lwala mine

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SOCIAL AND LABOUR PLAN

LWALA MINE REF NO: LP 30/5/1/2/2/38 MR

CYCLE 2

2018-2022

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Table of Contents

1 Introduction and background information ........................................................................................ 7

1.1 INTRODUCTION ................................................................................................................................... 8

1.2 PARTICULARS OF THE OPERATION ....................................................................................................... 8

1.3 COMPANY BACKGROUND ..................................................................................................................... 9

1.4 LOCATION OF THE MINE ....................................................................................................................... 9

1.5 MINE DEVELOPMENT SCHEDULE ........................................................................................................ 10

1.6 EMPLOYEES AND BUSINESS PLAN ...................................................................................................... 10

1.7 EXPECTED WORKFORCE AT LWALA MINE ............................................................................................ 11

1.8 METHODS TO FACILITATE SLP IMPLEMENTATION .................................................................................. 12

2 Human resources development programme ................................................................................. 14

2.1 INTRODUCTION ................................................................................................................................. 14

2.2 APPROACH ....................................................................................................................................... 15

2.3 HUMAN RESOURCES DEVELOPMENT PROGRAMME MODEL ................................................................... 15

2.4 RECRUITMENT .................................................................................................................................. 16

2.5 SKILLS DEVELOPMENT PLAN .............................................................................................................. 16

2.5.1 Introduction .................................................................................................................................... 16

2.5.1 Adult Education and Training ........................................................................................................ 16

2.5.2 Learnerships ................................................................................................................................... 19

2.5.3 Overview ........................................................................................................................................ 19

2.5.4 Skills training programmes ............................................................................................................ 21

2.5.5 Portable skills training .................................................................................................................... 23

2.6 HARD-TO-FILL VACANCIES ................................................................................................................. 25

2.7 CAREER PROGRESSION PLAN ............................................................................................................ 26

2.7.1 Overview ........................................................................................................................................ 26

2.7.2 Career paths .................................................................................................................................. 26

2.7.3 Progression plan ............................................................................................................................ 26

2.7.4 Establishing a talent pool ............................................................................................................... 27

2.7.5 Action plan ..................................................................................................................................... 28

2.8 MENTORSHIP PLAN ........................................................................................................................... 29

2.8.1 Overview ........................................................................................................................................ 29

2.8.2 Targets ........................................................................................................................................... 29

2.8.3 Action plan ..................................................................................................................................... 30

2.9 INTERNSHIP AND BURSARY PLAN ....................................................................................................... 30

2.9.1 Overview ........................................................................................................................................ 30

2.9.2 Bursary plan ................................................................................................................................... 31

2.10 EMPLOYMENT EQUITY PLAN ............................................................................................................... 32

2.10.1 Overview ........................................................................................................................................ 32

2.10.2 HDSA in management targets ....................................................................................................... 33

2.10.3 Action plan ..................................................................................................................................... 33

2.10.4 Women in core mining targets ....................................................................................................... 34

3 Local Economic Development programme.................................................................................... 36

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

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

3.3 INTRODUCTION ................................................................................................................................. 37

3.4 DISTRICT AND LOCAL SOCIO-ECONOMIC REGIONAL ANALYSIS .............................................................. 37

3.5 OVERVIEW ....................................................................................................................................... 37

3.6 POPULATION DEMOGRAPHICS ............................................................................................................ 37

3.7 INCOME LEVELS ................................................................................................................................ 38

3.8 SOCIAL DEPENDENCY ....................................................................................................................... 39

3.9 BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT ANALYSIS .......................................... 40

3.10 FREE BASIC WATER .......................................................................................................................... 40

3.11 ACCESS TO SAFE DRINKING WATER .................................................................................................... 41

3.12 RIVERS AS A NATURAL WATER SOURCE .............................................................................................. 42

3.13 ACTION PLAN INDICATING THE ZONE OF FOCUS OF THE SAMANCOR ECM LEDP ...................................... 42

3.14 SOCIO-ECONOMIC IMPACT OF OPERATION ‒ REGULATION 46 (C) (II) (B) ............................................... 42

3.15 THE IMPACT ..................................................................................................................................... 42

3.16 INFRASTRUCTURE DEVELOPMENT, POVERTY ERADICATION AND WELFARE CREATION PROJECTS ............ 44

3.17 APPROACH ....................................................................................................................................... 44

3.18 BASELINE SITUATION ......................................................................................................................... 44

3.19 ACTION PLANS AND PROJECTS ........................................................................................................... 44

3.20 PROJECT SELECTION AND IMPLEMENTATION MECHANISM .................................................................... 44

3.21 SMME DEVELOPMENT ...................................................................................................................... 49

3.22 THE PROCUREMENT PROGRESSION PLAN AND ITS IMPLEMENTATION FOR HDSA COMPANIES IN TERMS OF

MINING GOODS AND SERVICES ........................................................................................................... 54

3.23 APPROACH ....................................................................................................................................... 54

3.23.1 The baseline situation .................................................................................................................... 55

3.23.2 Action plan ..................................................................................................................................... 55

3.24 MEASURES TO ADDRESS HOUSING, LIVING CONDITIONS AND NUTRITION ............................................... 57

3.24.1 Overview ........................................................................................................................................ 57

3.24.2 Housing plan .................................................................................................................................. 57

3.24.3 Action plan ..................................................................................................................................... 57

3.24.4 Health care and nutrition................................................................................................................ 57

4 Programme for managing downscaling and retrenchment ............................................................ 59

4.1 ESTABLISHING A FUTURE FORUM ....................................................................................................... 59

4.1.1 Overview ........................................................................................................................................ 59

4.2 MECHANISMS TO SAVE JOBS AND AVOID A DECLINE IN EMPLOYMENT .................................................... 59

4.2.1 Overview ........................................................................................................................................ 59

4.2.2 Consultation processes ................................................................................................................. 60

4.2.3 Notification to government authorities ........................................................................................... 61

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

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

WHERE JOB LOSSES CANNOT BE AVOIDED .......................................................................................... 61

4.3.1 Overview ........................................................................................................................................ 61

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

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

4.4.1 Overview ........................................................................................................................................ 63

5. Financial provision for implementing the slp ................................................................................. 66

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6. Undertaking ................................................................................................................................... 68

APPENDIX I: CAREER PROGRESSION PATHS AT SAMANCOR ECM ........................................................................ 69

appendix ii: Skills development facilitator appointment letter ..................................................................... 76

APPENDIX III: PROOF OF SUBMISSION OF WORKPLACE SKILLS PLAN ................................................................... 77

APPENDIX IV: SKILLS TRAINING PROGRAMME LIST ............................................................................................ 78

APPENDIX V: FORM T ...................................................................................................................................... 81

APPENDIX VI: STAKEHOLDER ENGAGEMENT RECORD ................................................................................ 83

APPENDIX VII: FUTURE FORUM CONSTITUTION (SIGNED) .......................................................................... 835

TABLES

TABLE 1: DETAILS OF THE LWALA MINING RIGHT ................................................................................................................... 10

TABLE 2: ESTIMATED PERMANENT LWALA MINE WORKFORCE ................................................................................................. 11

TABLE 3: COMPLIANCE WITH SKILLS DEVELOPMENT LEGISLATION............................................................................................. 14

TABLE 4: FORM Q – EDUCATIONAL LEVELS OF THE WORKFORCE (REGULATION 46 (B) (I) AA) ......................................................... 17

TABLE 5: FIVE YEAR PLAN FOR AET ENROLMENTS .................................................................................................................. 18

TABLE 6: AET - COMMITMENTS, ACTIVITIES AND TIMEFRAMES ................................................................................................. 19

TABLE 7: FIVE YEAR PLAN FOR LEARNERSHIP ENROLMENTS ...................................................................................................... 20

TABLE 8: LEARNERSHIPS - COMMITMENTS, ACTIVITIES AND TIMEFRAMES ................................................................................... 21

TABLE 9: FIVE YEAR PLAN FOR PERMANENT EMPLOYEES' SKILLS TRAINING INTERVENTIONS.............................................................. 22

TABLE 10: SKILLS TRAINING ACTION PLAN ........................................................................................................................... 23

TABLE 11: FIVE (5) YEAR PLAN FOR PORTABLE SKILLS TRAINING INTERVENTIONS ......................................................................... 23

TABLE 12: PORTABLE SKILLS - COMMITMENTS, ACTIVITIES AND TIMEFRAMES .............................................................................. 24

TABLE 13: HARD-TO-FILL VACANCIES AS PER FORM R IN ANNEXURE II OF THE MPRDA REGULATIONS ............................................. 25

TABLE 14: TALENT POOL AND FAST TRACKING PROGRAMME TARGETS AT LWALA MINE ................................................................. 28

TABLE 15: CAREER PROGRESSION - COMMITMENTS, ACTIVITIES AND TIMEFRAMES....................................................................... 28

TABLE 16: MENTORSHIP - COMMITMENTS, ACTIVITIES AND TIMEFRAMES .................................................................................. 30

TABLE 17: FIVE (5) YEAR PLAN FOR INTERNSHIP AND BURSARY TARGETS .................................................................................... 31

TABLE 18: INTERNSHIPS AND BURSARIES - COMMITMENTS, ACTIVITIES AND TIMEFRAMES ............................................................. 31

TABLE 19: PRELIMINARY EMPLOYMENT EQUITY STATISTICS AS PER FORM S IN ANNEXURE II OF THE MPRDA REGULATIONS ................ 32

TABLE 20: FIVE (5) YEAR PLAN AND TARGETS FOR HDSA PARTICIPATION AT LWALA IN LINE WITH REVISED MINING CHARTER TARGETS .. 33

TABLE 21: HDSAS IN MANAGEMENT - COMMITMENTS, ACTIVITIES AND TIMEFRAMES ................................................................. 33

TABLE 22: FIVE (5) YEAR PLAN AND TARGETS FOR THE PARTICIPATION OF WOMEN AT LWALA MINE ................................................ 34

TABLE 23: ANNUAL HOUSEHOLD INCOME LEVELS .................................................................................................................. 38

TABLE 24: ACCESS TO WATER ............................................................................................................................................ 41



TABLE 27: ENTERPRISE DEVELOPMENT BUDGET LWALA .......................................................................................................... 52

TABLE 28: ACTION PLAN ENTERPRISE DEVELOPMENT SUPPORT PLAN........................................................................................ 53

TABLE 29: TENDER ACTION PLAN ....................................................................................................................................... 53

TABLE 30: CURRENT LEVEL OF SPEND BY THE COMPANY ON BEE OR HDSA VENDORS ................................................................... 55

TABLE 31: TARGETS FOR INCREASING HDSA SUPPLIERS .......................................................................................................... 56

TABLE 32: TARGETS FOR INCREASING HDSA SUPPLIERS .......................................................................................................... 56

TABLE 33: HOUSING AND LIVING CONDITIONS - COMMITMENTS, ACTIVITIES AND TIMEFRAMES....................................................... 57

TABLE 34: FINANCIAL PROVISION FOR RETRENCHMENTS ......................................................................................................... 63

TABLE 35: BREAKDOWN OF THE SLP FINANCIAL PROVISION ..................................................................................................... 66

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TABLE OF FIGURES FIGURE 1: SHAREHOLDING STRUCTURE OF SAMANCOR CHROME LIMITED ..................................................................................... 9

FIGURE 2: LOCATION OF LWALA MINE................................................................................................................................. 10

FIGURE 3: METHODS OF IMPLEMENTING THE SLP ................................................................................................................. 12

FIGURE 4: SIMPLIFIED STRATEGIC HUMAN RESOURCES DEVELOPMENT MODEL .......................................................................... 15

FIGURE 5: ANNUAL INCOME LEVELS .................................................................................................................................... 39

FIGURE 6: TOTAL NUMBER OF BENEFICIARIES ........................................................................................................................ 40

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Abbreviations and Acronyms

ABBREVIATION

DESCRIPTION

AET: Adult Basic Education and Training

ASGISA: Accelerated and Shared Growth Initiative for South Africa

ATR:

Annual Training

Report

Annual training report

BEE: Black Economic Empowerment

BIC:

Bushveld Indigenous

Complex

BSESS:

Baseline Socio-

Economic Study-

Survey

CEO:

Chief

Executive Officer

CMR:

Conversion of Mining

Right

COO:

Chief

Operations Officer

CSR:

Corporate Social

Responsibility

DTI:

Department of Trade

and Industry

EE:

Employment Equity

FLC:

Foundational

Learning Competency

HRDP:

Human Resource

Development

Programme

LEDP:

Local

Economic

Development

Programme

SMMEs:

Bushveld Indigenous Complex

BSESS Baseline Socio-Economic Survey Study

BSESS: Baseline Socio- Economic Study-Survey

CDM Central District Municipality

CEO: Chief Executive Officer

CMR: Conversion of Mining Right

COO: Chief Operations Officer

CSR: Corporate Social Responsibility

DMRE: Department of Mineral Resources and Energy

DoL: Department of Labour

DTI: Department of Trade and Industry

EE: Employment Equity

FET: Further Education and Training

FF: Future Forum

FLC: Foundational Learning Competency

HDSAs: Historically Disadvantaged South Africans

HET: Higher Education and Training

HLC: Housing and Living Conditions

HRD: Human Resources Development

HRDP: Human Resource Development Programme

IDP: Integrated Development Plan

JIPSA: Joint Initiative on Priority Skills Acquisitions

LED: Local Economic Development

LEDP: Local Economic Development Programme

MPRDA:

Mineral and Petroleum Resources Development Act

MQA: Mining Qualifications Authority

NQF: National Qualifications Framework

RDP: Reconstruction and Development Programme

SETA: Sector Education and Training Authority

SHEQ: Safety, Health, Environment, and Quality

SLP: Social and Labour Plan SMMEs: Small, Medium and Micro-Enterprises

VCT: Voluntary Counselling and Testing

WIM:

Women in Mining

WSP: Workplace Skills Plan

ISO, NHBRC, CIBD

kn

idv

ECM: Eastern Chrome Mines

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SECTION 1

PREAMBLE:

Introduction to and background

information on the operation

Regulation 46(a)

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1 INTRODUCTION AND BACKGROUND INFORMATION

1.1 Introduction

The second cycle of the new five-year Social and Labour Plan (SLP) for the period 2018-2022 is

submitted for Lwala Mine in terms of the requirements of the Mineral and Petroleum Resources

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

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

for the life of the existing mines.

