| |
| It is through the goodwill of the host communities close to our operations that we are able to gain and maintain our social licence to operate. It is therefore essential that in our approach to doing business we take into account their concerns and their needs. Amplats’ values and business principles drive our social strategy, and inform the development of our social performance standards, as detailed in the Anglo Social Way. Our social strategy focuses on using Amplats’ core business to support long-term community development, and encompasses the use of local procurement opportunities and the development of the local workforce. |
| |
| Our business-principles policy states the
following: |
| • |
We aim to create and maintain strong and
respectful relationships with the
communities of which we are a part. |
| • |
We will seek regular engagement about
issues that may affect them. |
| • |
We aim to contribute to the creation of
more prosperous and empowered
communities. |
| • |
We will regularly assess our operations’
impact upon local social and economic
development and report upon it. |
| • |
We will provide local mechanisms for the
consideration and resolution of
complaints and grievances, and do this in
a fair, timely and accessible manner. |
|
| |
| Most of our operations are located near communities with low levels of socio-economic development. Our presence there means that we have a special responsibility to uplift and bring prosperity to host communities. We also believe that the most positive way in which Amplats can contribute to the communities is by doing business: it is through our core business activities that we employ people, pay taxes to the governments and make payments to suppliers. The value directly distributed by the Company in 2011 can be broken down as follows: |
| |
|
| • |
R3,821 million to providers of capital. |
| • |
R12,147 million to employees for wages
and related costs. |
| • |
R3,291 million to outside shareholders. |
| • |
R2,054 million in taxes and royalties to
governments. |
| • |
R24,757 million to suppliers.
Furthermore, because of the multiplier
effect, the economic contributions of our
operations extend significantly further
than these direct forms of value
distribution. |
|
| |
Ensuring that communities
benefit |
| One of the key objectives of the Mining
Charter is to promote the social and
economic welfare of communities living
close to mines or in labour-sending areas.
The latter represent areas within South
Africa and neighbouring countries from
which migrant labour for the mines was
traditionally sourced. Of particular relevance
to Amplats’ community engagement and
development function is the formulation,
through cooperation, of integrated
development plans for these communities.
This includes support in the provision of
infrastructure, training and skills
development, enterprise development and
preferential procurement. Funding for
development is committed to in the social
and labour plans (SLPs) of the various
operations and is augmented through
additional funding for projects not specified
in the SLPs. In its approach to development,
and specifically in what it supports, the Company is guided by the SLPs, but also by
complementary stakeholder engagement
that helps it to target specific projects for its
assistance in the community. |
| |
| Ladies from the Tsakane Crafts Cooperative showing their glass beads to Joyce Mabe of Amplats |
|
| Income generation at Boitekong |
| Two youngsters roll up their sleeves, and each takes up a seat next to a fiercely burning flame coming out of a
methane gas burner. The process of melting ground glass to create beads for jewellery is about to begin. In half an
hour, between 20 and 70 beads of all shapes, colours and textures will have been made. By the end of the day, a
variety of products will emerge, including spectacular jewellery and teaspoons with artfully adorned handles. |
|
|
|
|
The Tsakane Crafts Cooperative was founded in October 2010 to generate income for seven orphans from
Boitekong, just outside Rustenburg. The start-up capital was provided by community development funds made
available by the Rustenburg mines. The project was facilitated by the Lebone Women’s Empowerment Group, a
non-governmental organisation that offers home-based care to sickly community members and also looks after
orphans and vulnerable children.
The team works like a well coordinated orchestra. Members rotate the various duties every week, so that each of
them experiences all sections of the production line, from collecting and crushing glass bottles, through drying
beads in the kilns, to making the products and showing the finished wares to potential buyers.
Anglo American Platinum Limited (Amplats) funded the cooperative to the amount of R360,000 which paid for the
members’ initial training course in Pretoria and production tools consisting of a bottle crusher, three methane gas
burners and two kilns. It was also from these funds that initial raw materials were purchased, such as mend rods
which add colour to the melted glass, and wire strings, bronze and silver chains to finish off the jewellery. The initial
start-up capital is also being utilised to replenish the raw material. As part of initial support, Amplats has lent the
group a work room and provided free electricity. The Company also arranged to pay members a stipend, until they
found their feet.
The members of the Tsakane Craft Cooperative have come a long way since their training. They have grown in
confidence and are still delighted at the artistic and other resources they have discovered within themselves. One
of the members, Innocentia Zibi, said that unemployed people do not always realise what talents they have. “I did
not know that I could recycle a beer bottle and recreate out of it, something this useful,” she added. They are also
relieved to be making a financial contribution to the households that look after them.
The cooperative started collecting revenue in April 2011, two months after it had started production. It occasionally
participates in exhibitions to promote itself and otherwise plies its wares in the members’ home village of
Boitekong. Staff at the mine also order their products from time to time, while other sales are realised from
individuals who drop in at their production house. By the end of 2011, the group was supplying at least two stores
in Rustenburg.
As at mid-December 2011, the cooperative had accumulated a bank balance of R22,000 from sales, which is
encouraging but not sustainable. Follow-up research by an independent consultant into the project found that the
members had tremendous faith in the future of their enterprise and had big ideas for its development. However,
two critical issues will have to be addressed by the cooperative and by Amplats if the project is to continue
operating successfully. Firstly, the members need to gain clarity on the advantages that make cooperatives a
preferred small-business model in South Africa. Secondly, they need to become more proactive in growing the
cooperative into a business that can run independently of Amplats. For this they require training in basic business
skills and entrepreneurship, and also a business coach and mentor.
With these interventions, the Tsakane Crafts Cooperative should be able to live up to its glowing promise. |
|
|
| |
Benefits |
| Local communities benefit from the
Company’s activities in a number of ways,
which have been categorised as follows: |
| • |
Employment: This generates income for
employees and their families, and creates
economic multipliers in the local
economies where these households
spend their money. |
| • |
Employment benefits: In poor
communities, employment benefits such
as healthcare and housing support are
often as sought after as the jobs
themselves. |
| • |
Royalties and rent: Amplats pays royalties
and rent to the owners of surface and
mineral rights. Where these rights are
vested in local communities, the benefits
flow is direct. |
| • |
Taxes: Amplats and its employees
contribute to national and local tax
revenue in a variety of ways (company tax,
employee income tax, local rates and
taxes, and value-added tax). Here the
benefit to communities is indirect. |
| • |
Black economic empowerment (BEE). |
| • |
Asset ownership: Amplats has undertaken
a number of empowerment deals based
on equity ownership. These equity
ownership models involve one or several
assets, including mines and processing
facilities. Benefits are delivered through
share value and dividends. |
| • |
Business-process ownership: Here
businesses in communities are given the
right to own or co-own mine-related
business processes, such as transport. |
| • |
Preferential procurement: Amplats
practises preferential procurement in
local communities, in compliance with
broad-based black economic
empowerment requirements. |
| • |
Local economic development: Local
economic development (LED) projects
are undertaken under the umbrella of the
mines’ SLPs, which require LED in host
and labour-sending communities. Local
infrastructural development is a strong
focus of these programmes, and its
impacts are often direct. |
| • |
Community social investment (CSI):
Amplats has CSI programmes at all its
sites focusing on community upliftment. |
|
| |
| Amplats is currently working towards an
integrated-benefits model which entails a
single planning process that would manage
all social initiatives in a manner designed to
maximise their benefits. This model enables: |
| • |
the early identification of bottlenecks; |
| • |
the effective allocation of both monetary
and human resources; and |
| • |
an effective feedback mechanism
allowing performance to be tracked. |
|
| |
| Amplats currently follows an inclusive zone
(radius) approach of 50 km from its
operations for the identification of
beneficiaries of community development.
The implementation of the approach varies
from operation to operation, for the
following reasons: to aid in the practical
implementation of projects and benefits;
because of differing socio-economic
community environments; or simply
because of varying interpretations between
operations. The approach is an aggregation
of other methods and aims to cover, within a
single measure, the following: |
| • |
The majority of communities who supply
inputs to the mine. |
| • |
Communities in possession of legal rights. |
| • |
Communities suffering negative impacts
from a mine. |
|
| |
| However, the approach may not always be
the correct one and its rigid application may
limit the value gained from the Company’s
developmental programmes. Amplats will be re-examining the benefits derived from
this definition in terms of its host
communities and its associated
developmental interventions. |
| |
Community share ownership
scheme – Project Alchemy |
An innovative multibillion rand economic
empowerment transaction has been
designed to promote long-term sustainable
development in host communities and key
labour-sending areas that are not currently
benefiting from the Company’s extensive
BEE programmes. This groundbreaking
initiative heralds a new approach that
emphasises broad-based black economic
empowerment and engagement with
communities. Since the Company has been
exploring innovative ways of enhancing and
optimising the benefits that accrue to host
communities, this transaction is an
important element of this work and a catalyst
to its full realisation.
Alchemy is a R3.5 billion transaction aimed
at ensuring the long-term sustainable
development of four of our host
communities and major labour-sending
areas. The transaction is notionally
vendor-funded over 10 years at a fixed
9.5% notional interest rate and includes an
upfront discount of 5%. Amplats has issued
a total of 6,290,365 ordinary shares of
10 cents each to the Lefa La Rona (Our
Inheritance) trust. The market value of such
shares (inclusive of the 5% discount) was
R528.59 per share, determined with
reference to the share price immediately
prior to the announcement date for the
transaction. The Alchemy shares issued
represent 2.33% of Amplats ordinary shares
in issue prior to the issue of the former.
The Lefa La Rona Trust has been established
to act as a conduit between the Company and
four development trusts (Development
Trusts), to be set up for the benefit of host communities within an approximate radius of
15 km from the Amandelbult, Rustenburg,
Twickenham and Mogalakwena mines
(collectively “the Mines”) and a non-profit
company (Non-profit Company)
incorporated for the benefit of the labour-sending
areas. The Development Trusts and
the Non-profit Company will benefit from the
following cash flows, which will be used by
the entities for public-benefit activities
within the benefit areas: |
| • |
Annual dividend receipts. |
| • |
A guaranteed minimum dividend flow of
R20 million per annum to provide an
annual cash amount to the Development
Trusts and the Non-profit Company, after
taking into consideration the annual
dividends received. |
| • |
Rechannelled CSI spend of R30 million to
the extent that the Development Trusts
secure approval for development projects
within the host communities. |
| • |
Health and safety cash-flow benefits for
the Development Trusts if key
performance indicators relating to
on-and-off-mine health and safety targets
are achieved. |
| • |
Proceeds from the potential increase in
the Amplats share price after settling of
the notional vendor funded loan, to the
extent that the shares are disposed of by
the Development Trusts and the
Non-profit Company at the expiry of the
term of the transaction. |
|
| |
| The Company’s ultimate ambition in this
transaction is to make a meaningful and
sustainable contribution to the ability of
those communities to thrive well beyond the
life of our mining operations. Additional
details about Project Alchemy are included
in a case study on the project. |
| |
Unki Platinum Mine – the
Shurugwi Development Trust |
| Amplats announced the implementation of a
10% community empowerment transaction
(Community Transaction) at its Unki
Platinum Mine (Unki) in Zimbabwe. The
Community Transaction is an integral part of
Unki’s indigenisation plan in accordance
with the Indigenisation and Economic
Empowerment Act. Unki will establish a trust
called the Shurugwi Development Trust for
the purpose of subscribing for, and holding,
10% of Unki’s ordinary shares in issue. In
addition, Unki will donate US$10 million to
the Shurugwi Development Trust, which
donation is intended as seed capital to assist
the Shurugwi community in the
establishment of identified and approved
social and economic development projects. |
| |
Social investment |
| Our support for local communities through
direct social investment continued to grow in
2011. Total social investment spend reached
R187 million, up from R118 million in 2010. A
breakdown of this spend on community
development projects is shown in a table in the corporate social investment section. The following noteworthy projects
were in operation in 2011: |
| • |
Thlabani West Primary School, which was
constructed by Amplats at a cost of
R15 million, was officially opened and
handed over to the Department of
Education. |
| • |
The Paardekraal community hall was
handed over to the Rustenburg Local
Municipality. It was constructed by the
Company using local contractors at a cost
of R14 million. |
| • |
The Jalamba Clinic in the Eastern Cape
was completed in partnership with the
Anglo American Chairman’s Fund. |
| • |
The Abalimi Phambili food security and
micro-enterprise development project
was conducted with Teba in the Eastern
Cape. |
| • |
Road improvements and a major traffic-intersection
upgrade was completed in
Northam town extension 6. |
| • |
A R40 million bursary fund was launched
for individuals from the communities
close to Twickenham Platinum Mine. |
| • |
Upgrades were made to Riuchanyo
Secondary School, Lundi Primary and
Damvudzo Secondary School, which are
adjacent to Unki in Zimbabwe. |
| • |
Training in home maintenance and portable
skills was provided for over 1,000
Twickenham and Mogalakwena community
members at a cost of R5 million. |
| • |
There was ongoing development of the
glass bead and craft project in Rustenburg. |
| • |
Second-chance programmes were run
through Edumap to help matriculants
from communities near our operations to
improve their matriculation results in
order to gain entrance to university. |
| • |
Extra maths and science lessons were
organised during the winter and spring
school holidays in both the North West
and Limpopo provinces. Altogether 2,034
learners attended these classes. |
|
| |
The beneficiaries of many of the projects
and programmes listed above were
interviewed by an external service provider
in order to ascertain the ways in which their
lives had been affected by the projects.
A selection of these stories are captured in
case studies in this report and a full set of
stories is available on the internet at www.angloplatinum.com.
Several noteworthy projects began in 2011,
including: |
| • |
the construction of Ethridge Combined
School in Bizana in the Eastern Cape,
which is a labour-sending area; |
| • |
viability assessments for, and piloting of,
an organic-farming project across four of
our operations; |
| • |
planning for Manthe School in Taung in
the province of North West, which is also a
labour-sending area; and |
| • |
the construction of, and upgrades to,
parts of the waste-water treatment works
at Northam. |
|
|
|
|
| |
Corporate social investment, R million |
| |
CED programmes |
Percentage |
| |
2011 |
2010 |
2009 |
2011 |
2010 |
2009 |
| Health |
2.5 |
6.7 |
6.0 |
1.3 |
5.6 |
3.4 |
| Education and youth projects |
37.5 |
50.4 |
34.7 |
20.1 |
42.5 |
19.7 |
| Environment |
– |
1.6 |
– |
– |
1.3 |
– |
| General community development (including infrastructural projects) |
99.1 |
11.0 |
69.4 |
53.1 |
9.3 |
39.5 |
| Arts, culture and heritage |
1.0 |
– |
40.7 |
0.5 |
– |
23.2 |
| Housing |
– |
– |
– |
– |
– |
– |
| Other |
22.6 |
34.0 |
– |
12.1 |
28.6 |
– |
| Chairman’s Fund contribution |
23.8 |
15.0 |
25.0 |
12.8 |
12.6 |
14.2 |
| Total |
186.5 |
118.7 |
175.8 |
100 |
100 |
100 |
|
| |
| Children learning at Tlhabane West Primary School |
|
| New school brings quality education and
peace of mind to Tlhabane West and
Geelhout Park |
| Some years ago it became clear that a primary school was sorely needed close to
Tlhabane West and Geelhout Park, two adjacent communities whose younger
children had to take a dangerous route to schools in Tlhabane or else travel a long
way to schools on the outskirts of Rustenburg. Anglo American Platinum Limited
(Amplats) came to the party after being asked to build the school by the provincial
department of education. |
|
|
|
|
Tlhabane West Primary opened its doors in January 2011, to an intake of 460
children enrolled in Grades R to 5. The event was accompanied by enormous relief
and jubilation, as previously many children had to walk across Swartruggens Road
to attend schools in Tlhabane, often with tragic consequences. According to
members of the new school’s governing body, no less than 20 pupils had been
knocked down by cars on the road during the five years leading up to 2011.
Moreover, many of the families living close to the school are now being spared the
cost of transport to school.
Transforming what was a dumping site, the school, which cost R16 million to build,
boasts 25 classrooms, an administration block, a library that also serves as a media
centre, a computer lab and a multipurpose room since converted into a science
laboratory. As it is a Government institution, the children now have access to
quality education at affordable rates.
The principal, David Ditshego Tlhowe, explained that the school would take
another 370 pupils in 2012, while also introducing Grade 6 and hiring additional
educators. The school’s first Grade 7 intake would be realised in 2013.
Because Tlhabane West Primary is an English-medium school, it accommodates
the cosmopolitan community of Geelhout Park, whose residents include migrant
mine workers from other southern African countries and the Eastern Cape. Many
parents who had enrolled their children in English-medium schools in town have
since brought them closer to home.
Tlhabane West Primary remains a work in progress. On the first school day of
January 2011, furniture had yet to be delivered. However, the most critical fittings
were delivered within days of the school starting. As at December 2011, Amplats
had obtained quotations towards fully equipping the computer and science
laboratories, and also the library. It plans to have these facilities fully resourced by
March 2012.
Follow-up research by an independent consultant with teaching staff and learners
showed that the school has made a substantial difference to the people in it.
Petroba Mmatsie, newly promoted Head of Department (HoD) for the Foundation
Phase, who had previously taught at a school built in 1986, said: “For me, this
facility is like a university.” She cherished the bigger classrooms and air
conditioning in the staff room. Her peer, Amelia Memela, who is the HoD for the
Intermediate Phase, appreciates the storerooms provided at both ends of each
classroom block and is delighted at having her own office, especially since she no
longer has to go through the awkward business of conducting teacher
assessments in classrooms. Ratile Rammala, a Grade 4 learner, says he has
enjoyed learning about mixed and common fractions and that he likes Tlhabane
West better than his old school because “the facilities here are newer, and the
toilets flush very well.”
Lauding the security features of the school’s architecture, Principal Tlhowe singled
out the higher-than-average balconies and strong security doors. Members of the
school-governing body also praised the school’s security performance. They said
school gates were locked throughout the day, keeping children safe and
inaccessible to drug dealers. According to the body’s deputy chair, “Anglo
American Platinum has given the community a sanctuary for our learners.”
Meanwhile, Principal Tlhowe is amassing more staff to bring out the best in the
children. In order to build formidable mathematics and science capability, he has
appointed mathematics specialists for both the intermediate and the higher
primary phases.
