AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 1 of 123 MINING RIGHTS: 12/2009MR (DMR Reference Nr: NW30/5/1/1/2/016MR) (Vaal River Operations: Moab Khotsong, Great Noligwa and Kopanang mines) 05/2008MR (DMR Reference Nr: NW30/5/1/2/2/04MR) (Edom and Kleinfontein) 80/2007MR (DMR Reference Nr: NW30/5/1/2/2/15MR) (“Moab Extension”) CONVERSION OF OLD ORDER MINING RIGHT(S): ML 15/2000 (DMR Reference Nr: NW30/5/1/2/3/2/2/14 MR) - Farm Grootdraai NEW ORDER MINING RIGHT: A portion of the Farm Altona 50HP (02/2010 PR (NW/30/5/1/1/2/287PR.) Social and Labour Plan Report of 2011 Vaal River Operations Date of submission: 30 March 2012 SOUTH AFRICA REGION
Transcript
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 1 of 123
MINING RIGHTS: 12/2009MR (DMR Reference Nr: NW30/5/1/1/2/016MR) (Vaal River Operations:
Moab Khotsong, Great Noligwa and Kopanang mines) 05/2008MR (DMR Reference Nr: NW30/5/1/2/2/04MR) (Edom and Kleinfontein) 80/2007MR (DMR Reference Nr: NW30/5/1/2/2/15MR) (“Moab Extension”)
CONVERSION OF OLD ORDER MINING RIGHT(S): ML 15/2000 (DMR Reference Nr: NW30/5/1/2/3/2/2/14 MR) - Farm Grootdraai
NEW ORDER MINING RIGHT: A portion of the Farm Altona 50HP (02/2010 PR (NW/30/5/1/1/2/287PR.)
Social and Labour Plan Report of 2011 Vaal River Operations Date of submission: 30 March 2012
SOUTH AFRICA REGION
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 2 of 123
29 March 2012 I, Mike O’Hare the, Executive Vice President South Africa Region of AngloGold Ashanti Limited (Company), undersigned and duly authorized thereto by AngloGold Ashanti Limited, confirm that all information contained in this report for 2011 in terms of commitments made in the company’s revised 2010-2014 Social and Labour Plan is true and reflective of the AngloGold Ashanti’s, South African Region’s achievements. Signed at Potchefstroom on this 29
th day of March 2012.
Signature: …………………………………...…………………………………………………….…………………………………. Executive Vice President South Africa Region
AngloGold Ashanti Limited \ Reg. No.1944/017354/06 SOUTH AFRICA REGION :41 Buskus Street, Baillie Park, Potchefstroom 2531,PO Box 6119, Baillie Park, Potchefstroom, 2526, \ South Africa. Tel +27 (018) 290 3000 \ Fax +27 (018) 290 3010 \ Website: www.AngloGoldAshanti.com
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 3 of 123
CONTENTS Page No
SLP Glossary of Terms and Acronyms / Abbreviations 4
Introduction and Executive Summary 66
SECTION 1: Reporting 10
SECTION 2: Ownership 13
SECTION 3: Housing and Living Conditions 16
SECTION 4: Procurement 23
SECTION 5: Employment Equity 31
SECTION 6: Human Resources Development 42
SECTION 7: Mine Community Development 63
SECTION 8: Sustainable Development & Growth 113
SECTION 9: Beneficiation 118
SECTION 10: Measures to Ameliorate The Impact of Downscaling and Retrenchment 119
SECTION 11: Financial Provision 121
ANNEXURES
Annexure 1 - Breakdown of Employees Annexure 2 – Form S Annexure 3 – Form Q Annexure 4 – Form R Annexure 5 – Form T
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SLP Glossary Of Terms And Acronyms / Abbreviations
Abbreviation Full Word
ABET Adult Basic Education and Training
AGA AngloGold Ashanti
ATDS AngloGold Ashanti's Training and Development Services
ATR Annual Training Report
BEE Black Economic Empowerment
BO Black Owned
BPF Business Process Framework
BWO Black Women Owned
CBOs Community Based Organisations
CSDC Central Skills Development Committee
CSI Corporate Social Investment
DMR / DME Department of Mineral Resources / Department of Minerals and Energy
DoL Department of Labour
DTI Department of Trade and Industry
EAP Economically Active Population
EDP Executive Development Programme
EE Employment Equity
EME Exempted Micro Enterprise
FET Further Education & Training
FLC Foundational Learning Competence
HDSAs Historically disadvantaged South Africans
HIV Human Immunodeficiency virus
HRD Human Resources Development
ICMM International Council on Mining and Metals
IMDP Intermediate Management Development Programme.
LED Local Economic Development
m Million
Masakhisane R10 million development and equity fund that works in conjunction with SMEDI
MDP Management Development Programme
MC/ Mining Charter or the Charter Broad-Based Socio-Economic Empowerment Charter for the South African mining industry
MPRDA Mineral and Petroleum Resources Development Act, 28 of 2002, which came into effect in South Africa on 11 May 2004. Regulates the granting of
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SLP Glossary Of Terms And Acronyms / Abbreviations
Abbreviation Full Word
mining authorisations and prospecting permits.
MHSC Mine Health and Safety Council
MQA Mines Qualifications Authority
NGO Non -Government Organisation
NPAT Net Profit after Tax
NPO Non-Profit Organisation
NQF National Qualifications Framework
NUM National Union of Mineworkers (South Africa) - union representing the largest number of South African underground employees
NWP North West Province
P2V Pathway to value
Paterson grading system Well-known job classification system used at a number of AngloGold Ashanti operations
PEA /PER Personal Effectiveness Appraisal /Personal Effectiveness Review (Merit award)
QCTO Quality Council for Trades and Occupations
QSE Qualifying Small Enterprise
R South African Rand
Revised SLP SLP as submitted to the DMR in October 2011, revising the plan submitted in August 2010.
SA South African
SAR South African Region
SDC Skills Development Committee
SEAP Stakeholder Engagement Action Plans - plan to engage with stakeholders, formally and timeously in respect of issues that relate to the operation and may affect them
SETA Sector Education Training Authority
SIMS State Intervention to the Mineral Sector
SLP Social and Labour Plan
SMEDI Small and Medium Enterprises Development Initiative unit established by AngloGold Ashanti to identify and help small business with potential
SP Systems for People
Teba An institution owned by the South African mining industry, through which the industry has historically recruited labour but which now fulfils a broader social role in addition to its recruitment function
VR Vaal River Operations
WSP Workplace Skills Plan
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INTRODUCTION AND EXECUTIVE SUMMARY
Introduction The company submitted its Vaal River operations Social and Labour Plan, as outlined below on 27 August 2010. The delay in the submission was due to the fact that during 2010, the Mining Charter was in the process of being reviewed by the government and relevant stakeholders, and it was envisaged that this process would be concluded during the first half of the year. Unfortunately, this was not the case and the Amended Mining Charter was only gazetted in September 2010, some few weeks after the submission of the above-stated Social and Labour Plan (SLP). On 10 May 2011, the company received a letter from the DMR NW (North West Province) Regional Manager with respect to its application for “Farm Grootdraai” (ML 15/2000), directing it to reconsider some of the provisions of the above stated Social and Labour Plan. This precipitated a process of consultations with the NW DMR, unions and municipalities of Matlosana (operational area), Moqhaka (host communities) and OR Tambo (Labour sending area), aimed at reviewing the above-stated SLP in line with the DMR directive and agreement reached during the consultation process with all the stakeholders. This resulted in the Revised SLP as submitted to the DMR on 16 November 2011. The abovementioned consultations resulted in the company substantially increasing its financial provisions, taking into account the DMR’s directive and recommendations, in particular the recommendation that if “Farm Grootdraai” and Altona have to form part of the VR SLP, it would have to increase its financial provisions parallel to the above review of the SLP. The company has subsequent to the submission of the abovementioned Revised SLP, engaged with the DMR to get guidance on the SLP Implementation Plan. These resulted in the parties reaching the understanding that issues raised by the DMR subsequent to the submission of the abovementioned SLP, will be dealt with in the abovementioned Implementation Plan due for submission together with this report. While the above stated consultations had resulted in the slowing down of the delivery of the Community Development projects for 2011, the stakeholders have now reached consensus on projects to be implemented in the period 2012 to 2014. To speed up the delivery of the projects the company has signed a Memorandum of Understanding with OR Tambo District Municipality outlining the structures and processes to be followed with respect to the implementation of SLP projects. The company has also proposed the same to the Matlosana Municipality. Beginning in July 2011, the company also embarked on a process to develop a Socio-Economic Development Framework (SEDF) in conjunction with all the relevant stakeholders, including the DMR, recognised trade unions, municipalities, and Non-Government Organisations (NGOs). The abovementioned stated SEDF was completed in February 2012. The objectives of the Socio-economic development strategy are: ► Integrate the development of communities in which we operate into our core business activities; ► Support national policy options that address youth unemployment; ► Satisfy our external obligations within legislative frameworks; ► Be consistent with the millennium development goals of the United Nations and the National Planning Commission’s vision for South Africa; and ► Give consideration to South Africa’s Integrated Development Planning Municipality framework in the development of the Social and Labour Plans.
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The SEDF has as its key focus areas the following: ► land and environment strategy, ► infrastructure strategy, ► social development strategy, ► economic development strategy and ► institutional development strategy Underpinning the SEDF is the AngloGold Ashanti Socio-Economic Development Fund, comprising three categories of funds covering the abovementioned five focus areas of the SEDF as follows: ► Local Economic Development (LED) Fund – this provides for the identified LED projects which provide for infrastructure development projects, income generating
and/or job creation projects, and community human resources development programmes, funded in the form of grants ► Enterprise Development (ED) Fund - this provides for the funding of ED projects in each of the host communities and labour sending areas by way of loans to the
entrepreneurs ► Social and Institutional (SI) Development Fund – this provides for the funding of social and institutional projects as proposed mainly by the NGOs in the host and
labour sending areas, by way of grants from the company.
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Executive Summary This report outlines the progress on the undertakings and commitments as contained in the 2010 to 2014 Vaal River Social and Labour Plan (SLP) {both the original and revised submissions} covering the following mining rights: 12/2009MR (DMR Reference Nr: NW30/5/1/1/2/016MR) (“Vaal River Operations: Moab Khotsong, Great Noligwa and Kopanang mines”) 05/2008MR (DMR Reference Nr: NW30/5/1/2/2/04MR) (“Edom and Kleinfontein”) 80/2007MR (DMR Reference Nr: NW30/5/1/2/2/15MR) (“Moab Extension”) And the following old order mining right(s) awaiting conversion: ML 15/2000 (DMR Reference Nr: NW30/5/1/2/3/2/2/14 MR) in respect of the “Farm Grootdraai “ And in support of the following application for a new order mining right logged on the SAMRAD system: A portion of the Farm Altona 50HP (which is an area adjacent to areas covered by the aforementioned right in 1 above, currently held under 02/2010 PR
(NW/30/5/1/1/2/287PR.) AGA South Africa Region has a total workforce of 16367 employees in the Vaal River mining license area of operations which includes fixed term contractors. The breakdown of the origin of Employees is detailed in Annexure 1. The Vaal River Operations are situated approximately 180km (Kilometres) west of Johannesburg within the North West Province. The site is approximately 15km south of Klerksdorp. Other neighbouring towns are Orkney, Stilfontein, which are situated 10km and 10km respectively to the west and east of the mine. The following are the salient points in this report as they relate to the company’s progress towards achieving its Mining Charter obligations in the 2011 reporting period: 1. Reporting – The company submitted its Annual Report for 2010 on 31 March 2011. 2. Ownership – The company has exceeded the Mining Charter target of 26% Historically Disadvantaged South African (HDSA) ownership that is set for 2014 as it
achieved 26.8% HDSA ownership at the end of the 2011 reporting period. 3. Housing and Living Conditions – At the end of the reporting period, 46% of the residences were converted into single accommodation against the Mining Charter
target of 26%, and 70% of the residences were also converted into family units against the Mining Charter target of 25% during the reporting period. With respect to nutrition, the Chamber of Mines Research Organisation (COMRO) report was used as a guide in terms of the dietary requirements.
4. Procurement and Enterprise Development – At the end of the reporting period, the company achieved 39% against the MC target of 10% for capital goods, 39%
against the MC target of 40% for services and 52% against the MC target of 15% for consumable goods. The main challenges is with respect to services where the majority of suppliers are governed by the BEE code and not by the MC requirement of 25% BEE ownership. This issue has been brought to the attention of the DMR for noting. With respect to the Multinational Suppliers contribution to the social fund, the company still awaits the finalisation of the fund by the DMR and Chamber Of Mines task team.
5. Employment Equity (EE) – The company achieved all the targets as set by the MC for the 2011 reporting period. In the revised SLP the targets have also been set
per business unit, as per the recommendation of the DMR. Achievement of the targets at senior management level remains a challenge and appropriate action plans will be put in place to assist in achieving the 2014 targets in this regard.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 9 of 123
6. Human Resources Development (HRD) – Expenditure as a percentage of the total annual payroll for the reporting period was 4.6% against the MC target of 3.5%.
During 2011 DMR inspection, the misalignment of HRD to EE was identified, in particular with respect to Mentorship plan, and action plans will be put in place to align these in the above stated Implementation Plan.
7. Mine Community Development – Subsequent to the directive from the DMR, extensive consultations were undertaken in the host and labour sending municipalities
with the view to identify community development projects for the period ending 2014. The financial provision including for community human resources development programmes was substantially increased to make a meaningful impact in the socio-economic well-being of the communities in which we operate and labour sending areas. Although this resulted in the slowing down of delivery in this particular area, the stakeholders have put mechanisms in place beginning in 2012 to speed up the delivery of the above mentioned LED and community human resource development programmes.
As per the recommendations of the DMR not all ED projects should be financed as loans, especially those whose beneficiaries are likely to be broad based. In line
with this approach the ED projects have been categorised into income generating projects financed by grants (financed from the LED fund), and ED projects financed by loans (financed from the ED fund). broad based co-ops vs. narrow based individual entreprenurial. This would then be incorporated into our Implementation Plan.
As part of the SLP review, the company has now incorporated the LED projects which were managed from Corporate Office into its South Africa Region socio-
economic framework, and have included such projects in this report. Moving forward all such LED projects will first be discussed with the DMR for their approval prior to their inclusion in the SLP.
The Mandating and Implementation Committees have been established between the company and the Matlosana and OR Tambo Municipalities to speed up delivery of
the community development projects. In the case of OR Tambo a formal MOU was signed in September 2011. The Future Forum constitution was signed by all recognised trade unions in February 2012.
It is noted that in the “DMR MC Report” template reference is been made to the “BBBEE codes hav(ing) a target of 1% NPAT”. In terms of the BBBEE codes the socio-economic element, community development projects are not only confined to LED projects as identified in the IDPs of municipalities but also includes other contributions to the community like community ABET, bursaries, internships, and portable skills. To this end the community development expenditure is inclusive of Community HRD contributions.
8. Sustainable Development and Growth – With respect to Environmental Management the company revised and resubmitted its Environmental Management
Programme (EMP) during the fourth quarter of 2011, following the DMRs comments on the initial submission made in 2009. The company also complied with the commitments in the tripartite action plan on Health and Safety
9. Beneficiation – The Beneficiation Strategy by government is still in the process of being finalised. 10. Definition of “employee” – In the engagements with the DMR, it was brought to the attention of the company that the MPRDA’s definition of an “employee”includes
those of contractors. An Action Plan will be put in place to engage with the major contractors on how they will have to comply with the relevant pillars of the SLP and submit their reports to the company on an annual basis, beginning end of 2012, for inclusion in the company’s Annual Reports to the DMR.
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SECTION 1: Reporting (Monitoring and Evaluation) Mining Charter Requirement: In terms of Reporting (Monitoring and Evaluation) the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states as follows: “Every mining company must report its level of compliance with the Mining Charter annually, as provided for by Section 28(2)(c) of the MPRDA. The Department shall monitor and evaluate, taking into account the impact of material constraints which may result in not achieving set targets.” This report should be submitted to the DMR by the end of March of each year. This report serves to comply with the above stated provision of the MPRDA. The following table indicates Vaal River progress as at the end of the 2011 reporting period, as per the Scorecard for the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry:
Element Description Measure
2011 MC Compliance Targets
Progress Achieved By
2010 Actual 2011 Actual 2012 2013 2014
1 Reporting Has the company reported the level of compliance with the charter for the calendar year
Documentary proof of receipt from the department
End March 100% 100%
2 Ownership Minimum target for effective HDSA ownership
Meaningful economic participation
15% by 2009 26% by 2014
26% 26,8%
Full shareholder rights 15% by 2009 26% by 2014
26% 26,8%
3 Housing and living conditions
Conversion and upgrading of hostels to attain the occupancy rate of one person per room.
Percentage reduction of occupancy rate towards 2014 target.
25% 29% 46%
Conversion and upgrading of hostels into family units
Percentage conversion of hostels into family units against units available for conversion
25% 40%* 70%*
Home Ownership Implement initiatives to facilitate home ownership e.g. preference surveys, advice on purchasing homes, training on benefits of home ownership
No target set The home ownership survey was completed and consultations with the unions on the review of the Home Ownership Strategy is in progress
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Element Description Measure
2011 MC Compliance Targets
Progress Achieved By
2010 Actual 2011 Actual 2012 2013 2014
4 Procurement & Enterprise Development
Procurement spent from BEE entity
Capital goods 10% 39% 39%
Services 40% 29% 39%
Consumable goods 15% 40% 52%
Multi-national suppliers contribution to the social fund (New requirement of revised charter)
Annual spend on procurement from multi-national suppliers
0.5% of procurement value
Awaiting the DMR’s guidance
Awaiting the DMR’s guidance
5 Employment Equity
Diversification of the workplace to reflect the country's demographics to attain competitiveness.
Top Management (F Band) 25% 25% ** 40% **
Senior Management (E Band) 25% 22.20 % 26.4%¹
Middle Management (D Band) 35% 35% 43.4%²
Junior Management (C Band) 40% 48.5% 52.6% ³
Core Skills 20% 49.0% ** 52.3% ** ** **
6 Human Resource Development
Development of requisite skills, incl. support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation, as well as environmental conservation and rehabilitation
HRD expenditure as percentage of total annual payroll (excl. mandatory skills development levy)
3.5% 5.1% 4.6%
7 Mine community development
Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis
Implement approved community projects in line with IDP's of local and major labour sending municipalities.
Implementation of projects will serve to enhance relationships amongst stakeholders leading to communities owing patronage to projects
R23 672 979****
R 11 751 964.19 (Community Development) plus Community HRD R8 995 509 Which amount to 1.1% NPAT
Implement of community projects in line with IDP's of local and major labour sending municipalities and as committed in company SLP.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 12 of 123
Element Description Measure
2011 MC Compliance Targets
Progress Achieved By
2010 Actual 2011 Actual 2012 2013 2014
8 Sustainable Development
Improvement of the industry’s environmental management
Implementation of the approved EMPs
100% AngloGold Ashanti revised and resubmitted its Environmental Management Programme (EMP) during the 4th Quarter 2011 following DMR comments on the initial submissions made in 2009. Formal environmental performance assessments will be conducted on a two-yearly basis from the date of EMP approval.
Improvement of the industry's mine health and safety performance
Implementation of the tripartite action plan on Health and Safety
100% (Annual progress achieved against commitments in the tripartite action plan on health and safety)
N/A 100%
Utilisation of South African based research facilities for analysis of samples across the mining value chain
Percentage of samples in South African facilities
100% To be clarified
9 Beneficiation Contribution of a mining company towards beneficiation (this measure is effective from 2012)
Additional production volume contributory to local value addition beyond the base-line
Section 26 of the MPRDA (percentage above baseline )
To be clarified
Legend
* Family Units: No specific targets set by the Mining Charter. We have measured ourselves on actual units converted against total units available for conversion.
** Clarity regarding definition of core skills is required. AGA definition is all employees with core positions within Mining, Engineering, MRM and Metallurgy disciplines.
*** The 4.6% is the figure which includes white males. It should be noted that when we exclude WM, the HDSA contribution is at 6.59%.
**** This figure is for the entire AGA-SAR operations including Corporate Office and excluded Community HRD programmes.
1 26.4 % HDSA representation at Senior Management level. If we take into account the EAP of White females(6%),HDSA representation is 24.4%.
2 43.4% HDSA representation at Middle Management level. If we take into account the EAP of White females(6%),HDSA representation is 33.6%.
3 52.6% HDSA representation at Junior Management level. If we take into account the EAP of White females(6%),HDSA representation is 50%.
