Integrated Annual Report 2014

Human capital

Employee living standards

We use our CARE values as guiding principles to address issues affecting our employees, including:

  • Migrant labour: We are exploring alternative shift arrangements and bus-in-and-out programmes in order to get our employees home more often.
  • Sustainable employment: We invest in new projects and growth which will provide long-term employment.
  • Indebtedness: We address personal financial education through our CARE iMali programme and are exploring debt consolidation.
  • Housing/home ownership. We have almost completed high density residence conversions, are building family accommodation houses and have established an affordable home-ownership programme.
  • Standards of living and company alignment: We are attempting to align and reward employees, investors and management through gain share and profit share schemes.
  • Community unrest and sustainability: We engage directly with communities in order to identify priority and meaningful development projects and deliver on our social and labour plans.
  • Transformation, education and training programmes: We offer training and development for current and potential employees with focus on historically disadvantaged South Africans and women in mining.

HOUSING AND LIVING CONDITIONS

Sibanye has spent R608.5 million on the construction of new houses and upgrading high density residences since 2006.

Of the 44,411 (2013: 36,274) people employed by Sibanye at the end of 2014, 13,057 or 33.3% (2013: 13,469 or 37.1%) live in high density residences, 6,538 or 16.6% (2013: 6,495 or 17.9%) in family units built by the Group and 22,462 or 57.3% (2013: 12,686 or 35.0%) opted to receive a living out allowance.

HIGH DENSITY RESIDENCE UPGRADES

Our high density residences upgrade programme, completed in 2013 (excluding Cooke), represents a total investment of R425.2 million.

The high density residences occupancy rate has decreased significantly to 1.1 people per room from six to 10 people per room at the outset of the project in 2006.

FAMILY ACCOMMODATION

The Mining Charter requires mining companies to upgrade high density residences into family accommodation. Our approach is to build as many new family units as possible in viable, stable communities, as we do not believe the high density residence environment is suitable for families.

In 2014, a total of 195 houses still needed to be built – 50 of these will be built in Blybank early in 2015. The remaining 145 were offset with the upgrading of Phuthaditjhaba high density residence at Driefontein in line with the social and labour plan requirements.

The conversion of Beatrix West high density residence to family units is planned for 2015. Home ownership marketing and facilitation will start in 2015 with two “show houses” built in the West Wits area and another two to be built in the Free State.

The aim is to provide an affordable and sustainable home ownership scheme to Sibanye’s Category 3 to 8 employees without any compromise in quality and cost.

It is envisaged that the living out allowance, which is currently R2,000 per month with an additional 10% for first homeowners, should cover the cost of the bond as well as basic utilities.

The show houses built are two of five variants from which the prospective homeowners can choose. There are also multiple options for interior finishings.

The show houses are also fully furnished to show the prospective homeowners the actual look and feel of the completed house.

LIVING OUT ALLOWANCES

Living out allowances are negotiated collectively along with wage negotiations. A set amount is paid to employees who prefer to live in private accommodation rather than mine residences. With effect from 1 September 2014, the living out allowance rose to R2,000 per month.

Sibanye is addressing the issue of informal settlements by offering participation in an affordable home ownership scheme and engaging with local municipalities on spatial development, as described above.

Meals provided to employees [chart]
Family accommodation
  Driefontein Kloof Total
Committed495462957
Houses completed as at 1 January 2014300362662
Total houses completed at 31 December 2014300462762
Total houses outstanding at 31 December 2014195195
Percentage completed at committed target60.61%100%79.62%
Progressive accommodation upgrade and houses built in 2014
  High residence rooms Category 4-8 houses
(various unskilled and
semi-skilled employees)
  Planned per SLP by
31 December 2014
Completed Planned per SLP by
31 December 2014
Completed
Beatrix81381360
Cooke39256203121
Driefontein1,4001,574495300
Kloof1,7051,778462462
Total4,3104,2211,220883

MIGRANT LABOUR

More than 29% (2013: 29.9%) of our employees come to work on the mines from labour-sending areas.

Sibanye is attempting to address some of the social issues arising from the migrant labour system by testing alternative working arrangements at its operations. Different shift cycles and longer shifts should result in more time off for employees, potentially allowing them to get home more often as well as creating more employment opportunities and enhancing productivity on mature mines.

Government is encouraging mining companies to recruit from local communities (within 50km of mining operations) but the impact of this on the labour sending areas needs to be considered. Remittance from the mines is often the sole source of income for people living in labour-sending areas and it supports regional economies.

