Sustainable development 2014
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AT A GLANCE OUR APPROACH TO CREATING VALUE OUR GOVERNANCE AND MANAGEMENT APPROACH
SAFE AND EFFECTIVE PEOPLE WHO RESPECT AND CARE SOCIAL CAPITAL AND LICENCE TO OPERATE CONSERVING NATURAL RESOURCES AND MITIGATING IMPACTS
APPENDIX CONTACT DETAILS AND ADMINISTRATION OTHER LINKS Report selector
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Social capital and licence to operate
investing in community development

Our social investment aims to complement our accommodation and living conditions initiatives, through the provision of schools, clinics and other amenities

The sustainability of our mining activities depends on our ability to contribute to the well-being and prosperity of our host communities. In South Africa and Zimbabwe, the challenging social context highlights the need for sustainable community development as both a commercial and social imperative. Many of our operations are in rural areas characterised by low levels of formal economic activity, and inadequate provision of infrastructure and services.

Our management approach to social investment

Our strategic approach to investing in socio-economic development initiatives focuses primarily on infrastructure, health, education, community empowerment and poverty alleviation projects. The strategy aims to complement our accommodation and living conditions initiatives, through the provision of schools, clinics and other amenities. Our goal is to establish infrastructure that will address urgent needs in mine communities with the focus on longer-term impacts. We encourage and support the participation of our employees in community projects.

While much work has been done in advancing socio-economic transformation in our areas of operation, we recognise that there is scope to strengthen our approach and contribution. This year we have conducted evidence-based research to better understand some of the social challenges that impact the communities around our Rustenburg operations, and to further inform our social strategic interventions (see box alongside). A similar study is planned for the Marula operations in 2015.

In Zimbabwe, we are implementing a community development plan aimed at addressing community concerns and requests identified through a perception study and ongoing consultations with community leaders. The plan focuses on education, health and income-generating projects and will assist in narrowing the gap in terms of expectations relating to development needs such as clinics, agricultural activity, employment, construction of secondary and primary schools, clean water and sanitation, and food availability. It also seeks to improve neighbourliness between Zimplats and the surrounding communities. In line with government recommendations, the operations factor corporate social responsibility projects into their indigenisation implementation plans, so as to accrue credits towards compliance with the 51% indigenisation target.

Social impact assessment

Our social impact assessment (SIA), undertaken in collaboration with the Royal Bafokeng Administration (RBA), has been structured in two phases, to address two intentions. The first phase entailed a review of socio-economic trends and developments in the Royal Bafokeng Nation (RBN) villages and those communities impacted by the Rustenburg operations, over a 10-year horizon from 2001. The objective was to assess the level of impact that mining has had on these areas. The second phase is a field baseline survey, aimed at establishing a baseline of key socio-economic indicators that can be used to measure and monitor progress that is achieved through social interventions carried out by the operations in partnership with other stakeholders such as government, RBN, industry players and community stakeholders.

The two studies aim to ensure that going forward:
  • Our interventions have been informed by empirical evidence on key social indicators identified in communities
  • Our approach to stakeholder engagement is robust and inclusive, and our activities conducted in collaboration with key stakeholders
  • Our medium and long-term social interventions are aligned with Implats' long-term strategic outlook.

The first study spanned all 29 villages of the RBN, with a focus on 15 villages and informal settlements that are directly affected by current operations. By year end the study had covered approximately 36 000 households and was nearing completion. Using census data for 2001 to 2011, the main indicators analysed were basic demographics, access to basic services, educational levels, employment and income, and future shaft closures and the opening of new ones. Preliminary findings from the survey highlighted the depth of the social challenges brought about by in-migration and the increased competition for limited resources. In turn, the findings brought into sharp focus the need for an integrated and collaborative approach to addressing social challenges that exist in communities.

Over the coming year the details of these findings will inform developments in our strategic approach to socio-economic development. This includes seeking to turn potential risks identified in current and future areas of operation, into opportunities to promote community sustainability during and after the life of mine. The baseline survey is currently being conducted by a leading research institution and will be used to further our understanding of the social challenges being faced by mining-specific households, as well as the impact of SLPs, and the migrant labour system.  

Our 2014 performance and achievements for social investment

The total investment in socio-economic development projects for the South Africa operations this year amounted to R71 million, inclusive of social and labour plan (SLP) commitments. The 30% decrease on the R102 million we invested last year is mainly attributable to the strike and the declaration of force majeure at the Rustenburg operations. An additional R261 million was spent on improving accommodation and living conditions of our employees (see here). The Zimbabwe operations' social investment decreased by 33% from US$9 million in 2013 to US$6 million in 2014. A detailed breakdown of our community investments is presented in the tables here.

The strike at Rustenburg this year regrettably impacted project implementation, with many of our social projects halted. This in turn limited the scope and effectiveness of the annual independent review and assessment of the socio-economic impacts of most of our investments. The external consultants visited only nine projects in South Africa (including five projects funded by the Impala Bafokeng Trust (IBT)) and five in Zimbabwe during 2014, representing only a small portion of our total social investment. This reduced our ability to comprehensively assess the number of beneficiaries from our social initiatives, and to identify project improvements and opportunities. The previous review covered 55 socio-economic development projects – broadly categorised as infrastructure, enterprise development or social development – and determined that our socio-economic development expenditure for 2013 benefited more than 100 000 people in South Africa and over 12 000 in Zimbabwe.

Following is a brief summary of the identified contribution associated with the 14 investments reviewed in 2014: