Sustainability report |
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This report provides a brief summary of health, safety and environmental performance across the operations of the Assore group. Assore also recognises that it has a responsibility to promote the sustainability of its business by taking an active role in shaping the development and performance of the sectors in which it operates.This sustainability report covers all of the entities in which the Assore group has an interest and, for ease of reference, has been split into the following two sections: – Assmang, jointly controlled by Assore 50% and ARM (African Rainbow Minerals Limited) 50%. – Subsidiary companies of Assore. ASSMANG (JOINTLY HELD) This section provides a brief summary of health, safety and environmental performance across the Assmang group (comprising Khumani, Beeshoek, Black Rock (Nchwaning and Gloria mines), Dwarsrivier mines and the Cato Ridge and Machadodorp Works). CORPORATE GOVERNANCE
Prosecutions, convictions and fines
There is currently no legal requirement to make financial provision for closure or rehabilitation at the Cato Ridge and Machadodorp Works EMPLOYMENTEmployee numbers at Assmang operations increased during the year as a result of organic growth driven by recently completed projects and capital projects being constructed. The bulk of growth in employee numbers took place at Khumani and Dwarsrivier. During the year, the number of employees at Dwarsrivier increased due to several contract employees becoming full-time employees. Employment equity Employment equity statistics for Assmang mining operations are used to track progress against targets established in the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry (the ‘Mining Charter’) for the advancement of historically disadvantaged South Africans (HDSAs).These statistics also assist in monitoring progress towards meeting commitments made by Assmang operations in their Social and Labour Plans (SLPs). The Cato Ridge and Machadodorp Works are classified as industrial facilities and thus have no obligation to comply with the requirements of the Mining Charter. Nonetheless, statistics for these operations have also been included for consistency and comparative purposes.
SUBSIDIARY COMPANIESThis section of this report summarises the sustainability performance of the Assore subsidiary operations, namely Rustenburg Minerals Development Corporation (Rustenburg Minerals), Zeerust Chrome Mine (Zeerust),Wonderstone and Xertech. CORPORATE GOVERNANCERegulatory environment Health, safety and environmental management on Assore operations is subject to two different sets of legislation, depending on whether the facility is classified as a mine (including associated mineral processing facilities) or an industrial facility. Health and safety management at the mining operations (Rustenburg Minerals, Zeerust Chrome and Wonderstone) is regulated by the Mine Health and Safety Act (No 29 of 1996). Environmental authorisations for mines are currently granted in terms of the Minerals and Petroleum Resources Development Act (No 28 of 2002), although government has confirmed that once this Act is amended, future mining environmental authorisations will be granted in terms of the National Environmental Management Act (No 107 of 1998). Xertech is classified as an industrial facility, and is therefore regulated in terms of the Occupational Health and Safety Act (No 85 of 1993), with environmental authorisations being granted in terms of the National Environmental Management Act. Prosecutions, convictions and fines Neither Assore nor any of its subsidiary companies have been subject to any prosecutions, convictions or fines during the 2009 financial year. A section 54 notice in terms of the Mine Health and Safety Act was served on Rustenburg Minerals as a result of an uncontrolled blast which took place on 12 March 2009 during the construction of the Zandspruit decline. Corrective action was taken with respect to revising blasting procedures and staff retraining, and no legal action is anticipated in this regard. New appointments In order to more effectively manage sustainability-related risks across the Assore operations, two new positions were created during the financial year 2009. A Senior Manager: Safety, Health, Environment, Risk and Quality (SHERQ) was appointed in January 2009 to provide greater capacity to manage these areas of risk at a corporate level. The Senior Manager: SHERQ is directly responsible for coordinating SHERQ risk management, monitoring and reporting on the mines and facilities under Assore’s direct management control, and also provides targeted technical input to SHERQ management on the Assmang operations. A Local Economic Development (LED) Project Manager was appointed in November 2008 to coordinate small business development and Corporate Social Investment initiatives for the Rustenburg Minerals and Wonderstone operations.This role is integral to the execution of commitments made in the Social and Labour Plans (SLPs) submitted to support applications for the conversion of ‘old order’ to ‘new order’ mineral rights. Internal review and control Inspection and review of safety, health, environmental and quality performance is conducted by site and corporate personnel on an ongoing basis to evaluate and report on progress towards targets and objectives, and where required, to identify required corrective action. Internal review and checking of performance is a requirement of the company’s ISO-certified management systems and is also used to demonstrate adherence to the quality specifications stipulated in contracts with customers. Legal registers for all Assore operations were updated during the current financial year. Legal appointments in terms of the Mine Health and Safety Act were also reviewed and revised where necessary, to reflect changes in personnel and new activities associated with the development of underground operations at Rustenburg Minerals. Quarterly reports on compliance with safety, health and environmental legislation for all Assore operations are submitted to the Audit Committee. International Standards Organisation (ISO) certification In order to establish robust quality and environmental management systems for the systematic management of risk across the group operations,Assore has developed its quality and environmental management systems in accordance with the International Standards Organisation (ISO) model. All operations managed by Assore are certified to the ISO 9001:2000 quality management standard, with Wonderstone and Xertech also being certified to the ISO 14001:2004 environmental management standard.
† Originally certified to ISO 14001:1996 and later recertified to ISO 14001:2004 All ISO audits are conducted by an accredited external service provider,TUV Rheinland. Recertification audits are conducted on a three-yearly interval, and surveillance audits are carried out in the intervening years by the same company. No non-conformances or major adverse findings were identified during the ISO audits on Assore operations during the current financial year. Stakeholder engagement Assore interacts with a wide range of internal and external stakeholder groups in the pursuit of its business. Each group of stakeholders has different needs in terms of the type of information required as well as mode and frequency of interaction, and the company’s stakeholder engagement has been tailored accordingly, as summarised in the table below.