There are three drawbacks at the school: the lack of sporting facilities, the absence
of a school hall, and the fact that the Grade R facilities were not designed
separately from the rest of the building. It is in these areas that future interventions
will have to be made. Nevertheless, this is not deterring new applicants: parents
coming to enrol their children at the school often have to place them on the
waiting list.
Tlhabane West Primary is one of six schools either built or renovated by Amplats
within the municipality of Rustenburg during the 2010/2011 financial year. School
infrastructural development signifies that Amplats is intent on contributing to
meaningful educational support among the communities close to its mines. In
addition to such development, the Company actively supports quality learning,
especially in mathematics and science, in the schools neighbouring its operations
in North West and Limpopo. |
|
|
| |
| |
| The principal of Phaladingo Technical High School, HP Chauke, talks to Nkhensani Baloyi, the CED Co-ordinator at Mogalakwena Mine |
|
| Project Alchemy |
| Overview |
| Anglo American Platinum Limited (Amplats) has made significant progress with
Project Alchemy, its community-empowerment transaction. |
|
|
|
|
The project is designed to promote sustainable development within those host
communities and key labour-sending areas that are not benefiting from the
Company’s existing black economic empowerment (BEE) programmes. More
specifically, Project Alchemy is aimed at improving the wellbeing and ensuring
the long-term development of communities situated close to the Mogalakwena,
Rustenburg, Twickenham and Amandelbult mines, and will also channel
resources towards key labour-sending areas.
Amplats initiated this project in order to strengthen its relationship with local
stakeholders and to ensure that its host communities benefit from the mines’
presence. |
|
| Guiding principles |
| Project Alchemy is guided by the following principles: |
| • |
Designing a sustainable transaction structure that will result in real benefits
for the target communities from the outset of the transaction. |
| • |
Providing funding for the transaction through a “cashless” funding structure
for 10 years. |
| • |
Ensuring transparency through the meaningful engagement and education of
the communities. |
| • |
Ensuring that the communities benefit from the structure, through both
dividends and capital appreciation, for a period of at least 30 years. |
| • |
Promoting the viability of communities beyond the life of the mines. |
|
|
| Ownership via the Umbrella Trust |
| An umbrella trust will be created to hold the Amplats shares for the benefit of the
beneficiaries. Independent development trusts will be formed for the benefit of
each of the communities, and a non-profit company for the benefit of the
labour-sending areas. Each development trust (including the non-profit company)
will be entitled to appoint a trustee to and receive a pro-rata participation interest
in the Umbrella Trust. |
|
| Funding |
| No equity contribution will be required from the beneficiaries. A notional loan
will be used by the Umbrella Trust to purchase shares in Amplats. Notional interest will be fixed at a rate of 9.5% for a period of 10 years. The funding
structure provides communities with exposure to capital appreciation, a
portion of dividends in cash and voting rights. Amplats will repurchase a
portion of the shares held by the Umbrella Trust to settle the outstanding
notional loan at the end of 10 years. |
|
| Restrictions |
| The shares allocated to the Umbrella Trust may not be sold or encumbered for
the 10 years. Thereafter, 40% of the beneficiaries’ entitlement at the end of the
term may be sold or encumbered, with the remaining 60% saleable only after
20 years. This equates to the current 30-year life-of-mine period. |
|
| Benefits |
| The primary benefits of the structure are as follows: |
| • |
Local communities receive cash benefits from the start of the transaction. |
| • |
They are able to influence the amount of cash they receive each year. |
| • |
The minimum guaranteed dividend means that the local communities
involved will always receive a minimum guaranteed dividend even if Amplats
does not make a profit or declare a dividend to other shareholders. |
| • |
The early settlement of the notional loan as the result of the outperformance
of the Amplats share price will ensure significant equity-value transfers to the
community, thereby reducing the risk of the structure. (However, like all other
shareholders in Amplats, local communities will be exposed to equity risk,
which might mean that the share price underperforms even though the
Company is making profits.) |
|
|
| Governance |
During the first two years of the project (the mobilisation phase), and in order to
ensure that benefits begin to flow immediately, Amplats will establish the
development trusts and appoint five initial trustees per development trust, three
of whom will be independent. The democratic process of electing trustees
nominated by local people will be implemented during this period. A needs-assessment
will be conducted with the participation of the residents, and the
results will inform the project-development framework.
Project Alchemy is intended to progress through a consolidation and then an
operational phase, reaching full autonomy when elected trustees are in the
majority. At that stage Amplats will no longer be entitled to appoint trustees, and
the development trusts will be able to sell and/or encumber up to 100% of the
remaining Amplats equity holdings. |
|
|
| |
KEY COMMUNITY ISSUES |
| In 2011, we recorded 30 community
incidents across our operations through our
complaints and grievance mechanisms,
three of which were formal grievances.
These are in the process of being resolved
through our mechanisms designed to track
and monitor progress. Complaints about our
activities or impacts, community protests
and memorandums of demand handed to
us by the community. Issues raised as part of
these incidents typically included access to
employment and business opportunities;
concerns about noise, water and air quality;
lack of community development by
operations in the communities; and access
to land. Details of the main incidents and
issues are provided below. |
| |
Twickenham Platinum Mine
– Magobading relocated
community |
| The residents of Magobading have raised
the following concerns: |
| • |
House-roof structures affected by termites. |
| • |
Lack of business and employment
opportunities. |
| • |
Enviro loo toilets that are full and now
pose a health risk. |
|
| |
| These issues are on the radar of the
international media through the pressure of
NGOs such as the Benchmarks Foundation.
Mine management maintains that the houses
are privately owned, with full title deeds in the
possession of the occupants, and that the
correct process was adhered to before, during
and after relocation. Basic home-maintenance
training was conducted in the
community in 2011. In addition, a service
provider has been appointed to assist the
communities in cleaning ablution facilities. |
| |
Twickenham Platinum Mine –
the Maropaneng community |
There were several protests relating to
Twickenham Platinum Mine (Twickenham)
in 2011. On 25 May, a community group
from Maropaneng village, downstream of
the mine, protested against the Company
and attempted to stone a police vehicle.
The police opened fire on the protesters
and 33 community members were arrested
and released a couple of days later.
The protest hinged on allegations regarding
loss of water and access to land. The mine is
working with the community and the local
authorities to ensure that the communities
around Twickenham Platinum Mine have
access to water. Twickenham’s facilities at
Mopetsi Camp are being used to
accommodate approximately 50 additional
police officers deployed to the area by the
South Africa Police Service. |
| |
 |
| |
Mogalakwena Mine –
Sekuruwe grave relocation |
| The Sekuruwe grave relocation has been an
issue in Mogalakwena since 2009. It was
alleged that the funeral services company
subcontracted to relocate the graves had dug
up remains that were more than 600 years
old. Amplats commissioned an extensive
review of the process and remedial work on
all the graves has been completed. The
Company would like to close out the process
with a cleansing ceremony and reburial, but members of the Sekuruwe Committee are
preventing this on the basis that not all bones
were recovered. The bigger issue appears to
be their problem with the surface lease over
the farm Blinkwater, which is being used for
the disposal of tailings. At a meeting with the
Minister of Mineral Resources on 7 April
2011, Amplats was asked to place on hold all
depositing on the Blinkwater tailings dam
until such time as the grave issue had been
resolved. Tailings deposition was stopped for
a period of two months and recommenced
on 15 June following community
consultation. A proposal was tabled by
Amplats via the community’s lawyer, Richard
Spoor, in the same month and was accepted
following a community meeting on 19
September. A community pre-resolution
meeting, which took place on 26 November,
was witnessed by the Department of Rural
Development and Land Reform. The final
resolution meeting will be held in the first
quarter of 2012. |
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| Community members who remain to be resettled at Mogalakwena Platinum Mine |
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| Motlhotlo relocation process |
| The long-standing process of seeking finality to the resettlement of the Ga-Puka and
Ga-Sekhoalelo communities adjacent to the Mogalakwena Mine has been advanced
through a process of detailed negotiation initiated in 2010. The process, involving
the community and Anglo American Platinum (Amplats), has provided a basis to
finalise the resettlement of the community, which has remained incomplete after a
small portion of the community refused to move following the agreement by the
broader community to move following a resettlement agreement. |
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| Initial resettlement agreement |
In the mid-1990s, Amplats identified the need to resettle the two villages, jointly
known as Motlhotlo, comprising 957 households. The area was identified as the only
viable location for the dumping of waste rock by the mine. Parts of it also fell within
the 500 m safety zone around the open-pit mine.
In 2005, following study and negotiation, the community and all household heads
signed off on the resettlement agreement, which provided detail on the villages to
which the community would move, the nature of compensation for houses,
improvements and inconvenience experienced. In addition, two additional farms
were donated to the community, compensation provided for grave relocations, two
trust funds of R25 million each established, and provision made for secondary and
vocational education and training as well as the creation of preferential employment
opportunities.
Implementation of the resettlement got under way in 2007. By 2008, the village
construction was completed and 897 houses were relocated. |
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| Resistance |
There were, however, a small proportion of households who resisted relocation.
Initially numbering about 60, the households in this category have subsequently
grown to about 160 with the growth in numbers attributed both to the coming of age
of young people in the existing families, as well as a number of new arrivals.
