Independent Assurance Report on Selected Sustainability Performance Indicators

TO THE DIRECTORS OF SIBANYE GOLD LIMITED

We have undertaken a limited assurance engagement on selected sustainability performance indicators, presented in the Sibanye Gold Limited (SGL) Sustainability Report for the year ended 31 December 2013 (the Report). This engagement was conducted by a multi-disciplinary team of health, safety, environmental and assurance specialists with extensive experience in sustainability reporting.

Subject matter

We are required to provide limited assurance on the selected sustainability performance indicators set out in the table below.

Selected Sustainability Performance Indicators Unit
(A) PREPARED IN ACCORDANCE WITH THE GLOBAL REPORTING INITIATIVE G4 SUSTAINABILITY REPORTING GUIDELINES (GRI G4 GUIDELINES)

Environment

 
Total CO2 equivalent emissions, Scope 1-2 tonnes
Electricity MWh
Number of environmental incidents – Level 3 and above Number
Total water withdrawal Ml
Diesel TJ

Health

 
Number of cases of silicosis reported Number of cases
Number of cases of noise-induced hearing loss (NIHL) reported Number of cases
Number of cases of chronic obstructive airways disease (COAD) reported Number of cases
Cardio-respiratory tuberculosis (CRTB) Number of new cases
Number of employees in highly active anti-retroviral treatment (HAART) programme Cumulative
Percentage of workforce on the voluntary counselling and testing (VCT) programme Percentage

Safety

 
Lost-time injury frequency rate (LTIFR) Rate
Medically treated injury frequency rate (MTIFR) Rate
Number of fatalities Number

Training spend

 
Training spend Rm

Social

 
Total socio-economic development (SED) spend Rm

(B) PREPARED IN COMPLIANCE WITH THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING AND MINERALS INDUSTRY (BBSEEC) (2002) AND RELATED SCORECARD (2004)

Rand value spent on approved social and labour plan (SLP) projects Rm

C) PREPARED IN COMPLIANCE WITH THE AMENDMENT TO THE BBSEEC (2010) AND RELATED SCORECARD (2010)

Employment equity

 
Percentage historically disadvantaged South Africans (HDSAs) in management who are classified as designated groups and who are employed at management levels (excluding foreign nationals and white males) Total percentage at top management (Board)
Senior (Exco)
Middle (E Band)
Junior (D Band)

Housing and living conditions

 
Number of houses to be built as part of the housing and hostel upgrade programme Number of houses built in 2013
Number of hostels to be upgraded as part of the housing and hostel upgrade programme Number of hostel rooms upgraded in 2013
Conversion or upgrading of hostels to attain an occupancy rate of one person per room by 2014 Occupancy rate 2013
Conversion or upgrading of hostels to attain an occupancy rate of one person per room by 2014 % reduction in occupancy rate

Procurement and enterprise development

 
Total procurement spend from BEE entities Rm
BEE procurement spend: capital goods Percentage (%)
BEE procurement spend: services Percentage (%)
BEE procurement spend: consumable goods Percentage (%)

Directors’ responsibility for the report

The Directors are responsible for the selection, preparation and presentation of the selected sustainability performance indicators. This responsibility includes the identification of stakeholders and stakeholder requirements, material issues, for commitments with respect to sustainability performance and for the design, implementation and maintenance of internal control relevant to the preparation of the Report that is free from material misstatement, whether due to fraud or error.

The Directors are also responsible for the selection and application of the following reporting criteria used in the preparation and presentation of the respective selected sustainability performance indicators:

(a) the GRI G4 Guidelines;
(b) the BBSEEC (2002) and related Scorecard (2004); and
(c) the Amendments to the BBSEEC (2010) and related Scorecard (2010).

Our independence and quality control

We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

In accordance with International Standard on Quality Control 1, KPMG Services Proprietary Limited maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility

Our responsibility is to express limited assurance conclusion on the selected sustainability performance indicators in (a), (b) and (c) based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board. The Standard requires us to plan and perform our engagement to obtain limited assurance about whether the selected sustainability performance indicators are free from material misstatement.

A limited assurance engagement undertaken in accordance with ISAE 3000 involves assessing the suitability in the circumstances of SGL’s use of the reporting criteria set out above as the basis of preparation for the selected sustainability performance indicators, assessing the risks of material misstatement of the selected sustainability performance indicators whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the selected sustainability performance indicators. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks.

The procedures we performed were based on our professional judgment and included inquiries, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records.