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).

The objectives of the SLP are to:

(i) Promote employment and advance the social and economic welfare of all South Africans;

(ii) Contribute to the transformation of the mining industry; and

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

of the areas in which Lwala Mine operates.

Progress in meeting the commitments set out in the programmes outlined in the SLP with regards

to Human Resource 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).

1.2 Particulars of the Operation

Name of Company Samancor Chrome (Pty) Ltd

Name of Mine Lwala Mine

Physical Address Farms Foresthill 117 KT and Clapham 118KT (along R37 Rd towards

Polokwane), Limpopo Province

Postal Address PO Box 3, Steelpoort, 1133

Telephone Number 013 230 7001

Fax Number 013 230 7003

Commodity Chrome Ore

Life of Mine 55 Years

Financial Year January to December

Reporting Period 31 March (Annually)

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Responsible Person Bertus Brink (General Manager)

1.3 Company Background

The history of Samancor dates back to 3 July 1937 with the founding of African Metals

Corporation (Amcor) by the industrial pioneer Dr Hendrik J van der Bijl. Samancor Chrome (Pty)

Ltd. operates five (5) mining operations in the Fetakgomo Local District Municipality, collectively

called Eastern Chrome Mines (ECM), namely Lwala, Lannex, Tweefontein, Spitskop and Jagdlust.

The development of a further mining operation namely Jagdlust is underway.

Figure 1: Shareholding structure of Samancor Chrome Limited

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%

1.4 Location of the Mine

The Lwala Mine is the Section of Eastern Chrome Mines which comprises of Twickenham, 114 KT,

Surbiton 115 KT, Hackney 116 KT, Forest Hill 117 KT and Clapham 118 KT. These farms are in the

custodianship of Roka Mashishi, Nareng Thokwana, Bakone Ba Manyaka, Roka-Mashabela and

Magadimana Ntweng Tribal Authorities which are classified as directly affected or host

communities. The mine is in the Greater Tubatse Local Municipality of the Sekhukhune District

Municipality in Limpopo Province.

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Figure 2: Location of Lwala Mine

1.5 Mine Development Schedule

Mine development commenced in March 2017 after a protracted legal battle with Bakone Ba

Manyaka Tribal Authority and illegal mining activity, with site establishment, preparation of

temporary offices, construction of infrastructure, services and access to roads. The mine is

currently an open pit operation with underground development scheduled to commence in 2020.

Table 1: Details of the Lwala Mining Right

Operation Farm Name Mineral Authorization

number

Mineral

Cession Extent (ha)

Lwala Twickenham 114 KT Chromite 15/2000 K43/2002RM 3167.8936

Surbiton 115 KT Chromite 15/2000 K44/2002RM 2037.427

Hackney 116 KT Chromite 15/2000 K43/2002RM 3414.2622

Forest Hill 117 KT Chromite 15/2000 K43/2002RM 3202.1963

Clapham 118 KT Chromite 15/2000 K43/2002RM 2151.2316

1.6 Employees and Business Plan

The current operational philosophy of Samancor Chrome Limited is to manage each of the mining

operations as a separate entity with a full complement of employees in the different career

streams of Mining, Engineering, and Metallurgy. Support services e.g. Human Resources, Finance

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& Admin, Logistics, Mineral Resources, SHEQ and Senior Management) functions are managed

centrally Shared Services.

Lwala mine is a new operation which is currently operated by Open Cast Mining Contractor. The

majority of the current contractor compliment has been sourced from the surrounding

communities through Lwala Steering Committee. A and B band levels constitute the majority of

the labour force which, as per the career paths, requires minimal experience and qualifications

as an entry level.

A general principle has been adopted with the local communities where Samancor Chrome

utilizes their database of unemployed individuals in the communities from which the mines

preferentially recruit. This arrangement is also applicable to Lwala recruitment process in order

to maximize the socio economic benefit of the mine to the communities surrounding the

operation and the host province. The mine will maintain a strong focus on local recruitment

throughout the life of the operation.

1.7 Expected Workforce at Lwala Mine

Samancor Chrome’s policy of encouraging local recruitment wherever possible requires that the

workforce, including contractors, to be employed mainly from Fetakgomo Tubatse Local

Municipality (FTLM). An arrangement is in place with Lwala Steering Committee that facilitate

sourcing of CV’s for unskilled and semi-skilled positions, with emphasis on community members

residing within five (5) farms that form Lwala Mining Right area.

The current workforce at Lwala Mine which mainly comprises of contractor employees is 146

employees with a planned ramp- up to 495 employees on full production over five to six years.

Throughout this build-up, Lwala mine will continue with their strong focus of recruitment from

the local communities.

An updated details regarding actual number of employees per labour-sending areas will be

compiled and reported annually to the DMRE.

Table 2: Estimated Permanent Lwala Mine Workforce

Employment Level Forecast

2018 2019 2020 2021 2022

E Senior Management 0 0 0 0 0

D Middle Management 2 2 3 3 3

C Junior Management 16 16 20 20 20

B Semi-Skilled 27 27 100 100 100

A Unskilled 21 21 80 80 80

Total enrolled employees 66 66 349 349 349

Total Core Contractor employees 146 146 146 146 146

GRAND TOTAL 212 212 495 495 495

NB: Figures indicated in Table 2 above are estimates and they will be reviewed annually in line with ramp-up

progress and production needs.

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1.8 Methods to facilitate SLP Implementation

Lwala will use the following methods to ensure the successful and appropriate implementation

of the SLP:

(i) Ensuring continuous implementation of the Action Plans set out in the various sections

of the SLP.

(ii) Updating and/or reviewing all the baselines and target tables in this document to ensure

continuous monitoring.

(iii) Conducting regular meetings to discuss successes and address challenges.

(iv) Regular meetings will be held between Samancor ECM and the contractors to monitor

their implementation plan with regard to the SLP commitments.

Figure 3: Methods of Implementing the SLP

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SECTION 2

HUMAN RESOURCES

DEVELOPMENT

PROGRAMME

Regulation 46(b)

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2 HUMAN RESOURCES DEVELOPMENT PROGRAMME

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, empowering the historically

disadvantaged South African (HDSA) employees to progress to higher levels of employment in

the organization. The programme should also enable them to exploit alternative income-

generating opportunities outside the organization should they wish to leave us.

This section will outline the mine’s Human Resource Development (HRD) Programmes as required

by Section 46 of the Regulations to the MPRDA. This mining project is still in its early phase of

development and, ultimately, the large majority of the workforce will not be employed by

Samancor Chrome directly. Nonetheless, Samancor 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, where required, to the Core Contractor’s workforce. The Core Contractor in this case

will be the Mining Contractor that started on site in March 2017.

The HRD Programme for Lwala is based on the Company’s HRD Strategy, with the following key

focus areas:

(i) Recruitment;

(ii) Talent Management;

(iii) Learnerships

(iv) Literacy and Numeracy Training (AET).

Continuous monitoring and evaluation of the implementation of all HRD Programmes as

contained in this SLP will be conducted.

Lwala requires a skilled workforce for daily activities at the proposed mine, and will therefore

offer training support and career development opportunities to its employees, in particular to

the Historically Disadvantaged South African (HDSA) employees from the local labour sending

areas.

Lwala mine will comply with the requirements of the Skills Development Act (No 97 of 1998) and

will submit Skills Development Plans and Annual Training Reports to the Mining Qualifications

Authority (MQA).

Table 3: Compliance with Skills Development Legislation

Name of SETA Mining Qualifications Authority (MQA)

Registration number with the SETA 16/MQA/0695/AC4/061216

Confirmation of having appointed a Skills Development Facilitator

Appointment letter/Appendix attached

Proof of submission of Workplace Skills Plan and date of submission

See Appendix attached

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In order to ensure proper implementation of the HRD Programme, the Company will utilize

accredited providers, where necessary, for their training needs, in order to ensure the on-going

facilitation of transferable, accredited skills amongst employees.

2.2 Approach

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

employed by or contracted to Lwala, through the implementation of the following plans:

(i) A Skills Development Plan

(ii) A Career Progression Plan

(iii) A Mentorship Plan

(iv) An Internship and Bursary Plan

(v) 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 on compliance with the Mining Charter requirements.

The progress on the HRD Programmes will be reported on annually and assessed after a five-year

period, where after a new five-year plan will be developed and submitted to the DMRE.

In addition to the formal processes to achieve career progression, individuals can also be

identified through an informal process to advance and be promoted to higher positions. This

process is not documented but the company do provide assistance through study assistance,

internal training and on-the job training.

2.3 Human Resources Development Programme Model

The simplified model below shows how the mine’s business plan, projected labour requirements,

WSP and Employment Equity (EE) targets are integrated into each other to create a skills

development scenario

Figure 4: Simplified Strategic Human Resources Development Model

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2.4 Recruitment

Recruitment of labour will be guided by the Company’s recruitment strategy, which

stipulates the employment of local labour by the mine as well as by any appointed

contractors.

A commitment to recruit unskilled and semi-skilled labour from local communities, is the

obligation Samancor Chrome made with communities and such an obligation will be

enforced to ensure contractors do comply in an endeavour to optimise economic benefits

for local communities.

2.5 Skills Development Plan

2.5.1 Introduction

Lwala recognises the importance of its future 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

proposed mine’s business objectives.

The Core Contractor will develop its own Skills Development Plans which will be in line

with the principles of the current Eastern Chrome Mines HRD Programme.

Lwala will implement a Skills Development Plan that focuses on equipping future

employees with skills to enhance their progression and development in the mining

industry, but will concentrate on community development initiatives until such time as

the mine begins to recruit permanent employees.

The Skills Development Plan provides action plans and targets how Lwala intends to offer

its future 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 Lwala Skills Development Plan links with Skills Development legislation, and includes

the regular submitting of a Workplace Skills Plan (WSP) and annual training reports. This

includes the paying and claiming of levies and grants with the relevant Sector Education

and Training Authority (SETA) with which the operation is registered, i.e. the MQA.

2.5.1 Adult Education and Training

2.5.1.1 Overview

The Company is committed to developing the educational levels of its future employees

and Adult Education and Training (AET) will be a key focus area. Lwala has no employees

at present and therefore, no baseline information on educational levels and Functional

literacy and Numeracy levels is available. Statistics indicate that the local communities in

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this area have low percentages of people with matric and high unemployment rates.

However, many of these people have the necessary skills to work on the mines as many

were previously employed on the mines but subsequently retrenched due to the current

economic downturn.

Although Lwala prescribes to employ locally, there is a strong possibility that people with

rare skills and competency without functional literacy might be employed and will

possible require AET training.

Table 4: Form Q – educational levels of the workforce (Regulation 46 (b) (i) aa)

AET implementation targets for Share Services will be accounted and reported in the Tweefontein Mine Social and Labour Plan.

Band NQF level

Classification system

Lwala Mine Core Contractor Employees

Grand Total

Male Female Total

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

General Education and Training (GET)

No schooling/Unknown 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

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

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

Grade 3/Std 1/ AET 1 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

Grade 5/Std 3/ AET 2 0 0 0 0 0 0 0 0 0 0 0

Grade 6/Std 4 2 0 0 0 0 0 0 0 2 0 2

Grade 7/Std 5/ AET 3 3 0 0 0 0 0 0 0 3 0 3

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

1 Grade 9/Std 7/ AET 4 2 0 0 0 0 0 0 0 2 0 2

Further Education and Training (FET)

2 Grade 10/Std 8/N1 34 0 0 0 0 2 0 0 34 2 36

3 Grade 11/Std 9/N2 38 0 0 0 0 5 0 0 38 5 43

4 Grade 12/Std 10/N3 49 0 0 0 0 4 0 0 49 4 53

Higher Education and Training (HET)

5 Certificates 0 0 0 0 0 0 0 0 0 0 0

6 First degrees/Diplomas 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

8 Masters/Doctorates 0 0 0 0 0 0 0 0 0 0 0

Total 135 0 0 0 0 11 0 0 135 11 146

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

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2.5.1.2 Targets

Samancor Chrome has adopted minimum educational requirement of Grade 10 as a

prerequisite for employment. However, there are instances where some of the potential

employees due to critical nature of their skills and experience, such a minimum

requirement is not observed. The following targets are based on the assumption that

employees who are below functional literacy level (Grade 10) will enrol and complete the

programme within the prescribed period. Since enrolment is voluntary, those employees

who are not interested in the programme will be required to sign disclaimer.

Currently, ECM has a strategic and integrated approach to AET whereby part time

literacy, numeracy and basic oral programmes are available (mine training centre and on

sites) to all employees and interested community members. Interested and affected

community members will also be offered an opportunity to enrol for AET Programmes in

consultation. However, the internal uptake of AET has been minimal despite several

initiatives and incentives to encourage employees. Furthermore, the completion rate

over the period of time has been dismal at around 23%. Interestingly, completion rate

for community members who participate is excellent. It’s however ironical that during

community engagements high interest has been shown in job related training

programmes e.g. Generic Engineering Training and Competent B.

Targets below are for the core contractor as Lwala mine’s permanent employees are still

to be employed during the year 2020. For shared services targets as per Form Q (Table

1), will be accounted for and reported in the Tweefontein Social and Labour Plan (a

subsidiary of Samancor)

Table 5: Five year plan for AET enrolments

ABET Level Targets

2018 2019 2020 2021 2022

AET 1 1 0 0 0 0

AET 2 2 1 0 0 0

AET 3 0 2 1 0 0

AET 4 7 0 2 1 0

Total 10 3 3 1 0

Budget R35,000.00 R11,550.00 R12,705.00 R4,658.50 R0.00

* Note that these targets will be reviewed annually considering employees movement.

19

2.5.1.3 Action Plan

Table 6: AET - Commitments, activities and timeframes

Category Action Plan Timeframe

AET

The current Eastern Chrome Mines AET policy, strategies and procedures for employees will be used

Year 2020 (Q 1)

Determine capacity and resources requirements

Identify accredited service provider to conduct assessments

Assess employees in terms of skills and competencies gaps for placement purposes.

Secure commitment and buy-in from employees and management

Year 2020 (Q2)

Discussions with the Unions about their perceptions on the proposed AET Programme

Create awareness amongst employees regarding training and education and encourage individuals to undergo training and education.

Commence with training

Update AET plan with targets, timeframes and budgets

Collate information and populate Form Q to confirm baseline. On-Going

Annual assessment and revision of the implementation programme

Annually

2.5.2 Learnerships

2.5.3 Overview

As part of its Skills Development Plan, Lwala will introduce Learnership Programmes with

the aim to provide learners with an occupationally based qualification registered by the

NQF. 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. Learnerships enable learners to work towards a

qualification whilst being employed. Learners will be recruited externally and placed on

in-house Learnerships to assist in addressing skills shortages and challenges.

Due to delayed commencement of Lwala Mine operations, internal learnership

programme will be considered in 2021. Currently there are 40 community members that

were enrolled in various learnership programmes, which will be captured in the table

below as roll-over for the year 2020.

20

2.5.3.1 Targets

The following targets are based on a five-year Learnership Programme. See tables for the

five-year targets. Both the Mining and Engineering (Boilermaker, Fitting, Electrical, Auto

Electrical and Diesel Mechanic) Learnership programmes have an estimated duration of

24 and 36 months respectively. Taking into account the duration of a learnership

programme, it will result in learners’ programmes overlapping annually as depicted in

the rollover figures in the table below. The targets for the annual Mining and Engineering

Internal (18.1) and External (18.2) Learnership intakes are aimed at a 50% Employee and

50% Community split with preference given to HDSAs and females. It’s anticipated that

Lwala mine’s would have reach more than 50% of its planned permanent compliment by 2023,

which will allow for employees to be enrolled in the learnership programme.

Table 7: Five year plan for Learnership enrolments

Programme

Internal Learnership Programme (18.1) Targets

2018 2019 2020 2021 2022

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

Mining 0 0 0 0 0 0 0 0 0 10 0 10 0 10 10

Engineering

0 0 0 0 0 0 0 0 0 6 0 6 0 6 6

Total 0 0 0 0 0 0 0 0 0 16 0 16 0 16 16

Budget R0.00 R0.00 R0.00 R2,073,957.33 R2,073,957.33

Programme

External Learnership Programme (18.2) Targets

2018 2019 2020 2021 2022

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

New

Roll-

over

Total

Mining 6 0 6 0 6 6 0 0 0 10 0 10 0 10 10

Engineering

0 40 40 0 40 40 0 40 40 6 0 6 0 6 6

Total 6 40 46 0 46 46 0 40 40 16 0 16 0 16 16

Budget R5,962,627.18 R5,962,627.18 R5,184,893.20 R2,073,957.28 R2,073,957.28

21

2.5.3.2 Action Plan

Table 8: Learnerships - Commitments, activities and timeframes


Learnerships

Review and evaluate selection criteria and obtain agreement with stakeholders.

2020 Q1 Advertise and promote learnerships amongst local communities.

Re-evaluate the future skills needs of the mine

Refine and update five year learnership plan with targets, timeframes and budgets

2020 Q2 Allocate mentors to learners tasked with supporting the learner through the process


Annually

2.5.4 Skills Training Programmes

2.5.4.1 Overview

Skills training programmes offered at ECM aim to ensure that employees acquire the

necessary skills and competencies to successfully perform their respective tasks

according to the operational and legislative requirements.

These skills training programmes are also designed to equip employees with the required

capacity and skills to progress to higher levels of employment at the mine and consists

of, among others, novice training, licensing of equipment/machine operators, national

legislative skills programmes that are registered with the relevant SETA as well as

supervisory and managerial programmes.

Skills Training Programmes will cover a range of important skills. Given the challenges of

Safety Management in mining, Health and Safety skills has been identified as one of the

key skills priorities followed by technical, supervisory, education and environmental

management skills.The mine’s skills training programmes offer employees the

opportunity to implement their employment responsibilities and will also continue to

focus on HDSAs and Female employees.

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 within Lwala as per individual Career

Progression Plans.

22

The career paths discussed in Section 2.7.2 will identify the minimum requirements and

experience for each position. This will serve as a framework for planning any training and

development

2.5.4.2 Targets

Targets have been developed, based on the development plans of individuals in the

current workforce, hard-to-fill vacancies, scarce skills in the industry and the strategic

skills needed by the company to deliver on their business objectives.

These programmes are also intended to ensure promotional opportunities from within

the ranks of the company thus ensuring job security for current employees and entry

level employment opportunities for members of our local communities at the mine.

The Skills Training Programmes on this SLP have been grouped into categories to ensure

simplified reporting, although the specific breakdown of the various training

interventions will be kept on the Mines Learner Management System. A further

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

employees beyond their employment at the mine.

Once the recruitment of the workforce commences, individual-specific training will be

planned based on the outcomes of the skills analysis and individual Career Progression

Plans developed there from.

Therefore, Lwala will provide several job specific and up-skilling training interventions to

their employees, which will allow them to be incorporated into Eastern Chrome mines

with trained skills.

The following table provides provisional training targets.

Table 9: Five year plan for permanent employees' skills training interventions

Programme Targets

2018 2019 2020 2021 2022 Total

Certificated Training 0 1 1 6 6 14

Computer Based Training 0 1 1 7 7 16

MQA Skills programmes 0 6 6 18 18 48

Mine Licenses 0 12 12 45 45 114

Skills Training 0 20 20 40 40 120

Supervisory & Management 0 1 1 5 5 12

Total 0 41 41 121 121 324

Financial Contribution R0.00 R51,015.80 R54,586.91 R172,374.81 R184,441.04 R462,418.57

*Targets indicated above are estimates and they’ll be reviewed annually taking into consideration the actual staff

compliment.

23

2.5.4.3 Action Plan

The skills development programmes are offered during the employees’ working hours.

These Training programmes are in line with operational needs and individual

development plans. The Skills Training Programme will link with the Career Progression

Plan and Employment Equity Plan.

Table 10: Skills Training Action Plan

Action Required Anticipated

completion Responsible person

Plan 2020 skills training April 2020

HRD Superintendent

(Technical)

Communicate skills training Ongoing

Implement skills training Ongoing

Update LMS, Educational profiles and training matrix Ongoing

Annual assessment and revision of the implementation

programme

Annually

2.5.5 Portable Skills Training

2.5.5.1 Overview

Due to the fact that the mine will only be operational for 2 years, Lwala will equip its

employees with portable skills to enable them to find other forms of livelihood in other

sectors of the economy. A Portable Skills Programme will be implemented during year 2.

It is a reality that many employees will not be able to find employment in the mining

sector. These employees will need to gain skills that they can use within other sectors to

generate income. Closer to the end of the life of the mine or in the event of downscaling,

the Company will focus more strongly on the provision of such skills. The strategies and

skills programmes will be determined in conjunction with the Future Forum and a fund

will be made available for this purpose.

2.5.5.2 Targets

Table 11: Five (5) year plan for Portable Skills Training Interventions

Portable Skills Targets

2018 2019 2020 2021 2022

License: Forklift 4 Wheeler 0 0 1 1 1

License: Manitou (Telescopic Boom Handler)

0 0 2 2 2

24

Portable Skills Targets

2018 2019 2020 2021 2022

ECM Heavy Duty Truck 0 1 1 1 1

License - Truck Mounted Crane (HIAB)

0 1 1 1 1

License: Counterbalance Lift Truck (New)

0 1 1 1 1

ECM License: Mine Bobcat 0 1 0 0 0

Advanced Rigging 0 2 1 0 1

Basic Rigging 0 4 3 3 3

Training: Basic Computer (Portable Skill)

0 6 6 6 6

Skills Programme: Operative - Diesel Mechanic

0 0 1 1 1

Skills Programme: Operative - Fitter

0 1 2 2 2

Skills Programme: Operative - Boilermaker and Plater

0 1 1 1 1

Skills Programme: Operative - Electrical

0 1 2 2 2

Skills Programme: Medium Voltage

0 0 1 1 1

Total 0 19 23 23 23

Budget R0.00 R52,227.96 R63,003.41 R64,075.46 R63,003.41

2.5.5.3 Action Plan

Table 12: Portable Skills - Commitments, activities and timeframes


Portable skills

Develop portable skills strategy in line with life of mine and future downscaling exercises

Year 1 Q 3 Identify service provider that could offer courses

Determine procedures and methodology of training in terms of frequency and duration

Consult with identified employees through engagement structures and use socio-economic baseline to establish portable skills requirement

Year 1 Q4

25


Develop five year portable skills plan with targets, budgets and training schedules

Commence with training Year 2 Q1


Annually

2.6 Hard-to-fill vacancies

Lwala will report annually on its hard-to-fill vacancies through the submission of Form R

(Error! Reference source not found.4 below). Hard-to-fill vacancies represent, in the case o

f a new mining right application, anticipated hard-to-fill or “hard-to-find” positions due

to the limited availability of related skills.

These “hard-to-find” vacancies will be addressed through special recruitment drives,

learnership programmes and bursaries within the broader framework of Lwala’s long-

term business strategy. Designated groups will be given preference in filling vacancies.

The following hard-to-fill vacancies are based on the overall positions that are scarce and

in high demand within the mining environment.

Table 13: Hard-to-fill vacancies as per Form R in Annexure II of the MPRDA regulations

Occupational level

Job title of scarce and critical skill

Main reason for inability to fill the vacancy

Intervention

Middle Management

Metallurgy Superintendent (DU)

Experience of candidates and market demands

Succession Planning

Maintenance Superintendent (DU)

Experience of candidates and high salary demands

Succession Planning and Head hunting

Maintenance Specialist all engineering disciplines (DL)

Experience of candidates and high salary demands

Succession Planning and Head hunting

Mine Overseer (DU) Experience Succession Planning

Rock Engineer (DU) Shortage in the market Succession Planning and GIT programme

Geologist Shortage in the market Succession Planning and GIT programme

SHEQ Specialist Environmental (DL)

Experience and qualifications

Succession Planning

Junior Management

Metallurgy Supervisors (CU)


Succession Planning

Maintenance Supervisor (CU)


Succession Planning

Instrumentation Technicians (CU)

Market scarcity Internal training and development

Payroll Practitioner (CU) Experience and qualifications

Succession Planning

HRD Coordinator (CM) Experience and qualifications

Succession Planning

Mining Shift-boss (CU) Experience Succession Planning

26

Occupational level

Job title of scarce and critical skill

Main reason for inability to fill the vacancy

Intervention

Miners (C2) Qualification Learnership Programme and succession planning

Strata Control Officer (CU) Shortage in the market Succession Planning and GIT programme

2.7 Career Progression Plan

2.7.1 Overview

Career Progression Planning is the process that plans and shapes the progression of

individuals within a Company in accordance with the Company’s needs and objectives,

employees’ potential and their preferences. Career Progression Plans is the outcome of

workforce planning and skills analysis processes and will be continually reviewed through

discussions between line management and employees.

Learnership programme, Graduate Development Programme, Skills training programme

and Individual Development Plans form basis of a career progression plan, which will

enable the employees to be provided with the correct skill and pathing to have the

opportunity to progress to a higher position. The progression will not be limited to Lwala

operation, but it will be in the much larger Samancor Eastern Chrome mines, which also

have a much longer operational life, which will allow the employees who do progress, to

settle into the position and gain experience, but also to progress even further.

2.7.2 Career Paths

The Career Progression Plan aims to illustrate a Career Path for employees, indicating

possible routes to move or change from one role or position to another within a specific

discipline. This will be achieved through defining competencies, such as skills and

experience required by the various job categories. Competency profiles for each job have

been developed and they’ll be discipline specific within the operational area.

2.7.3 Progression Plan

Lwala will promote career progression and succession opportunities among its

employees. Lwala will implement a Career Progression Plan by means of the following:

(a) The current Eastern Chrome Mines Career Progression policy, procedure and

programme, which is operation specific and contextually relevant to the

employment levels, organogram, workforce, skills needs and Employment Equity

needs of Eastern Chrome Mines will be used.

(b) The Career Progression Programme will be implemented for a five (5) year period

and will be reviewed annually.

27

(c) The Career Progression Programme will be linked to the Skills Training

Programme, Learnership Programme, Internship and Bursary Programme,

Mentorship Programme and Employment Equity Programme.

(d) These must be closely aligned and linked to scarce skills needs, job-related skills

and employee development/progression at Lwala as well as Eastern Chrome

Mines.

(e) Mechanisms will be put in place for individuals to progress from lower skilled

working levels to higher skilled working levels and management levels should job

opportunities arise and positions become vacant.

(f) The Career Progression Plan will ensure that the qualifications, aspirations,

developmental needs, and potential capabilities of employees are accounted for

in line with the needs and capabilities of Samancor.

(g) Lwala will identify those employees who require further skills in their current

position, as well as employees who require further skills aimed at Career

Progression to fill a future position. In order to achieve this, Lwala will:

(i) Identify HDSA employees that do not meet the skills requirement for their

positions.

(ii) Schedule skills development interviews with these employees.

(iii) Develop suitable skills development plans with these employees.

(iv) Implement the actions necessary to achieve these plans.

(v) Monitor and review the plans on a monthly basis.

2.7.4 Establishing a Talent Pool

Lwala will endeavour to identify HDSA candidates with potential to accelerate their

progression into management positions within a specific timeframe. Establishment of

talent pool and fast tracking of candidates has begun with employees that are placed

under Shared Services and seconded to Lwala mine. Below, is the list contemplated for

the programme over a period of five (5) years and individual development programmes

will be signed-off the responsible E-Level manager.

From the talent pools, departmental succession plans are developed and reviewed

annually. These employees will have an individual development plan and training map

which are updated annually.

