towards inclusive growth - fraser alexander · constructs tailings storage facilities, tackles...

SUSTAINABLE DEVELOPMENT REPORT - 2018

Towards inclusive growth

www.fraseralexander.co.za

http://www.fraseralexander.co.za/

https://www.facebook.com/FraserAlexanderPtyLtd/

https://twitter.com/fraser_pty_ltd

https://www.linkedin.com/company/fraser-alexander/

Compiled by The MSA Group | Tel: +27 11 880 4209 | www.msagroupservices.com

Design and layout by Synergy Graphics | +27 82 871 6320

About this report

This report is intended to provide stakeholders

interested in and affected by Fraser Alexander’s

operations and sustainability activities with a transparent

account of how we are seeking to address our most

material sustainability challenges.

The report is written for those interested in gaining

insight into our approach to sustainability, including

people who work for and with us, shareholders,

regulators and communities impacted by our operations.

The report focuses on our performance in working

with people and managing societal and environmental

challenges during the past financial year, which ended

31 December 2018, and in several instances alludes to

our journey into the first half of 2019. The report covers

all our operations and all data and information apply to

the Group, unless indicated otherwise.

The Chief Executive Officer (CEO) and the Social and

Ethics Committee have collectively reviewed and

approved this report.

We would value your comments and feedback.

Please contact Claire McMaster at

[email protected].

i iiFRASER ALEXANDER SUSTAINABLE DEVELOPMENT REPORT 2018


01 OVERVIEW 1 Our business at a glance 3

Our strategic priorities 15

Statement from the Chair of the Social and Ethics Committee 19

Statement from the CEO 21

Sustainability performance snapshot 23

02 OUR PEOPLE 25

Safety, health and wellbeing 27

Workforce culture and capability 33

Diversity and inclusivity 43

03 VALUE FOR SOCIETY 51

Local and preferential procurement 53

Supplier Development and Enterprise Development 57

Social investment 63

04 ENVIRONMENTAL MANAGEMENT 67

Understanding and responding to environmental risk 68

Environmental focus areas 74

05 GOVERNANCE AND MANAGEMENT APPROACH 81

Sustainability governance 82

Business ethics and integrity 87

Risk management 90

Stakeholder engagement 91

Contents

OVERVIEW

OUR PEOPLE

ENVIRONMENTAL M

ANAG

EMEN

T

VA

LUE FO

R S

OC

IET

Y

GOVERNANCE AND

MA

NA

GEM

ENT APPROACH

OVERVIEW

OUR PEOPLE

ENVIRONMENTAL M

ANAG

EMEN

T

VA

LUE FO

R S

OC

IET

Y

GOVERNANCE AND

MA

NA

GEM

ENT APPROACH

1 2FRASER ALEXANDER SUSTAINABLE DEVELOPMENT REPORT 2018


01 OVERVIEW

Fraser Alexander is a global partner adding value to mining, waste and infrastructure through smart solutions.

BACK TO MENU <



Minerals Processing Division Manages coal processing facilities

Construction Division Constructs tailings storage facilities, tackles civil infrastructure development projects, pipeline construction, landfill construction and specialised pollution control civil works

Tailings Division Operates and manages over 200 tailings dams on an outsourced basis

Water Treatment Division

Provides turnkey solutions in water treatment and management

Technical Services Provides support and technical risk management of tailings operations.

OUR BUSINESS AT A GLANCE

Fraser Alexander has been providing customised solutions to the mining industry since 1912.

We are a South African-based, black-owned group with a global footprint, delivering new or improved ways to move, manage and add value to resources and infrastructure across the mining and industrial value chains.

Group Services Ensures efficiency and leverage of key management functions

BACK TO MENU <



OUR VALUES

EXCELLENCE

INNOVATION

INTEGRITY

CARE

TEAMWORK

5 6BACK TO MENU <



Our footprintAFRICASOUTH

AMERICAAUSTRALIA

BACK TO MENU <



1912 Fred and Fraser Alexander founded ‘Alexander and Company’ – the first tailings deposition service in the Witwatersrand to use cocopans to remove tailings from processing plants

1946 1955 19791970 -1979

1980

1912-1999 Pioneering – Early days of the mining services industry

A century of adapting and innovating

Fraser Alexander wins first slimes dam contracts on the West Rand, introducing slimes dams techniques that became an industry standard for the next 50 years

Civil engineering division created

Extended services beyond the gold sector to the uranium, diamond and platinum industries

Acquisition of Empangeni Earthmovers, effective start of construction division

Fraser Alexander reverse listed on the Johannesburg Stock Exchange (JSE) as a public company

Fraser Alexander

1984 1986 1991 1990s 1999

Coal Mining Division created

Ash-Mech acquired, later the basis of the Bulk Mech division

Waste-tech purchased, extending waste management capabilities

Activities expand beyond Africa’s borders with registration of companies in Namibia, Botswana, Zimbabwe and Chile

Company delisted from the Johannesburg Stock Exchange (JSE), registering as Fraser Alexander (Pty) Ltd in 2005

The company’s first project was construction of a reservoir: the picturesque Alexander Dam in Springs

BACK TO MENU <



2000-2015 Reconceiving – Building our developmental ethos

Royal Bafokeng Holdings acquired 100% shareholding in the Company, a partnership that has strengthened both Company and community prospects

2011 2012 2008 -2013

2014

Awarded supplier of the year by Anglo American in the sustainability category

Established our Water Treatment Division

Further expansion into Zambia, DRC and Tanzania

Quality and skills development recognised in ISO ISO9001 certification for Fraser Alexander Workshop (2013) and SETA accreditation for key training programmes, including tailings management

2006

“As Bafokeng, we know that the only way to

build a future is to have the purpose of a vision

and mission, and to go by the guidance of a

plan and a strategy.”

Kgosi Leruo Molotlegi

A Fraser Alexander Shareholder

2015 2015 - 2018

2017 2018

2015-2020 Consolidating – Towards inclusive growth

2019

Build-Own-Operate-Transfer (BOOT) model introduced, delivering innovative financing to build mineral processing project

Centralisation of Shared Services in support of a single business. Registration of companies in Brazil, Mozambique and Lesotho

The Public Investment Corporation (PIC) becomes a Fraser Alexander Shareholder, building strong capital investment backbone

Digitalisation strategy developed in support of safety, productivity and growth

Taking our place as a Global Partner adding value to mining, waste and infrastructure through smart solutions

The RBH mandate

RBH is an African community investment company which, together with their sole shareholder, the Royal Bafokeng

Nation Development Trust (RBNDT or the Trust), are entrusted with the unique responsibility of preserving and creating

inter-generational wealth for the RBN.

In seeking to secure sustainable inter-generational financial and social returns for the Nation, RBH have embarked on a

portfolio diversification journey which has seen investment in defensive, non-cyclical stock.

RBH manage a portfolio with a net asset value of R27.9 billion (as at December 2018) consisting of listed and unlisted

assets in a diverse range of sectors, including infrastructure, property, financial services, telecoms, resources and

industrials, located in diverse geographies.

BACK TO MENU <



13 BACK TO MENU <



OUR STRATEGIC PRIORITIES

INNOVATION REQUIRES INTEGRATION

Supply chain solutions must move beyond incremental improvements to deliver innovations that optimize operations to deliver value to multiple stakeholders.

This is our inspiration.

Our Group-wide business strategy highlights five priority areas that guide our allocation of efforts and investments.

SOUTH AFRICAN MINING TRENDS

» High volatility (currency and commodity mix)

» Declining productivity of South African mining operations

» Challenging cost position1

» Water and energy challenges

» Disaffected Communities

» Misalignment with labour and government

GLOBAL MINING TRENDS

» Redefinition of mining and

industrial value chain through technological advances

» China’s slowdown and changing economic focus from

infrastructure development to new commodities impacting

demand

» Increasing expectations on social licence to operate in

a purpose-driven era

» Scale up of clean energy and circular resource systems

» Climate change and adaptation

Renewal of the mining sector is critical to SA’s growing economy

and vision of inclusive growth. Globally, mining must redefine

itself in the face of digital disruption and increasing societal

expectations.

To achieve this, forward-looking mining companies are seeking to:

» Increase productivity

» Demonstrate local

community empowerment

» Embrace the resource challenge

» Digitalise

OPERATING CONTEXT

1 - 42% of SA mining revenue and 47% of jobs in bottom quartile

of global cost-competitiveness (McKinsey 2019)

15

Responsibility » Zero harm and enhanced employee wellness

» Localisation of supplier base

» Innovation in water, energy and waste (including tailings) management

» Zero waste to landfill

Customers» Acquire new customers

» Enhance customer satisfaction

Business processes » Build systems and processes to support high

performance

» Strong corporate governance

and discipline

» Cultivate high trust environment

1 2

Financial » Strong budgeting

» Control and management of input costs

» Allocation for optimal asset utilisation

3

Learning and growth » Focus on talent attraction, retention and capability

development

» Grow diversity and vibrancy through transformation

» Build culture of innovation, future thinking and

ethical leadership

4

5

BACK TO MENU <



LOOKING AHEAD

EMBRACE DIGITALISATION

EFFECTIVE AND TRANSPARENT RISK MANAGEMENT

FURTHER UPSKILLING

SUPPORT LOCALISATION

CONTINUED RESEARCH AND DEVELOPMENT INVESTMENT

supported by digital platforms and enhanced

disclosure of performance and ESG data.

to reduce costs and make mining safer and cleaner.

of staff to respond effectively to new trends and

operating challenges supported by enhanced

Employee Value Proposition, rollout of employee

wellness programmes and expansion of leadership

training to senior and middle management.

through further development and expansion of

local supplier development and integration into

our value chain.

to achieve step-changes in safety,

productivity and reduction of

negative environmental impacts.

BACK TO MENU <



STATEMENT FROM THE CHAIR OF THE SOCIAL AND ETHICS COMMITTEE

Rosalie Manning

Chair of the Social and Ethics Committee

In the last five years, after a number of iterations of restructuring, the company has again reinforced the need to consider sustainability and ethics as core to our to business approach.

BACK TO MENU <



CEO STATEMENT

The leadership and board of Fraser Alexander are deeply committed to ethical, transparent and consistent custodianship of the business.

Keith Scott

Chief Executive Officer

BACK TO MENU <



SUSTAINABILITY PERFORMANCE SNAPSHOT

281million paid in taxes

in South Africa

94% of our workforce are black

(historically disadvantaged

South Africans)

0.22Our Lost Time Injury

Frequency Rate was below

our ambitious threshold

3 687in South Africa

4 276 employees

18.7% of women make up

our management

workforceR570

million

R19million in training

employees, contractors

and community

members

R4.2million

Our total expenditure in

2018 on SD, ED and SED

initiatives

40%

spent on black-owned

enterprises

of our expenditure is with

qualified small enterprises

(QSE) and exempt micro

enterprises (EME)Our employee turnover was

within benchmark

expectation

0.24%

23% spent on

black, women-owned

enterprises 23%

Preferential procurement:Preferential procurement:

BACK TO MENU <



Our business is about our people.

We strive to implement an effective people strategy that promotes a people focused, safety conscious culture and supports the business in developing, acquiring and retaining the right skills to meet current and future business needs. We place a strong emphasis on innovation and creative thinking, which encourages inspiration, ownership and commitment.

02 OUR PEOPLE

BACK TO MENU <



SAFETY, HEALTH AND WELLBEING

SafetyWe enforce a high level of focus on near-miss

management reporting aimed at pro-actively addressing

deviations in the workplace before they are realised as

an unwanted event. Planned task observations (PTOs)

are part of this programme and focus on all hazards

and associated risks in the workplace. Over and above

these, the business is rigorously managed by standard

operating procedures.

We continue to increase our leadership visibility

through our visible-felt leadership (VFL) interventions,

which involves positively engaging with employees

and encouraging incident-based learnings, safe work

processes and workplace observations.

Fraser Alexander’s safety procedures and protocols are,

where required, fully aligned to that of the respective

client and the client’s code of practices. This is agreed

prior to project or contract start-up. Our managers,

supervisors and safety officers are legally appointed by

our client’s management to ensure compliance to the

mine’s safety systems and thus ensuring ownership and

accountability.

We continuously invest in researching and developing

safer and more effective production equipment and

approaches within our service offering. This is part

of a progressive shift towards mechanisation and

automation, particularly in areas of high safety risk.

For example, we are in the process of developing

remotely operated and partially autonomous hydraulic

re-mining equipment – that meets internationally best

standards – and that will ultimately result in safer, more

productive and efficient solutions in the industry.

Safety within our business is paramount and should never be compromised.

We maintain strong and reliable safety management

systems at all our operations. Safe practices are enabled

through operational discipline and effective visible

leadership. Safety is managed as part of an integrated

approach to managing safety, health, environment and

quality (SHEQ), reviewed on page 67.

Our beyond-Zero-Harm policy (always alert, always

focused, never complacent) is firmly practised from

Board and Exco levels, through to the operational front

lines. This is evidenced by our lost-time injury frequency

rate (LTIFR) consistently outperforming our industry

average. Tragically, however, in January 2019 we

recorded a fatality at one of our sites. This prompted us

to revisit and reinforce our safety practices to ensure we

were not becoming complacent or missing an essential

element of safety. In response, several additional

initiatives were undertaken.

For example, we shifted our focus to near misses to

grow awareness before such incidents manifest.

The principal safety risks facing employees across our

operational divisions typically relate to working at heights,

isolation and lock-out, trackless mobile equipment

and light driven vehicles (on and off site). Fatigue and

stress management are overlying focus areas that play

an important role in being ever vigilant of safety risk.

Continuous improvements are driven through learning

from incidents and near misses while we are constantly

improving our hazard identification and controls to

mitigate safety risks.

In memoriam

We extend our sincere condolences

to the family, friends and colleagues

of Mr Remember Mnisi, a monitoring

gun operator in our Tailings Division in

South Africa who was fatally injured on

25 January 2019 when a vertical high

wall at a safety berm collapsed, at a

project in Limpopo, South Africa.

The incident was subject to a rigorous

independent investigation and although

human error was attributed as the

principal contributor to the incident,

management actions were immediately

taken to further improve controls to

prevent any possible recurrence of a

similar incident.

In the unlikely event of any fatality,

we appoint our employee assistance

provider for specialised trauma

counselling for the dependants of the

deceased and his / her co-workers.

BACK TO MENU <



Our safety performance

In 2018, we recorded 13 lost-time-injuries (LTIs) for our

business that resulted in a LTIFR of 0.22, surpassing our

threshold of 0.29. A significant percentage of these LTIs

were low-level incidents, including finger related injuries

associated with materials handling, and “slip, trip and

fall” type incidents. Through our analysis and mitigation

efforts, we have identified a strong correlation between

LTIs relative to fatigue and in particular employee’s leave

balance and / or overtime work. We are consequently

driving a new campaign that encourages employees to

reduce excessive leave balances and working hours,

thus targeting fatigue type underlying contributors to

unsafe behaviours in order to mitigate the risk of fatigue

and injury.

The Group is setting a more ambitious LTIFR benchmark

of 0.24 with a stretch goal of 0.20 in 2019, and a total

recordable injury frequency rate (TRIFR) of 0.76 with a

stretch goal of 0.72.

LTI – lost-time injury is a work-related injury resulting in

the employee / contractor being unable to attend work,

or to perform the full duties of his / her regular work, on

the next calendar day after the day of the injury, whether

a scheduled work day or not.

LTIFR – lost-time injury frequency rate - the number of

lost time injuries (sustained by employees who have

missed a shift or have been booked off work), multiplied

by the 200 000 hour factor divided by the total number

of man-hours worked in a 12 month period.

TRIFR - total recordable injury frequency rate -

The number of total recordable injuries (fatalities,

Lost Time Injuries and Medical Treatment Injuries),

multiplied by the 200 000 hour factor divided by the

total number of man-hours worked in a 12 month period.

TRCFR – total recordable case frequency rate

(calculated) is the number of recordable injuries

(fatalities + lost-time injuries + medical treatment

cases) per 1,000,000 hours worked (TRC times

1,000,000 / total hours worked).

Definitions:

2017 2018

TRIs

LTIs

MTCs

FAIs

46

9

37

38

TRIs

LTIs

MTCs

FAIs

30

12

18

29

TRIs

LTIs

MTCs

FAIs

46

13

32

49

2016

Total recordable injuries - TRIs - (fatal, LTIs and MTIs)

Lost-time injuries (LTIs) Medical treatment cases (MTCs)

First aid injuries (FAIs)

Cindy Nell started working for Fraser Alexander in 2008 as a SHEQ

coordinator. In her journey with the company, one of her key

accomplishments was her role in designing and implementing a safety

turnaround strategy for a key Fraser Alexander client. These days she

values her role in mentoring and coaching safety assistants, and in

encouraging people in performance and teamwork. She is motivated

by her family, integrity and her passion for people and trying to make

a difference in their lives. Cindy is one of a number of employees

inspired by their role in growing a safety culture through positive

influence and connection.

Lost-time injury frequency rate (LTIFR)

2017

TH

RE

SH

OL

D

2016

2018

TH

RE

SH

OL

D

0.16

0.23

0.22

0.29

0.25

Total recordable case frequency rate (TRCFR)

2017

2016

2018

0.81

0.58

0.79

BACK TO MENU <



Fraser Alexander focuses on health and wellbeing of

its employees as a fundamental operational need.

Our role as service provider requires that we align

with our internal approach, as well as meeting

the needs of a particular client. This requires an

awareness of health and wellbeing at the outset

of project development, as well as being open to

learning and exchange.

A principal health risk associated with our business

activities is noise induced hearing loss (NIHL) as

a result of high noise zone areas in our mineral

processing division. To mitigate the risk of NIHL, we

provide all employees at risk with customised hearing

protection devices and education / training regarding

the effects of noise and how to use the protection

devices properly. There were no confirmed new

occupational disease cases reported at our operations

in 2018.

