and new intake per annum.

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Table 4: Five-year plan for learnership enrolments

SPITSKOP

Type of learnership

2017 (baseline) 2018 2019

African Coloured Asian White

Ro

llove

r

T African Coloured Asian White

Ro

llove

r

T African Coloured Asian White

Ro

llove

r

T M F M F M F M F M F M F M F M F M F M F M F M F

Mining Exter-

nal

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Engineer-ing

0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1

Mining Inter-

nal

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Engineer-ing

0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1

TOTAL 0 0 0 0 0 0 0 0 2 2 1 1 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 2 2


R234 000 R234 000 R234 000

Type of learnership

2020 2021 2022

African Coloured Asian White R

ollo

ver

T


Ro

llove

r

T


Ro

llove

r

T


Mining Exter-

nal

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Engineer-ing

0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1

Mining Inter-

nal

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Engineer-ing

0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1

TOTAL 0 0 0 0 0 0 0 0 2 2 1 1 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 2 2


R234 000 R234 000 R234 000

19

2.3.3.3 Action plan

The table below contains the action plan for learnerships at Spitskop Mine:



Plan 2018 learnership targets Feb 2018

HRD Superintendent

(Technical)

Advertise and appoint learners as per set targets March 2018

Implement learnerships April 2018

Allocate learners in programmes to mentors Annually

Evaluate learner performance Monthly

Update IDPs and training matrix Ongoing

2.3.4 Skills training programmes

2.3.4.1 Overview

The mine’s skills training programmes offer employees the opportunity to acquire the necessary skills

and competencies to successfully implement their employment responsibilities. These programmes

are also designed to equip employees with the required capacity and skills to progress to higher levels

of employment at the mine. The skills training programmes will cover a range of important skills, and

will continue to focus on HDSAs.

A further deliverable of the skills training programmes is to provide portable skills that will serve

employees beyond their employment at the mine (see section Error! Reference source not found.).

All applicable skills training programmes implemented by the mine will be registered by the MQA.

2.3.4.2 Targets

Targets have been developed, based on the individual development plans of employees in the current

workforce, hard-to-fill vacancies and the skills needs of the mine. Error! Reference source not found.

provides provisional training targets for skills training programmes at Spitskop.

20

Table 5: Five-year plan for skills training interventions

SPITSKOP

Skills programme

2017 (Baseline) 2018 2019


Tota

l

African Coloured Asia

n White To ta

l

African Coloured Asian White To tal


Industrial Relations 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

SAP MM Requisitioner 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1

SAP HR Reporting 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1

SAP PM Artisan Training 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

SAP PM Foreman Training 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0

SAP PM Planner Training 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1

SAP HR Time Administrators’ Training 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1

Health and Safety Representatives’ Training

2 0 0 0 0 0 0 0 2 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 2

Bell Articulating Dump Truck 20 0 0 0 0 0 0 0 20 20 0 0 0 0 0 0 0 20 20 0 0 0 0 0 0 0 20

Front End Loader 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2

Excavator 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4

Mechanical Drill Rig 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2

Supervisor Development (Louis Allen) 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 1

First Aid 10 0 0 0 0 0 5 0 15 10 1 0 0 0 0 5 1 17 10 0 0 0 0 0 1 0 11

Fire Fighting 1 0 0 1 0 0 0 0 2 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1

HIRA Training 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11

TOTAL 53 1 0 1 0 0 6 0 61 52 1 0 0 0 0 8 1 62 51 2 0 0 0 0 4 1 58

Financial contribution R 152 500 R 155 000 R 145 000

21

SPITSKOP

Skills programme

2020 2021 2022


To tal African Coloured Asian White

To tal African Coloured Asian White

To tal


Industrial Relations 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1

SAP HR Organisational Management 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

SAP HR Personnel Administration 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

SAP HR Time Management Workplace Training 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

Health and Safety Representatives’ Training 1 0 0 0 0 0 1 0 2 1 1 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2

Bell Articulating Dump Truck 20 0 0 0 0 0 0 0 20 20 0 0 0 0 0 0 0 20 20 0 0 0 0 0 0 0 20

Front End Loader 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2

Excavator 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4

Mechanical Drill Rig 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 2

Supervisor Development (Louis Allen) 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 4

First Aid 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11

Fire Fighting 1 0 0 1 0 0 0 0 2 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1

HIRA Training 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11 10 0 0 0 0 0 1 0 11

TOTAL 54 1 0 1 0 0 4 1 61 55 1 0 0 0 0 2 0 58 56 0 0 0 0 0 2 0 58

Financial contribution R 152 500 R 145 000 R 145 000

M = Male; F = Female

22

2.3.4.3 Action plan

Skills development programmes offered are mostly on-the-job training provided during the

employees’ working hours. The line managers, in consultation with the skills training facilitators, are

responsible for identifying training needs in line with the needs of the company. The Skills Training

Programme will link with the Career Progression Plan, Mentorship Plan, Internship and Bursary Plan

and Employment Equity Plan.

The table below contains the action plan for skills training at Spitskop Mine:

Action needed Anticipated completion

Responsible person

Plan 2018 skills training Jan 2018

HRD Superintendent (Technical)

Communicate skills training Ongoing

Implement skills training Ongoing

Update IDPs and training matrix Ongoing

2.3.5 Portable skills training

2.3.5.1 Overview

Due to the fact that all mining operations will eventually come to an end, the mine will equip those

employees who have mining-specific skills with non-mining-related portable skills to enable them to

find other forms of livelihood in other sectors of the economy. Employees working at the mine can

mostly be considered as having mining-specific skills and would, therefore, be given the opportunity

to acquire non-mining-related portable skills. The focus is also on making these employees more

marketable to other mines, given their experience in mining. Spitskop Mine will assist employees in

acquiring self-marketing skills through the implementation of a detailed Portable Skills Training

Programme.

The portable skills training programme is voluntary, and all interested employees older than 49 years

have the opportunity to participate in the following training programmes, however training will not

be limited these programmes:

Generic Engineering Hand Tool Training

Oxy Acetylene awareness training

Arc Welding

Front End Loader

TLB Operator

Heavy Duty Truck

Crane: Truck-mounted (HIAB)

PC literacy.

Medium Voltage Training

Spitskop will explore additional training programmes based on employees’ interest and aspirations.

23

2.3.5.2 Targets

Error! Reference source not found. shows the five-year targets set for portable skills training. As mentioned, individuals will be offered a choice of the portable

skills courses they would like to take. Table 6: Five-year plan for portable skills training interventions

SPITSKOP

Programme

2017 (baseline) 2018 2019


Tota

l


Tota

l


Tota

l


Portable skills 5 1 0 0 0 0 0 0 6 6 4 0 0 0 0 0 0 10 5 5 0 0 0 0 0 0 10

TOTAL 5 1 0 0 0 0 0 0 6 6 4 0 0 0 0 0 0 10 5 5 0 0 0 0 0 0 10

Financial contribution R 15 000.00 R25 000.00 R25 000.00

Programme

2020 2021 2022


Tota

l


Tota

l


Tota

l


Portable skills 11 2 0 0 0 0 0 0 13 12 6 0 0 0 0 0 0 18 13 5 0 0 0 0 0 0 18

TOTAL 11 2 0 0 0 0 0 0 13 12 6 0 0 0 0 0 0 18 13 5 0 0 0 0 0 0 18

Financial contribution R32 500.00 R 45 000.00 R 45 000.00

M = Male; F = Female

24

2.3.5.3 Action Plan

The portable skills action plan is reflected in the table below


completion

Responsible person

Conduct annual needs analysis Ongoing

HRD Superintendent

(Technical) Source and appoint relevant service providers Ongoing

Implement training March 2018

Update training matrix Ongoing

2.4 Hard-to-fill vacancies

The mine will report annually on its hard-to-fill vacancies through the submission of Form R (Table 7

below). The positions below have been identified as possible hard-to-fill vacancies at Samancor ECM.

Table 7: Hard-to-fill vacancies as per Form R in Annexure II of the MPRDA Regulations

Hard-to-fill vacancies

Occupational level

Job title of scarce and critical skill

Main reason for inability to fill the vacancy

Intervention

Sen

ior

man

age

me

nt

Site Manager Opencast Experienced blasting ticket holders are scares

Head hunt/Career Progression

Pro

fess

ion

ally

qu

alif

ied

an

d

exp

eri

en

ced

spe

cial

ists

and

mid

-

man

age

me

nt

Supervisors/foreman Opencast Experienced blasting ticket holders are scares

Head hunt/Career Progression

2.5 Career Progression Plan

2.5.1 Overview

Career progression planning is the process during which the progression of individuals at the mine is

planned and shaped in accordance with Spitskop’s needs and objectives, and the employees’ potential

and their preferences.

The mine’s HRD Programme becomes a mechanism for developing employees’ capabilities to progress

along their chosen career paths, or to help them identify more suitable careers in the case of a

mismatch.

25

2.5.2 Career paths

The Career Progression Plan aims to illustrate a career path for employees, indicating preferred routes

for moving or changing from one role or position to another within a specific discipline. Specific skills

matrix plans have been developed for each career path through defining competencies, such as the

skills and experience required for the various job categories. Furthermore, competency profiles for

each position have been developed and candidates for these positions have been identified.

2.5.3 Career Progression Plan

The Career Progression Plan at Spitskop promotes career progression and succession opportunities

among its employees. This plan will be implemented in the following way:

The mine has a Career Progression Policy, Procedure and Programme, which are

operation-specific and contextually relevant to the employment levels, organogram,

workforce, skills needs and employment equity needs of the mine.

All employees will develop individual development plans (IDPs) that state their aspirations

and progression plans at Spitskop.

The Career Progression Plan, which identifies promising individuals, will be implemented

for a five-year period and reassessed annually.

This Plan is linked to the Skills Training Programme, Learnership Programme, Internship

Programme, Mentorship Programme and Employment Equity Programme.

Mechanisms are in place for individuals to progress from lower-skilled working levels to

higher-skilled and management levels, should job opportunities arise and positions

become vacant.