Note Female representation in the workforce currently stands at 13% against the baseline of 10% as per the previous mining charter target.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 13 of 123
SECTION 2: OWNERSHIP In this section we address the Mining Charter requirements as detailed below. Mining Charter Requirement: In terms of Ownership the amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING and MINERALS INDUSTRY states:
Effective ownership is a requisite instrument to effect meaningful integration of HDSA into the mainstream economy. In order to achieve a substantial change in racial and gender disparities prevalent in ownership of mining assets, and thus pave the way for meaningful participation of HDSA for attainment of sustainable growth of the mining industry, stakeholders commit to:
Achieve a minimum target of 26 percent ownership to enable meaningful economic participation of HDSA by 2014;
The only offsetting permissible under the ownership element is against the value of beneficiation, as provided for by Section 26 of the MPRDA, as elaborated in the mineral beneficiation strategy.
The continuing consequences of all previous deals would be included in calculating such credits/offsets in terms of market share as measured by attributable units of production.
The Mining Charter scorecard requirements are indicated below along with the AGA VR compliance to date.
MC 2010 2010 Acieved MC 2011 2011 Achieved MC 2012 2012 Plan MC 2013 2013 Plan MC 2014 2014 Plan
Full shareholder rights26% 15% 26.8% -------> 26.8% -------> -------> 26%
Weig
hti
ng
Y/N
No ELEMENT DESCRIPTION MEASURECOMPLIANCE TARGET
BY 2014
PROGRESS ACHIEVED BY
SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION - END 2011
2 Ownership
Minimum target for effective
HDSA ownership
The revised Mining Charter sets an Ownership Target of 15% HDSA Ownership by 2010 and 26% HDSA Ownership by 2014.Through a combination of ownership transactions with ARM Gold, Bokamoso ESOP and Izingwe Holdings the company has achieved 26.8% HDSA ownership.
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2.1 AGA South Africa Region’s Black Economic Empowerment Ownership Status AngloGold Ashanti’s BEE ownership contribution is measured in respect of transactions with three BEE entities.
2.2 Sale of assets to ARMgold Limited (ARM) Jan 1998 – Sale to ARM of Vaal Reefs No 1-7 shafts July 1998 – Sale to ARM of Freegold’s Western Holdings shafts 1, 2, 3, 4, 6, 7 and Welkom gold plant Jan 2002 – Sale of Free State assets (Bambanani, Joel, Matjhabeng, Tshepong, Jeanette shares, plus surface infrastructure) to ARM/Harmony joint venture. By direction of the then DME, the “credits” AGA is entitled to claim was calculated by the “units of production” provision of the Mining Charter based on AGA and attributable ARMgold production for the 12 months ended March 2004 – the last production data available at the time AGA applied for the conversion of its mining rights. ARMgold’s attributable production in respect of former AGA assets for that period was 848,602ozs. AGA production at its South African assets in the same 12 month period was 3,232,000ozs. AngloGold Ashanti’s overall HDSA participation in respect of ARMgold is therefore 20.8% (848,602ozs as a percentage of 3,232,000 + 848,602ozs).
2.3 Employee Share Ownership Plan (ESOP) and Izingwe Holdings: When AngloGold Ashanti was awarded its new order mining rights in 2005, one condition was that it fulfill its undertaking to the DMR that it would introduce an ESOP and carry out a further BEE transaction to complete its ownership obligations in terms of the Mining Charter. That obligation was fulfilled after a period of consultation between AGA and, respectively, the unions representing the 30,000 eligible members of the company’s SA workforce at that time and the leadership of Izingwe Holdings, a BEE company chaired by Sipho Pityana. The transactions were announced in October 2006, involving the transfer of 3,840,000 (25% of them free shares and the remainder E shares operating in a manner similar to share options) to an employee share trust, the Bokamoso ESOP, trust, and 1,400,000 E shares to Izingwe. The transactions were vendor-financed, and there is no possibility of any downside for BEE entities. The ESOP transaction comprised a transfer of 4,5% ownership in terms of the charter, and the Izingwe Holdings (Pty) Ltd transaction 1.5% this taking AGA’s total HDSA ownership credit to 26,8%. Between the December 2006 launch date and December 2011, a total of R32,6m had flowed to Izingwe in dividends and the proceeds of a share rights issue. In addition, Izingwe received 39,052 AGA shares as a consequence of the November 2011 vesting date. It is unknown at what price Izingwe sold the shares through its own brokerage house. The share price at which the vesting took place was R358,50, so it may be assumed that the value to Izingwe was about R14m. In the same five-year period, R74m flowed to employees as a consequence of dividend payments and the rights issue proceeds, plus another approximately R244m through the vesting of free and E-shares.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 15 of 123
Due to international market conditions, the prevailing share price was “underwater” at the dates of the vesting of the first two tranches of E shares in November 2009 and 2010. In response to representations from the ESOP trustees (including union representatives) and Izingwe, AGA management took the view that, while not required in any way by regulation, the situation was compromising the spirit of the empowerment transactions. Management entered into a new phase of consultations with the unions and Izingwe. This led to a restructuring of the transactions in a manner that builds in a guarantee of value of R40 per share in respect of vesting E shares, and the reinstatement of lapsed E shares. Further value will flow to all participants over the remainder of the life of these transactions, which conclude in 2014.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 16 of 123
SECTION 3: HOUSING AND LIVING CONDITIONS Mining Charter Requirement: In terms of Housing and Living Conditions the 2010 Amended BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states as follows:
“Human dignity and privacy for mineworkers are the hallmarks to enhance productivity and expedite transformation in the mining industry in terms of housing and living conditions. In this regard mining companies must implement measures to improve the standards of housing and living conditions for mineworkers as follows:
Convert or upgrade hostels into family units by 2014;
Attain the occupancy rate of one person per room by 2014;
Facilitate home ownership options for all mine employees in consultation with organised labour by 2014.”
The Mining Charter scorecard requirements are indicated below along with the AGA VR compliance to date.
MC 2010 2010 Acieved MC 2011 2011 Achieved MC 2012 2012 Plan MC 2013 2013 Plan MC 2014 2014 Plan
Conversion and upgrading of
hostels to attain the occupancy
rate of one person per room.
Percentage reduction of
occupancy rate towards 2014
target. Occupancy rate of one
person per roomBase-line 18% 25% 46% 50% 56% 75% 71% 100% 100%
Conversion and upgrading of
hostels into family units
Percentage conversion of
hostels into family units. Family units established Base-line 57% 25% 70% 50% 84% 75% 100% 100% 100%
Note on West Wits Operations
from AngloGold Ashanti.
Implement initiatives to
facilitate home ownership eg.
Preference surveys, advice on
purchasing homes, training on
benefits of home ownership
- -
The company will set out to
implement initiatives as
recommended by the COM
(Chamber of Mines)
guideline document. Housing
survey to be conducted in
2011.
The company will set
out to implement
initiatives as
recommended by the
COM (Chamber of
Mines) guideline
document. Housing
survey to be conducted
in 2011.
n/a
3Housing and
living conditions
Weig
hti
ng
No ELEMENT DESCRIPTION MEASURECOMPLIANCE TARGET
BY 2014
Y/N
PROGRESS ACHIEVED BY
SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION -END 2011
REGULATION 46 (c) (iv) of the MPRDA stipulates that the contents of a social and labour plan must include measures to address the housing and living conditions of the mine employees.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 17 of 123
3.1 Housing and Living Conditions and the Mining Charter In terms of the 2003 Mining Charter scorecard, states as follows with regards to Housing and Living Conditions: For company provided housing, has the mine, on consultation with stakeholders, established measured for improving the standard of housing, including the upgrading
of the hostels, conversion of hostels to family units and promoted home ownership options for mine employees? Companies will be required to indicate what they have done to improve housing and show a plan to progress the issue over time, and is implementing the plan?
For company provided nutrition, has the mine established measures for improving the nutrition of mine employees? Companies will be required to indicate what they have done to improve nutrition and show a plan to progress the issue over time and is implementing the plan?”
The following is an outline of how the company has addressed the aforementioned issues. The company has, in consultation with the unions and housing forums agreed to the following measures aimed at improving the standard of housing aimed at improving the housing and living conditions of its employees. The following accommodation options are currently available to the employees: Living out allowance - this is paid as part of remuneration as agreed between the company and labour unions, to 8089 employees, including AHS. Boarding houses that provide varying degrees of accommodation facilities to 262 single employees. Residences that provide full accommodation to 6157 single employees. Attached to the residences, some 173 visiting wives units are available in the Vaal River area. Family accommodation of 3066 units are provided in municipal areas and mining areas.
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3.2 Upgrading of Residences into Single Room Accommodation The following has been agreed to, in the various consultation forums, as the strategic basis for residence upgrading: Increased levels of privacy are pursued through the redevelopment of communal accommodation units into private rooms. Redevelopment work started in 2005. At the
end of the reporting period, 2368 single rooms were developed to a cost of R72.23 million. The revised plan to convert communal rooms into private rooms is scheduled to be completed by end 2014 in order to comply with the Mining Charter. AngloGold Ashanti developed 222 single rooms in Kopanang Residence, 230 single rooms at Itireleng Residence and 378 single rooms at Noligwa Residence and all
rooms were completed at end 2011. The following table shows the planned and actual Privacy and Upgrading projects undertaken in 2011:
Table 3.1 Planned 2011 Actual 2011
No. of
rooms for upgrading
Capital No. of
upgraded rooms Capital
Kopanang 222 R5,92M 222 R6,66M
Noligwa 378 R9,37M 378 R12,26M
Itireleng 230 R6,98M 230 R6,41M
The above constitutes an achievement of 46% against the 2011 25% MC target. To ensure that adequate female ablutions and change house facilities are available, the company has established female change houses at Kopanang and Noligwa residences. Kopanang female change house has the capacity to accommodate 300 females while Noligwa residence female change house can accommodate 450 females.
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3.3 Conversion of Residences to Family Units As part of AngloGold’s Ashanti’s residence redevelopment for sustainable development, redundant residences have already been converted into family units. This approach has also been incorporated into the company’s future planning. Progress achieved to date is as follows: To date a total of 141 family units have been redeveloped at a total cost of R30,05 million A new plan has been submitted for approval to complete the balance of the family unit redevelopment projects at 7# Visiting Wives centre and 1# Security Barracks. Listed in the following tables are actual achievements for 2011.
TABLE 3.2.1 : 7# VISITING WIVES CENTRE
Year Block Number Number of units Estimated Costs
Planned 2011 1 24 R7.07M
Actual 2011 1 24 R6.38M
TABLE 3.2.2: 3# MOTLATSI
Year Block Number Number of units Estimated Costs
Planned 2011 1 27 R7.82M
Actual 2011 1 26 R6.44M
The above constitutes an achievement of 70% against the 2011 25% MC target. During 2011, AGA has been using the services of 5 BEE building contractors for the privacy and family unit redevelopment projects in the Vaal River region. The contractors are shown in the table below:
TABLE 3.2.3
Contractor Project site BEE Status
Kilok Construction Kopanang Residence – Privacy Project Level 4
Moll Construction 3# Motlatsi – Family Unit Redevelopment Project Level 4
Terzoplex 7# Visiting Wives Centre – Family Unit Redevelopment Project Contractor application submitted for certification
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 20 of 123
3.4 Promotion of Home Ownership Charter Compliance - 2014 AngloGold Ashanti have finalised a capital plan to create private room accommodation for all employees who choose to take up the option to reside in the residences, and also for the conversion and development of family accommodation in areas with spare capacity. Privacy room conversion of residences is to be completed by the end of 2013 Family unit conversion of underutilised residences is planned to be completed by 2013. Promote and facilitate home ownership. AngloGold Ashanti, in conjunction with recognised trade unions, is in the process of investigating the opportunity to create an affordable home ownership scheme for all employees. The following is an outline of the process to be followed in this regard: Investigation of affordable housing options. Investigation of appropriate financing model. Third party engagement and involvement. Stakeholder involvement. Objective is to build 300 houses over a 5 year period. Incorporation of AngloGold Ashanti land and property into the local Municipality and the creation of a sustainable future. AGA is in the process of formalising the incorporation of its mining villages into the Municipality of Matlosana.
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3.4 Nutrition Measures to address Nutrition at Residences: Background: A dietary analysis of the current menu indicates that it adequately caters for the energy and nutritional requirements of workers including underground workers performing moderate to hard work. Criteria used is the COMRO (Chamber of Mines Research Organisation) reference report no 11/91 to establish the energy requirements of underground workers as well as other international recognized measures such as the DRI (Daily Recommended Intake) and the Harris Benedict equation. The table below shows the kJ intake for work load category.
Diet plan and number of meals: The diet plan refers to the list of food groups incorporated in each meal as opposed to a menu which is a list of specific dishes served at each meal. In order to ensure that balanced meals are served, the numbers of meals, as well as the food groups to be served at each meal are taken into consideration. Traditionally only a pre-shift or a breakfast and a post shift or main meal was served in the Residences, but now a third meal is also served. A mid-shift supplement is also available to all underground workers (Morvite / Go Ahead Cereal).
TABLE 3.4.1 : KJ INTAKE
Work Category Moderate Light Work Moderate Work Moderate Hard Work Hard Work
Energy expenditure 12000kJ 13000kJ 14000kJ 15000kJ
Examples of workers Electrician Mine Overseer Loco Crew
Equipping team Team leader Stope team Miner Assistant Cleaning team
Loader Driver Winch Driver
Driller Drill assistant
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Food and nutritional evaluation: Consumption and Participation per person is measured. This procedure is maintained by a registered dietician. The following minimum criteria are used to evaluate the food and nutritional intake:
TABLE 3.4.2: DAILY RECOMMENDED INTAKE
Minimum criteria per person Source
Energy (kJ) 13000 COMRO 11/91
Carbohydrate (g) 500g DRI
Protein (g) 130g DRI
Fat (g) 80 DRI
Vitamin C (mg) 250 SA Mine recommendation
Vitamin A (IU) 1000 DRI
Calcium 1000 DRI
Meal Participation 85%
Staff Competency: An external facilitator offers skills training to catering staff to ensure skills competency. On the job training in food preparation and hygiene management is ongoing. Measures to Address Nutrition: In order to minimize menu fatigue and accommodate customer preferences, meetings are held with worker representative structures with the aim of incorporating the resident’s proposals into the menu
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SECTION 4: PROCUREMENT REPORT In this section we address the Mining charter requirements and MPRDA as detailed below. Mining Charter Requirement: In terms of Procurement and Enterprise Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states as follows:
“Local procurement is attributable to competitiveness and transformation, captures economic value, presents opportunities to expand economic growth that allows for creation of decent jobs and widens scope for market access of South African capital goods and services. In order to achieve this, the mining industry must procure services of BEE entities in accordance with the following criteria:
Procure a minimum of 40% of capital goods from BEE entities by 2014;
Ensure that multinational suppliers of capital goods annually contribute a minimum of 0.5% of annual income generated from local mining companies towards socio-economic development of local communities into a social development fund from 2010;
Procure 70% of services and 50% of consumer goods from BEE entities by 2014.
The targets above are exclusive of non-discretionary procurement expenditure.” The Mining Charter scorecard requirements are indicated below along with the AGA compliance to date:
MC 2010 2010 Acieved MC 2011 2011 Achieved MC 2012 2012 Plan MC 2013 2013 Plan MC 2014 2014 Plan
Capital goods 40% 5% 39% 10% 39% 20% 30% 40% 5%
Services 70% 30% 29% 40% 39% 50% 60% 70% 5%
Consumable goods
50% 10% 40% 15% 52% 25% 40% 50% 2%
Multinational suppliers
contribution to the social fund
Annual spend on
procurement from
multinational suppliers
0.5% of procurement
value0.5%
Fund details still being
worked out by DMR. Our
suppliers are willing to
contribute and have been
informed to set aside
contributions in own trust
fund, pending finalisation
of fund by DMR and COM
task team.
0.5%
Fund details still
being worked out by
DMR. Our suppliers
are willing to
contribute and have
been informed to set
aside contributions in
own trust fund,
pending finalisation of
fund by DMR and
COM task team.
0.5%
Fund details still
being worked out by
DMR. Our suppliers
are willing to
contribute and have
been informed to set
aside contributions in
own trust fund,
pending finalisation of
fund by DMR and
COM task team.
0.5% 0.5% 3%
4
Procurement &
Enterprise
Development
Procurement spent from BEE
entity
We
igh
tin
g
No ELEMENT DESCRIPTION MEASURECOMPLIANCE TARGET
BY 2014
PROGRESS ACHIEVED BY
SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWEREMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY - VAAL RIVER REGION - 2011
REGULATION 46(v) of the MPRDA requires that the contents of a social and labour plan must include a local economic development programme which must include: The procurement progression plan and its implementation for the HDSA companies in terms of capital goods, services and consumables and the breakdown of the procurement which must be completed in the form of Form T contained in Annexure II.
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4.1 Report back on the last five years’ Achievements The information required in terms of “Form T” is appended to this plan. It should be noted that AngloGold Ashanti Southern African Region’s procurement activities are managed centrally and regionally. Procurement and the Mining Charter The “scorecard” which is designed to measure adherence to the mining charter asks three questions regarding procurement viz.: Has the mining company given HDSA’s preferred supplier status? Has the mining company identified current level of procurement from HDSA companies in terms of capital goods, consumables and services? Has the mining company indicated a commitment to a progression of procurement from HDSA companies over a three to five-year time frame in terms of capital
goods, consumables and services and to what extent has the commitment been implemented? AngloGold Ashanti has made attempts to fully address these questions as listed below: AngloGold Ashanti treats HDSA companies as preferred suppliers. In practice, this does not mean accepting higher tender prices from HDSA companies. What it does
mean, is that BEE companies who comply with the AngloGold Ashanti’s requirements are placed on the company’s vendor list. BEE compliant companies receive preferred status in winning contracts, should they be commercially competitive.
The company has identified current levels of procurement from HDSA companies in terms of capital goods, consumables and services and keeps track of this as shown in the table below, showing the total BEE procurement spend split into the three categories for the last five year period, using end of 2005 BEE Spend as the base.
Year Consumables Services Capital Total
2005 556.9 217.7 113.2 887.8
2006 661.5 158.5 268.8 1088.8
2007 699.3 394.6 268.3 1362.2
2008 788.4 423.9 258.4 1470.7
2009 864.9 248.1 342.9 1455.9
2010 1010.8 654.5 241.3 1906.6
2011 1182.5 910.8 425.2 2518.4
The company has developed a programme to progressively increase the sourcing of goods and services from HDSA companies, with annual targets set as per the Mining Charter for the next five years (2010-2014).
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4.1.1 Progress and Current Status based on the Mining Charter as at the end of 2011 a) Total Supplier Base Significant progress has been made over the last five years as depicted in the previous table and the trend is continuing with the introduction of the revised Mining Charter during September 2010. The following table shows the growth in spend profile from HDSA companies for the period 2010 and 2011 in the South Africa Region (Vaal River and West Wits):
TABLE 4.1: SPEND PROFILE BETWEEN TRADITIONAL SUPPLIERS AND BEE SUPPLIERS
Categories 2010 2011 Spend Profile: 2011
Total Spend BEE Spend Total Spend BEE Spend • Overall Spend = R9.01bn (Incl. Exclusions)
Capital R598.5m R241.2m R1.12bn R425.2m • Total Measurable Spend = R5.88bn
Services R2.23bn R654.5m R2.21bn R910.8m • Total Number of Suppliers = 6223
Consumables R2.51bn R1.01bn R2.48bn R1.18bn • Total Number of compliant BEE Suppliers = 78
Total Spend R5.34bn R1.9bn R5.88bn R2.52bn
Overall SAR Spend % Split by Category: 2011
The table above shows that the BEE spend has increased by 33% from 2010 to 2011. The company continues to seek and acquire new suppliers that can supply products required by our business units and also encourages our traditional suppliers to embark on a transformation process to ensure compliance with BEE requirements. During 2011 AGA spent R2.52bn with qualifying BEE suppliers with a minimum of 25% Black Shareholding status.
43%
19%
38%
Services
Consumables
Capital
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TABLE 4.2: MINING CHARTER COMPLIANCE PROGRESS (OVERALL BEE SPEND 2010 – 2011) - SOUTH AFRICA REGION
Categories DMR BEE Compliance Targets (Section 2.2 of the Mining Charter)
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* If the multinational contribution is discounted due to the Multinational Fund not yet being established by the DMR the company has actually achieved 100% in this area. The company has shown a significant increase in the total BEE spend over this period as shown above. The company’s efforts regarding the pursuit of the BEE targets on Black Owned suppliers is bearing fruit as evidenced by the 43% overall achievement towards the 2014 targets. The Black Women Owned Suppliers spend make up 6% and one element of our strategy in the next five years will be to increase the spend with Black Women Owned suppliers.
TABLE 4.3 : 2011 SPEND WITH BLACK WOMEN OWNED SUPPLIERS - SOUTH AFRICA REGION
Capital Consumables Services Overall
R1.1bn R2.4bn R2.2bn R5.9bn
R 44.6m R216.4m R70.3m R331.4m
4% 9% 3% 6%
6%
94%
BWO Spend Total Spend
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b) Local Supplier Base The following tables show the current BEE Spend in the local areas where AngloGold Ashanti operates. Table 4.4 shows the Vaal River BEE Spend split by categories. Achieving high local BEE Spend has been quite a challenge. The main reason for this is that most of our key suppliers are based outside of the areas where we operate and service other industries as well other than the Mining Industry.
