wolvekrans middelburg complex

01

WOLVEKRANS MIDDELBURG COMPLEX

JUNE 2017Mining Right Reference Number: Wolvekrans Middelburg Complex - MP30/5/1/2/2/379MR

SOCIAL AND LABOUR PLAN FOR SOUTH32

Table of Contents SOCIAL AND LABOUR PLAN 1

Abbreviations 6

1. INTRODUCTION AND PREAMBLE 8

1.1 Introduction 8

1.2 Preamble 8

1.3 Mining Methodology 9

1.4 Current and Expected Workforce 9

1.5 Local Recruitment 9

2. HUMAN RESOURCE DEVELOPMENT PLAN 12

2.1 Introduction 12

2.2 Skills Development Plan 12

2.2.1 Adult Education and Training 12

2.2.2 Learnerships 15

2.2.3 Core Business Skills Programme 17

2.2.4 Portable Skills Training 20

2.2.5 Hard to Fill Vacancies 22

2.2.6 Career Progression Plan 22

2.2.7 Mentorship Plan 23

2.2.8 Bursary Plan and Graduate Development Programme (Internship) 24

2.2.8.1 Full Study Bursaries: 24

2.2.8.2 Study Assistance: 25

2.2.9 Internship and Graduate Development Programme: 26

2.2.10 Employment Equity Plan 27

2.2.11 Employment Equity Strategies Applied at WMC Colliery 28

a) Capacity Building (Talent Pool Development) 28

b) Fast Tracking 28

2.2.12 Participation of Historically Disadvantaged South Africans 28

2.2.13 Women at the Mine 29

3. LOCAL ECONOMIC DEVELOPMENT PROGRAMME 32

3.1 Introduction 32

3.2 Socio-Economic Background Information 32

3.3 Key Economic Activities 37

3.4 Local Economic Development Planning 37

3.4.1 Integrated Development Planning: Nkangala District Municipality 37

3.4.2 Integrated Development Planning: Steve Tshwete

Local Municipality 38

Supa X Godesign

3.5 Stakeholder Engagement and Management Plan 39

3.5.1 Record of Communication between Operation and the various

Stakeholders 40

3.6 Socio-Economic Impact of the Mine in the Local Communities 40

3.7 Infrastructure Development, Poverty Eradication and Welfare

Creation Projects 40

3.7.1 Infrastructure Development and Poverty Alleviation Programmes 41

3.8 Housing and Living Conditions 41

3.9 Health Care and Nutrition Plan 42

3.10 Procurement Plan 43

4. Downscaling and Retrenchment 45

4.1 Introduction 45

4.2 Future Forum 45

4.3 Communication with Authorities 46

4.4 Mechanisms to Avoid Job Losses 46

4.5 Provision of alternative solutions and procedures for creating

job security where job losses cannot be avoided 46

4.6 Mechanisms to ameliorate the social and economic impact

on individuals, regions and economies where retrenchment or

closure of the operation is certain 47

4.7 Post Closure Planning 48

4.8 Social and Labour Plan (SLP) Communication 48

5. Financial Provision 50

5.1 Financial Provision 50

5.2 Financial Provision for Human Resource Development

Programmes (Regulation 46 (E) (1)) 50

5.3 Financial Provision for Local Economic Development Programmes

(Regulation 46(E) (ii)) 51

5.4 Financial Provision for Management of Downscaling and

Retrenchment (Regulation 46(E) (iii)) 51

6 Undertaking 53

Addendum A: Breakdown of Labour Sending Areas 53

List of Table

TABLE 1: LOCAL RECRUITMENT UNDERTAKING SUMMARY 9

TABLE 2: LABOUR SENDING AREAS AT WMC OPERATION AS AT

28TH FEBRUARY 2017 9

TABLE 3: OCCUPATIONAL DISTRIBUTION OF CURRENT WORKFORCE (AS AT THE

28TH FEBRUARY 2017) AND EXPECTED OPERATION WORKFORCE FOR

FIVE (5) YEARS (FY 2018 TO 2022) 10

TABLE 4: ADULT EDUCATION AND TRAINING UNDERTAKING 13

TABLE 5: AET TARGETS AT WMC COLLIERY (FY 2018 TO 2022) 13

TABLE 6: FORM Q – FUNCTIONAL LITERACY AT WMC COLLIERY AS AT

28 FEBRUARY 2017 14

TABLE 7: COMMUNITY AET TARGETS AT WMC COLLIERY (FY 2018 TO 2022) 16

TABLE 8: PROJECTED SECTION 18.1 LEARNERSHIP TARGETS FOR

WMC COLLIERY (FY 2018 TO 2022) 16

TABLE 12: PROJECTED CORE TECHNICAL AND NON-TECHNICAL BUSINESS SKILLS

TRAINING TARGETS AT WMC COLLIERY OPERATION (FY 2018 TO 2022) 18

TABLE 13: PROJECTED ARTISAN TRAINING TARGETS FOR WMC COLLIERY

(FY 2018 TO 2022) 18

TABLE 18: CAREER PROGRESSION UNDERTAKING 23

TABLE 19: EMPLOYEES WITH INDIVIDUAL DEVELOPMENT PLANS 23

TABLE 20: MENTORSHIP UNDERTAKING 24

TABLE 22: BURSARY PLAN UNDERTAKING 25

TABLE 23: TARGETS FOR CHILD OF EMPLOYEE BURSARY

PROGRAMMES AT WMC COLLIERY (FY 2018 TO 2022) 25

TABLE 24: TARGETS FOR EXTERNAL BURSARY PROGRAMMES AT

MC COLLIERY (FY 2018 TO 2022) 25

TABLE 25: SUMMARY OF EMPLOYEE STUDY ASSISTANCE TARGETS AT


TABLE 26: FEEDBACK ON INTERNSHIP AND GRADUATE DEVELOPMENT

PROGRAMME UNDERTAKING 26

TABLE 27: MINING RELATED INTERNSHIP/GRADUATE DEVELOPMENT

PROGRAMME TARGETS AT WMC COLLIERY (FY 2018 TO 2022) 27

TABLE 28: EXTERNAL TO MINING INTERNSHIP/GRADUATE DEVELOPMENT

PROGRAMME TARGETS AT WMC COLLIERY (FY 2018 TO 2022) 27

TABLE 29: EMPLOYMENT EQUITY UNDERTAKING 28

TABLE 30: FORM S: EMPLOYMENT EQUITY STATISTICS AT WMC

COLLIERY AS AT 28 FEBRUARY 2017 28

TABLE 31: DEVELOPMENT OF HDSA’S INTO MANAGEMENT 29

TABLE 32: HDSAS IN MANAGEMENT TARGETS FOR WMC COLLIERY

(FY 2018 TO 2022) 29

TABLE 33: WOMEN AT THE MINE 30

TABLE 34: TARGETS FOR PARTICIPATION OF WOMEN IN MINING AT


TABLE 35: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION – POPULATION 32

TABLE 36: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION - DWELLING TYPE 33

TABLE 37: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -

ABLUTION FACILITIES 33


PORTABLE WATER ACCESS 34

TABLE 39: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION - REFUSE REMOVAL 34


ENERGY SOURCE USED FOR COOKING 35


ENERGY SOURCE USED FOR HEATING 35


ENERGY FOR LIGHTING 35


EDUCATIONAL PROFILES 36

TABLE 44: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION – EMPLOYMENT 36

TABLE 45: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION –

INDIVIDUAL MONTHLY INCOME 36

TABLE 46: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION –

SECTORIAL EMPLOYMENT 37

TABLE 47: IDP PRIORITY ISSUES AND OBJECTIVES FOR NKANGALA DISTRICT

MUNICIPALITY 38

TABLE 48: KEY LED PRIORITIES AND OBJECTIVES OF THE STEVE TSHWETE

LOCAL MUNICIPALITY 39

TABLE 49: RECORD OF STAKEHOLDER ENGAGEMENT 40

TABLE 50: FIVE (5) YEAR PROJECT SUMMARY PLAN FOR LOCAL

ECONOMIC DEVELOPMENT PROJECTS OF WMC COLLIERY 41

TABLE 51: HOUSING AND LIVING CONDITIONS UNDERTAKING 41

TABLE 52: HEALTH CARE AND NUTRITION PLAN UNDERTAKING 42

TABLE 53: BACKGROUND ON PREFERENTIAL PROCUREMENT HDSA UNDERTAKING 42

TABLE 54: TARGETS FOR HDSA PROCUREMENT AT WMC COLLIERY FOR FY

2018 TO 2022 43

TABLE 55: DOWNSCALING AND RETRENCHMENT UNDERTAKING 45

TABLE 56: STRATEGIC ACTION PLAN FOR FUTURE FORUM 45

TABLE 57: STRATEGIC ACTION PLAN TO COMMUNICATE WITH THE AUTHORITIES 46

TABLE 58: MECHANISMS TO AVOID JOB LOSSES UNDERTAKING 46

TABLE 59: PROVISION OF ALTERNATIVE SOLUTIONS UNDERTAKING 47

TABLE 60: MECHANISMS TO AMELIORATE THE SOCIAL-ECONOMIC

IMPACT UNDERTAKING 47

LIST OF FIGURES

FIGURE 1: MAP INDICATING THE LOCATION OF WMC COLLIERY 9

06

Abbreviations

ABBREVIATION MEANING

AET Adult Basic Education and Training

BEE Black Economic Empowerment

CV Curriculum Vitae

DACE Department of Agriculture, Conservation and Environment

DMR Department of Mineral Resources

DoL Department of Labour

DTI Department of Trade and Industry

EE Economic Empowering

EIA Environmental Impact Assessment

ELM Emalahleni Local Municipality

FY Financial Year

GET General Education and Training

HDSAs Historically Disadvantaged South Africans

HET Higher Education and Training

HRD Human Resources Development

HRDP Human Resources Development Programme

ICDP Individual Career Development Plan

IDPs Integrated Development Plans

JV Joint Venture

LED Local Economic Development

LEDP Local Economic Development Programme

MPRDA Minerals and Petroleum Resources Development Act (no. 28, 2002)

MQA Mining Qualifications Authority

NDM Nkangala District Municipality

NQF National Qualifications Framework

NSDP National Spatial Development Perspective

PGDS Provincial Growth and Development Strategy

RSA Republic of South Africa

SETA Sector Education and Training Authority

SLP Social and Labour Plan

SMMEs Small, Medium and Micro Enterprises

TBC To Be Confirmed

UIF Unemployment Insurance Fund

VCT Voluntary Counselling and Testing

WIM Women in Mining

WSP Workplace Skills Plan

07 SECT

ION 1

SECTION 1PREAMBLE

INTRODUCTION TO AND BACKGROUND

INFORMATION ON THE OPERATION

08

1. INTRODUCTION AND PREAMBLE1.1. Introduction

This Revised Social and Labour Plan (SLP) is submitted by South32 SA Coal Holdings Propriety Limited in compliance with the requirements of the Mineral and Petroleum Resources Development Act of 2002 (MPRDA), to operate with an approved Social and Labour plan for the life of the mine. A Section 102 amendment/ variation on mining right was executed on the 21st May 2015 which amendment/ variation is yet to be registered, wherein the following four mining rights; MP 30/5/1/2/2/379MR, 30/5/1/2/2/376 MR, 30/5/1/2/2/378 MR and 30/5/1/2/2/377M; was consolidated into one mining right reference number issued under DMR Reference number MP30/5/1/2/2/379MR.

This SLP has been compiled in terms of the MPRDA, and sets out the social and labour programmes to be in place for the life of the mining right.

The objectives of the SLP (section 41 of the Regulations) are to:

• Promote economic growth and mineral and petroleum resources development in the Republic (Section 2 (e) of the (MPRDA);

• Promote employment and advance the social and economic welfare of all South Africans (Section 2 (f) of the MPRDA); • Ensure that holders of mining or production rights contribute towards the socio-economic development of the areas in • which they are operating as well as the areas from which the majority of the workforce is sourced (Section 2 (i) of the

(MPRDA); and • To utilise and expand the existing skills base for the empowerment of HDSA and to serve the community.

1.2. Preamble

Name of Company: South32 SA Coal Holdings Propriety Limited

Name of Colliery: Wolvekrans Middelburg Complex

Name and address of mining right holder Physical Address:

South32. 39 Melrose Boulevard Melrose Arch Johannesburg 2076

Postal Address: PO Box 61820, Marshalltown, 2107

Contact Person: Andre Roux

Telephone Number: (013)– 689 4318

Email Address: [email protected]

Location of Mine: Wolvekrans Middelburg Complex location falls within Ward 24 of the Emalahleni Local Municipality (ELM) (Wolvekrans) and Steve Tshwete Local Municipality (STLM) (MMS) within the Nkangala District Municipality (NDM) in the Mpumalanga Province. The nearest significant towns to the WMC are Witbank (situated 25 kilometres north-west of Wolvekrans and 23 kilometres west of MMS) and Middelburg (situated some 35 kilometres away to the north-east of Wolvekrans some 20 kilometres to the north of MMS).

Commodity: Coal

Life of Mine: 30 years

Financial Year: 30 June Any reference in this document for the period 1 July 2017 to 30 June 2022 refers to FY2018 – FY2022.

Reporting Period: July to June as per financial year

09

Figure 1: Map indicating the location of WMC

1.3, Mining MethodologyWMC is an existing opencast operation that is being mined with opencast methodologies. Equipment being used includes dragline and truck and shovel. The main opencast operations utilise the dragline for waste removal in a combination of single and double bench configurations. a fleet of track- mounted dozers assists in dozer push over to support the dragline water removal. A fleet of coal haulers and front-end loaders is then utilised to extract the coal and parting from the pit. A fleet of surface drill rigs drill the waste and coal horizons. Water and diesel bowsers, service trucks for lubrication, graders and rigging equipment will then service the entire operation.

1.4.Current and Expected WorkforceWMC is currently at steady status with a total labour force of one thousand eight hundred and ninety-two (1,892) employees in permanent positions. The mine does not foresee significant changes to the labour force within the next five-year SLP period. Furthermore, the mine remains committed to continue the focus on preferential recruitment from their local host communities (currently at 95%) as outlined in Section 1.5 below.

1.5. Local RecruitmentThe breakdown of WMC’s labour sending areas is provided in Table 2 below, the majority of the employees are from local community and surrounding areas. The Colliery’s recruitment policy is in line with the objectives of the MPRDA in terms of local job creation.

