the ripple effect of the black mountain complex

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FACT SHEET / 2020 IN SUMMARY VZI’s activities in the Northern Cape have socio-economic ripple effects that extend beyond the mine complex. THE RIPPLE EFFECT OF THE BLACK MOUNTAIN COMPLEX VARIOUS INITIATIVES UNDERWAY TO PROTECT THE SUCCULENT KAROO BIOME BMC currently employs 2,863 people More than R80 million spent on various training initiatives BMC will contribute R4.5 billion to South Africa’s GDP More than R77 million spent on corporate social responsibility Vedanta Zinc International RIPPLE EFFECT Black Mountain Mining Complex C r e a t i n g e m p l o y m e n t T r a n s f o r m i n g p e o p l e a n d c o m m u n i t i e s S t i m u l a t i n g e c o n o m i c d e v e l o p m e n t l o c a l l y a n d n a t i o n a l l y S u p p o r t i n g t h e s o c i o - e c o n o m i c n e e d s o f c o mm u n i t i e s P r e s e r v i n g t h e e n vi ro n m e n t Gamsberg plant and mountain

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FACT SHEET / 2020

I N S U M M A RYVZI’s activities in the Northern Cape have socio-economic ripple effects that extend beyond the mine complex.

THE RIPPLE EFFECT OF THE BLACK MOUNTAIN COMPLEX

VARIOUS INITIATIVES UNDERWAY TO PROTECT THE SUCCULENT KAROO BIOME

BMC currently employs 2,863 people

More than R80 million spent on various training initiatives

BMC will contribute R4.5 billion to South Africa’s GDP

More than R77 million spent on corporate social responsibility

Vedanta Zinc International

RIPPLEEFFECT

Black Mountain Mining Complex

Creating employment

Transforming people and com

munit

ies

Stimulating economic development locally

a

nd nat

iona

lly

Supporting the socio-economic needs of comm

unitie

s

Preserving the environment

Gamsberg plant and mountain

02

Capex Spend for BMC 2011-2020

Capex spend

FY2011-

2012

FY2012-

2013

FY2013-

2014

FY2014-

2015

FT2015-

2016

FY2016-

2017

FY2017-

2018

FY2018-

2019

FY2019-2020

(Forecast)

BMM R117.37m R100.5m R109.14m R86.86m R67.26 R144.39m R215.39m R90.94m R313.034m

Gamsberg – R50.69m R80.87 R45.32m R224.90m R723.80m R2,265m R2,759m R1,046m

Total R117.37m R151.19m R190.02m R132.18m R292.16m R868.19m R2,481m R2,850m R1,359m

Introduction

Since 2012, the Northern Cape has experienced the strongest economic growth of any province in South Africa. The latest available statistics indicate that the Northern Cape’s economy grew by 2.8% in 2017, which was well above the country average of just 0.9%. This is certainly impressive and encouraging when viewed in the wider context of South Africa’s struggling economy and widespread sociopolitical challenges.

This strong economic performance has

been primarily driven by a boom in mining

activity across the province. The Northern

Cape, which has the longest history of

commercial mining in South Africa, is rich

in new-tech minerals that are at the heart

of the fourth industrial revolution and

the rapid technological advances driving

it. Zinc, nickel, lead, copper and cobalt

– all key elements in the manufacture

of smartphones, electric vehicles and

renewable systems – are found in

economically viable deposits across

the province.

Vedanta Zinc International (VZI) is proud to

be at the forefront of this mining boom.

The company’s entry into the Northern

Cape mining sector began in 2011 when

it acquired Black Mountain Mining (BMM)

– together with Skorpion Zinc in Namibia

and Lisheen Mine in Ireland – from Anglo

American. Since then, VZI has invested

considerable resources into developing the

Gamsberg Mine, as well as enhancing the

operational performance and potential of

BMM. The combined entity, Gamsberg and

BMM, is known as the Black Mountain

Mining Complex (BMC).

Brief timeline of the Gamsberg zinc project

1972Gamsberg zinc deposit discovered by Okiep Copper Company

1998Anglo American acquired 100% interest in Gamsberg

2011Vedanta acquired Black Mountain and Gamsberg mines from Anglo American

2014Gamsberg feasibility study completed and Phase 1 of project is approved

2018 Gamsberg Phase 2 feasibility started

2019

Gamsberg officially opened by President Cyril Ramaphosa and Vedanta Chairman Anil Agarwal

VZI’s entry into South Africa and its huge capital expenditure commitments is not only significant from the perspective that it is the only substantial investment that has been made in the country’s mining sector in more than a decade, but also because it shows great faith in the longevity of the mineral resources and mining sector more generally.

But VZI’s activity in South Africa represents

far more than the simple influx of capital

into developing and operating a mining

asset. This investment has socio-economic

ripple effects that extend beyond the

boundaries of the mining complex into

the wider municipal and provincial

communities, as well as the provincial

and national fiscus. This narrative serves

to illustrate how the BMC has positively

impacted the people and economy of

the Khâi-Ma Municipality, in which the

operation is situated, and the Northern

Cape and South Africa more broadly.

Black Mountain Mining

03

A total of 2,863 people

(including business

partners) are currently

employed within the

BMC: BMM – 1,692,

Gamsberg – 1,171

More than 80% of

employees are historically

disadvantaged

73% of these employees

are from the Northern

Cape while 61% are

from the local Namakwa

District

It is expected that, during

the entire life of the

operation, some 8,700

jobs will have been created

Creating jobs

Women in mining

VZI is particularly focused on the inclusion

and advancement of women in its

workforce. The (albeit slowly) changing

face of mining presents a growing

number of opportunities for women. The

company always seeks to hire a woman

in a new or vacant position, and failure

to find a suitable female candidate must

be accompanied by a written explanation

from the recruitment lead. We also look

at internal promotions, prioritising women

with potential, often putting those women

into deputy Exco positions and providing

a strong support and mentoring network,

which gives them the opportunity to grow

into those positions.

Currently, 15% of the BMC workforce

are women, a number that is steadily

growing. This is slightly above the

South African industry average, which is

currently at 12%. While this may seem a

small percentage, its significance cannot

be underestimated. In a region that is

highly patriarchal and where employment

prospects for women are limited, BMC

offers significant hope and career

advancement opportunities for women.

