Integrated Annual Report 2014

Social and relationship capital

Local economic development projects

We commenced a number of projects in 2014, some of which were completed with the remainder carried forward for completion during the course of 2015/16 in accordance with the implementation plans of the social and labour plan relating to each operation.

Where the Cooke operations are concerned, projects not included within the revised social and labour plans but for which commitments are outstanding, negotiations are in progress to conclude a memorandum of understanding with the relevant municipalities that would consider alternative high-impact projects in lieu of those unlikely to be self-sustainable in the long term and which have limited benefits for the intended communities.

Certain projects described in our 2013 Integrated Annual Report were discontinued in 2014 as they did not comply with the self-sustainability requirements and our high-impact strategy for development projects, and the respective social and labour plans were revised accordingly. The key challenge experienced in most of the projects undertaken in 2014 was the time taken in engaging with communities and other key stakeholders, due mainly to the wide area of impact of the operations. Project implementation without community engagement and buy-in is detrimental to the sustainability of the project. Community engagement is, by nature, time-consuming and may delay implementation and commissioning of projects if there is no buy-in. In late 2014, as part of our new community engagement and development strategy, we began establishing community engagement structures to promote continuous dialogue with host communities and municipal structures in order to reduce the time taken to facilitate development interventions, and to obtain consensus on project implementation.

Operationally, detailed feasibility assessments on projects already underway are being done, in order to avoid delays in commissioning and implementing new community development projects. Responsible exit strategies must also be considered. Turnaround strategies for some of these projects will be developed and implemented in 2015 while focus is maintained on the high-impact nature of projects. It is important to note that the social and labour plan is a “living document” so changes can be made to the project scopes; additional projects can be included where these are seen to be relevant to local economic and community development.

REVITALISING DISTRESSED MINING COMMUNITIES

With a view to eventual mine closure, and after extensive engagement with local, provincial and national government, we have changed our approach from building individual houses and upgrading high density residences for employees to establishing houses in standalone villages that would be integrated into the housing strategies of the respective local municipalities.

In October 2012, President Jacob Zuma announced a Special Presidential Package to address the living conditions of mineworkers and the promotion of sustainable human settlements for all mining communities in the wake of the Marikana tragedy.

Government identified housing as an issue, which led to the problems at Marikana and which are reflected as a countrywide problem. People continue to seek employment in areas without adequate investment and co-ordination of human settlement planning (which includes basic service delivery such as sanitation, electricity, refuse removals, supply of water, roads and other infrastructure, schools, healthcare facilities and police stations, as well as retail sites).

A task team was formed to bring government, business, organised labour and communities together to address the housing and municipal infrastructure needs in key mining areas of South Africa, such as Rustenburg, Lephalale, Emalahleni, Westonaria, Welkom, Klerksdorp and Carletonville. Public policy would then be developed to integrate mineworkers into sustainable human settlements.

This has since been defined as the Revitalisation of Distressed Mining Communities Project, and is aligned with the Mining Charter. The Mining Charter commits mining companies, in consultation with stakeholders, to establish measures to improve the standard of employee housing, including upgrading of high density residences, conversion of high density residences to family units and promotion of home ownership. This presents opportunities for alignment and collaboration between mining companies and the state.

Westonaria and Merafong in South Africa’s Gauteng province, and Welkom in the Free State, have been accorded priority status in the revitalisation programme. For example, Westonaria and, therefore, Sibanye’s Kloof and Cooke operations, will serve as a pilot project. Sibanye has adopted a proactive approach by engaging with the Office of the Presidency and its project management consultants at an early stage in the project in order to influence policy change and align Sibanye’s social and labour plans with government plans. The Corporate Affairs team has engaged representatives of Human Settlements to discuss constructive ways of eradicating informal settlements in mine host communities such as Merafong. Positively for the proposed Cooke local economic development projects, Randfontein Local Municipality has resolved to approve plans for the establishment of Bhongweni Township and Goldwest Village. Through the Bhongweni project, 280 existing houses will be allocated to current occupants who are employed by the Cooke 1, 2 and 3 operations and who will eventually become home owners in line with the Sibanye Home Ownership Scheme. A further 260 erven will be made available to developers for sale to private owners in order to develop an integrated settlement and move away from the concept of mine villages. The Goldwest project involves the establishment of a township by creating approximately 1,000 erven, of which 750 erven will be donated by Sibanye to Randfontein Local Municipality for local development. The project will benefit Sibanye’s Cooke 1, 2 and 3 employees as well as Randfontein residents.