* If the multinational contribution is discounted due to the Multinational Fund not yet being established by the DMR the company has actually achieved 100% in this area.
TABLE 4.5: VAAL RIVER WAS R2.6BN DURING 2011
Category Total Spend BEE Spend % BEE
Services Spend R760m R296m 39%
Consumables Spend R1.2bn R643m 52%
Capital Spend 643m R250m 39%
Total Measurable Spend (TMS)
R2.6bn R1.1bn 45%
79%
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c) Enterprise Development As stated above the review and development of the socio-economic framework resulted in the establishment of the Enterprise Development Fund aided at giving financial assistance to entrepreneurs in the host and labour sending areas. The company has also included as part of the LED projects the establishment of the ED Parks in Matlosana and OR Tambo to the tune of R15m each to support the above stated entrepreneurs and thereby revitalise economic activity and job creation in the above stated localities. A survey to create a database of entrepreneurs in the above stated localities is also part of the SLP projects for 2012. For OR Tambo District Municipality a MOU between the National Union of Mineworkers (NUM), the company and the municipality was signed with respect to the establishment of the Enterprise Development Park in Umtata. In consultation with the DMR and as per its recommendations, income generating / job creation projects have been identified and separated from Enterprise Development ventures that would qualify for loans. The income generating / job creation projects will be funded by way of grants. AGA Procurement Department is working in conjunction with AGA Enterprise Development to ensure that qualifying beneficiaries of the Enterprise Development programme are considered and accorded opportunities to participate in the AngloGold Ashanti supply chain. To this end, a survey aimed at identifying business opportunities at the host communities will be conducted and finalised by the end of the 1
st quarter of 2012.
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4.1.2 Current Status based on the DTI codes The positive aspect of the transition from BEE to BBBEE compliance by the company’s supplier base is reflected in the increase of the BBBEE statistics. AngloGold Ashanti has procured the services of an independent and accredited verification agency to collate BBBEE certificates and determine the company’s level of compliance in this regard. The impact of this is evident in the measured numbers and can be seen in Table 4.6 below, AngloGold Ashanti scored 19.51 out of 20 points for 2011 (Based on the 2012 DTI measurement targets). Whilst AngloGold Ashanti has scored relatively high on the procurement element of the DTI Codes, the challenge in achieving full score remains in getting further Black Owned and Black Women Owned suppliers active in the mining sector.
TABLE 4.6: COMPLIANCE TARGETS VS. AGA 2011 ACTUAL (DTI CODES)
% Target Rand Target Actual Differential Progress Points Achieved
BBBEE SCORECARD POINTS ACHIEVED
OVERALL PROGRESS
ALL BEE SPEND (50%)
2,940,817,139 3,885,683,258 944,866,119 OVER TARGET 132% 12.00
BLACK OWNED (9%) 529,347,085 417,855,058 -111,492,028 UNDER TARGET 79% 2.37
BLACK WOMEN OWNED (6%)
352,898,057 227,468,391 -125,429,666 UNDER TARGET 64% 1.29
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SECTION 5: EMPLOYMENT EQUITY PLAN In this section we address the Mining charter requirements and MPRDA as detailed below. Mining Charter Requirement: In terms of Employment Equity (EE) the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING AND MINERALS INDUSTRY states as follows: Workplace diversity and equitable representation at all levels are catalysts for social cohesion, transformation and competitiveness of the mining industry. In order to create a conducive environment to ensure diversity as well as participation of HDSA at all decision-making positions and core occupational categories in the mining industry, every mining company must achieve a minimum of 40% HDSA demographic representation at:
Executive Management (Board) level by 2014;
Senior management (EXCO) level by 2014;
Core and Critical skills by 2014;
Middle management level by 2014;
Junior management level by 2014; and
In addition, mining companies must identify and fast-track their existing talent pools to ensure high level operational exposure in terms of career path programmes. The Mining Charter scorecard requirements are indicated below along with the AGA Vaal River compliance to date.
MC 2010 2010 Acieved MC 2011 2011 Achieved MC 2012 2012 Plan MC 2013 2013 Plan MC 2014 2014 Plan
It should be noted that the 40% HDSA achievement on Top Management is calculated at the actual HDSA representation for AngloGold Ashanti`s Top Management structure based at the Corporate Office, not in the Vaal River. MPRDA Requirement: In terms of the MPRDA, REGULATION 46 (b) (v) states: The contents of a Social and Labour Plan must include a human resources development programme which must include the employment equity statistics which must be completed in the form of “Form S” contained in Annexure II and the mines plan to achieve the 10 per cent women participating in mining and 40 per cent historically disadvantaged South Africans (HDSA) participation in management within 5 years from the granting of the right or the conversion of the old order right.
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5.1 EE and the Mining Charter In terms of the 2003 Mining Charter scorecard, states as follows with regards to Employment Equity: Has the company published its employment equity plan, and reported on its annual progress in meeting that plan? Has the company published a plan to achieve a target for HDSA participation in management of 40% within five years, and is implementing this plan? Has the company identified a talent pool and is it fast tracking it? The following constitutes the company’s approach to the above mentioned questions. The company submitted its five year Employment Equity (EE) Plan to the Department of Labour (DoL) in 2010 for the period August 2009-July 2014. This plan was used to develop the EE Plan in compliance with the MC requirements. The company is also required to report to the DoL on an annual basis, as well as to the DMR. The DoL EE reports are also posted on the company’s website on an annual basis. In terms of the Skills Development Act, the company submits its workplace plan on the 1
st of June of
each year. The above stated workplace skills plan outlines the process of identifying the talent pool and fast-tracking the HDSAs in line with the target as set in the EE plan. The company also submits its Annual Training Report to the MQA before the end of June each year. In developing the EE Plan the WSP and the ATR, the company embarks on consultations with the recognised trade unions as required by the EE and Skills Development Act. The 2010 - 2014 Vaal River (VR) operations Employment Equity (EE) Plan aims to achieve the targets as outlined in the Amended Mining Charter of September 2010 and as stated above. In the following tables the terminology is as: Executive Management (Board) level is stated as Top management
(It should be noted that Top management refers to Corporate and SAR managers who serve on the Executive Committee who are the key decision makers of the company).
Senior management (EXCO) is stated as Senior Management Middle management is stated as Prof.qual – Mid Mngmnt The following three (3) tables depict the AGA Directors, AGA Top Management level (Board) based at Corporate Office in Johannesburg, and the SA Region Management Committee consisting of Senior Vice Presidents and Vice Presidents based at Potchefstroom Office.
TABLE A: AGA DIRECTORS AS AT 31 DECEMBER 2011
Occupational Levels Males Females Male Foreign National
Total 2011 MC % HDSA Targets
2011 % HDSA Actual African Coloured Indian African Coloured Indian White White Male Female
AGA Board 3 1 0 1 0 0 0 1 5 0 11 25% 45%
GRAND TOTAL 27.2% 9% 0% 9% 0% 0% 0% 9% 45.4% 0% 100% 25% 45%
Note: It is well noted that if the non-South African Directors are excluded on the total actual figure, the HDSA representation stands at 83%.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 33 of 123
TABLE B: AGA TOP MANAGEMENT EXCO LEVEL AS AT 31 DECEMBER 2011
Occupational Levels Males Females Male Foreign National
Total 2011 MC % HDSA Targets
2011 % HDSA Actual African Coloured Indian African Coloured Indian White White Male Female
Top Management 1 0 0 1 0 0 2 4 2 0 10 25% 40%
GRAND TOTAL 10.0% 0% 0% 10% 0% 0% 20% 40% 20.0% 0% 100% 25% 40%
TABLE C: SA REGION MANAGEMENT COMMITTEE LEVEL AS AT 31 DECEMBER 2011
Occupational Levels Males Females Male Foreign National
Total 2011 MC % HDSA Targets
2011 % HDSA Actual African Coloured Indian African Coloured Indian White White Male Female
SAR Management Committee
3 1 0 0 0 0 1 4 0 0 9 25% 56%
GRAND TOTAL 33% 11% 0% 0% 0% 0% 11% 44% 0% 0% 100% 25% 56%
The following table reflects the EE plans and actuals for the period ending December 2011:
EE PLAN : 2011
TABLE D: 2011 TOTAL VAAL RIVER
Occ. Levels Male Female Male Foreign National
Total MC % HDSA
Targets
% HDSA Targets African Coloured Indian African Coloured Indian White White Male Female
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 34 of 123
The following tables shall constitute the percentage actual HDSA achievements per occupational levels as measured against the 2011 Mining Charter targets for VR operations with the Business Units percentage actuals (Annexure 2).
EE ACTUAL: 31 DECEMBER 2011
TABLE E: 2011 TOTAL VAAL RIVER INCLUDING CORPORATE OFFICE
Occupational Levels Male Female Male Foreign National
Total Actual %
HDSA
2011 MC % HDSA
target African Coloured Indian African Coloured Indian White White Male Female
GRAND TOTAL 52.2% 0.5% 0.1% 10.1% 0.1% 0.0% 2.2% 9.0% 25.7% 0.2% 100% 65.2%
The MC EE targets for 2011 were achieved. The challenge however, is still at senior management level and action steps are in place to ensure that the MC targets are achieved at all levels of the organisation. Business Units in the Vaal River operations have accordingly put in place EE Plans with set targets which aim to address the obligations as contained in the Amended Mining Charter. Annexure 2 enclosed in this report reflects Business Units` actual achievements by the end of December 2011, as measured against the plans each Business Unit put in place. The Vaal River operations have been able to achieve positive trends in advancing equitable representation in the management structures as well as gender representation as can be seen in the graph below with respect to percentage HDSA in management occupational levels, core and critical skills, and female representation as compared to 2010.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 36 of 123
Graph 1: 2011 Percentage HDSA achievements in the Vaal River Region as compared to 2010
The graph above gives an indication that Vaal River Operations is making progress towards achievements of its transformation commitments. The Vaal River Operations has achieved the 2011 HDSA targets in all occupational levels measured by the Mining Charter. Even though these achievements have been positive and significant in compliance with the Mining Charter obligations, the company realises that there is a need to have positive movements towards maintaining the achievements of targets, especially in the senior management level. In adhering to the Chamber of Mines (COM) guideline of attributing the white female contribution to total HDSA figures to a maximum of 6%, the Vaal River area has still managed to achieve the 2011 EE targets with respect to HDSA representation as set by the Mining Charter.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 37 of 123
Graph 2 below depicts a comparison between the total percentage of HDSA representation per occupational level for Vaal River Region and the percentage HDSA representation when white females are calculated at maximum 6%. Graph 2: Percentage HDSA Representation compared to percentage HDSA representation calculated at maximum 6% white females
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 38 of 123
5.2 Core and Critical Skills The target as set in the 2010 Amended Mining Charter for Core and Critical skills is 20% by end 2011. For the purpose of this submission, core and critical skills are defined as occupations within the Mining, Engineering, MRM and Metallurgy disciplines. The company’s skills development and employment equity strategies are aimed at achieving a demographically representative workforce. To this end, the company’s strategy in this regard is guided by the provisions of the Skills Development and Employment Equity Acts in terms of both planning and reporting, including with respect to “Core and Critical skills”. Through the company’s participation and collaboration with (i) the Mining Qualification Authority, (ii) compliance with its obligations pertaining to the Workplace Skills Plan and the Annual Training Report, (iii) conducting of skills audits (iv) initiatives to identify scarce and critical skills (through participation in the Sector Skills Plan and Scarce Skills initiatives) intensive attempts are made to improve the HDSA representation in all core and critical skills occupations which is still lagging due to the skills challenges faced by the industry in this respect. The human resources development interventions to address the abovementioned challenge include a variety of initiatives such as (i) Management Trainee Programmes, (ii) Bursary Schemes, (iii) Trainee Programmes, and Learnerships which is contained in the HRD section of this SLP Report. The following table depicts critical and scarce skills for the period ending 2011:
TABLE G: TOTAL VAAL RIVER CRITICAL AND SCARCE SKILLS
GRAND TOTAL 54.2% 0.4% 0.0% 7.0% 0.0% 0.0% 0.5% 8.5% 29.2% 0.2% 100% 62.2%
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5.3 Women in mining workforce profile as at 31 December 2011 The Vaal River operation adheres to the guidelines with respect to Women in Mining as set in the Mining Charter by committing to 10% women representation in the total workforce. The approved employment equity plan for the Vaal River operations includes women representation in the total workforce. The integration of women into the entire workforce and initiatives which are aimed at creating a conducive environment for women is firmly embedded in the Vaal River operations. The Vaal River Operation has progressed significantly towards achieving the 10% target women in mining as set by the Mining Charter by exceeding the target in achieving 13%. Notwithstanding the fact that the mining environment remains challenging for women, the Vaal River Operations has adopted a variety of initiatives to support the integration of women such as (i) change houses for women, (ii) promoting an environment free from sexual harassment, (iii) private and secure ablution facilities underground and (iv) working with industry to address issues of protective clothing for women. The following table reflects the total numbers with respect to Women in Mining in the Vaal River Operations as at 31 December 2011:
TABLE I: VAAL RIVER WOMEN IN MINING
Occ. Levels Female Total
Local
Foreign National Grand Total
% WIM incl. Conventional functions African Coloured Indian White Female
Top Management 0 0 0 0 0 0 0
13% of Women in Mining against the total workforce of 16888
The following table reflects the total numbers with respect to Women in Mining in the support functions at Vaal River Operations as at 31 December 2011.
TABLE K: VAAL RIVER WOMEN IN MINING – SUPPORT FUNCTION
Occ. Levels Female Total
Local
Foreign National Grand Total % WIM Support
function only African Coloured Indian White Female
Top Management 0 0 0 0 0 0 0
6.5 % of Women in support function against the total workforce of 16888
The company’s Employment Equity strategy with respect to Women in Mining is to accord women an equal opportunity to be employed in all occupations, depending on their ability to match the inherent requirements of job as per the Employment Equity guidelines. Further steps have been put in place to further support integrating women in the workplace. Section 19 Audit as conducted in terms of the Employment Equity Act are used to identify the barriers that prevents women from advancing their careers in the company and to develop affirmative action measures, aimed at assisting women to achieve their career goals within the company. These audits are an important barometer to ascertain and identify barriers to employment equity and supports robust implementation of affirmative action measures.
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SECTION 6: HUMAN RESOURCES DEVELOPMENT PROGRAMME Mining Charter Requirement: In terms of Human Resource Development the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER of the SOUTH AFRICAN MINING and MINERALS INDUSTRY states as follows: “The mining industry is knowledge based and thus hinges on human resource development, constituting an integral part of social transformation at workplace and sustainable growth. To achieve this objective, the mining industry must: Invest a percentage of annual payroll (as per relevant legislation) in essential skills development activities reflective of the demographics, but excluding the mandatory
skills levy, including support for South African based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation and rehabilitation; as follows: Target for 2010 = 3%; Target for 2011 = 3.5%; Target for 2012 = 4%; Target for 2013 = 4.5%; Target for 2014 = 5%”
The Mining Charter scorecard requirements are indicated below along with the AGA VR compliance to date.
MC 2010 2010 Acieved MC 2011 2011 Achieved MC 2012 2012 Plan MC 2013 2013 Plan MC 2014 2014 Plan
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The MPRDA requirements are: REGULATION 46 (b) (i) which states that: The contents of a social and labour plan must include the following: A human resources development programme which must include a skills development plan which identifies and reports on – (aa) the number and education levels of the employees which must be completed in the form of “Form Q” contained in Annexure II; and (bb) the number of vacancies that the mining operation has been unable to fill for a period longer than 12 months despite concerted effort to recruit suitable candidates which must be completed in the form of “Form R” contained in Annexure II. REGULATION 46 (b) (iii) which states: The contents of a social and labour plan must include a mentorship plan and its implementation in line with the skills development plan and the needs for the empowerment groups. REGULATION 46 (b) (v) which states: The contents of a social and labour plan must include a human resources development programme which must include the employment equity statistics which must be completed in the form of “Form S” contained in Annexure II and the mines plan to achieve the 10 per cent women participating in mining and 40 per cent historically disadvantaged South Africans (HDSA) participation in management within 5 years from the granting of the right or the conversion of the old order right. The Human Resources Development (HRD) Strategy of the South African Region, supports the business strategy and objectives, as well as the South African legislative and regulatory framework that seeks to address the general skills shortage within the country, as well as ensuring equitable representation in the workplace. This plan outlines a variety of HRD initiatives in place in AGA. In this document we have indicated the plan for the Employees, Communities as well as the State Intervention to the Mineral Sector (SIMS) requirements. Note: For a more detailed Core and Critical Skills Report refer to the EE Section of this report Form Q as required by the MPRDA is hereby annexured as Annexure 3 Form R as required by the MPRDA is hereby annexured as Annexure 4 Form S is contained in Annexure 2 HRD and the Mining Charter The “scorecard” which is designed to measure adherence to the mining charter asks he following questions regarding HRD viz.: Has the company offered every employee the opportunity to be functionally literate and numerate by the year 2005, and are employees being trained? Has the company implemented career paths for HDSA employees, including skills development plans? Has the company developed systems through which empowerment groups can be mentored? All the above is addressed in the following report.
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6.1 Adult Basic Education and Training (ABET) for AngloGold Ashanti employees (18.1)
6.1.1 ABET The company continues to provide Adult Basic Education and Training to employees of AGA and the communities in which we operate. During 2011; ABET programmes (Pre-ABET, ABET 1, 2, & 3) and National Certificate: Introduction to the Mining and Minerals Sector (NQF level 1) at the equivalent of ABET 4 level were presented in the Vaal River Area. ABET initiatives were structured into four processes, namely: Recognition of Prior Learning Process (RPL); Full-time ABET; Part-time ABET. and Community ABET Foundational Learning Competence (FLC): The Quality Council for Trades and Occupations (QCTO) specifies that learners who wish to enter into occupational qualifications at NQF levels 2 – 4 must have sufficient foundational competence in communication and mathematical literacy (foundational learning competence - FLC) to cope with the occupational learning demands and to benefit from the learning process. The company continued to prepare for the implementation of the FLC through facilitator development and ensuring that our centers are able to accommodate the FLC. The company will participate in a pilot during the first half of 2012. National Career Orientated Qualifications (N1 & N2): These were introduced in 2010 in partnership with the WestCol Technical College in the Vaal River Area. During 2011, 174 interventions took place. Recognition of Prior Learning (RPL) Recognition of Prior Learning (RPL) has been implemented to recognise the acquired knowledge and skills from informal training, work and life experience. The RPL process can grant workers admission to a qualification or award credits for subjects or modules within a qualification. The RPL that was incorporated into the company’s return from leave and engagement procedure was concluded during 2011. From 2012 onwards the RPL process will only be utilised to place employees on the correct level of ABET before commencing studies. RPL for AGA and Community during 2011
ENROLLED WRITTEN PASSED
677 677 575
Adult Literacy and Numeracy ABET education is aimed at making a positive impact on the improvement of the literacy profile of the company. A new literacy level report that includes contractors, a system clean-up as well as a new process to capture qualifications was implemented during 2011. In addition; the company funds and encourages employees and contractors to enroll for ABET education up to NQF level 1 at the equivalent of ABET 4 level on a part-time basis. By the end of 2011, 10% of employees and contractors had no recorded qualification, 39% had general education and training i.e. some education up to ABET level 4 and 51% have Grade 10 or higher as depicted in Form Q.
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Computer Training and Life Skills During 2010; planning commenced to introduce computer and life skills training to NQF 1 students to prepare them for the world of work. During 2011 Life Skills Training was piloted with 13 NQF 1 students in the West Wits Area and from 2012 onwards Life Skills and Basic Computer Skills Training will be offered to all NQF 1 learners. The gap in terms of the plan and actual is as a result of resource shortages i.e. computers were installed during January 2012.
6.1.2 ABET targets from 2010 to 2011: Employees (18.1) All ABET education is provided on a part-time basis and NQF1 is provided on a full-time for individuals selected at business unit level to grow and on a part-time basis for all other employees. ABET education is provided at no cost to employees and a Skills Development Structure is in place to promote and support the delivery of ABET. The forum discusses ABET related issues which includes the marketing of ABET. Posters are placed on selected notice boards for employees to invite them to take part in the initiative. At Business Unit level, there are Skills Development Committees where ABET is a standard agenda point with the NUM as one of the stakeholders. The business units also have graduation ceremonies and numerous marketing campaigns. Employees are made aware that successful completion of ABET training enhances promotional opportunities as well as the prospect of getting enrolled in skills programs or learnerships. Monthly ABET forum meetings take place between the ABET centre staff, Business Unit Stakeholders and Organized Labour to ensure that ABET initiatives are optimized. The strategy of AngloGold Ashanti is to eliminate illiteracy through ABET. The current literacy level in the company is used as the basis for setting the ABET targets. The plan is to annually educate 10% of employees who require ABET education. The table below reflects the target vs. actual for ABET classroom education during 2011 and although we did not meet the number planned, we did manage to provide ABET opportunities to 18.19% of the intended population (including RPL). The gap between the plan and the actual is due to the fact that the largest part of ABET education is offered on a part-time basis and although extensive marketing is done through various structures as explained, it remains the individual's choice to enroll for ABET education. Another reason is the anticipated implementation of the FLC which did not realize as a result of postponement of implementation thereof by the MQA.