Any detected disability is referred to independent

third parties for assessment and possible

compensation. In 2018, we submitted 18 disability

claims on behalf of employees to our risk insurer.

The illness types included musculoskeletal

conditions, pulmonary diseases, nervous system

disorders, epilepsy, vision and hearing disorders, and

cardiothoracic illnesses / diseases. Five of the cases

submitted were compensated within 2018. In 2018,

we also tracked progress on 22 outstanding historical

death claims, most of which were historical, dating

back to 2016. To date, ten have been settled with the

recipients.

The most common underlying health risks facing our

employees relate to chronic and lifestyle diseases,

mental wellbeing challenges and fatigue.

To promote employee wellness, rather than simply

addressing workplace health, we are taking a

more holistic approach. Our new programme was

designed in 2018 and will be piloted across five sites

in 2019. The approach takes into account biological,

psychological and social influences on an employee’s

wellbeing. Employee-related data is gathered

through individual employee engagements which

include a propensity to take risks. In order to help

employees deal with the identified concerns, they are

encouraged to make use of the employee assistant

programme (EAP) offered by an independent service

provider. The toll-free services include counselling

(eg. psychological / trauma / financial), health

information and legal assistance.

Other initiatives in 2018 also included a wellness

day held at our head office, with all employees

being screened for diabetes, high blood pressure,

cholesterol and HIV. This was well received and

we plan to continue this into the coming years. We

also continue to deliver HIV / Aids education toolbox

talks and promote awareness around our HIV /

Aids policy and support programmes. Our Mineral

Processing Division have taken this a step further by

training 12 employees as peer educators. Our World

Aids Day in December 2018 was a noted success,

with employees actively participating in thoughtful

dialogue and volunteered inputs that will assist us in

future programme design.

Our leadership and managerial training programme

also empowers current and future leaders to identify

and manage stress in the working environment.

Financial difficulties is one such stress that has been

recognised within the broader mining sector. We

are in discussions with two large banks to improve

their financial offering to our staff. This includes debt

consolidation and interest rate improvements.

Health and wellbeing

BACK TO MENU <



WORKFORCE CULTURE AND CAPABILITY

Collectively our employees hold the knowledge, skills and experience that has enabled our business to deliver service

excellence and value to mining, waste and infrastructure operations through the provision of smart solutions for

more than a century. Our collaborative culture enables us to create customised, cross-discipline solutions to new and

complex challenges. We continue to build the Fraser Alexander brand as an employer of choice, fostering a high-

performance culture led by inspiring leaders and underpinned by our values.

Our global workforce of 4 276 employees forms the cornerstone of our service offering and competitive advantage.

At the end of 2018, we started an initiative aimed

at reviewing and shaping our organisational culture

‘towards sustainable innovation’, ensuring better

collaboration, ethical engagement and a high

performance work environment. To better understand

the strengths and weaknesses in our current culture,

we conducted an employee engagement survey with a

diverse pool representing 12% of the workforce from

across the company. The results of this survey informed

a revised approach, and this was communicated to

employees during CEO roadshows in 2018. Our analysis

of the interviews with employees leaving the company

were also included in this process. Areas identified for

improvement related primarily to direct management,

followed by working conditions, remuneration, career

growth and communication. Action plans to close gaps

or ensure improvements have been developed and will

be implemented through divisional scorecards in 2019.

We also held internal discussions and developed a

culture improvement charter to address weaknesses

identified in relation to the Company values of integrity,

excellence, innovation, care and team work. Key culture

focus areas are on developing leadership capability

and diversity awareness and training, supported by a

pay-for-performance approach and a strong evaluation

of contribution. We have recently updated our employee

value proposition (EVP) and, following the 2018 pilot

studies, will be rolling this out through an employee

wellness programme (see page 31 on Health and

Awareness).

Our 2018 culture change was supported by an

organisational restructuring to foster closer employee

and management ties within the business. For example,

General Managers were brought into EXCO meetings,

an increase in employee awareness and two-way

communication, and a senior management road-show

was rolled-out to all operations. This, we believe, further

strengthens the pride our employees have in the Fraser

Alexander brand.

Further employee engagement surveys will be

conducted in 2020 as part of an ongoing annual process.

This will help us to measure the extent to which we

have managed to embed the ‘one team’ ethos and

culture. This focus on variables such as the performance

management scorecard (PMS), cultural climate,

labour turnover, culturally sensitive incidents and the

effectiveness of decision making.

EXCELLENCE INNOVATION INTEGRITY CARE TEAMWORK

Shaping our workforce culture

Our values

BACK TO MENU <



Attracting, developing and retaining skills

Fraser Alexander is committed to developing, acquiring and retaining high performing employees with the required

competencies (knowledge, skills, qualifications and attributes) to meet the immediate and future operational and stra-

tegic needs of the Company. As a market leader, particularly in tailings management, we are targeted for recruitment

by competitors. Our approach has been to enhance our employee value proposition to ensure that employees once

trained, remain with the organisation.

In 2018 we went back to basics, helping our employees to understand their roles better, which in turn has increased

motivation. The process highlighted strengths and weaknesses of each employee, with management providing target-

ed training and assistance to help address these areas.

Talent management initiatives are implemented through our performance management process. We are committed

to implementing sound and consistent practices in order to ensure that Fraser Alexander remains a fair, equitable and

transparent employer, with a compelling Employee Value Proposition (EVP). As a growing and innovative group,

with a wide range of career opportunities, we strive to maintain a competitive advantage in retaining and attracting

scarce skills.

Management approach and systems

Fraser Alexander has a central human resources

development policy, framework and a structured

management approach in place for all divisions. In 2018,

we rolled out a company performance scorecard and

a human resources roadmap to drive performance and

change. The business went through a harmonisation

programme aimed at synchronising all policies,

procedures and remuneration practices across our

divisions. This included the development of one set of

payscales (standardised remuneration and performance

systems) that took both the benchmarked Paterson

Paygrade bands and individual roles into consideration.

We are also reviewing all our international policies and

seeking to align these with our policies in South Africa,

subject to local conditions, as appropriate. We have

upgraded our SAGE people software to enable better

functionality and integration of systems. The system

has been expanded to incorporate people management

processes including training and development and

performance management, with further expansion

anticipated in 2019.

Performance management

Our performance management policy and procedures

are designed to drive high performance, through:

» Aligning the divisional and individual employee

objectives with the organisational strategy and

objectives to ensure optimum business performance

through a balanced scorecard approach

» Instilling a culture in which performance is both

recognised and rewarded

» Driving the development and growth of our

employees through the implementation of

development plans, mentoring and coaching

programmes

» Establishing engaged teams who practice open and

honest communication

The balanced scorecard approach is built around the

strategic priorities of the Company as outlined on

page 16.

Remuneration

Through our performance management programme,

we have committed to offering attractive

remuneration and employment benefits, together

with effective incentives, to retain and attract the

right talent. We undertake regular benchmarks

of pay and conditions to ensure that we remain

competitive. Fraser Alexander has over the years

always paid above the average in its class, with

no differentiation between contract and

permanent employees.

BACK TO MENU <



Learning and Development

We focus on leadership development throughout the organ-

isation as well as development of all-round managerial skills

at middle and senior management levels. We offer a broad

spectrum of training programmes and invest significantly in

closing gaps identified at various levels of basic education

and skills. For example, in support of financial sustainability,

we trained senior managers, site administrators and Senior

Superintendents in understanding financial statements, cost

control and how to manage assets. Our internally developed

training collateral consists of accredited trainers and courses,

with a comprehensive development programme starting from

general worker, wage staff through to middle management.

External training partners assist with accredited management,

leadership and industry specialist training.

Leadership capacity building

In developing the business through our people, with a focus

on ensuring that the right skills are embedded where needed,

we implemented a new leadership and managerial training

programme. This has enabled senior management to define

and focus their efforts and performance. This successful

programme will be continued into 2019 with the inclusion of a

wider management pool from across the Group.

Specialist training

Fraser Alexander’s management consist of industry

specialists and we pride ourselves in continuous development

to keep in line with international best practice. As such, we

often contribute towards new industry innovative initiatives.

The company’s strategy is to recruit and develop highly

qualified experts in each of our divisions in order to maintain a

high level of specialisation.

As an example, the Tailings South Africa is currently rolling

out a three-tier training approach initiative for employees at

supervisory level and above to enhance their technical and

operational related skills and competencies.

BACK TO MENU <



Key training interventions in 2018

NUMBER OF PARTICIPANTS EXPENDITURE (R)

Fraser Alexander’s total training spend in 2018 was R 19.6 million, amounting to 2.42% of our salary bill.

