SOCIAL CAPITAL AND LICENCE TO OPERATE
Investing in community development – Zimbabwe

Local supplier development

Mimosa has a solid policy structure that empowers and supports indigenous companies. Its procurement database comprises both local and foreign suppliers, with local suppliers constituting well above 60% of the total number of suppliers.

Over the years the Company has depended on supplies from local indigenous companies. Its preferred supplier programme has a strong bias towards competent local entrepreneurs and is implemented on cost and quality competitiveness. Local companies also supply and maintain key mining equipment under the Company’s technology transfer initiatives.

In 2015, 65% of Mimosa orders were given to local suppliers. The mine also continued generating employment for the local people through contracted companies. There is a clause in the contracts which mandates the contracted companies to employ non-skilled employees from the local, surrounding communities, which the mine enforces.

Mimosa’s socio-economic development expenditure US$’000

Programme	2015	2014	2013	2012	2011
Empowerment of community structures	396	1 065	411	127	9
Health, safety and environment	69	0	0	39	0
Education	163	53	45	1 507	1 869
Government and municipality support infrastructure	2 006	1 086	3 878	987	93
Sport development	0	0	0	0	0
Enterprise development	0	0	0	0	0
Community, welfare, arts and culture	1 497	1 453	336	489	431
Total socio-economic development expenditure	4 131	3 657	4 669	3149	2 402
Housing and living conditions	67	146	3 031	16 560	15 500
Total sustainable development investment	4 198	3 803	7 700	19 709	17 902

Our social investment focus for 2016 and beyond

In Zimbabwe the key focus will be:

• The implementation of the ESOT as part of our IIP and progression of discussions on the rest of the IIP.
• Enhance relations with the community through continued engagement aimed at nurturing relations based on mutual respect and understanding.
• Continue to explore ways and strategies to increase capacity of local companies so that they can supply quality goods and services to both Zimplats and the country as a whole.