Table 1: Local Recruitment Undertaking Summary

Undertaking: The Colliery is committed to the development and transformation of the affected communities within which it is operating. In order to achieve this, the mine has a strong focus on the recruitment and development of local community members, with an emphasis on the development of the previously unskilled andunemployed members of the affected communities.

Summary The Colliery’s skills development programmes have been aligned in such a manner that unskilledemployees (especially from the local areas) have the opportunity for career development.

Table 2: Labour Sending Areas at WMC Operation as at 28th February 2017

Sending Areas Count %Local 1793 95%

In Province Employment/Other 98 5%

Inter Provincial Employment 1

Total: 1892 100

010

Table 3: Occupational Distribution of Current Workforce (as at the 28th February 2017) and Expected Operation Workforce for Five (5) Years (FY 2018 to 2022)

Operation Workforce Plan Current Labour FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Top management (f) 0 0 0 0 0

Senior management (e) 13 11 11 11 11 11

Professionally qualified and experienced specialists and middle management (d)

270 303 303 303 303 303

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

834 834 834 834 834 834

Semi-skilled and discretionary decisions making (b)

775 721 721 721 726 741

Unskilled and defined decision making (a)

1892 1858 1858 1858 1865 1886

TOTAL PERMANENT

011 SECT

ION 2

SECTION 2HUMAN RESOURCE

DEVELOPMENT

012

2. HUMAN RESOURCE DEVELOPMENT PLAN 2.1. Introduction

The Human Resources Development (HRD) strategy for WMC focuses on talent and performance management mechanisms, in conjunction with a competency-based career development programme and centrally managed graduate, bursary and Learnership programmes for permanent employees. The HRD strategy is focused on the following:• Building and enhancing human capacity and capability to support South32’s vision and strategy• Attracting and retaining key talent by demonstrating long term commitment to employee development• Delivering best in class learning experiences that significantly contribute to the lives of WMC employees.Portable Skills, Literacy and Numeracy training are of further significance in the integrated HRD programme geared towards ensuring effective business operations as well as accredited and transferable skills training amongst the workforce. The requisite implementation monitoring and reporting mechanisms are in place at the mine to facilitate these HRD programmes.

2.2. Skills Development Plan

WMC implements skills development programmes that focus on equipping employees with skills to enhance their progression at the Colliery and the mining industry in general, as well as their development in respect of other sectors of the economy. The objectives for skills development are:• Developing and growing the existing internal talent pool to meet current and future business needs with a strong emphasis on

transformation and redressing past practices;• Establishing a pool of skilled workers that can potentially fulfil the Company’s hard-to-find skills and transformation

requirements; • Allowing new entrants into the labour market to gain relevant work experience; • Improving the quality of life of employees; and• Providing portable and lifelong skills opportunities to improve and enhance employees’ economic independence.

WMC complies with the requirements of the Skills Development Act and will continue to submit the Operation’s Workplace Skills Plan (WSP) annually, as required by the Act. South32 has registered all of its mining operations with the relevant Sector Education and Training Authority (SETA), i.e. the Mining Qualifications Authority (MQA), and undertakes to continue to contribute towards Skills Development Levies.

Key strategic plans within the Skills Development Plan for WMC are outlined in the following sections:• Education and Training, including Adult Basic Education and Training (AET);• Learnerships;• Skills programmes;• Portable skills programmes; and• Hard-to-fill vacancies.

2.2.1. Adult Education and Training

The current literacy rate at WMC is 89% (Ref. Table 6: Form Q), with an identified AET need of a total of eighty-seven (87) employees. The majority of which require level 3 and level 4 AET programmes, a key initiative to ensure lower skilled employees can access future career development opportunities such as artisan and learnership programmes.

WMC will provide their AET programme on a full-time basis, offering AET levels 1 to 4, facilitated by suitably qualified and accredited service providers. The Colliery has committed a total of 3.9 million Rand over the five-year SLP Period to adult education and training and will continue to strive to provide eligible employees access to the relevant AET programmes, through the following mechanisms: • Linking AET to various skills programmes; • Unions as ambassadors; and• In-house recognition for achievements (graduation ceremony).

WMC’s HRD will monitor enrolments in the respective levels of AET monthly and quarterly and continue reporting through existing mechanisms. In addition to monitoring progress, WMC HRD will conduct individual sessions with identified AET candidates (below AET Level 4) to inform them of the benefits of obtaining an AET Level 4 qualification. Candidates opting not to be part of the AET programme will be requested to provide a written submission to HRD management providing reasons for not participating in the programme. Table 4 below outlines the commitment from WMC towards their AET programme.

013

Table 4: Adult Education and Training Undertaking

Undertaking: WMC undertakes to assist in improving the foundations for skills development by increasing the literacy rate through participation in AET. The Company will focus on providing education and training opportunities through AET training from Pre - AET to AET level 4.

Summary Employees at WMC will be assessed on a continuous basis within the development and performance management process to ensure that the minimum entry levels are achieved. Furthermore, AET training will be utilised as one of the mechanisms to achieve the minimum level of entry to other skills development. Once the objectives have been reached as set out, the skills development programme will focus on providing higher training opportunities through the successive NQF levels.

Responsible Person Strategic Action Timeframe

HRD Superintendent Develop a detailed programme to provide AET to those employees who are still eligible for AET.

Annually

HRD Superintendent Develop a detailed programme to increase the number of participants in NQF Level 1 training, and expand the training to higher levels.

Annually

As indicated in Form Q (Table 6), the current AET need at WMC is eighty-seven (87) employees. Form Q will be updated at the end of each reporting cycle of the Colliery and submitted to the DMR. Details of the AET programmes provided for each of the following years, and the beneficiaries thereof, will be included in the Workplace Skills Plans (WSPs), which will be updated and submitted once a year to the MQA and integrated into the SLP. Table 5 below further provides a detailed breakdown of the AET need and annual training targets and budget provision at the colliery. It should be noted however, that WMC has embarked on a process to verify the educational levels of all employees to ensure the details are accurately and comprehensively captured on the HR Database.

Table 5: AET Targets at WMC (FY 2018 to 2022)

AET Level 1 5 0 0 0 0 0 0

AET Level 2 24 2 2 2 2 2 10

AET Level 3 28 6 6 6 6 6 30

AET Level 4 30 6 6 6 6 6 30

Total AET Enrolments

87 14 14 14 14 14 70

Budget: R658 000 R723 800 R789 600 R855 400 R921 200 R3 948 000

014

Table 6: Form Q – Functional Literacy at WMC as at 28 February 2017General Education and Train-ing (GET)

No Schooling 4 1 4 1

Grade 0 / Pre school 0 0

Grade 1/ Sub A 0 0

Grade2/ Sub B 0 0

Grade 3/ Std1/AET 1 18 1 18 1

Grade4/ Std 2 5 5 0

Grade 5/ Std 3/ AET 2 17 1 17 1

Grade 6/ Std 4 10 10 0

Grade 7/Std 5/AET 3 25 25 0

Grade 8/ Std 6 3 1 1 4 1

1 Grade 9 /Std 7/ AET 4 / N1 General Education and Training Certificate / Some National Certificates

95 1 3 30 99 30

Further Education and Train-ing

2 Grade 10/ Std 8/ N2 Some Certificates / Some National Certificates

70 3 1 73 1

3 Grade 11/ Std 9/ N3 Some Certificates / Some National Certificates

118 33 18 1 151 19

4 Grade 12/ Std 10/ N4 Further Education and Training Certificates / National Certificate: Vocational / National Senior Certificate / Some other National Certificates

699 9 2 176 159 2 21 886 182

Higher Education and Train-ing (HET)

5 2 year National Diplo-mas / 1 year Higher Certificates / N4, N5 & N6 National Certificates

93 4 39 26 4 136 30

6 3 year National & Higher Diplomas / Some other 2-3 year Diplomas / Advanced Certificate

43 21 22 5 64 27

7 3 year Degrees / Higher or Advanced Diplomas

33 1 2 25 25 3 61 28

8 4 year Degrees and Honour's Degrees

3 1 3 5 1 7 6

9 Master's degrees 4 1 4 1

10 Doctorates 0 0

TOTAL 1236 15 5 308 291 2 0 35 1564 328

015

WMC has extended their AET programme to the benefit of the local host community and has committed a total budget of 4.7 million rand over the five-year period to avail AET training opportunities to community members. The programme will commence in FY 2019 and a total of eighty (80) training interventions will take place during the SLP period. Table 7 below provides the targets and associated budget for implementation of the community programme.

Table 7: Community AET Targets at WMC (FY 2018 to 2022)

AET Level 1 0 5 5 5 5 20

AET Level 2 0 5 5 5 5 20

AET Level 3 0 5 5 5 5 20

AET Level 4 0 5 5 5 5 20

Total AET Enrolments 0 20 20 20 20 80

Budget: R0 R1 034 000 R1 137 400 R1 251 140 R1 376 254 R4 798 794

Learnerships programmes play a key role in the develop of career progression opportunities for semi-skilled and skilled employees in the mining industry. Section 2.2.2 below outlines the commitments towards the implementation and management of a robust Learnership programme at WMC-.

2.2.2. Learnerships

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. The purpose of the learnership programme is to equip new and future employees with skills to assist them in undertaking their responsibilities more efficiently and may allow their progression into other positions at WMC, when opportunities arise.

The specific Learnership programmes offered will continue to be informed by both the skills requirements of the Colliery (in line with the WSP, Hard-to-Fill Vacancies and the business plan) as well as the forecasted skills scarcity within the mining industry over the next five (5) years (as per the MQA’s Sector Skills Audit). • Candidates for the Learnership programmes will continue to be identified and selected through the agreed recruitment and

selection policy/process of WMC. • Each Learnership programme is a set programme, consisting of a theoretical and a practical component.• WMC will continue to budget annually for the Learnership programmes (Ref Table 9 & 10).• Appropriately trained mentors will be appointed for each learner at WMC.• Systems will be developed and implemented to record and monitor WMC’s compliance in terms of its progress to achieve the

envisaged Learnership targets for annual SLP reporting purposes.• Accreditation to be in place through MQA for all Learnership Programmes.

On successful completion of the Learnership programme, the learners will be placed on a three (3) month probationary period at the Colliery where appropriate vacancies exist. Should vacancies not be available at WMC, other South32 collieries will be approached to determine suitable placement opportunities. As the placement of learners is dependent on vacancies at the operation, it is not possible to guarantee the successful placement and/or promotion of learners on completion of their Learnership programme.

016

Table 8: Learnerships Undertaking

Undertaking: The provision for learnerships within the Colliery is aimed at addressing current and future skills and competency needs in terms of the Career Path structure and Manpower process. WMC undertakes, and will continue to facilitate access to learnerships for identified individuals based on an employment ratio of 80:20 HDSAs to non-HDSAs.

Summary: The objective of the learnerships being offered at WMC is to equip new and future employees with skills to assist them in undertaking their responsibilities more efficiently and which may allow their progression into other positions at the Colliery. The learnership programmes offered at the Colliery are informed by the skills requirements at the Colliery (in line with the WSP and business plan), and the MQA's Sector Skills Audit. Each learner will be allocated a mentor, who will meet with the learner on a regular basis to review progress and provide support with respect to performance issues. As a mechanism to address the objective of increasing the pool of available labour, learners will be recruited, based on a strategy of maintaining a 4:1 ration between artisans and learners.


HRD Superintendent Align the programme with WSP and hard-to-fill vacancies (Form R)

Annually

HRD Superintendent Ensure proper mentors are trained and assigned for Learners, and that the learners receive the necessary exposure for development.

Annually

Tables 9 and 10 below indicates the envisaged enrolment targets and associated annual budgets for the identified Section 18.1 and 18.2 Learnership programmes for WMC for the next five (5) years. The established targets have been based on the current pass rates of the programme and are cognisant of the lengths of the training programmes.

Table 9: Projected Section 18.1 Learnership Targets for WMC (FY 2018 to 2022)

Lear

ners

hip

Prog

ram

me

Leng

th o

f Pr

ogra

mm

e

Cur

rent

C

andi

date

s

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

New

Tar

get

Enro

lmen

t

Pass

Out

New

Tar

get

Enro

lmen

t

Con

tinua

tion

Pass

Out

New

Tar

get

Enro

lmen

t

Con

tinua

tion

Pass

Out

New

Tar

get

Enro

lmen

t

Con

tinua

tion

Pass

Out

New

Tar

get

Enro

lmen

t

Con

tinua

tion

Pass

Out

Auto Electri-

cal3 years 2 1 0 1 3 2 1 4 1 1 1 1 1 1 1

Diesel

Mechanic3 years 1 3 0 3 4 1 3 7 3 3 3 3 3 3 3

Electrical 3 years 2 2 0 2 4 2 2 6 2 2 2 2 2 2 2

Fitter 3 years 2 2 0 2 4 2 2 6 2 2 2 2 2 2 2

Instrumenta-

tion3 years 0 1 0 1 1 0 1 2 1 1 1 1 1 1 1

Millwright 3 years 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0

Plater/Welder 3 years 0 1 0 1 1 0 1 2 1 2 1 1 2 2 1

Rigger 3 years 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0

Total 7 10 0 10 17 7 10 27 10 13 10 10 13 13 10

Total Learnerships per

Annum:7 17 27 30 33 36

Budget R 10 510 450 R 15 476 192 R 14 840 431 R 22 333 022 R 15 683 860 R 19 963 807

017

The Section 18.2 Learnerships to be offered to the host community are depicted in Table 10 to follow.

Table 10: Projected Section 18.2 Learnership Targets for WMC (FY 2018 to 2022)

Lear

ners

hip

Pro

gram

me

Leng

th o

f Pro

gram

me

Cur

rent

Can

dida

tes

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

New

Tar

get

Enr

olm

ent

Pas

s O

ut

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pas

s O

ut

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pas

s O

ut

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pas

s O

ut

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pas

s O

ut

Auto Electrical 3

years2 0 0 0 2 2 1 0 0 1 1 0 1 1 1

Diesel Me-

chanic

3

years9 6 0 4 15 9 3 10 6 3 7 4 3 3 3

Electrical 3

years2 5 0 1 7 2 2 6 5 2 2 1 2 2 2

Fitter 3

years7 7 0 1 14 7 3 8 7 3 4 1 3 3 3

Instrumenta-

tion3

years1 2 0 1 3 1 0 3 2 0 1 1 0 0 0

Millwright 3

years0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Plater/Welder 3

years2 4 0 1 6 2 2 5 4 2 3 1 2 2 2

Rigger 3

years1 2 0 0 3 1 1 2 2 1 1 0 1 1 1

Total 24 26 0 8 50 24 12 34 26 12 19 8 12 12 12

Total Learnerships

per Annum:

24 50 58 46 32 36

Budget R 13 579 994,30 R 26 184 866,89 R 31 196 608,18 R 27 531 502,54 R 20 856 946,48 R 17 900 219,23

2.2.3. Core Business Skills ProgrammeCore Business Skills Programmes play an essential part in equipping all employees with the skills and required competencies to successfully execute their employment responsibilities. The objective of Core Business Skills Training is to provide the required knowledge and skills to enable employees to successfully and safely perform their roles. The Colliery will continuously align its core business skills training programme to the requirements of all aspects of the operation. WMC core business skills training encompasses both underground and opencast operator training.