Formal Career Progression - (Nominated) Processes Lwala Mine is committed to allow employees to be formally developed by means of a fair selection process. This process is documented and forms part of selected employees

28

IDP’s (including all employees on study assistance). Business needs will be regularly reviewed which in turn will depict the company’s critical skills needed thus informing the Formal (Nominated) Process.

2.7.5 Action Plan

The five-year targets are set by considering labour planning, labour turnover and projections of possible increased production.

Table 14: Talent pool and fast tracking programme targets at Lwala Mine

Employee categories Talent pool and Fast tracking targets

2018 2019 2020 2021 2022

IDPs (Learnerships, Bursars, Internships)

66 64 59 53 51

Fast-tracking programme and Succession Pool

13 13 13 13 13

TOTAL 79 77 72 66 64

Table 15: Career Progression - Commitments, activities and timeframes

Action Plan Responsible Person Timeframe

Provide a list of the job categories, design role descriptions, indicating minimum job-entry requirements and desirable qualifications

HR Superintendent (Operation)

2020 (Q1)

Design career paths for each discipline HR Superintendent (HRD) 2020 (Q1)

Identify specific HDSA employees and ensure that adequate resources are in place to assist them to reach their full potential

HR Specialist (OD) 2020 (Q2)

Develop fast-tracking plans for those HDSA employees identified as having significant potential to progress to managerial roles


Develop detailed career progression plan for talented lower level employees (IDP)


Organize meetings between employee and supervisor to sign agreement on development path

HR Specialist (OD) Ongoing

Report on quarterly progression of skills development in line with development plans

HR Superintendent (HRD) Ongoing

29

2.8 Mentorship Plan

2.8.1 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.

For Lwala internal mentorship means an “in-house” mentorship whereby lower level

employees are paired with higher level employees in order that a transfer of skills may

take place.

Lwala will establish a detailed Mentorship Programme during the labour build-up stage

and will be implemented as soon as all mentors and mentees have been identified. The

Mentorship Programme will be based on the Lwala Career Progression Programme and

Talent Pool.

2.8.2 Targets

The Mentorship Programme will focus on mentoring and coaching employees into more

specialised positions. This will be aligned with the skills and Employment Equity

requirements of Lwala. The following commitments will be the basis for Lwala mine

mentorship programme.

(a) The Mentorship Programme will be linked to the Skills Training Programme,

Learnership Programme, Career Progression Programme, Internships and Bursary

Programme, and Employment Equity Programme.

(b) With regard to internal mentorship of employees, Lwala will implement the

following mechanisms:

(i) Establish mentoring implementation structures within Lwala;

(ii) Identify mentors / mentees;

(iii) Match mentors with suitable mentees;

(iv) Implement and monitor mentee’s progress; and

(v) Evaluate and fine-tune the process.

(c) Mentorship coordinators will be trained to facilitate the mentorship process and

provide guidance where required, i.e. the relevant people from Lwala, who have

been earmarked to be mentors, will need to be formally accredited as mentors.

Currently, mentorship programme covers the following area:

Graduates in Training

30

13 employees placed under Shared Services responsible for Lwala operation

(Table 11)

40 Learnership candidates already enrolled.

In-Service Training Candidates.

2.8.3 Action Plan

Table 16: Mentorship - Commitments, activities and timeframes


Review ECM mentorship framework and methodology HR Manager 2020 (Q1)

Develop a measurement system to measure the effectiveness of the mentoring process


Identify service provider to present formal training for new mentors participating in the programme


Identify new mentors and mentees for employees that will be employed during 2020


Sign contract/agreement with identified mentors and mentees


Implement formal mentorship programme HR Specialist (OD) 2021

Report on progress of mentees from mentors Mentors Annually

2.9 Internship and Bursary Plan

2.9.1 Overview

Lwala understands the need not only to assist its own employees with development

opportunities, but also those members of the local community to access tertiary

education (bursaries) and experiential work (internships). The Bursary and Internship

Plan helps to develop individuals, thus supplying the Lwala mine operation with its

required skills.

Mine’s internship programme as an experiential training programme and focusses on

providing exposure to students requiring practical experience towards their

qualifications. The objective of the mine’s bursary programme is to support high potential

students from local communities to obtain tertiary qualification through funding and

assistance in terms of exposure to workplace.

31

2.9.2 Bursary Plan

The objective of the Lwala Bursary Programme is to identify high-potential young HDSA

candidates within the local community. The bursary will be awarded to candidates

planning to study towards a mining-related tertiary education at a recognised South

African University of Technology, tertiary college or university.

The Bursar will undertake vacation work at the mining operation and mentors will be

appointed for the bursar. The bursary provided will be for the duration of the study

course. Student will be enrolled in the Graduate Development Programme (GIT) after

completing their studies.

The bursary is based on a three/four year degree or diploma.

Table 17: Five (5) year plan for Internship and Bursary targets

Bursaries

Internships

2.9.2.1 Action Plan

Table 18: Internships and Bursaries - Commitments, activities and timeframes


Internships and Bursaries

Redefine bursary requirements Year 1 Q2

Align bursary requirements with skills gaps at Eastern Chrome Mines

Advertise locally for candidates, visit schools and other local training institutions Year 1 Q3

Conduct detailed interviews with candidates before awarding the bursary

Programme 2018 2019 2020 2021 2022

Total Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Bursary 0 1 1 2 3 0 3 2 2 1 6

Budget R126 000 R404 460 R432 771 R771 775 R495 480 R2 230 486

Programme 2018 2019 2020 2021 2022

Total Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Roll-Over

New Intake

Internship 2 3 0 3 0 3 0 3 0 3 15

BUDGET R360 000 R231 120 R247 299 R264 609 R283 131 R1 386 159

32


Recruit bursar for vacation work and experiential training Year 2

2.10 Employment Equity Plan

2.10.1 Overview

Lwala fully subscribes to the principles of the Mining Charter and strives to achieve more

than the minimum requirements. The Company believes that Employment Equity is an

integral part of building an effective and representative workforce to ensure equality

among its future employees. Particular effort will be directed to identify women in core

positions and HDSAs with talent and to then provide accelerated training and

development initiatives to assist their progression – see Talent Pool (Section 2.7.4).

Lwala will report to the Department of Labour (DoL) annually in respect of its

Employment Equity progress. Concurrently, Lwala will report progress in terms of HDSA

in Management and Women in Core Mining to the DMR.

The following plans describe the participation of HDSAs in Management and Women in

Core Mining in line with the requirements of the MPRDA and Mining Charter, and focuses

on the following:

(a) The proposed mine’s management structure (D band and core and critical skills)

will comprise 60% HDSAs during the employment process from 2020 working

towards revised Mining Charter targets.

(b) The Company will attempt to reach a target of 25% of its core mining activities

comprising of women during the employment process. If this is not feasible,

Table 19: Preliminary Employment Equity statistics as per Form S in Annexure II of the MPRDA

regulations

Categories Male Female

Total HDSA % HDSA Females %

Females A C I/A W A C I/A W

D-Level 3 0 0 2 1 0 0 0 6 4 67% 1 17%

C-Level 7 0 0 5 3 0 0 1 16 11 69% 4 25%

B-Level 5 0 0 0 3 0 0 0 8 8 100% 3 38%

Total 15 0 0 9 7 0 0 1 30 23 72% 8 25%

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

*Note that these figures indicated above are ECM Shared Services employees that are seconded to Lwala Mine.

Targets will be updated as soon as planned 2020 compliment has been enrolled.

33

2.10.2 HDSAs in Management Targets

Lwala will ensure that a minimum of 60% middle and junior management is composed of

HDSAs during the employment process in 2020.

This mechanism will result in “true” empowerment of individuals and contribute more to

transformation of the mining industry. Lwala hopes that by following this approach, the

mine will be able to make a sustainable contribution to the affected communities.

Table 20: Five (5) year plan and targets for HDSA participation at Lwala in line with revised

Mining Charter Targets

P- Levels

Baseline Mining Charter Targets

% Females

% HDSA

2018 2019 2020 2021 2022

HDSA Female HDSA Female HDSA Female HDSA Female HDSA Female

Mid. Management (D-Level)

17% 67% 60% 25% 60% 25% 60% 25% 60% 25% 60% 25%

Jnr. Management (C Levels)

21% 64% 60% 20% 60% 20% 60% 20% 60% 20% 70% 30%

*Note that these figures will be reassessed on a regular basis in terms of their applicability to Lwala’s circumstances

at a given time.

2.10.3 Action Plan

Table 21: HDSAs in Management - Commitments, activities and timeframes


Ensure that recruitment and skills development strategy is in line with targets set

HR Manager Year 1 Q1

Implement employment equity measures to appoint and promote suitably qualified HDSA employees

HR Manager

Facilitate Employment Equity committee meeting that will comprise of members of the Company’s management and employee representative bodies, to report on progress

Transformation Superintendent

Quarterly

Review HDSA talent and Fast Tracking pool for the Mine

HR Specialist (OD) Bi-annually

Resubmit revised HDSA in management targets HR Specialist (OD) Annually


HR Specialist (OD) Annually

34

2.10.4 Women in Core Mining Targets

In order to address the historical issues of South Africa, the current Eastern Chrome

Mines gender equality policy and plan will be 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. Lwala endeavours to reach the 30% target in the

third year of operation.

Error! Reference source not found. 23 below provides a breakdown of the estimated t

argets that have been set for increasing the participation of women in core mining.

Table 22: Five (5) year plan and targets for the participation of women at Lwala Mine

Occupational level

2018 2019 2020 2021 2022

Percentage women

Percentage women

Percentage women

Percentage women

Percentage women

D level 17% 17% 25% 25% 25%

C level 23% 23% 23% 23% 30%

B level 10% 10% 10% 10% 10%

A level 10% 10% 10% 10% 10%

*Note that these figures will be reviewed on a regular basis in terms of their applicability to Lwala’s circumstances.

2020/21 mine development activity, it’s envisaged that women candidates for core mining positions might be

difficult to find in the market. Gaps will be accommodated in the development programmes already committed

herein.

35

SECTION 3

MINE COMMUNITY

DEVELOPMENT

Regulation 46(c)

36

3 LOCAL ECONOMIC DEVELOPMENT PROGRAMME

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 Lwala Mine LED Programme for the period 2018-2022. The

programme has been designed as working documents to facilitate the appropriate

implementation of Social Labour Plans.

The commitment to implement a sustainable community development initiative is

motivated by the requirement to participate in LED as intended in the SLPs and also to

be recognised as a preferred business partner and a valued corporate citizen.

The LED programme will seek to promote alignment of LED initiatives to those of the

Integrated Development Plans (IDPs) of the Fetakgomo Tubatse Local Municipality

(FTLM) and Sekhukhune District Municipality (SDM).

The mine’s LED programme will be implemented over a 5 year period as a lifecycle of the

SLP to focus on:

Aligning sustainable development plans with the FTLM and SDM IDPs establishing

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

poverty eradication, skills development and the provision of education provision

Establishing LED project(s) that can assist in infrastructure development, welfare

creation and poverty eradication; and

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

The following primary plans will form the basis of Lwala’s LED Programme:

(a) A LED Project Plan;

(b) A Housing and Living Conditions Plan; and

(c) A Procurement Plan.

The focus of the Lwala LED Programme for Year 2018-2022 will be on:

37

3.2 Socio-economic background

3.3 Introduction

Lwala mine is situated in the Fetakgomo Tubatse Local Municipality (FTLM) within

Sekhukhune District Municipality (SDM) Limpopo Province in South Africa. A desktop

background socio-economic study on the immediate area of operation has been provided

in the socio-economic analysis, discussed below.

3.4 District and local socio-economic regional analysis

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

objectives of the SDM and FTLM IDPs relating to each aspect of the socio-economic

environment of the municipalities will also be explained.

Socio-economic data have been sourced from the 2019/20 National Census information,

as captured on Stats South Africa’s local government website and Gaffney’s Local

Government in South Africa Handbook 2011–2013.

3.5 Overview

Fetakgomo Tubatse Local Municipality has a total of 39 wards, making it the third (3rd)

largest municipality in the Limpopo Province in terms of wards after Polokwane with 45

wards and Thulamela with 41 wards. The municipality has a total of 77 councillors. Of

these, 39 are ward councillors while 38 were proportionally elected. The municipality

comprises approximately 342 villages. The municipality is largely dominated by rural

landscape with only 06 (six) proclaimed townships. Like most rural municipalities in the

Republic of South Africa, Fetakgomo Tubatse Local Municipality is characterised by weak

economic base, inadequate infrastructure, major service backlogs, dispersed human

settlements and high poverty levels.

Community survey conducted in 2016 indicates amble evidence that the Fetakgomo

Tubatse Local Municipality households are increasing immensely from 106 050 in 2011

to 125 454 in 2016; which makes the municipality the biggest municipality in the District.

The municipality has shown a growth of 8% in 2016 which might be due to the mining

activities taking place in the area. Mines constitutes 4 121 hectors (0.7%) of the overall

municipality’s land cover coverage of 570 674 hectors.

3.6 Population demographics

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

and language. It is important to know the demographic breakdown in order to ensure

that any LED projects and empowerment interventions target the majority of the

population, so that these projects have a large-scale impact.

38

As shown in the table below, the FTLM is dominated by black South Africans while the

white population outweighs the other minority population groups, almost all Black

Africans (94%) speaks/spoke Sepedi as the first home language, followed by IsiZulu at

(1.2%),. Therefore LED projects should target the majority black population in order to

have great impact on the ground.

3.7 Income Levels

Over the past years a decline in the annual income level in the FTLM has been recorded.

Majority of people are reported to have no income or to be living just below the

threshold. As a result of that poverty levels are increasing. The extreme poverty and rural

conditions in the FTLM 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 23: Annual Household Income Levels

Income level 2011 2007 2001

No income 45,253 64,233 121

R 1 - R 400 22,187 26,218 484

R 401 - R 800 2,419 1,905 509

R 801 - R 1 600 12,087 13,699 831

R 1 601 - R 3 200 1,678 1,685 1 475

R 3 201 - R 6 400 2,281 761 1 224

R 6 401 - R 12 800 1,81 1864 165

R 12 801 - R 25 600 1,034 588 33

R 25 601 - R 51 200 157 167 8

R 51 201 - R 102 400 25 0 6

R 102 401 - R 204 800 28 0 0

R 204 801 or more 27 0 3

Unspecified 4,736 - -

Not applicable 74 - -

39

Figure 5: Annual Income Levels

3.8 Social dependency

The high dependency rate places a significant burden on the employed individuals, job

creation and basic service provision to people in the SDM and FGTLM. The dependency

rate 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.