1686

593

269

139

6916

Work Integrated Learning (Skills Programmes)

Informal Training - External Short Courses, Workshops, Seminars, Conference, Memberships (CDP)

Informal Training - Internal Training (Salaries)

Learnerships, Artisans and Internships

Financial Study Assistance

Bursaries

Artisan - Education and Training

0.65m0.1m

0.5m

2.1m

5.1m

5.2m

6m

2%

98%

8%

63%

75%

97%

69%

100%

10%

35%

43%

23%

31%

Info

rmal

Tra

inin

g

- Int

erna

l Tra

inin

g (S

alar

ies)

Art

isan

- ed

ucat

ion

and

trai

ning

Wor

k In

tegr

ated

Lea

rnin

g (S

kills

Pro

gram

mes

)

Info

rmal

Tra

inin

g -

Ext

erna

l Sho

rt C

ours

es,

Wor

ksho

ps, S

emin

ars,

C

onfe

renc

e, M

embe

rshi

ps

(CD

P)

Lear

ners

hips

, Art

isan

s an

d In

tern

ship

s

Fina

ncia

l Stu

dy A

ssis

tanc

e

Bur

sarie

s

% African / Coloured / Indian representation

% Women Representation

100

90

80

70

60

50

40

30

10

20

83%

Talent Management

The learning and development team focuses on coordinating training throughout the business and ensuring that

training achieves the desired impact. We are enhancing competency-based training outcomes by reviewing role

profiles and inherent requirements, establishing career paths and personal development plans. This process also

assists with succession planning and the identification of critical / scarce skills.

Our training choices and investment are aligned with our strategic objectives and changes in the global mining

industry. We continue to develop our people to take on new challenges to equip them for the 4th industrial revolution -

introducing new technologies, progressive digitisation, automation, real-time information and business intelligence for

quick decision making.

Juliet Shayi– young female graduate

Juliet Shayi was appointed for in-

service training at Fraser Alexander in

Rustenburg in 2016 after obtaining a

national diploma in industrial engineering

from the Vaal University of Technology.

Now a graduate student in engineering

based at Kelvin Power Station, in

Kempton Park and at 22 years of age,

she is the youngest, and only female,

at the operation. In her current position

as a construction supervisor for an

ash reclaim project, her innovative

engineering adjustments have helped

to increase efficiencies, allowing the

project thresholds to be exceeded.

BACK TO MENU <



Recognising the importance of

developing our leadership capacity

to drive the desired transformation

of our organisational culture, in 2018,

we delivered an accredited leadership

course through an external provider to 25 of our

senior leaders over a six-month period.

The course is designed to provide various leadership

skills, with a focus on developing emotional and

social intelligence. Key areas included promoting

growth through reflection and on-going personal

development, diversified thinking and problem

solving approaches, and a mind-set of valuing

diversity in the building of diverse teams. As part

of the group project element of the programme,

the course ended with presentations from the

participants crafting ideas and solutions for driving

strategy, the ideal culture, collaborative leadership

and leadership reward and recognition initiatives

within Fraser Alexander.

The course has resulted in improved collaboration

on matters such as sharing resources, safety,

community development, building high performance

teams, and employee development. This is further

supported by quarterly meetings where all senior

leaders convene to collectively discuss and address

challenges and opportunities. This assists in fostering

ongoing supportive relationships and building a

culture of innovative and collaborative leadership.

Recruitment and selection

For both permanent and contract employees, Fraser

Alexander is committed to ensuring equality of access

and opportunity, and will not discriminate on the basis of

age, religion, culture, race, gender and sexual orientation

or any other arbitrary basis. We have strengthened our

recruitment standards to ensure that these processes

are always fair and transparent.

Affirmative action strategies are taken into consideration

when recruiting candidates and we prioritise filling

positions from within the company. Within South

Africa, we also work with our clients to hire and

develop individuals based in host communities. In

tailings management, for example, our approach is to

source 80% of employees from the local community,

exposing them to a mix of experts and experienced

employees from other areas in a manner that allows for

development of skills and capability. In our Construction

Division, our local employment drive is often

constrained by the limited availability of management

skills within communities. When sourcing local

managers, they often require prior development.

At our international operations, our workforce is 99%

localised. We utilise our expatriate teams to contribute

to the project development and skills transfer into the

local arena, hence having a positive influence across the

continent and the world.

In assessing a potential candidate for promotion or new

hire, we may incorporate a psychometric assessment

to ensure that they operate at the right level and have

potential to grow into other roles.

Building senior leadership capacity Middle management programme graduates

In May 2019, 24 of our employees in

middle management from different

divisions graduated with certificates

of excellence after completing the

year-long leadership development

programme at North West

University.

The course comprised seven

modules; financial accounting,

managerial accounting,

management economics,

organisational behaviour, operations

management, labour relations and

marketing.

Our employee value proposition

In addition to the opportunities we provide for

professional and personal development and competitive

remuneration for performance, the benefits the

company provides include: annual leave, pension fund

/ retirement annuity, overtime pay, medical aid, an

employee incentive scheme, and bonus pay.

It is compulsory for all permanent South African and

expat employees to become members of a retirement

fund, which provides for a retirement benefit, disability

benefit, death benefit and funeral cover. We also

have policy provisions such as for maternity, paternity

and family responsibility leave. Additional allowances

applicable to certain positions and roles includes

the provision for relocation, travel, housing, and

subsistence.

BACK TO MENU <



DIVERSITY AND INCLUSIVITYThis informs our commitment to promoting an inclusive

and diverse environment where every colleague is

valued and respected for who they are and is able to

fulfil their potential. We implement a comprehensive

human resources transformation strategy to promote

sustainable and tangible transformation in our business.

Within South Africa, our employment equity (EE) plans

include numerical thresholds and goals for EE, including

affirmative action measures to address past inequalities.

Our progress is driven and overseen by an Employment

Equity Committee and we recently appointed a diversity

specialist to assist in this process. Promoting localisation

is also a focus for Fraser Alexander operations worldwide

(reviewed on page 41).

We believe diverse organisations make better decisions, are innovative and more sustainable.

The desired transformation of our Board and support

team has been achieved and we continue to focus

on improving the demographics of our workforce.

Our transformation and equity highlights in 2018 are

included on page 46, but include:

» In the semi-skilled and discretionary decision-

making job category, 90% of vacant positions were

filled with Historically Disadvantaged South African

(HDSA) candidates

» In the category skilled technical and academically

qualified workers, junior managers, supervisors,

foreman and superintendents), 69% of vacant

positions were filled with HDSA candidates

» In the professionally qualified and experienced

specialists and mid management job category,

67% of vacant positions were filled with HDSA

candidates

» Internal appointments (promotions) mostly occurred

within the Tailings South Africa operations and

within the SHEQ governance function

» 12 graduate learners (HDSA) were absorbed and

appointed within Fraser Alexander in 2018, mostly

within the Tailings South Africa operations.

As indicated, our international operations workforce

is 99% localised, with an expatriate team undertaking

project development and skills transfer across the

continent and globe.

We are striving to empower women in mining, especially

at the operational level. In 2018, at one particular

new site, we appointed approximately 30% female

employees, with the understanding that we need to

create a suitable and safe environment for them.

By year end, women made up 7.5% of our total

workforce and 10.4% of our total permanent workforce.

A total of 18.7% of our managers are women.

Our Code of Ethical Conduct is supported by policies on

conditions of employment, sexual and other harassment,

and anti-discrimination. We are implementing initiatives

aimed at advancing gender equality at Fraser Alexander

by including women in roles historically deemed to be

for males. Recent examples include our first female

business unit manager appointed in our Minerals

Processing Division and a female regional manager in

our Tailings South Africa Division.

BACK TO MENU <



Targeted transformation of our workforce

South Africa:

Top Management

Male - White

Male - Indian, Coloured

Male - Black

Female - White

Female - Indian, Coloured

Female - Black

Middle Management

2020

2018

Semi-skilled

Workforce diversity profile - South Africa (as at end 2018)

Group - South Africa

MALE FEMALE

Total

Afr

ican

Col

oure

d

Indi

an

Whi

te

Afr

ican

Col

oure

d

Indi

an

Whi

te

Top management 0 0 0 1 0 0 0 0 1

Senior management 3 1 1 17 3 0 0 2 27

Mid management -

Professionally qualified and

experienced specialists

27 2 2 47 8 0 3 6 95

Junior management - Skilled

technical and academically

qualified workers, supervisors,

foremen, and superintendents

234 7 5 77 31 0 1 20 375

Semi-skilled and discretionary

decision making802 2 0 6 94 2 1 25 932

Unskilled and defined

decision making1 403 11 0 1 103 8 0 0 1 526

TOTAL 2 469 23 8 149 239 10 5 53 2 956

Internationally there were 26 fixed term management employees for Fraser Alexander. This is expected to remain

the same in 2020, with 6 of these employees being female.

In South Africa, our transformation shift, based on gender and equity is detailed in the table below and charts

opposite. This illustrates our firm commitment in this area of the business.

2020

2020

2018

2018

Senior Management

Junior Management

Unskilled

2020

2020

2020

2018

2018

2018

BACK TO MENU <



0 500 1000 1500 2000 2500 3000 3500

We maintain constructive relationships with our

representative unions on various matters of interest

and rights. Unionised employees at Fraser Alexander

constitute 53% of the bargaining level category.

The Association of Mineworkers and Construction Union

(AMCU) is the dominant union at our operations in South

Africa, commanding a 65% majority in our South African

Tailings Division and a 31% membership in our South

African Mineral Processing Division. Our Tailings Division

has a three-year wage and collective agreement that

expires in 2020. Various other agreements are also in

place including two full-time shop stewards and a full-

time regional official seconded to the union. The division

has also ratified a five-year Minimum Service Agreement

(related to an Essential Services declaration).