Table 11: Core Business Skills Programme Undertaking

Undertaking: Core Business Skills Training is a core element of ensuring that employees are productive, capable and competent in the delivery of their daily duties. WMC will undertake to conduct a training needs analysis to ensure the alignment of core business skills to the competency, developmental areas as well as core mining safety needs of the job to its employees.

Summary: During the recruitment of the workforce individual-specific training is planned based on the outcomes of the skills analysis. The core business skills training that will be provided by WMC will be aligned to the needs analysis as well as support the inherent business production needs.


HRD Superintendent An on-going assessment of employees to be done to identify where gaps remain and continuous evaluation against business needs and development plans.

Annually

HRD Superintendent Ensure that Skills Matrixes are align to roles and career paths. Link PDP`s to career path as well as Skills Matrix

Annually

018

Table 12 below outlines the targets and associated budget for each financial year (FY 2018 to 2022). Table 13 provides the targets and budget for the implementation of the Artisan programme at the Colliery.

Table 12: Projected Core Technical and Non-Technical Business Skills Training Targets at WMC Operation (FY 2018 to 2022)

Training Course Target Enrolment FY 2018

Target Enrolment FY 2019




Earth Moving Equipment (EME) Operators

1336 1336 1336 1336 1336

Mining Competent A 10 10 10 10 10

Blasting Certificate (Rock Breaking)

12 12 12 12 12

Blasting Assistant 10 10 10 10 10

Health and Safety Rep Training

30 30 30 30 30

First Aid Training 164 164 164 164 164

Code 14 Drivers License 4 4 4 4 4

Loco Driver Training (Certification) (Freight Rail)

7 7 7 7 7

Basic Fire Fighting 25 25 25 25 25

Machine Operator Skills Programme

35 35 35 35 35

Basic Coal Preparation 12 12 12 12 12

Advanced Coal Preparation

4 4 4 4 4

Mining Operations Supervisory Level 4

3 3 3 3 3

Strata Control Opencast Level 2

12 12 12 12 12

Total 1664 1664 1664 1664 1664

Budget: R 2 707 371 R 2 978 108 R 3 275 918 R 3 603 510 R 3 963 861

Table 13: Projected Artisan Training Targets for WMC (FY 2018 to 2022)

Slinging and lifting practices

25 25 25 25 20 120

Lifting and moving Practices

8 8 8 8 8 40

Medium Voltage Certification

10 10 10 10 10 50

Medium Voltage Re Certification

10 10 10 10 10 50

Overhead Crane Certification

4 4 4 4 4 20

Overhead Crane Re Certification

8 8 8 8 10 42

Truck Mounted crane certification

4 4 4 4 4 20

Truck Mounted Re certification

8 8 8 8 10 42

019

Forklift Counterbalance certification

6 6 6 6 6 30

Forklift Counterbalance Re certification

9 9 9 9 9 45

Manito Telescopic Boom Handler Novice

8 7 7 7 7 36

Manito Telescopic Boom Handler Re Certification

8 8 8 8 9 41

Arial Platform Certification Novice

3 3 3 3 3 15

Arial Platform Certification Re certification

5 5 5 5 5 25

Fall Arrest Technician Level 2

20 10 10 9 9 58

Health and Safety Rep Training

10 4 4 4 4 26

Starting, Stopping and Driving Earthmoving Equipment

9 9 10 10 10 48

6060 Mechanical Training 2 2 2 1 1 8

6060 Electrical Training 2 2 2 1 1 8

CAT Basics 2 2 2 2 2 10

CAT Drive Train 5 5 5 5 5 25

CAT Electrical Systems 3 3 3 3 3 15

CAT Electronic Systems 4 4 4 4 4 20

CAT Electronic Technician 1 1 1 1 1 5

CAT Intermediate Fuel Systems

6 6 6 6 6 30

CAT Intermediate Hydraulics

4 4 4 4 4 20

CAT Preventative Maintenance

5 5 5 5 5 25

PC CAT 6060 - Shovels Assessment

0 0 0 0 0 0

Siemens Relay Training 2 2 2 2 2 10

Wi-Fi Basic Training 2 1 1 1 1 6

Advanced Gas Safety 7 7 7 8 8 37

CASCAM 4 4 4 4 3 19

Basic Welding 1 1 1 1 0 4

Coaching 15 7 7 7 8 44

Mentoring 7 7 7 7 8 36

Man Truck Service Training 4 4 4 1 0 13

Confined Spaces 20 10 10 10 10 60

Electric Over Hydraulic Drill Training

15 5 5 5 5 35

Rig Control Systems Training

2 2 2 2 2 10

Chain Fitment and Tension 4 4 4 3 3 18

Lincoln Training 2 2 2 2 2 10

020

PLC Training 3 3 2 2 2 12

Earthing and Lighting Training

1 1 1 1 0 4

Oil Analysis Training 4 3 3 3 3 16

Total 282 235 235 229 227 1208

Budget R2 616 517 R2 878 168 R3 165 985 R3 482 584 R3 830 842 R15 974 095

2.2.4. Portable Skills Training

WMC intends to offer access to non-mining related skills development programmes for those individuals who may be affected by downscaling and retrenchment. Access to the potential training programmes will be provided six (6) months prior to any pending retrenchment exercise at WMC for the remaining life of the operation and will be communicated to affected employees through the Future Forum.

Table 14: Portable Skills Undertaking

Undertaking: WMC is dedicated to providing opportunities in training and development, thereby increasing their marketability in the open labour marketing in the possible event of retrenchment and mine closure. Furthermore, the mine is committed, not only to equip and prepare employees for the open labour market, but simultaneously providing the opportunity to obtain NQF credits towards a National Qualification.

Summary: Provision of portable skills to employees during the life of the mine in accordance with the skills development plans and workforce planning particularly non-mining related skills. Ramp-up of portable skills training in the last two (2) years of life of mine, or six (6) months prior to when downscaling becomes inevitable. Such portable skills must have an impact beyond the company and mining industry and provide for sustained employability and will, wherever feasible:(a) Build on employees’ existing skills and be recognised nationally;(b) Enable employees to manage their careers by addressing identified skills gaps; and(c) Supplement existing skills with business-related training where appropriate.


HRD Superintendent A Skills Development Forum has been established and will focus on overseeing the implementation of the skills development programmes aligned to the Human Resource Development programme (HRDP), which will be reviewed on a monthly and annual basis.

Ongoing

HRD Superintendent Continue to publicise portable skills training programmes amongst employees.

Ongoing

HRD Superintendent Report and monitor employees that may be close to retirement and target for portable skills non-mining.

Ongoing

Table 15 offers an overview of Portable Skills initiatives the mine envisages as part of their training and development initiatives. Table 16 reflects the portable skills training programme for the skills development within the host community.

021

Table 15: Portable Skills Training for WMC (FY 2018 to 2022)Wonderware 10 2 2 2 2 18

Process Automation (Radiation Safety) 5 5 5 5 5 25

Slinging and lifting practices 30 30 30 30 30 150

Lifting and moving Practices 5 5 5 5 5 25

Medium Voltage Certification 4 4 4 4 4 20

Medium Voltage Re Certification 5 4 4 4 4 21

Overhead Crane Certification 15 15 15 15 15 75

Overhead Crane Re Certification 15 15 15 15 15 75

Truck Mounted crane certification 3 3 3 3 3 15

Truck Mounted Re certification 3 3 3 3 3 15

Forklift Counterbalance certification 7 7 7 7 7 35

Forklift Counterbalance Re certification

7 7 7 7 7 35

Manito Telescopic Boom Handler Novice

5 5 5 5 5 25

Manito Telescopic Boom Handler Re Certification

5 5 5 5 5 25

Arial Platform Certification Novice 5 5 5 5 5 25

Arial Platform Certification Re certification

10 10 10 10 10 50

Gas Safety International: Lancing for Supervisors

3 3 3 3 3 15

Gas Safety International for Supervisors

3 3 3 3 3 15

Fall Arrest technician Level 2 30 30 30 30 30 150

Fall Arrest Supervisor 15 15 15 15 15 75

Health and Safety Rep Training 25 25 25 25 25 125

Starting, Stopping and Driving Earthmoving Equipment

10 10 10 10 10 50

6060 Mechanical Training 2 2 2 2 2 10

6060 Electrical Training 2 2 2 2 2 10

Siemens Relay Training 1 1 1 1 1 5

Wi-Fi Basic Training 2 2 2 2 2 10

Advanced Gas Safety 1 1 1 1 1 5

Gas Safety Awareness 10 10 10 10 10 50

CASCAM 5 5 5 5 5 25

Basic Welding 3 3 3 3 3 15

Coaching 40 5 5 5 5 60

Mentoring 25 5 5 5 5 45

Man Truck Service Training 1 1 1 1 1 5

Confined Spaces 15 15 15 15 15 75

Confined Spaces for Supervisors 5 5 5 5 5 25

Chain Fitment and Tension 3 3 3 3 3 15

Lincoln Training 2 2 2 2 2 10

PLC Training 2 2 2 2 2 10

Earthing and Lighting Training 2 2 2 2 2 10

Oil Analysis Training 3 3 3 3 3 15

Mining: Earth Moving Equipment Theory Training

20 20 20 20 20 100

Mining: Earth Moving Equipment Simulator Training

20 20 20 20 20 100

Mining: Earth Moving Equipment Practical Training

20 20 20 20 20 100

Total 404 340 340 340 340 1764

Budget R1 088 202 R1 197 022 R1 316 724 R1 448 396 R1 593 236 R6 643 579

022

Table 16: Community Portable Skills Training for WMC (FY 2018 to 2022)

Training Courses Target Enrolment FY 2018





Total (FY 2018 to 2022)

Driver Training 0 5 5 5 5 20

Machine Training 15 5 5 5 5 35

Blasting Assistant 15 5 5 5 5 35

Total 30 15 15 15 15 90

Budget R500 000 R25 000 R25 000 R25 000 R25 000 R100 000

2.2.5. Hard to Fill Vacancies

Table 17 presents the Colliery’s current skills shortages affecting the operation’s recruitment process. Hard-to-fill vacancies will be addressed in part by the Colliery; through the implementation of skills development programmes and learnerships as described in the sections above. These programmes will attempt to build capacity in the areas in which it is needed and will be based on the WSP and Skills Development Plan. The placement of individuals in hard to fill vacancies may need to be sourced from other mining sectors and areas.

Table 17: Form R- Hard to fill vacancies

Occupational level Job title or vacancy

Main reason for inability to fill the vacancy

Intervention

Top Management

Senior Management

Professionally qualified and experienced specialist and mid management

Superintendent Rock Engineer

Due to a shortage of skills in the Coal Mining Industry

Talent Management & Succession Planning

Skilled technical and academically qualified workers, junior management, supervisors

Instrumentation Technician Diesel Mechanic

It’s a scare skill in the market and expensive

Increase number of Instrumentation learners and include scare skill allowance for Instrumentation

Semi-skilled and discretionary decision making

Controller Operator

Candidates with Lump Ore Beneficiation (Coal Preparation) required, internal plant attendant currently don’t have minimum requirement to be trained.

Process leaners required to be developed further

2.2.6. Career Progression Plan

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 through defining competencies such as skills and experience required by the various job categories. The Colliery’s training and development programmes then become a mechanism through which the required competencies are developed. The movement could either be to a position on the same level or a position on a higher level. The path of career progression could also be applied during selection and recruitment, training and development, as well as talent management. Some of the performance requirements of this standard are that:• A formal review of the talent pool occurs every six (6) months at the Colliery, HRD Central and South32 talent reviews;• Succession plans are in place for all key roles, and nominated successors are rated based on readiness and suitability; and• Talent pipeline gaps are identified and plans are in place to address the shortfalls.

Through this process, individuals with talent and potential are identified, verified and discussed at departmental and operational talent forums at the Colliery. The information is forwarded to regional talent forums for different functional areas, where individuals with emerging talent are discussed in terms of development plans and possible transfers within South32. The performance management system currently in place at WMC, whereby employees are assessed against specific performance measures, forms an integral part of the talent management process.

023

Table 18: Career Progression Undertaking

Undertaking: WMC undertakes to actively promote career progression and succession opportunities among its employees and refine the Career Progression Programme. A career management system has been implemented and is in line with the South32 Career Management Programme. This programme forms the basis on which on-going career path development will continue for relevant employees at the Colliery. The Colliery's training and development programme is the mechanism through which the required competencies are developed and results either into positions on the same level or a position on a higher level. Furthermore, career management committees have been established and identify and monitor the Colliery's talent pool to facilitate appropriate skills development for employees in order to meet the operations business plan as well as to ensure individuals at all occupational levels are developed in respect of their skills.

Summary: WMC has further established a talent management system to facilitate performance management, whereby employees are assessed against specific performance measures. The Career Progression Programmes will be linked to the Skills Development Programme, learnerships, internships, bursaries, mentorship programme and Employment Equity Programme. Mechanisms will be implemented for individuals to have the opportunity to progress from lower skilled levels into higher skilled working levels including management levels, should job opportunities arise and positions become vacant. The career progression plan will ensure that the qualifications, aspirations, developmental needs, and potential capabilities of all employees are accounted for in line with the needs of the Company's business needs. WMC, will furthermore, ensure that their employees are mentored according to their career path requirements on a regular basis in order to facilitate progression within the Company.


HR Department Skill shortages and employment equity needs to be aligned to fast tracking plans for succession of HDSAs and identified women with potential from the established talent pools.