The figure below show the 2017 South African Social Security Agency beneficiary list. And

the dependency level of different grants.

0 200 400 600 800 1000 1200 1400 1600 1800 2000

No income

R 401 - R 800

R 1 601 - R 3 200

R 6 401 - R 12 800

R 25 601 - R 51 200

R 102 401 - R 204 800

Unspecified

Annual Income Levels

2001 2007 2011

40

Figure 6: Total number of beneficiaries

3.9 Basic Service Delivery and Infrastructure Development Analysis

The Fetakgomo Tubatse Local Municipality (FTLM) analysis of infrastructure and basic

services such as water, sanitation, electricity, housing, refuse removal, roads, storm

water drainage system and public transport and telecommunication. The Sekhukhune

District Municipality is the water authority however the FTLM has a role of identifying

water backlogs in its jurisdiction.

3.10 Free Basic Water

Fetakgomo Tubatse Municipality (FTM) is neither a Water Services Authority nor a Water

Service Provider. These functions was assigned to the Sekhukhune District Municipality

(SDM). The SDM is responsible for provision of Free Basic Water (FBW) to the 39 wards

of the municipality. Fetakgomo Tubatse Municipality is classified as a water stressed

municipality. According to community survey 2016 records that 58 255 have access to

piped water and at 67 208 have no access to piped water. Primary sources of water in

the municipality are boreholes, rivers, dams and tanking systems.

Water provision statistics in the Municipality indicates that water shortage is the main challenge in all the villages or 39 wards. The main causes of water shortage or deficit is the insufficient sources of water. The backlog is estimated at 90 %. One of the main challenges is the water illegal connections, limited communal, aging infrastructure, drought, lack of financial resources, topography of the area, informal and scattered

0

20000

40000

60000

80000

100000

120000

140000

160000

Total Number of Beneficiaries

Total Number of Beneficiaries

41

settlements, Fetakgomo Tubatse Municipality not water authority, insufficient bulk supply and water sources. Almost 352 (90%) villages have no access to water and depend on privately owned water sources and boreholes, as tabled below.

Table 24: Access to water

Water Source Total Households Percentage

A municipality 47271 37.71

Other water scheme (e.g. community water supply) 29161 23.26

A water vendor 7712 6.15

Own service (e.g. private borehole; own source on a farm; et 21638 17.26

Flowing water/stream/river/spring/rain water 17203 13.72

Do not know 2258 1.8

Unspecified 117 0.09

Grand Total 125361 100

3.11 Access to Safe Drinking Water

The table below as recorded by the community survey 2016 indicate that 78584 (62.69%) of households have access to safe drinking water supply service and further records that 44 427 (35.44 %) have no access to safe drinking water supply service.


Access to drinking water Percentage

Yes 78584 62.69

No 44427 35.44

Do Not Know 1623 1.29

Unspecified 726 0,58

Total 125 361 100

The municipality is providing free basic water services to its communities, most of the

households are classified as poor or indigent – where the total income is below R1, 500

per month. Present, approximately 60% of the households fall into this category,

however the municipality is supposed to be updating its Indigent Register on an annual

basis. These are the households to which Free Basic Water must be supplied, and to

whom the Equitable Share subsidy applies.

42

3.12 Rivers as a Natural Water Source

There are three main rivers in the GTM, namely the Spekboom, Steelpoort and the

Olifants, which is the largest. The existence and topography of these water sources

present an opportunity to create water storage facilities. The construction of De hoop

dam in the Steelpoort River was anticipated to have major benefits for agriculture, as

well as for general development in the region. There is a need to carefully assess the

water needs of the area, taking into consideration the development of the mining

industry, which in itself need large quantities of water. Given the present water needs in

the municipal area, an increase in storage facilities or the expansion of the existing

storage facilities needs to be investigated.

Due to the lack of waterborne sewerage infrastructure in many of the villages, one of the

major challenges is the pollution occurring in these rivers. These rivers are a major source

of drinking water for the communities who do not have access to piped water. These

rivers are also used for irrigation purposes for agricultural activities within the municipal

area.

3.13 Action Plan Indicating the Zone Of Focus of the Samancor ECM LEDP

The zone of impact1 and focus areas of the Samancor ECM LED Programme are described

below.

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

Samancor ECM is the FTLM, within the SDM. The Samancor ECM LED will focus on this

area and in particular Roka Mashabela and Magadimana Ntweng Communities.

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

distributed among other areas. Therefore the SLP initiatives will further seek to empower

those employee households to engage and/or benefit from LED activities in the relevant

local municipalities.

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

3.15 The Impact

During the operation of Lwala mine, local communities are provided with jobs and input

services to the mining operation. Communities will further benefit from direct and

indirect spending by the mine. The mines 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 Lwala mines:

43

Job creation, employees and their households:

Fetakgomo Local Municipality residents account for an estimated total of 2354

employees from 2990 total workforce of the combined Samancor Chrome mines in the

area. These employees and their households are benefiting from salaries and other

employment benefits.

Considering that the mining industry is challenged by external factors, 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 Lwala

Mine to plan for the mine’s eventual interruption and to put mitigating measures in place,

by encouraging and promoting alternative economic spin-off and offtakes that will

sustain communities beyond the life of mine. These initiatives should assist employees

and community members to find alternative sources of income outside of Lwala Mine

and the mining industry at large.

Surrounding and labour-sending communities:

As explained, the mines’ workforce comes from a large number of labour-sending areas.

The incomes earned by these employees translate into spending power that benefits

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. Lwala

Mine’s spending on goods and services also contributed significantly to the local

economy.

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

Samancor Chrome: ECM will establish an Enterprise Development Strategy 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 participants

through business opportunities available at Lwala Mine, as well as in other enterprises in

the area.

Poverty eradication:

Besides the positive impact Lwala Mine 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. The mine will aim its constructive input through LED initiatives in order to

coordinate efforts to bring about sustainable change. In addition to the contribution to

the economy, the mine will also contribute a significant amount of money in form annual

rates and taxes to the government. These funds are utilised by government for many

purposes, one being the distribution of wealth and implementation of service delivery

related initiatives.

44

3.16 Infrastructure development, poverty eradication and welfare creation projects

3.17 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. The mine aims to support 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 FTLM and SDM.

3.18 Baseline Situation

Samancor Chrome: ECM has entered into a lease agreement with both Bakone Ba

Manyaka and Roka Mashishi on Clapham and Forest Hill farms respectively for a total

area of 739 Hectares. To date an amount of or R50 million has been paid (including crop

fields compensation) mainly towards community development by tribal authorities.

Such funds have been utilised towards social responsibility activities including:

Repair of infrastructure, such as school buildings, water pipelines and grading of

roads

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

at Ga-Mashishi

Support of orphanages, food schemes and functions

The FTLM has established an LED Forum aligned with the municipal’s IDP. ECM has

consulted extensively with the community structures, ward councillors and traditional

authorities within FTLM and SDM to align SLP LED initiatives with the municipal IDPs.

3.19 Action plans and projects

3.20 Project selection and implementation mechanism

The process of selecting a suitable project entailed comprehensive engagements with

Roka Mashabela Tribal Council, Magadimana Ntweng Council, Ward Councillors & Ward

Committee representatives and engagements structure that are endorsed by both

traditional Authorities. Further engagements were held with Sekhukhune District

Municipality through the office of the executive mayor. This was necessitated by a clarion

call from consultative processes that water is a key priority for communities.

The intervention and/or required entails provision of sustainable and reliable water supply. Previous interventions focused mainly on drought relief initiatives i.e. drilling of bore holes and installation of plastic water storage tanks. The municipality identified key

45

proposed project that forms part of their future plans. Already studies have been commissions and business plans submitted to the department of Water Affairs and Sanitation of approval. The main source of municipal fund in this case is Municipal Infrastructure Grant. Lebalelo Central Regional Water Scheme: Sub-Scheme 2A has been identified as an ideal project to be supported due to its proximity to communities that are directly affected by Lwala Mine. Studies have been commissions and the project if implemented in totality stands to benefit approximately 13000 households with 15 villages. The proposed project will enhance the Municipality’s service delivery by delivering portable, sustainable and reliable water supply to the Lebalelo Central Regional Water Scheme; Sub-Scheme 2A. The project will create temporary employment to the local community and also transfer technical skills through on the job training.

The jobs created through this project, together with the envisaged training and skills

transfer will be of substantial benefit including other offtake beyond project

implementation stage i.e. social and economic benefits.

The current water supply in the Lebalelo Central Regional Water Supply Scheme villages

does not meet the required RDP standards in terms of reliability and sustenance. This is

due to lack of adequate source, limited storage capacity and unreliable reticulation

networks.

Lwala Mine will continually assess the current and projected IDP and LED projects and

initiatives in the SDM and FTLM. 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, Lwala Mine took into consideration 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 infrastructure development?

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

projects?

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

The LED project sub-plan will focus on implementing the following mechanisms:

Integration SLP LED activities into the IDPs of the FTLM and SDM, and the

established LED Forum

46

Assisting in implementing LED projects and/or programmes identified in the IDPs

of the SDM and FTLM, 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

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

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

and 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 ‒ to identify possible 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 accesses to healthcare

for employees

Reviewing LED activities on an annual basis and formulating five-year plans

Implementing the LED projects

The formulation and implementation of LED projects will be considered on an ongoing

basis by ECM, in consultation with the FTLM and economic role players in the region. LED

Project assessment process will take into consideration the needs and projects reflected

in the updated IDPs.

47


Project Name: Lwala Mine Water Provision

Project Category: Infrastructure Development Project

Introduction of the

project

The Sekhukhune District Municipality commissioned a study on Lebalelo

Central Regional Water Scheme: Sub-Scheme 2A and this project is based on

the report sourced from the district municipality. The project entailed

existing boreholes equipping and electrification, booster pump-station,

pumping mains, service reservoir and village water reticulation networks.

The main aim of the project is to improve water service delivery to the

identified villages. This will be achieved by addressing identified

inadequacies in the existing water infrastructure particularly with regards to

providing quality and adequate water supply.

The water scheme services villages within Twickenham, Surbitorn and

Hackney Farms which forms part of Lwala mining Right area. Currently the

communities are relying on inadequate water supply for boreholes. The

technical report compiled by DIGES Consulting Engineers details the

magnitude of the water supply challenges and possible solutions.

The water challenges are further compounded by:

(i) Rapid population growth,

(ii) Inadequate the storage capacity

(iii) Illegal connection and/or unauthorized extensions to yards.

(iv) Poor maintenance of infrastructure i.e. leaking pipes and existing

storage facilities.

(v) Vandalism

(vi) Limited reticulation networks.

Project Objectives

The project main intention is to provide the communities of Lebalelo Central Regional Water Scheme; Sub-Scheme 2A with a reliable, and sustainable supply of potable water in line Reconstruction and Development Programme (RDP) standards, accommodating the population growth and also in satisfaction of the recommendations of The Strategic Framework for Water Services of the Department of Water Affairs of September 2003.

Augment the existing water sources by equipping, electrifying and connecting to bulk pumping mains, new and existing unequipped boreholes

Install new bulk pumping and gravity supply mains

Augment the existing village water service storage facilities

Improve water storage capacity

48

Project Name: Lwala Mine Water Provision

Project Category: Infrastructure Development Project

Provide an adequate water network that runs through the streets of the villages

Provide employment opportunities to unemployed people within the project area by using labour intensive construction methods where feasible.

Deliverables Year 2018 Budget

Measurable

Deliverables:

Appoint a service provider to: (i) Define scope of work and other

related studies (ii) Review of the available water sources (iii) Conduct water yield test and quality (iv) Analysis of the existing infrastructure (v) Design water infrastructure plan

Tendering process

Appoint a contractor

R500 000.00

Deliverables Year 2019

Measurable

Deliverables: Establishing reliable water source and

storage facilities R7 750 000.00

Deliverables Year 2020/21

Measurable

Deliverables:

Implementation of water reticulation

networks activities R7 750 000.00

Deliverables Year 2022

Measurable

Deliverables: Project hand-over R00.00

Total Budget R16 000 000.00

Provisional Project

Start Date: 2018 pending the approval of the SLP

Provisional Project End

Date: December 2022

Target Group/

Beneficiaries: Roka Mashabela and Magadimana Ntweng (Ntwampe) Communities

Number of Jobs

Created: To be determine and confirmed in the Scope of Work

49

3.21 SMME Development

The objective of SMME development will be for job creation and poverty alleviation for

the Host Communities surrounding Lwala Mine by supporting local SMME’s. This has

been highlighted during consultations with stakeholders from local Government.

The mines will comply with the Mining Charter prescription that every mining right

holder should promote economic growth through the development or nurturing of

small, medium and micro enterprises and suppliers of mining goods and services.

The aim is to assist entrepreneurs in the communities to develop their own businesses

to procure from them and in so doing create job opportunities and growth of business.

Enterprise Development objectives:

To improve the total value-add from the supplier in terms of product or service

offering, business processes and performance, improvements in lead-times and

delivery and relationship management.

To diversify Samancor Chrome’s supplier base to include local business in areas where

we operate

To develop local industries that will supply Samancor Chrome with high quality,

competitively priced, goods and services.

To have an impact that is measurable (set targets), monitored (follow up and

continuous support) and evaluated (results orientated) to ensure continuous

improved quality of and competitiveness (pricing, quality, delivery) of goods and

services, jobs created, local beneficiation and skills transfer.

To develop credible local suppliers for preferential procurement not only at Samancor

Chrome but all surrounding mines operated by other mining houses.