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The following table shows the Employee ABET, 18.1 actual and target for period 2011.
TABLE 6 A: ABET 18.1 (ENROLMENTS ONLY) VAAL RIVER – ACTUAL 2011 (Social and Labour Plan, p26, table 2.2.1.B)
Male Female Overall
Total Total HDSA African Coloured Indian White Total African Coloured Indian White Total
ABET Financial Provision ABET incentives are paid out in line with MQA grants. Incentives were paid to employees who successfully passed ABET from January 2009 to June 2010. No grants were received from the MQA since 2011 and therefore no incentives were paid out.
6.1.3 ABET Milestones Milestone 1: Implement FLC and discontinue NQF 1 full qualification and NQF 2 fundamentals. Progress: 1. FLC pilot for 2012 has been approved and funding granted by the MQA. 2. NQF 2 fundamentals have been discontinued. 3. Pilot studies will indicate the future of NQF 1.
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Milestone 2: Improvement of literacy levels - 10% improvement year-on-year is planned. Progress: The 10% target for providing individuals with ABET opportunities was met during 2011 i.e. 18.19% (including RPL). Milestone 3: Improvement of pass rates - 2% year-on-year improvement. Progress: For AGA overall, the classroom pass-rate improved with 4.21% exceeding the 2% target. For VR however there was a pass rate increase from 62.9% in 2010 to 75.4% in 2011. Reasons for the improved pass-rates: Increased management involvement from the business units at the part-time centres to motivate learners through regular centre visits. Benchmarking against other mining houses and liaising with them to standardise and enhance ABET in the mining industry. New learning material was piloted during 2011 and will be implemented in 2012. Facilitator development against new learning material during 2011. Milestone 4: Reduction of drop-out rate - 2% year-on-year reduction. Progress: Drop-out rates increased from 2010 (30.77%) to 2011 (41.9%). In part the high drop-out rate can be ascribed to ABET education being challenging for part-time learners. Additional support from ABET management and facilitators will be provided during the course of 2012. Furthermore the system that we use to capture ABET results does not make provision to capture modular passes and they then erroneously form part of the drop-out statistics. This will be addressed with ABET being captured on Educos from 2012 onwards.
TABLE 6 B
PART TIME Enrolled Written Passed % Passed Fail % Fail % Drop-out
PRE-ABET 72 38 24 63.2% 14 36.8% 47.2%
ABET1 117 57 37 64.9% 20 35.1% 51.3%
ABET2 174 93 77 82.8% 16 17.2% 46.6%
ABET3 175 89 54 60.7% 35 39.3% 49.1%
ABET 4 / NQF L 1 124 54 26 48.1% 28 51.9% 56.5%
TOTAL PART TIME 662 331 218 65.9% 113 34.1% 50.0%
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TABLE 6 C
FULL TIME & COMMUNITY
Enrolled Written Passed % Passed Fail % Fail % Drop-out
PRE-ABET 2 1 1 100.0% 0 0.0% 50.0%
ABET1 10 8 7 87.5% 1 12.5% 20.0%
ABET2 78 56 52 92.9% 4 7.1% 28.2%
ABET3 77 56 52 92.9% 4 7.1% 27.3%
ABET 4 / NQF L 1 82 77 69 89.6% 8 10.4% 6.1%
TOTAL FULL TIME 249 198 181 91.4% 17 8.6% 20.5%
CLASSROOM TOTAL 911 529 399 75.4% 130 24.6% 41.9%
Milestone 5: Phasing out of RPL, except for placement purposes, all qualifications have been confirmed. Progress: A systems clean-up and new process has been implemented. Milestone 6: External standard for ABET examinations – ensure that standard is competitive outside of the mining industry. Progress: ABET standard has been measured and areas of improvement have been identified and are being addressed. New ABET learning material was piloted during 2011 and will be implemented during 2012. Milestone 7 Implement Adult Basic Education Interventions i.e. Computer Skills & Life Skills. Progress: During 2011, Life Skills Training was piloted amongst Full Time NQF 1 students. From 2012 onwards Life Skills and Basic Computer Skills will be included in the NQF 1 training programme.
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6.2 Alternative Skills to Mining (Engineering Portable Skills) – for employees (18.1 and 18.2) AGA provides voluntary skills training programmes to AGA Employees and community members with skills which are valuable outside of the mining industry through the Engineering Training Centre. The ratio of beneficiaries is 40 per cent employees and 60 per cent community Portable Skills training helps employees and community members to attain skills (such as, among others bricklaying and basic welding) that are not mining industry specific. Upon completion of the training, learners are provided with a certificate that may enhance their chances of securing employment in other industries. The employees as well as members of the community are trained in portable skills such as basic plumbing, basic computer, basic house wiring, basic bricklaying and basic welding. Training is available during and after hours for volunteers. Employees and Community members will be entitled to a once off course at no cost to the participant. During 2011, the plan was to provide portable skills to 60 employees, unfortunately only 16 individuals decided to make use of this opportunity. Portable Skills (Engineering) for Employees: Target link to Employment Equity: Note that the actual 2011 does not reflect the demographics of the country it reflects the current employee profile within the company. It is currently the company’s strategy to work at ensuring that its’ employee profile more closely resembles that of the country’s EAP and as we begin to achieve this it will impact on the gender/ethnical breakdown of those volunteering for portable skills.
TABLE 6 D: PORTABLE SKILLS TRAINING: ENGINEERING – EMPLOYEES 18.1 - ACTUAL 2011 (Social and Labour Plan, p29, table 2.3.B)
Male Female Overall Total
Total HDSA
Budget African Coloured Indian White Total African Coloured Indian White Total
Portable Skills (Engineering) for Community Members: Target link to Employment Equity: The plan and actual for 2011 do not reflect the demographics of the country. Lagging factors are that the numbers for Coloured and Indian learners are very low. A leading factor is that the actual number of black female learners significantly exceeded the plan. As the training is done on a voluntary basis, we will embark on a progressive advertising campaign in areas such as Lenasia to attract more Coloured and Indian community members to participate in these initiatives. According to the Social and Labour Plan, p30, table 2.3.F., the actual courses offered to employees exceeded the plan.
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6.3 Internships (18.1)
6.3.1 Internships - Management Trainees (18.1): The Management Trainee Programme (of approximately three years in duration) gives graduates and diplomats the skills needed for middle management positions. Incumbents are assisted to obtain professional accreditation where appropriate. Mats are appointed in critical skill areas. After completion of their studies, most bursars enter into the employ of AngloGold Ashanti as MTs. However, the programme is also extended to suitably qualified employees and external applicants. The purpose of the Management Trainee Programme is to prepare trainees to fulfill middle management roles upon completion of the programme. Management Trainees - 18.1: Target link to Employment Equity: The actual for 2011 reflects the EAP demographics of the country except in the instance of white males. Affirmative Action measures will be applied to the company’s Vocational Bursary Scheme (18.2) to ensure that more females, Indians and Coloureds are included, this will influence the EE profile of our Management Trainees. If need be we will recruit Management Trainees externally to ensure that our Affirmative Action targets are met. The actual exceeded the plan for 2011 in terms of overall numbers, but also from an employment equity perspective.
TABLE 6 E: MANAGEMENT TRAINEES – INTERNAL 18.1 –ACTUAL 2011 (Social and Labour Plan, p33, table 2.4.1.B)
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
MINING PLAN 4 0 0 2 6 0 0 0 0 0 6 4
ACTUAL 7 0 0 4 11 0 0 0 0 0 11 7
ROCK ENGINEERING
PLAN 1 0 0 1 2 1 0 0 0 1 3 2
ACTUAL 2 0 0 1 3 0 0 1 0 1 4 3
ENGINEERING PLAN 4 0 0 2 6 0 0 0 1 1 7 5
ACTUAL 6 1 0 5 12 0 0 0 1 1 13* 5
MRM PLAN 2 0 0 1 3 1 0 1 1 3 6 5
ACTUAL 2 0 0 5 7 5 0 1 2 8 15 10
METALLURGY PLAN 2 0 0 0 2 2 0 0 0 2 4 4
ACTUAL 1 0 0 2 3 2 0 0 2 4 7 5
HR PLAN 0 0 0 0 0 0 1 0 0 1 1 1
ACTUAL 0 0 0 0 0 0 1 0 0 1 1 1
SHE PLAN 1 0 0 1 2 1 0 0 0 1 3 2
ACTUAL 0 0 0 0 0 0 0 0 0 0 0 0
FINANCE & COMMERCIAL SERVICES
PLAN 0 0 0 0 0 1 0 0 0 1 1 1
ACTUAL 0 0 0 0 0 1 0 0 0 1 1 1
TOTALS PLAN 14 0 0 7 21 6 1 1 2 10 31 24
ACTUAL 18 1 0 17 36 8 1 2 5 16 52 32
Note: 3 Foreign African males do not form part of the Total HDSA’s.
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6.3.2 Internships - Learner Officials (18.1): Officials participate in similar schemes to develop into supervisory positions. These are internal company programmes and are not registered with any external entity. Learner Officials - 18.1: Target link to Employment Equity: Note that the actual 2011 is reflective of the current company profile as many of the learner officials are selected from within the company. From 2012 onwards a concerted effort will be made to ensure that more Indian, Coloured as well as females are selected by applying the following measures: This programme will be used to apply affirmative action measures when employees are selected from within. Where we cannot find the skills internally, we will recruit from outside of the company.
TABLE 6 F: LEARNER OFFICIALS INTERNAL 18.1 – ACTUAL 2011 (Social and Labour Plan, p36, table 2.4.2.B)
Male Female Overall Total
Indian Total HDSA
White African Coloured Indian White Total Coloured Indian White African Total
MINING LEARNER OFFICIALS
PLAN 2 0 0 4 6 0 0 0 0 0 6 2
ACTUAL 2 0 0 8 10 0 0 0 0 0 10 2
MINING TRAINEE SHIFT BOSSES
PLAN 4 0 0 1 5 0 0 0 0 0 5 4
ACTUAL 12 1 0 2 15 2 0 0 0 2 17 15
ENGINEERING PLAN 2 0 0 2 4 0 0 0 0 0 4 2
ACTUAL 5 0 0 2 7 2 0 0 0 2 9 7
MRM PLAN 1 0 0 1 2 0 0 0 1 1 3 2
ACTUAL 0 0 0 1 1 0 0 0 0 0 1 0
HR PLAN 0 0 0 0 0 0 0 0 0 0 0 0
ACTUAL 0 0 0 0 0 0 0 0 0 0 0 0
SHE PLAN 1 0 0 1 2 0 0 0 0 0 2 1
ACTUAL 2 0 0 1 3 0 0 0 1 1 4 3
FINANCE & COMMERCIAL SERVICES
PLAN 0 0 0 0 0 1 0 0 0 1 1 1
ACTUAL 0 0 0 0 0 0 0 0 0 0 0 0
TOTALS PLAN 10 0 0 9 19 1 0 0 1 2 21 12
ACTUAL 21 1 0 14 36 4 0 0 1 5 41 27
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6.4 Learnership Employees - 18.1 Miners and Artisans are engaged in learnerships, of approximately 1,5 to 2 years duration, which are programmes registered with the Mining Qualifications Authority and the Department of Labour, allowing contracted learners to gain the skills needed for artisan or supervisory positions. Learnerships AGA Employees - 18.1: Target link to Employment Equity: The actual for 2011 is not reflective of the demographics of the country, but reflects the current employee profile within the company. It is currently the company ideal to work at ensuring that its employee profile more closely resembles that of the country’s EAP and as we begin to achieve this it will impact on the gender/ethnical breakdown of our Learnerships. The community learnerships (18.2) will be used to ensure that Affirmative Action targets are met. AGA learnerships support the sector skills plan as it is offered in fields where there is a skills shortage.
TABLE 6 G: LEARNERSHIPS – EMPLOYEES 18.1 –ACTUAL 2011 (Social and Labour Plan, p42, table 2.5.B)
Male Female Overall Total
Total HDSA African
African Foreigners
Coloured Indian White Total Coloure
d Indian White African Total
Learner Miners
PLAN 32 19 1 0 2 54 6 0 0 0 6 60 39
ACTUAL 17 10 0 0 1 28 2 0 0 0 2 30 19
Engineering Learners
PLAN 25 2 1 0 2 30 5 0 0 0 5 35 31
ACTUAL 56 0 3 0 14 73 8 0 0 0 8 81 67
TOTALS PLAN 57 21 2 0 4 84 11 0 0 0 11 95 70
ACTUAL 73 10 3 0 15 101 10 0 0 0 10 111 86
Note: LEARNER MINERS – PLANNED 19 Foreign African males do not form part of the Total HDSA’s. Note: LEARNER MINERS – ACTUAL 10 Foreign African males do not form part of the Total HDSA’s. The plan was to provide this opportunity to 95 learners during 2011, by as a result of the life-long learning process where employees can do these learnerships in-their own time, the actual significantly exceeded the plan.
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6.5 In Service Bursars (18.1 Learners) Bursaries were awarded to employees for full-time tertiary studies in specific fields of study critical to the company. These are technical fields where there is a need as per the sector skills shortage plan. Employees who are sponsored for full-time studies are referred to as In-Service Bursars (ISBs). The company provides generous benefits; In-Service Bursars who receive 80% of their salary as well as accommodation and book allowances. The bursar actuals for In-Service during 2011 were slightly below the plan. This was due to a focus on meeting the Mining Qualifications Authority's (MQA) need for assistance with work exposure for MQA bursars.
6.5.1 Employee Bursaries - Employees 18.1 In-Service Bursaries (ISB’s) - 18.1: Target link to Employment Equity: Note that the actual reflects the current employee profile within the company. It is currently the company ideal to ensure through affirmative action measures that its employee profile more closely resembles that of the country’s EAP. In the case of In-Service Bursars (18.1) the company will be applying affirmative action measures to ensure that the profile reflects the country’s EAP.
TABLE 6 H: BURSARIES – EMPLOYEES / INTERNAL 18.1 - ACTUAL 2011 (Social and Labour Plan, p45, table 2.6.1.B)
Male Female Overall Total
TotalHDSA African Coloured Indian White Total African Coloured Indian White Total
Mining PLAN 1 0 0 2 3 0 0 0 0 0 3 1
ACTUAL 0 0 0 2 2 0 0 0 0 0 2 0
Engineering PLAN 1 0 0 0 1 0 0 0 0 0 1 1
ACTUAL 1 0 0 0 1 0 0 0 0 0 1 1
MRM PLAN 0 0 0 0 0 0 0 0 1 1 1 1
ACTUAL 0 0 0 0 0 0 0 0 1 1 1 1
Metallurgy PLAN 0 0 0 0 0 0 0 0 0 0 0 0
ACTUAL 0 0 0 0 0 0 0 0 0 0 0 0
TOTALS PLAN 2 0 0 2 4 0 0 0 1 1 5 3
ACTUAL 1 0 0 2 3 0 0 0 1 1 4 2
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6.6 Core and Critical Skill For the purpose of this submission, Core and Critical Skills are defined as occupations within the Mining, Engineering, MRM and Metallurgy disciplines. Note: For a more detailed Core and Critical Skills Report refer to the EE Section of this report. Form Q as required by the MPRDA is hereby annexured as Annexure 3 Form R as required by the MPRDA is hereby annexured as Annexure 4 Form S is contained in Annexure 2
6.7 Career Progression 18.1 MANAGEMENT DEVELOPMENT: Appropriate managerial development relative to the employee’s current role and potential capability in accordance with the suite of managerial development programmes (MMP, IMDP, MDP & EDP). Managerial development is focused on the specific needs of the employee, and is aimed at enhancing his/her effectiveness in his/her role and equipping him/her to develop into future roles. The knowledge and skills acquired are broad in nature and aim to equip the employee with the ability to work more efficiently. The cost per person for management development programmes that includes the course fees, travelling, accommodation and flight tickets are on average as follows: EDP = R250 000 MDP = R70 000 IMDP = R70 000 MMP = R65 000
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Management Development for Employees - 18.1: Target link to Employment Equity: As the company profile changes so will the EE profile of those selected for management development change. From 2012 onward affirmative action measures will be applied to ensure that the profile of employees selected for management development reflects the EAP of the country.
TABLE 6 I: MANAGEMENT DEVELOPMENT BUDGET / ACTUAL 2011 (Social and Labour Plan, p49, table 2.8.B)
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
EDP PLAN 0 0 0 2 2 0 0 0 0 0 2 0
ACTUAL 0 0 0 2 2 0 0 0 0 0 2 0
MDP PLAN 2 1 1 6 10 0 0 0 0 0 10 4
ACTUAL 2 1 1 6 10 0 0 0 0 0 10 4
IMDP PLAN 4 0 0 3 7 0 0 0 2 2 9 6
ACTUAL 4 0 0 1 5 0 1 0 3 4 9 8
MMP PLAN 4 0 0 6 10 4 0 2 3 9 19 13
ACTUAL 3 1 0 6 10 4 0 2 3 9 19 13
TOTALS PLAN 10 1 1 17 29 4 0 2 5 11 40 23
ACTUAL 9 2 1 15 27 4 1 2 6 13 40 25
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STAFF DEVELOPMENT PANELS: Staff development panels are used to facilitate the career development of employees. The Staff Development Panel process, the identification of appropriate candidates and the career developmental plans resulting thereof are the accountability of the MoR. During 2011 a total of 109 individuals attended staff development panels and 54% of these were HDSA’s and 25% females.
TABLE 6 J: DEVELOPMENT PANELS – ACTUAL 2011
Male Female Overall
Total Total HDSA
Total Female African Coloured Indian White Total African Coloured Indian White Total
Commercial Services
0 0 0 0 0 0 0 0 1 1 1 1 1
Mining / RE 9 0 0 6 15 0 0 0 0 0 15 9 0
Finance 2 0 1 7 10 1 1 0 10 12 22 15 12
Environmental 0 0 0 0 0 0 0 0 0 0 0 0 0
HR 3 1 0 3 7 0 0 0 5 5 12 9 5
MRM 1 0 0 0 1 2 0 0 0 2 3 3 2
Engineering 6 2 0 16 24 0 0 0 2 2 26 10 2
Metallurgy 1 0 0 2 3 2 0 0 2 4 7 5 4
Security 1 0 0 3 4 0 0 0 0 0 4 1 0
Safety & Health 1 0 0 0 1 0 0 0 0 0 1 1 0
ATDS 3 1 0 13 17 0 0 0 1 1 18 5 1
TOTALS 27 4 1 50 82 5 1 0 21 27 109 59 27
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STUDY ASSISTANCE In addition to the formal HRD programmes mentioned above, the SA Region also offers employees the opportunity to grow and develop their knowledge and skills through study assistance. Employees are encouraged to further their studies in areas that will enhance the achievement of company objectives as well as individual development. However, employees who wish to further their studies in any field are not rejected. Employees who successfully complete qualifications that are in line with company objectives and their individual development are reimbursed 100% of their course fees upon completion, while employees who successfully complete qualifications unrelated to company objectives and individual development are reimbursed 50% of their course fees. During 2011, 281 individuals made use of study assistance, 92% being HDSAs
TABLE 6 K: STUDY ASSISTANCE - ACTUAL 2011
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
MOAB KHOTSONG 102 0 0 8 110 10 0 0 3 13 123 115
GREAT NOLIGWA 34 0 0 3 37 13 0 0 1 14 51 48
KOPANANG 41 0 0 2 43 9 0 0 0 9 52 50
VR SARS 6 2 0 7 15 2 0 0 4 6 21 14
VR METALLURGY 9 3 0 1 13 3 1 0 0 4 17 16
VR AGA HEALTH 4 0 0 0 4 12 0 0 1 13 17 17
TOTALS 196 5 0 21 222 49 1 0 9 59 281 260
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6.8 Mentorship Plan (18.1) Mentorship in the SA Region takes place against the backdrop of the Manager once Removed (MoR) contact sessions, which take place twice a year. During these sessions, subordinates have an opportunity to raise challenges they may be experiencing and can be coached and guided by their MoR. This system has been implemented for D-Band level employees and will be extended to lower levels in due course. During 2011; 138 (MoR & SoR) sessions were conducted which is a reflection the current employment profile of the company. Affirmative Action measures will be applied to ensure that the company profile with time reflects the demographics of the economically active population on all levels as outlined in the company’s employment equity plan. The purpose of this process is to ensure that every individual in the organization is mentored by their manager two levels up.