The Career Progression Plan ensures that the qualifications, aspirations, developmental

needs and potential capabilities of employees are accounted for in line with the needs

and capabilities of the mine.

26

2.5.4 Targets

Table 8: Career Progression Plan targets

SPITSKOP

Skills programme

2017(baseline) 2018 2019

African Coloure

d Asian White

Total African

Coloured

Asian White Total

African Coloure

d Asian White

Total


Talent management (IDPs) (includes learners, bursary holders and study assistance)

0 0 0 0 0 0 0 0 0 10 2 0 1 0 0 6 1 20 27 2 0 1 0 0 6 1 37

Fast-track programme 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 2 1 1 0 0 0 0 0 0 2

TOTAL 0 0 0 0 0 0 0 0 0 11 3 0 1 0 0 6 1 22 28 3 0 1 0 0 6 1 39

Financial contribution Part of operational budget Part of operational budget Part of operational budget

Skills programme

2020 2021 2022

African Coloure

d Asian White

Total African

Coloured

Asian White Total

African Coloure

d Asian White

Total


Talent management (IDPs) (includes learners, bursary holders and study assistance)

57 2 0 1 0 0 6 1 67 57 2 0 1 0 0 6 1 67 57 2 0 1 0 0 6 1 67

Fast-track programme 0 2 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 0 2 0 0 0 0 0 0 2

TOTAL 57 4 0 1 0 0 6 1 69 57 4 0 1 0 0 6 1 69 57 4 0 1 0 0 6 1 69


27

2.5.5 Action plan

The table below contains the action plan for career progression at Spitskop Mine.


completion

Responsible

person

Review educational profiles June 2018

HR Specialist

(Performance

Management)

Identify potential employees for talent pools June 2018

Review talent pools and update succession planning June 2018

2015 Engage with employees nominated for succession

planning to discuss further development requirements June 2018

Update training matrix and implement Annually

Allocate employees in succession planning to mentors Annually

Review mentorship relationships and development

progress Monthly

2.6 Mentorship Plan

2.6.1 Overview

Mentorship is a key process and tool in support of people development, employment equity, HRD

planning and performance management. It is a formal relationship between a mentor and a mentee,

and is established to enhance the mentee's career by building skills and knowledge. This is a

continuous process and ensures that the mentee’s potential is unlocked, which benefits everyone,

including the mine.

2.6.2 Targets

The Mentorship Programme will focus on mentoring and coaching the target number of employees

per programme contained in Table 9. These employees will be earmarked to progress into higher

positions or to build competency in a specific skill.

The Mentorship Programme will be integrated into the other HRD programmes (such as the Skills

Training Programme, Learnership Programme, Career Progression Programme, Internship Programme,

and Employment Equity Programme) in that it will help to uncover the needs of employees and identify

the correct programmes to meet those needs.

28

Table 9: Mentorship Plan targets at Spitskop

Programme

2017 (baseline) 2018 2019

African Coloured Asian White Total African Coloured Asian White Total African Coloured Asian White Total

M F M F M F M F M F M F M F M F M F M F M F M F M F M F M F

Mentee assignment

Succession pool candidates

0 0 0 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 4 0 2 1 0 0 0 0 0 0 2 1

IDP candidates 0 0 0 0 0 0 0 0 0 0 20 2 0 1 0 0 6 1 26 4 27 2 0 1 0 0 6 1 33 4

Learnerships 0 0 0 0 0 0 0 0 0 0 8 4 0 0 0 0 0 0 8 4 8 4 0 0 0 0 0 0 8 4

Bursary holders 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0

Internships 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 2 0

TOTAL 0 0 0 0 0 0 0 0 0 0 31 9 0 1 0 0 6 1 39 9 38 8 0 0 0 0 0 0 45 9

Mentor assignment

Mentors 0 0 0 0 0 0 0 0 0 0 8 2 0 0 0 0 0 0 8 2 8 1 0 0 0 0 0 1 8 2


Programme

2020 2021 2022

African Coloured Asian White Total African Coloured Asian White Total African Coloured Asian White Total

M F M F M F M F M F M F M F M F M F M F M F M F M F M F M F

Mentee assignment

Succession pool candidates

3 1 0 0 0 0 0 0 3 1 3 1 0 0 0 0 0 0 3 1 3 1 0 0 0 0 0 0 3 1

IDP candidates 57 2 0 1 0 0 6 1 63 4 57 2 0 1 0 0 6 1 63 4 57 2 0 1 0 0 6 1 63 4

Learnerships 8 4 0 0 0 0 0 0 8 4 8 4 0 0 0 0 0 0 8 4 8 4 0 0 0 0 0 0 8 4

Bursary holders 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Internships 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 2 0 1 1 0 0 0 0 0 0 1 0

TOTAL 69 8 0 1 0 0 6 1 75 10 69 8 0 0 0 0 0 0 76 9 17 8 0 0 0 0 0 0 75 9

Mentor assignment

Mentors 8 1 0 0 0 0 0 1 8 2 8 1 0 0 0 0 0 1 8 2 8 1 0 0 0 0 0 1 8 2


29

2.6.3 Action plan

The action plan for mentorship at Spitskop is indicated in the table below.


completion

Responsible

person

Identify employees in talent pools and succession

planning

June 2018

HR Specialist

(Performance

Management)

Identify suitable mentors for mentees in various

departments

June 2018

Conduct mentorship training and formalise relationships Ongoing

Conduct monthly mentorship follow-ups Monthly

2.7 Internship and Bursary Plan

2.7.1 Overview

Spitskop is well aware of the need to not only to assist its own employees with development

opportunities, but also members of the local community who require access to tertiary education

(bursaries) and experiential work (internships). The Internship and Bursary Plan serves to benefit the

individual, as well as the mine, by addressing the supply and demand of certain skills. The local

community and labour-sending areas are prioritised for the appointment of bursary holders and

interns. In addition to the Internship and Bursary Programme, Spitskop provides study assistance to

employees who wish to further their tertiary education.

2.7.2 Internship (Experiential Training) Plan

The mine’s Internship Programme offers an opportunity for members of the local community who

need work experience and exposure to the mining industry for the completion of their degrees or

diplomas. Additionally, individuals who wish to gain some work experience to diversify their resumes

in order to seek employment can also request experiential training at one of the Samancor ECM

operations. The programme caters for students requiring both practical mining and non-mining

experience. The Internship Programme will not only benefit young talent starting their careers, but

will also benefit the mine by growing its potential talent pool.

The application process will consist of screening and interviews, and will be communicated timeously

to the communities.

2.7.3 Bursary Plan

The objective of the mine’s Bursary Programme is to financially support high-potential young HDSA

students, in particular Women in Mining from the local community to attend tertiary institution. On

completion of their studies, the bursary holders will be considered first for suitable vacant positions

in order to fulfil their contractual duties to work for the mine for the time stipulated in the bursary

agreement. The Bursary Plan benefits the HDSA students, but also provides fresh, young talent to the

mine.

30

2.7.4 Study assistance

Study assistance is annually provided to employees at each Samancor ECM operation. The purpose of

providing funding internally is to develop and support employees. Supporting employees to develop

and further their education is one initiative to develop the human resources of the mine and empower

the staff. Targets are not developed for the five-year period, as study assistance is initiated by

employees and can therefore not be pre-empted.

31

Table 10: Five-year plan for internship and bursary targets (enrolment per annum)

SPITSKOP

Programme

2017 (baseline) 2018 2019

African Coloured Asian White T




Bursaries 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

Internships 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1

TOTAL 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 2 1 0 0 0 0 0 0 0 1

Financial contribution R 298 000.00 R 298 000.00

Programme

2020 2021 2022





Bursaries 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Internships 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1

TOTAL 1 1 0 0 0 0 0 0 2 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1

Financial contribution R 298 000.00 R 298 000.00 R 298 000.00

M = Male; F = Female; T=Total

2.7.5 Action plan

The table below sets out the action plan for bursaries and internships at Spitskop.

Action needed Anticipated completion Responsible person

Recruit and identify from labour-sending areas as per targets July 2018 HR Specialist

(Performance

Management) Facilitate practical exposure as per various programmes January 2018

Conduct regular updates and monitoring of students Ongoing

32

2.8 Employment Equity Plan

2.8.1 Overview

The mine fully subscribes to the principles of the Mining Charter and Employment Equity Act and strives to improve on the minimum legislated requirements.

The mine believes that employment equity is an integral part of building an effective and representative workforce to ensure equality among its future

employees.

Table 11: Employment equity statistics as at January 2018 as per Form S in Annexure II of the MPRDA Regulations

Occupational levels

SPITSKOP

Male Female Total

Disabled

A C I F W A C I F W M F

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

Senior management 0 0 0 0 0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management

2 0 0 0 0 1 1 0 0 0 4 0 0

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

4 0 0 0 6 0 0 0 0 10 0 0

Semi-skilled and discretionary decision-making

43 0 0 0 0 0 0 0 0 0 43 0 0

Unskilled and defined decision-making 9 0 0 0 0 1 0 0 0 0 10 0 0

TOTAL EMPLOYEES 58 0 0 0 6 2 1 0 0 0 67 0 0

2.8.2 HDSAs in management targets

Spitskop commits to complying with the employment equity targets and requirements in terms of the MPRDA, the Mining Charter and the Employment Equity

Act, and will strive to achieve and maintain the minimum requirements. The company believes that employment equity is an integral part of building an

33

effective and representative workforce, as well as of ensuring equality for all employees. Particular effort will be directed at identifying HDSAs and women

with management potential, and providing accelerated training and development initiatives to assist their progression.

Spitskop currently reports to the Mining Charter in respect to its employment equity progress, and will continue to do so annually. The Employment Equity

Plan for Spitskop will continue to be drafted in accordance with the requirements of the Employment Equity Act and will be published and submitted to the

Mining Charter on an annual basis. The objective of this plan is to ensure the maintenance of equity throughout its operation.

The information below (Error! Not a valid bookmark self-reference.) depicts the employment equity targets for the next five years.

Table 12: Five-year plan and targets for the participation of HDSAs at Spitskop

SPITSKOP

Occupational level

2017 (baseline) 2018 2019 HDSAs

Total HDSAs

Total employees

% HDSAs HDSAs

Total HDSAs

Total employees

% HDSAs HDSAs

Total HDSAs

Total employees

Percent-age

HDSAs M F M F M F

Top management 0 0 0 0 N/A 0 0 0 0 N/A 0 0 0 0 N/A

Senior management 1 0 1 1 100% 1 0 1 1 100% 1 0 1 1 100%

Middle management 2 2 4 4 100% 2 2 4 4 100% 2 2 4 4 100%

Junior management 4 0 4 10 40% 4 1 5 10 50% 5 1 6 10 60%

Total HDSA participation in management

7 2 9 15 60% 8 3 10 15 67% 8 3 11 15 73%

Occupational level

2020 2021 2022 HDSAs

Total HDSAs

Total employees

Percent-age

HDSAs

HDSAs Total

HDSAs Total

employees

Percent-age

HDSAs

HDSAs Total

HDSAs Total

employees

Percent-age

HDSAs M F M F M F

Top management 0 0 0 0 N/A 0 0 0 0 N/A 0 0 0 0 N/A

Senior management 1 0 1 1 100% 1 0 1 1 100% 1 0 1 1 100%

Middle management 2 2 4 4 100% 2 2 4 4 100% 2 2 4 4 100%

Junior management 6 1 7 10 70% 6 1 7 10 70% 6 1 7 10 70%

Total HDSA participation in management

9 3 12 15 80% 9 3 12 15 80% 9 3 12 15 80%

M = Male; F = Female; HDSA = Historically Disadvantaged South African

34

2.8.3 Participation of women in mining

In order to address the historical gender equality issues of South Africa, a gender equality policy and

plan will be developed and used to ensure that women are represented in positions that were

traditionally considered “male only”. These positions are also referred to as core mining positions. The

total number of women in mining is based on the permanent employee figures indicated in Table 11.

Table 13: Women participation in mining targets

Occupational level 2017

(baseline) Targets

2018 2019 2020 2021 2022

SPITSKOP Top management N/A N/A N/A N/A N/A N/A

Senior management N/A N/A N/A N/A N/A N/A

Middle management 50% 50% 50% 50% 50% 50%

Junior management 0% 10% 10% 10% 10% 10%

Semi-skilled and discretionary decision-making

0% 10% 10% 10% 10% 10%

Unskilled and defined decision-making

10% 20% 20% 20% 20% 20%

35

SECTION 3

LOCAL ECONOMIC

DEVELOPMENT PROGRAMME

Regulation 46(c)

36

3 LOCAL ECONOMIC DEVELOPMENT PROGRAMME (LEDP)

3.1 Overview

This Local Economic Development (LED) Programme contains details of the core activities,

programmes, targets, resources, facilitators, facilities, budgets and time frames for the

implementation of Samancor ECM’s LED Programme. The programme has been designed as a working

document to facilitate the appropriate implementation of the SLP.

Samancor ECM’s commitment to implement a sustainable community development initiative is

motivated by the requirement to participate in LED as intended in the SLP, and also to be recognised

as a preferred business partner and a valued corporate citizen.

The LED Programme will seek to promote Samancor ECM’s alignment and involvement in the LED

initiatives of the integrated development plans (IDPs) of the Fetakgomo Greater Tubatse Local

Municipality (FGTLM) and the Sekhukhune District Municipality (SDM). The following primary plans

will form the basis of Samancor ECM’s LED Programme:

An LED Project Plan

A Housing and Living Conditions Plan

A Procurement Plan

The focus of the Samancor ECM LED Programme from year 1 to 5 will be on the following:

Aligning Samancor ECM’s sustainable development plans with the FGTLM IDP and establishing

LED projects that focus on infrastructure development, basic service provision, poverty

eradication, skills development and the provision of education to communities

Increasing the mine’s HDSA-based and community-based procurement levels

Promoting the establishment of entrepreneurs among the household members of employees

and among other households in Samancor ECM’s host and labour-sending communities.

37

3.2 Background socio-economic information

3.2.1 Introduction

Samancor ECM is situated in the FGTLM in the Limpopo Province of South Africa, and contributes to

the Sekhukhune District Municipality (SDM) in Limpopo. A desktop background socio-economic study

on the immediate area of operation is provided in the socio-economic analysis below.

3.2.2 District and Local Socio-Economic Regional Analysis

In this section, the socio-economic data of the SDM and FGTLM will be analysed. The objectives of the

IDPs of the SDM and FGTLM relating to each aspect of the socio-economic environment of the

municipalities will also be explained.

The data has been augmented with information from the 2011 National Census data, as captured in

Gaffney’s Local Government in South Africa Handbook 2011–2013 and information from the

2011/2016 IDP documents of the GTLM.

3.2.2.1 Overview

The Limpopo Province is the fourth largest province in South Africa and has the fifth largest population

(4.9 million). Approximately 89% of the population live in rural areas, and the province has an

unemployment rate of 46%. Limpopo is rich in minerals such as copper, asbestos, coal, iron ore,

platinum, chrome, diamonds and phosphates. The provincial economy is growing, with primary

products and manufactured goods being marketed both locally and for export.

The FGTLM consists of 31 wards and approximately 166 villages. A large portion of the FGTLM is rural,

and it has only six proclaimed townships. The municipality has a council made up of 62 councillors,

comprising 31 ward councillors and 31 public relations councillors. It has a collective executive system

headed by the Mayor, while the Council is chaired by The Speaker elected in terms of sections 48 and

36 of the Municipal Structures Act (Act 117 of 1998). According to Statistics South Africa’s community

survey of 2011, the population figures of the area are estimated at 343 468, with 66 666 households.

The poverty rate of both the SDM and the FGTLM is significantly high at 67.9% and 70.16%,

respectively (Table 14). This indicates that the poverty rates of the FGTLM are slightly higher than

those of the SDM as a whole. Furthermore, 76% of the FGTLM’s population are living in a rural type of

area, while only 20.7% of the FGSDM as a whole are living in rural conditions. The extreme poverty

and rural conditions in the FGTLM indicate that LED interventions should be aimed at poverty

eradication and that the projects should be accessible to the people in the rural communities.

Table 14: Population overview

Population overview SDM FGTLM

Number Number

Total population 1 053 167 293 574

Municipality size (km²) 13 527.69 4 601.96

Density (/km²) 421.9 63.8

Total households 210 447 56 935

38

Population overview SDM FGTLM

Number Number

Average people per household 4.98 5.2

Poor households 145 183 39 943

Poverty rate 67.99% 70.16%

Area type ‒ rural 20.7% 76%

Urban 4.9% 24,4%

3.2.2.2 Population demographics

This section identifies the demographics of the local population with regard to race, age and language.

It is important to know what the demographic breakdown is to ensure that any LED projects and

empowerment interventions target the majority of the population in order to have a large-scale

impact.

As shown in Table 15, both the SDM and the FGTLM are dominated by black South Africans (99.0%

and 99.3% respectively), while the white population of the SDM (0.8%) and FGTLM (0.5%) outweighs

the other minority population groups slightly in both the municipalities. Therefore LED projects should

target the majority black population in order to have great impact on the ground.

Table 15: Population by race

Group SDM FGTLM

Number Percentage Number Percentage

Black 1 042 424 99.0 291 529 99.3

Indian or Asian 1 266 0.1 123 0.0

Coloured 531 0.1 518 0.2

White 8 946 0.8 1 403 0.5

Total 1 053 167 100 293 573 100

As indicated in Table 16, the individuals who fall into the economically active age group (labour force)

of both the SDM and the FGTLM are 54.8% and 56.4% of the population respectively. These figures

are not as high as desired, considering that this age group should be the majority of the population.

Conversely, the number of children under the age of 15 and adults over the age of 64 is significantly

high for both these municipalities. The age groups of the populations show that emphasis should be

placed on creating employment opportunities for the youth (individuals below 15 years) for the time

when they move into the economically active bracket. Unemployment may rise significantly if

employment opportunities are not created. A young population also implies high dependency ratios

and increased pressure on the portion of the population that is employed to support the dependent

and unemployed people.

Table 16: Population demographics of age

Age SDM FGTLM


0‒14 and over 64 years 476 039 45.2 128 132 43.6

Labour force (15‒64 years) 577 128 54.8 165 442 56.4

Total 1 053 167 100 293 574 100

39

Sepedi is shown to be the dominant spoken language in the district and local municipalities (Table 17),

with 76.2% and 90.2% of the inhabitants speaking this language in the SDM and FGTLM, respectively.

The significantly high proportion of Sepedi-speaking people, especially in GTLM implies that in order

for any development strategies within SDM and FGTLM to succeed, they must be sensitive to the

predominant cultural systems and social dynamics related to the Sepedi culture. These findings should

be taken into consideration in communication processes and the development of material, which

should be made available in the Sepedi language.

Table 17: Languages

Language SDM FGTLM


Afrikaans 8 672 0.8 2 604 0.9

IsiNdebele 46 376 4.0 350 0.1

IsiZulu 29 217 2.5 3 494 1.2

English 2 358 0.2 576 0.2

IsiXhosa 2 390 0.2 649 0.2

Sepedi 877 516 76.2 264 832 90.2

Sesotho 13 985 1.2 1 588 0.5

SiSwati 122 977 10.7 12 092 4.1

Xitsonga 21 103 1.8 6 476 2.2

Setswana 24 046 2.1 514 0.2

Tshivenda 1 816 0.2 188 0.1

Other 1 710 0.1 211 0.1

Total 1 152 166 100 293 574 100

3.2.2.3 Education

As seen in, an area of major concern is that 28.1% of people older than 21 in the SDM and 20.2% of

this group in the FGTLM have no schooling. This is an alarmingly high percentage, and AET should be

prioritised for these individuals. The majority of the labour force in the FGTLM has little education,

and therefore AET needs to be implemented and extended to those in the labour force.