The National Union of Mineworkers (NUM) has 13.5%

representation at our Tailings Division and 37% in

our Mineral Processing Division, which has a one-

year agreement with the union that will expire in

August 2019. A new wage agreement is likely to be

comprised of a mixed team of AMCU and NUM. Both

NUM and AMCU have a small presence within our

Construction Division. The South African Forum of Civil

Engineering Contractors (SAFCEC) union has a marginal

representation at Fraser Alexander.

All unions are key social partners to our business and

worker representatives are involved in representing their

members in disciplinary matters and participating in

employment equity programmes and skills development

committees. Unions engage robustly on a regular basis

on various strategic topics of mutual interest and concern.

Relationships with employees and unions

Number of employees (as at 31 Dec 2018)

African / Coloured / Indian

Female

Breakdown of full-time employees

GroupTotal

Tailings South Africa

Mineral Processing

Construction

Tailings Africa & International

Group Services

Technical Services

3687

In 2018, 83 employees were dismissed and 333

employees were issued with written warnings for

various transgressions across the Group. 45 employee

grievances were referred also to the South African

Commission for Conciliation, Mediation and Arbitration

(CCMA). The most common challenges relate to

absenteeism, followed by poor work performance, failure

to comply with safety rules and substance abuse related

incidents.

Our efforts to foster a culture that cares for and

develops people is underpinned by intensive employee

engagements and includes activities aimed at

celebrating our employees and promoting inclusivity.

For example, Fraser Alexander celebrates its long service

employees at a formal year-end function. Meaningful

recognition of business expertise is also celebrated

through ringing a bell named “Manqoba” at Head

Office. This is done to celebrate new major contracts

and stimulate a culture of inclusion within the business.

Attention is also given to important national events such

as Mandela Day, World Aids Day and Heritage Day,

to strengthen our recognition of social diversity and

encourage employee environmental awareness.

Workforce movement

At 2018 year end, our workforce totalled 4 276 employees, of which 86% are full-time permanent employees (3687

employees). The annual average labour turnover rate in 2018 remained low and within our forecasted threshold for

the year at 0.24%. Within this percentage was a voluntary turnover of 0.14% and an involuntary turnover of 1.53%

(which includes retrenchments and dismissals). We consider this a very positive sign that our employee value

proposition is delivering for both our workforce and our business.

Disciplinary Sanctions by type in 2018

Written Warnings: 233

Final Written Warnings: 100

Dismissals: 83

CCM Cases: 45

BACK TO MENU <



Abraham Kwinana joined Fraser Alexander in

1983 as a general worker at a tailings dam in

Welkom. Through training and focused effort, he

progressed through the positions of occupational

clerk and plant clerk, to become a trainer in the

human resources function in Stilfontein. In 2015

he was appointed as learning and development

officer, which provided him as opportunity to

integrate work with his commitment to national

development.

“Providing training at new sites is important to

me, as I am training people from surrounding

communities, adding to the knowledge growth of

our country”.

BACK TO MENU <



As a community-owned business, accountable to

the Royal Bafokeng Nation (RBN), we are proud of

our reputation for caring for the communities in which

we operate. We have established relationships of mutual

respect with local communities and local government in

our principal areas of operation in South Africa

as well as internationally.

Several studies point to the existence of the “resource

curse”, where persistent developmental challenges

- in terms of poverty, inequality, and deprivation -

are often found in those countries with the greatest

natural resource endowments. South Africa, in particular,

continues to face the deep-seated challenges of poverty,

inequality and high unemployment. This underscores the

importance of sustainable community development as

a social and business imperative for Fraser Alexander.

Working collaboratively, we engage with communities,

clients and partners in the areas where we serve, to

collectively identify and realise opportunities that will

promote the long-term socio-economic sustainability of

our host communities. With our international operations,

we ensure that we add value to the communities around

our operations through local employment and the

identification and upliftment of promising candidates

to supervisory roles. An example of this is in the DRC

where we provide education assistance of R 900 / yr for

every employee’s child. We have also sponsored a youth

development initiative in Zambia (to the cost of R70 000)

through our client and partner in the region.

It is through our core business activities – servicing

our customers, employing people, paying taxes to

government and procuring from local communities –

that we make our most significant positive contribution

to host country economies. We focus on providing

employment and preferential and local procurement

opportunities, developing small businesses, and making

social investments.

03 VALUE FORSOCIETY

BACK TO MENU <



LOCAL AND PREFERENTIAL PROCUREMENT

Our supplier base currently includes 369 Qualifying Small Enterprises with greater than 51% black ownership (QSEs with R10 million to R50 million turnover).

369 51%

R962 million

2018

2017R703 million

37% increase in spend

R411 million

R570 million


QSEs and EMEsSupplier category

Spend across all B-BBEE levels

R60,4 million

R274.1 million


Black Women-Owned Enterprises

BACK TO MENU <



Our performance - 2017 / 2018

Total B-BBEE Spend

R 962 million

R 703 million

QSE and EME

2017 2018

In 2018, Fraser Alexander achieved full points in terms of the South African Department

of Trade and Industry’s (DTI) requirements in the procurement spend category. 2017 2018

R 133 million

R 278 millionR 233 million

R 337 millionQSE

EME

BACK TO MENU <



SUPPLIER DEVELOPMENT AND ENTERPRISE DEVELOPMENT

Our investments in Enterprise Development (ED) and Supplier Development (SD) are predominantly directed at supporting businesses that are existing or potential suppliers to our operations.

We follow a structured approach to identifying,

managing and monitoring our SD and ED investments

to ensure their continuous positive impact. Initially, we

identify gaps and opportunities in Fraser Alexander’s

product and / or services demand. We then identify

potential QSE and EME suppliers operating close to

the respective operations who qualify as ED or SD

beneficiaries.

We follow the DTI’s B-BBEE codes selection criteria;

these criteria support the selection of black women

and youth owned businesses. The selection process

also includes an analysis of the beneficiary’s processes,

including finances, quality, compliance, safety, labour

and environmental performance.

We engage with the beneficiaries and identify their

needs, which we seek to fulfil through an ED or SD

partnership. As the beneficiaries develop, we assess the

narrowing of the initial Fraser Alexander product

and / or services demand gap, and assess the

beneficiary’s growth, for example, in its workforce

and client base.

Community Portal

ED

SD

Zamani Engineering Services

Are Direng

Mentoring

“Pig Style” project

RBEDRoyal Bafokeng Enterprise Development

Mmutle Mining ProjectsGreen Leaf

BACK TO MENU <



Supplier developmentIn 2018, we invested R 2.1 million in supplier development, allocated across several projects and beneficiaries. Some examples include:

Zamani Engineering Services

Are Direng

Fraser Alexander funded the

purchase of ten weed-cutting

machines, helping Are Direng

extend their service offering in

Rustenburg, NW (profiled in case

study below).

Saluting two of our supplier development beneficiaries

Mogomotsi Komane – Are Direng

Founded by Mogomotsi Komane

as a start-up in 2007, Are Direng

provides plant hire and grass cutting

services. Through the Fraser Alexander

enterprise development programme,

the purchase of equipment worth more

than R200 000 helped them grow their

business. This assisted to secure two

more contracts with large corporates

over and above the ongoing contract

with Fraser Alexander. Today, Are

Direng employs 89 full time employees,

mainly from the local community with a

focus on unemployed youth.

Community Portal Registration Project

Launched in 2018,

Fraser Alexander’s web-based

procurement portal established a

database of local SMMEs to aid

local procurement and allocation of

supplier development funds.

Fraser Alexander funded the

purchase of machinery, enabling

Zamani’s provision of manufacturing

engineering services to mineral

processing operations in Witbank.

Thabo Matlou – Matlhasedi Development

Services

Matlhasedi and Thabo Matlou are

brothers who own and operate

Matlhasedi Development Services

CC, a vegetation control service

provider that secured its first

contract in 2010, providing grass

cutting services to Fraser Alexander.

Fraser Alexander provided training

that included competency classes,

risk assessments and driving

courses. The business today has

two full-time projects, with a team of

14 people working at one platinum

mine and the other team of 5 at

another platinum mine.

Early Payments

In order to alleviate cash flow

challenges experienced by small

businesses providing services to

Fraser Alexander, an early payment

facilitation of not more than 15 days

is made available.

Provision of mentoring by Fraser Alexander employees

Senior Fraser Alexander employees provide

mentoring to small companies in business

management, financial management and

other forms of business administration,

measured as time spent in relation to their

annual remuneration.

BACK TO MENU <



Saluting two of our enterprise development beneficiaries

Khumo Sekete – Pig farming business

In 2012, Khumo Sekete started his own

company, with an ambitious vision

to expand his family-run pig farming

business. In 2017, he participated in the

Royal Bafokeng’s Enterprise Development

(RBED) business mentoring programme

and in 2018, he received a grant from

Fraser Alexander to purchase building

materials to build a piggery. He is currently

in discussions to sub-lease an area of

tribal communal land that has access to

electricity and water for the piggery.