With the development and commissioning

of Phase 1 of Gamsberg, VZI is now one

of the largest private sector employers in

the Northern Cape. By the end of 2019,

a total of 2,863 people were employed

directly by VZI in the Northern Cape.

A total of 563 new people were employed

in 2018/2019, specifically on the

Gamsberg operation, 523 of which are

historically disadvantaged persons (HDPs).

In addition, more than 3,000 people were

employed at the construction peak of

Gamsberg.

Uplifting skills in the local community

VZI is committed to sourcing

as many employees from the

Northern Cape, and specifically the

Khâi-Ma Municipality. However,

there is an understanding and

acknowledgment that many of

the community members that

are eligible to work are in need

of skills training and upliftment.

It is for this reason that VZI

has placed education and skills

training at the very heart of its

empowerment and community

partnership initiatives. It has

partnered with the Northern

Cape Regional Technical and

Vocational Education and Training

College (NCR TVET) in Okiep,

part of the Namakwa District

labour-sending area, to deliver

a R8.3 million community skills

training programme to the Khâi-

Ma community. This takes place

through a satellite venue some

130km away from the actual NCR

TVET College, in Pofadder. Classes

are conducted at the Boesmanland

High School in Pofadder and

students are transported in

from the neighbouring towns of

Aggeneys, Witbank, Pella and

Onseepkans. More than

177 students from Khâi-Ma have

enrolled since January 2019,

signing up for courses such as

an engineering bridging course,

early childhood development,

professional cookery, welding,

scaffolding and computer training.

Creating employment

A t t h e m o s t b a s i c l e v e l , B M M a n d G a m s b e r g p r o v i d e s a s i g n i f i c a n t n u m b e r o f j o b s i n a r e g i o n t h a t w o u l d o t h e r w i s e b e d e v o i d o f m a n y w o r k o p p o r t u n i t i e s . W h i l e t h e N o r t h e r n

C a p e i s t h e m o s t s p a r s e l y p o p u l a t e d p r o v i n c e w i t h o n l y 2 . 1 % o f t h e c o u n t r y ’s t o t a l p o p u l a t i o n , i t c u r r e n t l y h a s o n e o f t h e h i g h e s t u n e m p l o y m e n t r a t e s a t 2 5 % .

“A total of 563 new people were employed in 2018/2019, specifically on the Gamsberg operation.”

The people of BMC

04

Lerato Mogola – Geologist

After graduating with her Honours degree in geology at the University of Johannesburg, Lerato started working at VZI’s Black Mountain Mine in July 2014.

Says Lerato: “Joining as a young woman meant I had to be bold, find my voice and still stay true to who I am and my femininity in a male-dominated environment. There is now ample support and opportunities for one to thrive as a woman and that is the reason why I am still in this environment.”

Lindo Makhathini – Management trainee geologist

Lindo is a relatively new member to VZI, having joined the company’s flagship Gamsberg mine, in 2019. Her primary responsibilities include assisting the Grade Control team with data acquisition and collation, database management and data analytics. Her exposure to a variety of fields within the mining industry has not only highlighted the value of safe mining practices in people-centric environments, but also the importance of the fourth industrial revolution in creating opportunities for community empowerment and economic growth in South Africa.

Amelia Cloete – Explosives co-ordinator at BMC

Amelia has worked at BMC for the last 17 years. Since VZI took ownership of the operation, it has afforded Amelia many opportunities for career advancement. With the company’s help, she has completed her blasting ticket and shift boss certificate. She has also become the first woman at BMC to be accredited as a responsible person. Currently, her job entails coordinating and monitoring explosives production, to ensure quality explosives are produced in order to support the drilling and blasting function and meet production targets.

Amelia is currently in the process of obtaining her mine captain certificate.

“VZI is particularly focused on the inclusion and advancement of women in its workforce.”

Vedanta’s women at work

05

Permanent positions held by women in VZI

AFRICAN COLOURED INDIAN WHITE

Top management 0 0 1 0

Senior management (Exco) 0 1 0 1

Middle management 11 14 4 5

Junior management 14 48 4 4

Core and critical skills 2 56 0 3

Total 27 119 9 13

168 women

Living in Aggeneys

Aggeneys was founded in 1976 to service the Black Mountain mine. Situated

approximately 110km northeast of Springbok, the town is an oasis in an

otherwise arid region.

For the town residents, facilities include retail shops, a butchery, a pharmacy,

restaurants and takeaways, a post office, schools, recreational facilities, a police

station and a clinic. Aggeneys has two sports fields that are widely used for a

variety of events, including the annual Aggeneys Festival, schools’ athletics and

sports days, and carols by candlelight. Free Wi-Fi spots give children access to

internet facilities to assist in making their learning easier and accessible, a tool

that is also widely-used by all community members.

With a variety of accommodation and a friendly community, Aggeneys is a

haven in an otherwise arid region and is a town worth visiting.

Provision of housing for staff

With the employment of people

comes the need to develop housing

to accommodate that workforce

within reasonable distance of the

mining complex. In this regard,

VZI is in the midst of a significant

housing development project

within Aggeneys. Two hundred of

a planned 500 houses have already

been developed there and more are

expected to be built in the larger

towns of Springbok and Pofadder.

An increase in the working

population living in these mining

towns is inevitably a catalyst for the

development of infrastructure and

municipal services, the increase in

economic activity, and the attraction

of retail and services to the area.

Such development is making

Aggeneys a much more exiting and

financially buoyant place to live.

Housing at Aggeneys

Infrastructure of Aggeneys town

05

Permanent positions held by women in VZI

AFRICAN COLOURED INDIAN WHITE

Top management 0 0 1 0

Senior management (Exco) 0 1 0 1

Middle management 11 14 4 5

Junior management 14 48 4 4

Core and critical skills 2 56 0 3

Total 27 119 9 13

168 women

Living in Aggeneys

Aggeneys was founded in 1976 to service the Black Mountain mine. Situated

approximately 110km northeast of Springbok, the town is an oasis in an

otherwise arid region.

For the town residents, facilities include retail shops, a butchery, a pharmacy,

restaurants and takeaways, a post office, schools, recreational facilities, a police

station and a clinic. Aggeneys has two sports fields that are widely used for a

variety of events, including the annual Aggeneys Festival, schools’ athletics and

sports days, and carols by candlelight. Free Wi-Fi spots give children access to

internet facilities to assist in making their learning easier and accessible, a tool

that is also widely-used by all community members.

