• 1
• 2

Social capital and licence to operate
Accommodation and living conditions

We are recognised leaders in the mining industry for our contribution towards improving the accommodation and living conditions of employees

We want all our employees to enjoy quality housing and living conditions. In South Africa, where there is a severe shortage of affordable housing and long waiting lists for units being built, this is a particular challenge. In partnership with local and provincial government, we help to alleviate this problem. Implats has invested over R2 billion since 2009 on improving the housing and living conditions of our employees.

Our strategic approach to accommodation and living conditions

We are recognised leaders in the mining industry for our contribution towards improving the accommodation and living conditions of employees. This investment is the most significant of our contributions to the well-being of our communities and employees. Through our investment in housing we aim to create viable local communities in which employees are able to reside with their families in a stable, healthy and secure environment within commuting distance of their place of work.

The housing projects we initiate extend into other community projects, including roads, lighting, water, health, sewerage and schools as we seek to collaborate with local government to eradicate the informal settlements surrounding our operations.

Last year we completed the conversion of all hostels, with one person per room and family units, thereby fulfilling the requirements of the 2014 Mining Charter. Our focus is now on developing family houses within communities and making it possible for employees to buy their own homes in these areas. The strategy of providing quality bonded houses to employees is key to normalising the living and working environment of our employees. Houses are sold at cost to employees with Implats providing interest-free loans of up to one-third of the value of a house, effectively providing the initial deposit while reducing the risk to banks and increasing their appetite to grant bonds. Employees who opt to purchase property are paid a housing allowance that contributes to their bond repayments. For those employees who cannot access funding for home ownership, or who do not wish to purchase a home, decent mine accommodation is provided.

Our vision is to have at least 50% of employees living with their families in decent accommodation by the year 2020. In the second generation SLP document compiled for the five-year period 2014 to 2018, R1 billion has been allocated to improving housing and living conditions.

Our 2014 performance and achievements on accommodation and living conditions

We are proud to have been commended by the regional DMR in July 2014 for our progressive stance and leading example in implementing programmes aimed at improving the housing and living conditions of mineworkers. We achieved our project targets for 2014 and are on track to deliver on our objectives for 2020.

Currently 21% of our employees in South Africa make use of Company accommodation in various forms, and an additional 6% are on the Company's home ownership scheme. The balance of employees utilise private accommodation. As part of our social responsibility we have undertaken a baseline study within the communities that we operate. This will assist in identifying those employees who are not in decent accommodation and inform our housing strategy.

• A total of R261 million was expended on employee housing (2013: R445 million)
• The development of our second home ownership flagship project, the Platinum Village in Rustenburg, has progressed well. Phase 1 entails investing R210 million in building 557 units; during the strike-affected year a total of 283 houses were completed and 181 handed over to employees in the Platinum Village. The R1 billion development project has a final target of 2 420 units, to be completed over the next four years, depending on employees' appetite to purchase, and creditworthiness. Consistent with government's vision of integrated human settlements, Implats is in the process of developing a Platinum Village schools project
• While the strike period did not affect our construction activities, it had a negative impact on house sales. This was due to the lack of earnings required by banks and deterioration in employee credit rating. We are confident that once the Rustenburg operations normalise, sales will pick up
• At the Refineries the Tswelopele home ownership development comprising 108 housing units has been completed, to the value of R36 million. A total of 104 units have been sold to employees
• At our Marula operation, by year end we had built 58 of the target 122 units for employees and an additional contract to build 30 units has been awarded to a local community-based company. Project completion is on schedule for December 2014. The contract value is R72 million
• Following the completion last year of the R406 million Sunrise View home ownership development (with 1 717 units built and sold to employees) and the launch of the Sunrise View Primary School, this year Implats completed the development of the Sunrise View High School, which was opened in February 2014
• We secured additional land in Rustenburg suburb, Geelhout extension 8, for further housing development. Project plans will be developed following a performance review of existing initiatives.

• Zimplats expended US$15 million on employee housing (2013: US$8 million). By year end, the company had completed the first phase of its employee home ownership scheme, with 680 core houses allocated to employees. The second phase will be undertaken in 2016. Out of the 261 company houses planned for 2014, 201 units were completed and handed over to employees and the remainder of the units will be completed in the first quarter of 2015. Construction of employee houses continues to be phased, due to financial constraints
• Ngezi commissioned the recreational facilities, including a community hall and a clubhouse, in an attempt to make the location more attractive to skilled personnel. The focus going forward is to construct company and core houses for employees.