Over the next five years Khumo aspires to

lease and eventually acquire his own land to

farm up to 200 breeding pigs.

Enterprise developmentWe invest in developing local, small enterprises to become self-sustained job-creating businesses and part of our

supplier base, where possible. In 2018, we invested just under R1 million in funding for the following beneficiaries:

Green Leaf

Green Leaf is a 100% black owned media company

situated in Phokeng, North West. Fraser Alexander

purchased photographic and video-graphic equipment

valued at over R 100 000. This enabled the company to

graduate to supplier status at Fraser Alexander.

Pig Style

Pig Style is a pig farming company that has been

struggling to get going due to lack of funds.

Fraser Alexander provided over R 100 000 for the

purchase of initial stock and the construction of an

operating structure, namely, a pig shed for housing and

handling the pigs (see case study below).

Kenny Mokalane – Greenleaf Systems

Kenny Mokalane received

business coaching through the

RBED mentoring programme and

started providing videography and

photography services to Fraser

Alexander in 2017. Fraser Alexander

sponsored the purchase of

photography equipment, agreeing

to fund replacement equipment a

year later when it was destroyed in

an accident. Greenleaf is thriving

with offices at RBED in Phokeng

and four members of staff hired on

a part time basis.

RBED

We donated over R 500 000 to Royal Bafokeng

Enterprise Development (RBED) to provide enterprise

development assistance to the qualifying beneficiaries.

The funding also covers the provision of accreditation

training for fire extinguisher companies servicing Fraser

Alexander in the North West area.

Mentoring

Fraser Alexander provided mentoring valued at

over R 200 000 for Mmutle Mining Projects (MMP), a

growing private business enterprise providing mining

services to the mining sector in the North West and

Mpumalanga provinces. The mentoring process was

carried out in the form of ‘Time of Employee’ spent with

the mentee.

BACK TO MENU <



SOCIAL INVESTMENT

Our Socio-Economic Development

(SED) spend is strategically

orientated around education-based

initiatives aimed at upskilling local

community members, enabling them,

where possible, to become future

employees or suppliers.

Other interventions in our

communities relate to healthcare and

safety. In 2018, training initiatives

included first aid and safety

representative for 130 community

members in areas of need.

In 2018, we also invested R 1 million

in socio-economic development

initiatives, with almost half of this

spend allocated to the rollout of an

e-learning maths platform.

We continuously evaluate the

effectiveness of the projects delivered

and work with our operations to

identify SED opportunities and select

interventions.

It is through our social investment initiatives that we make our most visible contribution to uplifting lives in the communities around our operations.

Mathemaniacs is a 100% black youth and female

owned private company that we contracted in 2015 to

provide maths support to 29 learners at Matale High

School in Phokeng, North West. We invested around

R 400 000 in 2018 as part of a three-year project which

ended in 2018. The investment did not deliver as

effectively as envisaged, and Fraser Alexander has since

evolved the programme with an additional R 450 000

investment in the ‘School within a School’ project being

currently piloted by the RBN at Matale High School.

The concept supports the idea that more learners can

be reached through the use of technology and on-line

platforms.

The project combines maths tutoring and online learning

in order to improve knowledge transfer.

Our 2018 projects

In conjunction with Tshegofatso Foundation,

Fraser Alexander donated 100 reusable sanitary

towels valued at over R 13 000 to Thethe and

Molotlegi secondary schools in Rustenburg, North

West as a commemoration of the 2018 Women’s Day

celebrations.

We donated 269 scientific calculators and 276 maths

sets valued at over R 40 000 to Mabotha High School in Ga-Dankie, Limpopo. The school is part of

a community situated near Venetia mine where Fraser

Alexander runs water purification operations for Venetia

mine. This donation forms part of a number of SED

projects agreed between Fraser Alexander and the

Venetia Social responsibility Committee in 2018.

We donated school laboratory equipment valued at over

R 75 000 to Aggeneys International Academy at Black Mountain, Northern Cape where we operate a

tailings facility.

We purchased 200 pairs of school shoes valued at

over R 34 000 for Ramakwapeng Primary School in

our host community of Lephalale, Limpopo where we

operate a tailings facility.

We hosted a Career Day on behalf of Women in Mining South Africa (WIMSA), which included

a donation of over R 15 000 to pay for students’

transportation to attend the WIMSA exhibition at

Greenstone, Johannesburg. Two hundred young

girl-learners attended the event and received career

guidance and one-on-one talks with women already

working in the mining industry.

BACK TO MENU <



Fraser Alexander participates in several community forums in areas where we operate. Issues of concern to local

communities are discussed at these forums, such as employment opportunities, skills development, procurement,

community development projects and health, safety and environmental performance. This keeps Fraser Alexander - as a

business - connected with the challenges and needs of the communities within which we operate. At one of our client’s

mines, for example, where we procure services from about 22 local suppliers, we participate in structured and delivery

orientated meetings that are held quarterly with not only the client, but all contractors including Fraser Alexander.

We have other community engagements with the following, but not limited to: Lephalale Community Association;

Royal Bafokeng Council of the Khosanas; Mfidikwe Community Forum; Lydenburg Business Foundation;

Tshegofatso Mekgwe youth foundation; Venetia Social Responsibility Committee; Carolina Youth Movement.

Our engagements with these groups help us to monitor our relationships with the surrounding communities.

Olga Marimo has driven and overseen remarkable achievements at Matale Secondary School, Phokeng, North-West,

South Africa, since she became the school principal in 2012. The school has been upgraded and expanded its offering,

increasing its number of learners from 169 to 600. The school produced its first matric results in 2018, with an 88%

pass rate. Within this environment the introduction of e-learning, including Fraser Alexander’s Mathemaniacs learner

support programme, is making maths a more creative and exciting subject and has helped Matale to become a leading

school in the area.

Olga Motshwanedi Marimo - Principal at Matale Secondary School

Building relationships through community forums

BACK TO MENU <



04 ENVIRONMENTALMANAGEMENT

We strive as a minimum to ensure regulatory

compliance, and to minimise our environmental impact

through our activities. Fraser Alexander has always

been committed to high performance, innovation

and technological advancements in our equipment

and practices. These typically improve performance

in efficiency and reduce resource demands and as

such assist in mitigating environmental impacts. Our

management focus is on both risk mitigation and

opportunities to optimise efforts in this area with the

recognition that continuous improvement is essential.

UNDERSTANDING AND RESPONDING TO ENVIRONMENTAL RISK

Fraser Alexander’s operating divisions (Tailings Deposition and Re-mining, Mineral Processing, and Construction) are

inter-linked with our clients’ value chain throughout the mine’s project life-cycle. The broad range of environmental

impacts associated with these activities include water consumption, energy consumption, dust generation (impacting

air quality), materials consumed through our construction business, waste generated, noise and disturbance, land

disturbed / occupied, and sensitive species and ecology in areas where we operate. Fraser Alexander does not own

properties in biodiversity sensitive areas, however we are cognisant of the international norms and standards that apply

to our industry.

BACK TO MENU <



MINERAL PROCESSING CONSTRUCTION

TAILINGS (South Africa, Africa

and International)

Our mineral processing

services include design,

fabrication, installation and

operations of coal pro-

cessing plants.

These are predominantly

hydro-metallurgical processes,

including movement of water

and materials.

Bulk earthworks, mining

infrastructure, tailings storage

facilities, water infrastructure,

waste infrastructure, mine

rehabilitation and civil engineering

works in the industrial sector.

Management of tailings storage

facilities, stockpiles, discard

dumps, hydraulic remining and

industrial waste.

AC

TIV

ITIE

SIM

PA

CT

S U

ND

ER

MA

NA

GE

ME

NT

» Water management

» Energy management

(primarily electricity from

national grid, diesel

generators in remote

regions)

» Limiting impact on

surrounding environment

» Compliance with client’s

approved Environmental

Management Plans.

» Water management (for dust

control, cooling, construction)

» Energy management (primarily

electricity from national

grid, diesel-powered mobile

equipment and generators in

remote regions)

» Materials management

» Waste avoidance and

management



Management Plans, including

aspects of land disturbance

and wetland preservation.

» Water management (reliance

on water for the movement of

slurries and dust control)

» Water pollution prevention

» Energy management (mobile

machinery has a hydrocarbon

demand, with the associated

impacts including carbon

emissions)

» Limiting impact on surrounding

environment



Management Plans.

Environmental impacts across the divisions

WATER TREATMENT GROUP SERVICES

Our water treatment services

include the design, fabrication,

installation and operations of

sewage treatment plants, water

treatment and purification plants

and water optimisation solutions

for our clients.

» Water management

» Water pollution prevention,

re-use with an aim for zero

discharge

» Compliance with Client’s


Management Plan.

At our head office we strive to

limit our environmental impact by

managing our office waste, paper

consumption, water and power

usage and carbon emissions as a

result of travel requirements.

TECHNICAL SERVICES

Technical and Group Services are located at our head office in

Greenstone, Johannesburg, South Africa.

The sustainability of the solutions

reviewed, investigated and

introduced into the business is a

key consideration.