TABLE 6 L: CONTACT SESSIONS - ACTUAL 2011
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
CONTACT 28 4 2 80 114 5 0 0 19 24 138 58
TOTALS: 28 4 2 80 114 5 0 0 19 24 138 58
TABLE 6 M: CONTRACT SESSIONS - ACTUAL 2011
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
CONTRACT 70 6 4 168 248 17 3 4 33 57 305 137
TOTALS: 70 6 4 168 248 17 3 4 33 57 305 137
The system is based on the three tier managerial accountability structure of manager once removed (MoR), manager, and subordinate once removed (SoR), where the manager once removed is accountable for the mentoring and career development of the subordinate once removed. In terms of this every individual will be mentored by the manager two levels up i.e.:
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Figure 1: Three Tier Relationship In addition to the contact sessions; every bursar and intern is allocated a mentor as part of their structured development programme. Team Training for lower level employees have been implemented known as Simunye Team Training. The Simunye Team Training Coordinators and Facilitators have been trained by an Industrial Psychologist to be able to identify possible talent of individuals. The names of the individuals that have been identified are forwarded to the human resources and training departments on the various business units for inclusion in the formal talent pool process. This ensures direct input into the Workplace Skills Plan when possible talent is confirmed during the formal talent pool process, with resultant development plans. Further to this; a process is being explored to put individual development plans in place for all lower level employees by means of psychometric assessments to determine potential and specific developmental needs.
Manager once Removed
Mentor e.g. Production Manager
Manager
e.g. Section Manager
Subordinate once Removed
Mentee e.g. Mine Overseer
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COMMUNITY: HUMAN RESOUCES DEVELOPMENT PROGRAMME (HRD)
6.9 Adult Basic Education and Training (ABET) Community 18.2 The ABET programmes (Pre-Abet, ABET 1, 2 and 3) and National Certificate: Introduction to the Mining and Minerals Sector (NQF level 1) is presented on a full-time basis to the community. The aim is to improve the literacy levels within the communities within which we operate, but also to make community members employable.
TABLE 6 M: ABET 18.2 (COMMUNITY) VAAL RIVER – ACTUAL 2011 (Social and Labour Plan, p 55, table 2.10.1.B)
Male Female Overall
Total Total HDSA African Coloured Indian White Total African Coloured Indian White Total
Pre ABET PLAN 0 0 0 0 0 0 0 0 0 0 0 0
ACTUAL 3 0 0 0 3 3 0 0 0 3 6 6
ABET 1 PLAN 10 0 0 0 10 10 0 0 0 10 20 20
ACTUAL 6 0 0 0 6 7 0 0 0 7 13 13
ABET 2 PLAN 15 0 0 0 15 15 0 0 0 15 30 30
ACTUAL 41 0 0 0 41 42 0 0 0 42 83 83
ABET 3 PLAN 25 0 0 0 25 25 0 0 0 25 50 50
ACTUAL 41 0 0 0 41 42 0 0 0 42 83 83
ABET 4 / NQF 1 PLAN 35 0 0 0 35 35 0 0 0 35 70 70
ACTUAL 28 0 0 0 28 27 0 0 0 27 55 55
FLC PLAN 15 0 0 0 15 15 0 0 0 15 30 30
ACTUAL 0 0 0 0 0 0 0 0 0 0 0 0
TOTALS PLAN 100 0 0 0 100 100 0 0 0 100 200 200
ACTUAL 119 0 0 0 119 121 0 0 0 121 240 240
The plan was to educate 200 community member and this was exceeded by 40 individuals due to effective marketing and a high demand for ABET in the host community.
6.10 Alternative Skills to Mining (Engineering Portable Skills) – for employees (18.2) AGA provides voluntary skills training programmes to AGA Employees and community members with skills which are valuable outside of the mining industry through the Engineering Training Centre. The ratio of beneficiaries is 40 per cent employees and 60 per cent community Portable Skills training helps employees and community members to attain skills (such as, among others bricklaying and basic welding) that are not mining industry specific. Upon completion of the training, learners are provided with a certificate that may enhance their chances of securing employment in other industries. The employees as well as members of the community are trained in portable skills such as basic plumbing, basic computer, basic house wiring, basic bricklaying and basic welding. Training is available during and after hours for volunteers. Employees and Community members will be entitled to a once off course at no cost to the participant.
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Portable Skills (Engineering) for Employees: Target link to Employment Equity: Note that the actual 2011 does not reflect the demographics of the country it reflects the current employee profile within the company. It is currently the company’s strategy to work at ensuring that its’ employee profile more closely resembles that of the country’s EAP and as we begin to achieve this it will impact on the gender/ethnical breakdown of those volunteering for portable skills. The overall plan was to train 90 community members during 2011, but the actual exceeded the plan due to an intensified focus on community training.
TABLE 6 N: PORTABLE SKILLS TRAINING: ENGINEERING (COMMUNITY) 18.2 - ACTUAL 2011 (Social and Labour Plan, p58, table 2.11.B)
Male Female Overall Total
Total HDSA
BUDGET African Coloured Indian White Total African Coloured Indian White Total
6.11 Mining Skills for the Community (18.2) Community members are trained as stope and development team members at the Satellite Training Centres. This strategy is intended to increase the pool of capable people in local communities available for recruitment while reducing the time spent on recruitment and training during the engagement process. Names of the candidates are registered and forwarded to TEBA. After training the individuals have gained knowledge and some practical experience as a capable candidate that is on route towards full competency in the skill trained. Community Training (Mining): Target link to Employment Equity: The actual for 2011 do not reflect the demographics of the country. Lagging factors are that the numbers for Coloured, Indian and White learners are very low. Recruitment for the training is done via TEBA Ltd. We will partner with TEBA to assist to attract more Coloured, Indian and even White learners. Marketing in areas such as Lenasia and Greenspark (in Fochville) will be done to attract more coloured and Indian community members to participate in these initiatives so that the actuals will be more reflective of the country’s EAP. An improvement should be evident from 2012 onwards.
TABLE 6 O: MINING SKILLS TRAINING – COMMUNITY 18.2 - ACTUAL 2011(Social and Labour Plan, p61, table 2.12.B)
Male Female Overall Total
Total HDSA
BUDGET African Coloured Indian White Total African Coloured Indian White Total
The plan was to train 77 community members during 2011, but due to an increased need by business units for stope and development team members the actual exceeded the plan quite significantly.
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6.12 Internships (Community) 18.2 The company continues to work in partnership with the MQA to provide work-integrated learning for external students. These students are selected from the database of MQA-funded learners. Assistance depends on the performance and aspirations of the student as well as the availability of suitable opportunities within the company. External Internship Programmes (18.2): Target link to Employment Equity: The actual for 2011 is not reflective of the EAP demographics of the country. As we receive the learners via the MQA, we do not have total control of the ethnical/gender profile of the learners selected. We will, however, liaise with the MQA in order to influence in obtaining a more representative pool of interns. Note that the plan was exceeded quite significantly due to a focus on meeting the Mining Qualifications Authority's (MQA) need for assistance with work exposure for MQA bursars.
TABLE 6.P: EXTERNAL INTERNSHIP PROGRAMMES: NUMBER OF MQA STUDENTS (Social and Labour Plan, p 63, table 2.13.A)
Male Female Overall
Total Total HDSA African Coloured Indian White Total African Coloured Indian White Total
2011 PLAN 13 0 0 2 15 4 0 0 0 4 19 17
ACTUAL 30 0 0 2 32 7 0 0 0 7 39 37
TOTALS PLAN 13 0 0 2 15 4 0 0 0 4 19 17
ACTUAL 30 0 0 2 32 7 0 0 0 7 39 37
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6.13 Learnerships (Community) - 18.2 Learnerships for the Community (18.2): Target link to Employment Equity: The actual for 2011 does not reflect the economically active population of the country. Lagging factors are that the numbers for Coloured, Indian and also female learners that are low. The company will apply affirmative action measures to ensure that learners reflect the EAP of the country through: Partnerships with local municipalities. Liaison with schools to assist prospective university students by offering them learnership opportunities. AGA learnerships support the sector skills plan as it is offered in fields where there is a skills shortage. Note that learners miners are all developed from within (18.1) learners as it is the career path for lower level employees to develop to the next level. Learnership for the community (18.2) for 2011
TABLE 6 Q: LEARNERSHIP – COMMUNITY 18.2 - ACTUAL 2011 (Social and Labour Plan, p64, table 2.14.B)
Male Female Overall Total
Total HDSA African Coloured Indian White Total African Coloured Indian White Total
ENGINEERING LEARNERS
PLAN 2 0 0 1 3 1 0 0 0 1 4 3
ACTUAL 31 0 0 3 34 23 0 0 0 23 57 54
The actual for 2011 exceeds the plan due to a partnership with the Office of the North-West Premier.
6.14 Vocational Bursars – Learners (18.2) Bursaries are offered to community members for full-time tertiary studies in specific fields of study critical to the company, where there is a skills shortage. These Community bursars are accommodated on the AngloGold Ashanti Vocational Bursars (AVBs) Scheme and are sourced externally. AngloGold Ashanti Vocational Bursars (18.2): Target link to Employment Equity: The actual and the plan for 2011 do not reflect the economically active population of the country. Lagging factors are that the numbers for Coloured, Indian and also female learners that are low. The company will use the Vocational Bursary Scheme to progress towards the EAP of the country i.e.: The Vocational Bursary Programme for Vocational members (18.2) will be used to apply affirmative action measures. Bursary opportunities will be advertised in local newspapers. Liaison with schools to assist prospective university students by offering them bursaries. Liaising with universities to identify good candidates for bursaries.
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TABLE 6 R: BURSARIES – VOCATIONAL / EXTERNAL 18.2 – ACTUAL 2011 (Social and Labour Plan, p 66, table 2.15.1.B)
Male Female Overall Total Total HDSA
African Coloured Indian White Total African Coloured Indian White Total
Mining PLAN 4 0 0 2 6 0 0 0 0 0 6 4
ACTUAL 5 0 0 0 5 1 0 0 0 1 6 6
Engineering PLAN 3 0 0 1 4 1 0 0 0 1 5 4
ACTUAL 2 0 1 1 4 0 0 0 1 1 5 4
MRM PLAN 1 0 0 1 2 1 0 0 0 1 3 2
ACTUAL 1 0 0 1 2 0 0 0 1 1 3 2
Metallurgy PLAN 2 0 0 0 2 0 0 0 1 1 3 3
ACTUAL 2 0 0 0 2 1 0 0 1 2 4 4
TOTALS PLAN 10 0 0 4 14 2 0 0 1 3 17 13
ACTUAL 10 0 1 2 13 2 0 0 3 5 18 16
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SECTION 7: COMMUNITY DEVELOPMENT Mining Charter: Section 2.6 of the amended 2010 BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING AND MINERALS INDUSTRY which states as follows:
“Mine communities form an integral part of mining development, there has to be meaningful contribution towards community development, both in terms of size and impact, in keeping with the principles of the social license to operate. Stakeholders must adhere to the following:
Consistent with international best practices in terms of rules of engagement and guidelines, mining companies must invest in ethnographic community consultative and collaborative processes prior to the implementation/development of mining projects;
Mining companies must conduct an assessment to determine the developmental needs in collaboration with mining communities and identify projects within the needs analysis for their contribution to community development in line with Integrated Development Plans (IDPs), the cost of which should be proportionate to the size of investment.”
The Mining Charter scorecard requirements are indicated below along with the AGA Vaal River compliance to date:
SCORECARD FOR THE BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER FOR THE SOUTH AFRICAN MINING INDUSTRY- AGA : WEST WITS
ELEMENT DESCRIPTION MEASURE COMPLIANCE TARGET BY 2014
PROGRESS ACHIEVED BY
2010 Actual 2011 Actual 2012 2013 2014
7 Mine community development
Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis
Implement approved community projects in line with IDP's of local and major labour sending municipalities.
Up-to-date project implementation.
Projects were selected in the Host Communities and Labour sending areas which are listed and aligned with the IDPs.
Budget for LED, ED and Social projects were secured for 2012 leading up to 2014 for implementation. The future Forum was established.
Implement of community projects in line with IDP's of local and major labour sending municipalities and as committed in company SLP.
REGULATION 46 (c) (iii) of the MPRDA requires that the contents of a social and labour plan must include: c) A local economic development programme which must include-
i. The social and economic background of the area in which the mine operates; ii. The key economic activities of the area in which the mine operates; iii. The impact that the mine would have in the local and sending communities; iv. The infrastructure and poverty eradication projects that the mine would support in line with the Integrated Development Plan of the area in which the mine operates
and the major sending areas; v. The measures to address the housing and living conditions of the mine employees
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The following constitutes to the above stated Mining Charter requirements: In 2011 the company after having received a directive from the DMR to review its SLP LED projects, embarked on a process that lead to the review of the 2010-2014 SLP submitted on the 27 August 2010. This process involved extensive consultation and engagement with all the relevant stakeholders including recognised trade unions, the host and labour sending areas municipalities and the DMR. The LED financial provision was more than doubled in the Revised SLP. The LED projects identified in consultation with the municipalities derive from their IDPs and from the consultation process. Parallel to the above mentioned SLP, the company embarked on a process of establishing a Socio-Economic Development Framework (SEDF) and the socio-economic needs of the host and labour sending communities. The SEDF gave rise to the establishment of the LED,ED and Social funds which for Vaal River was substantially increased as indicated in the table below:
Table 7 A: COMMUNITY DEVELOPMENT: TOTAL FUNDS VAAL RIVER OPERATIONS & LABOUR SENDING
2011 2012 2013 2014 Total Allocation for 2011 – 2014
Local Economic Development R9,450M R25,667M R31,667M R24,667M R91,451 M
Enterprise Development R2,926M R15,073M R10,000M R10,000M R37,999M
Social Fund (SVP & EVP 50 %) R0M R7,5 M R7,5 M R7,5 M R22,5 M
TOTAL VAAL RIVER 12,376 48,240 49,167 42,167 R151,950 M
The 2011 spent for the host and labour sending communities in terms of Community Development is indicated in the table below. The detail of this is further broken down in this report.
TABLE 7 B: SUMMARY OF SPEND ON COMMUNITY DEVELOPMENT IN 2011:
LED projects R4 023 600
Social Development R6 700 000
Business Unit Spend R506 569.39
Metallurgy Hearts of Gold R98 825
LAC R422 969.80
Bursars R 2,435,832.00
ABET R 191,247.00
Community Training Mining Skills R 719,680.00
Engineering Youth Portable Skills R 338,250.00
Engineering Learnerships R 1,332,500.00
MQA Internships R 3,978,000.00
TOTAL R 20 747 473.19
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7.1 Community Consultation and Involvement (Stakeholder Engagement) The year 2011 was particularly important for AGA as the company revised its 2010 – 2014 SLP which resulted in the increase in the number of projects, as well as the budget. This necessitated that AGA arrange meetings with the DMR, municipalities, recognised trade unions, NGOs and business associations to engagement them on the development on both the SEDF and Revised SLP. To this end, the following meetings were held with the various stakeholders in 2011: Monthly Implementing Committee Meetings were held with Matlosana Municipality. Quarterly Mandating Committee Meetings were also held with Matlosana Municipality with representation of Senior Vice presidents Sustainability and Vaal River
Operations from AGA. Meeting with Executive Mayor of City of Matlosana to engage on the company’s revised SLP 2010 – 2014 projects. Engagement with DMR NW to seek advice and guidance on revising the company SLP and Implementation plan. Meeting with Organized Labour to establish a Future Forum and seek wisdom of their needs aligned with communities needs and AGA. AGA, National Union of Mine Workers (NUM), OR Tambo District Municipality (ORTDM) and DMR had visited an established Business Development Park in Durban,
KZN on the 19 September 2011 to give the stakeholders a clearer idea on what a Business Development Park is and how it functions in order for AGA to implement such a project. The detail of this project is reported further in this document. Further to this the company held a number of other meetings with ORTDM and NUM to discuss implementation of the Business Development Project in the ORTDM area. This culminated in the signing off of the MOU between AGA and ORTDM and as well as the Declaration of Intent.
The company was also invited to make a presentation to the parliamentary Committee of Mineral Resources on 16 November 2011. SVP: Sustainability held a breakfast meeting with organized business in Matlosana to brief on revised SLP 2010 – 2014, in particular Enterprise Development
initiatives, and encouraged business to come up with new initiatives to assist in creating sustainable jobs. In 2011 a workshop was conducted by AGA for Emerging Enterprises on how to start up their own businesses. A total of 160 emerging entrepreneur were trained and
two courses were conducted in the prison.
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7.2 Local Economic Development (LED) Projects In the reporting period of 2011 extensive consultation with stakeholders and development expertise was undertaken to develop and align the AngloGold Community Development Strategic Framework with these important inputs. In addition AngloGold Ashanti activity participated in the Integrated Development Planning (IDP) processes of host communities. The outcome of this process was that the Social and Labour Plan was revised and resubmitted to the DMR in October 2011.The LED commitments from AGA had significantly increased with additional initiatives aligned with the Council IDPs and the communities needs. Significant progress was achieved with projects as reflected and committed in original and revised Social & Labour Plans. Many big impact projects were chosen during the revision of the SLP which include projects such as Waste Management, Sub Acute Hospital, Housing Development, Schools Educational Facilities, Business Development Park and many others. These projects seek to create meaningful jobs within the communities and the community will ultimately “own” such projects once the Life on Mine ceases. Most of the projects have multiyear milestones and nearly all are within milestone targets. These projects are managed to agreed milestones and are monitored in the Mandating & Implementing committees with Council in the host communities. 7.2.1 LED Projects Completed in 2011 As part of the review of the SLP, the company has now incorporated the LED projects that were managed from the corporate office into its SAR socio-economic development framework and have included such projects in this report. Moving forward all such LED projects will first be discussed with the DMR for approval as agreed at the workshops between the DMR and the company. The total spent on LED projects for 2011 is R4 023 600 which is further explained below. Listed below are the projects concluded in 2011 including the corporate office CSI and LED projects: North West : Literacy, Maths, Science and Technology:
AGA embarked on an educational Maths, Science and Technology reform programme where the company took the lead in ensuring Literacy, Maths, Science and Technology are at the highest levels for children in our operational areas. The proactive approach taken led to the company approving R2,4 million in 2011 for the 2010 programmes in the North West Province concentrating in the Kenneth Kaunda district of Matlosana. Our mission as a company is to create mathematically, scientifically and technologically literate and functional learners who will be successful in the business world.
The high school programme was a continuation of the programme initiated in 2007 and the primary school programme for the district was aimed at addressing concerns from educators that learners are not always prepared for high school as they are not competent enough. In July 2010 the programme was launched and a gap analysis as well as needs analysis was conducted in the participating schools. In September 2010 the programme was introduced to the educators in Primary Schools around the Kenneth Kaunda district in the form of workshops. In March 2011 the first quarterly reports where submitted to AngloGold Ashanti for scrutiny and meetings with the service providers were held. In June 2011 the school visits were conducted by AGA with representatives from the Department of Education’s local offices in Maquassi Hills where three schools were visited. Another three schools in the Klerksdorp and surrounding area were also visited without the representation from the Department.
A needs analysis and a gap analysis were conducting in 12 primary schools around Matlosana and Maquassi Hills based on the refined Outcome Based Curriculum to ensure the proposed programme by service providers meets the requirement of the curriculum. The new curriculum for Primary Schools stipulates that pupils now have the option of learning in their mother tongue for the first three years of schooling. As part of the new curriculum English would not replace pupils' home languages in the early grades. Grade 1-3 classes were observed being taught in their mother tongue for maths, life skills and literacy subjects which seems to be working much better.
In Klerksdorp some schools had specific challenges with regards to grade 1 children who came from rural areas with no formal foundation phase from Child Development centres. Other challenges include the translation of learning material into the different local languages. The Department of Education Maquassi had
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requested that AGA hold competitions for maths, science and reading. The competition is to encourage children to develop the love for maths and science as well as the love for reading.
North West Ikateleng Community development Project:
The University of North West Ikateleng (Empower yourself) project started in1988 at the Vanderbijl Park Campus. This programme is in its 23rd
successful year running. More venues were established on request by the communities. Tutors with a proven track record in their area of specialisation are recruited to offer supplementary teaching and assist learners who experience problems in learning and/or understanding the subject. There is great concern about effective teaching at schools within the disadvantaged communities. This made various stakeholders to come together and assist in the teaching intervention with emphasis on Maths and Science subjects for Grades 10 - 12. To produce quality prospective university students, intervention programmes like the Ikateleng project are necessary to support the ineptly qualified and demoralised teachers in the disadvantaged schools, especially in the field of Natural and Economic Sciences.
The main objective of the Ikateleng project is an endeavour to improve overall examination results as well as the individual symbols that could be attained so that the learners can meet the admission requirements of tertiary institutions and also prepare them for such training. The programme also teaches learners effective life skills that enable them to cope with the challenges of school and tertiary education environments. The company had contributed R150 000 towards the 2011 expenses of this programme. Funding was used to transport learners to various venues, meals, textbooks and photocopies for challenging subjects and Life skills material. In 2010 there were 728 children on the programme from 72 high schools.168 passed with admission to Bachelor’s Degree; 56 pass with admission to Diploma and 3 with admission to Higher Certificate. By AGA contributing to such initiatives, we are making a great contribution to education in our operational areas to the communities.