To enhance participation of local communities in the mainstream economy

Lwala Mine’s SMME Support Strategy and Enterprise Support Plan is based on the

following principles and actions:

Focusing specifically on supporting emerging SMMEs in 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

50

Where possible, outsourcing various contracting opportunities to enterprises

operating in surrounding communities

The company will implement the following methodologies in order to advance creation

of sustainable, profitable local SMME’s:

(a) Ring fencing

The company will identify and categorize products and services procured and ring-fence

such for local procurement. The applicable 4 point method is as follows:

(i) Low technical skills and low financial injection required

- Will be allocated to local SMME’s only

(ii) High technical skills and low capital injection required

- A non-local or non BBBEE compliant entity may be appointed with a condition of

providing Lwala Mine with an Enterprise Development plan which should make

reference to transfer of technical skills. Should that plan involve establishment of

a Joint Venture, ECM’s joint venture guidelines will be complied.

- Another option is to unbundle the contract, where low skill components are

allocated to a local SMME trading in the same field

(iii) Low technical skills and high capital injection required

- Opportunities with low technical skills but high capital injection are to be awarded

to local SMME’s, provided the capital injection to be made will be recovered during

the course of the contract.

- The duration of the contract may be extended in order to accommodate the capital

injection required

(iv) High technical skills and high financial injection required

- Opportunities with high technical skill and high capital injection are to be awarded

to competent and capable enterprises, regardless of locality

- The successful bidder should then provide Lwala with an ED plan which related to

transfer of both technical and business management skills

- Sub-contracting, joint ventures or any other option should form part of the plan

The following opportunities will be ring-fenced for local procurement:

Civil Construction

Laundry Services

Parks and Gardens

51

Tuck-shops

Inter-dump Transport

Front-End Loader loading services

Bussing for Employees

Grading, watering and dust suppression – Road maintenance

Tree-felling

Off the shelf consumables e.g. cleaning materials, catering consumables, stationery

(b) Establishment of long-term sustainable businesses

- Over and above providing once off purchasing opportunities and / or long

standing contracts, the mine will assist in the development and creation of long-

terms sustainable business enterprises which will not only service Lwala needs,

but other institutions including other mining houses, government department,

retails stores and the community at large.

- Financial and non-financial support is to be provided in order to aggressively

establish such enterprises.

- Business coaching and mentoring is also to be provided until such time that Lwala

and the SMME’s in question are satisfied with the progress made.

(c) Distribution under licence

- Agreements are to be facilitated between SMME’s with a potential to develop and

grow under a specific sector, with OEM’s.

- These kind of agreements are intended to ensure that SMME’s are exposed to

relevant sectors of the economy and secure long-term sustainable opportunities

without compromising quality as per the mine’s requirements.

(d) Joint ventures

Joint Ventures can be defined as a commercial enterprise undertaken by two or

more parties which otherwise retain their distinct identities.

Joint ventures have been identified as one of the tools which actively assist in

transformation facilitation,

Lwala Mine will facilitate establishment of Joint Ventures under the following

guidelines:

(i) If the successful bidder is a non-local, non BBBEE compliant entity

(ii) Preferably, a Joint venture should have two parties consisting of the successful

bidder and only one (1) local BEE partner

52

(iii) The JV must have elements of success and sustainability

(iv) Both partners must be actively involved in the running of the entity

(v) The BEE partner should play a meaningful role in the entity

(vi) Equity ownership should be informed by the BEE partner’s contribution

(vii) The value of the BEE transaction should be determined by the capital injection

required to service the awarded contract. It should not be based on the total value

of the successful bidder’s entity.

(viii) All tender documents and contracts should clearly state that appointment is

subject to the successful bidder providing an Enterprise Development strategy

which should comply with.

Lwala’s expectations. Such will be presented to Lwala, upon satisfaction, an

appointment will be made.

(e) Sub-contracting

- Sub-contracting or contract unbundling is another method which could be utilized

for purposes of access to opportunities

- In discussion, consultation and agreement with the contractors, awarded

contracts may be broken down in order to appoint emerging SMME’s from the

host communities to service such unpacked portions.

- The main contractor should work hand in hand with the appointed sub-contractor

in servicing or delivering on the sub-contracted portion in order to ensure that

skills transfer takes place.

- This subcontracting clause should be included in the purchase order or contracts

awarded to contractors.

The table below shows budget forecasted over a period of five years to develop

SMMEs’ from local communities. The budget will be used for, but not limited to

purchasing of tools, equipment, and Capacity building, mentorship and market

linkages for SMME’s. Lwala Mine will annually review its business requirements in

order to identify Enterprise Development opportunities.

Table 27: Enterprise Development Budget Lwala

Financial

Year 2018 2019 2020 2021 2022 Total Budget

Enterprise

Development

Budget

R 1 267

060

R 1 393

766 R 1 533 143 R 1 686 457

R 1 855

103 R 7 735 529

53

Table 28: Action Plan Enterprise Development Support Plan

Enterprise Development support plan

Identify opportunities for SMME”s within the mines Ongoing ED Specialist

Identify companies within the Communities to be invited for

tenders

Ongoing ED Specialist

Assist with training, Commercial Skills, technical skills,

professional accreditation (ISO, NHBRC, CIBD) On going

ED Specialist

Assist with monitoring of business legal documentation tax

clearance, letter of good standing and BEE certificate Annually ED Specialist

Ensure big Business’s sub- contract small business’s

(measures in place before awarding the tenders) On going ED

Specialist/Tender

Board

Criteria for the Selection of Viable SMME Alternatives

The following specific criteria will be applied when selecting the Lwala’s SMME Development

initiative:

1. The programme should fall within the provincial socio-economic development growth

strategies.

2. The programme should meet the requirements of the specific legislation/Act applicable

to the identified initiatives.

3. The programme should align with the objectives of the Lwala SLP.

4. The programme should be sustainable and ideally be able to continue once support from

Lwala Mine ends.

Table 29: Tender Action Plan

Tender action plan

Identify potential companies to be invited for tender

(local data base) On going

Contract/Commercial

Dept./ED Specialist

Provide tender information (scope of works) on

opportunities to be tendered (set-a-side projects) On going

Contract/Commercial

Dept./ED Specialist

Encourage Joint-venture opportunities between big

non-compliant companies and local SMME’s On going

Contract/Commercial

Dept./ED Specialist

54

3.22 The Procurement Progression Plan and its implementation for HDSA companies in

terms of Mining Goods and Services

Samancor Lwala Mine 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.

3.23 Approach

The procurement department of Lwala falls under the Shared Services for all the mines. Due to the

nature of all the operations and close proximity to one another, most of the time, the same vendors

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

Targets are set for each operation and individual achievements will be reported at the end of each

Financial Year.

A Preferential Procurement Policy is in the process of being finalised and the company’s

commitment towards BBBEE will be clearly outlined. In terms of the Mining Charter, the

policy specifically focuses on procurement of South African manufactured goods and

services in order to participate in providing opportunities for expanding economic

growth, creating decent jobs and widening market access to the country’s goods and

services. The policy uses the following methodology:

The company will implement measures to promote, affirm, prefer 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.

Local procurement will be used as one of the mechanisms to influence Local Economic

Development in host communities.

If local procurement from host communities is not possible due to lack of capacity and

resources, the Company will look into the possibility of involving local HDSA enterprises

in those opportunities through a number of methodologies, including, but not limited to:

(a) Joint ventures

(b) Sub-contracting

(c) Contract unbundling

All goods and services required at Lwala will be identified and the company will ensure

that procurement of such follows the Mining Charter regulations.

55

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

and internal BEE programs.

Lwala Mine aims to 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 provided the pricing, quality and delivery is to standard, and then

other areas in Limpopo.

3.23.1 The Baseline Situation

In line with the company’s Procurement Policy, Lwala Mine has compiled a Target Plan.

A summary of the total spend and HDSA spend for capital goods, consumables and

services is indicated in the table below This form will be updated on an annual basis to

reflect progress. Preferential Procurement is used by Lwala Mine as one of the primary

mechanisms to effect LED in the communities affected by its operations. Where

preferential procurement is not possible due to a lack of capacity in local communities,

local people may first be developed through various mechanisms depending on nature

of services.

Table 30: Current level of spend by the company on BEE or HDSA vendors

Category 2019 spend on HDSA vendors

Services 89%

Mining goods 79%

3.23.2 Action plan

Lwala Mine will provide HDSA and BEE companies and enterprises with a 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. Lwala Mine will meet and, where possible, exceed

the Mining Charter targets onwards and is therefore likely to achieve or exceed the

minimum targets stated in the table below.

56

Table 31: Targets for increasing HDSA suppliers

Category spend (percentage) Baseline 2018 2019 2020 2021 2022

Mining goods (5 year target 70%

Target) 10% 20% 35% 50% 70% 70%

Goods manufactured by Historically

disadvantaged persons owned and

controlled company

21% 21% 21% 21% 21% 21%

Goods produced by a women or youth

owned and controlled company 5% 5% 5% 5% 5% 5%

Goods produced by a BEE compliant

company 44% 44% 44% 44% 44% 44%

Services (including contractors) (80%

Target) 70% 80% 80% 80% 80% 80%

Services supplied by Historically

disadvantaged persons owned and

controlled company

50% 50% 50% 50% 50% 50%

Services supplied by a women or

youth owned and controlled company 5% 5% 5% 5% 5% 5%

Services supplied by a BEE compliant

company 10% 10% 10% 10% 10% 10%

The action plan for implementing the Procurement Plan in respect of Lwala Mine are as follows:

Table 32: Targets for increasing HDSA suppliers

Action Anticipated completion Responsible person

Workshop with identified enterprises Annually ED Specialist

Awarding doable contracts/orders to Local SMMEs Ongoing ED Specialist

Vendors vetted according to BEE status Ongoing ED Specialist

Potential new SMMEs referred to enrol in

Mentorship Programmes, Training, JV’s Ongoing ED Specialist

Graduates from the Mentorship/Training

Programme are referred to local mines for tender

opportunities

Ongoing ED Specialist

57

3.24 Measures to address Housing, Living Conditions and Nutrition

3.24.1 Overview

The mining industry is facing enormous challenges to reverse the widely acknowledged

historical problem of housing and to provide reasonable and affordable accommodation

to all employees.

3.24.2 Housing Plan

Lwala’s housing strategy might be considered to provide employees with a housing

allowance which will give the employee the opportunity to reside in formal housing

structures of an acceptable standard in line with the relevant legislation in South Africa.

The details of the Housing Allowance Scheme, should it be the preferred option.

3.24.3 Action Plan

Table 33: Housing and living conditions - Commitments, activities and timeframes


Housing

Determine accurate housing requirement during Feasibility Study

Year 1

Use the current Eastern Chrome Mines housing strategy, policy and plan in line with the requirements of the MPRDA and the Mining Charter

Consult with internal stakeholders

Collaborating with surrounding land owners and mining houses to prevent and control informal settlement on mine owned properties

Update SLP with strategy, plan and commitments

3.24.4 Health care and nutrition

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

have adequate access to a well-balanced diet and meals. It is anticipated that the mine

will not provide food for its employees. However, the mine will consider implementing

regular awareness programmes to inform workers of the benefits of good nutrition,

balanced diets, correct method of food preparation to maximize nutritional benefits of

food, as well as, the use of nutritional diets in the management of HIV/Aids.

58

SECTION 4

PROGRAMME FOR

MANAGING DOWNSCALING

AND RETRENCHMENT:

Regulation 46 (d)

59

4 PROGRAMME FOR MANAGING DOWNSCALING AND RETRENCHMENT

4.1 Establishing a Future Forum

4.1.1 Overview

The establishment of a Future Forum (FF) is required under Regulation 46 (d) (i) of the

MPRDA. A 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 discuss challenges and possible solutions to problems

facing the Mine that may have the potential of leading to possible retrenchments in the

future.

The strategies and the mechanisms for implementing the above objectives will largely be

managed through a Future Forum which was established in 2015 and is governed by a

signed of constitution. Samancor ECM as a business unit has one Future Forum across all

its operations. Quarterly meetings are scheduled wherein the following key mandate for

the Future Forum will be discussed:

(a) Identify and analyse issues, problems, challenges and solutions surrounding job

losses and retrenchment management in good time for mine closure;

(b) Provide a channel of communication between management, employees and their

representatives;

(c) Ensure valuable inputs from the key stakeholders are utilized to develop an

appropriate and, more importantly, acceptable plan of action for production and

employment turnaround strategies as well as the inevitable downscaling period;

(d) To implement this plan of action agreed upon by both the employer and worker

parties; and

(e) To 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.

4.2 Mechanisms to save jobs and avoid a decline in employment

4.2.1 Overview

“Organizations have to retrench workers from time to time for economic reasons and to

remain globally competitive. 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.

60

In the event of potential challenges that face Lwala mine and may lead to downscaling or

retrenchment, Lwala will develop and implement turnaround strategies and mechanisms

to save jobs, prevent unemployment and avoid downscaling. This will be done through:

1. Seeking to prevent retrenchments from taking place, where possible.

2. Utilising the Future Forum to identify strategies to prolong the life of mine or

avoid retrenchments and downscaling.

3. Consulting with the DoL, the DMRE, and surrounding mining companies to assess

any potential opportunities to mitigate the effects of retrenchment or closure.

4. Processes will be followed when prevailing economic conditions cause the profit-

to-revenue ratio of Lwala to drop below 6% on average for a continuous period

of 12 months:

(a) Consultations – the consultation process in terms of Section 52 (1) of the Act;

(b) Implementing Section 189 of the Labour Relations Act, 1995 – the process to implement Section 189 of the Labour Relations Act, 1995;

(c) Notification to the Minerals and Mining Development Board – the notification process to the Board in terms of Section 52 (1) (a) of the Act; and

(d) Complying with ministerial directive – compliance with the Minister’s directive and confirming how corrective measures will be taken.

4.2.2 Consultation Processes

The consultation process regarding saving jobs, avoiding job losses and a decline in

employment will be managed by the Company in accordance with the provisions of

sections 189 and 189A of the Labour Relations Act as amended.

