Realising Africa’s

full potential

Mining Indaba

Cape Town

7 February 2017

“Africa’s mining sector is in crisis. At its root is a

lack of trust between mining companies,

governments and indeed, the very nations they

lead. A failure to tackle the crisis will result

in serious, adverse implications for both economic

growth and employment prospects at the moment

when the continent's needs are rapidly increasing.” HE Olusegun Obasanjo, Chairman: The Brenthurst Foundation and former President

of the Federal Republic of Nigeria introducing the Zambezi Protocol

Africa is host to

• 95% of the world’s known

platinum reserves

• 90% of chromite

• 80% of phosphates

• 60% of gem diamond reserves

• more than 50% of cobalt

• 28% of vanadium

• 25% of manganese

• 23% of titanium

• 20% of known

gold reserves

There is a need for a fresh start in stakeholder relationships given clear common interest. The vicious cycle needs to be broken, trust needs to be re-established, a shared narrative developed, and a fair deal agreed. To start this process, which will not be easy, new avenues for dialogue need to be found, and common interests identified.

5

Aligning stakeholders

for a successful

future

Stakeholder responsibilities

“The journey to our

greatness cannot be carried

out by one person alone, or indeed, by one group alone.

It cannot be carried out by

government alone, or the

unions alone, or the industry

by itself. The road to a better

future for all mining’s

stakeholders lies in

collaboration and partnership.”

Chamber President,

Mike Teke

6

Stakeholders

Business

Government

UnionsEmployees

Communities

Fraser Institute - Investment attractiveness

7Under-performing many African jurisdictions

Source: Fraser survey 2015

Business

• Need to commit to

transparent engagement with

other stakeholders

• Stakeholder engagement

forums must be inclusive in

order to secure a sustainable

future

• Adhere to exemplary

standards of governance and

environmental and social

responsibility

• Develop local communities

for a sustainable future post

cessation of mining

• Must ensure that value flows

equitably to ALL stakeholders

• Commit to invest in growth

and sustainability in the

appropriate economic

environment

33

Stakeholders

Business

Government

UnionsEmployees

Communities

The regulatory framework impacts negatively ...

9Only 4 other African countries with less favourable regulatory framework

Source: Fraser survey 2015

Government

• Unambiguous, clear policy

and an supportive

regulatory framework

• Partner with private sector

to promote investment and

growth

• Administrative processes

must be fair and efficient

and adhere to legislation

• Providing incentives to

investment and a fair

taxation regime

26

Stakeholders

Business

Government

UnionsEmployees

Communities

... and labour militancy is a greater concern …

11Lowest ranked in Africa

Source: Fraser survey 2015

Organised labour

• Must focus on promoting

members interests in the

context of fostering the

economic stability of the

industry

• Engage proactively taking

consideration of

sustainability of operations

• Avoid damaging industrial

action

• Recognise that a

prosperous and growing

industry benefits all

stakeholders and

participate in and support

business decisions which

ensure sustainability

28

Stakeholders

Business

Government

UnionsEmployees

Communities

Employees

• Recognise their role as key

stakeholders and

influencers in the business

• Recognise role business

plays in achieving personal

requirements and

ambitions

• Alignment with business

will enable sharing of

value in upcycles

• Need to contribute to

industry survival through

downcycles

29

Stakeholders

Business

Government

UnionsEmployees

Communities

... and community sentiment is a major issue

1419th from lowest in the global sample

Source: Fraser survey 2015

Community organisations

• Must engage constructively

and represent needs of

broader constituencies

• Need to understand

implications of economic

cycles on industry

• Need to play supportive

role to ensure sustainability

and ongoing delivery of

benefits

31

Stakeholders

Business

Government

UnionsEmployees

Communities

Mineral potential compromised

16South Africa’s mineral heritage at risk of being sterilised

Source: Fraser survey 2015

A best practice environment is one that contains a world class regulatory environment, highly competitive

taxation, no political risk or uncertainty, and a fully stable mining regime.

Major scope for improvement

17An industry requiring re-invention and modernisation

Source: Fraser survey 2015

Leading the way

to a modern

mining industry

A modern mining industry

1. Optimally extracts and beneficiates the country’s natural resources

2. Causing no harm to people or the planet

3. Benefits the local community and the national economy

4. Procures locally

5. Is a preferred employer of well skilled people

6. Creates appropriate risk-adjusted returns for investors

7. Regulations, taxation and incentives are consistent, transparent and recognise

mining as a long-term driver of economic growth

19Able to deliver benefits to all stakeholders

Source: Joburg Indaba October 2015

Our core purpose

SIBANYE’S

MINING

IMPROVES LIVES

11 9

SIBANYE’S MINING IMPROVES LIVES

Our vision

SUPERIOR VALUE CREATION

FOR ALL OUR STAKEHOLDERS

Through mining our mult i -commodity

resources in a safe and healthy

environment

21

Superior value for all stakeholders

• Delivery on all strategic

imperatives is critical to long

term success

• Safety, volume, cost, grade –

our operational deliverables

that underpin our business

• Strong cashflow supports the

dividend to shareholders and

underpins our growth

• Growth (organic and

acquisitive) ensures long term

delivery of sustainable rewards

to all stakeholders

A holistic, integrated strategy and operating model 11

Creating value to the country and continent

• Championing and driving the principles which define a modern mining industry

• Adopting a firm but fair approach to stakeholder engagement – redefining the role of

the mining industry

• Ensure community development which can be sustain after mining activities have

ceased

• Progress towards a Social and Economic compact

– sharing of profits with employees and protecting the company during economic

downturns

• Creating a safer and more productive work environment through the advancement

of technology and R&D

• Enhancing efforts which supports best environmental practices

• Sharing profits to shareholders in the way of dividends to ensure superior return on

investment

• Driving policy change in the industry through active participation

of industry bodies such as the Chamber of Mines

23

Conclusion

Conclusion

• The African mining industry needs to modernise if it is to manage all the

challenges facing it

• Industry leadership is required given the historical mistrust between key

stakeholders

• Alignment of all stakeholders towards a common vision is necessary if we are to

secure the future of the industry

• Sibanye has embraced and is well positioned for modernisation and delivery of

superior value for ALL stakeholders

25Business needs to take a leading role in modernisation

Questions