BACK TO MENU <



Our approach to environmental management is part of

our integrated approach to managing SHEQ (Safety,

Health, Environment and Quality) challenges in an

integrated manner (reviewed on page 85). We manage,

measure and report our environmental performance

through our environmental management systems (EMS).

In particular, our Construction Division’s EMS is ISO

14001:2015 certified and subject to regular prescribed

environmental audits.

From a regulatory perspective the company does not

own any properties / facilities or activities that would

require a regulatory management plan (i.e. in South

Africa this would be known as an environmental

management programme or EMP). Operational divisions

may however on occasion perform tasks to assist

clients to comply with their EMPs if contracted to do

so and where responsibility has been devolved to our

management team.

The company implements emergency preparedness and

response plans at client sites related to our contracted

work specification and the SHEQ risks on site. For

the most part, however, we operate our business

within the structures of our host client, our contractual

requirements for the project and the operational design

parameters. We adhere to our clients’ environmental

management programmes operating within their

frameworks, legal compliance, risk management, waste

management, incident management and water and

energy consumption.

In instances where we do not operate like this, we have

our own international standards to which we subscribe

that are then applied. As such, for any particular project

where an environmental policy or procedure is not

applicable, this is due to the nature of the business and

the host client.

Environmental compliance and management systems

BACK TO MENU <



The principal areas of legislation for our business

are South Africa’s National Environmental

Management Act (NEMA) and the associated

Air Quality and Waste Acts. The Mineral and

Petroleum Resources Development Act also still

has bearing as well as the NEMA Biodiversity

Act. For 2018, none of our operations or projects

required any waste, air quality or water licences

to be applied for, maintained or reported on by

Fraser Alexander, beyond those already acquired

by our clients.

Incidents and non-conformances

All material incidents and non-conformances are

reported immediately and directly to our clients

and our management. These are recorded in our

system for internal learnings and management

mitigation. In 2018, we recorded five minor

environmental incidents in the Tailings Division.

These related to tailings erosion and spillages

that did not impact on surrounding communities

or water bodies. These were non-reportable

incidents, as they were contained within the

respective tailings facilities, but were still

uncontrolled activities. Fraser Alexander has not

recorded any environmental penalties from clients

and any regulator in the last five years.

ENVIRONMENTAL FOCUS AREASFraser Alexander is improving its approach to managing natural capital and as such is focusing on its water and energy

usage, and waste activities. Given the nature of our services, for the most part, our water and energy usage forms part

of the greater demand of the respective client. Where we have our own contracts and supply, we accurately measure

and track our consumption. This is reported to our shareholders quarterly through our Environment, Social and

Governance (ESG) framework reporting.

We also recognise that there are key environmental drivers that will shape our business in the future. These areas

require a longer-term approach and focus. As such, priority environmental focus areas for Fraser Alexander include:

energy and climate change; water efficiency; waste minimisation and tailings dam risk.

Fraser Alexander does not currently have a formal energy

conservation or carbon emission strategy in place for

the Company. We recognise that energy use and climate

change are directly linked through a carbon-based

economy and we plan to focus on these as a holistic

element and going forward. In collaboration with our

clients, the consumption of electricity (kWh) and other

energy sources will be recorded for all Fraser Alexander

facilities and operations. This more comprehensive

monitoring programme will inform the development

of subsequent efficiency thresholds, and performance

measures that will be integrated in our future business

performance scorecards. In 2018 we recorded a spend

of R 465 315 on electricity (direct spend).

We serve various clients across South Africa, many of

whom measure their carbon footprints, which include

emissions generated through Fraser Alexander’s

outsourced operations undertaken as part of the mining

client’s activities. We use our clients’ resources (primarily

water, electricity and fuel) to execute our operations.

As a result, Fraser Alexander’s Scope 1 emissions are

minimal. As of 2019, we will record data for our Scope

1, 2 and 3 emissions. This will be used to establish a

baseline carbon footprint for our own operations and will

inform the setting of thresholds to reduce our fuel and

energy usage. In 2019, Fraser Alexander will place greater

focus on integrating climate change considerations into

business strategy and operations.

Energy and climate change

BACK TO MENU <



Waste and tailings damsFraser Alexander is an industry leader in tailings

storage facility (TSF) management, specialising in

both mineral residue / tailings deposition and tailings

reclamation for reprocessing. Our hydraulic re-mining

solutions remain at the forefront of waste tailings re-

mining (see case - overleaf). We focus on optimised

and best practice placement of mine waste to meet

the most stringent of safety, health and environmental

design requirements.

We also recognize that we generate our own non-

mineral waste and where this is not integrated into our

client’s waste management systems we have our own

procedures to separate and manage waste streams

into recyclables, domestic and hazardous.

Water efficiencyFraser Alexander does not currently have formal water

conservation measures in place. We recognise that

water is a critical aspect of our business, how we

operate and the communities within which we are a

part. As such, we are focused on developing more

comprehensive water measurement and reporting that

will enable better business decisions for water at an

operational level.

Typically, individual sites / projects comply with the

client’s water management plans. Going forward, in

collaboration with our clients, we will prioritise the

development of a formal monitoring and measurement

programme for the consumption of water at all

our facilities and operations. This will inform the

development of water conservation and recycling

thresholds and performance will be integrated in our

future business performance scorecards.

As with electricity, in 2018 we spent over R 72 000 on

water usage on directly owned Fraser Alexander facilities

(direct spend).

Water is however a multi-dimensional element of the

business and has a significant impact based on its

quality. Fraser Alexander is required to comply with

water quality criteria as part of our contracted work

relating to water, in some cases this is through the client

managed systems and in others this would be through

direct interventions.

The integrity of tailings storage dams (TSFs) is under

increasing scrutiny following a number of serious TSF

dam breaches in the mining industry in recent years,

including most notably the collapse of a tailings dam in

Brazil in January 2019 that killed an estimated 300 people.

The widespread adoption of international best practice

guidelines for tailings and mine waste management

continues to influence the design, operation, closure and

rehabilitation of mining waste disposal sites.

Over the course of more than a century, Fraser

Alexander has raised the practice of mineral residue

and tailings management to a science, delivering

best-practice solutions globally. With our highly skilled

and trained professional team and our proven tailings

management systems, we are able to routinely monitor

the ‘health’ of each TSF, intervening proactively

whenever necessary. Our internal training ensures that

site personnel have the necessary skills to oversee and

manage the TSFs under their individual appointments.

Mineral residue and tailings management

Fraser Alexander delivers

global best-practice risk

management in tailings

management.

BACK TO MENU <



In managing internal and external risks posed by TSFs

contracted to Fraser Alexander (which includes dormant

TSFs, deposition and re-mining contracts), we are in the

process of further developing and embedding a world

class tailings management and risk monitoring digital

system called TORAS (Technical and Operational Risk

Assessment System).

This digital platform is based on the Company’s

developed operational, management and assurance

processes and procedures that are compliant to industry

best practice and meet international legislative and

governance requirements.

The system enables us to determine and monitor

operational risk and manage it collectively with our

clients and appointed Engineers of Records. It is audited

by tailings industry leaders on a regular basis. In-house

training provides a thorough understanding of risks at

the ground level.

Going forward, we will continue to place an emphasis

on effective and transparent risk management in the

tailings space through world class internally developed

processes, digital platforms and the development of

supportive software for both internal use as well as

external client and industry benefit.

Fraser Alexander was contracted by

a multidisciplinary engineering group

in 2017 to construct a new tailings

storage facility (TSF) at a gold mine in

Mpumalanga. The solution included

installation of a larger four-drive track gun (water

cannon), as opposed to the standard two-drive track

gun, to accommodate the required higher than

standard tonnages.

Elikhulu re-mining project

Value to environment and society:

» Automated track-gun is able to deliver the most

efficient re-mining process, resulting in reduced energy

and water use.

» Automation also improves safety as the process can

be undertaken from the control room, minimising

the presence of employees in the vicinity.

» The project has created more than 400 permanent

jobs, with the majority held by local people.

Value to the business:

» Retreatment of gold tailings projected to deliver

about 55 000 oz/m of gold over the next 14 years.

» Cost effective use of hydraulic mining technology.

» Installation of automated four-drive track gun reduces

weather-related losses.

BACK TO MENU <



Non-mineral waste

We plan to start measuring and monitoring our waste

data in 2019 and in future we will report on quantities

of waste generated and recycled. We are also

developing a waste minimisation programme that will

be rolled out across our operations in 2020. This will

include investigating the feasibility of bio-remediating

hydrocarbon-based wastes into compost, to reduce

volumes of hazardous waste disposed to landfill sites.

Our current waste recycling initiatives predominantly

focus on used oil and scrap metal.

In instances where our clients require us to comply with

certain hazardous substance criteria as part of

our contracted work, we outsource all transportation

of hazardous material to certified hazardous

transportation contractors.

Waste and end-of-life tyres are another waste source

generated by our business. In South Africa, mining

equipment tyres are no longer managed by the

Recycling and Economic Development Initiative of SA

(Redisa). The disposal of mining waste tyres is currently

being managed through disposal at registered stockpiles

that have been granted for specific mining sites.