4.2.2.1 Implementing Section 189 of the Labour Relations Act, 1995 (As Amended)

Any downscaling or retrenchment will be done in accordance with 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. Regarding the Section 189 and 189(A) requirements, Lwala need to enter into an

agreement with unions representing the workforce that specifically addresses the

following:

(a) Prevention of forced retrenchments

(b) Voluntary separations (early retirement and voluntary retrenchment

packages)

(c) Redeployment of employees

61

(d) Company assistance to alleviate the negative effects of retrenchment

include:

(i) Pursuing alternative employment opportunities;

(ii) Financial advice;

(iii) Counselling services;

(iv) Provision of entrepreneurial skills;

(v) Training opportunities including re-skilling; and

(vi) Assistance with continuing medical care.

(e) Recall of retrenched employees, if required by the Company.

4.2.3 Notification to Government Authorities

As planning for the Social Plan and its associated job loss and retrenchment management

programmes commences, the DoL and the DMRE (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 Future Forum 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 adhered to

in order to meet the corrective measures as stipulated by the Board.

4.2.4 Strategic Plans for Providing Job Security

Lwala’s strategy for providing job security is as follows:

(a) Ensuring that the business remains viable by keeping the cost structure as low

and competitive as possible.

(b) Ensuring a productive workforce through training and motivation.

(c) Making continuing adjustments to production methods to remain competitive.

(d) Seeking ways of growing and extending the business to ensure enhanced future

sustainability.

4.3 Mechanisms to provide alternative solutions and procedures for creating job security

where job losses cannot be avoided

4.3.1 Overview

If it becomes evident, and after considering all other alternatives for prolonging the life

of the mine, that downscaling and retrenchment is inevitable, an appropriate

62

retrenchment proposal will be formulated in consultation with the relevant parties and

finalised 4 months before this eventuality, where appropriate, and except during the

event of unforeseen circumstances coming to fore.

This phase will be implemented in partnership with the DoL and the representative

unions. Here, affected employees will be helped to maximise their chances of re-

employment. During this phase, Lwala will regularly communicate with the FF to direct

the retrenchment process and the establishment of a Job Advice Centre, which will

provide counselling and support to employees in locating alternative employment e.g.:

through the formulating of employee CVs, interaction mechanisms with potential

employers, interview strategies etc.

Names of employees whose positions become redundant (the “affected employees”)

will, as from the date of redundancy, be placed on the Human Resources database for

twelve (12) months. 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 that the Company may take include, amongst others:

(a) Assistance, prior to retrenchment date, with retraining, portable skills training

and other courses to enhance further employment practices.

(b) Assistance in accessing available and suitable jobs with other local mines or

companies.

(c) Informing neighbouring mines of the retrenchment process and ascertaining any

job vacancies in existence.

(d) Assistance with accessing outplacement and/or career transition counselling from

relevant consultancies or job advice centres in the community.

(e) Assistance with completing job application and other relevant forms.

(f) Financial planning advice as well as advice and support in accessing

pension/provident fund pay-outs and UIF claims or other state assistance.

(g) 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

4.4 Mechanisms to ameliorate the social and economic impact on individuals, regions and

economies where retrenchment or closure of the mine is certain

4.4.1 Overview

A Social Closure Plan will be formulated two (2) years before planned closure, and will

consist of the following:

(a) Undertaking a Socio-economic Baseline Survey to determine the social dynamics

between Lwala and the affected regions, the workforce and the affected local

municipalities;

(b) Predicting the likely socio-economic impact on employee households,

communities and the region;

(c) Identifying critical issues affecting the ongoing sustainability of employees and

communities during closure, by means of a detailed consultation process;

(d) Identification of alternative livelihood and socio-economic development

opportunities and projects, which may become sustainable over the long term;

(e) Mitigating and managing the adverse impacts of closure; and

(f) Providing alternative livelihood options.

Lwala will make every effort to ameliorate the social and economic impact on its

employees where retrenchment and closure of the Mine are certain. Should downscaling

and retrenchment take place, Lwala will assist affected employees in finding alternative

employment or livelihood opportunities. This will be done where employees cannot be

integrated or redeployed to any of the other mining operations, and where they are not

of retirement age.

The primary mechanism that will be employed to promote opportunities for alternative

livelihoods and employment in other sectors of the economy will be to implement the

Company’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.

Table 34: Financial Provision for Retrenchments

2018 2019 2020 2021 2022

R1,106,250.00 R1,183,687.50 R1,266,545.63 R1,355,203.82 R1,450,068.09

64

The financial provision reflected in Table 35 above is based on the previous retrenchment

agreement with organised labour. An amount of R7 500.00 per affected employee will be set

aside as skills grant which will include employees that attended portable skills training. This

amount will be subjected to annual CPI escalation (estimated at 7%). The total provision will be

informed by the number of employees that will be affected during possible retrenchments and

the specific mine/operation that will most likely be affected including employees working at

Shared services. Cost for retrenchment packages are excluded as it will be informed by a

retrenchment agreement.

65

SECTION 5

66

5. FINANCIAL PROVISION FOR IMPLEMENTING THE SLP

Section 23(1) (e) of the MPRDA state that “The Minister must grant a mining right if the applicant

has provided financially and otherwise for the prescribed social and labour plan.”

Lwala has made financial provision for each component of the SLP as required.

Error! Reference source not found.3 below presents a summary of the financial commitment by t

he Company to each element of the SLP for a five (5) year period.

Table 35: Breakdown of the SLP financial provision

Category

Budget

Total 2018 2019 2020 2021 2022

Human Resources Development R6 483 627 R6 713 001 R5 995 258 R5 425 407 R5 173 969 R29 791 262

Local Economic Development R500 000 R7 750 000 R7 750 000 R0.00 R16 000 000

Downscaling & Retrenchment R1 106 250 R1 183 687 R 1 266 545 R1 355 203 R1 450 068 R6 361 753

Enterprise Development R 1 267 060 R 1 393 766 R 1 533 143 R 1 686 457 R 1 855 103 R 7 735 529

Total R9 356 937 R17 040 454 R16 544 946 R8 467 067 R8 479 140 R59 888 544

67

SECTION 6

UNDERTAKING

Regulation 46(e)

68

6. UNDERTAKING

I __________________________________________________ the undersigned and duly authorised

thereto by Samancor Chrome Ltd undertake to adhere to the information, requirements, commitments,

and conditions as set out in the Lwala Social and Labour Plan.

Signed at ________________________ on this ________ day of _______ 2020

Signature of responsible person _________________________________________

Designation ________________________________________

69

Appendix I: Career Progression Paths at Samancor ECM

Min 6 Years relevant Post-Qualification

Experience

2 Years Managerial Experience

Degree / Diploma in Engineering

GCC Electrical or Mechanical

Legal Appontment in terms of MHS Act

Min 7 Years Management Experience

of which 5 Years should be in Mining

Project Management Experience

Engineering Degree/Technicon

Diploma


ENGINEERING

MANAGER

ENGINEERING- CAREER PATH

MULTI TASK

MAINTENANCE

SERVICEMAN

APPRENTICEMin 7 Years relevant Production

Experience

Grade 10/N2 Maths & Science

Level 2 Artisan Aide Learnership

Certificate of Fitness

Competent B Certificate

Vaild Drivers License

SINGLE SKILLED

APPRENTICE

MATERIAL

LOGISTICS

MAINTENANCE

SUPERVISOR

FOREMAN

MAINTENANCE

SPECIALIST

Min 6 Years relevant Post-Qualification

Experience

Degree / Diploma in Engineering


Min 5 Years Experience with a

Qualification in Engineering or Mining

2 Years Supervisory Experience

Grade 12/N3 Numeracy & Literacy

5 Years Experience with relevant

Engineering Qualification

Valid Drivers License

Education Profile and

Min Role RequirementsLegal Requirements

MAINTENANCE

SUPERINTENDENT

Min 5 Years relevant Production

Experience


Operative Training




MULTI SKILLED

ARTISAN

Min 3 Years Production Experience as

an Artisan



Experience

Basic Business Understanding, Safety

& Health, Mining Knowledge.

