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Engaging with our stakeholders
Northam ensures that the principles of openness, integrity and accountability are adopted at every level of engagement with identified stakeholders. The company defines its stakeholders as those individuals, groups and entities that are directly affected, both positively and negatively, by its activities. Northam believes that its ability to conduct its day-to-day business is influenced by its capacity to develop and maintain longstanding relationships with its stakeholders.
The company has identified those individuals/ groups with whom the company engages who have an interest in the company and its operations, and on whom the company has an impact by way of a formal stakeholder engagement process.
Northam timeously reports information that is relevant and meaningful and to this end, the company implements a sustained programme of communication directed at its stakeholders, including shareholders and their advisors, employees, unions, communities, government and regulators and non-governmental organisations (NGOs).
Former executive director, Bernard van Rooyen, is a member of the executive of the Chamber of Mines of South Africa, and continues to represent Northam’s interests in the Chamber’s representation to and deliberations with government.
Stakeholder concerns are raised in various ways, including formal concerns or queries lodged in writing with the company, concerns raised during stakeholder forums or informal discussion. Northam responds to these concerns appropriately and timeously.
Although the board and its sub-committees are kept informed of stakeholder concerns, issues raised by stakeholders of the company’s operations are dealt with directly at the operational level.
The company regularly consults with regulatory authorities at local, provincial and national level, including the Department of Mineral Resources (DMR), the Department of Water Affairs (DWA), the Department of Environmental Affairs (DEA) and the Department of Labour (DoL).
Northam engages on a formal and regular basis with local authorities, including the Moses Kotane and Thabazimbi Municipalities in respect of Zondereinde and the Thaba Chweu Municipality in respect of Booysendal.
Northam also engages in public participation processes with interested and affected parties before any project which may affect stakeholders in conducted.
Northam identifies and engages with external and internal stakeholders at a number of different levels. Extensive and ongoing engagement, both formal and informal, is undertaken by various disciplines and in various ways.
The table below illustrates some of these interactions.
| Stakeholder group | Comment | Reference |
|---|---|---|
| Shareholders (providers of capital), research analysts and fund managers | Northam knows that a key concern of any shareholder is to maximise investment returns in a sustainable manner. | See the economic performance section of this report. |
| Shareholders are encouraged to participate in the annual general meeting of the company and to directly raise issues of concern or interest. | ||
| Northam provides information on operating, financial and other performance in a timely and equitable manner. This done by making announcements on the JSE Stock Exchange News Service (SENS), accompanied by almost simultaneous website postings, web alerts to a database of registered users; and the distribution of an explanatory media release to a second database of analysts, investors and media. | ||
| Employees, unions | Relations with employees and organised labour are governed by recognition agreements and conditions of employment by legislation. | For more information on how the company manages and engages with employees, see the employment and human rights section of this report. |
| Northam supports the rights of all employees to freedom of association and acts in accordance with the South African constitution, prescribed legislation, industry compacts and recognition agreements with unions. | ||
| The company encourages open communication and consultation and employees are encouraged to raise issues of concern and interest via the formal and informal structures in place, including through the human resources discipline, line management and union structures. | ||
| Communities | Northam understands that the company needs to play a responsible and co-operative role in the area where its operations are located. This takes the form of meaningful and relevant contributions to the sustainability of the surrounding community and environment. | See Northam in the community section of this report. |
| Community development is prescribed by the commitments made in the company’s social and labour plans (SLPs). In line with the requirements of the Mining Charter, Northam ensures that its policies and practices are aligned with those of the local municipalities’ integrated and development plans (IDPs). | ||
| Northam engages on a formal and regular basis with local authorities, including the Moses Kotane and Thabazimbi Municipalities in respect of Zondereinde and the Thaba Chweu Municipality in respect of Booysendal. | ||
| Community forums are in place to address community concerns, in particular issues such as local employment, training and development and procurement. | ||
| Customers | Northam has long-standing relationships with its customer base. The company’s marketing department maintains regular weekly contact with its domestic and international customers, and hosts customer meetings and visits customer facilities. Customer representatives, in turn, visit Northam’s mining and metallurgical operations. | See the product responsibility section of this report for more information on how Northam engages with its customers. |
| Any issues relating to customer satisfaction are directly taken up with the marketing department. |
In identifying its stakeholders, Northam developed a matrix of those groups/individuals directly and indirectly associated with the company. Listed below are the main stakeholders identified by Northam and their key concerns and the process Northam follows when engaging with these.
| Stakeholder group | Key topics concerns | Engagement process |
|---|---|---|
| Shareholders and investors | Operating and financial performance, share price performance and dividends, and issues relating to the overall sustainability of the company, in particular, risk mitigation, nationalisation and safety |
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| Customers | Consistency in supply, quality of supply |
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| Employees | Job security, training and development, remuneration, health and safety |
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| Suppliers and contractors | Sustainability of company, company’s financial performance, employment practices, local procurement practices, business training and support, quality control, preferential procurement practices |
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| Media | Financial results, corporate activity, environmental issues, marketing, community-related topics |
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| Communities and NGOs | Local economic development, employment and local job creation, corporate social investment practices, health related issues, in particular HIV/AIDS, environmental impact and rehabilitation, skills development programmes |
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| Government and regulating authorities | Licence to operate, employment, education and training, local economic development programmes, environmental impact and rehabilitation |
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