In 2006, a committee representing a group of discontented stakeholders was
formed, namely the Motlhotlo Development Committee (MDC). This group formed
because of a perceived failing of the existing community committees to be
sufficiently accountable and representative. Furthermore, there was unhappiness
among the youth about how their interests and concerns were catered for through
the resettlement process and in the new village. This resulted in several violent
protests at the time of resettlement. Police arrests were made and there were claims
of police brutality during these marches.
In response to these incidents, the Office of the Premier intervened and formed a
task team to navigate a way forward. The resettlement process continued after the
task team showed some early progress. However, there remained a group of MDC
members who were discontented and who broke away to form the Motlhotlo
Relocation Resistance Committee (MRRC).
Those who did not move were aggrieved with the way in which the resettlement
process was managed and with the support provided in the new villages. |
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| Negotiation |
Amplats had limited engagement with the resistant community, their leadership and
their elected legal counsel until 2010 following the completion of a post-resettlement
review by ERM.
The Company experienced increasing pressure to gain access to the land on which
the resistant households live. In turn, there was a realisation among the remaining
community that they needed to relocate due to the difficult conditions of life they
experienced at Motlhotlo.
In mid-2010, Amplats together with the community’s legal adviser, appointed ERM
to facilitate a process of dialogue to define a set of mutually acceptable terms for the
resettlement of the resistant households.
Both the Company and community representatives received mandates to engage in
these discussions, on the understanding that they were undertaken without
prejudice.
The facilitated dialogue has been undertaken since July 2010 and is approaching
conclusion with several iterations of discussion being undertaken with a view to
agreeing on a framework for an agreement. Issues were identified and options were
generated and assessed through discussion. The community was kept apprised of
the progress of the discussion.
In August 2011, a framework agreement was agreed and presented to the
community for its consideration. The framework agreement provided options for
community members to move to the existing resettlement villages of Rooibokfontein
and Armoede. Alternatively, an option was presented that, should sufficient numbers
choose to do so, a new farm could be identified and appropriately developed for
community members to move to. A further option gave households the option to
move elsewhere. In addition, the draft agreement identifies the basis of
compensation for houses and improvements, as well as compensation for
inconvenience experienced. Furthermore, provisions are made to support the move
and transition to new homes, as well as livelihood support after resettlement.
Subsequently, there have been several rounds of engagement with the community
directly to discuss and refine the details of a mutually acceptable agreement.
At the time of writing the community was examining the detail of the agreement, as
well as the possible farms to which a move could be made. It is anticipated that in
2012 an agreement will be reached between Amplats and the community, which will
be formalised through a community resolution as well as through a legally binding
agreement to be signed with the households indicating exactly what each qualifies
for. |
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Rustenburg mines – key
community incidents |
Two community marches took place in
2011 by local community youth members
to Khuseleka and Khomanani mines.
Memorandums of demand were handed
over to Company officials detailing the
communities’ expectations in terms of
skills development, employment and local
procurement opportunities. The Company
continues to engage with these
communities’ and through its CED
initiatives will ensure community
upliftment.
On 27 September 2011, a service delivery
protest at Nkoreng informal settlement
took place as the community was
dissatisfied with basic service delivery
from the municipality. Access roads to the
mine were blocked for a few hours and the
Company was asked to intervene at the
municipality. The executive mayor
addressed the situation. |
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Amandelbult mining right area
– Baphalane-Ba-Mantserre |
| There is currently a dispute between the
Baphalane-Ba-Mantserre and
Ramokokastad community as to which
community group has traditional authority
rights to the chieftainship. The Baphalane-Ba-Mantserre have title to the farm,
Schilpadsnest, after a successful land claim
and the mine is leasing this property from
the community. The Director of Traditional
Affairs in the office of the Premier of the
North West province confirmed that Chief
Joy Ramokoka is indeed a legitimate chief of
the Ramokokastad community and the
rightful heir of the chieftaincy under
question. Amplats continues to engage with
both community groups on issues pertaining
to mining issues in the area. |
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Union Mine – Sefikile Village |
| In 2011, Amplats conducted a seismic
survey in and around Sefikile Village.
Community engagement took place prior to
the survey being conducted and permission
was granted by community leadership to
proceed. During the initial stages of the
survey a faction within the community
vandalised equipment and threatened the
safety of the crew conducting the seismic
survey. The survey was delayed for a period
to allow further engagement with the faction.
On 21 May 2011, a public meeting was held
and the faction threatened both community
leadership and mine personnel. The
meeting was subsequently abandoned and
the police had to get involved. Further
engagement followed and the seismic
survey was finally completed in June 2011. |
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| The new Sefikile road |
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| A three-way joint venture brings relief to
mining communities in North West |
| During the decade leading up to 2009, every time it rained some 3,000 late
workers reduced the workforce by close to a third at Union Platinum Mine in
Swartklip in the province of North West. This was caused by two stretches of
unmaintained dirt roads between the mine and various villages where miners lived.