Continuous

HR Department South32 has developed a Leadership Development programme for employees on Paterson D level and above which will be rolled out over the five-year period

Continuous

Table 19: Employees with Individual Development Plans

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Employee Categories

No.

of

Em

ploy

ees

with

IDP

% w

ith ID

P

No.

of

Em

ploy

ees

with

IDP

% w

ith ID

P

No.

of

Em

ploy

ees

with

IDP

% w

ith ID

P

No.

of

Em

ploy

ees

with

IDP

% w

ith ID

P

No.

of

Em

ploy

ees

with

IDP

% w

ith ID

P

Paterson E Level 3 27% 3 27% 3 27% 3 27% 3 27%

Paterson D Level 80 26% 80 26% 80 26% 80 26% 80 26%

Paterson C Level 200 24% 200 24% 200 24% 200 24% 200 24%

Paterson B Level 218 30% 218 30% 218 29% 218 30% 218 29%

Total 501 27% 501 27% 501 27% 501 27% 501 27%

Section 2.2.7 provides the Mentorship programme implementation actions and associated targets.

2.2.7. Mentorship Plan

WMC defines mentoring as the transfer of experience and attributes from a mentor (an experienced, more senior employee either from WMC or from another operation) to a protégé (junior employee with less experience in the relevant field of expertise) with the intention of improving the competencies of the protégé to meet the current and future job requirements. Mentoring is a term that describes a relationship and a process to share experience and strategic advice that leads to greater capacity and performance. To summarise, mentors are:• Advisers, people with career experience willing to share their knowledge;• Supporters, people who give emotional and moral encouragement; • Tutors, people who give specific feedback on one’s performance; • Sponsors, sources of information about and aid in obtaining opportunities; • Models, of identity of the kind of person one aspires to be as leader or an expert.

024

Mentorship is a key process and tool in support of people development, HRD planning, performance management and employment equity. 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. A mentorship programme is in essence a process to foster a continuous mentorship relationship between the mentor and the mentee. The objective is to ensure that the maximum potential of the mentee is unlocked for the mutual benefit to the mentee, mentor and the Colliery.

Table 20: Mentorship Undertaking

Undertaking: WMC will actively promote mentorship opportunities among its current and future employees and will use financial year 2018 to refine and formalise the Colliery’s Mentorship Programme linked to the Career Progression Programme. The Mentorship programme will focus on mentoring and coaching HDSAs and women into more specialised technical and managerial positions, in line with the skills and employment equity requirements of WMC.

Summary: WMC will continue to ensure that all permanent employees at supervisory and management levels have a CDP with a target of achieving 100% compliance.


HRD Superintendent Formalise mentorship programme and align it with the Career Progression Programme, Skills Development Programme, Internship & Bursary Programme and Employment Equity Programme. Align with the skills need and employment equity need of Wolvekrans Middelburg Complex.

Continuous

HRD Superintendent Determine internal mentorship need and individuals with potential to be earmarked as mentors. Assess line and senior management aptitude to be mentors for internal mentorships programme.

Continuous

All graduates / interns and learners are directly supported by a targeted mentorship programme. Each individual in this programme is allocated a mentor from South32’s broader Management Team (i.e. Patterson D and E Levels). These mentors are pivotal and mandatory in both of these programmes and are at a mature state of maintenance and implementation (i.e. all current graduates and learners have designated, active mentors).

Table 21: Mentorship Target Table:

2018 2019 2020 2021 2022Learnerships 18.1 17 27 30 33 36

Learnership 18.2 50 58 46 32 36

Bursaries (Internal) 16 30 30 30 12

Bursaries (External) 11 11 11 11 11

Internships (Internal) 13 17 22 4 3

Internships (External) 2 3 10 0 0

Total: 109 146 149 110 98

2.2.8. Bursary Plan and Graduate Development Programme (Internship)

WMC is well aware of the need not only to assist its own employees with development opportunities, but also to provide opportunities for members of the local community and surrounding areas to access tertiary education opportunities (bursaries) and experiential work opportunities (internships). The bursary and internship plan links in with developing individuals to supply the operation with its future skill requirements. Apart from business related qualifications, the Company is also aware of the need to develop qualified individuals from communities, affected by the operation, in other sectors of the economy. WMC will equip its employees with skills which are portable to other sectors of the economy upon downscaling or closure.

WMC’s internship and bursary plan will continue to focus on equipping people from Mpumalanga in particular and rest of South Africa in general, who have an interest in the mining industry, with the necessary skills, aptitude and abilities. In order to acquire a pool of high performing learners in Mpumalanga and to develop critical skills in the province, South32 will actively promote the bursary opportunities available to learners. The target is to maintain a bursary portfolio with a 70:30 bias towards HDSAs. This percentage may vary based on the quality of the pool available.

2.2.8.1. Full Study Bursaries:

Bursaries are available to students (even if they have no current relation to the company) for full time studies at South African Universities or Universities of Technology in mining disciplines. The adjudication of bursaries is based on the achievements of applicants and bursaries are open for studies in disciplines offered at a South African University or University of Technology. Further to the external bursary programme, South32 offers ‘Child of Employee” bursaries whereby financial aid is provided to employees for their children’s studies and no work obligation is required to be fulfilled by the student. The value of a bursary is determined annually by South32’s management team.

025

2.2.8.2. Study Assistance:

Financial Study Assistance (Study Loan) is also available to WMC employees in order to encourage the workforce to obtain better qualifications in fields of study that would benefit the operation. This financial assistance is managed by the operation.

Table 22: Bursary Plan Undertaking

Undertaking: The bursary plan is linked to development of individuals in order to supply the operation with the required skilled people. Furthermore, the Company is aware of the need to develop qualified individuals from the local community, affected by the Colliery, in other sectors of the economy. Furthermore, the Colliery commits to continue to provide tertiary education bursaries to qualifying learners to pursue courses in various fields of study, whether at University or University of Technology, including dependents of employees.

Summary: WMC will equip its employees with skills which are portable to other sectors of the economy upon downscaling and closure. South32 has established a Central Bursary Scheme that provides for training of individuals in disciplines such as, Mining Engineering, Electrical Engineering, Mechanical Engineering, Industrial Engineering, Metallurgy, Mine Survey, Geology and Finance. The bursary scheme furthermore provides bursaries to students for full-time studies at selected South African Tertiary Institutions. The bursaries are open to all Grade 12 scholars as well as students who are already studying.


HRD Superintendent Review Study assistance programme in line with the business objectives as well as community programmes

Annually

HRD Superintendent Inform the business of Industry trends and also align with the SETA Sector Skills Plan

Annually

Table 23: Targets for Child of Employee Bursary Programmes at WMC (FY 2018 to 2022)

Bur

sary

Prog

ram

me

Leng

th o

f

Prog

ram

me

Cur

rent

Can

dida

tes FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pass

Out

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pass

Out

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pass

Out

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pass

Out

New

Tar

get

Enr

olm

ent

Con

tinua

tion

Pass

Out

Chemical

Engineer

(Min Proc)

4

years 0 0 0 1 1 0 0 2 0 0 2 1 1 1 1

Electric and

Electronic

Engineer

4

years1 0 0 1 1 1 0 0 2 0 0 2 1 1 1 1

Geology 4

years 0 0 0 2 3 0 0 5 0 0 5 3 2 2 2

Industrial

Engineer

4

years 0 0 0 1 1 0 0 2 0 0 2 1 1 1 1

Mechanical

Engineer

4

years 0 0 0 4 4 0 0 8 0 0 8 4 4 4 4

Metallurgy 4

years 0 0 0 2 2 0 0 4 0 0 4 2 2 2 2

Mining En-

gineering

4

years 0 0 0 3 4 0 0 7 0 0 7 4 3 3 3

Total 1 0 0 1 14 16 0 0 30 0 0 30 16 14 14 14

Total Bursaries

at the Mine1 30 30 30 28

Budget R 26 000 R 1 404 489 R 3 363 501 R 3 699 851 R 4 069 836 R 4 112 711

Table 24: Targets for External Bursary Programmes at WMC (FY 2018 to 2022)

External Bursars Current FY 2019 FY 2020 FY 2021 FY 2022

External Bursars 14 5 5 5 5

Total 14 5 5 5 5

Budget: R 1 400 000 R 500 000 R 600 000 R 650 000 R 700 000

026

Table 25: Summary of Employee Study Assistance Targets at WMC (FY 2018 to 2022)

School Programme Training Course

Target EnrolmentFY 2018





Postgraduate Diploma in Management Practice

1 1 1 1 1

Btech Mining Engineering

1 1 1 1 1

Btech Safety Management

1 1 1 1 1

Intro to Mining Engineering

1 1 1 1 1

MBA 2 2 2 2 2

ND Engineer Mech. 1 1 1 1 1

ND Mine Surveying 1 1 1 1 1

ND Safety Management 1 1 1 1 1

Postgraduate Diploma in Management

1 1 1 1 1

Post Graduate Diploma in Business Administration

1 1 1 1 1

Programme in Maintenance Management

3 3 3 3 3

Total: 14 14 14 14 14

Budget: R 607 133 R 667 847 R 731 236 R 797 568 R 867 451

Section 2.2.9 to follow provides the proposed implementation of the Internship Plan (Graduate Development Programme).

2.2.9. Internship and Graduate Development Programme:

South32 offers graduate programmes in various disciplines to diplomats and graduates with the focus on the development and training of employees in the technical disciplines. Graduate programmes are currently offered in the following disciplines: Mining (Graduates and Diplomats); Engineering (Graduates and Diplomats); Finance; Human Resources; and Geology. A Central Training Account (CTA) has been established to provide for the funding of training and development of the graduates. WMC participates and contributes financially to the CTA. On completion of their studies, the bursars participate in a two-year graduate programme through the CTA to obtain practical work experience. Within their structured programmes, graduates will undergo specific technical and leadership training to facilitate the acquisition of a professional qualification.

Table 26: Feedback on Internship and Graduate Development Programme Undertaking

Undertaking: The internship plan is linked to development of individuals in order to supply the operation with the required skilled people. Furthermore, the Company is also aware of the need to develop qualified individuals from the local community, affected by the Operation, in other sectors of the economy.

Summary: Internships are offered in various disciplines to diplomats and graduates with the focus on development and training of employees in the technical disciplines such as Mining, Finance, Human Resources (HR) and Geology. Furthermore, on completion of studies the bursars are given a two (2) year internship in order for them to gain the practical work experience. Within a structured programme graduates undergo specific technical and leadership training to facilitate the acquisition of a professional qualification. All CTA participants are incorporated into the Career Management Committees and are mentored at the operation through their training.


HRD Superintendent Develop plans to target students at the surrounding Universities of technology.

Annually

HRD Superintendent Practical experience students are monitored and evaluations are done quarterly to track progress

Annually

027

Tables 27 and 28 below provides the targets in respect of the Internal to Mining Internship as well as the External to Mining Internship programmes respectively.

Table 27: Mining Related Internship/Graduate Development Programme Targets at WMC (FY 2018 to 2022)

Internships Programmes

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total (FY 2018 to 2022)

Engineering 2 3 6 0 0 11

Industrial Engineering 2 0 1 0 0 3

Mining 4 5 8 2 1 20

Geology 2 1 1 0 0 4

Metallurgy 2 4 5 0 0 11

Survey 0 2 1 2 2 7

Financial 1 2 0 0 0 3

Total Internal Internships:

13 17 22 4 3 59

Budget: R346 955 R499 082 R710 458 R142 092 R117 226 R1 815 812

1. Table 28: External to Mining Internship/Graduate Development Programme Targets at WMC (FY 2018 to 2022)

Internships Programmes FY 2018

FY 2019

FY 2020 FY 2021

FY 2022 Total (FY 2018 to 2022)

Engineering 0 2 0 0 0 2

Environmental 0 0 1 0 0 1

Occupational Hygiene 0 0 1 0 0 1

Safety 0 0 1 0 0 1

Human Resources 1 0 1 0 0 2

Metallurgy 0 0 1 0 0 1

Financial 0 0 2 0 0 2

Rock Engineering 0 0 2 0 0 2

Community 1 0 1 0 0 2

Supply 0 1 0 0 0 1

Total External Internships: 2 3 10 0 0 15

Budget: R53 378 R88 073 R322 935 R0 R0 R464 386

2.2.10. Employment Equity Plan

WMC fully subscribes to the principles of the Mining Charter, and strives to achieve more than the minimum requirements. The Colliery believes that Employment Equity is an integral part of building an effective and representative workforce and to ensuring equality for all employees. The Colliery has therefore developed and implemented an Employment Equity (EE) Policy to ensure that HDSA employees, especially women, are developed and targets are met. Particular effort will be directed at identifying HDSAs with talent, and providing accelerated training and development initiatives to assist their progression, in order to comply with the provisions of the Employment Equity Act (Act No. 55 of 1998).

South32 will focus on the following strategies to achieve the objectives of EE Legislation:1. Effective management of Diverse employees;2. Create an environment that will accommodate all people from designated groups; and3. Recruit, train and retain people from designated groups.

028

Table 29: Employment Equity Undertaking

Undertaking: The mine is committed to the strategic objectives of the Employment Equity Act that include having individuals from previously disadvantaged groups (including women) represented in all positions of skills, responsibility and at all levels within the next five- (5) year period.

Summary: WMC will employ a strategy of:a) Recruiting from the local community; andb) Developing recruits via the career progression path and skills development programmes to ensure a skilled and competent workforce. Furthermore, WMC will particularly focus on identifying HDSAs with talent, and providing accelerated training and development initiatives to assist their progression.


HR Manager Focus will be placed on attracting and retaining HDSAs including women and nurturing talent to supplement the workforce complement and to plan for succes-sion

Continuous

HR Manager Targeting the recruitment of HDSAs and Women in Mining Positions is a specific focus of the workforce plan.

Continuous

HR Manager Mining-related occupations will be specifically identified in the workforce plan and strategies and targets identified to support the inclusion of women into these occupations.

Annually

Table 30 to follow provides the DMR prescribed Form S detailing the employment equity status of WMC as at 28 February 2017.