With a variety of accommodation and a friendly community, Aggeneys is a

haven in an otherwise arid region and is a town worth visiting.

Provision of housing for staff

With the employment of people

comes the need to develop housing

to accommodate that workforce

within reasonable distance of the

mining complex. In this regard,

VZI is in the midst of a significant

housing development project

within Aggeneys. Two hundred of

a planned 500 houses have already

been developed there and more are

expected to be built in the larger

towns of Springbok and Pofadder.

An increase in the working

population living in these mining

towns is inevitably a catalyst for the

development of infrastructure and

municipal services, the increase in

economic activity, and the attraction

of retail and services to the area.

Such development is making

Aggeneys a much more exiting and

financially buoyant place to live.

Housing at Aggeneys

Infrastructure of Aggeneys town

05

Permanent positions held by women in VZI

AFRICAN COLOURED INDIAN WHITE

Top management 0 0 1 0

Senior management (Exco) 0 1 0 1

Middle management 11 14 4 5

Junior management 14 48 4 4

Core and critical skills 2 56 0 3

Total 27 119 9 13

168 women

Living in Aggeneys

Aggeneys was founded in 1976 to service the Black Mountain mine. Situated

approximately 110km northeast of Springbok, the town is an oasis in an

otherwise arid region.

For the town residents, facilities include retail shops, a butchery, a pharmacy,

restaurants and takeaways, a post office, schools, recreational facilities, a police

station and a clinic. Aggeneys has two sports fields that are widely used for a

variety of events, including the annual Aggeneys Festival, schools’ athletics and

sports days, and carols by candlelight. Free Wi-Fi spots give children access to

internet facilities to assist in making their learning easier and accessible, a tool

that is also widely-used by all community members.

With a variety of accommodation and a friendly community, Aggeneys is a

haven in an otherwise arid region and is a town worth visiting.

Provision of housing for staff

With the employment of people

comes the need to develop housing

to accommodate that workforce

within reasonable distance of the

mining complex. In this regard,

VZI is in the midst of a significant

housing development project

within Aggeneys. Two hundred of

a planned 500 houses have already

been developed there and more are

expected to be built in the larger

towns of Springbok and Pofadder.

An increase in the working

population living in these mining

towns is inevitably a catalyst for the

development of infrastructure and

municipal services, the increase in

economic activity, and the attraction

of retail and services to the area.

Such development is making

Aggeneys a much more exiting and

financially buoyant place to live.

Housing at Aggeneys

Infrastructure of Aggeneys town

828

06

It is for this reason that VZI has

adopted a holistic approach towards

the empowerment of historically

disadvantaged South African individuals

and communities. The company has

implemented a variety of initiatives,

including mentorship, adult education and

training, career progression and portable

skills training, as well as developmental

and bridging programmes. Since 2014,

VZI has spent more than R80.2 million on

these various training interventions, which

have positively impacted the careers of

hundreds of BMC employees.

Part of this spend has included an

education programme intended to

uplift the people of the local Khâi-Ma

Municipality. Since 2014 this

programme has:

Invested R8 million

into the improvement of education at primary and high schools, as well as early childhood development and child and youth care centres. This has positively impacted 3,000 learners in the local municipality

14 students currently have bursaries at a university

To date, three students have completed four-year university degrees

Transforming people and communities

I n S o u t h A f r i c a , j o b c r e a t i o n i n v o l v e s f a r m o r e t h a n j u s t g i v i n g p e o p l e t h e a b i l i t y t o e a r n a n i n c o m e . G i v e n t h e c o u n t r y ’s u n i q u e s o c i o p o l i t i c a l h i s t o r y, i n w h i c h l a r g e

s e c t i o n s o f t h e p o p u l a t i o n w e r e d i s e m p o w e r e d i n t h e w o r k p l a c e a n d p r o h i b i t e d f r o m m e a n i n g f u l l y a d v a n c i n g t h e i r c a r e e r s , j o b c r e a t i o n i s a l s o a u n i q u e o p p o r t u n i t y t o

a d d r e s s s u c h l e g a c i e s . J o b c r e a t i o n i s i n d e l i b l y l i n k e d w i t h t r a n s f o r m a t i o n .

Sergio studied a BSc in Mining Engineering at the University of the Witwatersrand, graduating in 2017. He has been working at BMC since 2018 and has gained invaluable experience in underground mechanized mining operations. He is currently serving as a graduate mining engineer: backfill.

Vanessa is a maintenance management engineer at BMC, with a BEng (Mechanical) degree from Stellenbosch University. With the assistance of a VZI bursary, she is currently enrolled for a Post-Graduate Diploma in Data Science and Industrial Engineering. Her career aspirations include a progression to section engineer, project engineer and, eventually, mine manager.

With the assistance of a VZI bursary, Henry has just completed a Master of Science degree in Geology (Process Mineralogy) at the University of Stellenbosch. While studying, he has also worked as a member of VZI’s exploration team. This team recently celebrated a major achievement that added 800,000t contained metal to Swartberg Phase 2 and declared the Big Syncline maiden resource of 5.4Mt of contained metal.

Sergio Jones, 25

Vanessa van Kradenburg, 32

Henry Gordon, 28

The communities we touch

Project promoting community development

07

Digitalisation of operations

Looking to the future, VZI

understands that for any mine

to perform optimally and

thrive it will have be operated

and managed digitally. It is

for this reason that VZI is in

the process of implementing

a digitalisation roadmap. This

will see the integration of

operating systems that allow for

data-driven decision-making,

improved efficiencies, lower

risk and ultimately a safer

working environment. The

implementation of this roadmap

will ensure that Gamsberg is

one of Africa’s most digitally-

advanced mining operations.

Achieving this objective will

necessitate the upskilling of its

employees. This is yet another

way the company is transforming

and will continue to transform

the lives of its workforce.

State-of-the-art technology at Gamsberg

08

The Gamsberg mine is the largest new

project in development in the Northern

Cape. The sheer scale of the development

and the amount of capital that is being

invested is stimulating growth in the local

and national economy primarily through

the procurement of good and services.

To give just a brief idea of the scale of

procurement for the development, since

construction of Gamsberg began, 40km

of water pipeline, 300km of electrical

cabling, and 35 000m3 of concrete has

been purchased and transported to site.

