Northam in the community

Approach and structure

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. A stakeholder engagement policy has been finalised for board approval, while an overarching community and rural development strategy has been developed at group-level which provides governance and strategic direction in respect of the identification and implementation of community project. This strategy includes stakeholder mapping, a review of expectations and immediate risks, and constructive engagement with government and related stakeholders to ensure a coordinated approach to community development.

At the Zondereinde mine, Northam has longstanding relationships with, amongst others, the temporary mine-related community, neighbouring farmers, informal settlements (such as the Smashblock community) and the towns of Northam and Thabazimbi, as well as other mining company communities.

The situation is more complex at Booysendal, with a number of communities vying for position in the area. However, at the inception of the project management embarked on a proactive stakeholder engagement programme which identified 12 recognised families/communities, which are now represented in a community forum.

The constituents of this forum (which includes members of management) have regular access to the site, and are provided the opportunity to discuss training and job opportunities with management. The original constituency of the forum needs to agree on any new members to the forum.

Northam recognises that there may be communities in the area who have some historical affiliation with the land it has under management. For this reason the company has undertaken extensive surveys to identify any historical artifacts or archeological and grave sites which may have significance for certain communities. Such sites are fenced off and carefully preserved.

To ensure alignment with the MPRDA, the Mining Charter requirements related to mine, community and rural development and to ensure a focused approach to the company’s contribution to its local communities, Northam has paid a great deal of attention to local economic development (LED) projects identified in its SLPs. These SLPs have aligned with local municipalities’ integrated development plans (IDPs) so as to avoid duplication of effort and to address real, identified community needs.

Zondereinde’s SLP is in the process of being revised following a feasibility study which indicated converting the Life community centre to a cooperative before transferring it to the community will not be sustainable. A request was made to the DMR to allow the mine to review this model and to replace it with a more suitable, sustainable model. Revisions are currently being finalised and will be submitted to the DMR by 30 September 2012. The Life community centre will no longer be transferred to the community, but will be re-launched as an entrepreneurial support centre.

The SLP for the Booysendal project has been developed and local economic development projects have been identified.

Local economic development issues and compliance with these aspects of the Mining Charter are the responsibility of senior management and are reviewed by the board.

In addition to local economic development, Northam supports a number of projects that do not necessarily fall within the SLP parameters but are considered by the company to be worthy causes.

Addressing community needs

Northam’s community development programme has as its focus the contribution to the social upliftment of communities directly surrounding its operations and communities within major labour-sending areas. The primary objectives of Northam’s programme are the sustainable upliftment and development, and the economic empowerment of stakeholders.

The main issues identified by communities during F2012 were related to:

• local employment of individuals from surrounding areas;
• procurement;
• skills development;
• infrastructure and social development;
• environmental and waste management;
• access to water; and
• investment in the growth of the agriculture sector.

During F2012, R2.8 million (F2011: R4.1 million) was spent on corporate social investment and local economic development across the group.

CSI/ LED projects

Name	Description
Zondereinde
Deo Gloria Primary School	Building of three classrooms Building of computer centre Building of a library Salaries of 11 people
Life community centre	Training and facilitation of: agricultural farming chicken farming livestock farming alien plant control
Thabang Children’s Place of Safety	Provision of food on a monthly basis
Computer centre services: Northam Primary School Northam Comprehensive School Krause Primary School Koedoeskop Primary School Naletsana Combined School	Servicing of internet connection
Economic development facilitation in the Eastern Cape	Establishing small, medium and micro enterprises
Dinaledi Schools Girl-child bursary scheme Holy Family Combined School JM Ntsime High School Kgamanyane High School	Provision of bursaries to nine girls in Grade 10 to 12 Upgrade of computers Conversion of library to media centre Provision of computers
Booysendal
Uzenzela wena orphanage	Donation to the orphanage for the December festive season
Greater Sekhukhune disaster management	Provision of food parcels to families in Kalkfontein who were affected by a storm
Rooidraai power station	Assisting the Thaba Chweu local municipality in developing an electrical sub-station to supply electricity to the town of Mashishing
Greater Tubatse landfill site boreholes	Regional monitoring of waste facilities, fountains, dams, pans, streams and rivers

At Zondereinde:

Zondereinde mine is located in a region that is relatively sparsely populated, in a province with low levels of economic activity. Agriculture, mining and tourism are the primary economic activities in the province and region. Disbursement priorities have been guided by the Zondereinde SLP and the corporate social investment (CSI) committee, tasked with identifying development priorities in the area.