This is an ongoing process and bodes well for Sibanye in terms of sustainable closure and creating stakeholder value through a culture of caring.

Projects in 2014

  • Livestock development and improvement

    This intervention seeks to add value to livestock farming within rural communities of the labour-sending region of the Eastern Cape, particularly areas where the majority of our employees originate. It is co-funded by Sibanye in partnership with the Alfred Nzo and Chris Hani district municipalities. Each Sibanye operation contributes to funding on a pro-rata basis in terms of production profile.

    Performance

    The project uses village link persons (VLPs) who have been set up as small, medium and micro enterprises (SMMEs), to supply animal health services, including vaccines, to livestock owners. It is implemented by the non-profit organisation (NPO) and implementing agent, Mngcunube Development Agency at a cost of R2.4 million a year, excluding contributions by the respective municipalities.

    Outcome

    The livestock mortality rate has been lowered while yield has increased in all instances. The breeding stock has improved to the extent that it can be auctioned alongside commercial farmers’ breeds.

    Farmers with stock of more than 500 will be referred to the Department of Agriculture for allocation of redistributed land.

    Impacts

    Poverty alleviation, skills development and enterprise development are among the benefits of this project.

    The implementing agent trained 13 independent VLPs and plans to train another 16 by the end of the programme in 2017. A total of 306 villages and 5,379 farmers are reached by this project.

  • Waste recycling in Merafong

    This project comprises a buy-back centre in Fochville, Gauteng, where recyclable waste is collected, separated and sold. The project is a partnership between Sibanye, Harmony, AngloGold Ashanti and the Merafong City Local Municipality. This is Phase 1 and other sites are planned for 2015.

    Performance

    The project has reached its break-even target of 100t of recyclables collected per month. A can compressor was acquired to process the significant stockpile and compost manufacture began in the latter part of 2014. A total of 12 portable vehicle-mounted skips were also custom made, and have been placed at shopping centres and business parks nearby, and rotated on a weekly basis or as required. The project partners have contributed R6 million since its inception in 2012 (R1 million from Sibanye in 2014).

    Outcome

    The volume of waste transported to the municipal landfill sites has reduced and residents of the surrounding informal settlements have been incentivised to collect recyclables for immediate remuneration.

    All of Sibanye’s operations in the West Wits area contribute recyclable waste. Interest has been expressed to expand this project to other sites in Merafong. The planned exit strategy focuses on making this a self-sustaining project, which functions as a standalone business.

    Impacts

    Poverty alleviation and a more positive environmental impact are among the benefits derived from this project, which employs 26 community members. An estimated 250 jobs have been created indirectly through the sale of recyclable waste to the buy-back centre.

  • Blybank clinic

    This healthcare initiative entailed construction of a clinic to address the health needs of the Blybank and neighbouring communities. A temporary satellite clinic was set up in 2006, operating one day a week and serving the local community, which comprises mainly mineworkers and their families. As the community increased in size, the number of service delivery days were extended to three per week. The facility then employed a professional nurse, an enrolled nurse and an assistant nurse. The permanent facility was completed in 2014.

    Performance

    The clinic is now fully operational. The deed of transfer from Sibanye to the Department of Health was registered on 25 June 2014 and ownership of the property was transferred to the Gauteng government. A total of R4.6 million was spent by Sibanye.

    Outcome

    The communities of Blybank, Vukusheshe, the Maseru informal settlement, as well as East Driefontein and Mooitooi (within the Merafong City Local Municipality) now have ready access to healthcare.