Involvement with industry associations Assore recognises that it has a responsibility to promote the sustainability of its business by taking an active role in shaping the development and performance of the sectors in which it operates. Assore has therefore encouraged its employees to assume leadership roles in industry associations which aim to promote the use and development of commodities which it produces and to encourage cooperation between companies in these industry sectors to address issues of common concern. During the previous financial year, Mr Alastair Stalker of Ore & Metal Company Limited was elected as chair of the Executive Committee of the International Manganese Institute (IMnI) that represents manganese ore and alloy producers, manufacturers of manganese-based products, traders, industry service providers and companies using manganese to manufacture their products. In May 2009, Mr Alistair McAdam (also of Ore & Metal Company Limited) was elected to the Executive Council of the International Chrome Development Association, which performs a similar function for the international chrome industry. Health and safety There were no fatalities on any of the Assore operations during the current year. LTIs statistics and LTIFRs for each of the operations for the financial year are summarised in the table below.
LTI is a work related injury that results in the employee being unable to attend work at his/her place of work, performing his/her assigned duties on the next calender day (whether a scheduled work day or not) after the day of the injury. LTIFR is the rate of LTIs per million man hours.
for review but the claim was rejected Occupational hygiene monitoring is undertaken on all operations to demonstrate compliance with applicable legislation: this takes place quarterly for mining operations and bi-annually at Xertech. Environmental performance During 2008, environmental authorisation in terms of section 24(g) of the National Environmental Management Act was obtained for four diesel storage tanks at Rustenburg Minerals. No reportable environmental incidents occurred on the Assore operations during the year. In June 2009, a water supply review was undertaken for the Rustenburg Minerals operation in preparation for the commencement of underground mining, which will require more water than the existing surface operations. As part of this process, the mine water balance was reviewed and existing water supply boreholes on the property were pump tested to confirm their long-term reliable yield. Based on this evaluation, budget provision has been made to drill additional boreholes and establish additional water storage capacity on site in the ensuing financial year. Data on aspects of environmental performance, including waste generation and consumption of resources such as water, electricity and fuel have been collected and reported on by the operations in a variety of formats.A review of environmental monitoring and reporting procedures is currently under way to ensure that a consistent approach to environmental monitoring is adopted across the operations, and that the indicators reported on comply with the Global Reporting Initiative guidelines. During the year, Xertech worked with the National Cleaner Production Centre (NCPC) as part of a project funded by the Department of Trade and Industry to promote production efficiency, optimisation of resource consumption and waste reduction. A baseline assessment of the Xertech operation has been completed, and opportunities for process optimisation which have been identified will be investigated in greater detail during the ensuing financial year. Financial provision for closure and rehabilitation Financial provision for mine closure and rehabilitation of the Rustenburg Minerals, Zeerust Chrome and Wonderstone mining operations is required in terms of the Minerals and Petroleum Resources Development Act, and the current status of closure provisioning is summarised in the table below.The closure liability for Assore operations is reviewed annually and is funded via a combination of bank guarantees and contributions to the AMT Environmental Fund.
All figures in Rand as of January 2009, being the most recent submission to the Department of Mineral Resources Xertech is classified as an industrial (rather than mining) facility, and there is therefore no legal requirement to make financial provision for closure or rehabilitation of this operation. Rehabilitation of the mine sites is conducted on an ongoing basis and comprises reshaping of land forms and revegetation of mined out areas, completed waste rock dumps and tailings facilities. Rehabilitation planning places particular emphasis on erosion control and the use of indigenous species to maximise the sustainability of revegetation. Completed areas are audited annually by an external consultant to determine the success of rehabilitation, and where necessary, recommendations on improved land management and rehabilitation practices are incorporated into the rehabilitation methodology. EMPLOYMENTEmployment equity Employment equity statistics for mining operations are collated on a monthly basis and reported to the Department of Mineral Resources (formerly the Department of Minerals and Energy). These data are used to track progress against targets established for the mining sector in the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry (the ‘Mining Charter’) for the advancement of historically disadvantaged South Africans (HDSAs).These statistics also assist in monitoring progress towards meeting commitments made by Rustenburg Minerals and Wonderstone in their Social and Labour Plans (SLPs). Xertech is classified as an industrial facility and thus has no obligation to comply with the requirements of the Mining Charter. Nonetheless, statistics for Xertech have also been included for consistency and comparative purposes.
# At Xertech, ‘women in mining’ is interpreted as women engaged in production activities One of the major challenges in achieving workforce transformation is the industry-wide shortage of suitably qualified HDSA candidates. As a step towards developing greater HDSA capacity and offering career opportunities to members of local communities, Rustenburg Minerals has extended two bursaries to fund the undergraduate university studies in Mining Engineering and Mechanical Engineering. Contractor workforce Assore outsources certain functions to contractors, particularly with respect to security, cleaning and waste disposal, and the proportion of contractors as a percentage of the total workforce is presented in the table below.
Rustenburg Minerals currently uses a contract mining company for the open-cast operations at Rustenburg, and the operation of chrome processing plants at Rustenburg Minerals and Zeerust Chrome is also outsourced. The Rustenburg Minerals workforce is currently being restructured to reflect the changing nature of the mining operation, which will result in contract mining being phased out as surface mining activity downscales and is replaced by owner-operated underground operations. |