The committee, comprising three members of management together with one representative from each of the organised employee representative bodies, convenes on a monthly basis to identify, prioritise and allocate resources towards sustainable projects. Priorities for F2012 included:

• the re-evaluation of the Life community centre;
• the analysis of business activities on the mine;
• the identification of key priorities aligned to the IDPs of local municipalities for the next three years; and
• the finalisation of a governance framework to align CSI and LED projects.

Local employment

To address the need for employment in the area, Zondereinde works in close collaboration with the Thabazimbi and Moses Kotane municipalities which supply the mine with a database of unemployed individuals in the area. Zondereinde uses this database to recruit local candidates. Monthly meetings are held between municipal officials and Zondereinde mine’s recruitment team to manage this process and the expectations of local individuals.

Infrastructure development

As part of Northam’s commitment to infrastructure development within the areas that surround its operations, Zondereinde mine, together with Anglo Platinum and the Thabazimbi municipality, Waterberg district municipality, embarked on a project to build and develop a new sewerage system in the town of Northam.

Northam and Anglo American Platinum are planning to develop around 9 000 houses in total in Northam town of which about 3 207 units will be in the De Put development within the next years. The sewerage system currently in place does not have the capacity to service the Northam community and the new housing development has therefore necessitated the construction of a new sewerage system to ensure that all the residents of Northam receive sewerage services.

Northam has committed R10 million towards this project and contributed R5 million during F2012.

At Booysendal:

Booysendal is located in a region with little existing economic activity. Agriculture and forestry, mining and tourism are the primary economic activities in the region. Stakeholder identification and engagement at Booysendal is a far more complex undertaking than at Zondereinde, complicated by the scale, proximity and needs of local communities, and historic interests in landholdings.

Community engagement falls under the human resources discipline headed by the human resources manager. A stakeholder engagement strategy is currently being developed and various forums have been set up to facilitate the flow of meaningful benefits to communities and to address their concerns. This is in addition to the needs identified in local municipal IDPs. There appears to be a widespread expectation amongst community members that mining operations will create jobs for all. Given the nature of the orebodies and the type of mining (trackless mining) to be undertaken in the area, these operations are not very labour-intensive and will never be able to meet the direct expectations and needs of everyone in the local communities.

Communities have become more vocal and have staged protests against mining companies in the area. These protests are specifically related to the creation of jobs.

The key priorities of Booysendal’s community activities include:

• local employment;
• education;
• infrastructure development;
• health;
• environmental management;
• poverty alleviation;
• enterprise development; and
• capacity building.

Local employment

A particular issue of concern at Booysendal has been, and in the short term will continue to be, the allocation of jobs in an area where employment levels are low. This issue is expected to intensify.

Booysendal’s SLP seeks to address some of the needs in this area, but it will be difficult for a single mining company to have a significant impact. Booysendal management has developed a dynamic database to be used for future sourcing and recruitment of employees with the skills and qualifications appropriate for Booysendal. For more information on employment practices at Booysendal, see the employment and human rights section of this report.

Local procurement

In line with the company’s commitment to the Mining Charter, Booysendal is fully committed to distributing wealth and skills to the communities which surround its operations. Northam’s procurement policy therefore gives local BEE companies preferred supplier status.

During F2011, Booysendal hosted open days to inform local suppliers about Northam’s requirements, policies and the opportunities offered. These open days were held in Mashishing, Roossenekal and Steelpoort and were advertised in local newspapers. Companies which comply with the necessary criteria are placed on the vendor list, provided they are commercially competitive.