Table 30: Form S: Employment Equity Statistics at WMC as at 28 February 2017

Occupational Level Non-Designated Designated Total

Foreign

Whi

te M

ales

Male Female

Fem

ale

Mal

e

Afr

ican

Col

oure

d

Indi

an

Afr

ican

Col

oure

d

Indi

an

Whi

te

Top management (F) 0 0 0 0 0 0 0 0 0 0 0

Senior management (E) 0 0 7 4 0 0 2 0 0 0 13

Professionally qualified and experienced specialists and middle management (D)

0 0 96 123 4 3 35 1 0 8 270

Skilled technical and aca-demically qualified work-ers, junior management, supervisors, foremen and superintendents (C)

0 8 202 495 11 2 93 0 0 23 834

Semi-skilled and discretion-ary decisions making (B)

0 7 18 590 0 0 155 1 0 4 775

Unskilled and defined deci-sion making (A)

0 0 0 0 0 0 0 0 0 0 0

Total Permanent 0 15 323 1212 15 5 285 2 0 35 1892

2.2.11 Employment Equity Strategies Applied at WMCa) Capacity Building (Talent Pool Development)South32 has developed a leadership development programme as part of their talent pool management process. A total of twelve (12) employees per annum will be placed in the leadership development programme at WMC at a total cost of 2,4 million rand a year. This talent pool will be constantly enlarged with further suitable candidates, and also refined, as candidates become successful in various progression programmes. b) Fast TrackingFast tracking the career progression of those employees, especially from designated groups, identified as having significant potential and aspiration.2.2.12. Participation of Historically Disadvantaged South AfricansThe Colliery has achieved its employment equity targets with 46% HDSA’s in Paterson E, 64% in Paterson D level and 75% in Paterson C level. Women are further also represented across the board with the colliery looking to improve the overall representation from 15% to 17% overall with the highest percentage improvement aimed for Senior management (from 15% - 18%). For further details on gender diversity at the mine, refer to section 2.2.13. The annual targets for HDSAs in Management for the next five (5) years are reflected in Table 32 below.

029

Progress against the EE plans will be monitored through the Employment Equity Forum (EE Forum) and reported on annually to the DMR. Furthermore, the Colliery will update Form S (Employment Equity Statistics) for inclusion within the Annual SLP Report. The aim of improving the level of HDSA representation within management and within the Colliery is considered vital within in WMC’s recruitment procedure and will remain a key focus into the future. The associated career management systems and succession planning mechanisms outlined in previous sections play a key role in ensuring the accelerated development of HDSAs into management.

Table 31: Development of HDSA’s into Management

Undertaking: The Colliery undertakes to ensure that the appropriate resources are made available and effectively utilised to achieve the targets of 40% HDSAs in Management (both Junior and Senior levels), and 10% participation of women in mining- related occupations at WMC.

Guidelines: The progress against these plans will be monitored through the Employment Equity Forum (EE Forum) and reported on annually to the DMR. The Aim of improving the level of HDSA representation within management and within the Colliery is considered vital within WMC`s recruitment procedure and will remain a key focus into the future.

Responsible Person Strategic Plan TimeframeHR Manager Focus will be placed on attracting and retaining HDSAs including women

and nurturing talent to supplement the workforce complement and to plan for succession.

Continuous

HR Manager Targeting the recruitment of HDSAs and Women in Mining Positions is a specific focus of the workforce plan.

Continuous

HR Manager Recruitment targets for HDSAs will be specifically aimed at developing and promoting such employees into management positions as and when these opportunities arise.

Continuous

Table 32 to follow provides the targets set for HDSAs in Management positions at WMC for the next five (5) years.

Table 32: HDSAs in Management Targets for WMC (FY 2018 to 2022)

Occupational Level

Cur

rent

To

tal

Labo

ur

Cur

rent

H

DSA

Tota

l

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

HD

SAs

Tota

l

HD

SAs

Tota

l

HD

SAs

Tota

l

HD

SAs

Tota

l

HD

SAs

Top management (F) 0 0 N/A 0 0 N/A 0 0 N/A 0 0 N/A 0 0 N/A 0 0N/A

Senior management (E) 13 6 46% 11 6 55% 11 6 55% 11 6 55% 11 6 55% 11 6 55%


270 174 64% 303 194 64% 303 194 64% 303 194 64% 303 194 64% 303 194

64%

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

834 624 75% 823 624 76% 823 624 76% 823 624 76% 825 624 76% 831 628

76%

Total: 1117 804 72% 1137 824 72% 1137 824 72% 1137 824 72% 1139 824 72% 1145 828 72%

2.2.13. Women at the MineTo address the historical issues of South Africa, which resulted in the majority of South Africans being excluded from participating in the mainstream economy, especially women, WMC has developed a gender equality policy and plan to ensure that women are represented in positions that traditionally have been considered male only, i.e. to ensure that women are employed throughout various positions on the Colliery.

030

Table 33: Women at the Mine

Undertaking: WMC undertakes to develop a gender equality policy and plan to ensure that women are represented in positions that traditionally have been considered male only, i.e. to ensure that women are employed throughout various positions at the Colliery.

Summary: The Colliery has classified certain occupations to be in core mining and will design programmes in order to recruit and retain women in these occupations. WMC will put direct interventions in place to increase the participation of Black women in managerial, professional and core mining related positions. These women will be selected from the surrounding and labour sending communities as a first preferential step. If this is not successful, the spatial distribution will be extended outwards to NDM, to Mpumalanga and as a last resort to the rest of South Africa. WMC will encourage those close to retirement by offering early retirement and severance packages in orders to create vacancies for suitably qualified women.

Responsible Person Strategic Action Timeframes

HR Manager Evaluated and assess WMC’s approach to empowering women in mining and management positions in compliance with the MPRDA and the Mining Charter

HR Manager Measures to be addressed and implemented with regards to issues/obstacles preventing the successful integration and retention of women in core mining positions.

Continuous

HR Manager WMC’s internal talent pool of employees for potential candidates to be assessed, in order to expedite the process of promoting HDSAs into management positions, based on competence and commitment, in line with the career progression and skills development plan.

Continuous

HR Manager The WIM implementation programmes to be monitored on an on-going basis and should be aligned to the EE plan.

Continuous

As indicated above, WMC will aim to achieve 17% women employed in mining related occupations. Table 34 below provides the targets set for WMC to achieve annually from financial year 2018.

Table 34: Targets for Participation of Women in Mining at WMC (FY 2018 to 2022)

Occ

upat

iona

l Lev

el

Cur

rent

Lab

our

Cur

rent

Wom

en

Cur

rent

Wom

en

2018 2019 2020 2021 2022

Tota

l

Wom

en

Tota

l

Wom

en

Tota

l

Wom

en

Tota

l

Wom

en

Tota

l

Wom

enTop management (F)

0 0 0 0 0 0 0 0 0

Senior management (E)

13 2 15% 11 2 18% 11 2 18% 11 2 18% 11 2 18% 11 2 18%


270 44 16% 303 44 15% 303 44 15% 303 44 15% 303 44 15% 303 44 15%

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

834 116 14% 823 120 15% 825 120 15% 823 120 15% 825 120 15% 831 120 14%

Semi-skilled and discretionary decisions making (B)

775 160 21% 721 145 20% 726 145 20% 721 145 20% 726 145 20% 741 145 20%

Unskilled and defined decision making (A)

0

Total: 1892 322 15% 1858 311 17% 1865 311 17% 1858 311 17% 1865 311 17% 1886 311 16%

031 SECT

ION 3

SECTION 3LOCAL ECONOMIC

DEVELOPMENT

032

3. LOCAL ECONOMIC DEVELOPMENT PROGRAMME3.1 Introduction

This section focuses on strategic programmes that will cover the local and regional priorities of economic development, poverty alleviation, community upliftment and the improvement of the people’s lives and long-term sustainability beyond the life of the Colliery. The LEDP seeks to promote WMC’s on-going alignment and involvement in the LED initiatives and the Integrated Development Plans (IDPs) of the Nkangala District Municipality (NDM) and the host local municipality: Steve Tshwete Local Municipality (STLM) The following sections form the basis of WMC’s LEDP:• Background Regional Socio-Economic Analysis;• A LED Projects Plan;• A Housing and Living Conditions Plan; and• A Procurement Plan.

3.2. Socio-Economic Background Information

The Socio-Economic Analysis is based on a desktop study of existing socio-economic information and development strategies contained in the governmental national, provincial, regional and local databases (i.e. Statistics South Africa), Integrated Development Plans (lDPs), Census data from the Municipal Demarcation Board.) This SLP, particularly the LED programme, has been aligned to the district and local municipalities' IDPs to ensure effective integration in the identification, planning and implementation of projects with economic impact and legacy.

Table 35: Socio-Economic Profile of Surrounding Region – Population

Population by Gender and Household Size

Mpumalanga Province Nkangala District Municipality

Steve Tshwete Local Municipality

Popu

latio

n

Perc

enta

ge

Popu

latio

n

Perc

enta

ge

Popu

latio

n

Perc

enta

ge

Male 1,973,772 48,86% 656,133 50,17% 119,391 51,95%

Female 2,065,716 51,14% 651,813 49,83% 110,406 48,05%

Total Population 4,039,488 1,307,946 229,797

Number of households 1,075,488 356,911 64,971

Size of Household 4 4 4

Analysis The gender composition throughout the province shows that there are more females than males, however, for the district and local municipalities, more males are reflected. The gender distribution may be attributed to the prevalent economic activities in the area, that is, mining and agriculture. The population profile of the district and local municipalities compares well with that of the province, with an average of four (4) people per household.

033

Table 36: Socio-Economic Profile of Surrounding Region - Dwelling Type

House or brick/concrete block structure on a separate stand or yard or on a farm

78,82% 75,99% 72,15%

Traditional dwelling/hut/structure made of traditional materials

4,49% 2,42% 1,70%

Flat or apartment in a block of flats

1,63% 1,83% 3,31%

Cluster house in complex 0,35% 0,39% 0,78%

Townhouse (semi-detached house in a complex)

0,54% 0,81% 1,68%

Semi-detached house 0,32% 0,38% 0,68%

House/flat/room in backyard 1,36% 2,10% 3,46%

Informal dwelling (shack; in backyard)

3,56% 4,44% 6,18%

Informal dwelling (shack; not in backyard; e.g. in an informal/squatter settlement or on a farm)

7,30% 9,43% 7,97%

Room/flat let on a property or larger dwelling/servants quarters/granny flat

0,81% 1,24% 0,96%

Caravan/tent 0,11% 0,12% 0,18%

Other 0,70% 0,83% 0,97%

Not Applicable 0,00% 0,00% 0,00%

Informal dwelling (shack; in backyard)

3,56% 4,44% 6,18%

Informal dwelling (shack; not in backyard; e.g. in an informal/squatter settlement or on a farm)

7,30% 9,43% 7,97%

Room/flat let on a property or larger dwelling/servants quarters/granny flat

0,81% 1,24% 0,96%

Caravan/tent 0,11% 0,12% 0,18%

Other 0,70% 0,83% 0,97%

Not Applicable 0,00% 0,00% 0,00%

Analysis The most dominant type of dwelling type (72%) utilised in the Local Municipality is a house/brick structure. The informal dwellings such as shacks is also commonly used with percentages ranging from 3% to 9,5% depending on whether they are situated in backyards or in informal settlements. There is a need for more formalised housing infrastructure to curb the increase in informal settlements especially in the larger District Municipality.

Table 37: Socio-Economic Profile of Surrounding Region - Ablution Facilities

None 6,32% 2,49% 2,13%

Flush toilet (connected to sewerage system)

41,35% 48,68% 81,86%

Flush toilet (with septic tank)

2,45% 2,26% 1,95%

Chemical toilet 1,36% 1,12% 1,14%

Pit toilet with ventilation (VIP)

12,06% 10,56% 3,23%

Pit toilet without ventilation

33,86% 32,21% 5,64%

Bucket toilet 0,87% 1,28% 3,15%

Other 1,72% 1,40% 0,90%

Analysis Sanitary infrastructure appears to be more formalised with almost 82% of households within the Steve Tshwete Local Municipality having access to flush toilets. However, in the greater Mpumalanga Province, there is still a great demand for formalised sanitation infrastructure as less than 42% of households cited to have access to flush toilets. An average of 2,13% of households in the Local Municipality have no access to ablution facilities.

034

Table 38: Socio-Economic Profile of Surrounding Region - Portable Water Access

Piped (tap) water inside dwelling/institution

35,67% 40,59% 62,23%

Piped (tap) water inside yard

36,00% 41,06% 23,47%

Piped (tap) water on community stand: distance less than 200m from dwelling/institution

9,19% 6,98% 7,76%

Piped (tap) water on community stand: distance between 200m and 500m from dwelling/institution

3,31% 2,39% 3,06%

Piped (tap) water on community stand: distance between 500m and 1000m (1km) from dwelling /institution

2,03% 1,22% 1,09%

Piped (tap) water on community stand: distance greater than 1000m (1km) from dwelling/institution

1,24% 0,41% 0,54%

No access to piped (tap) water

12,57% 7,34% 1,84%

Analysis Most households throughout the province had access to piped water in their yards or in close communal areas provided by the municipality. Within the Steve Tshwete Local Municipality only a small percentage of 0.54% must travel more than 1km to access piped water while in the Nkangala District Municipality, mere 0,41% of households must travel more than 1km to access piped water. Only 12,57% of provincial residents don’t have access to piped water.

Table 39: Socio-Economic Profile of Surrounding Region - Refuse Removal

Removed by local authority/private company at least once a week

42,41% 48,34% 84,68%

Removed by local authority/private company less often

1,30% 1,37% 1,62%

Communal refuse dump 2,37% 3,59% 1,38%

Own refuse dump 45,21% 39,82% 9,61%

No rubbish disposal 7,90% 6,26% 2,41%

Other 0,81% 0,63% 0,30%

Analysis Throughout the Mpumalanga Province an average of 42% of the households have their waste removed by the local municipality or a private company once a week. More than 80% of households in the Steve Tshwete Local Municipality have their waste removed by the local authority once a week. There are still several households who remove their own waste or don’t have rubbish disposal services in Mpumalanga Province where 45% of households still claimed to remove their own waste and can be attributed to the rural nature of certain communities within the province.

035

Table 40: Socio-Economic Profile of Surrounding Region - Energy Source used for Cooking

Electricity 69,35% 73,20% 81,74%

Gas 1,94% 1,94% 1,99%

Paraffin 5,83% 10,65% 5,01%

Wood 17,32% 7,98% 3,59%

Coal 4,94% 5,77% 7,05%

Animal dung 0,18% 0,07% 0,05%

Solar 0,14% 0,13% 0,17%

Other 0,06% 0,07% 0,14%

None 0,24% 0,18% 0,26%

Analysis An average of more than 73% of households have access to electricity for cooking purposes throughout the District Municipality. Less than 6% of households use paraffin and wood for cooking in the local municipality and very small percentage of people use other means or have no means at all.