In the SDM, only 14.6% of people older than 21 year have matric or higher qualifications (

Table 18). The FGTLM presents a similar case with a figure of 13.7%. This is an alarmingly low figure,

considering that the government strategy is to provide all learners with the opportunity to obtain a

matric certificate. These figures are below the national statistics, which indicate that just over 40% of

the youth pass matric. The educational levels of the population in the SDM and FGTLM should be

increased as a priority. If not, the unemployed population, who are most likely classified as poor, will

be lose employment opportunities due to a lack of capacity, and the unemployment rate may remain

unchanged.

40

Table 18: Educational levels of population older than 21 years

Group older than 21 SDM FGTLM


Degree 6 123 1.2 1 060 0.7

Post-matric diploma/certificate 2 112 0.4 676 0.5

Matric 64 788 13.0 17 742 12.5

Diploma/certificate (without matric) 15 036 3.0 5 187 3.7

Secondary schooling (without matric) 165 906 33.2 55 245 38.9

Primary schooling 105 334 21.1 33 440 23.5

No schooling 140 162 28.1 28 728 20.2

Total 499 461 100 142 078 100

As seen in Table 19, the majority of individuals currently attending school in the district and local

municipality is at primary or high school. There is currently a minority of people attending higher

education institutes such as college or university (1.1% in the SDM and 1% in the FGTLM). Surprisingly,

no one in the SDM or FGTLM is attending AET. This is an opportunity to sponsor AET learners, as well

as to provide bursaries for matriculants to enable them to attend tertiary institutions to further their

education. By improving one’s education, one increases the likelihood of obtaining employment.

Table 19: Current attendance at education institutions

Current attendance SDM FGTLM


Preschool 17 755 4.4 4 052 3.8

Primary school 192 076 47.4 53 741 49.8

Secondary school 188 446 46.5 48 063 44.6

College 2 693 0.7 903 0.8

University/university of technology 1 439 0.4 224 0.2

AET 0 0.0 0 0.0

Other 2 884 0.7 865 0.8

Total 405 293 100 107 848 100

3.2.2.4 Employment and economic positions of population

Table 20 indicates that in the labour force (15‒64 years), the employment rate in the FGTLM (24.2%)

is slightly higher than that in the SDM (21.6%). The unemployment rate in the FGTLM (27.5%) is also

higher than that in the DSM (21.4%). The number of economically inactive persons in the employable

age groups is significantly high in both municipalities. In the SDM, 57.1% of people are not

economically active, while this figure stands at 48.4% in the FGTLM (The high number of “not

economically active individuals” should be a concern, as this will put major strain on the employed

individuals. These figures clearly indicate a significant need among the populations of both the SDM

and the FGTLM for LED projects that promote the opportunities creation of employment

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Table 20: Employment levels

Employment status SDM FGTLM


Employed 120 470 21.6 38 738 24.2

Unemployed 119 115 21.4 44 063 27.5

Not economically active 318 313 57.1 77 521 48.4

Unknown 0 0.0 0 0.0

Total 557 898 100 160 322 100

Dependency

Age dependency ratios tell us how many young people (under 15 years of age) and older people (over

64 years of age) depend on the people of working age, classified as economically active (15‒64 years).

Approximately 476 039 (45.2%) people in the SDM are under 15 or over 64 years. In the case of the

FGTLM, 128 132 (43.6%) people are under 15 and over 64 years. As seen in Table 21, the age

dependency ratios for the SDM and FGTLM are respectively 82.5 and 77.4 people who are dependent

on every 100 people classified as economically active. When these ratios are combined with

unemployment levels, the dependency ratios of the SDM and FGTLM are respectively 758.3 and 644.6

people dependent on every 100 people classified as economically active (refer to Table 21).

The high dependency ratio places a significant burden on the employed individuals, job creation and

basic service provision to people in the SDM and FGTLM. These findings on dependency suggest a

need for the district and local municipalities in the area to implement programmes that cater for the

development of the youth. Human Resource Development (HRD) and Local Economic Development

(LED) strategies, for example, should focus on implementing skills development programmes and

creating income-earning opportunities that may reduce unemployment levels. The aim should be to

absorb the large youthful population into the economic sector.

Table 21: Dependency ratios for the SDM and the FGTLM

Group SDM FGTLM

Age dependency 82.5 77.4

Unemployment dependency ratio 758.3 644.6

The standard age dependency ratios for both the SDM and FGTLM have been calculated as follows:

Age dependency ratio = (population under 15 and population over 64) X 100 ÷ population between 15

and 64

1) SDM

= (476 039) X 100 ÷ 577128

= 82.5 persons per 100 economically active persons

42

2) FGTLM

= (128 132) X 100 ÷ 165442

= 77.4 persons per 100 economically active persons

The employment dependency ratios for both the SDM and the FGTLM, taking into account the

unemployment rates of 758.3 and 644.6 respectively, have been calculated as follows:

Employment dependency ratio = (population under 15 and population over 64) + (population between

15 and 64 that are unemployed + (not economically active population) X 100 ÷ population between 15

and 64 that are employed

3) SDM

= (476 039) + (119 115) + (318 313) X 100 ÷ (120 470)

=758.3 persons per 100 persons employed in the labour force

4) FGTLM

= (128 132) + (44063) + (77521) X 100 ÷ (38738)

= 644.6 persons per 100 persons employed in the labour force

Having taken the employment figures into consideration, the employment dependency ratio for the

SDM is higher than that of the FGTLM. The FGTLM ratio is 204.6, which means that 204.6 persons

depend on 100 employed persons. The ratio for the district is slightly higher at 269.2.

The income breakdown found in (Table 22) indicates that a significant 71.9% and 70.6% of individuals

in the SDM and the FGTLM, respectively, have no income. These rates are alarmingly high, considering

that these figures include social grants.

Table 22: Income

Income (including social grants) SDM FGTLM


R204 801 or more 76 0.0 0 0.0

R102 401–R204 800 828 0.1 112 0.0

R51 201–R102 400 222 0.0 46 0.0

R25 601–R51 200 1 130 0.1 425 0.2

R12 801–R25 600 5 840 0.6 1 462 0.5

R6 401–R12 800 22 719 2.3 5 545 2.0

R3 201–R6 400 29 278 2.9 12 967 4.6

R1 601–R3 200 33 594 3.3 15 229 5.4

R801–R1 600 102 959 10.2 24 644 8.8

R401–R800 44 231 4.4 12 173 4.3

R1–R400 42 310 4.2 9 921 3.5

No income 722 897 71.9 197 883 70.6

Total 1 006 084 100 280 407 100

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Table 23 indicates that the majority of social grants provided are child support grants (67.8% in the

SDM and 72.9% in the FGTLM), and the second most common are old-age pension grants (22.5% in

the SDM and 18.8% in the FGTLM). The institution grants in both the SDM and the FGTLM are very low

at 1.3% and 0.7% respectively.

Table 23: Social grant recipients

Social Grants SDM FGTLM


Old-age pension 26 545 22.5 5 087 18.8

Disability grant 7 197 6.1 1 517 5.6

Child support grant 79 808 67.8 19 768 72.9

Care dependency grant 1 618 1.4 360 1.3

Foster care grant 90 0.1 12 0.0

Grant-in-aid 376 0.3 11 0.0

Social relief 172 0.1 31 0.1

Multiple social grants 471 0.4 113 0.4

Institutions 1 472 1.3 201 0.7

Total 117 749 100 27 100 100

Table 24 indicates the employment in the SDM and the FGTLM per industry. The private household

industry employs the majority of individuals in both the SDM (32.7%) and the FGTLM (29.7). The figure

for the mining and quarrying industry is significantly higher in the FGTLM (22.7%) than in the SDM

(9.9%).

Table 24: Employment per industry

Industry SDM FGTLM


Agriculture-related work 7 714 6.4 1 576 4.1

Mining and quarrying 11 939 9.9 8 799 22.7

Manufacturing 7 753 6.4 2 528 6.5

Electricity, gas, water 882 0.7 101 0.3

Construction 6 749 5.6 1 643 4.2

Wholesale and retail 15 145 12.6 4 229 10.9

Transport and communication 4 008 3.3 1 326 3.4

Business services 6 071 5.0 2 244 5.8

Community services 20 774 17.2 4 773 12.3

Private households or other 39 433 32.7 11 518 29.7

Total 120 468 100 38 737 100

Housing and living conditions

The housing and living conditions in the SDM and FGTLM will be explored by studying housing

ownership, type of dwelling, energy used for lighting, sanitation, refuse removal, access to water and

communication means.

44

As can be seen in Table 25, in the SDM, a significant 73.7% of households own their houses and they

are fully paid off, while the corresponding figure in the FGTLM is only 20.9%. The number of rented

dwellings is higher in the SDM (6.3%), compared to the FGTLM (2.4%). Furthermore, a larger number

of houses are occupied rent-free in the SDM (15.6%) than in the FGTLM (2.9%).

Table 25: Households’ tenure status

Households by tenure status SDM FGTLM


Owned and fully paid off 15 8703 73.7 44 923 20.9

Owned but not yet paid off 8 405 3.9 476 0.2

Rented 13 629 6.3 5 069 2.4

Occupied rent-free 33 664 15.6 6 292 2.9

Other 1 010 0.5 176 0.1

Total 215 411 100 56 936 100

Table 26 indicates that the majority of the individuals in both SDM and FGTLM have their houses on

separate stands: 79.6% and 72.9% respectively. Traditional dwellings outweigh the other minor types

of dwelling in both the SDM (8.5%) and the FGTLM (11.4%).

Table 26: Households by type of main dwelling

Households by type of main dwelling SDM FGTLM


House on separate stand 167 579 79.6 41 506 72.9

Traditional dwelling 17 969 8.5 6 469 11.4

Flat in block of flats 344 0.2 38 0.1

Town/cluster/semi-detached house 328 0.2 43 0.1

House/flat/room in backyard 5 174 2.5 968 1.7

Informal dwelling in backyard 2 733 1.3 1 710 3.0

Informal dwelling NOT in backyard 9 466 4.5 4 711 8.3

Cottage on a shared property 3 514 1.7 629 1.1

Caravan/tent 34 0.0 34 0.1

Private ship/boat 87 0.0 0 0.0

Workers’ hostel (bed/room) 2 610 1.2 631 1.1

Other 608 0.3 196 0.3

Total 210 446 100 56 935 100

The provision of electricity in the SDM is slightly better than that in the FGTLM. As seen in Table 27,

78.8% of the households in the SDM have access to electricity for lighting, compared to 66.1% of the

FGTLM. The number of households in the SDM that use candles for lighting is 16.9%, while 28.5% of

households in the FGTLM use candles. Although most households use electricity for lighting, electricity

provision for the households that don’t use electricity for lighting still needs to be prioritised by the

local government.