    Impacts

    Healthcare infrastructure has been established, serving 2,656 patients under the age of five and 9,073 older than five by the end of 2014. The facility has 12 permanent staff members and three fixed contract employees, employed by the Department of Health. The official handover ceremony is planned for 2015.

  • Management of invasive alien trees and beneficiation

    This poverty alleviation and biodiversity management project is a continuation of the invasive alien species eradication project that began in 2012. It will be expanded to include a permitted planting of trees that can be felled for commercial purposes in future. It has also spawned a beneficiation project for the production of charcoal for various end users. Sibanye plans to roll this out at each operation in the West Rand, including the municipalities of Randfontein, Westonaria and Merafong. Beneficiaries are chosen from each area in consultation with the respective municipality.

    Performance

    Operations fund the initial set-up and running costs, mapping of the alien tree species, and training of the SMMEs. Beneficiaries are chosen from the community, and the necessary equipment (such as chainsaws and PPE) is also sourced locally. A total of R6 million has been budgeted for the projects to be undertaken by each operation for the remainder of the current Social and labour plan period ending in 2016. Approximately R1 million was spent on this project in 2014.

    Outcome

    Sibanye’s exit from the project will entail:

    • progressively reducing funding of resources;
    • reducing management involvement when acceptable levels of capacity have been reached;
    • arranging a third-party audit of the project’s sustainability, including systems, policies and procedures;
    • becoming an anchor client for the project;
    • formally handing over the project to the community once it is self-sustaining from an operational perspective;
    • providing access to land for permitted forestry and harvesting; and
    • facilitation of a charcoal production and offtake.
    Impacts

    Poverty alleviation, skills development and biodiversity management are among the benefits of this project. Models for self-sustaining businesses are being investigated.

  • “YOU REAP WHAT YOU SOW”

    This agriculture project is in the Cooke operations’ Social and labour plan and is intended to create jobs for local community members in Mohlakeng through sustainable crop production. A total of 20ha of land owned by the Randfontein Local Municipality have been allocated to the project. Partners include the Randfontein Local Municipality and the Gauteng Department of Agriculture and Rural Development.

    Performance

    Sibanye has fenced off the project in the interests of security, and provided farm infrastructure, such as a shed, shade netting, an irrigation system and a tractor, among others. Beneficiaries have been trained in basic farm management. Small-scale crop production has already won awards for quality. Sibanye spent approximately R600,000 on this project in 2014. Plans are being accelerated to make this project self-sustaining by the end of 2015.

    Outcome

    A sustainability review is underway with a view to appointing an established implementation agent who will ensure economies of scale and contractual product off-take agreements as part of the project sustainability plan.

    Impacts

    Poverty alleviation has been a major benefit of this project with 16 trained beneficiaries from the local Mohlakeng community (10 female and six male).

  • AREDIRISANENG AGRICULTURAL CO-OPERATIVE

    This project is in the agricultural district of Elandsfontein, Randfontein. It is a partnership between the local municipality, as the landowner, and the Gauteng Department of Agriculture and Rural Development, Sibanye and local beneficiaries.

    Performance

    The project phases included the build-up phase, where research was undertaken; stakeholders and beneficiaries were identified and selected; farm infrastructure and inputs/equipment were procured. This was followed by the operational phase, where beneficiaries were trained, while planting and selling began on a limited scale. Mentoring and coaching on farm maintenance and management are ongoing. Approximately R442,000 has been spent out of the allocated R2.1million budget. The service provider contract is being reviewed and synergies are being investigated.

    Outcome

    A sustainability review is planned for early 2015 with the aim of appointing an established implementation agent who will ensure economies of scale and contractual product off-take agreements as part of the project sustainability plan.

    Impacts

    Poverty alleviation is a benefit of this project, which has 10 beneficiaries from the surrounding community. Adjacent land will be made available for expansion.

  • Thuto Bokamoso primary school infrastructure upgrade

    The school is situated within the Randfontein Local Municipality and involves upgrading of classrooms, ablution facilities, construction of a new school hall and kitchen. Work is being carried out in consultation and partnership with the Gauteng DoE.