AnalysisTable 41: Socio-Economic Profile of Surrounding Region - Energy Source used for Heating

Electricity 57,58% 60,43% 63,03%

Gas 1,67% 1,89% 2,75%

Paraffin 1,92% 2,71% 1,57%

Wood 15,01% 8,55% 4,83%

Coal 9,04% 13,67% 14,45%

Animal dung 0,24% 0,10% 0,10%

Solar 0,19% 0,16% 0,22%

Other 0,00% 0,01% 0,01%

None 14,34% 12,48% 13,03%

Analysis An average of 58% of households have access to electricity for heating purposes throughout the Mpumalanga Province. A mere 14% in the Local Municipality use coal for heating purposes. Less than 3% of households use paraffin for heating and very small percentages of people use other means. An average of 14% of households throughout the province have no means of heating at all.

Table 42: Socio-Economic Profile of Surrounding Region - Energy for Lighting

Electricity 86,41% 85,70% 90,85%

Gas 0,28% 0,19% 0,27%

Paraffin 1,05% 1,14% 0,62%

Candles 11,72% 12,49% 7,79%

Solar 0,24% 0,21% 0,22%

Other 0,30% 0,28% 0,25%

None 86,41% 85,70% 90,85%

Analysis More than 85% of households have access to electricity for lighting purposes throughout the regions of study. Less than 12% of households in Mpumalanga use candles for lighting and less than 1% of households claimed to have no means of energy for lighting.

036

Table 43: Socio-Economic Profile of Surrounding Region - Educational Profiles

Educational Profiles Mpumalanga Province Nkangala District Municipality


No schooling 8,95% 7,93% 5,76%

Some primary 23,71% 22,25% 18,31%

Completed primary 4,70% 4,65% 3,92%

Some secondary 26,72% 27,94% 26,62%

Grade 12/Std 10 17,72% 19,02% 24,02%

Higher 5,61% 6,33% 9,49%

Other 0,00% 0,00% 0,00%

Unspecified 0,16% 0,20% 0,34%

Not applicable 12,43% 11,68% 11,55%

Analysis Overall statistics at district and local levels indicate poor educational profiles. This results in a shortage of educated labour, which is a critical problem in the province, with more than 20% of the adult population received either no schooling or only limited primary education. On average, less than 5% of the population in Mpumalanga had completed primary education and a mere 6% cited to have higher qualifications. In terms of the available skills within all industries in the provincial economy, finance for the extension of education and training will be essential to provide the skills required for a growing regional economy.

Table 44: Socio-Economic Profile of Surrounding Region – Employment

Official Employment Status Mpumalanga Province Nkangala District Municipality


Employed 24,00% 27,17% 37,41%

Unemployed 11,09% 11,64% 9,18%

Discouraged work-seeker 3,73% 3,25% 2,22%

Other not economically active 25,27% 24,43% 21,86%

Not applicable 35,90% 33,50% 29,33%

Brief Analysis Only 37% of the economically active population are employed within the Steve Tshwete Local Municipality, with an average of 9% of people not being employed across local, district and provincial levels. The employment status of these individuals is related to the income distribution across the various areas in the province and concerted effort needs to be applied to create a sustainable economy to assist in eradicating poverty.

Table 45: Socio-Economic Profile of Surrounding Region – Individual Monthly Income

Individual Monthly Income

Mpumalanga Province Nkangala District Municipality


No income 41,99% 41,31% 36,59%

R 1 - R 400 20,66% 18,06% 9,19%

R 401 - R 800 3,15% 2,74% 2,34%

R 801 - R 1 600 11,09% 11,08% 8,50%

R 1 601 - R 3 200 5,56% 6,52% 7,69%

037

R 3 201 - R 6 400 3,87% 4,98% 7,36%

R 6 401 - R 12 800 3,16% 3,83% 6,32%

R 12 801 - R 25 600 2,18% 2,68% 4,71%

R 25 601 - R 51 200 0,78% 0,97% 1,89%

R 51 201 - R 102 400 0,19% 0,23% 0,45%

R 102 401 - R 204 800 0,08% 0,09% 0,17%

R 204 801 or more 0,06% 0,07% 0,12%

Unspecified 6,20% 6,47% 12,80%

Not applicable 1,02% 0,96% 1,88%

Brief Analysis More than 20% of the individuals within the local municipality receive a minimal monthly income of below R1600, while 37% of the individuals did not receive any income at all during the time of the National Census. Less than 1% of individuals in the population earns more than R51,201 per month throughout the province. More activities need to be initiated within the province to generate income to a significant percentage of individuals. The large percentages of individuals without income throughout the region implies that there is a lot of poverty in the communities and initiatives need to be implemented, such as LED projects to curb poverty.

3.3 Key Economic Activities

Table 46: Socio-Economic Profile of Surrounding Region – Sectorial Employment

In the formal sector 16,81% 19,11% 27,83%

In the informal sector 4,04% 4,12% 4,60%

Private household 2,99% 3,70% 4,50%

Do not know 0,61% 0,70% 1,18%

Not applicable 75,56% 72,37% 61,89%

As indicated in Table 46, in 2011, more than 16% of individuals were employed in formal sectors throughout the Mpumalanga region, with less than 5% of the economic active population being employed in informal sectors. Many individuals (more than 60%) have being categorised as ‘not applicable’, which may imply that there are many more individuals who are in the less formalised sector.

3.3. Local Economic Development Planning

3.3.1. Integrated Development Planning: Nkangala District MunicipalityThe Nkangala District Municipality (DC31) is one (1) of the three (3) district municipalities in Mpumalanga Province. The head office of Nkangala District Municipality is in Middelburg (Steve Tshwete Local Municipality). The District is composed of six (6) Local municipalities namely Victor Khanye Local Municipality (MP 311), Emalahleni Local Municipality (MP 312), Steve Tshwete Local Municipality (MP 313), Emakhazeni Local Municipality (MP 314), Thembisile Hani Local Municipality (MP 315) and Dr. J.S. Moroka Local Municipality (MP 316). The area of the District covers a total area of approximately 16,892 square kilometres. Table 47 below highlights the IDP priorities and strategic objectives for Nkangala District Municipality.

Table 45: Socio-Economic Profile of Surrounding Region – Individual Monthly Income

No income 41,99% 41,31% 36,59%

R 1 - R 400 20,66% 18,06% 9,19%

R 401 - R 800 3,15% 2,74% 2,34%

R 801 - R 1 600 11,09% 11,08% 8,50%

R 1 601 - R 3 200 5,56% 6,52% 7,69%

038

Table 47: IDP Priority Issues and Objectives for Nkangala District Municipality

IDP Priority Strategic objectivesInstitutional Development and Municipal Transformation

• A solid foundation, consisting of early childhood development, general education at school as well as adult education and training;

• Articulation of demand for skills;• Securing a supply of skills, especially scarce skills, and innovation and Research &

Development.

Good Governance, Intergovernmental Relations and Public Participation

• Promoting the positive corporate image and brand of Nkangala District Municipality• Widely communicating the governance priorities, successes and objectives of the

District• Improving relations between the three spheres of government, and its Local

Municipalities and the Community at large• Improving public participation, accountability and transparency.

Local Economic Development • Economic Development and job creation• Planning and co-ordinating government socio-economic development strategies

and initiatives spear-headed by our social partners within the framework of the IDP.• Diversification of the economy by promoting Agriculture, tourism and SMME

development.• Establishing LED programme structures which include the District and Local

Municipalities to co-ordinate and cooperate on policies, structures and LED initiatives.

• To collect and disseminate economic information to assist Local Municipalities with LED interventions.

Municipal Financial Viability and Management

• Skills development.• Performance management• Departmental risk management• Development and sustainment of internal controls• Financial Viability

Service Delivery and Infrastructure Development

• Health• Education (Social Conditions, Skills Shortage, Further education and Training)• Community Welfare (Vulnerable groups)• Culture, sport and recreation• Emergency Services• Water and Sanitation• Electricity Supply• Roads and Stormwater

Spatial Development and Rationale • Spatial Restructuring and Service Provision• Transportation• Land Reform and Land Administration• Human Settlements• Environmental Management• Waste Management

3.4.2 Integrated Development Planning: Steve Tshwete Local Municipality

Steve Tshwete Local Municipality is one of six local municipalities within the Nkangala District Municipality. This local municipality has a geographical area of approximately 3 976km2, which constitutes 24% of the total land in the Nkangala District Municipality. It is situated in the centre of the Nkangala District Municipality. Steve Tshwete Local Municipality is home to several large industries such as Columbus Steel and Eskom (power generation). Eskom power stations, local mines which sustain the area, strong agricultural areas, a thriving commercial community and tourist attraction including dams (Middelburg) and rivers characterize the economic profile of the local municipality.

Steve Tshwete can be regarded as one (1) of the commercial hubs in Mpumalanga with the higher household income compared to other municipalities. Its local economy is one of the largest economies in the district context and is dominated by the mining sector, manufacturing. To follow in Table 48, are the key priority issues of the Steve Tshwete Local Municipality as stated by the relevant IDP.

039

Table 48: Key LED Priorities and Objectives of the Steve Tshwete Local Municipality

1 Job creation • Developing the LED strategy and further identify sector opportunities to improve the strategy.

• Promoting investment along the N4 development corridor with specific focus on enhancing the stainless-steel cluster in Middelburg.

• Improve monitoring of Private sector initiatives • Improving the quality of education, training and innovation on the green

economy.• Revitalize and integrate township industries.• Facilitating the development of emerging farmers.• Facilitate the beneficiation of local agricultural produce and export finished

products.• Continuous maintenance and upgrade of infrastructure to meet business and

industry development.• Make land available for SMME development.• Increase support of government-initiated development.• Reduce imports of finished products• Development of human capital in manner that links formal academic education

to industry- based training.• Review of procurement policies to enable equitable.

access

2 Alleviate poverty

3 Skills development

4 Business development

5 SMMEs

6 Promote Private sector involvement

3.5. Stakeholder Engagement and Management Plan

The aim and objectives of this community development strategy is to provide guidance and direction to community relations practitioners and community development specialists for the period 2014 to 2019 after which the strategy will be reviewed. The objectives of this community engagement, investment and development strategy is to:

• Support and advance the Company’s stated business goals as well as ensure strategic community relations that will ensure sustainable community development;

• Assist with the implementation of community investment programmes whilst ensuring compliance with Community , Code of Business Conduct and Anti-Corruption Standards and Procedures;

• Provide an overview of the organizational and community context applicable; • Describe the approach to community engagement, investment and development; • Identify the community and development issues; • Identify key messages that could be used in communications with affected and representative stakeholders; • Document how community engagement, investment and development will be managed; • Document how risks and issues will be mitigated and reported; • Identify linkages to other business and operational functions; and • Document policies and procedures to be followed in the execution of the community engagement, investment and development

plan.

Performance against the objectives of this proposed plan and strategy will be measured against the following: • Obtaining early community and stakeholder support to facilitate the achievement of the strategy’s objectives; • Fulfilment of any statutory requirements; • Timely, accurate, and effective response to community complaints; • Ensuring all stakeholders are identified, their needs and interests are recognised, and that they are engaged with in a proactive,

genuine, timely and consistent manner; • Understanding of issues and concerns and resolutions of the community expectation’s in a reasonable manner; • Avoiding and or minimizing negative impacts whether economic, social or environmental of the operations on communities and

creating awareness of such mitigation measures to minimise these impacts; • Management of community risks and issues so that they do not escalate; • Upholding the corporate reputation of the Company; and • Fostering within the project team a culture that adopts community engagement principles.

040

3.5.1. Record of Communication between Operation and the various Stakeholders

Table 49: Record of Stakeholder Engagement

Record of Stakeholder EngagementObjectives of Meeting District/Local Municipality Date of

attendanceName and Position of Representative from South32

Mutually beneficial relationship; support for identification and SLP 3 LED projects and support for rollout of these projects

Emalahleni Local Municipality 18 May 2017 Thabo Manne

SLP 2 Close Out Discussion DMR 19 May 2017 Molebogeng MotabogiThobatsi ThobatsiCynthia Makhubele

South32 has continued to consult and engage with the DMR, Emalahleni Local Municipality and Nkangala District Municipality as well as recognised unions in the compilation of this SLP document.

3.6. Socio-Economic Impact of the Mine in the Local CommunitiesIn February 2015, South32 conducted on behalf of its operations a research focusing on the latest trends in community relations, investment and development. The main purpose of the research was to obtain a global and local overview of community relations, investment and development; specifically, socio-economic and community development in general. The Company realises that community buy-in, support and proactive management as well as strong relationships are core to the success of its operations. It has also realised that sustainable and long-term relationships with stakeholders are important as they will have a direct impact on current and future business. The strategic objective now for South32 and most mining companies is to invest in their people as well as neighbouring communities.

Education was identified as the top priority focus area for social investment while training and skills development was recognised as key to the success of operations. It is very essential to have a pool of educated people in the surrounding areas of the company to feed into the workforce as and when needed. A need for partnerships was identified between the private sector, government agencies, NGOs and communities as it would create benefit in pooling knowledge and resources while enabling partners to draw on each other’s strengths for the greater good of socio-economic development. Research showed that involvement in community interventions should be entrenched in the mission and values of the company such that even the employees at all levels are roped in. The crucial focus for the future right now is the need to continue investing in community relationships and programmes that will ensure maximum benefit for society.

Through the Social Management Impact and Opportunity Assessment Research done for the company, it was concluded that the company enhanced the quality of life of surrounding communities through its social/community and enterprise development initiatives. Recommendations were made especially regarding education and enterprise development.1. Education – The education portfolio must be redesigned and the current programmes exited responsibly. There is a

great opportunity for combining the educational portfolio to address a very specific community need, for example, skills development for the unemployed youth leading to job creation, local economic development and ultimately economic independence of Individuals.

2. Enterprise Development – the advancement of education and skills development provides an ideal opportunity to refocus or extend the current enterprise development portfolio as well as to leverage resources already invested.

So far, the company has managed the enhancement of the quality of life of local communities very well and will continue to do so to nurture relationships.

3.7. Infrastructure Development, Poverty Eradication and Welfare Creation Projects

In reference to the Social Management Impact and Opportunity Assessment Research conducted as elaborated in section 3.6 above, and in line with the mandate of the MPRDA to identify suitable local economic development projects (job creation or infrastructure development) within the host community as well as major labour-sending areas, WMC will support the LED projects listed in section 3.7.1.