45

Table 27: Energy for lighting

Lighting type SDM FGTLM


Electricity 165 884 78.8 37 633 66.1

Gas 141 0.1 36 0.1

Paraffin 7 484 3.6 2 492 4.4

Candles 35 640 16.9 16 199 28.5

Solar 23 0.0 15 0.0

Other 1 279 0.6 561 1.0

Total 210 451 100 56 936 100

The provision of adequate sanitation and formal waste removal is severely lacking and limited to the

primary economic centres in the SDM and FGTLM municipalities. This poses a health risk to people, as

it increased the risk of spreading diseases, such as cholera and other communicable diseases.

In terms of sanitation and waste removal, Table 28 indicates that the FGTLM area is in a similar

situation as that of the SDM as a whole. In the SDM, 6.6% of the population do not have access to

sanitation, with the figure being approximately 10.1% for the FGTLM. Some 7.2% of households in the

FGTLM have access to flush toilets, and 6.4% of households in the SDM enjoy this privilege. Most

people in the SDM (70.3%) and the FGTLM (70.5%) use pit latrine toilets.

The portion of the population who does not have any form of access to a sanitation service, and the

majority who still makes use of the pit latrine/bucket system, is further indicative of poverty and a low

level of access to basic services (Table 28). This represents a need for local economic development in

these areas, which should be a priority issue to be addressed by the respective IDPs.

Table 28: Sanitation

Type SDM FGTLM


Flush toilet 13 554 6.4 4 078 7.2

Flush toilet (with specific tank) 2 164 1.0 732 1.3

Chemical toilet 46 0.0 0 0.0

Ventilation-improved pit toilet 21 895 10.4 3 680 6.5

Pit latrine 147 977 70.3 40 158 70.5

Dry toilet 10 530 5.0 2 515 4.4

Bucket latrine 309 0.1 0 0.0

None 13 974 6.6 5 773 10.1

Total 210 449 100 56 936 100

Legislative standards require that communities have at least 20 to 30 litres of clean safe water per

person per day within 200 metres of their household. Error! Reference source not found. reveals that

the majority of the SDM and FGTLM populations has limited access to piped water supply inside their

yards: 8% in the SDM and 8.4% in the FGTLM. The provision of boreholes to supplement water supply

is one area that can be addressed by LED projects. The relatively low number of households that has

access to potable piped water supply in their dwelling or property, and the high number of households

46

that has to travel some distance to fetch water, are also suggestive of poverty and a poor level of basic

service provision.

The level of access to water by households in the FGTLM and SDM is indicative of the many rural areas

that do not have access to potable water. It seems that both the local and the district municipalities

require more capacity, resources and support in order to provide households with an improved water

supply, as well as other basic services.

shows that most residents in the SDM and FGTLM either have their own waste disposal dumps, or do

not have access to disposal facilities. Approximately 77.4% and 76.9% of the households in the SDM

and the FGTLM, respectively, use their own refuse dumps. Approximately 12.9% of households in the

SDM and 13.4% in the FGTLM do not have access to a disposal site.

Table 29: Refuse removal

Type SDM FGTLM


Municipal weekly 16 214 7.7 4 023 7.1

Municipal other 1 982 0.9 635 1.1

Communal dump 2 121 1.0 790 1.4

Own refuse dump 16 2875 77.4 43 791 76.9

No disposal 27 097 12.9 7 641 13.4

Unknown/other 159 0.1 55 0.1

Total 210 448 100 56 935 100

The low number of formal waste dumps is a further indication of the low level of basic service provision

and of underdevelopment in the SDM and FGTLM municipalities. What is clear, is that there is a lack

of appropriate sanitation services and access to refuse services in the SDM and FGTLM. Furthermore,

the level of service provision differs greatly between town areas and rural areas, where these services

are virtually non-existent.

Table 30: Access to water

Type SDM FGTLM


No access 0 0.0 0 0.0

Piped water inside dwelling 16 860 8.0 4 807 8.4

Piped water inside yard 31 076 14.8 6 986 12.3

Piped water outside yard 87 557 41.6 29 496 51.8

Spring 3 592 1.7 108 0.2

Borehole 15 336 7.3 3 887 6.8

Rain water tank 2 947 1.4 233 0.4

Dam/pool 6 933 3.3 126 0.2

River/stream 31 986 15.2 9 216 16.2

Vendor 11 247 5.3 1 671 2.9

Other 2 913 1.4 406 0.7

Total 210 447 100 56 936 100

47

Legislative standards require that communities have at least 20 to 30 litres of clean safe water per

person per day within 200 metres of their household. Error! Reference source not found. reveals that

the majority of the SDM and FGTLM populations has limited access to piped water supply inside their

yards: 8% in the SDM and 8.4% in the FGTLM. The provision of boreholes to supplement water supply

is one area that can be addressed by LED projects. The relatively low number of households that has

access to potable piped water supply in their dwelling or property, and the high number of households

that has to travel some distance to fetch water, are also suggestive of poverty and a poor level of basic

service provision.

The level of access to water by households in the FGTLM and SDM is indicative of the many rural areas

that do not have access to potable water. It seems that both the local and the district municipalities

require more capacity, resources and support in order to provide households with an improved water

supply, as well as other basic services.

3.2.3 Action plan indicating the zone of focus of the Samancor ECM LEDP

The zone of impact and focus areas of the Samancor ECM LEDP are described below.

Action Plan 1: The host municipal area, as well as the primary labour-sending areas of Samancor ECM

is FGTLM, in SDM. The Samancor ECM LED will focus on this area.

Action Plan 2: The remaining employee households from Samancor ECM are widely distributed among

other areas (refer to Table 1). Therefore the SLP initiatives will further seek to empower those

employee households to engage in LED activities in the relevant local municipalities.

3.2.4 Socio-economic impact of operation ‒ Regulation 46(c)(ii)(b)

3.2.4.1 The impact

During the operation of a mine, local communities are provided with jobs and input services to the

mining operation. They also benefit from direct and indirect spending by the mine. Samancor ECM will

have a beneficial socio-economic impact on the region and the local communities. The following is a

summary of key contributions that will be made by the company:

Job creation, employees and their households:

Spitskop employs approximately 67 employees (including sub-contractors), which translate into

approximately 2 375 individuals who are affected by direct and indirect income from breadwinner

support. These employees and their households are benefiting from salaries and other employment

benefits.

Considering that Spitskop has an expected mining life of 14 years, these benefits should be sustainable

for the medium-term future. In order to ensure that these constructive impacts do not become

destructive upon closure, it is important for Samancor ECM to plan towards the mine’s eventual

closing and to put mitigating measures in place. These will assist employees to find alternative sources

of income outside Samancor ECM and mining. The establishment of a detailed Skills Training

Programme is a crucial part of this process.

48

Surrounding and labour-sending communities:

As explained, Spitskop workforce comes from a wide distribution of labour-sending areas. The

incomes earned by these employees translate into spending power, benefiting businesses and

entrepreneurs not only in the area surrounding the operation where the employees spend their

working week, but also in the economies at their homes. Samancor ECM’s spending on goods and

services also contributed significantly to the local economy (refer to “Procurement” in section Error!

Reference source not found.

Small, medium and micro-enterprises (SMMEs) and local contractors:

Spitskop will establish an Enterprise Development Strategy (see section 3.4.4), according to which

preferred supplier status will be given to local SMMEs, HDSA entrepreneurs and local service

providers. It will focus on the provision of capital goods (where possible), consumables and service

delivery. This programme aims to empower these parties to partake in the business opportunities

available through Samancor ECM, as well as via other big enterprises in the area.

Poverty eradication:

Apart from the positive impact Spitskop will have on the livelihoods of the households of their

employees in the neighbouring and labour-sending communities, the company will contribute

significantly to the upliftment of the local communities surrounding the operation. Spitskop will aim

its constructive input through LED initiatives in order to coordinate efforts to bring about sustainable

change. In addition to its contribution to the economy, Spitskop also pays significant amounts in

annual taxes. These are utilised by government for many purposes, one being the distribution of

wealth, which alleviates poverty in the poorer communities.

3.3 Infrastructure development, poverty eradication and welfare creation

projects

3.3.1 Approach

LED is an approach towards economic development that allows and encourages local communities,

government and the private sector to work together to achieve sustainable economic growth and

development. This promotes economic benefits and an improved quality of life for all residents in the

local municipal area. Spitskop aims to assist local government and community structures to implement

their own development priorities and realise new economic opportunities through the profitable

operation of the mine in the FGTLM and SDM.

3.3.2 Baseline situation

At present, Spitskop is involved in significant poverty eradication and infrastructure development

projects within the FGTLM, SDM and other major labour-sending communities. To date, Samancor

ECM has been involved in substantial Corporate Social Responsibility (CSR) activities in the

surrounding communities. These CSR activities relate primarily to the following categories:

Donations in kind to schools, charities, recreational and sports clubs, community-based

organisations (CBOs) and non-governmental organisations (NGOs)

49

Repair of infrastructure, such as schools, water pipelines and grading of roads

Educational support in the form of study grants and bursaries to selected people in the

surrounding communities

Support of orphanages, food schemes and functions

Donations to local government and tribal authorities

A detailed file of the CSR activities of Spitskop is available from the company’s HR Department.

The FGTLM has established an LED Forum aligned with the municipality’s IDP. However, Samancor

ECM has a representative serving on the Steelpoort Valley Producers’ Forum, which is a partnership

between Samancor ECM and other mining companies in the FGTLM to identify and implement LED

projects. Spitskop has consulted in detail with the IDP and LED managers of the FGTLM and SDM on

the alignment of the Spitskop SLP with the IDPs and on the poverty eradication and infrastructure

development projects.