    Performance

    The old hall was converted into a classroom and science laboratory. Work planned for 2015 includes the construction of a kitchen and ablution facilities. Sibanye has spent R1.4 million to date and has allocated another R1.3 million to the project.

    Outcome

    The facilities will be handed over to the Gauteng DoE by the end of 2015. The school governing body will be responsible for maintenance.

    Impacts

    Infrastructure development for the benefit of at least 350 learners residing in the surrounding farming communities and Randfontein. The contractor and labourers have also been procured from the local community.

  • Personal protective equipment (ppe) manufacture

    This project involves the establishment of a PPE clothing manufacturing facility to supply Sibanye’s operations and other industries. Partners include the Westonaria Local Municipality, which has identified the project beneficiaries.

    Performance

    A facility has been secured and machinery has been purchased for the 15 beneficiaries to be employed in sewing, embroidery and manufacture. Following preliminary training towards the end of 2014, further training in garment making and technical skills training were facilitated – initially through Sibanye’s portable skills programme and agreements with existing suppliers to uphold quality control required by the mines. The allocated budget is R2.3 million and R500,000 has been spent to date on equipment and training.

    Outcome

    Initial off-take agreements with Sibanye’s operations will ensure start-up sustainability until external supply has been secured with the assistance of the municipality.

    Impacts

    The benefits of this project include poverty alleviation and skills development. Employment has been provided for at least 15 beneficiaries from communities around Westonaria and this number is expected to increase as production ramps up. The project will contribute towards the gross value added by Westonaria to the manufacturing sector of the country by creating self-sustaining producing entities.

  • Mathematics and science programme

    A partnership between the Beatrix Operation, Free State DoE and the Kutlwanong Centre for Maths, Science and Technology, this intervention seeks to address the challenge of poor academic results in the schools within the region by providing extracurricular mathematics and science tutorials for learners and teachers.

    Performance

    In its second year, this programme has contributed to a 96.9% matric pass rate. At the end of the 2014 academic year, university entrance of 46.9% was achieved, which is higher than the national average of 28.3%. There were also 29 distinctions in mathematics and 29 in physical science. Approximately R2 million has been spent to date. Proposals are being finalised for the next three-year phase of an enhanced programme.

    Outcome

    The programme supports learners and teachers with tuition on Fridays, Saturdays, Sundays and public holidays throughout the year, as well as winter classes. Teaching material, study guides, science equipment, stationery and refreshments are provided to ensure that the environment is conducive to achieving the desired goals.

    Impacts

    Skills development is a benefit of this project, which has reached 232 learners at four high schools in Virginia, 10 high schools in Welkom and 10 high schools in Odendaalsrus – all within the Matjhabeng Local Municipality of the Free State province.

  • Sekgweng intermediate school upgrade

    Upgrading and renovation of this school has been undertaken by Sibanye’s Beatrix operation. This farm school is situated in Bultfontein within the Tswelopele Local Municipality of the Free State province.

    Performance

    Beatrix built three classrooms, ablution facilities and a kitchen for the school feeding scheme. A total of R1.6 million was spent on this project.

    Outcome

    The project was completed successfully and handed over to the Free State DoE.

    Impacts

    Infrastructure development was a benefit of this project, which improved facilities to provide a conducive learning environment for 296 learners.

  • Stilte primary farm school upgrade

    The objective of this project was to provide new facilities, upgrade and renovate existing classrooms for learners and staff. The school is situated close to the Beatrix operation’s Oryx shaft in the Matjhabeng Local Municipality. The Free State DoE, which requested this upgrade, is a partner in the project.

    Performance

    Beatrix upgraded water supply and built new ablution facilities and a kitchen for the school feeding scheme. Renovations were undertaken on the classroom and principal’s office, and carports, paving and fencing were installed. A total of R550,000 has been spent on this project.

    Outcome

    Handover to the Free State DoE is expected in the first quarter of 2015.