Given the circumstances of the engagement, in performing the procedures listed above we:

  • interviewed management and data owners to obtain an understanding of the internal control environment, risk assessment process and information systems relevant to the sustainability reporting process;
  • tested the processes and systems to generate, collate, aggregate, monitor and report the selected sustainability performance indicators;
  • inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting processes against the reporting criteria;
  • evaluated the reasonableness and appropriateness of significant estimates and judgments made by the directors in the preparation of the sustainability performance indicators;
  • undertook site visits at Beatrix, Kloof, Driefontein, St Helena Hospital, Leslie Williams Hospital and Libanon Business Park; and
  • evaluated whether the selected sustainability performance indicators presented in the Report are consistent with our overall knowledge and experience of sustainability management and performance at SGL.

The procedures performed in a limited assurance engagement vary in nature from, and are less in extent than for, a reasonable assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether SGL’s selected sustainability performance information as set out in (a), (b) and (c) have been prepared, in all material respects, in accordance with the relevant reporting criteria.

Limited assurance conclusions

In relation to the Report for the year ended 31 December 2013, we report:

  1. On the selected sustainability performance indicators prepared in accordance with the GRI G4 Guidelines

    Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected sustainability performance indicators in (a) above are not prepared, in all material respects, in accordance with the GRI G4 Guidelines.

  2. On the selected sustainability performance indicators prepared in compliance with the BBSEEC (2002) and related Scorecard (2004)

    Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected sustainability performance indicators in (b) above are not prepared, in all material respects, in compliance with the BBSEEC (2002) and related Scorecard (2004).

  3. On the selected sustainability performance indicators prepared in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010)

    Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected sustainability performance indicators in (c) above are not prepared, in all material respects, in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010).

Other matters

No assurance procedures were performed on the previous Sustainability Report. The information relating to the prior reporting periods has not been subject to assurance. Our report does not extend to any disclosures or assertions relating to future performance plans and/or strategies disclosed in the Report.

The maintenance and integrity of SGL’s website is the responsibility of SGL management. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the Report or our independent assurance report that may have occurred since the initial date of presentation of the Report on the SGL website.

Restriction of liability

Our work has been undertaken to enable us to express limited assurance conclusions on the selected sustainability performance indicators to the Directors of SGL in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than SGL, for our work, for this report, or for the conclusion we have reached.

KPMG Services Proprietary Limited

PD Naidoo
Director

Johannesburg
22 April 2014

KPMG Crescent
85 Empire Road
Parktown
Johannesburg 2193

J Erasmus
Director

Johannesburg
22 April 2014

KPMG Crescent
85 Empire Road
Parktown
Johannesburg 2193

Assured data

Key sustainability performance data selected by Sibanye for assurance by KPMG Services
  Information assured Page

Environment

  
Total CO2 equivalent emissions, Scope 1-2 4,407,671.36t Natural capital: Approach to climate change and carbon emissions
Electricity 3,773,919.16MWh Natural capital: Energy use
Number of environmental incidents – Level 3 and above 1 incident Natural capital: More than compliance
Total water withdrawal 76,636.61Ml Natural capital: Managing water
Diesel 229.40kl Natural capital: Materials and waste and Energy use

Health

   
Number of cases of silicosis reported 129 cases Human capital: Health
Number of cases of NIHL reported 88 cases Human capital: Health
Number of cases of COAD reported 74 cases Human capital: Health
CRTB (number of new cases) 480 Human capital: Health
Number of employees in HAART programme (cumulative) 3,844 Human capital: Health
Percentage of workforce on VCT programme 11.48% Human capital: Health

Safety

   
LTIFR 6.13 per million hours worked Human capital: Safety
MTIFR 4.32 per million hours worked Human capital: Safety
Number of fatalities 9 Human capital: Safety

Social

   
Total SED spend R1,050 million Social capital
Training spend R316 million Social capital
Mining Charter

Employment equity

   
Percentage HDSAs in management who are classified as designated groups and who are employed at management levels Top (Board): 56%
Senior: 31%
Middle: 32%
Junior: 47%
Human capital: Employment equity and transformation

Housing and living conditions

   
Conversion or upgrading of hostels to attain an occupancy rate of one person per room by 2014 1.15 (17% reduction) Human capital: Housing and living conditions
     
Number of houses built as part of the housing and hostel upgrade programme 100 houses Human capital: Housing and living conditions
     
Number of hostel rooms upgraded as part of the housing and hostel upgrade programme 184 Human capital: Housing and living conditions

Local economic development

   
Rand value spent on approved SLP projects R12,41 million Social capital

Procurement and enterprise development

Procurement spend from BEE entities (in line with the Mining Charter categories of capital goods, services and consumable goods) Capital: 51%
Services: 59%
Consumables: 56%
Financial capital
Total procurement spend from BEE entities (BBSEEC 2010) R2,858 million Financial capital