3.3.3 Action plans and projects

3.3.3.1 Project selection and implementation mechanism

Spitskop will continually assess the current and projected IDP and LED projects/initiatives in the SDM

and FGTLM. At the end of each five-year period, the LED Plan will be reviewed and a new five-year

plan will be compiled.

When considering LED projects in the future, Spitskop will use the following questions to guide the

selection and formulation of projects:

How does the project integrate with local, regional and governmental IDPs or LED initiatives?

How will the project eradicate poverty and uplift the community, i.e. who are the beneficiaries

and how many are there?

Does the project assist in the provision of basic services and social welfare projects?

Is this programme viable, and required by the potential beneficiaries?

Spitskop have used the “filter criteria” in the LED project sub-plan to select projects. The Spitskop LED

projects sub-plan will focus on implementing the following mechanisms:

Integrating Spitskop SLP activities into the IDPs of the FGTLM and SDM IDPs and the

established LED Forum

Assisting in implementing LED projects and/or programmes identified in the SDM and FGTLM

IDPs, in partnership with local government, business and affected communities

Implementing selected poverty eradication, infrastructure development and welfare creation

projects that meet the criteria of the company

Undertaking and supporting identified SMME creation initiatives in surrounding and affected

communities, where these are feasible and appropriate

50

Providing HDSAs, who possess the required technical know-how or ability, with a preferred

supplier status in all three levels of procurement, namely capital goods, consumables, and

services.

Addressing the priority needs of employee households (basic services, housing, road

infrastructure) through:

o Implementing infrastructure development projects

o Increasing the access of employee households to development credit and assets

o Empowering local black business

Partnering with local government and communities ‒ by means of public-private partnerships

‒ in the identification of LED initiatives;

Implementing a portable skills programme that could contribute to the empowerment of

employee household members as a means to achieving sustainable development

Developing a healthcare strategy with the aim to promote access to healthcare for employees

Reviewing LED activities on an annual basis and the formulation of five-year plans

Implementing action steps as indicated in Error! Reference source not found. and

Implementing the LED Projects in section

3.3.3.2 Local Economic Development Project: Community Skills Centre

The aim of Local Economic Development is to diversify the local economy and reduce the dependency

on mining. Spitskop together with local communities have developed a plan to introduce new skills

that will benefit the local people and enable them to create small businesses which will create jobs as

well as diversify the Local Economy. According to Table 16 the EAP for the area is about 56.4% and the

unemployment rate is 27.5% (Table 24) and the majority of the unemployed are the youth. The

demographics makes the area more susceptible to unrests and therefore unstable. The training

programmes are designed with the youth in mind. Spitskop will utilise the Enterprise Development

budget to support the establishment of Small Business for the graduates.

Samancor Eastern Chrome Mines will contribute towards the sustainability of the project by utilising

the centre for Portable Skills training of its employees.

51

Project: Spitskop LED Project:

Project Name: Spitskop Mine: Contribution towards the construction of the bridge at Ngwaabe

Project Category: Road Infrastructure Development

Introduction to Project:

The improvement and replacement of the steel-bridge in Ga-Malekane Village to a more safe and efficient bridge is a significant project. The project will be jointly funded by government and various mining houses, including Samancor Tweefontein Mine. The project is intended to improve traffic in and out of the surrounding villages along Tubatse River in Ga-Malekane Village.

Project Objectives: Improve the current dilapidated steel bridge Deliverables Year 1 ( 2020) Budget

Measurable Deliverables: Contribution towards the project R4 000 000

Deliverables: Year 2 (2021)


Deliverables: Year 3 (2022)


Total Budget R12 000 000

Provisional Project Start

Date: Upon approval

Provisional Project End Date: 31 December 2024

Target Group/ Beneficiaries: Malekane, Kalkfontein and Ngwaabe villages

Number of Jobs Created: To be determine by Scope of Work

52

3.3.3.2 Enterprise and Supplier Development

The need for job creation and poverty alleviation for the Fetakgomo Greater Tubatse

communities has been highlighted during consultations with stakeholders from local

government. Spitskop has considered a number of job creation and poverty alleviation strategies,

and the mine is committed to supporting entrepreneurs in starting up their own businesses and in

procuring from them. Various procurement outsourcing services (potential start-up opportunities)

will be investigated that could benefit the wider community. These include but not limited to the

following:

Security services

Civil and Construction

Gardening services

Basic civil infrastructure and plumbing

Laundry services

Transport services for goods and passengers

Bed and breakfast for contractors

Corporate Social Investment projects

Building Maintenance and Cleaning

The Spitskop SMME supporting strategy and Enterprise Support Plan are based on the following

principles and actions:

Focusing specifically on supporting emerging SMMEs in the affected communities, which will,

in turn, create employment opportunities

Facilitating the support of various SMMEs in communities that are not reliant on work from

the mining industry, and may act as an alternative to mining-dependent livelihoods

Where possible, outsourcing various contracting opportunities to enterprises operating in

surrounding communities.

The steps in Table 38 will be implemented to generate a successful Enterprise Development Plan.

Criteria for the selection of viable SMME alternatives

The following specific criteria will be applied when selecting the Spitskop SMME development

initiatives:

The programme should fall in the provincial socio-economic development growth strategies.

The programme should meet the requirements of South African legislation and, in particular,

the MPRDA, BEE Act as well as programmes such as National Development Programmes, Black

Industrialist and Mining Phakisa.

The programme should be sustainable and be able to continue once support from Spitskop

ends.

53

In line with the above, Samancor ECM will contribute by supporting SMME development in the SDM

as part of the MQA’s SMME Partnership Project with 13 district municipalities in South Africa. The

District Municipality Partnership project by the MQA is intended to support the LEDPs in the district

municipalities by providing skills development and support to ex-mineworkers in South Africa. The aim

is to provide economic growth, poverty reduction, and job creation through skills development. The

training programmes are in line with SLP initiatives and linked to the district municipalities’ LEDPs.

Existing and innovative strategies are expanded to provide ex-mineworkers with needs-driven skills,

which include AET and the development of SMMEs.

The SETA has identified the provision of AET programmes and business skills training and support to

ex-mineworkers as a priority in supporting SLPs because of its direct linkage with government’s

Integrated Rural Development Strategy, and its wider reach across all provinces of South Africa. An

awareness programme on HIV/AIDS is also integrated into the training programme.

The action plan for the Enterprise Development Support Plan is as follows:

Enterprise Development Support Plan



Identify opportunities for SMMEs in the mine Ongoing Procurement

Superintendent

Identify companies in the communities to be

invited for tenders

Ongoing Contract/Procurement

Department

Assist with training, commercial skills,

technical skills and professional accreditation

(ISO)

Ongoing Contract/Procurement

Department

Assist with the monitoring of business legal

documentation, tax clearance, letters of good

standing and BEE certificates

Annually Contract/Procurement

Department

Ensure big businesses subcontract small

businesses (measures in place before

awarding the tenders)

Ongoing Procurement

Superintendent

3.4 Measures to address housing, living conditions and nutrition ‒

Regulation 46(c)(iv)

3.4.1 Introduction

South Africa has faced a legacy of discrimination in relation to gender, race and disability, which has

denied certain people access to education, employment, promotion, housing and basic living

standards. The service provider has an approach to empower its employees by offering a housing

54

allowance. It will be the affected employees ‘opportunity to utilise the housing allowance to its own

benefit by purchasing accommodation or renting a property.

3.4.2.3 Healthcare

Regulation 46(c)(v) requires that mines put measures in place to ensure that employees have

adequate access to well-balanced diets and meals. Spitskop will assess and explore various measures

to sustain the healthcare of employees and will implement those that yield a high impact.

The mine will address the healthcare issues of its employees by means of the following measures:

Utilising the services of a nurse who provides information and care on occupational health

matters to employees

Partnering in the government’s Strategic HIV/AIDS Intervention Programme involving

communities and employees

Initiating an HIV/AIDS awareness campaign biannually

Initiating voluntary counselling and testing annually

Creating awareness among employees and their dependants to use primary healthcare

facilities established by the local government in the area

Investigating means to improve access to primary healthcare for all employees, as well as

their registered dependants, including those in major labour-sending areas

Regularly assessing the quality, cost and appropriateness of services and the standards or

effectiveness of medication provided at the mine clinic

3.4.2.4 Measures to improve nutrition

An action plan has been designed to implement measures to address the nutrition of employees. It is

as follows:



Conduct an assessment on current employee nutrition JUNE 2018

SHEQ and HR

Superintendent

(Operations)

Design a nutrition plan based on the results of the

assessment SEPTEMBER 2018

Implement a nutrition plan JANUARY 2019

Monitor and evaluate the implementation of the plan Ongoing

The following measures will be implemented by Spitskop with regard to nutrition:

55

Improving the nutrition of its employees in accordance with the standards set out by the

Chamber of Mines and the nationally accepted health standards, through ensuring the

following:

o The nutritional shake is provided to all underground shift operators each morning

o Equitable access to all employees to food provision during the working day/night

Educating employees and their families on the importance of adequate and proper nutrition,

by means of a nutrition awareness plan.

3.5 The Procurement Progression Plan and its implementation for HDSA companies in terms of

capital goods, services and consumables

Spitskop recognises the need to redress the imbalances of the past. The company regards BEE to be one of the supporting pillars of the transformation process in South Africa and recognises that BEE is vital in meeting the expectations of the South African Mining Charter. The company recognises that procurement provides an ideal platform for launching a definitive drive towards economic empowerment by HDSAs. The company intends to take advantage of this initiative.

3.5.1 Approach

The Procurement Department of Spitskop falls under Shared Services. Due to the nature of all

the ECM operations and close proximity to one another, the same vendors and services are

used for all the ECM operations, or those that require the specific service/products.

Procurement is therefore recorded by Samancor ECM as a whole. The targets are set for

Samancor ECM as a collective unit, and all the operations will report on the same

achievement.