Vaal River: Gogola encourages growth through knowledge project (Aardklop)
As part of its annual Aardklop sponsorship campaign, AngloGold Ashanti collaborated with the University of Pretoria's drama department and festival management to initiate the pilot of an interactive theatre-for-development project that places the focus firmly but with a lightly entertaining touch on environmental conservation issues. Gogola...Growth through knowledge, which comprised two travelling troupes (one for primary schools and one for secondary schools) started their road show on 26 September 2011 and gave their last performance on 7 October 2011, took an environmentally wise message of water conservation, plants as a source of food security and the importance of recycling to 20 schools and 20 community service organisations within the Matlosana, Merafong and Tlokwe areas. As part of the programme, AngloGold Ashanti's Environmental Management Department contributed R100 000 (figure indicated in Aardklop project below), planted two indigenous trees at each venue and handed out 7 000 packets of mixed vegetable seeds.
NW: Aardklop:
17 young local artists from the community performed with some of the country's most prominent recording artists at the Clover Music Arena which brings the local artists broader exposure and enhanced earning capacity. For the Bill Cosby Cultural Group highly disciplined and spectacularly well choreographed dancers from Ikageng, their performance resulted in them being chosen as the first recipients of the Clover Mama Afrika prize for most outstanding community artists. The Smeltkroes and FynGoud Prizes for the best new text in Afrikaans to debut at the festival and recognition for best Afrikaans text and best Afrikaans play also take place at the Aardklop.
AGA’s total investment value of sponsorship for Aardklop in 2011, is as reflected below: ‒ Aardklop sponsorship R700 000 ‒ Operational and brand activation R350 000 ‒ Gogola...Growth through knowledge (shown above) R100 000 ‒ Tswelelopele (shown under enterprise development below) R323 600 ‒ Total investment R1 473 600
With its nursing skills project:
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AngloGold Ashanti Health (AGAH) provides local community members with an opportunity to obtain a formal nursing qualification. The South African Nursing Council (SANC), with which AGAH is accredited, prescribes Enrolled Nursing Auxiliary (ENA) learner numbers based on clinical facilities and number of wards. SANC prescribed capacity of 16 community ENA learners for 2011, which meant that AGA accommodated eight learners in each of our two service districts per year. Another 24 learners will be trained through a private partnership with alternative nursing colleges. Practical training will be done in government hospitals. The AGAH team has been stumped by more than 2 500 applications submitted for the ENA project in 2011.
NW: Khayalethu Emergency Training Complex was created via the collaboration with the Provincial Department of Health, Matlosana Council and AngloGold
Ashanti with the transfer of an underutilised single sex residence to the state. The complex was converted by the normalisation of the bulk services by AGA with a direct linkage to Council services and with the Department of Health undertaking significant redevelopment of the complex so to create a state of the art medical emergency training facility. This resulted in the revitalisation of the adjacent urban area and creating employment beyond mining in the host community.
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LED: 2011 Achievements The table below is a summary overview of the 2011 achievements in terms of the committed LED projects:
TABLE 7 C: SUMMARY OF LED ACHIEVEMENTS IN 2011
Location: 1.Klerksdorp, Jourberton, Alabama, 2.Stilfontein, Khuma, 3.Orkney and Kanana, 4.Viljoenskroon and Rammulotsi and Vierfontien, 5.ORT and 6.Mine Villages
Project Name: Project Objectives
2012-2014: Total Budget
Budget Approval 2011
Estimated Employment Opportunities/Jobs
Objectives achieved in 2011
Khayalethu Residence Redevelop and transfer ownership of an underutilized residence to accommodate the North West Emergency Medical Rescue Service College
R1m R1m 60 Bulk services was upgarded and linked with the Council of Matlosana so to normalise the service provision at the complex. The necessary agreements was put in place between to Council, Department of Health and AGA to ensure the creation of the Medical Emergency Training Center
Urban Planning & Formalisation of non urban AGA Land & Property Holdings
Spatial & urban planning, formalisation and development of non urban land and property holdings to ensure the continued utilisation within the Matlosana Council spatial and urban frameworks.
R14m AGA embarked on a review of the housing obligations as reflected in the Charter especially homeownership aligned with organised labour. The outcome of this process will guide the future utilisation of the mine villages and as such the milestone had to be extended to 2012 with good progress being recorded.
Meat Processing Plant Compile a bankable business plan supported by business analysis to verify and outline strategies, action plans and secure investor commitments to the value of approximately 100 Million Euro to establish and implement an international competitive slaughter and meat processing plant.
R5m 500 The objective here was not achieved despite the intervention of National Treasury as the procurement system of the state is required to call for bids of interest. Subsequent discussions with the Premier of the North West indicate still strong support for the project
Business Development Park (VR )
Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Business Development Park to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile.
R15m The project is scheduled beyond the reporting period
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TABLE 7 C: SUMMARY OF LED ACHIEVEMENTS IN 2011
Business Development Park (ORT)
Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Business Development Park to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile.
8 Memorandum of understanding has been signed by OR Tambo District and stakeholders Cosatu, NAFCOC with DMR as observers joined the implementation process with service provider site visits and selection processes concluded. Funding was also secured.
Solar Park Development Generate alternative energy and feed it into the Eskom supply so addressing state need for alternative energy sources.
3 The project is scheduled beyond the reporting period
Solid waste management system To establish state of the art solid waste sites to replace current sites which is at capacity and to generate alternative energy for cleaner healthier communities.
R5m The project is scheduled beyond the reporting period
Construction of Speed Humps (MQK)
To build speed humps using members of the community to increase road safety in the township of Rammulotsi.
R450 000 R450 000 Project implementation ready to implement but the Council of Moqhaka indicated that they wish to indicate different needs from previous Council IDP process so project is on hold
Upgrading Dr. James Molatsi Stadium
Upgrade the Sports Centre to align and enhance the facility and infrastructure to standards acceptable to host mass sport and recreation events.
R3m 12 The stadium has been assessed as to the structural maintenance needs on hand over with full disclosure but Council established a committee to drive the process to identified additional priorities. AGA funding is secured
Community Centers : To enhance service delivery being bring it closer to community in adequate facilities.
Community Centers (MQH) To enhance service delivery being bring it closer to community in adequate facilities in Rammulotsi.
R1m Project is ready for implementation but Council has indicated that alternative needs will be presented from this IDP items. Project is on hold
Community Centers (ORT) To enhance service delivery being bring it closer to community in adequate facilities.
R1m The project is scheduled beyond the reporting period
Upgrade of Market Hall The planned extension of the Fresh Produce Market was started in 2004 and was never completed. It is currently 60% complete. The objective will be to complete the structures to allow the premises to function to its full potential.
R2m R2m Design and alignment with Council as owners has been reached. Funding is secure and tenders are being processed.
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TABLE 7 C: SUMMARY OF LED ACHIEVEMENTS IN 2011
Schools (ORT) The objective is to place learners in institutions that is in a physical condition that is conducive for teaching and learning with the focus on the eradication of mud schools
R4m
1.Ludeke Primary Project was completed and will be launched
2.Sonata Junior Primary School Sonata Junior Primary - Building 5 Classrooms and Toilets for students and teachers to eliminate mud school and improve educational outcomes
Design and alignment with Department of Education was reached. Funding is secured and tenders are being processes to implement.
Hawkers Shelters Improve trading conditions by providing facilities that is permanent safe and affordable for traders
R5m R5m 34 Design and alignment with Council as owners has been reached. Funding is secure and tenders are being processed.
Schools / Education Facilities Improved teaching conditions and resultant outcomes by upgrading of educational facilities
R12m
Vaal River Technical High Upgrading of the school buildings especially the roof and veranda areas
Design and alignment with Council as owners has been reached. Funding is secure and tenders are being processed.
Total LED R 68,45m R8,45m 617
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Listed in tables which follow are the details of the summarised LED projects above and the projects which are contained in the revised 2010-2014 SLP. Progress on projects and achievement of 2011 are also reflected in tables below:
LED 5. Khayalethu Residence Redevelopment
Description: Redevelop complex to training college by Dept of Health and transfer ownership of an entire single sex residence to the North West Government.
Location: City of Matlosana (Orkney)
Objective:
Redevelop and transfer ownership of an underutilized residence to accommodate the North West Emergency Medical Rescue Service College
Value contribution by AGA: R1 Million
Value contribution by other: R10 Million
Project category / type: LED
No of jobs to be created: 60
Benefit to Community: Revitalize economy in the area. Specialized training with high level of employ opportunity
Life span of project: Beyond life of mine and an operating sustainable entity
Is project aligned with IDP Yes
No of BEE suppliers to be used: Department of Health and Public Works executed the work plans
Skills transferred to HDSAs: Facility management and maintenance
Deliverables:
Transfer ownership of the assets and land to the North West Government. Upgrade the bulk services (power and water) infrastructure to City of Matlosana standards and linakge to urban infra structure. Secure Department Public Works signature on Deed of Donation on the land between Council & Department of Health Handover event Registration of ownership transfer and abandonment of SRP’s
Stakeholders: AGA, City of Matlosana, the North West Government (Departments of Public Works and Health) and the EMRS College
Achievements for 2011 Bulk services was upgarded and linked with the Council of Matlosana so to normalise the service provision at the complex. The necessary agreements was put in place between to Council, Department of Health and AGA to ensure the creation of the Medical Ememrgeny Training Center
Critical Path, Milestones & Design Path
Concept feasibility Completed
Finalize Business plan Completed
Obtain Funding Completed
Construct / Execute Facility Completed
Start Production Completed
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Revitalize economy in the area with higher level of commercial activity Specialized Training with high level of job opportunities
No. of direct Jobs Created 60
No. of in direct Jobs Created 300 level of trainees that is assured of employment
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 75 of 123
LED 2. Urban Planning & Formalisation of AGA non urban land & property holdings
Description: Formalisation of the non urban land & property holdings within the Council area of Matlosana
Location: City of Matlosana (Orkney)
Objective:
Spatial & urban planning, formalisation and development of non urban land and property holdings to ensure the continued utilisation within the Matlosana Council spatial and urban frameworks.
Value contribution by AGA: R 14m
Value contribution by other: Nil
Project category / type: LED
No of jobs to be created:
Benefit to Community: Ensure that areas are planned to be utilised with the urban / economic framework of business and government
Life span of project: Beyond life of mine
Is project aligned with IDP Yes
No of BEE suppliers to be used: To be establish when work is commissioned
Skills transferred to HDSAs: Management & associated services will be transferred to local council with appropriate mentoring and training
Deliverables:
Amendment of the Matlosana Spatial & Urban planning frameworks Formal incorporation of the targeted areas with Matlosana as suburbs. Transfer of services bulk and consumers to Matlosana so creating a revenue base Transfer ownership of the assets and land to the North West Government. Registration of ownership transfer and abandonment of SRP’s
Stakeholders: AGA, City of Matlosana
Achievements for 2011 AGA embarked on a review of the housing obligations as reflected in the Charter especially homeownership aligned with organised labour. The outcome of this process will guide the future utilisation of the mine villages and as such the milestone had to be extended to 2012 with good progress being recorded.
Critical Path, Milestones & Design Path
Concept feasibility Completed
Finalize Business plan Being reviewed given revised LOM and housing strategies
Obtain Funding
Construct / Execute Facility
Start Production January 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Revitalize economy in the area with higher level of commercial activity
No. of direct Jobs Created To be determined on final scope of project
No. of in direct Jobs Created To be determined on final scope of project
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 76 of 123
LED 1 - Slaughter and Meat Processing Plant
Description: Compile a bankable business plan to establish and implement an international competitive slaughter and meat processing plant
Location: Dr Kenneth Kaunda District Municipality
Objective:
Compile a bankable business plan supported by business analysis to verify and outline strategies, action plans and secure investor commitments to the value of approximately 100 Million Euro to establish and implement an international competitive slaughter and meat processing plant
Value contribution by AGA: R5 Million on a rand-for-rand basis
Value contribution by other: R5 Million
Project category / type: LED
No of jobs to be created: 500 direct jobs
Benefit to Community:
Introduce an opportunity to establish a new sustainable industry independent from mining, while securing investment, direct and indirect jobs & Skills transfer
Life span of project: Two years implementation and beyond
Is project aligned with IDP Yes
No of BEE suppliers to be used: Entity who implement the project will be the employer
Skills transferred to HDSAs:
Livestock farming methods to meet international supply standards will require training and cooperative structures New technology slaughter and meat processing skills
Deliverables:
Bankable business plan to meet the local and international stakeholders and financiers’ requirements Engaged National & Provincial Treasury and submitted application for project registration Review/align project stakeholder documentation – PPP requirements Procurement Process – establish and signoff within stakeholders Review Bid documentation Initiate Bid
Stakeholders: Dr. Kenneth Kaunda District Municipality, Dr Kenneth Kaunda Economic Agency, City of Matlosana and Invest North West
Achievements for 2011 The objective here was not achieved despite the intervention of National Treasury as the procurement system of the state is required to call for bids of interest. Subsequent discussions with the Premier of the North West indicate still strong support for the project
Critical Path, Milestones & Design Path
Concept feasibility December 2011 Completed
Finalize Business plan December 2011
Obtain Funding February 2012
Construct / Execute Facility July 2013
Start Production January 2015
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
As above
No. of direct Jobs Created 500
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 77 of 123
LED 3. Business Development Park – City of Matlosana
Description:
Establish a Business Development Park as a standalone business to manage a combination of entrepreneur/enterprise development and support procurement profiles of local stakeholders.
Location: City of Matlosana
Objective:
Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Business Development Park to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile.
Value contribution by AGA: R 15 M
Value contribution by other: Stakeholders committed to utilise and support the project
Project category / type: LED and ED
No of jobs to be created: Subject to scale of project implementation
Benefit to Community:
Introduce a new sustainable business in Matlosana Offer entrepreneurial identification, training and mentoring opportunities Establish relevant business linkages Promote local procurement
Life span of project: 3 years implementation and beyond
Is project aligned with IDP Yes
No of BEE suppliers to be used: Service provider BEE rating – Level 1 Contributor
Skills transferred to HDSAs: Entrepreneurial and business skills
Deliverables:
Introduce a new sustainable business in Matlosana Offer entrepreneurial identification, business skills training, new venture creation learnership and mentoring opportunities Business Start-Up Assistance & Mentoring Establish business linkages & Promote local procurement Business Support Services Conclude Bid Process within AGA + Confirm Stakeholder base + Scope of Work + Appointment of Service provider within AGA Confirm Stakeholder base and project commitment - MOU Align with similar initiatives Conclude Scope of Work Appointment of Service Provider
Stakeholders: Local Authorities, Invest North West, Development Bank of SA and Department of Trade and Industry.
Achievements for 2011
Critical Path, Milestones & Design Path Original
Concept feasibility January 2013
Finalize Business plan May 2013
Obtain Funding June 2013
Construct / Execute Facility July 2013
Start Production October 2013
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Project will deliver sustainable business support to enable entrepreneurs to mature into sustainable business entities and local supplier to increase their contribution to local supply base
No. of direct Jobs Created
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 78 of 123
LED 3.1 Business Development Park - OR Tambo
Description:
Establish a Business Development Park as a standalone business to manage a combination of entrepreneur/enterprise development and support procurement profiles of local stakeholders.
Location: District Municipality of OR Tambo
Objective:
Develop SMMEs and meet local procurement and associated empowerment targets embedded in the mining charter by establishing the Business Development Park to identify, train, support and mentor entrepreneurs/enterprise development and link procurement profiles of stakeholders with the relevant regions’ demand profile.
Value contribution by AGA: R8 Million/annum for 3 years with the contribution by NUM
Value contribution by other: Council is committed to support the project with venue and procurement support
Project category / type: LED and ED
No of jobs to be created: Subject to scale of project implementation
Benefit to Community:
Introduce a new sustainable business in OR Tambo and surrounding communities Offer entrepreneurial identification, training and mentoring opportunities Establish relevant business linkages Promote local procurement
Life span of project: 3 years and beyond
Is project aligned with IDP Yes
No of BEE suppliers to be used: Service provider BEE rating – Level 1 Contributor
Skills transferred to HDSAs: Entrepreneurial and business skills
Deliverables:
Introduce a new sustainable business Offer entrepreneurial identification, business skills training, new venture creation learnership and mentoring opportunities Business Start-Up Assistance & Mentoring Establish business linkages & Promote local procurement, Business Support Services Conclude Bid Process within AGA + Confirm Stakeholder base + Scope of Work + Appointment of Service provider within AGA Confirm Stakeholder base and project commitment - MOU,Align with similar initiatives ,Conclude Scope of Work,Appointment of Service Provider
Stakeholders: Local Authorities, Development Bank of SA and Department of Trade and Industry.
Achievements for 2011 Memorandum of understanding has been signed by OR Tambo District and stakeholders Cosatu, NAFCOC with DMR as observers joined the implementation process with service provider site visits and selection processes concluded. Funding was also secured.
Critical Path, Milestones & Design Path
Concept feasibility January 2012 Completed
Finalize Business plan May 2012
Obtain Funding June 2012
Construct / Execute July 2012
Start Production October 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
As above
No. of direct Jobs Created 8
No. of in direct Jobs Created 130
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 79 of 123
LED 4 - Solar – Alternative Energy
Description AngloGold Ashanti is facilitating the development of an alternative energy generation capacity by entering into favourable land agreements with developers of solar plants
Location: Vacant non mining surface land in Matlosana District Vaalkop 439 IP, Remaining Extent and Portion 3, Witkop 438 IP Portions 1 and 2 Vaalkop 439 IP Portion 7 and Portion 3 and Nooitgedacht 434 IP Portion 200
Objective: Generate alternative energy and feed it into the Eskom supply so addressing state need for alternative energy sources
Value contribution by AGA Reduce carbon footprint of surrounding communities and entering into land availability agreements
Value contribution by other: Kabi Solar will conduct all land and project assessments at risk and then jointly develop the project with solar industry companies
Project category / type: LED
No of jobs to be created: 3 but higher numbers during implementation stages
Benefit to Community: Establish alternative energy source & land utilisation
Life span of project: 20 year long term lease
Is project aligned with IDP No. City of Matlosana sited in the project and will be engaged at appropriate stage
No of BEE suppliers to be used: Kabi Solar
Skills transferred to HDSAs: Cleaning and minor repairs in operational phase
Deliverables:
Two Solar plants Conclude Land Access and Notarial Lease Review project structure, i.e. establish formal project Steering Committee Receive project records of understandings – EIA, Takeoff agreements, etc. Obtain agreement on Phase 2 and 3 of the project
Stakeholders: AGA, Kabi Solar and Solar Pack
Critical Path, Milestones & Design Path
Concept feasibility February 2012 Completed
Finalize Business plan July 2012
Obtain Funding August 2012
Construct / Execute January 2013
Start Production April 2014
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Establish alternative energy source
No. of direct Jobs Created 3
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 80 of 123
LED 6. Community Centres in Moqhaka
Description Establish community multipurpose centres for the needs of service delivery by the state especially Local Authorities & SASSA
Location: Viljoenskroon
Objective: Increase service delivery closer to community in adequate facilities
Value contribution by AGA: R2 M
Value contribution by other:
Project category / type: LED
No of jobs to be created:
Benefit to Community:
Health and Safety Revitalize use profile Standardize facility standards
Life span of project: Beyond mining
Is project aligned with IDP Yes
No of BEE suppliers to be used: Appointed contractors and clerk of works for the upgrading work
Skills transferred to HDSAs:
Deliverables:
Agree need with local council Agree location Agree ability to resource for intended services Construction Implementation
Stakeholders: Local Authorities and Service providers
Achievements for 2011 Project is ready for implementation but Council has indicated that alternative needs will be presented from this IDP items. Project is on hold
Critical Path, Milestones & Design Path Original
Concept feasibility Jan 2012 Completed
Finalize Business plan May 2012 Completed
Obtain Funding June 2012 Completed
Construct / Execute Facility July 2012
Start Production November 2013
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Health and Safety Revitalize use profile Standardize facility standards
No. of direct Jobs Created To be determined
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 81 of 123
LED 6.1 Community Centres in OR Tambo
Description Establish community multipurpose centres for the needs of service delivery by the state especially Local Authorities & SASSA
Location: OR Tambo City
Objective: Increase service delivery closer to community in adequate facilities
Value contribution by AGA: R1 M
Value contribution by other:
Project category / type: LED
No of jobs to be created:
Benefit to Community:
Health and Safety Revitalize use profile Standardize facility standards
Life span of project: Beyond mining
Is project aligned with IDP Yes
No of BEE suppliers to be used: Appointed contractors and clerk of works for the upgrading work
Skills transferred to HDSAs:
Deliverables:
Agree need with local council Agree location Agree ability to resource for intended services Construction Implementation
Stakeholders: Local Authorities and Service providers
Critical Path, Milestones & Design Path Original
Concept feasibility
Finalize Business plan
Obtain Funding
Construct / Execute Facility
Start Production
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Health and Safety Revitalize use profile Standardize facility standards
No. of direct Jobs Created To be determined
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 82 of 123
LED 12 - Solid Waste Management System
Description The development of modern solid waste management system from service point to disposal site for the Kenneth Kaunda District
Location: Within a central location within district to ensure adequate waste volumes to ensure sustainability.