Various Certified Unit Std Skills


Operative Training




Grade 12/N3

Certified Competent as Artisan for

more than 1 Disscipline


ARTISAN

Min 3 Years Production Experience as

an Artisan


Grade 12/N3 + Trade Certificate

NQF Level 3 Learnership



Generic Engineering Skills







ENGINEERING

ATTENDANT


Experience




ENGINEERING

OPERATOR

ATTENDANT


Experience

ENGINEERING

OPERATOR

ATTENDANT


Experience

AA 4

LEVEL 1B 1

LEVEL 1B 2

LEVEL 2B 3

LEVEL 3B 4

LEVEL 4C I

LEVEL 5C 2

LEVEL 6C 3

C UPPERC 5

D LOWERD 2

D UPPERD 4

E LOWERE 1

70

STOCK BUYER Entry Level - No Experience Required

Studying towards a relevant

Degree or Technicon Diploma

Studying towards a relevant


COMMERCIAL

PRACTITIONERMin 3 Years Relevant Experience

C 1


PROCUREMENT - CAREER PATH

COMMERCIAL

SUPERINTENDENTMin 4 Years Relevant Experience Degree or Technicon Diploma

COMMERCIAL

SPECIALISTMin 4 Years Relevant Experience

FINANCE

MANAGERMin 4 Years Relevant Experience Degree or Technicon DiplomaD UPPER

D UPPER

D LOWER

COMMERCIAL

PRACTITIONER

D 3

D 3

D 1

C 5

C 4

Education Profile and Minimum

Role RequirementsLegal Requirements

C UPPER

LEVEL 4

LEVEL 6

Min 4 Years Relevant ExperienceStudying towards a relevant


HUMAN RESOURCES - CAREER PATH

HUMAN RESOURCE

MANAGER5 Years Managerial Experience Degree or Technicon Diploma



E LOWERE 1

HR

SUPERINTENDENT

Min 5 Years Experience

2 Years Managerial ExperienceDegree or Technicon Diploma

HR SPECIALISTMin 5 Years Experience


HR ADMINISTRATOR Min 1 Year Experience

CRUSH CLERK Min 1 Year Experience

LEVEL 3 Grade 12

Grade 12

Grade 12

HR PRACTITIONERMin 5 Years Experience

2 Years Supervisory ExperienceDegree or Technicon Diploma

HR CO-ORDINATOR Min 2 Years Experience

LEVEL 3B6

D UPPER

D LOWER

D 4

D 2

C 5

C 3

C1

C UPPER

LEVEL 6

71

SHEQ

MANAGER



SHEQ - CAREER PATH


Min Role Requirements

Legal Requirements /

Qualifications

E 1 E LOWER

SHEQ

SUPERINTENDENT




ISO 9001 ; 14001; 18001 Experience

VENTILATION,

SHEQ,

ENVIRONMENT

& CONTRACTOR

SPECIALIST

Min 4 Years Experience in Safety

Mining Experience Advantageous


Cert. in Mine Environmental Control

ISO 14001,9001 & OHSAS 18001

Implementation / Experience,

COMSOC 1, 2 & 3 - Recommended,

Cert. in Risk Management

VENTILATION,

SHEQ,

ENVIRONMENT

& CONTRACTOR

SPECIALIST

Min 5 Years Production Experience


Cert. in Mine Environmental Control

ISO 14001,9001 & OHSAS 18001

Implementation / Experience,

COMSOC 1, 2 & 3 - Recommended,

Cert. in Risk Management

VENT ASSISTANT

SHEQ PRACT



Intermediate Cert. in Mine

Environmental Control

COMSOC 1, 2 & 3 - or similar Safety

Certification

FULL-TIME

H & S REP

SHEQ ADMIN



FULL-TIME

H & S REP

SHEQ DATA

CAPTURER


Grade 12/N3 with Maths

Safety Representative Certificate

1 Year Technical Experience

Computer Experience Essential & SAP

VENT ASSISTANT

SHEQ PRACT



Intermediate Cert. in Mine

Environmental Control

COMSOC 1, 2 & 3 - or similar Safety

Certification

Grade 12/N3 with Maths

Safety Representative Certificate

1 Year Technical Experience

Computer Experience Essential & SAP

D 3

D 2

D 1

D UPPER

D LOWER

D LOWER

C 1 LEVEL 3

C 5 C UPPER

C 4 LEVEL 4

C 2 LEVEL 4

72



METALLURGICAL

SUPERINTENDENT


2 Years Managerial Experience Degree or Technicon Diploma

METALLURGICAL

MANAGER

METALLURGY - CAREER PATH

Grade 12 / N3 Maths & Science


Drivers License

LOGISTICS LOCO

DRIVER



LOGISTICS

ADMINISTRATOR



Drivers License

MET SPECIALIST

LOGISTICS

SPECIALIST



B.Sc Degree or Technicon Diploma

HIGHER DIPLOMA NQF 6

METALLURGICAL

PRACTITIONER


1 Year Supervisory Experience Degree or Technicon Diploma


2 Years Supervisory ExperienceDegree or Technicon Diploma

Studying B.Tech or B.Ing Degree

SHIFT

SUPERVISORMin 5 Years Production Experience



Drivers License



Drivers License



Drivers License

GRADUATE IN

TRAININGStepping Stone for Granduates

MET OPERATOR

WEIGH BRIDGE

CLERK


LNR PLANT

OPERATOR

SAMPLER ATTEND

OPERATOR ASSIST

Entry Level - No Experience Required

E 1 E LOWER

D 3 D UPPER

D 1

C 5

D LOWER

C UPPER

LEVEL 4C 3

B 2 LEVEL 1

A 4 A LEVEL

C 1

B 4

LEVEL 4

LEVEL 3

B 3 LEVEL 2

74

D 4 D UPPER

D 1 D LOWER

C 5 C UPPER

C 3 LEVEL 6

C 2 LEVEL 5

B 3 LEVEL 2

B 1 LEVEL 1

A 4 A

MINE GEOLOGY CERTIFICATE OF

COMPETENCE

NHD MINERAL RESOURCE MANAGEMENT

GEOLOGIST

AT LEAST 5 YEARS EXPERIENCE

PRODUCTION

2 YEARS SUPERVISORY EXPERIENCE

GRADE 10 / N1 MATHS & SCIENCE

ELEMENTRY SAMPLING

CERTIFICATE OF FITNESS

ATTENDANT SAMPLINGAT LEAST 3 YEARS RELEVANT EXPERIENCE

PRODUCTION

GRADE 10 / N1 MATHS



ELEMENTRY SAMPLING


MRM GEOLOGY - CAREER PATH

CHIEF GEOLOGISTAT LEAST 6 YEARS EXPERIENCE

2 YEARS MANAGERIAL EXPERIENCE

GRADUATE GEOLOGIST

Education Profile and Minimum Role

RequirementsLegal Requirements

MINERAL RESOURCE

SPECIALIST -

SECT GEOLOGIST


PRODUCTION


MINE GEOLOGY CERTIFICATE

OF COMPETENCY

SAMPLING

ADMINASTRATOR

AT LEAST 5 YEARS RELEVANT EXPERIENCE

PRODUCTION


GEO STATS BSC TECH GEOLOGY


COMPETENT PERSON B

DRIVERS LICENSE


PRODUCTION


SAMPLER

GEOLOGIST ASSISTANT

AT LEAST 3 YEARS RELEVANT EXPERIENCE

PRODUCTION

GRADE 10 / N1 MATHS TECHNICON

COMMINICATION IN ENGLISH

COMPETENT PERSON B


SAMPLERAT LEAST 4 YEARS RELEVANT EXPERIENCE

PRODUCTION

GRADE 10 / N1 MATHS TECHNICON

COMMINICATION IN ENGLISH

COMPETENT PERSON B


75


Competent Person B



Competent Person B



Competent Person B


SURVEY

ASSISTANTMin 3 Years Production Experience

ATTENDANT

SAMPLINGMin 3 Years Production Experience

SERVICE SURVEY

ASSISTANTMin 3 Years Production Experience

SURVEY TEAM

LEADERMin 3 Years Production Experience


Elementary Survey & Sampling

LEARNER

SURVEYOR

SNR SURVEYOR

ADVANCE SURVEY




2 Years Supervisory ExperienceJUNIOR SURVEYOR

SURVEYORMin 5 Years Production Experience




Elementary Survey & Sampling



Basic Survey & Sampling



Basic Survey & Sampling



Competent Person B


Mine Survey Cert of Competence

NH Dipl Mineral Resource Management

Nat Diploma Mine Surveying

Managerial Skills

SNR SURVEYORMin 5 Years Production Experience




Advanced Survey & Sampling

MRM - SURVEY - CAREER PATH



Mine Survey Cert of Competence

NH Dipl Mineral Resource Management


Managerial Skills

CHIEF SURVEYORMin 6 Years Production Experience


ASSISTANT

CHIEF SURVEYOR



SURFACE

SURVEYOR





Advanced Survey & Sampling

C 3

D UPPER

D UPPER

D LOWER

C UPPER

C UPPER

LEVEL 6

D 4

D 3

D 1

C 5

C 4

C 2 LEVEL 5

C 1

B 4

B 3

B 1

A 4

LEVEL 4

LEVEL 3

LEVEL 2

LEVEL 1

A

76

Appendix II: Skills Development Facilitator Appointment Letter

77

Appendix III: Proof of submission of workplace skills Plan

78

Appendix IV: Skills Training programme List

Skills Training Programme Category

SAP: Basic

SAP: HR Time Managers Workplace

SAP: HR Organisational Management

SAP: HR Reporting

SAP: HR Training & Events

SAP: HR Disciplinary (IT0743)

SAP: HR LSMW

SAP: HR Personnel Administration (PA)

SAP: MM Requisitioner (PR)

SAP: MM Store Reservation

SAP MM Buyer Training

SAP: PM Basic Planner

SAP: PM Artisan

SAP: PM Supervisor Training

SAP: PM Advance Planner

SAP: Workflow for Managers

SAP: Workflow Training

Integrated Management Systems Training (IMS)

Dover Assessment

Skills Programme: Blasting Assistant

Skills Programme: Competent A

Skills Programme: Competent B

Skills Programme: Health and Safety Rep Training

Skills Programme: Rock Drill Operator (RDO)

Skills Programme: Trackless Mobile Machine

Skills Programme: Mineral Processing - Dense Medium Separation

Skills Programme: Mineral Processing - Ore Reception

Skills Programme: Mineral Processing - Water Reticulation

Skills Programme: Mineral Processing - Crushing

Skills Programme: Mineral Processing - Screening & Crushing

Skills Programme: Mineral Processing - Thickening of a Slurry

Skills Programme: Mineral Processing - Milling of Material

79

Skills Training Programme

License: ECM Lifting Equipment

License: Basic Rigging - LOPT

License: Advanced Rigging - LOPT

License: Electric Hoist (LOPT)

License: Overhead Crane Code C30/31 LOPT

License: ECM Chairlift Operator

License: ECM Conveyor Belt Operator

License: ECM GDI

License: Diamond Drill Rig

License: ECM Drill Rig (MDR) Operator

License: Secondary Rock Breaker Operator

License: Tip Attendant

License: Underground Ambulance

License: Load Haul Dumper - LHD GHH SLP5

License: Load Haul Dumper - LHD GHH SLP5.1

License: Load Haul Dumper - LHD GHH SLP6



License: Load Haul Dumper - LHD AARD 5.5

License: Load Haul Dumper - LHD 115

License: Load Haul Dumper - LHD 777

License: Multi-Purpose Vehicle (Utility Vehicle)

License: Mechanical Loader - Boesman

License: Loco - Battery Operated

License: Single Drum Hoist

License: ECM LDV Underground

License: Light Duty Vehicle (LDV Surface)

License: Double Cab

License: Minibus

License: Heavy Duty Truck (HIAB)

License: Counter Balance lift Truck - LOPT

License: Maubra

License: Skidsteer Loader LOPT

License: Telescopic Matrial Handler (Manitou) - LOPT

License: Bobcat

License: TLB Operator

80

Skills Training Programme Category

Training: Blasting Certificate (Metaliferous Mines)

Training: Shift Boss Course

Training: Maintenance Planning Course

Training: Working at Heights

Training: Awareness - Fire Fighting

Training: Advanced Fire Fighting

First Aid Level 1

Training: ISO 14001 : 2015 Awareness Training

Training: ISO 45001 : 2018 Awareness Training

Training: ISO 9001 : 2015 Awareness training

Training: Peer Educator

Training: Mentorship

Training: IR - Industrial Relations

Training: Assessor \ Moderator

Training: COMSOC 1

Training: COMSOC 2

Training: COMSOC 3

Training: TARP Simulation

Training: Hazard Awareness

Training: GDI Sentinel

Training: SCAS 2 Safe Lite (PDS Training)

Training: Secondary Rock Breaker Operator

Training: Load Haul Dumper (LHD 115)

Training: Load Haul Dumper (LHD 777)

Training: Load Haul Dumper LHD GHH SLP5

Training: Load Haul Dumper LHD GHH SLP5.1

Training: Load Haul Dumper LHD GHH SLP6



Training: Mine Load Haul Dumper (LHD AARD 5.5)

Training: Mine Drill Rig Operator

Training: MPV/UV Operator

Training: Conveyor Belt Operator

Training: Control Room Operator

Training: Supervisory - Knowing Yourself - insert training in front

Training: Supervisory - Managing Yourself and Team

Training: Supervisory - Management Principles

Training: Supervisory - Competence Coaching

Training: Supervisory - Time Management

Training: Supervisory - Team Leadership and Performance Management

81

Appendix V: Form T

Vendor Name BBBEE Status Mining Goods Services Total Spend

ZIZWE OPEN CAST MINING (PTY) LTD

Black company

R91,448,969.26 R91,448,969.26

SSG SECURITY SOLUTIONS (PTY) LTD

Black Empowered Company

R13,613,848.61 R13,613,848.61

HILLARY CONSTRUCTION (PTY) LTD

Black company

R10,579,805.98 R10,579,805.98

RASUPI PLANT HIRE AND PROJECTS (PTY

Black Women Owned

R2,200,645.58 R2,200,645.58

AC ELECTROMECH MAINTENANCE SERVICES

Black Women Owned

R450,000.00 R1,383,811.37 R1,833,811.37

MABOTHA INVESTMENTS (PTY) LTD

Black company

R1,408,080.00 R1,408,080.00

SEBA WOODS (PTY) LTD Black company R857,334.74 R857,334.74

BABEREKI ADMINISTRATION AND PROJECT

Black company

R584,983.52 R584,983.52

KEEWAVE TRADING 334 (PTY) LTD

Black company

R528,900.94 R528,900.94

VEXOWAY (PTY) LTD Black company R488,248.00 R488,248.00

ACTOM ELECTRICAL PRODUCTS Black Women Owned

R475,875.00

R475,875.00

J P R FINANCIAL SERVICES CC Black company R450,000.00 R450,000.00

GENESIS AFRICA PROJECTS (PTY) LTD

Black company

R297,967.75 R297,967.75

VUTHI SEGWEKA GENERAL TRANSPORT CC

Black company

R195,624.24 R195,624.24

NOMCEBO CONSULTING ENTERPRISE CC

Black Women Owned

R31,204.61 R149,122.02 R180,326.63

4 U COMPUTERS & STATIONERS (PTY) LT

Black Women Owned

R179,137.70

R179,137.70

VHUFA HASHU HERITAGE CONSULTANTS

Black company

R161,960.00 R161,960.00

HP SOUTH AFRICA (PTY) LTD Black Women Owned

R155,527.02

R155,527.02

KOPANANG ENGINEERING (PTY) LTD

Black company

R136,147.38 R136,147.38

SUGAR CREEK TRADING 363 (PTY) LTD

Black company

R128,605.00 R128,605.00

NORTHLITE ELECTRICAL Black company R128,253.39 R128,253.39

LIFE OCCUPATIONAL HEALTH (PTY) LTD

Black company

R96,003.84 R96,003.84

MOTHO-KWENA PROJECTS MANAGEMENT

Black Women Owned

R91,812.51 R91,812.51

DIATLA CLEANING SERVICES CC Black company R83,986.66 R83,986.66

SILVER OAKS TRADING 112 CC Black Women Owned

R76,927.00 R76,927.00

RITCHIE CRANE HIRE (PTY) LTD Black company R71,297.34 R71,297.34

82

Vendor Name BBBEE Status Mining Goods Services Total Spend

SANITECH Black company R67,714.92 R67,714.92

G4S SECURE SOLUTIONS (SA) (PTY) LTD

Black Women Owned

R67,527.82 R67,527.82

AQUATICO SCIENTIFIC (PTY) LTD Black Women Owned

R51,848.00 R51,848.00

NTSADI ENGINEERING AND MINING CC

Black company

R49,125.00 R49,125.00

KLM HIGH-GIENE SOLUTIONS (PTY) LTD

Black company

R48,825.00 R48,825.00

ELECTRO DIESEL GROUP (PTY)LTD

Black company R40,306.10 R7,870.00 R48,176.10

NOMAKANJANE MINING SUPPLIES AND SER


KAIRONGWE (PTY) LTD Black Women Owned

R31,150.00 R31,150.00

ZZDELETE SILVER OAKS TRADING 112 CC

Black Women Owned

R27,035.04 R27,035.04

AP ENGINEERING AND CONSTRUCTION CC

Black company

R25,509.60 R25,509.60

NTJADI ENGINEERING AND MINING (PTY)

Black company

R25,210.00 R25,210.00

ISUS ELECTRONICS CC T/A COOL-TEC CC


JOXICOM (PTY) LTD Black Women Owned

R20,300.00 R20,300.00

AQS LIQUID TRANSFER (PTY) LTD

Black company R19,009.00

R19,009.00

CROSS STITCH TRADING CC Black company R17,624.48 R17,624.48

AMS HADEN INSTRUMENT & MINING

Black company

R16,276.00 R16,276.00

FIRST TECHNOLOGY (PTY) LTD Black Women Owned

R10,062.80

R10,062.80

FORMS MEDIA INDEPENDENT AFRICA (PTY

Black Women Owned

R8,810.00

R8,810.00

ENVIRONMENTAL ASSURANCE (PTY) LTD

Black Women Owned

R8,554.00 R8,554.00

MAN-DIRK (PTY) LTD Black company R5,547.40 R5,547.40

HOJI TRADING & PROJECTS CC Black company R4,750.00 R4,750.00

THUPA ELECTRICAL (PTY) LTD Black company R4,075.50 R4,075.50

NORTON & SCALLAN MINING SUPPLIES

Black company R825.60

R825.60

Total Spend R1,534,559.42 R125,539,948.87 R127,074,508.29

83

Appendix VI: Stakeholder Engagement Record

Reason for Meeting

Stakeholder groups present

Date of attendance

Outcome of meeting

Name & Position of

Attendee from Mine

Minutes of Meeting available

SLP Engagement kick-off meeting

Ntwampe Tribal Authority

Mashabela Tribal Authority

Ward Councillor

Ward Committees Reps

Engagement Structures

14 August 2019

Confirmation of engagement representatives and SLP concept presentation.

L Mphumela

T Thobejane Yes

Projects identification meeting



Ward Councillor



29 August 2019

A list of projects identified during community meetings were presented

L Mphumela

T Thobejane Yes

Confirmation of projects identified

Community mass meetings

14 September 2019

Water project identified as a key priority for all the communities.

Engagement structures and ward councillors

Roll-call of community members submitted

Projects prioritization meeting



Ward Councillor



17 September 2019

Water project identified as a key priority for all the communities.

L Mphumela

T Thobejane Yes

84

Reason for Meeting

Stakeholder groups present

Date of attendance

Outcome of meeting

Name & Position of

Attendee from Mine

Minutes of Meeting available

Consultative meeting with the District municipality

Samancor Chrome

District Municipality – Mayor’s Office

09 October 2019

Proposal for MoU on water projects

L Mphumela

M Motimele

T Thobejane

Yes

Consultative meeting with the District municipality

Samancor Chrome

District Municipality

Department of Water Affairs

23 October 2019

A list of bulk water supply interventions shared with Samancor

L Mphumela

M Motimele

T Thobejane

Yes

85

Appendix VII: Future Forum Constitution (Signed)

lwala mine

Documents