A Preferential Procurement Policy has been developed that clearly states the company’s

commitment to BEE. In terms of the Mining Charter, the policy specifically focuses on procurement

from HDSA vendors and promotes new opportunities for meaningful participation by HDSA

companies in Samancor ECM’s procurement spend. The policy focuses on the following

methodology:

The company will implement measures to promote, affirm and give preference to, and

advance procurement to persons who have been subjected to unfair discrimination in the

past. The company acknowledges the need to meaningfully expand opportunities for HDSAs

to enter the minerals industry, and to benefit from the exploitation of the nation’s resources.

The company will use procurement as one of the primary mechanisms to influence LED in the

communities affected by its operations. Where preferred procurement is not possible due to

a lack of capacity in local communities, local people will be provided with training

opportunities.

56

The company’s vision is to identify, develop and promote the creation and sustainability of

businesses operated by HDSAs through the mechanism of procurement. The objective is to

foster entrepreneurship in communities adjacent to its mining operations by increasing the

level of participation of HDSA suppliers in the mainstream of the resources and resources-

related industries.

New suppliers will be required to disclose information on their ownership and control, and

internal BEE programmes.

Samancor ECM will put measures in place to monitor and verify the status quo of various

suppliers and to ensure that such information is reliable.

Preference will be given to products supplied and services rendered by HDSA suppliers from

local communities in the FGTLM and SDM, and then other areas in Limpopo.

The company will encourage suppliers to form partnerships or joint ventures with HDSA

supplier companies if no HDSA company tenders to supply the required goods or services.

Tender requirements will be comprehensively communicated to HDSA companies.

Aspiring HDSA vendors will be assisted and mentored in the formulation of appropriate

business plans.

3.5.1 The baseline situation

In line with the company’s Procurement Policy, Samancor ECM has compiled a Procurement Plan.

The levels of HDSA procurement for Samancor ECM can be seen in Form T, contained in

APPENDIXiII: FORM T. A summary of the total spend and HDSA spend for capital goods,

consumables and services is reflected in Table 31. This form will be updated on an annual basis to

reflect progress. It can be seen that the total spend by Samancor ECM on HDSA companies is 53%

in terms of the classification system given in the procurement plan (Error! Reference source not

found.).

Procurement is used by Samancor ECM as one of the primary mechanisms to implement LED in

the communities affected by its operation. Where preferential procurement is not possible due

to a lack of capacity in local communities, local people will first be provided with training

opportunities.

Table 31: Current level of spend by the company on BEE or HDSA vendors

Category 2017 spend on HDSA vendors

Capital 47%

Services 66%

Consumables 64%

3.5.2 Action plan

57

Samancor ECM will provide HDSA and BEE companies and enterprises with preferred supplier

status in all three levels of procurement, namely capital goods, consumables, and services.

This will be done as far as possible, given the potential lack of available services and necessary

skills in the local area. Samancor ECM exceeded the Mining Charter targets for 2014 for capital

goods and services, but fell short for consumables (Error! Reference source not found.). The

five-year targets are depicted in Error! Reference source not found..

Table 32: Targets for increasing HDSA suppliers

Category spend

(Percentage)

2017

(baseline) 2018 2019 2020 2021 2022

Capital goods (40%) 47% 47% 48% 49% 50% 50%

Consumables (50%) 64% 64% 64% 64% 64% 64%

Services (70%) 66% 67% 68% 69% 70% 70%

Targets are based on the Mining Charter, and will be updated as the Charter is amended.

The action plan for implementing the Samancor ECM Procurement Plan and measures contained in

this section is below.

Action Anticipated


Conduct workshop with identified enterprises and

potential suppliers Annually Procurement Superintendent

Set annual targets for local contracts/orders to

SMMEs Ongoing Procurement Department

Transform the supply chain based on BEE

Requirements and targets

Ongoing

Procurement Department

Refer potential new SMMEs to enrol in mentorship

programmes Ongoing Procurement Superintendent

Refer graduates from mentorship programme to local

mines for tender opportunities Ongoing Procurement Superintendent

ECM Spitskop Mine 2018-2022 SLP

58

SECTION 4

PROGRAMME FOR MANAGING

DOWNSCALING AND

RETRENCHMENT

Regulation 46(d)


59

4. PROGRAMMES FOR MANAGING DOWNSCALING AND

RETRENCHMENT

4.1 Approach

This section contains the strategic activities that form the basis for the Spitskop Downscaling and

Retrenchment Plan applicable to the workforce. Please refer to the Supporting Downscaling and

Retrenchment Sub-plan for Spitskop.

The Downscaling and Retrenchment Plan seeks to implement measures that may mitigate the adverse

social impacts caused by eventual downscaling, retrenchment and mine closure. The following key

strategies have been established and are focused on in the SLP:

Establishing a Future Forum (FF)

Mechanisms to save jobs and avoid downscaling and retrenchment

Measures during downscaling and retrenchment

Alternative livelihood opportunities and integration with the IDP

Integration of core contractors

Apart from the establishment of the FF, the remainder of the mechanisms, although they relate closely

to the HRDP of Spitskop, will only be initiated when downscaling or large-scale retrenchments are

foreseen, for example, if the ongoing viability of the mine is threatened. Spitskop will follow the

procedures for downscaling and retrenchment as set out by the DoL and the Labour Relations Act,

referred to in the following sections.

4.2 Establishing a Future Forum (FF)

The establishment of an FF is required under Regulation 46(d)(i) of the MPRDA. An FF is a site-specific

labour management body that will focus on the implementation and monitoring of the SLP. The

purpose is to provide a formal vehicle where all affected parties can consult each other and discuss

challenges and possible solutions to problems facing the mine that may have the potential to lead to

possible retrenchment in the future.

Spitskop has an established culture of consultative management with its employees through

workplace management consultation committees, union consultation, the Training Committee and

the Equity Forum. The strategies and the mechanisms for implementing the above objectives will

largely be managed through an FF. The key mandate for the FF will be as follows:

Identify and analyse issues, problems, challenges and solutions surrounding job losses and

retrenchment management in good time for mine closure.

Provide a channel of communication between management, employees and their

representatives.


60

Ensure that valuable inputs from the key stakeholders are utilised to develop an appropriate

and, more importantly, acceptable plan of action for production and employment turnaround

strategies, as well as the inevitable downscaling period.

To implement this plan of action, it has to be agreed upon by both the employer and worker

parties.

Continuously assess and report on the success and progress of all job loss management and

retrenchment management programmes implemented during the closure, and subsequently

the post-closure period, through the annual SLP reports.

4.3 Mechanisms to save jobs and avoid a decline in employment

“Organizations have to retrench workers from time to time for economic reasons and to remain

globally competitive. This is one of the worst things that can happen to a worker that affects his or her

whole life. It is therefore important that employers should first make sure that no other viable options

to achieve operational requirements are available before considering downscaling of workers.” (SLP

guidelines for the mining and production industries).

If challenges arise that may lead the mine to downscaling or retrenchment, it will develop and

implement turnaround strategies and mechanisms to save jobs, prevent unemployment and avoid

downscaling. This will be done through the following measures:

Seeking to prevent retrenchments from taking place, where possible

Utilising the FF to identify strategies to prolong the life of the mine or avoid retrenchments

and downscaling

Consulting with the DoL, the DMR and surrounding mining companies to assess any potential

opportunities to mitigate the effects of retrenchment or closure

Certain processes will be followed when prevailing economic conditions cause the profit-to-

revenue ratio of the mine to drop below 6% on average for a continuous period of 12 months:

o Consultations – the consultation process in terms of section 52 (1) of the act

o Implementing section 189 of the Labour Relations Act, 1995

o Notification to the Minerals and Mining Development Board, following the notification

process to the board in terms of section 52(1)(a) of the act

o Complying with the Minister’s directive and confirming how corrective measures will be

taken

4.3.1 Consultation processes

The consultation process to save jobs, and avoid job losses and a decline in employment will be

managed by the mine in terms of the provisions of sections 189 and 189A of the Labour Relations Act,

1995 (as amended).


61

4.3.1.1 Implementing section 189 of the Labour Relations Act, 1995 (as amended)

Any downscaling or retrenchment will be done in terms of sections 189 and 189(A) of the Labour

Relations Act. In this regard, the following will apply:

1. The Labour Relations Act prescribes a 60-day consultation process.

2. In terms of the requirements of section 189 and 189(A), the mine needs to enter into an

agreement with unions representing the workforce. This agreement should specifically

address the following:

a. Prevention of forced retrenchments

b. Voluntary separations (early retirement and voluntary retrenchment packages)

c. Redeployment of employees

3. Company assistance to alleviate the negative effects of retrenchment includes the following:

a. Pursuing alternative employment opportunities

b. Financial advice

c. Counselling services

d. Provision of entrepreneurial skills

e. Training opportunities, including re-skilling

f. Assistance with continuing medical care

g. Recall of retrenched employees, if required by the mine

4.3.2 Notification to government authorities

As planning for the Social and Labour Plan and its associated job loss and retrenchment management

programmes commences, the DoL and the DMR (specifically the Minerals and Mining Development

Board in accordance with section 52(1)(a) of the act) will be notified.

The government authorities will be given notice of the time frame for the closure process, as well as

the ongoing consultation and Social Plan through the FF structure. Regular progress reports will

subsequently be distributed to the necessary departments, including the Social Plan and Productivity

Advisory Council and the Department of Provincial and Local Government. Compliance to the board’s

directive will be ensured in order to meet the corrective measures as stipulated by the board.

4.3.3 Strategic plans for providing job security

The mine’s strategy for providing job security is as follows:

Ensuring that the business remains viable by keeping the cost structure as low and competitive

as possible

Ensuring a productive workforce through training and motivation

Making continuing adjustments to production methods to remain competitive

Seeking ways of growing and extending the business to ensure enhanced future sustainability


62

4.4 Mechanisms to provide alternative solutions and procedures for creating job

security where job losses cannot be avoided

If, after considering all other alternatives for prolonging the life of the mine, it becomes evident that

downscaling and retrenchment is inevitable, an appropriate retrenchment proposal will be formulated

in consultation with the relevant parties and will be finalised four months before this eventuality,

where appropriate, except in the event that unforeseen circumstances arise.