041

3.7.1. Infrastructure Development and Poverty Alleviation Programmes

Table 50: Five (5) Year Project Summary Plan for Local Economic Development Projects of WMC

Project Focus area FY18 FY19 FY20 FY21 FY22 Total Location

Waste collection –wheelie bin (Qty - 1000)

Municipal support

R 1 000 000 R 1 000 000 R 2 000 000 STLM

Waste removal trucks (2x25m3) & TLB

Municipal support

R 3 700 000 R 4 000 000 R 4 000 000 0 0 R11 700 000 STLM

Equipping Rockdale Health Centre

Infrastructure R - R 3 000 000 0 0 R 3 000 000 Rockdale

Khonza-Kahle Primary School

Infrastructure R 500 000 R 2 000 000 R 1 000 000 R 3 500 000 STLM

Construction of flea market stalls in Mhluzi (20)

Infrastructure R 1 000 000 R 4 000 000 R 5 000 000 Mhluzi

Youth Portable Skills Programmes

Education R 200 000 R 500 000 R 500 000 R 1 000 000 R 800 000 R 3 000 000 STLM

Community Bursaries

Education R 1 900 000 R 3 800 000 R - R - R - R 5 700 000 STLM

Total: R 5 800 000 R 9 300 000 R 10 000 000 R 7 000 000 R 1 800 000 R 33 900 000

3.8.Housing and Living ConditionsWMC has a focus on local recruitment of the workforce to be within the local labour sending area. WMC employees should have the opportunity to live with their families in a sustainable social environment and have the opportunity to participate in wealth accumulation through ownership of property.

The mine will therefore endeavour to improve the quality of accommodation of its employees through:1. Provision of housing allowances where applicable;2. Promotion of the importance and benefits of home ownership and educating employees through programmes regarding living

budgets, housing options, accessing government housing loans and subsidies.

Furthermore, the Colliery provides transport to employees to transport them from home to work and back to enable employees to live with their families in sustainable communities

Table 51: Housing and Living Conditions Undertaking

Undertaking: Wolvekrans undertakes to encourage employees to become homeowners and will facilitate home ownership in areas in close proximity. In addition to this the mine will offer employees in loweroccupational categories a market related living out allowance as agreed in the Wage Negotiations. Further strategies on how to promote home ownership in the mine will be developed andcommunicated to employees.

Guidelines: Wolvekrans will develop a strategy that provides the following assistance to employees to facilitate home ownership in close proximity of the mine:

Responsible Persons

Strategic Action Timeframe

HR Manager Include a suitable housing and living condition awareness plan for employ-ees, with continuous Financial Awareness sessions, to emphasize: 1. Focus on communication to employees about the benefits of home owner-ship and living with their families; 2. Creating awareness about the disadvantages of living in squatter settle-ments.3. Educate employees on how to go about finding a home in a sustainable settlement; how to purchase a home and get finance from the banks; under-standing of interest rates; 4. Understanding of payment of rates, taxes and electricity; and 5. Educate employees on how to structure and spend their salaries i.e. Housing allowance

Annually

042

3.9. Health Care and Nutrition Plan

Our workforce at WMC resides outside of hostels in either rented or owned accommodation, and therefore the mine therefore cannot directly influence the diet of their employees. However, through indirect nutrition programmes it can influence the health and wellness of the workforce and their families.

WMC will through the Social and Labour Plan, contribute to the positive conditions of health of employees by means of focussing on the following:• Implement Comprehensive Wellness program inclusive of health awareness, education and monitoring of compliance to chronic

disease medication • Access to health services to promote awareness, prevent infection, encourage early diagnosis and treatment and provide

ongoing continuity of care and support optimal health in order for them to remain as productive members of the mining workforce and their communities.

• Continue utilising the services of a health practitioner and dietician to distribute information to employees and family members on appropriate diets, food preparation methods and eating habits to achieve the objectives;

• Encourage the reporting on HIV/TB programmes, to promote HCT campaigns (incl. TB screening); conduct audits to evaluate effectiveness programmes

• Assisting HIV positive employees as well as Aids patients to develop and adhere to supportive diets through the HIV/Aids programme that is available to all employee Medical Aids

• Monitoring results and applying changes/updates to programmes where required • Implement and assist employees living with chronic disease psychosocial support through the introduction and management of

Employee Wellness Programs• Close collaboration and coordination with the public sector in instances where companies do not offer some of these services

Table 52: Health Care and Nutrition Plan Undertaking

Undertaking: With regard to nutrition, the mine does not provide food for its employees as they reside outside of hostels in their own accommodation, however the mine is looking at implementing awareness programmes so that they can inform workers how they can benefit from good nutrition.

Summary: The following plan in respect to improving the nutritional levels of its workforce will be implemented at WMC during the remaining life of the mine:1. To continue to identify employees with specific health requirement; and2. To monitor these employees on a scheduled, weekly basis and to provide guidance

in the following aspects:a) An eating plan that would assist in lowering the incidence of hypertension and diabetes amongst employees; andb) An eating plan that would assist HIV/Aids positive employees and family members to remain healthy for as long as possible.


Operations HSE Lead Implement Comprehensive Wellness program inclusive of health awareness, education and monitoring of compliance to chronic disease medication

6 months

Operations HSE Lead Assisting HIV positive employees as well as Aids patients to develop and adhere to supportive diets through the HIV/Aids programme that is available to all employee Medical Aid

6 months

Principal Health Improvement Establish collaboration and coordination with the public sector in instances where companies do not offer some of these services

12 months

3.1. Procurement Plan

Table 53: Background on Preferential Procurement HDSA Undertaking

Undertaking: South32 is committed to Transformation and supports DMR’s initiatives to transform the mining industry. Our key strategy focusses on creating successful business partners in core activities of our operations. This strategy positively impacts the communities within which we operate.

Our preferential procurement policy is focused on benefitting the business partners created under our Enterprise and Supplier Development Programme. All procurement (regardless of value/type) is driven through suppliers who are themselves transformed. We are committed to moving beyond compliance and have already introduced additional requirements, such as:• Procuring of contracted labour requirements from the local community. • Local subcontracting – downstream subcontracting.• We also provide min requirements for the vendor to subcontract to local EME and QSE’s

043

3.10. Procurement PlanTable 53: Background on Preferential Procurement HDSA Undertaking

Undertaking:South32 is committed to Transformation and supports DMR’s initiatives to transform the mining industry. Our key strategy focusses on creating successful business partners in core activities of our operations. This strategy positively impacts the communities within which we operate.

Our preferential procurement policy is focused on benefitting the business partners created under our Enterprise and Supplier Development Programme. All procurement (regardless of value/type) is driven through suppliers who are themselves transformed. We are committed to moving beyond compliance and have already introduced additional requirements, such as:

• Procuring of contracted labour requirements from the local community. • Local subcontracting – downstream subcontracting.• We also provide min requirements for the vendor to subcontract to local EME and QSE’s

Summary: WMC's approach to procurement is guided by the following principles:

• To facilitate SME access to procurement activities through training in technical, business and managerial skills for sustainable business growth; and

• To create awareness, understanding and support for BBBEE among all local stakeholders and business sectors.

• Supplier communication sessions;• Workshops to clarify legislative requirements;• Capacity building; and• Enterprise/ Supplier development


Manager ESD Identification of Tender/ RFQ opportunities to black owned and black woman owned EME, QSE and LME’s.

Ongoing

Manager ESD Training and development provided to black owned EME and QSEs where areas are identified which will assist these SMEs to improve access to market and sustainability.

Ongoing

Manager ESD Spend on empowered QSE/EME from a Preferential Procurement perspective to be a percentage of measured spend/planned spend e.g. >30% of measured spend, aligned to legislative targets. Implement ED & SD initiatives as identified from an Operations perspective

FY18

3.10.1. Enterprise Development

WMC’s Enterprise development programme will focus on the following types of enterprises, Start-ups, Emerging Micro Enterprises, Qualifying Small Enterprises (QSE), Large and Medium Enterprises (LME).There are also several interventions planned for developing enterprises namely:• Support access to improved cashflow through 7-day payment terms to black owned EME’s;• Support access to capital through sponsorship of FRCs to qualifying black owned EME and QSEs;• Work experience & technical skills development;• Managerial and entrepreneurial skills training;• Access to markets and capability building through:• Sub-contracts.• Set asides; • Managerial and Legal training; • Technical training; • Monitoring and access to continued business

Table 54: Targets for HDSA procurement at WMC for FY 2018 to 2022

Procurement Category Current FY 2018 FY 2019 FY 2020 FY 2021 FY 2022Procurement of Capital Goods

100% 40% 40% 40% 40% 40%

Procurement of Services 81% 70% 70% 70% 70% 70%

Procurement ofConsumables

82% 50% 50% 50% 50% 50%

044 SECT

ION 4

SECTION 4DOWNSCALING AND

RETRENCHMENT

045

4. Downscaling and Retrenchment4.1. Introduction

This section deals with the management of downsizing and retrenchments. It is the Mine’s intention to abide by the guidelines as set out in the Labour Relations Act.

The Downscaling and Retrenchment Plan will seek to implement measures, which may mitigate the adverse social impacts caused by eventual downscaling, retrenchment and mine closure. The following key strategies have been established and are focused on in the ensuing sections:1. Establishment of a Future Forum;2. Mechanisms to save jobs and avoid downscaling and retrenchment;3. Measures during downscaling and retrenchment;4. Alternative livelihood opportunities and integration with the IDP; and

The continual investment in Human Resource Development and facilitation of training during the lifetime of mine has the purpose to sustain skills that will support employment of the workers beyond life of mine. The mine intends to comply with the Basic Conditions of Employment Act in respect of specific skills development directed at facilitating the further acquisition of skills that will be of value to employees at the mine at the time of downscaling and retrenchment. The mine will preside over the portable skills development initiatives. The applicable authorities and employees will be notified of the planned retrenchments in accordance with legislative requirements. Negotiations with regards to retrenchment packages will be carried out in line with applicable legislation and company's Human Resource's polices for retrenchment. In addition, provisions for downscaling and retrenchment will be finalised in the Future Forum when the need arises.

Table 55: Downscaling and Retrenchment Undertaking

Undertaking:In terms of section 52 (1) of the MRPD Act, 2002 (MPRDA), should the profit revenue ratio be less than six present (6%) on average for a continuous period of twelve (12) months or should ten present (10%) or more of the workforce or more than five hundred (500) employees have to be retrenched, the company undertakes to notify immediately the Minerals and Mining Development Board of such an event. It also undertakes to comply with any ministerial directive arising from such a process. Further the mine undertakes that early warning triggers will be activated where appropriate to anticipate contingencies, and alternatives to retrenchment will be explored.

Summary:The on-going investment in Human Resource Development Programmes and facilitation of training during the life of the mine is intended to support the acquisition of skills that will ensure employability of the workforce beyond the life of the mine. In addition, WMC will comply with the Basic Conditions of Employment Act in respect of assistance for employees in skills development directed at facilitating the further acquisition of skills that will be of value to employees at the time of retrenchment.

4.2. Future ForumWMC established a Future Forum is required under Regulation 46 (d) (i) of the MPRDA. A Future Forum is a site-specific labour management body that will focus on the implementation and monitoring of the SLP. WMC will utilise the monthly Future Forum structure to discuss a variety of issues pertinent to facilitating a coherent communication channel with an informed workforce. Issues such as the mine's safety performance, operational status, HR related matters, LED projects and production levels have been incorporated into the scope of the Forum. The current members of the Forum include senior mine management, HR management and representatives of all the Unions.

The proposed WMC Future Forum will comprise of the following representatives and will meet on a monthly basis:1. Chairperson (appointed by the Operations Manager);2. Representatives (appointed by the Operations Manager of WMC representing the Mine); and 3. Representatives (appointed by recognized unions).

Table 56: Strategic Action Plan for Future Forum

IR Specialist Identify and analyse issues, problems, challenges and solutions surrounding job losses and retrenchment management in good time for mine closure.

On-going

IR Specialist To continuously assess and report on through the annual SLP report, the success and progress of all job loss management and retrenchment management programmes implemented during the closure, and subsequently the post-closure period.

On-going

046

4.3. Communication with Authorities

In compliance with Section 52 (1) of the MPRD Act, on identifying the need to reduce mining operations, should the profit revenue ratio of the relevant operation be less than 6% on average for a continuous period of twelve (12) months or should 10% or more of the workforce (or more than five hundred (500) employees) have to be retrenched, a comprehensive consultation process with the relevant trade union structures or affected employees will commence in compliance with Sections 189 and 189(A) of the Labour Relations Act, 1995 (as amended) through the established Future Forum structure.

As planning for the Social Plan and its associated job loss and retrenchment management programmes commences, the Department of Labour and the Department of Mineral Resources (specifically the Minerals and Mining Development Board in accordance with Section 52(1) (a) of the Act) will be notified. Table 57 outlines the strategic action plan with regards to communicating with the authorities. The government authorities will be given notice of the timeframe for the closure process as well as the on-going 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.

Table 57: Strategic Action Plan to Communicate with the Authorities

Responsible Party Communication with Authorities Strategic Action Plan Date to be completed

Future Forum In event of identifying the need to reduce mining operations and therefore the need for retrenchment of 10% (or more than 500 people) of workforce, the Future Forum is required to enter into consultation with the affected employees or relevant Trade Unions.

Commencement of the Social Plan

Future Forum As planning for job loss and retrenchments commences, the Future Forum needs to notify: 1. Department of Labour; and 2. DMR, specifically Minerals and Mining Development Board.

Commencement of the Social Plan

Future Forum Government Authorities to be given notice of timeframes. Commencement of the Social Plan

4.4. Mechanisms to Avoid Job Losses

In order to save employment, the mine will appoint the optimum staff component to run the mine efficiently. Consequently, there should be no superfluous people in jobs that could become redundant. The mine will recruit people from the community, thus enabling them to stay within the community and minimising the risk of losing their homes, should retrenchment occur. This will also lessen the impact of retrenchment, as communal support systems will still be available.

Table 58: Mechanisms to Avoid Job Losses Undertaking

Undertaking:WMC will appoint the optimum staff complement to run the mine efficiently. Consequently, there should be no superfluous people in jobs that could become redundant. The mine will recruit people from the community, thus enabling them to stay within the community and minimising the risk of losing their homes, should retrenchment occur.