Moreover, the projected production and

life-of-mine has the ability to sustainably

contribute to the local and broader

economy over the long-term. It also has

the potential to act as a catalyst to raise

investors’ confidence in South Africa. At a

broad, national level, it is forecast that the

entire BMC operation has the potential to:

Contribute R4.5 billion a year

to South Africa’s GDP, which will

particularly impact SMMEs and

local businesses

Add R1.1 billion in revenue to the national fiscus

Stimulating economic development locally and nationally

W h i l e t h e c r e a t i o n o f j o b s a n d t h e a b i l i t y t o u p l i f t p r e v i o u s l y d i s a d v a n t a g e d p e o p l e a n d c o m m u n i t i e s p r o v i d e s a s i g n i f i c a n t a n d i m m e d i a t e p o s i t i v e r i p p l e e f f e c t , e q u a l l y i m p o r t a n t i s t h e i m p a c t m i n i n g p r o j e c t s h a v e o n s t i m u l a t i n g e c o n o m i c d e v e l o p m e n t . T h i s p o i n t w a s i l l u s t r a t e d b y t h e f a c t t h a t S o u t h A f r i c a ’s P r e s i d e n t C y r i l R a m a p h o s a

h i m s e l f a t t e n d e d t h e c o m m i s s i o n i n g o f P h a s e 1 o f G a m s b e r g i n F e b r u a r y 2 0 1 9 .

Local economic development

While the contribution to the national

economy is imperative, the BMC’s most

beneficial financial impact is undoubtedly

on local suppliers and the economy of

the Northern Cape. To this end, VZI has

employed the services of Phakamani

Impact Capital to manage an ‘Enterprise

and Supplier Development Fund’ to

promote the advancement of local

suppliers and the economy. The objectives

of this initiative include:

• Connecting SMMEs to start-up funding

and working capital avenues

• Funding SMMEs with potential and

viable business proposals

• Mentoring and coaching with funded

SMMEs

• Developing and supporting new and

emerging small businesses

Although only launched in

2018, the positive impact of this

initiative speaks for itself. Progress

made in 2019 includes:

• 14 loans approved

• R1,002,077 approved by the

investment committee

• 38 jobs created

• 61 SMMEs supported

• 21 female entrepreneurs supported

• 14 youth entrepreneurs supported

With such development and activity,

the BMC project could prove to

be a catalyst to transforming the

Northern Cape into a thriving base

metals mining, processing and

beneficiation hub.

SMME Story: The Cutting Gallery

The Phakamani team provided financial and skills support to Ann-Mary Hendriks to establish The Cutting Gallery, a hair salon in Aggeneys. Before establishing the salon, Ann-Mary had operated as a door-to-door hairdresser in her hometown of Pella. But she always had the dream to become a financially sound and self-sustainable entrepreneur. After she registered with Phakamani and presented her business plan, the team was suitably convinced of the promise of her business and subsequently provided the start-up capital for her business. The Cutting Gallery recently celebrated its first birthday.

Opportunities created for self-sustainability

Empowering entrepreneurs in Aggeneys

09

GAMSBERG DURING AND AFTER CONSTRUCTION

Before

After

Opportunities created for self-sustainability

Development of Gamsberg infrastructure

Completed infrastructure at Gamsberg

10

Socio-economic development of wider communities

V Z I i s c o m m i t t e d t o c o n d u c t i n g i t s b u s i n e s s i n a s o c i a l l y r e s p o n s i b l e , e t h i c a l a n d e n v i r o n m e n t a l l y f r i e n d l y m a n n e r, a n d t o c o n t i n u o u s l y w o r k i n g t o w a r d s i m p r o v i n g t h e q u a l i t y o f l i f e o f t h e c o m m u n i t y m e m b e r s i n i t s o p e r a t i o n a l a r e a s .

VZI believes that it can positively

impact and contribute to the

realisation of integrated and inclusive

development of the country; that

the sustainable development of the

business is dependent on long-

lasting and mutually beneficial

relationships with all stakeholders,

especially the communities impacted

by its mining activities; and that

partnerships with government,

corporates and civil society/

community institutions offer a strong

multiplier for complementing efforts,

resources and to building sustainable

solutions.

CSR spend

DOMAIN PROJECTS AND BENEFICIARIES TOTAL SPEND

(2014-2019)

Access to healthcare

Cataract surgeries – 1,530 in total R2,954,609

Health outreach – 2,480 patients tested and

receiving cancer treatmentR3,662,838

Clinic access – 8,000 patients have benefitted

from medical equipment upgradesR384,879

Poverty

Broad-Based Livelihood programme – impacting

12,500 community members R1,150,193

Arts and crafts, sports and youth development R1,140,551

Small-scale farming – 50 solar water pumps

installedR1,805,652

SLP impact assessment study – host and labour-

sending communities R779,326

Education

Study trust bursaries – 48 students on full

bursariesR2,947,230

School subsidies and maintenance – benefitting

3,000 learners in the Khâi-Ma MunicipalityR33,815.981

Community skills development – 250 community

members enrolled at TVET college R10,392,576

Employment Enterprise development – support of 90 SMMEs

in Khâi-Ma MunicipalityR4,203,695

Basic Services and infrastructure

Upgrading of libraries and day-care centres R1,467,066

Engineering capacity support R1,551,987

District support and community outreach R6,508,571

Tourism and biodiversity awareness R308,140

Establishment of IcT Centre for NCTVET college R1,250,000

Municipal fleet upgrade and maintenance R991,849

Surveying of land R1,035,252

Telecommunications R991,745

Total R77,662,146

Health services for the community

BMM-sponsored school netball teamLaxman Shekhawat - Business Head, VZI

VZI Growth Projects Business Code of Conduct and Ethics

Pushpender Singla - Chief Financial Officer, VZI

Pieter Van Greunen - Executive Director and SBU head, Gamsberg Manager, VZI

Message from VZI Management Committee

Exciting times are ahead as we continue to work towards purpose-driven business through the impact our projects will have on uplifting the communities we operate in. We currently have five projects in the pipeline at our three Southern African operations – Gamsberg, Black Mountain Mining (BMM) and Skorpion Zinc.

Our flagship project, Gamsberg Zinc, has been in full operation since 2018 and from it, VZI has derived two expansion projects. These include firstly, the Gamsberg Phase 2 Project which is aimed at increasing the ore mining capacity from the current 4 Mtpa to 8 Mtpa. And secondly, the Gamsberg Smelter Project, which is the first of its kind in the Namaqua district and will serve as a catalyst for industrial growth in the region. It is set to produce 250 - 300 ktpa of zinc metal from Gamsberg.

Opportunities to extend the life of mine (LOM) of BMM were realized in the Swartberg Project. A phased approach to execution was adopted to deliver 1.5Mtpa ore in the initiation stage as part of the LOM extension strategy and, the BMM Magnetite Project was re-launched. The Magnetite Project is a waste to value initiative through the recovery of iron ore/magnetite from tailings.

In Namibia, at our Skorpion Zinc Refinery Project, the objective is to produce metal from Gamsberg concentrates by converting the existing Skorpion refinery from Oxide Ore feed to Sulphide concentrate and produce 150 KTPA of finished Zinc metal. Green energy is the future and as such, we at VZI, have explored alternative power sources to support the Gamsberg Smelter Project and Skorpion refinery conversion project.

2020 was a challenging and unprecedented year with the COVID-19 pandemic impacting every way of life as we know it. Amidst this societal disarray, many opportunistic individuals saw this confused state of affairs as fertile ground to commit fraud. However, Vedanta Zinc International stands committed to the highest level of governance, values and integrity standards to combat same through ethical and transparent engagement with all our stakeholders.

Our core values and business ethics are of utmost importance in all that we do and as such we expect our colleagues to act proactively, raising concerns about ethical issues, and reporting any conduct believed to be in violation of Vedanta’s Code of Business Conduct and Ethics.

At Vedanta, we encourage our colleagues to make use of the below measures when engaging with our stakeholders:

• Leverage technology in marketing and avoid manual interfaces.

• Focus on having long term arrangements with customers.

• Endeavor to deal with reputable customers and OEMs.

• Ensure that negotiations, pricing, discounts, customer connects are done by cross functional teams instead of an individual.

• Ensure proper due diligence & clear contracting is done before dealing with traders.

• Ensure that customer accounts are reconciled regularly with clear focus on automation to avoid disputes.

• Acceptance of gifts, travel or entertainment from customers is prohibited.

• Follow the laid down marketing guidelines in letter & spirit.

• Embed ethics in everyday work and in decision making.

If you wish to report a possible violation, please do not hesitate to report it on the whistle-blower hotline at the following details:

Email complaint to: www.vedanta.ethicspoint.com and choose “Make a Report.”

Whistle-blower Hotline numbers: South Africa: 0800992887Namibia: +1 704-526-1125 (Speed dial: 7399)Ireland: 1800550000

CSR Projects

As part of our commitment to creating sustainable futures for our people and communities in a zero-harm environment, Black Mountain Complex’s response to the COVID-19 pandemic remains a critical priority in 2021. Last year, the assistance and support to our communities and the government included the following:

• Upgrading and refurbishment of the Pofadder local hospital.

• Continuation of providing ‘care packs’ and food supplies to the most vulnerable families and citizens in our region in partnership with the Department of Social Development, and the district and local municipalities.

• Distribution of masks to schools and care centres.

• Support for local municipal COVID-19 screening in conjunction with Department of Health.

• Availability of quarantine sites for local community members.

As part of the COVID-19 support, we are also placing considerable focus in the category of education to alleviate the pressure exerted by the COVID-19 pandemic on the public school education system.

In 2020, we enrolled 30 primary and high schools from the broader Namaqua district on a Hey Maths and Hey Science programme to ensure a better output during these challenging times. The programme is designed to support schools in creating efficient learning platforms for both teacher and student to promote better mathematics and science outcomes.

10

Socio-economic development of wider communities

V Z I i s c o m m i t t e d t o c o n d u c t i n g i t s b u s i n e s s i n a s o c i a l l y r e s p o n s i b l e , e t h i c a l a n d e n v i r o n m e n t a l l y f r i e n d l y m a n n e r, a n d t o c o n t i n u o u s l y w o r k i n g t o w a r d s i m p r o v i n g t h e q u a l i t y o f l i f e o f t h e c o m m u n i t y m e m b e r s i n i t s o p e r a t i o n a l a r e a s .

VZI believes that it can positively

impact and contribute to the

realisation of integrated and inclusive

development of the country; that

the sustainable development of the

business is dependent on long-

lasting and mutually beneficial

relationships with all stakeholders,

especially the communities impacted

by its mining activities; and that

partnerships with government,

corporates and civil society/

community institutions offer a strong

multiplier for complementing efforts,

resources and to building sustainable

solutions.

CSR spend

DOMAIN PROJECTS AND BENEFICIARIES TOTAL SPEND

(2014-2019)

Access to healthcare

Cataract surgeries – 1,530 in total R2,954,609

Health outreach – 2,480 patients tested and

receiving cancer treatmentR3,662,838

Clinic access – 8,000 patients have benefitted

from medical equipment upgradesR384,879

Poverty

Broad-Based Livelihood programme – impacting

12,500 community members R1,150,193

Arts and crafts, sports and youth development R1,140,551

Small-scale farming – 50 solar water pumps

installedR1,805,652

SLP impact assessment study – host and labour-

sending communities R779,326

Education

Study trust bursaries – 48 students on full

bursariesR2,947,230

School subsidies and maintenance – benefitting

3,000 learners in the Khâi-Ma MunicipalityR33,815.981

Community skills development – 250 community

members enrolled at TVET college R10,392,576

Employment Enterprise development – support of 90 SMMEs

in Khâi-Ma MunicipalityR4,203,695

Basic Services and infrastructure

Upgrading of libraries and day-care centres R1,467,066

Engineering capacity support R1,551,987

District support and community outreach R6,508,571

Tourism and biodiversity awareness R308,140

Establishment of IcT Centre for NCTVET college R1,250,000

Municipal fleet upgrade and maintenance R991,849

Surveying of land R1,035,252

Telecommunications R991,745

Total R77,662,146

Health services for the community

BMM-sponsored school netball team

11

Since implementing its corporate social responsibility plan in 2014, VZI has spent more than

R77 million

on various initiatives in the local Khâi-Ma Municipality. Some of the most successful initiatives include:

The Broad-Based Livelihood (BBL) programme

The Khâi-Ma-focused Broad-Based Livelihood (BBL) programme is VZI’s flagship and

ongoing socio-economic poverty alleviation programme. The programme started in

January 2019 and will roll out over a two-and-a-half-year period. It encourages inclusive

local economic development by imparting horticulture skills that will assist communities

towards food security, building entrepreneurial and business management skills towards

SMME development, and introducing planning skills to map their own future beyond the

life of mine.

Annual healthcare cancer programme (PinkDrive)

VZI’s annual PinkDrive breast and prostate examination programme aims to assist in the

early detection and treatment of breast and prostate cancer within VZI’s host communities.

It has run for four consecutive years. This programme is unique in that mobile trucks are

deployed to visit the communities where VZI operates and residents are encouraged to

undergo the relevant testing. The results achieved from the most recent drive demonstrate

the impact and wide reach of the PinkDrive programme and reinforce VZI’s continuous

commitment to accessible healthcare services.

PinkDrive results in 2019 include:

127 mammograms

13 referrals made

208 pap smears

195 clinical breast exams

282 prostate-specific antigen (PSA) tests

564 girls and 842 boys tested at schools

Health services for the community

Livelihood programme developing horticulture skills

Screening drives for the broader community

Mobile clinics making healthcare accessible

11

Since implementing its corporate social responsibility plan in 2014, VZI has spent more than

R77 million

on various initiatives in the local Khâi-Ma Municipality. Some of the most successful initiatives include:

The Broad-Based Livelihood (BBL) programme

The Khâi-Ma-focused Broad-Based Livelihood (BBL) programme is VZI’s flagship and

ongoing socio-economic poverty alleviation programme. The programme started in

January 2019 and will roll out over a two-and-a-half-year period. It encourages inclusive

local economic development by imparting horticulture skills that will assist communities

towards food security, building entrepreneurial and business management skills towards

SMME development, and introducing planning skills to map their own future beyond the

life of mine.

Annual healthcare cancer programme (PinkDrive)

VZI’s annual PinkDrive breast and prostate examination programme aims to assist in the

early detection and treatment of breast and prostate cancer within VZI’s host communities.

It has run for four consecutive years. This programme is unique in that mobile trucks are

deployed to visit the communities where VZI operates and residents are encouraged to

undergo the relevant testing. The results achieved from the most recent drive demonstrate

the impact and wide reach of the PinkDrive programme and reinforce VZI’s continuous

commitment to accessible healthcare services.

PinkDrive results in 2019 include:

127 mammograms

13 referrals made

208 pap smears

195 clinical breast exams

282 prostate-specific antigen (PSA) tests

564 girls and 842 boys tested at schools

Health services for the community

Livelihood programme developing horticulture skills

Screening drives for the broader community

Mobile clinics making healthcare accessible

Since the start of the Social Labour Plan (SLP) in 2014, VZI has spent

R77 million on various initiatives in the Khâi-Ma municipal area. Some of the most successful SLP and CSR initiatives include:

PinkDrive 2020

12

Environmental preservation and rehabilitation

V Z I u n d e r s t a n d s t h a t e n v i r o n m e n t a l p r o t e c t i o n r e q u i r e s e f f o r t t o b r i n g i n t e r n a l a n d e x t e r n a l a u d i e n c e s o n s i d e ,

s o t h a t i t c a n w o r k t o g e t h e r t o a c h i e v e m u t u a l o b j e c t i v e s w h i l e r e s p e c t i n g t h e n a t u r a l s u r r o u n d i n g s .

BMC is situated in the Succulent Karoo

Biome, an ecologically sensitive and

biodiverse hotspot. The biome covers an

area of some 83,000km2 of arid to semi-

arid land encompassing Namaqualand

and the southern Karoo. The area features

a rich diversity of plants and animals

adapted to the conditions, including the

largest collection of succulent plants for

the biome size, nearly 40% of which are

endemic to the region. The fragility of the

biome required that VZI’s environmental

specialists consult a wide range of local

and international experts – including the

International Union for Conservation of

Nature, one of the world’s oldest and

most respected environmental groups –

to develop biodiversity offset initiatives

that would protect the area and ensure

comprehensive restoration once mining

activities cease. To date, key actions in

this regard include:

The red lark

The red lark is a highly range-restricted species endemic to the Northern Cape. While this bird has, historically, been poorly represented within existing protected areas across its range, it is encouraging to note that the red lark has been observed within the greater Gamsberg area. This is a good indication that the biome within which the mine operates is a flourishing habitat for all species.

Vedanta Zinc International2 Maude Street, 11th FloorThe Forum Building, Sandton, 2128

Tel: +27 11 685-3960

www.vedanta-zincinternational.com

CONTACT US

The harvesting of more than 77,000 plants, stored at Gamsberg’s own nursery for future relocation, with donations made both to the South African Biodiversity Institute and the Karoo Desert National Botanical Garden

The collection of more than 300,000 seeds for storage in the Gamsberg nursery’s seedbank for future germination

The initial implementation of a biodiversity offset agreement with the Northern Cape Department of Environment and Nature Conservation, involving the purchase and management for a period of 10 years by Zinc International of 12,500 hectares of substantially intact land to offset the impact of land disturbed by Gamsberg’s development

The redesign of the open pit to reduce its size and protect sensitive areas. This has effectively sterilised 10Mt of ore

The erection of fencing to create “no-go zones” for human/vehicle traffic and the implementation of a disciplinary code to ensure compliance

Red Lark in the area of Gamsberg

Landscape of the succulent Karoo Biome

10

Socio-economic development of wider communities

V Z I i s c o m m i t t e d t o c o n d u c t i n g i t s b u s i n e s s i n a s o c i a l l y r e s p o n s i b l e , e t h i c a l a n d e n v i r o n m e n t a l l y f r i e n d l y m a n n e r, a n d t o c o n t i n u o u s l y w o r k i n g t o w a r d s i m p r o v i n g t h e q u a l i t y o f l i f e o f t h e c o m m u n i t y m e m b e r s i n i t s o p e r a t i o n a l a r e a s .

VZI believes that it can positively

impact and contribute to the

realisation of integrated and inclusive

development of the country; that

the sustainable development of the

business is dependent on long-

lasting and mutually beneficial

relationships with all stakeholders,

especially the communities impacted

by its mining activities; and that

partnerships with government,

corporates and civil society/

community institutions offer a strong

multiplier for complementing efforts,

resources and to building sustainable

solutions.