Objective: To establish state of the art solid waste sites to replace current sites which is at capacity and to generate alternative energy for cleaner healthier communities
Value contribution by AGA Funding of feasibility reports and technical support also possibility to transfer mining disposal sites to local authority
Value contribution by other: District and Local Council will have to manage this complex given that they are licence holders
Project category / type: LED
No of jobs to be created: To be determined but should increase if waste selection is to be introduced
Benefit to Community: Job creation, cleaner environment & land utilisation
Life span of project: 20 year long term
Is project aligned with IDP Yes
No of BEE suppliers to be used: Collection and sorting will be BEE and so will procurement of main operating entity
Skills transferred to HDSAs: Operation of plant and support services
Deliverables:
Re affirm the willingness of Council to proceed with a project after initial response was negative Conclude Stakeholders MOU Review project structure, i.e. establish formal project Steering Committee Receive project records of understandings – EIA, Takeoff agreements, etc.
Stakeholders: AGA, District Council
Critical Path, Milestones & Design Path
Concept feasibility February 2012
Finalize Business plan Dec 2012
Obtain Funding August 2013
Construct / Execute January 2014
Start Production April 2014
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Considerable opportunities for employees and entrepreneurs
No. of direct Jobs Created To be determined
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 83 of 123
LED 13 Construction of Speed Humps (MQK)
Description The community of Viljoenskroon / Rammulutsi requested for speed humps in their main streets. The material to be used will be: interlocking paving bricks and 6 bags of gold asphalt premix. The cost is estimated at R1 585.00 (excluding labour)
Location: Moqhaka Municipality in Viljoenskroon and Rammulutsi.
Objective: To build speed humps using members of the community.
Value contribution by AGA
Value contribution by other: Staatmaker Construction CC will carry cost of one speed dump and train community members to build the humps
Project category / type: Community Project
No of jobs to be created: R450 000
Benefit to Community: Road safety as these speed humps will control speed.
Life span of project: One year
Is project aligned with IDP Yes
No of BEE suppliers to be used: Guidelines of EPWP
Skills transferred to HDSAs: Yes
Deliverables: Speed Humps
Stakeholders: AGA, Moqhaka Municipality, Staatmaker and Community
Achievements for 2011 Project implementation ready to implement but the Council of Moqhaka indicated that they wish to indicate different needs from prev Council IDP process so project is on hold
Critical Path, Milestones & Design Path
Concept feasibility Project was closed based on input by council funds to be carried into non allocated section
Finalize Business plan
Obtain Funding
Construct / Execute Facility
Start Production
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Improved road safety
No. of direct Jobs Created Temporary jobs (6 months) : 10 teams of 5 (estimated)
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 84 of 123
LED 6 - Upgrading of the Dr James Motlatsi Stadium
Description Contribute to the upgrading of the Motlatsi Sports Centre to national event requirements.
Location: City of Matlosana (Orkney)
Objective: Upgrade the Sports Centre to align and enhance the facility and infrastructure to standards acceptable to host mass sport and recreation events
Value contribution by AGA: R3 Million
Value contribution by other: R3 Million
Project category / type: LED
No of jobs to be created: 12
Benefit to Community:
Health and Safety Revitalize use profile Standardize facility standards
Life span of project: Beyond mining
Is project aligned with IDP
No of BEE suppliers to be used: City of Matlosana to appoint the necessary contractors and clerk of works for the upgrading work
Skills transferred to HDSAs:
Deliverables:
Conduct Structural and Security Assessments Signoff on upgrading requirements, e.g. Upgrade Floodlights Repair Roof Install new Irrigation system Renovate change rooms Replace playing surface Replace electrical cables to practice facilities Confirm designated Council Representation Signoff Procurement process
Stakeholders: AGA and City of Matlosana
Achievements for 2011 The stadium has been assessed as to the structural maintenance needs on hand over with full disclosure but Council established a committee to drive the process to identified additional priorities. AGA funding is secured
Critical Path, Milestones & Design Path
Concept feasibility November 2011 Completed
Finalize Business plan May 2012
Obtain Funding June 2012
Construct / Execute Facility July 2012
Start Production November 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Health and Safety Revitalize use profile Standardize facility standards
No. of direct Jobs Created 12
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 85 of 123
LED 14 - Community Centres in Moqhaka
Description Establish community multipurpose centres for the needs of service delivery by the state especially Local Authorities & SASSA
Location: Viljoenskroon
Objective: Increase service delivery closer to community in adequate facilities
Value contribution by AGA: R1 Million
Value contribution by other:
Project category / type: LED
No of jobs to be created:
Benefit to Community:
Health and Safety Revitalize use profile Standardize facility standards
Life span of project: Beyond mining
Is project aligned with IDP Yes
No of BEE suppliers to be used: Appointed contractors and clerk of works for the upgrading work
Skills transferred to HDSAs:
Deliverables:
Agree need with local council Agree location Agree ability to resource for intended services Construction Implementation
Stakeholders: Local Authorities and Service providers
Achievement for 2011 Project is ready for implementation but Council has indicated that alternative needs will be presented from this IDP items. Project is on hold
Critical Path, Milestones & Design Path
Concept feasibility Jan 2012 Completed
Finalize Business plan May 2012
Obtain Funding June 2012
Construct / Execute Facility July 2012
Start Production November 2013
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Health and Safety Revitalize use profile Standardize facility standards
No. of direct Jobs Created To be determined
No. of in direct Jobs Created To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 86 of 123
LED 14.1 - Community Centres in OR Tambo
Description Establish community multipurpose centres for the needs of service delivery by the state especially Local Authorities
Location: OR Tambo City
Objective: Increase service delivery closer to community in adequate facilities
Value contribution by AGA: R1 Million
Value contribution by other:
Project category / type: LED
No of jobs to be created:
Benefit to Community:
Health and Safety Revitalize use profile Standardize facility standards
Life span of project: Beyond mining
Is project aligned with IDP Yes
No of BEE suppliers to be used: Appointed contractors and clerk of works for the upgrading work
Skills transferred to HDSAs:
Deliverables:
Agree need with local council Agree location Agree ability to resource for intended services Construction Implementation
Stakeholders: Local Authorities and Service providers
Critical Path, Milestones & Design Path
Concept feasibility
Finalize Business plan May 2012
Obtain Funding June 2012
Construct / Execute Facility July 2012
Start Production November 2013
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Health and Safety Revitalize use profile Standardize facility standards
No. of direct Jobs Created
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 87 of 123
LED 11. Upgrading of Market Hall
Description: Upgrade of the fresh produce market as work programme has been outstanding for a protracted period
Location: Klerksdorp
Objective: The planned extension of the Fresh Produce Market was started in 2004 and was never completed. It is currently 60% complete. The objective will be to complete the structures to allow the premises to function to its full potential.
Value contribution by AGA: R2 M is in budget but cost estimates are @ R4.01m (excess funding from Hawker stalls project)
Value contribution by other: NA
Project category / type: LED
No of jobs to be created: TBD
Benefit to Community:
A functional produce market and sustained local economic development.
Life span of project: One Year with increased sustainability for market and local markets
Is project aligned with IDP Yes
No of BEE suppliers to be used: NA
Skills transferred to HDSAs:
NA
Deliverables:
Complete the planned extension of the market hall so that it can function as a market hall. From the original specification, the following will not be included / reduced: Roof over west platform, floor and storm water drainage South Parking and delivery yard Road works limited to 1650m²
Stakeholders: Dr. Kenneth Kaunda District Municipality, City of Matlosana
Achievements in 2011 Design and alignment with Council as owners has been reached. Funding is secure and tenders are being processed.
Critical Path, Milestones & Design Path Original Status end 2011
Concept feasibility October 2011 Completed
Finalize Business plan November 2011 Completed
Obtain Funding November 2011 February 2012
Construct / Execute Facility April 2012 March 2012
Start Production May 2012 August 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
As above
No. of direct Jobs Created Unknown until feasibility to be completed
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 88 of 123
LED 12 SCHOOLS - OR Tambo
Project description and Background
Sonata S Primary School
Business Objective and need Sonata Junior Primary - Building 5 Classrooms and Toilets for students and teachers to eliminate mud school and improve educational outcomes.
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R2 000 000
Funding by other Letter written to Mr Ngobeni asking for match funding from the office of the Minister
Location OR Tambo (Lebode)
Achieved 2011 Design and alignment with Department of Education was reached. Funding is secured and tenders are being processes to implement.
Critical Path, Milestones & Design Path
Concept feasibility January 2012 Completed
Finalize Business plan February 2012 Completed
Obtain Funding February 2012
Construct / Execute Facility March 2012
Start Production March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Eradicating mud school and contribute towards decent learning and better infrastructure in the Eastern Cape
No. of direct Jobs Created This will be a short project but there will be skills transfer to local
No. of in direct Jobs Created Local suppliers business will be boosted by this initiative.
Short Term (3 months) & No of Jobs at this stage
To be determined
Long Term (>12 months) & No of Jobs at this stage
To be determined
Completion date and exit strategy & No of Jobs at this stage
To be determined
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 89 of 123
LED 8. Hawker Shelters
Description: Build hawker shelters for smme's to provide an environment conducive for selling their products.
Location: Dr Kenneth Kaunda District Municipality - Matlosana Taxi Rank
Objective:
Improve trading conditions by providing: Safety & Hygiene Protection against the elements Facilities that is attractive and stimulate sales Affordable workspace
Value contribution by AGA: R5 M with a revised estimated cost R1 722 403 ( funding transferred to Market Hall and Car wash projects)
Value contribution by other: Land areas being made available by Council
Project category / type: LED
No of jobs to be created: 34 hawkers will use facilities 20 hawkers due to change in scope
Benefit to Community: Increase the sustainability of smme's / Stimulate new marketing opportunities Improved health and hygiene conditions
Life span of project: One year with sustainable utilisation beyond
Is project aligned with IDP Yes
No of BEE suppliers to be used: NA
Skills transferred to HDSAs: NA
Deliverables: Hawker Shelters
Stakeholders: Dr. Kenneth Kaunda District Municipality, City of Matlosana, Matlosana Hawker Society
Achievements 2011 Design and alignment with Council as owners has been reached. Funding is secure and tenders are being processed.
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility October 2011 Completed
Finalize Business plan November 2011 Completed
Obtain Funding November 2011 February 2012
Construct / Execute Facility January 2012 August 2012
Start Production February 2012 August 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
As above
No. of direct Jobs Created 34 hawkers will use facilities. Temporary jobs will be created through the building of the structures (numbers unknown at this stage) 20 hawkers
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 90 of 123
LED 15 AGRICULTURAL PROJECTS (VR)
Project Time frame 2013 -2014
Project description and Background
Develop the capacity of project owners to run commercially viable agricultural projects
Business Objective and need Job creation, poverty alleviation, food security
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R4 m
Funding by other N/A
Location Matlosana
Critical Path, Milestones & Design Path
Concept feasibility Feb 2012
Finalize Business plan April 2013
Obtain Funding May 2013
Construct / Execute Facility July 2014
Start Production August 2014
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Job creation, poverty alleviation, food security
No. of direct Jobs Created Unknown
No. of in direct Jobs Created Unknown
Short Term (3 months) & No of Jobs at this stage
Unknown
Long Term (>12 months) & No of Jobs at this stage
Unknown
Completion date and exit strategy & No of Jobs at this stage
Unknown
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 91 of 123
LED 16. Schools & Educational Facilities
Description: Maintenance and improvements to schools and educational infrastructure
Location: Klerksdorp
Objective: Improved teaching conditions by upgrading of school facilities
Value contribution by AGA: R12 M
Value contribution by other: NA
Project category / type: LED
No of jobs to be created: Unknown – await feasibility
Benefit to Community: Job creation, Local Economic Development / Improved teaching conditions
Life span of project: Three Years
Is project aligned with IDP Yes
No of BEE suppliers to be used: NA
Skills transferred to HDSAs: NA
Deliverables: Maintenance and Improvements done
Stakeholders: Dr. Kenneth Kaunda District Municipality, City of Matlosana
Critical Path, Milestones & Design Path
Concept feasibility February 2012 / 2013 / 2014 Completed 2012
Finalize Business plan June 2012/ 2013 / 2014 Completed 2012
Obtain Funding July 2012 / 2013 / 2014
Construct / Execute Facility August 2012 / 2013 / 2014
Start Production December 2012 / 2013 / 2014
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
As above
No. of direct Jobs Created Unknown until feasibility is completed
No. of in direct Jobs Created
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 92 of 123
7.3. Enterprise Development Programme In the reporting period of 2011 extensive consultation with stakeholders and development expertise were undertaken to develop and align the AngloGold Community Development Strategic Framework with these important inputs, so to implement a best practice framework. In addition AngloGold Ashanti participated and engaged with organised business, community formations and associated individuals in host communities. The outcome of the above process was that the Enterprise Development section of the Social and Labour Plans were revised and the financial commitment from AGA was significantly increase. Significant progress, was achieved in projects implementation as reflected and committed in original and revised Social & Labour Plans. The main focus area being the development of the Business Development Park concept and subsequent acceptance by all mayor stakeholders so to replace the previous AGA initiative of small medium business development which lacked consistent and professional mentoring and technical support and so failed to deliver the necessary impacts despite significant investments.Projects identified prior the formulation of the revised development framework, that do not meet the revised criteria, are being close and the funding is retained for alternative aligned initiatives with the focus on board based impact projects. All projects are managed too agreed milestones and are monitored on weekly basis. An important additional change in the management of Enterprise Development is the introduction of income generating projects where funding will be grant based if the beneficiaries are board based versus loans where the beneficiaries are individually based where funding will be at an 0% interest rate. In addition mentoring of established enterprises are continuing with the main focus to align these with the procurement demand and systems of AngloGold Ashanti. Listed below were initiatives made towards ED in 2011: North West Province: Students in Free Enterprise (SIFE) are a global, non-profit organisation who creates global partnerships between business and higher
education that prepares university students to make a meaningful contribution toward a better world as entrepreneurs and business leaders. SIFE challenges them to address real world business and economic issues in their communities. SIFE South Africa (SIFE SA) is celebrated its 10th anniversary last year. They have grown to 26 active universities taking part in their programme. SIFE SA saw a growth of 50% in active student membership, who have executed 161 educational outreach projects last year that directly impacted over 104 000 people. The importance of the SIFE programme in SA cannot be promoted enough as it directly promotes and supports entrepreneurship for registered students at all institutions of higher learning in South Africa.
The unemployment rate in SA is a single threat to stability and on-going progress. AGA believes that entrepreneurship and the development of the SMME sector in SA can help reduce the unemployment rate in SA.
In 2011 AGA contributed R100 000 towards this programme which contributed towards the professional development of the students, management and co-ordination of team activities, project field visits and material development. In the competition leg of this programme, the NW University team was the preferred choice since it is housed at the School of Entrepreneurship on the institution's Potchefstroom Campus.
NW: Tswelelopele (Aardklop): With a combined investment of around R800 000 (AGA’s contribution: R323 600) , the company collaborated with the Dr Kenneth
Kaunda District Municipality to launch a pilot project aimed at providing crafters from its host communities with an opportunity to improve their business skills and gain broader exposure through exhibiting their crafts in a arts festival environment. The enterprise development project, named Tswelelopele provided 36 emerging entrepreneurs with a three-week training programme before the festival, as well as couching and mentoring during the festival week and the assurance that their sustained growth will be nurtured by dedicated mentors. In preparation for the festival, the crafters were trained in business skills such as supply and costing, as well as marketing and brand management. Training started in mid September 2011 with two groups of entrepreneurs who received expert guidance at training venues in Orkney and Potchefstroom. In the first quarter of 2012, AngloGold Ashanti's Enterprise Development team will announce which of the Tswelelopele entrepreneurs had applied the knowledge gained to ensure excellent sales during the festival and excelled in placing their business on a firm footing for growth. The picture below shows one of the trained entrepreneurs who did brisk business selling ornaments, pottery and beads.
A workshop was held by AGA for Emerging Enterprises on how to start up their own businesses. A total of 160 emerging entrepreneur were trained and two courses were conducted in the prison.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 93 of 123
7.3.1 ED Projects: 2011 Incubation and Support The projects listed in table below are in the Incubation and support stage after they have received funding from AGA prior to 2011:
TABLE 7 D: INCUBATION AND SUPPORT PROJECTS
Entrepreneur Loan Amount Granted
Roel Canteen 15 000
Eva Shoes 10 900
Magetse Cell C 35 000
Augustine Public Phones 35 000
Shoroma Catering 30 000
Kena Telephones 30 000
Mathlare Garden Services 108 500
VR Auto 55 000
Lapmond Canteen 180 000
Melk Diphoko Construction 75 000
Matlosana Home of Biscuits 380 000
Molale Security 55 000
Rathabo Funerals 70 000
Vuka Msanzi 35 000
Dynamic Butchery 450 000
Triest Training Centre Non Financial Support
Mpuse Trading Non Financial Support
Tsebo Non Financial Support
VR Liquor Outlets Non Financial Support
In addition to this initiative the company is also doing regular community workshops in co-operation with the local business forum of Business and other community forums. These workshops are aimed at motivating and giving people the first steps in how to start their own businesses. The establishment of the Dynamic Butchery, initially part funded by AngloGold Ashanti and subsequently supported to expand and find additional partners and to link to the AngloGold Ashanti procurement systems. Aardklop Entrepreneurial Training which assisted traders to be exposed during the festival to formal business training and mentoring to increase their success rate at the event and beyond.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 94 of 123
ED: 2011 Achievements The table below is a summary overview of the 2011 achievements in terms of the committed ED projects:
TABLE 7.E: SUMMARY OF ENTERPRISE DEVELOPMENT PROJECTS ACHIEVED IN 2011
Projects Name Project Objectives
2012-2014 Total Budget
2011 Budget Approval
Estimated Employment Opportunities
Objectives achieved in 2011
LOANS: Enterprise Development Projects at 0% interest
Printing and Stationary Shop (Greenville)
Job Creation & Skill transfer R70 000 2 The need at this entity was for mentoring and better management practices which was made available.
Tlokwe Compost Plant Turn waste streams into compost for rehab projects. Empowerment and job creation
R100 000 Equipment (conveyor belt) was made available to Council to enable this entity to implement the business.
Tigane Bricks
Brick manufacturing and hardware. Empowerment of current employees to obtain part ownership and enable business to become sustainable
R1,2m Beyond reporting timelines
Enterprise Development (New Ventures)
Job creation, poverty alleviation R30m Funding and operational guidelines was expanded with the introduction of income generating assistance (grants) and interest free loans to entrepreneurs / enterprises
INCOME GENERATING: Enterprise Development Projects Supported by Grant Funding
Butchery Dynamic
AGA assisted the entrepreneur to buy butchery as a going concern in Klerksdorp. AGA and a well known meat wholesaler in Klerksdorp hold minority shares in this company to assist with skills transfer during the first three years of the business.
R450 000
4
Investor with the required business skills and linkages were introduced to enable this empowerment entity to grow. Procurement linkages to AGA was opened to secure a constant demand for the product range of the butchery.
Brick Making Plant Tlokwe
Brick manufacturing and hardware. Empowerment of current employees to obtain part ownership and enable business to become sustainable
R15,m R300 000 26 The business found to be sustainable. Funding has been secured and implementation is to follow in 2012
Composting Plant Vaal River
Turn waste streams into compost for rehab projects. Empowerment and job creation
R3m R600 000 10 The business found to be sustainable. Funding has been secured and implementation is to follow in 2012
Wood Wedges Manufacturing Plant
Empowerment if the current employees to obtain ownership and enable the business to become sustainable
R1,5m R300 000 22
Business opportunity was proved to be sustainable pending a better management buy out arrangement with current owners. Funding was secured and empowerment based entrepreneurs to implement the project found and ready
Light Engineering Workshop
Empowerment of current enterprise to deliver increased standard and volume of business to become sustainable
R406 000 R203 000 7
Business management skills put in place to enable this entity to grow beyond survival status with a need for equipment and material highlighted. Funding has been secured to address these constraints
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 95 of 123
TABLE 7.E: SUMMARY OF ENTERPRISE DEVELOPMENT PROJECTS ACHIEVED IN 2011
Youth Coop Car Wash Job Creation and skills development R1m R1m
Concept of the project was found to un sustainable and project will be closed with funding being retained for alternative projects.
Agric Projects (VR): Develop the capacity of project owners to run commercially viable agricultural projects
R4m
Beyond reporting timelines
Baralong Cooperative Develop the existing community as a sustainable agricultural cooperative
Agric Projects (ORT) Develop the capacity of project owners to run commercially viable agricultural projects
R4m
Aardklop entrepreneurial training
The DKKDM annually sponsor a group of 40 crafters to exhibit at the Aardklop festival in Potchefstroom. These crafters lack business skills and are ill equipped to present their products in a professional manner. AGA undertook to provide business skills training and practical training on building and decorating a stall.