This phase will be implemented in partnership with the DoL and the representative unions. At this

stage, affected employees will be helped to maximise their chances of re-employment. During this

phase, the mine will regularly communicate with the FF to direct the retrenchment process and

identify a job advice centre, which will provide counselling and support to employees in locating

alternative employment, for example, by the formulating employee CVs, interaction mechanisms with

potential employers, and interview strategies.

Names of employees whose positions become redundant (the “affected employees”) will be placed

on the Human Resources database for twelve (12) months from the date of redundancy. The main

purpose for the creation of the database of affected employees is to ensure that when opportunities

arise, people on the list will be considered for permanent positions before the employment of external

candidates.

Additional measures the mine may take include the following:

Assistance, prior to the retrenchment date, with retraining, portable skills training and other

courses to enhance further employment practices

Assistance in accessing available and suitable jobs with other local mines or companies, such

as the neighbouring PPC

Informing neighbouring mines of the retrenchment process and ascertaining whether any

job vacancies exist

Assistance with accessing outplacement and/or career transition counselling from relevant

consultancies or job advice centres in the community

Assistance with completing job application and other relevant forms

Financial planning advice, as well as advice and support, in accessing pension or provident

fund pay-outs and UIF claims, or other state assistance

Personal counselling for individuals and groups to be able to deal with the trauma associated

with retrenchment (this will be extended to both retrenched employees and those left

behind)


63

4.5. Mechanisms to ameliorate the social and economic impact on individuals,

regions and economies where retrenchment or closure of the mine is certain

4.5.1. Overview

A Social Closure Plan will be formulated five years before the planned closure, and will consist of the

following:

Undertaking a socio-economic baseline survey to determine the social dynamics between the

mine and the affected regions, the workforce and the affected local municipalities

Predicting the likely socio-economic impact on employee households, communities and the

region

Identifying critical issues affecting the ongoing sustainability of employees and communities

during closure by means of a detailed consultation process

Identification of alternative livelihood and socio-economic development opportunities and

projects that may become sustainable over the long term

Mitigating and managing the adverse impacts of closure

Providing alternative livelihood options

The mine will make every effort to ameliorate the social and economic impact on its employees where

retrenchment and the closure of the mine are certain.

The primary mechanism that will be employed to promote opportunities for alternative livelihoods

and employment in other sectors of the economy will be the implementation of the mine’s HRD

Programme on a consistent basis throughout the life of the operation. Through the implementation

of skills development programmes and the creation of LED opportunities for employees and their

households in local communities, the negative socio-economic impacts of downscaling, closure and

retrenchment should be minimised. This will enable the employee to access alternative livelihood

opportunities in other sectors of the economy.


64

SECTION 5

FINANCIAL PROVISION FOR

IMPLEMENTING THE SOCIAL AND

LABOUR PLAN

Regulation 46(e)


65

5 FINANCIAL PROVISION FOR IMPLEMENTING THE SOCIAL AND LABOUR PLAN

Section 23(1) (e) of the MPRDA states: “The Minister must grant a mining right if the applicant has provided financially and otherwise for the prescribed social

and labour plan.”

Table 33 presents a summary of the financial commitment by the mine to each element of the SLP for a five-year period.

Table 33: Cash flow forecast of SLP Expenditure

COMPONENTS OF SLP 2018 2019 2020 2021 2022 TOTAL

Human Resources Development

R 761 000 R 751 000 R 755 000 R 757 000 R 757 000 R 3 781 000

Local Economic Development

R 4 000 000 R 4 000 000 R 4 000 000 R 0 R 0 R 12 000 000

Management of downscaling R 1 000 000 R 1 340 000 R 1 340 000 R 1 340 000 R 1 340 000 R 6 360 000

TOTAL R5 761 000 R6 091 000 R6 095 000 R2 097 000 R2 097 000 R 22 141 000


66

SECTION 6

UNDERTAKING

Regulation 46(f)


67

6 UNDERTAKING

This represents an undertaking by the holder of the mining right to ensure compliance with the Social

and Labour Plan and to make it known to its employees.

I, the undersigned and duly authorised thereto by on

behalf of Samancor Chrome Limited, undertake to adhere to the information, requirements,

commitments, and conditions as set out in the Spitskop Mine Social and Labour Plan.

Signed at on this day of 2018

Signature of responsible person

Designation


68

APPENDIX I: CAREER PROGRESSION PATHS AT SPITSKOP

D UPPER LEVEL 7

D UPPER LEVEL 6

D LOWER LEVEL 5

C UPPER LEVEL 4

C LOWER LEVEL 3

B BAND LEVEL 1

A BAND LEVEL 0 Grade 10 / N1 Maths, Cert. of Fitness

OPERATIONS MANAGER

OPERATOR At least 3 years Relevant Experience in Production

At least 7 years experience in Opencast mining

3 Years Supervisory Experience

At least 5 years experience in Production

2 years Supervisory experience

Grade 12 / N3 Blasting Cert or Cert in National

Rock Breaking, Supervisor Certificate Degree or

Tech Diploma

At least 5 Years Experience in Opencast Mining

2 years Supervisory Experience

Career Path In Mining

SUPERVISOR

Grade 12 / N1 Maths, Cert.of Fitness

Competent Person A

Drivers License

At least 3 years relevant Experience in Opencast

mining

At least 8 Years Opencast Experience 3 Years

Managerial Experience

Degree or Tech Diploma

Blasting Cert Part A and B Mine Overseer

Certificate

SITE MANAGER

FOREMAN

MINING

CONTRACTS MANAGER

Legal RequirementsEducation Profile and Minimum Role Requirements

GENERAL WORKER

Grade 12 / N3Maths Blasting Cert. or Cert in

National Rock Breaking

Cert. of Fitness

Grade 12/N3 Maths

Blasting Cert. or Cert. in National Rock Breaking.

Cert of Fitness

NOVICE

Grade 10 / N1 Maths, Cert. of Fitness


69

E 5 D UPPER

D 2 C UPPER

D 1 C LOWER

C 4/5 B BAND

C 4 A BAND

Career Path in Plant/Engineering

SEMI SKILLED AT LEAST 5 YEARS RELEVANT EXPERIENCE GRADE 10/N1 FITNESS CERTIFICATE

CLEANER NO EXPERIENCE REQUIRED GRADE 10/N1 FITNESS CERTIFICATE

FOREMANAT LEAST 4 YEARS EXPERIENCE PRODUCTION

RELEVANT SUPERVISORYDEGREE OR TECHNICON DIPLOMA

ARTISAN AT LEAST 4 YEARS EXPERIENCE PRODUCTION GRADE 10/N2, TRADE CERTIFICATE

PLANT Education Profile and Minimum Role RequirementsLegal Requirements

PLANT MANAGER AT LEAST 8 YEARS EXPERIENCE 3 YEARS

MANAGERIAL EXPERIENCE DEGREE OR TECHNICON DIPLOMA

D 3/4 D UPPER

D 1/2 C BAND

C 4/5 B BAND

Career Path in Health and Safety

AT LEAST 6 YEARS EXPERIENCE

2 YEARS MANAGERIAL EXPERIENCE

SAFETY OFFICER

SHER Education Profile and Minimum Role

RequirementsLegal Requirements

SAFETY MANAGER

DEGREE OR TECHNICON DIPLOMA

SAFETY CLERK

AT LEAST 4 YEARS EXPERIENCE

PRODUCTION

AT LEAST 2 YEARS RELEVANT

EXPERIENCE

GRADE 12 / N3 MATHS COMPUTER

LITERACY

DEGREE OR TECHNICON DIPLOMA


70

APPENDIX II: PRESENTATION AND PROOF OF CONSULTATION (MUNICIPALITY

AND COMMUNITIES)


71


72


73


74

APPENDIXIII: FORM T Breakdown of current mine procurement as per Form T in Annexure II of the MPRDA regulations

CAPITAL GOODS SERVICES CONSUMABLES

Provider and Address

Percentage of total capital goods procurement

HDSA Composition


Percentage of total services procurement

HDSA Composition


Percentage of total consumables procurement

HDSA Composition

Babcock Capital 9.25% Letabawatering 100% Bolt & Engineering 51%

Barlows Power 35.76%

Lowveld Gagrage Equipment 0%

Barlows Rental 35.76% Masinyane Eng 26%

C&F Construction 0%

Mega Paints Lydenburg 0%

Car Towing Services 0%

Minute Man Press 26%

Container World 0% MML Brits /PPE 51%

Diesel Tronix 0% Mobile Tread Repairs 18%

Eagle Electrical 26% MPU Printers 51%

Electro Disel 26% North Safety 22%


75




HDSA Composition



HDSA Composition



HDSA Composition

Encompo Eng 35% Natal Communications 55%

Freedom Property 0% Nomakanjani 100%

Kaizer Transport 100% Oasis Water 51%

Kwikspace 26% Obaro 36%

Mediro Training 100% P&P 51%

Nduna Logistics 0% Pienaar Bros 45%

Nosa 51% pirtek 36%

Oil Seperation Services 51% Resistance Pipes 0%

Peter Nordin Surveyors 0%

Roccos Industrial 51%

Phoenix K9 60% SA Tube & Hone 36%

Plant O Hire 0% Starcrow 100%

Sanitec 65% Supratech 65%

Satak Holdings 100% Windscreen Pro 51%


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HDSA Composition



HDSA Composition



HDSA Composition

TJ Maupa Transport 100% Hanas 25.01%

Tlou Boreadi Transport 100%

Mashising Office Furniture 20%

Vasbyt Civils 0% Mika Yellow Metals 36%

AMJ Training 100% Off Highway 45%

Plato Hydr 0%

QR Steel 0%

Babcock 9.25%

Barlows 35.76%

Nduna Spares 0%

Nelspruit Eng 18%

Bearing Man Group 26.67%

Burgersfort Bande 0%

FilterMan 26%

4U Stationers 28%

Black Knight Diesel 51%

social and labour plan · 2021. 6. 14. · mqa: mining qualifications authority mrp: metal recovery...

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