INDEBTEDNESS

In order to begin addressing the social impact of indebtedness on employees, we have introduced the CARE for iMali/Khathalel’imali/Hlokomela chelete (meaning “care for money” in isiXhosa and Sesotho) – that addresses personal financial management. Aimed particularly at curbing indebtedness, the programme also attends to the needs for home ownership and sharing value created by our operations. This financial training programme was launched in February 2014 and has been well received by employees. The success of our financial training in 2014 was measured in terms of the following criteria:

CARE for iMali:
  • 8,695 employees and community members were trained against a target of 8,600;
  • 204 community members were trained in Eastern Cape from 10 to 14 November 2014, inclusive in the target above;
  • training of visiting spouses has been conducted since August 2014 (a target was not set as this was requested by the visiting spouses);
  • retiring employees will receive training in 2015 through provident and pension fund administrators; and
  • dependants in Grade 11 will be trained in 2015 by educators who were trained to be master trainers for schools in the Free State and Gauteng provinces.
Financial services:
  • a service provider has been contracted to audit and validate current garnishee orders, and will assist employees in managing excessive debt, providing voluntary counselling to indebted employees;
  • R47,582 was refunded to employees when illegal deductions were stopped and money was collected from creditors; and
  • the audit found some employees with erroneous outstanding balances and prevented further deductions so that 414 employees were saved an amount of R221,625.
Loan sharks:
  • Protection Services identified loan sharks operating around operations and evicted them.
Notices of deduction:
  • Deductions from employees by high density residence shops, sporting goods outlets and recreation clubs were stopped.

ILLEGAL MINING – A THREAT TO SAFETY AND HEALTH

Illegal underground mining and surface gleaning on waste rock dumps, old metallurgical plant sites and slimes dams by unemployed people (“zama zamas” in isiZulu) continue to plague the Group. Underground illicit mining is particularly prevalent at Kloof and has increased at Driefontein, which is particularly susceptible to surface gleaning.

Kloof was originally targeted due to its close proximity to the informal settlements on the greater West Rand. These settlements are home to the majority of illegal miners, mainly foreign nationals, who are unemployed. Influential gold syndicates are also well-established in this area.

Surface gleaning prevailed at Driefontein, on the rock dumps and old metallurgical plant sites, until the demise of Blyvooruitzicht mine near Carletonville. When production ceased at this mine, there was some respite from surface gleaning at Driefontein.

The volume of high-grade gold-bearing material (gbm) on surface has also been depleted, moving the illegal miners underground at Driefontein, which is also in close proximity to illicit syndicates and buyers.

These small-scale mining activities are deemed illegal because all mining rights in South Africa are owned by the state. Companies and individuals must, therefore, apply for the right to mine.

In 2014, 112 (2013: 144) illegal mining incidents were reported at our operations and 255 (2013: 323) illegal miners were arrested. Sibanye managed to recover 329kg (2013: 435kg) of gbm with an approximate value of R112,240 (2013: R528,117).

Of the 122 cases (2013: 125) of illegal mining, involving 255 perpetrators (2013: 126), registered nationally with the South African Police Service in 2014, a total of 226kg (2013: 223,641kg) of gbm, to the value of R206,853 (2013: R486,610), was recovered – and 43 (2013: 85) incidents of collusion between illegal miners and mine employees were recorded in the year.

Sibanye instituted disciplinary action against 43 (2013: 87) employees, which resulted in the discharge of eight (2013: 41) employees and two (2013: 15) final written warnings were issued – one (2013: 20) employee was found not guilty or had the case withdrawn and, to date, results for 25 (2013: 11) cases are still outstanding.

Criminal charges for illegal mining range from trespassing to the possession of unwrought precious metals – offences punishable in terms of the MPRDA and the MHSA. Sentences handed down by the courts range from fines of R500 to R30,000 or imprisonment from two to 32 months.

Sibanye has instituted preventative measures, such as fencing off specific areas, establishing only one access/egress point, activating facial biometric access control on various shafts and greater visibility with the deployment of additional employees on shafts and in crush offices.

Illegal mining not only undermines the financial viability of our operations, these activities also present severe safety and health consequences for the illegal miners and our employees. Wanton use of explosives and other stolen mining equipment, and tampering with established infrastructure, compromise the stability of compliant mining environments and thwart rescue efforts in an emergency. In addition, illegal miners are not protected from occupational health hazards, such as silicosis and toxic methane gas, inherent in the mining environment.