CSR spend

DOMAIN PROJECTS AND BENEFICIARIES TOTAL SPEND

(2014-2019)

Access to healthcare

Cataract surgeries – 1,530 in total R2,954,609

Health outreach – 2,480 patients tested and

receiving cancer treatmentR3,662,838

Clinic access – 8,000 patients have benefitted

from medical equipment upgradesR384,879

Poverty

Broad-Based Livelihood programme – impacting

12,500 community members R1,150,193

Arts and crafts, sports and youth development R1,140,551

Small-scale farming – 50 solar water pumps

installedR1,805,652

SLP impact assessment study – host and labour-

sending communities R779,326

Education

Study trust bursaries – 48 students on full

bursariesR2,947,230

School subsidies and maintenance – benefitting

3,000 learners in the Khâi-Ma MunicipalityR33,815.981

Community skills development – 250 community

members enrolled at TVET college R10,392,576

Employment Enterprise development – support of 90 SMMEs

in Khâi-Ma MunicipalityR4,203,695

Basic Services and infrastructure

Upgrading of libraries and day-care centres R1,467,066

Engineering capacity support R1,551,987

District support and community outreach R6,508,571

Tourism and biodiversity awareness R308,140

Establishment of IcT Centre for NCTVET college R1,250,000

Municipal fleet upgrade and maintenance R991,849

Surveying of land R1,035,252

Telecommunications R991,745

Total R77,662,146

Health services for the community

BMM-sponsored school netball team

10

Socio-economic development of wider communities

V Z I i s c o m m i t t e d t o c o n d u c t i n g i t s b u s i n e s s i n a s o c i a l l y r e s p o n s i b l e , e t h i c a l a n d e n v i r o n m e n t a l l y f r i e n d l y m a n n e r, a n d t o c o n t i n u o u s l y w o r k i n g t o w a r d s i m p r o v i n g t h e q u a l i t y o f l i f e o f t h e c o m m u n i t y m e m b e r s i n i t s o p e r a t i o n a l a r e a s .

VZI believes that it can positively

impact and contribute to the

realisation of integrated and inclusive

development of the country; that

the sustainable development of the

business is dependent on long-

lasting and mutually beneficial

relationships with all stakeholders,

especially the communities impacted

by its mining activities; and that

partnerships with government,

corporates and civil society/

community institutions offer a strong

multiplier for complementing efforts,

resources and to building sustainable

solutions.

CSR spend

DOMAIN PROJECTS AND BENEFICIARIES TOTAL SPEND

(2014-2019)

Access to healthcare

Cataract surgeries – 1,530 in total R2,954,609

Health outreach – 2,480 patients tested and

receiving cancer treatmentR3,662,838

Clinic access – 8,000 patients have benefitted

from medical equipment upgradesR384,879

Poverty

Broad-Based Livelihood programme – impacting

12,500 community members R1,150,193

Arts and crafts, sports and youth development R1,140,551

Small-scale farming – 50 solar water pumps

installedR1,805,652

SLP impact assessment study – host and labour-

sending communities R779,326

Education

Study trust bursaries – 48 students on full

bursariesR2,947,230

School subsidies and maintenance – benefitting

3,000 learners in the Khâi-Ma MunicipalityR33,815.981

Community skills development – 250 community

members enrolled at TVET college R10,392,576

Employment Enterprise development – support of 90 SMMEs

in Khâi-Ma MunicipalityR4,203,695

Basic Services and infrastructure

Upgrading of libraries and day-care centres R1,467,066

Engineering capacity support R1,551,987

District support and community outreach R6,508,571

Tourism and biodiversity awareness R308,140

Establishment of IcT Centre for NCTVET college R1,250,000

Municipal fleet upgrade and maintenance R991,849

Surveying of land R1,035,252

Telecommunications R991,745

Total R77,662,146

Health services for the community

BMM-sponsored school netball team

11

Since implementing its corporate social responsibility plan in 2014, VZI has spent more than

R77 million

on various initiatives in the local Khâi-Ma Municipality. Some of the most successful initiatives include:

The Broad-Based Livelihood (BBL) programme

The Khâi-Ma-focused Broad-Based Livelihood (BBL) programme is VZI’s flagship and

ongoing socio-economic poverty alleviation programme. The programme started in

January 2019 and will roll out over a two-and-a-half-year period. It encourages inclusive

local economic development by imparting horticulture skills that will assist communities

towards food security, building entrepreneurial and business management skills towards

SMME development, and introducing planning skills to map their own future beyond the

life of mine.

Annual healthcare cancer programme (PinkDrive)

VZI’s annual PinkDrive breast and prostate examination programme aims to assist in the

early detection and treatment of breast and prostate cancer within VZI’s host communities.

It has run for four consecutive years. This programme is unique in that mobile trucks are

deployed to visit the communities where VZI operates and residents are encouraged to

undergo the relevant testing. The results achieved from the most recent drive demonstrate

the impact and wide reach of the PinkDrive programme and reinforce VZI’s continuous

commitment to accessible healthcare services.

PinkDrive results in 2019 include:

127 mammograms

13 referrals made

208 pap smears

195 clinical breast exams

282 prostate-specific antigen (PSA) tests

564 girls and 842 boys tested at schools

Health services for the community

Livelihood programme developing horticulture skills

Screening drives for the broader community

Mobile clinics making healthcare accessible

13

12

Environmental preservation and rehabilitation

V Z I u n d e r s t a n d s t h a t e n v i r o n m e n t a l p r o t e c t i o n r e q u i r e s e f f o r t t o b r i n g i n t e r n a l a n d e x t e r n a l a u d i e n c e s o n s i d e ,

s o t h a t i t c a n w o r k t o g e t h e r t o a c h i e v e m u t u a l o b j e c t i v e s w h i l e r e s p e c t i n g t h e n a t u r a l s u r r o u n d i n g s .

BMC is situated in the Succulent Karoo

Biome, an ecologically sensitive and

biodiverse hotspot. The biome covers an

area of some 83,000km2 of arid to semi-

arid land encompassing Namaqualand

and the southern Karoo. The area features

a rich diversity of plants and animals

adapted to the conditions, including the

largest collection of succulent plants for

the biome size, nearly 40% of which are

endemic to the region. The fragility of the

biome required that VZI’s environmental

specialists consult a wide range of local

and international experts – including the

International Union for Conservation of

Nature, one of the world’s oldest and

most respected environmental groups –

to develop biodiversity offset initiatives

that would protect the area and ensure

comprehensive restoration once mining

activities cease. To date, key actions in

this regard include:

The red lark

The red lark is a highly range-restricted species endemic to the Northern Cape. While this bird has, historically, been poorly represented within existing protected areas across its range, it is encouraging to note that the red lark has been observed within the greater Gamsberg area. This is a good indication that the biome within which the mine operates is a flourishing habitat for all species.