Teams rescue spotted eagle owl chicks from danger

What happens when you find a pair of spotted eagle owl chicks being raised in a ventilation pipe?

Our Mineral Processing Division, while undertaking a re-commissioning process at a Colliery in

Mpumalanga in 2018, conducted a maintenance inspection that revealed two chicks with dead mice

alongside to feed them. The team immediately ceased working in the area and called the Owl Rescue

Centre near Pretoria for assistance. The centre responded quickly in collecting the chicks and taking them to the centre

where they were hand reared before being safely released into a protected conservation area.

Environmental awareness regarding our effect on the environment we operate within is something that we encourage

with all our employees. This is a growing area of focus in our business and not only speaks to resource consumption,

but also the impacts we can have on ecology and biodiversity.

Environmental Awareness

BACK TO MENU <



05GOVERNANCE AND MANAGEMENT APPROACH

Sustainability considerations are well-established

in Fraser Alexander’s governance structures and

integrated into our core business activities.

Our approach to sustainability is underpinned by

processes for identifying and evaluating the risks and

opportunities that are most material to the business.

Our ability to create value for our stakeholders is

underpinned by maintaining robust ethics, governance

and risk management processes and structures.

Operating responsibly is central to Fraser

Alexander’s business strategy, seeking

to strike a balance between economic

imperatives and environmental, social and

governance (ESG) considerations.

SUSTAINABILITY GOVERNANCE

Oversight and accountabilityThe role of the Fraser Alexander Board of directors is to promote the long-term success of the business with integrity,

ethically and with fairness and transparency. Directors steer the Company in the right direction through a combination

of strategy, effective leadership and sound corporate governance. The Board delegates responsibility for the

governance of sustainability to its Social and Ethics Committee, chaired by Rosalie Manning.

Board members from left to right:

Greg Kietzmann (seated left), John Wates, Brian Harvey, Keith Scott, Nakedi Ramaphakela and Rosalie Manning (seated).

BACK TO MENU <

84FRASER ALEXANDER SUSTAINABLE DEVELOPMENT REPORT 2018


83

The committee oversees and monitors Fraser

Alexander’s activities in relation to:

» Social and economic development, including the

principles of the United Nations Global Compact and

Broad-Based Black Economic Empowerment (B-BBEE)

» Good corporate citizenship, which includes promotion

of equality, prevention of unfair discrimination,

corporate social responsibility, ethical behaviour and

managing environmental impact

» Client relations

» Labour and employment, including skills development

» Safety, health and environmental challenges

» Stakeholder management.

Reports are delivered to the Social and Ethics Committee

twice a year, with non-financial data being submitted

to the principle shareholder on a quarterly basis.

Environmental, social and governance (ESG) challenges

are integrated into the strategic plans, and updated on an

annual basis.

Committees

MANCOs

Fraser Alexander Board

Remuneration Social and Ethics Audit and Risk Investment

EE and Skills Development Committee

Executive Committee

Minerals processing Tailings including Water Treatment Construction Tailings Africa and International

Group Services

Technical Services

RISK MANAGEMENT FUNCTION CORPORATE CULTURE and VALUES

Senior Management Team

Working Group

BACK TO MENU <



Management approach

Safety, health, environmental and quality (SHEQ)Fraser Alexander has a combined SHEQ policy. Approximately 2 000 people were trained on this policy in 2018 in an

ongoing initiative to bring awareness into this area of the business. The policy is supported by procedures and standards

in place to ensure compliance with legislative requirements and support our quest for zero harm and world-class quality.

The management of SHEQ challenges is interrelated and we plan to appoint a general manager and constitute a Board

Health and Safety Committee for SHEQ in 2019. This will further drive an integrated approach to SHEQ management

that is fully aligned to best practice standards. Our construction business is ISO 9001:2015 (Quality Management

System) and ISO 14001:2015 (Environmental Management System) certified. We have broadened the implementation

of an online SHEQ management system across the Group as part of embedding SHEQ into the business and this will

continue into 2019 with a formal gap analysis of the current SHEQ systems and practices undertaken in the second half

of 2019. Areas of concern will subsequently be addressed in a revised SHEQ strategy for the business going into 2020.

BACK TO MENU <



EXCELLENCE INNOVATION INTEGRITY CARE TEAMWORK

Our values

Reinforcing a good corporate cultureFraser Alexander aspires to embed an ethical culture in the Company through its corporate values and by

demonstrating ethical leadership throughout the business. We maintain a zero tolerance stance on fraud, corruption,

misconduct or dishonesty.

BACK TO MENU <



Respecting human rightsRespect for human rights is an integral part of the Company’s Code of Ethical Conduct and Values. Our human rights

policy commits us to implementing the human rights principles and requirements associated with the United Nations

Global Compact (UNGC). Our approach is aligned with the UN Guiding Principles on Business and Human Rights.

We uphold the basic human rights of the International Labour Organisation through the implementation of fair

employment practices. We have clear policies and processes in place to ensure observance of human rights, including

the right to freedom of association and collective bargaining, the eradication of child and forced labour and

non-discrimination. Observance of these rights is required of all our employees and business partners.

RISK MANAGEMENTFraser Alexander continuously reviews and enhances its approach to identifying, prioritising and controlling the risks

that threaten our ability to meet objectives.

The Company’s objectives in managing risk include:

» Anticipating and responding to changing social, environmental, economic and legislative conditions

» Managing risk in accordance with international best practice standards and demonstrating due diligence in

decision making

» Ensuring the sustainability of the business, as sustainability is a source of both opportunities and risks;

» Ensuring legislative compliance as a minimum standard

» Balancing the cost of managing risk with the anticipated benefits.

We implement an integrated risk management strategy that is reviewed annually with the aim of improving its

adequacy and efficacy. To achieve our objectives, we have an enterprise wide risk management framework that is

aligned with the ISO 31000 International Risk Management Standard and the requirements of South Africa’s King IV

Governance Code. This standard process of risk assessment to identify and evaluate our risks in a manner that enables

the Board and management to take decisions regarding possible trade-offs between risk and reward. This then assists

management to identify and pursue appropriate strategic growth opportunities informed by an approved risk appetite

and tolerance level. The allocation of roles and responsibilities is consistent with the guidelines provided in King IV.

BACK TO MENU <



STAKEHOLDER ENGAGEMENTOur ability to deliver value depends on the contribution and activities of a range of different stakeholders.

Being sufficiently responsive to relevant stakeholders’ interests is essential to maintaining positive stakeholder

relationships. In the table opposite, we briefly outline those stakeholder groups who have a substantive impact on our

ability to create value, outlining how they impact on value and identifying some of their primary interests relating to

our business activities.

Impact our ability

to cost-effectively

provide services

Their skills, experience

and productivity drive the

development and execution

of our strategy

Procure our services,

providing the basis for

revenue growth

Impose regulatory

measures with potential

cost implications.

Tax beneficiaries.

Royal Bafokeng Nation (RBN);

Public Investment Corporation (PIC),

MOGS - Owners of the business, and providers

of financial capital

Add to the longer-term

viability of our markets

by strengthening the

socio-economic context in

which we operate

Shareholders

Communities Government, regulators

and industry

(within the client framework)

Clients

Employees

Suppliers

STAKEHOLDERS

» Direct and internal communication

» Engagement with unions

» Leadership roadshows

» Intranet and electronic communication blasts

» Employee hotline

» Formal Meetings

» Opportunities for personal and career development

» Enhancing leadership capacity

» Competitive remuneration

» Conditions of employment and fair practices

» Progress with transformation

» Business performance and strategic direction

» Presentation of 2 technical papers at the Mining and Industrial Waste

Conference, October 2018.

» Peer review of 4 technical papers for the Paste Conference, 2018 in Perth.

» Presentation of an annual tailing course to clients and industrial representatives.

» Representation on committee for revising tailings management guidelines

(SANS10286)

» Participation in global webinar on tailings management

» Labour relations

» Opportunities for job creation and

socioeconomic development

» Regulatory compliance

» Taxation

» Board representation

» Annual and interim reports

» ESG Reports

» Strategy to ensure sustained financial growth

» Responsible allocation of capital

» Sound corporate governance practices

» Transparent executive remuneration

» Stable dividend policy

» Community forums

» Ethics hotline

» Community investments and engagement

» Web-based local procurement portal

» Tenders

» Supplier assessments

» Access to opportunities

» Fair and ethical relationships

» Timeous payment

» Client survey system in place to establish the client

position and view of the Company

» Comprehensive and competitive service / solution offering

MEANS OF ENGAGEMENT PRIORITY INTERESTS

Employees

Clients

Government, regulators and industry

Shareholders

Communities

Suppliers

BACK TO MENU <



www.fraseralexander.co.za

BACK TO MENU <

https://www.linkedin.com/company/fraser-alexander/

https://www.facebook.com/FraserAlexanderPtyLtd/

https://twitter.com/fraser_pty_ltd

http://www.fraseralexander.co.za/

towards inclusive growth - fraser alexander · constructs tailings storage facilities, tackles...

Documents