Carved on loamy gravel soil, the roads became skid pads for vehicles in rainy
weather, with detrimental consequences for the mine, its staff and other members
of nearby communities. |
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Isaac Serole, a member of the Sefikile Headman’s Committee, remembers a day in
early 2010 when three busloads of employees were stuck in mud on the road past
Sefikile village. He says the workers – who had to clock in from 05:00, had to walk
the rest of the way and arrived some two hours late. Sarel Gaonathebe, a Bojanala
Bus Service driver for the past several years, recalls a time when up to eight buses
became grounded after the one travelling in front sank its wheels in mud. Another
Bojanala veteran driver (with 15 years’ experience on the Kraalhoek–Swartklip
stretch), relives an incident in October 2002 when the steering rod of his bus
snapped. Many of his passengers sustained significant injuries when his vehicle
veered off the road and overturned.
Owing to the bumpy road, buses broke their wheel springs on a regular basis,
resulting in high maintenance costs. Punctured wheels, loose engines and
collapsed exhausts were the order of the day. “At one time, there were more buses
in the repair plant of the Bojanala Bus Service in Rustenburg than there were on
the road,” says Union Mine’s community engagement and development manager,
Benjamin Mokoka, who was assigned to investigate the impacts of the road’s
situation on mine employees and production. Moreover, trips to the affected
villages became less than popular among taxi drivers whose vehicles were hardly
ever fully roadworthy and incurred the wrath of the traffic authorities. They either
dropped out of the routes or dedicated their older vehicles to them. Inevitably, the
communities of Kraalhoek, Mantserre, Mopyane and Sefikile were condemned to
decrepit vehicles for transport out to Swartklip and beyond.
There were other problems too. According to community leaders from both
Sefikile and Kraalhoek, communities suffered from inhaling dust when the buses
transported workers to and from their shifts. Some pregnant women got shaken
so hard on the rough roads that they delivered in the vehicles en route to
Moruleng Clinic or Saulspoort Hospital.
In 2007, Anglo American Platinum Limited (Amplats), through its leadership at
Union Mine, initiated the process of negotiating for a joint venture with the
Bakgatla-Ba-Kgafela Tribal Authority, the Moses Kotane Local Municipality and the
provincial department responsible for roads. The venture involved tarring 35,3 km of road, to be carried out in three phases. The responsibility for Phase One, which
covered 12,5 km, and Phase Two, which entailed 16, 8 km, were allocated to the
provincial department and Amplats respectively. In building the new road, Amplats
bypassed several portions of the old route. Phases One and Two were completed
in March and June 2011 respectively, at a cumulative cost of R112 million.
The final phase is due to be realised through a partnership between the Moses
Kotane Local Municipality and the Bakgatla-Ba-Kgafela.
An independent consultant assessing the impact of the project found that by and
large the communities have responded very positively to the new road, with
community leaders citing the following: |
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Villages are now linked to major provincial road networks, and the city of
Rustenburg is easier to access. |
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Since transport owners no longer feel that they will be sacrificing their buses
and taxis on the road, they are using newer vehicles and providing better-quality
transport. |
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Residents have been spared the discomfort of severe dust inhalation. |
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Communication between Sefikile and Kraalhoek has improved, as private
motorists need not go via Swartklip to reach either destination. |
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In the community of Sefikile, the tarred road that now bypasses the village has
reduced the traffic hazards to which members – including primary pupils on
their way to and from school – were previously exposed. |
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For the communities around Kraalhoek, the project benefits were multiplied
when some of the inhabitants got signed up for the various jobs that
accompany road construction (eg sweeping, vehicle refuelling). |
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Incomplete as the project may be, “it has had a very positive spin-off for social
development,” commented Lebogang Mataboge from the Bakgatla-Ba-Kgafela
Tribal Authority. He said the new road had opened up possibilities for agents of
development such as non-governmental organisations to take up interests in the
Kraalhoek-Sefikile portions of Bakgatla land. He added: “Now that those people
can be reached, and can also reach the world outside, we can only say the sky is
the limit...”
The only negative sentiments expressed related to the closure of the two previous
access points at the north and south ends of Union Mine. Some people who could
walk to work before now have to pay for transport, while for others the trip by road
takes longer than it used to. Community members felt that Union Mine had not
informed them of its plan to close the two entrances, thereby depriving them of
the opportunity to at least prepare for these changes.
Amplats has taken these findings on board, as part of its campaign, which received
special emphasis in 2011, to improve its relationships with the communities near
its mines by making sure they are given all the information they need regarding
issues that affect them directly. |
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