Vedanta Zinc International2 Maude Street, 11th FloorThe Forum Building, Sandton, 2128

Tel: +27 11 685-3960

www.vedanta-zincinternational.com

CONTACT US

The harvesting of more than 77,000 plants, stored at Gamsberg’s own nursery for future relocation, with donations made both to the South African Biodiversity Institute and the Karoo Desert National Botanical Garden

The collection of more than 300,000 seeds for storage in the Gamsberg nursery’s seedbank for future germination

The initial implementation of a biodiversity offset agreement with the Northern Cape Department of Environment and Nature Conservation, involving the purchase and management for a period of 10 years by Zinc International of 12,500 hectares of substantially intact land to offset the impact of land disturbed by Gamsberg’s development

The redesign of the open pit to reduce its size and protect sensitive areas. This has effectively sterilised 10Mt of ore

The erection of fencing to create “no-go zones” for human/vehicle traffic and the implementation of a disciplinary code to ensure compliance

Red Lark in the area of Gamsberg

Landscape of the succulent Karoo Biome

12

Environmental preservation and rehabilitation

V Z I u n d e r s t a n d s t h a t e n v i r o n m e n t a l p r o t e c t i o n r e q u i r e s e f f o r t t o b r i n g i n t e r n a l a n d e x t e r n a l a u d i e n c e s o n s i d e ,

s o t h a t i t c a n w o r k t o g e t h e r t o a c h i e v e m u t u a l o b j e c t i v e s w h i l e r e s p e c t i n g t h e n a t u r a l s u r r o u n d i n g s .

BMC is situated in the Succulent Karoo

Biome, an ecologically sensitive and

biodiverse hotspot. The biome covers an

area of some 83,000km2 of arid to semi-

arid land encompassing Namaqualand

and the southern Karoo. The area features

a rich diversity of plants and animals

adapted to the conditions, including the

largest collection of succulent plants for

the biome size, nearly 40% of which are

endemic to the region. The fragility of the

biome required that VZI’s environmental

specialists consult a wide range of local

and international experts – including the

International Union for Conservation of

Nature, one of the world’s oldest and

most respected environmental groups –

to develop biodiversity offset initiatives

that would protect the area and ensure

comprehensive restoration once mining

activities cease. To date, key actions in

this regard include:

The red lark

The red lark is a highly range-restricted species endemic to the Northern Cape. While this bird has, historically, been poorly represented within existing protected areas across its range, it is encouraging to note that the red lark has been observed within the greater Gamsberg area. This is a good indication that the biome within which the mine operates is a flourishing habitat for all species.

Vedanta Zinc International2 Maude Street, 11th FloorThe Forum Building, Sandton, 2128

Tel: +27 11 685-3960

www.vedanta-zincinternational.com

CONTACT US

The harvesting of more than 77,000 plants, stored at Gamsberg’s own nursery for future relocation, with donations made both to the South African Biodiversity Institute and the Karoo Desert National Botanical Garden

The collection of more than 300,000 seeds for storage in the Gamsberg nursery’s seedbank for future germination

The initial implementation of a biodiversity offset agreement with the Northern Cape Department of Environment and Nature Conservation, involving the purchase and management for a period of 10 years by Zinc International of 12,500 hectares of substantially intact land to offset the impact of land disturbed by Gamsberg’s development

The redesign of the open pit to reduce its size and protect sensitive areas. This has effectively sterilised 10Mt of ore

The erection of fencing to create “no-go zones” for human/vehicle traffic and the implementation of a disciplinary code to ensure compliance

Red Lark in the area of Gamsberg

Landscape of the succulent Karoo Biome

10

Socio-economic development of wider communities

V Z I i s c o m m i t t e d t o c o n d u c t i n g i t s b u s i n e s s i n a s o c i a l l y r e s p o n s i b l e , e t h i c a l a n d e n v i r o n m e n t a l l y f r i e n d l y m a n n e r, a n d t o c o n t i n u o u s l y w o r k i n g t o w a r d s i m p r o v i n g t h e q u a l i t y o f l i f e o f t h e c o m m u n i t y m e m b e r s i n i t s o p e r a t i o n a l a r e a s .

VZI believes that it can positively

impact and contribute to the

realisation of integrated and inclusive

development of the country; that

the sustainable development of the

business is dependent on long-

lasting and mutually beneficial

relationships with all stakeholders,

especially the communities impacted

by its mining activities; and that

partnerships with government,

corporates and civil society/

community institutions offer a strong

multiplier for complementing efforts,

resources and to building sustainable

solutions.

CSR spend

DOMAIN PROJECTS AND BENEFICIARIES TOTAL SPEND

(2014-2019)

Access to healthcare

Cataract surgeries – 1,530 in total R2,954,609

Health outreach – 2,480 patients tested and

receiving cancer treatmentR3,662,838

Clinic access – 8,000 patients have benefitted

from medical equipment upgradesR384,879

Poverty

Broad-Based Livelihood programme – impacting

12,500 community members R1,150,193

Arts and crafts, sports and youth development R1,140,551

Small-scale farming – 50 solar water pumps

installedR1,805,652

SLP impact assessment study – host and labour-

sending communities R779,326

Education

Study trust bursaries – 48 students on full

bursariesR2,947,230

School subsidies and maintenance – benefitting

3,000 learners in the Khâi-Ma MunicipalityR33,815.981

Community skills development – 250 community

members enrolled at TVET college R10,392,576

Employment Enterprise development – support of 90 SMMEs

in Khâi-Ma MunicipalityR4,203,695

Basic Services and infrastructure

Upgrading of libraries and day-care centres R1,467,066

Engineering capacity support R1,551,987

District support and community outreach R6,508,571

Tourism and biodiversity awareness R308,140

Establishment of IcT Centre for NCTVET college R1,250,000

Municipal fleet upgrade and maintenance R991,849

Surveying of land R1,035,252

Telecommunications R991,745

Total R77,662,146

Health services for the community

BMM-sponsored school netball team

14