Summary: The Company will develop and implement turnaround strategies and mechanisms to save jobs, prevent unemployment and downscaling by focusing on the following: 1. Seeking to prevent retrenchments from taking place, where possible.2. Utilising the Future Forum to identify strategies to prolong the life of the mine and

operations or avoid retrenchments and downscaling.3. Consulting with the DOL, DMR and surrounding mining companies to assess any potential

opportunities to migrate to above mentioned.

4.5. Provision of alternative solutions and procedures for creating job security where job losses cannot be avoided

One of WMC’s goals is to ensure that through the effective implementation of its HRD plan, appropriate systems for creating employee mobility will be in place. Where possible an appropriate programme will be implemented to further diversify the skills base of retrenched employees, through learnerships, skills programme and portable skills training.

Further, WMC will assist affected employees in finding alternative forms of employment or sustainable livelihoods. This will be done where necessary, given the expectation that the infrastructure development initiatives planned for the affected communities will absorb a portion of the workforce after closure. The focus of this phase will fall on the integration of the workforce into various LED projects, which will be done in collaboration with the district and local municipalities. Where workers cannot be absorbed into LED initiatives, they will be furnished with skills and training (through the HRD programme) which will enable them to find alternative employment after mine closure.

047

Table 59: Provision of Alternative Solutions Undertaking

Undertaking:WMC aims to ensure the effective implementation of the HRD Programme to provide the workforce with both mining-related and portable skills. In this manner WMC wants to assist the workforce to be multi-skilled and employable in diverse fields should the mine need to downscale and close. Furthermore, the mine will regularly communicate with the Future Forum to direct the retrenchment process and the establishment of a Job Advice Centre, which will provide counselling and support to employees. Inherent to this, a "job-help" facility will be provided to aid employees in locating alternative employment, through the formulating of employee CV's, integrations mechanisms with potential employers, interview strategies. Contractors will however be responsible for the management of downscaling and retrenchment of their own employees.

Summary: WMC is planning for closure throughout the process by acknowledging the future well-being of its employees in the eventuality of closure. During this phase will be done in partnership with the DoL and the representative unions. Here affected employees will be assisted to maximise their chances of re-employment.

Responsible Party Strategic Action Timeframe

HR Manager A retrenchee database to be established, including information regarding existing skills, experience, and expertise. This database will be used to identify potential employment opportunities within or outside of the company.

Continuous

HR Manager Appropriately train and skill retrenchees in order to find alternative employment within the company, or in the open job market.

Continuous

4.6 Mechanisms to ameliorate the social and economic impact on individuals, regions and economies where retrenchment or closure of the operation is certain

To ameliorate the social and economic impact on individuals, regions and economies where retrenchment or closure of the operation is certain, Mine management, together with the Future Forum, will assess in advance the impact that will be caused by the retrenchment and/or closure of its operations. This will be communicated to the affected individuals and communities involved so as to make all affected parties aware of what the outcome of the retrenchment and/or closure will be. Proposals to lessen the impact on the socio-economic situation of the area concerned will be considered. In order to assess this impact a socio-economic impact analysis (SEIA) will be carried out by specialist consultants prior to the development of detailed closure management plans. Such an impact assessment will incorporate interaction with both the Future Forum and relevant community structures.

Table 60: Mechanisms to Ameliorate the Social-Economic Impact Undertaking

Undertaking:Downscaling and retrenchment has the potential to affect not only employees but also surrounding businesses and communities. Thus, careful planning is imperative to limit the potential fallout of such an event. A major objective of the Human Resources Development Programmes and the LED Programmes is to facilitate sustainable social and economic growth in the local communities during the life of the mine. This will need to be supplemented by additional measures to manage the impact of the mine closure on both the surrounding communities and those communities from which labour is sourced.

Summary:After considering all alternatives and downscaling and retrenchment becomes inevitable, WMC will assist affected employees in redeployment within the company and finding alternative employment or sustainable livelihoods, six (6) months before this eventuality. This phase will be managed jointly by the Company in partnership with the Department of Provincial and Local Government. The focus will be on the integration of the workforce into various LED projects, which will be done in collaboration with the district and local municipalities and other stakeholders serving on the LED Forum/CDF.

Responsible Party Strategic Action Timeframe

EAP Service Provider Psychological counselling to be provided to employees. At times of downscaling/closure

HRD Portable skills training interventions to be uplifted and to include comprehensive self-employment opportunities.

On-going throughout the Life of Mine (LoM)/ At times of downscaling/closure

HR In conjunction with the DoL, the mine to facilitate retrenchees in the completion of UIF claim forms at the mine premises.

At times of downscaling/closure

HR/Finance The mine to ensure that sufficient financial provisioning is in place for the implementation of all plans relating to the process of downscaling and retrenchments.

On-going throughout the Life of Mine (LoM)

048

4.7. Post Closure Planning

Management strategies for the post-closure period will also be developed with local stakeholders within the closure planning process. Strategies that avoid dependency amongst the social intervention beneficiaries and promote independence amongst individuals and businesses in the community will be developed to ensure post-closure sustainability. On-going consultation and advisory roles facilitated through the Future Forum structure will be utilised to ensure that the programmes and plans continue to deliver sustainable and effective benefits. The continued contribution and on-going management role of local government in this respect will be essential to this post-closure management process.

Planning for specific LED projects at closure is very difficult given that the life of the proposed mine is thirty (30) years. Knowledge of the specific LED needs within the area surrounding the mine at the time of or several years in advance of closure is very difficult. However, cognizance of the need for comprehensive LED projects which are developed with the aim of sustainable social and economic development in the region surrounding the mine, particularly for workforce and/or communities previously dependent on the mine for their livelihoods, will be key. Such planning will commence some five (5) years prior to closure.

4.8. Social and Labour Plan (SLP) Communication

In order to comply with the requirements of the MPRD Act (specifically regulation 46(f)) WMC will ensure that each employee is informed about the provisions laid out in the mine’s SLP as well as progress in achieving the objectives on an annual basis.

Clear, effective and participative communication of the Social and Labour Plan, including using the Career Progression Plan (CPP), Skills Development Plan (SDP) and Worker's Forums to ensure it is communicated on a level that each worker can grasp.

Table 61: Strategic Action Plan to Communicate the Social and Labour Plan

SLP Coordinator/ Corporate Communications

The mine will hold dedicated meetings on an annual basis to provide feedback to its employees on the progress made within the SLP.

Annually

HR Manager SLP Future Forums will be set up at mine level as a forum to discuss and communicate SLP issues during the life of the mine as well as issues pertaining to downscaling and retrenchment should these arise.

Quarterly

049 SECT

ION 5

SECTION 5FINANCIAL PROVISION

050

5. Financial Provision

5.1. Financial Provision

In terms of Section 23(1) (e) of the MPRDA “The Minister grants a mining right if the applicant has provided financially and otherwise for the prescribed Social and Labour Plan”. This section intends to outline the manner in which The Mine aims to provide financially for each component of the Social and Labour Plan. Table 60 provides a summary of the financial commitment by the mine for the next five (5) years.

Table 62: Summary of Financial Provision for Key Elements of WMC’s SLP over the Five (5) Year Period (FY 2018 to 2022)

Human Resource Development Programmes

R56 209 091 R63 904 226 R69 817 477 R57 329 662 R60 142 555 R297 204 573

Local Economic Development Programmes

R 5 800 000 R 9 300 000 R 10 000 000 R 7 000 000 R 1 800 000 R 33 900 000

Estimated Total Provision for SLP

R62 009 091 R73 204 226 R79 817 477 R64 329 662 R61 942 555 R331 104 573

5.2. Financial Provision for Human Resource Development Programmes (Regulation 46 (E) (1))

WMC will fund its HRD programme by means of the procedures put in place through the Skills Development Act and the payment of skills levies as well as the budgetary commitments made for through the operating costs associated with the mine and implementation of the overall business plan.

Table 63: Summary Breakdown of Human Resources Development Five (5) Year Budget for WMC (FY 2018 to 2022)

HRD Budget 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 Total Budget

AET R658 000 R723 800 R789 600 R855 400 R921 200 R3 948 000

Community AET R0 R1 034 000 R1 137 400 R1 251 140 R1 376 254 R4 798 794

Artisan Training R2 616 517 R2 878 168 R3 165 985 R3 482 584 R3 830 842 R15 974 095

Core Business Skills

R2 707 371 R2 978 108 R3 275 918 R3 603 510 R3 963 861 R16 528 768

Portable Skills Training

R1 088 202 R1 197 022 R1 316 724 R1 448 396 R1 593 236 R6 643 579

Portable Skills Training (community)

R0 R25 000 R25 000 R25 000 R25 000 R100 000

Bursaries (internal)

R1 404 489 R3 363 501 R3 699 851 R4 069 836 R4 112 711 R16 650 388

Bursaries (External)

R 1 400 000 R 500 000 R 600 000 R 650 000 R 700 000 R 3 850 000

Internships (Internal)

R346 955 R499 082 R710 458 R142 092 R117 226 R1 815 812

Internships (External)

R53 378 R88 073 R322 935 R0 R0 R464 386

Learnerships (18.1)

R15 476 192 R14 840 431 R22 333 022 R15 683 860 R19 963 807 R88 297 312

Learnerships (18.2)

R26 184 867 R31 196 608 R27 531 503 R20 856 946 R17 900 219 R123 670 143

School programs R607 133 R667 847 R731 236 R797 568 R867 451 R3 671 234

Leadership Development

R2 400 000 R2 520 000 R2 646 000 R2 778 300 R2 917 215 R3 063 076

Total Budget R56 209 091 R63 904 226 R69 817 477 R57 329 662 R60 142 555 R297 204 573

051

5.3. Financial Provision for Local Economic Development Programmes (Regulation 46(E) (ii))

Section 3 details the Mines plans to undertake Local Economic Development in line with the local and district municipalities Integrated Development Strategies.

Table 64: Summary of Financial Commitment for Local Economic Development for Five (5) Years for WMC (FY 2018 to 2022)

LED Projects R 5 800 000 R 9 300 000 R 10 000 000 R 7 000 000 R 1 800 000 R 33 900 000

Total Financial Provision for Local Economic Development Programmes

R 5 800 000 R 9 300 000 R 10 000 000 R 7 000 000 R 1 800 000 R 33 900 000

5.4. Financial Provision for Management of Downscaling and Retrenchment (Regulation 46(E) (iii))

The on-going investment in Human Resource Development Programmes and facilitation of training during the life of WMC is intended to support the acquisition of skills that will ensure employability of the workforce beyond the life of the mine. In addition to this, the Colliery will comply with the Basic Conditions of Employment Act in respect of assistance for employees. Specific skills development initiatives directed at facilitating further acquisition of skills that will be of value to employees at the time of retrenchment will be implemented.

No provisions for retrenchment and downscaling have been made as a result of the Company not planning to rentrench in the near future. In such an unforseen event, normal legislative procedures will be followed, where appropriate financial provisions will be made which will be in accordance with IFRS.

052 SECT

ION 6

SECTION 6UNDERTAKING

053SECT

ION 66. Undertaking

This represents an undertaking by the holder of the mining right to ensure compliance with the SLP and to make it known to employees and for further contacts on follow-ups, requests, reports, queries, enquiries and discussions.South32, herein represented by Andre Roux duly authorized thereto, hereby undertakes to adhere to the information, requirements, commitments and conditions as set out in the Social and Labour Plan.

Signed at Johannesburg on this ………………………………... day of ………………………………………………. 2017.Signature of responsible person(s).

……………………………………………………………………………………..…………………..Designation – Operations Manager

Addendum A: Breakdown of Labour Sending Areas

Eastern Cape 1 0.007%

Northern Cape 1 0.00%

Mpumalanga 1794 94.82%

Gauteng City of Johannesburg Metropolitan Municipality 58 0.03%

KwaZulu-Natal Amajuba District Municipality 7 0.00%

Limpopo Capricorn District Municipality 20 0.01%

North West Bojanala Platinum District Municipality 9 0.00%

Free Sate Fezile Dabi District Municipality 2 0.00%

Total 1892 95%

054

Proposed South32 Qualifications Framework

EU Post Graduate Degree (4yrs)

Degree (4yrs) Degree (4yrs) Degree (4yrs) Min 10 years’ experience of which 5 years at least in Managerial position

Advantageous if 2nd degree Financial

Advantageous: Advance Lump Ore Beneficiation (LOB)

Advantageous if 2nd degree Financial

EL Degree Degree (4yrs) / Mine Managers' certificate MMC (Mining)

Degree (4yrs) Chemical Engineering / Metallurgy

Degree (4yrs) / Government Certificate of competency GCC (Engineering)

Min 6 years’ experience of which 3 years at least in Managerial position

DU Degree or National Diploma (3yrs)

Degree or National Diploma (3yrs) / Surface Mine Overseer MQA Level 5

Degree or National Diploma in Chemical Engineering or Metallurgy (3yrs) and/or Advance Lump Ore Beneficiation (LOB)

Degree or National Diploma (3yrs)Execution roles: Government Certificate of competency GCC (Engineering)

Min 5 years’ experience of which 2 years at least in Managerial position

DL Degree or National Diploma (3yrs)

Mine Overseer Certificate / Mining Operations MQA Level 4

National Diploma in Chemical Engineering or Met. (3yrs) orAdv. LOB.Rail – Relevant rail certificate

N4 Engineering (Ideally N6/T3/S4 National Diploma in an Engineering + Trade)

Min 4 years’ experience of which 1 year at least in Supervisory position

CU National advanced certificate / Equivalent (2yrs)

Surface Rock Breaking MQA Level 3

National Diploma (3yrs) orIntro Lump Ore Beneficiation (LOB)

N3 + Trade Test Min 3 years’ experience

CL Occupational Certificate (1yr)

Blasting Assistant Level 2 / Competent A Level 2

Introduction to Lump Ore Beneficiation (LOB)

Internal = N2 + Trade TestExternal N3 + Trade Test

Min 2 years’ experience (if not from Mining and Metals Industry)

B Matric English with Mathematics and Science (Maintenance , Engineering and Processing) / Matric English with Mathematics Literacy (Mining and Functions)

(For internal candidates a Standard 8 (Grade 10) will be required for an internal promotion within the B band. External however remains as above)

055

WOLVEKRANS COLLIERYMINING RIGHT REFERENCE NUMBER:

MP30/5/1/2/2/379MR

SOCIAL AND LABOUR PLAN FOR SOUTH32

wolvekrans middelburg complex

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