    Impacts

    The benefits of this infrastructure development project include improvement of facilities and therefore a better learning environment for approximately 75 learners currently – many of them children of people employed by Sibanye.

Projects planned for 2015

  • Construction of JS Skenjana Senior Secondary School

    Location
    • Idutywa, Eastern Cape province
    Budget (operation)

    R10 million

    (2 million from each Sibanye operation)
    Beneficiaries
    • 1,612 learners from five feeder schools in the area
    • Local construction companies and labourers
    Outputs
    • Improvement of facilities
    • Upholding a track record of excellent matriculation results
    Impacts
    • Education
    • Infrastructure development
    • Skills development
  • Incubation hubs for training of small, medium and micro enterprises (SMMEs) in construction of employee and municipal housing projects

    Location
    • Mphahlwa Village, Merafong Local Municipality, Gauteng province
    • Glenharvie, Westonaria Local Municipality, Gauteng province
    • Bhongweni, Randfontein Local Municipality, Gauteng province
    Budget (operation)
    • R3 million (Driefontein)
    • R4 million (Kloof)
    • R5.5 million (Cooke)
    • R3 million (Cooke)
    Beneficiaries
    • Up to 50 people from surrounding communities
    Outputs

    Creation of SMMEs in the construction sector with accredited skills in various building disciplines, including brick making, plumbing, welding, plastering and carpentry, among others

    Impacts
    • Skills development
    • Poverty alleviation
    • Eradication of informal settlements
    • Employee home ownership in integrated settlements
  • Simunye Senior Secondary School (joint venture with Gold Fields’ South Deep mine): provision of land and construction of two laboratories, including equipment

    Location
    • Bekkersdal, Westonaria Local Municipality, Gauteng province
    Budget (operation)

    R2 million

    (Kloof)
    Beneficiaries
    • Up to 1,500 learners who are currently in prefabricated structures
    • Local construction companies and labourers
    Outputs
    • Improvement of facilities
    • Upholding a track record of excellent matriculation results
    Impacts
    • Education
    • Infrastructure development
    • Skills development
  • Westcol Further Education and Training (FET) satellite campus (joint venture with South Deep)

    Location
    • Bekkersdal, Westonaria Local Municipality, Gauteng province
    Budget (operation)

    R3 million

    (Kloof)
    Beneficiaries
    • Up to 400 learners initially
    • Local construction companies and labourers
    Outputs
    • Availability of facility and curriculum not provided by Sibanye Gold Academy
    • Alleviate travel and accommodation expenses at distant colleges
    Impacts
    • Education Infrastructure
    • Cost savings and convenience for local residents
  • Science laboratory at Mamello Secondary School

    Location
    • Meloding Township, Matjhabeng Local Municipality, Free State province
    Budget (operation)

    R1 million

    (Kloof)
    Beneficiaries
    • Up to 200 learners
    • Local construction companies and labourers
    Outputs

    Additional facilities required, as identified by the Free State DoE

    Impacts
    • Education
    • Infrastructure development
    • Skills development
  • Mathematics laboratory at Embonisweni Primary School

    Location
    • Thabong Township, Matjhabeng Local Municipality, Free State province
    Budget (operation)

    R1.5 million

    (Beatrix)
    Beneficiaries
    • Up to 200 learners
    • Local construction companies and labourers
    Outputs

    Additional facilities required, as identified by the Free State DoE

    Impacts
    • Education
    • Infrastructure development
    • Skills development
  • School hall at Taiwe Secondary School

    Location
    • Theunissen, Masilonyana Local Municipality, Free State province
    Budget (operation)

    R6 million

    (Beatrix)
    Beneficiaries
    • Up to 500 learners, including from surrounding schools who will use the hall for matric exam sittings
    • Local construction companies and labourers
    Outputs
    • Additional facilities required as identified by the Free State DoE
    • Following the request in December 2014, Sibanye will endeavour to complete construction in time for the 2015 matric exam sitting
    Impacts
    • Education
    • Infrastructure development
    • Community development