Mining Charter compliance

Mining Charter Scorecard
Description Measure Compliance target by 2014 Progress achieved by 2013   Weighting Compliance
Beatrix Driefontein Kloof
Actual Rating Actual Rating Actual Rating

Has the company reported the level of compliance with the charter for the calendar year?

Integrated ReportMarch 2014 YesY YesY YesYY/NYes
See pages: Group profile, Chief Executive’s review, Determining sustainability, Sustainability strategy and Financial capital

Minimum target for effective HDSA ownership

HDSA ownership26% 26%Y 26%Y 26%YY/NYes
See pages: Human capital: Employment equity and transformation and Independent Assurance Report
Housing and living conditions
Conversion and upgrading of hostels to attain the occupancy rate of one person per room Conversion and upgrading of hostels into family unitsOccupancy rate100% reduction 84%Y 75%Y 75%YY/NYes
Family units100% 0%0% 60%Y 100%YY/N 
Hostel upgrades100% 100%Y 100%Y 100%YY/N 
See pages: Chief Executive’s review, Human capital: Housing and living conditions and Independent Assurance Report
Procurement and enterprise development
Procurement spent on BEE entitiesCapital goods40% 52%5% 54%5% 48%5%5%Yes
Services70% 55%4% 60%4% 55%4%5% 
Consumable goods50% 50%2% 59%2% 60%2%2% 
Multinationals*0.5% 0%0% 0%0% 0%0%3% 
See pages: Financial capital and Independent Assurance Report
Employment equity
Diversification of the workplace to reflect the country’s demographics to attain competitivenessTop management (Board)40% 40%3% 40%3% 40%3%3%Yes
Senior management (Exco)40% 40%4% 40%4% 40%4%4% 
Middle management40% 38%2.4% 22%1.6% 13%1%3% 
Junior management40% 43%1% 47%1% 49%1%1% 
Core and critical skills40% 48%5% 55%5% 57%5%5% 
See pages: Human capital: Employment equity and transformation and Independent Assurance Report
Human resource development
Development of requisite skills, including support for South African-based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation, and environmental conservation and rehabilitationSpend as percentage of payroll5% 5%24% 5.7%25% 4.5%22.5%25%Yes
See pages: Human capital: Human resource development, Independent Assurance Report
Community development*
Conduct ethnographic community consultative and collaborative processes to delineate community needs analysisProject implementationComplete projects 0%0% 0%0% 0%0%15%Yes to the extent it has been able to do so
See pages: Chief Executive’s review, Engaging with stakeholders, Financial capital, Human capital: Housing and living conditions, Social capital, Case study: Rooting out invasive tree species and Independent Assurance Report
Sustainable development
Improvement of the industry’s environmental managementEMP implementation100% 100%12% 100%12% 100%12%12%Yes
Improvement of the industry’s mine health and safety performanceHealth and safety100% 100%12% 100%12% 100%12%12% 
Utilisation of South African-based research facilities for analysis of samples across the mining value chainSample analysis100% 100%5% 100%5% 100%5%5% 
See pages: Chief Executive’s review, Financial capital, Human capital:Safety, Health, Housing and living conditions, Social capital, Case study: Rooting out invasive tree species, Managing water, Energy use, Approach to climate change and carbon emissions, Air-quality management, Land management, rehabilitation and closure, Environmental stakeholders, Total area of influence and Independent Assurance Report
Total score   79.4%  79.6%  76.5% 100%Yes

* Multinationals (3%) and mine community development (15%) not counted.

The Mining Charter and Scorecard above summarises the performance of all three operations for the 2013 calendar year. All operations appear to be on track to meet the one-person-per-room occupancy target while Kloof is the only operation to have met targets for hostel upgrades and family units. Driefontein still has to build 195 family units while Beatrix has not begun the conversion programme. Operations have until the end of March 2014 to meet the one-person-per-room target, and non-negotiable target in terms of the revised Mining Charter. Achieving a demographically representative profile in the middle-management level remains a challenge, particularly at Driefontein and Kloof. Notwithstanding the daunting task of meeting the 10% target of women in core mining occupations, the representation of women in middle management is also not demographically aligned. Much progress has been made towards meeting the services target with all operations having met over 78% of the target.

Beneficiation: The contribution of a mining company towards beneficiation (effective from 2012) is measured in terms of additional production volume contributory to local value addition beyond the baseline. The compliance target set for 2014 is Section 26 of the MPRDA (percentage above baseline). While Sibanye acknowledges the inclusion of beneficiation in the Mining Charter, the Group wishes to highlight the fact that very little clarity has been provided in terms of what is required. While Sibanye fully supports the concept of promoting local beneficiation, particularly among host- and labour sending community members, as a gold-mining company with a very unique mandate and set of skills, the Group has not been in a position to take the lead on beneficiation. Sibanye eagerly awaits the State’s guidance on how beneficiation will be rolled out, and Sibanye supports the process as far as it is practicable from an industry point of view.