R326 000 R326 000 38 Completed with significant empowerment of the traders involved. Procurement linkages beyond AGA and empowerment with the ED is being explored.
None of the projects were closed and all are in the progress of implementation. The Youth Coop Car Wash is being reassessed to ensure boarder base participation and sustainability
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 96 of 123
Listed in tables which follow are the details of the summarised ED projects above and the projects which are contained in the revised 2010-2014 SLP. Progress on projects and achievement of 2011 are also reflected in tables below:
ED 1. Butchery
Project Time frame 2010
Project description and Background AGA assisted the entrepreneur to buy butchery as a going concern in Klerksdorp. AGA and a well known meat wholesaler in Klerksdorp hold minority shares in this company to assist with skills transfer during the first three years of the business.
Business Objective and need 1) Job Creation 2) Skills Transfer
Entrepreneur Name Mrs Lea Tshabalala
Entrepreneur contact No. 082 828 4361
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R450 000
Funding by other Nil
Location Klerksdorp
Critical Path, Milestones & Design Path
Concept feasibility Completed
Finalize Business plan Completed
Obtain Funding Completed
Construct / Execute Facility Completed
Start Production Completed
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Increase in Local Spent Empowerment of a HDSA
No. of direct Jobs Created 6
No. of in direct Jobs Created -
Short Term (3 months) & No of Jobs at this stage
6
Long Term (>12 months) & No of Jobs at this stage
6
Completion date and exit strategy & No of Jobs at this stage
2013 or when loan is repaid
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 97 of 123
ED 19.12. Aardklop Entrepreneurial Training, Coaching And Mentoring Support Project
Project Time frame 2011
Project description and Background The DKKDM annually sponsor a group of 40 crafters to exhibit at the Aardklop festival in Potchefstroom. These crafters lack business skills and are ill equipped to present their products in a professional manner. AGA undertook to provide business skills training and practical training on building and decorating a stall.
Business Objective and need Capacitating crafters to make their businesses more sustainable.
Entrepreneur Name Group of 38 Crafters
Entrepreneur contact No. Available on request
HDSA Status African White Indian Coloured
Gender Status Female (x25) Male (x16)
Funding by AGA R323 600 Actual Expenditure R259 698
Funding by other DKKDM Sponsors exhibition area R100 000, plus food, transport and accommodation
Location Potchefstroom
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility August 2011 Completed
Finalize Business plan August 2011 Completed
Obtain Funding August 2011 Completed
Construct / Execute Facility September 2011 Completed
Start Production October 2011 Completed
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Sustainable businesses and local economic development
No. of direct Jobs Created 38 not new but sustained
No. of in direct Jobs Created
Short Term (3 months) & No of Jobs at this stage
38 not new but sustained
Long Term (>12 months) & No of Jobs at this stage
38 not new but sustained
Completion date and exit strategy & No of Jobs at this stage
October 2011: Crafters will get a year membership to Wesvaal Chamber of Business with an agency service for 1 year.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 98 of 123
ED 2. Brick Making Plant Tlokwe
Project Time frame 2011 – 2014
Project description and Background
Enterprise Development (ED) was approached by four people (HDSA) currently employed by Riverwalk Trading for assistance to buy the business from their current employer, Rob Hamman. Hamman has a number of projects in Africa that occupy most of his time. He entrusted the four to run and manage the business when he is out of the country. Hamman wishes to empower his staff to buy the business as opposed to selling the business to an external party. The business is situated in Ikageng, Potchefstroom.
Business Objective and need Brick manufacturing and hardware. Empowerment of current employees to obtain part ownership and enable business to become sustainable
Entrepreneur Name Elias Mfuba
Entrepreneur contact No. 0731954303
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R1 5m
Funding by other Overdraft facility of current owner remains in track
Location Ikageng, Potchefstroom
Critical Path, Milestones & Design Path
Concept feasibility June 2010 Completed
Finalize Business plan Oct 2010 Completed
Obtain Funding December 2011 January 2012
Construct / Execute Facility January 2012 February 2012
Start Production February 2012 March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Empowerment of current employees to obtain ownership / secured jobs to the community due to BEE status change
No. of direct Jobs Created 26 (not created but sustained)
No. of in direct Jobs Created -
Short Term (3 months) & No of Jobs at this stage
26 (not created but sustained)
Long Term (>12 months) & No of Jobs at this stage
32
Completion date and exit strategy & No of Jobs at this stage
New owners are well experienced with day to day operations. Limited interventions required. Exit when loan is repaid
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 99 of 123
ED 3. Composting Plant Vaal River
Project Time frame 2011 – 2014
Project description and Background North West University started a compost manufacturing project with Impala Platinum in Rustenburg in 2001. The projected started as a community project that employed 30 people from the nearby township. Under the watchful eye of the University the project expanded their operations to include the actual rehabilitation of the tailings dams. AGA wants to replicate the project in Vaal River
Business Objective and need Turn waste streams into compost for rehab projects. Empowerment and job creation
Entrepreneur Name Dirang Mmogo Business Enterprises
Entrepreneur contact No. Kelly Phukuile 073 324-4012
HDSA Status African 60% White 40% Indian Coloured
Gender Status Female 10% Male 90%
Funding by AGA R3 000 000
Funding by other North West University Technical Consulting / Biolibrium Technical Partner
Location Vaal Reef
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility Nov 2010 Completed
Finalize Business plan 31 October 2011 Completed
Obtain Funding November 2011 Completed
Construct / Execute Facility December 2011 February 2012
Start Production January 2012 March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Turn waste streams into compost for rehab projects. Empowerment and job creation
No. of direct Jobs Created 10
No. of in direct Jobs Created
Short Term (3 months) & No of Jobs at this stage
10
Long Term (>12 months) & No of Jobs at this stage
30
Completion date and exit strategy & No of Jobs at this stage
After repayment of loan or when business stabilise (approximately 3 years)
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 100 of 123
ED 12 Printing and Stationary Shop
Project Time frame 2011
Project description and Background Client requested finance to grow his existing business.
Business Objective and need 1) Job Creation 2) Skills Transfer
Entrepreneur Name Onnie Januarie
Entrepreneur contact No. 0713627615
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R70 000 (est)
Funding by other Nil
Location Klerksdorp
Critical Path, Milestones & Design Path
Concept feasibility Completed Completed
Finalize Business plan Oct 2011 Completed
Obtain Funding Not Feasible Completed
Construct / Execute Facility Not Feasible Completed
Start Production Not Feasible Completed
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Increase in Local Spent
No. of direct Jobs Created 2
No. of in direct Jobs Created
Short Term (3 months) & No of Jobs at this stage
2
Long Term (>12 months) & No of Jobs at this stage
2
Completion date and exit strategy & No of Jobs at this stage
Supplier to AGA – continued support
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 101 of 123
ED 4. Wood Wedges Manufacturing Plant
Project Time frame 2011 – 2014
Project description and Background
Mogugene Timbers CC is a new enterprise, which plans to buy a going concern – JC Timbers t/a Mega Timbers. Mogugene Timbers has nine members, who are currently all employed by Mega Timbers. The current owner has other business interests on his farm and would prefer to sell the business to Mogugene rather than to another person, or to close the business, since he has employed the nine partners for many years. Eight of the partners are historically disadvantaged South Africans [HDSA].
Business Objective and need Empowerment of current employees to obtain part ownership and enable business to become sustainable
Entrepreneur Name Mogugene Timbers CC
Entrepreneur contact No. Werner Havenga 083 301 7905, Titus Mokaleng
HDSA Status African (x8) White (x1) Indian Coloured
Gender Status Female Male (x9)
Funding by AGA R1 500 000
Funding by other Possible vendor funding by current owner
Location Vaal Reef
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility October 2010 Completed
Finalize Business plan November 2010 Completed
Obtain Funding November 2011 January 2012
Construct / Execute Facility January 2012 February 2012
Start Production February 2012 March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Empowerment of current employees to obtain part ownership and enable business to become sustainable
No. of direct Jobs Created 22 (not created but sustained)
No. of in direct Jobs Created -
Short Term (3 months) & No of Jobs at this stage
22 (not created but sustained)
Long Term (>12 months) & No of Jobs at this stage
35
Completion date and exit strategy & No of Jobs at this stage
After repayment of loan or when business stabilise (approximately 3 years) 35
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 102 of 123
ED 5. Light Engineering Workshop
Project Time frame 2011 – 2014
Project description and Background
Lipeere Steelworks is a light engineering company operating in Uraniaville, Klerksdorp. The company started very small, but showed a steady growth. The company finds itself in a position where its existing infrastructure cannot cope with its workload. Lipeere approached ED for assistance to elevate the company to a higher level of performance. In order to do so the company will need additional machines and a higher inventory level to ensure timely deliveries.
Business Objective and need Empowerment of current enterprise to deliver increased standard and volume of business to become sustainable
Entrepreneur Name Stephen & Sarah Lipeere
Entrepreneur contact No. 083 988 0134
HDSA Status African White Indian Coloured
Gender Status Female (WFx1) Male (WFx1)
Funding by AGA R406 000
Funding by other Indirect support from main client, Atlas Plastics
Location Jouberton, Klerksdorp
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility October 2010 Completed
Finalize Business plan November 2010 Completed
Obtain Funding November 2011 January 2012
Construct / Execute Facility January 2012 February 2012
Start Production February 2012 March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Empowerment of current enterprise to deliver increased standard and volume of business to become sustainable
No. of direct Jobs Created 7
No. of in direct Jobs Created -
Short Term (3 months) & No of Jobs at this stage
5
Long Term (>12 months) & No of Jobs at this stage
7
Completion date and exit strategy & No of Jobs at this stage
After repayment of loan or when business stabilise (approximately 3 years) 10
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 103 of 123
ED 6 Tlokwe Compost Project
Project Time frame 2011
Project description and Background Tlokwe Municipality is working with the North West University to establish a composting plant. The municipal manager approached AGA for assistance to provide conveyor belt for the project.
Business Objective and need Turn waste streams into compost for rehab projects. Empowerment and job creation
Entrepreneur Name Tlokwe LED
Entrepreneur contact No. Community Project
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA Conveyor belt: estimated value R100 000 Actual value:R 49 615
Funding by other North West University Technical Consulting / Biolibrium Technical Partner
Location Potchefstroom
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility August 2011 Completed
Finalize Business plan September 2011 Completed
Obtain Funding September 2011 Completed
Construct / Execute Facility October 2011 In Progress
Start Production November 2011 In Progress
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Turn waste streams into compost for rehab projects. Empowerment and job creation
No. of direct Jobs Created 10
No. of in direct Jobs Created -
Short Term (3 months) & No of Jobs at this stage
10
Long Term (>12 months) & No of Jobs at this stage
15
Completion date and exit strategy & No of Jobs at this stage
Tlokwe LED is the project champion – AGA exits after delivery of conveyor belt
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 104 of 123
ED 8. Brick Plant Tigane
Project Time frame 2012 – 2014
Project description and Background Current project at low scale project to bring project to sustainability
Business Objective and need Job Creation and skills development
Entrepreneur Name Tigane Brick making Co-operative
Entrepreneur contact No. N/A
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R1 200 000
Funding by other R 300 000 own funding
Location Tigane Township
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility November 2011 February 2012
Finalize Business plan November 2011 March 2012
Obtain Funding December 2011 April 2012
Construct / Execute Facility December 2011 April 2012
Start Production January 2012 March 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Job creation Poverty alleviation
No. of direct Jobs Created -
No. of in direct Jobs Created -
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 105 of 123
LED 9. Youth Co-Op Development Carwash
Project description and Background Provision of Car Wash Facilities in Township Areas
Business Objective and need Job Creation and skills development
Entrepreneur Name Matlosana LED
Entrepreneur contact No. N/A
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R1 m Revised Cost estimate: R1.443m (Access funding from Hawker stalls)
Funding by other N/A
Location Matlosana / Khuma
Critical Path, Milestones & Design Path Original Dec 2011
Concept feasibility October 2011 December 2011
Finalize Business plan November 2011 January 2012
Obtain Funding November 2011 February 2012
Construct / Execute Facility December 2011 March 2012
Start Production January 2012 August 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Job creation Poverty alleviation
No. of direct Jobs Created To be determined with Council
No. of in direct Jobs Created To be determined with Council
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 106 of 123
ED 10. Agricultural Projects Klerksdorp, Orkney, Stilfontein, Hartbeesfontein
Project Time frame 2012
Project description and Background Develop the capacity of project owners to run commercially viable agricultural projects
Business Objective and need Job creation, poverty alleviation, food security
Entrepreneur Name Matlosana LED
Entrepreneur contact No. N/A
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R4 000 000
Funding by other N/A
Location Matlosana
Critical Path, Milestones & Design Path
Concept feasibility Feb 2012
Finalize Business plan April 2013
Obtain Funding May 2013
Construct / Execute Facility July 2014
Start Production August 2014
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Job creation, poverty alleviation, food security
No. of direct Jobs Created Unknown
No. of in direct Jobs Created Unknown
Short Term (3 months) & No of Jobs at this stage
Unknown
Long Term (>12 months) & No of Jobs at this stage
Unknown
Completion date and exit strategy & No of Jobs at this stage
Unknown
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 107 of 123
ED 10. Enterprise Development (Vaal River)
Project Time frame 2012
Project description and Background Indentify and develop income generating viable projects
Business Objective and need Job creation, poverty alleviation
Entrepreneur Name -
Entrepreneur contact No. -
HDSA Status African White Indian Coloured
Gender Status Female Male
Funding by AGA R10 000 000 (budget per year)
Funding by other -
Location Matlosana
Critical Path, Milestones & Design Path
Concept feasibility February 2012
Finalize Business plan June 2012
Obtain Funding July 2012
Construct / Execute Facility August 2012
Start Production September 2012
Deliverables, Outcomes and Benefits:
Impact made in community and to Entrepreneur
Job creation, Local Economic Development
No. of direct Jobs Created Unknown
No. of in direct Jobs Created Unknown
Short Term (3 months) & No of Jobs at this stage
Unknown
Long Term (>12 months) & No of Jobs at this stage
Unknown
Completion date and exit strategy & No of Jobs at this stage
Unknown
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 108 of 123
7.4 Social Investment Spending Being a global company and understanding the needs in South Africa, the company has established a Socio-Economic Development Model in 2011. Entrenched in this model is for the company to support the Millennium Development Goals from 2012 onwards as listed below: POVERTY AND HUNGER EDUCATION GENDER EQUALITY CHILD HEALTH MATERNAL HEALTH HIV / Aids ENVIRONMENT SUSTAINABILITY PARTNERSHIP In this regard the company has allocated at funds approved for 2012 to 2014 for the Vaal River and Labour sending areas as shown below. Projects of this nature will be accessed and embarked upon depending on the need an impact to be made in the communities.
TABLE 7.F: SOCIAL FUNDS: VAAL RIVER OPERATIONS & LABOUR SENDING
Project Description ( R000) TOTAL 2011 2012 2013 2014
Social Fund (SVP & EVP 50 %) R22,5 M 0 R7,5 M R7,5 M R7,5 M
TOTAL SOCIAL FUNDS R22,5 M 0 R7,5 M R7,5 M R7,5 M
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 109 of 123
The figures below show the Social spent for 2011 by the company and a breakdown of the company contributions.
TABLE 7.G: Social Funds Spent: 2011
Name of Beneficiary Nature of support provided % of Benefits g towards HDSA Location Monetary (Rands)
Labour Sending Areas
Mercy Ship- Vision Southern Africa Training of Doctors for Cataract Operation 100% Eastern Cape R 100,000
Ndakana JSS Classroom Building 100% Eastern Cape R 1,400,000
St Francis Hospice Terminal Ill Patient 50% Eastern Cape R 200,000
Khululeka Community Education Development Centre Skills Training 100% Eastern Cape R 270,000
Letsema water project Community project 100% Eastern Cape R 2,970,000
Regency Foundation Network HIV/Aids Awareness 100% Eastern Cape R 370,000
Teba Development Food Security Lesotho Food Security 0% Lesotho R 400,000
Tholulwazi Uzivikele OVC Programme 100% Northern KZN R 200,000
Umthombo Youth Development Foundation Training of Medical Students 100% Northern KZN R 230,000
Total Labour Sending Areas R 6 140 000
Vaal River
Aganang Project HIV/Aids - Home Based Care 100% Kanana R 50,000
Kanana Soup Kitchen Feeding Scheme 100% Kanana R 80,000
Leeudoringstad Advise and Development Centre OVC Programme 100% Matlosana district R 50,000
Mosaic Amaphelo Day Care Centre OVC Programme 100% Matlosana district R 50,000
NG Welfare Potchefstroom Welfare Programme 40% Potchefstroom R 150,000
Amelia After Care Centre OVC Programme 30% Vaal River R 50,000
Kopano Aids Support Group Support Centre 100% Vaal River R 50,000
United Primary School Infrastructure refurbishment 100% Vaal River R 80,000
Total Vaal River R 560 000
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 110 of 123
Monies spent on philanthropy projects for 2011 at Business units are detailed below:
TABLE 7.H: BUSINESS UNIT SPENT: 2011
Business Unit Project Name / Organisation Project Description Rand Value Area or location
Great Noligwa Mine Hospice Matlosana Craft centre Produced pink ribbons for GNM/MOAB shavathon R 2,500.00 Klerksdorp
Great Noligwa Mine Meals on Wheels Supported regional initiative to buy pins for valentine’s day - Meals on wheels used it for funds
R 3,000.00 Klerksdorp
Moab and GNM Easter Feast Handing out blankets and food to less fortunates R 31,907.35 KOSH Area
Moab and GNM Easter Christmas visit Handing out Easter eggs ect to sick children R 5,000.00 Klerksdorp
Moab and GNM Winter warming project OFM/Pep blanket drive and others R 18,500.00 KOSH Area
Moab and GNM Driefontein Golf Day Assisting school with raising funds on their golf day R 2,000.00 Stilfontein
GNM and Moab Various charities Supporting Mandela day - 18 July 2011 R 18,000.00 Matlosana
GNM and Moab
Klerksdorp baby house Annual Charity Golf Day R 20,000.00 Matlosana
Triest Training Annual Charity Golf Day R 20,000.00 Matlosana
Evannah Old Age Home Annual Charity Golf Day R 20,000.00 Matlosana
Huis Servaas Annual Charity Golf Day R 20,000.00 Matlosana
Stilfontein Child welfare Annual Charity Golf Day R 20,000.00 Matlosana
Boitshoko Disabled Home Annual Charity Golf Day R 20,000.00 Matlosana
Haven for Children Annual Charity Golf Day R 20,000.00 Matlosana
Elandshaven Retirement Annual Charity Golf Day R 20,000.00 Matlosana
KLOPP Annual Charity Golf Day R 20,000.00 Matlosana
Stilfontein SPCA Annual Charity Golf Day R 10,000.00 Matlosana
JAK 127 Annual Charity Golf Day R 20,000.00 Matlosana
Orkney Animal Shelter Annual Charity Golf Day R 10,000.00 Matlosana
Emmanuel Home Base Annual Charity Golf Day R 20,000.00 Matlosana
Klerksdorp SPCA Annual Charity Golf Day R 10,000.00 Matlosana
Kraalkop Game Reserve Annual Charity Golf Day R 14,800.00 Matlosana
Moab and GNM Annual Kiddies Christmas party Various schools in the Matlosana region R 49,786.84 Matlosana
Moab and GNM Food hampers initiative Various charity organizations in Matlosana region R 28,471.20 Matlosana
Moab and GNM Women in Action Church initiative to raise money R 1,250.00 Matlosana
Moab and GNM
Bokgone Home Base Care House for orphans R 10,000.00 Matlosana
Sonlfower Emannues Church group - fund raising towards their community R 1,500.00 Matlosana
Klerksdorp Round Table Fund raising initiative R 2,000.00 Matlosana
Totals Moab Khotsong & Great Noligwa Mines R 438,715.39
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 111 of 123
Business Unit Project Name / Organisation Project Description Rand Value Area or location
Kopanang Mine
Triest Table of Unity R 2,500.00 Klerksdorp
Multipurpose organisation Bought blankets R 21,000.00 Khuma, Stilfontein
Phakamile Home Based Care Bought blankets R 21,000.00 Khuma, Stilfontein
ES La Grange Home Physically challenged children R 2,000.00 Potchefstgroom
OFM/PEP Stores Blanket Project R 1,000.00 For distribution in North West
ES La Grange School for Disabled
Supporting a Gold Day R 500.00 Potchefstroom
President Laerskool Cool drinks for cricket development R 504.00 Klerksdorp
CANSA Cancer Survivors R 1,650.00 KOSH area North West
Kiddies Christmas Party Kiddies Christmas Party R 10,000.00 KOSH area North West
Triest Training Centre International Day of people with Disabilities R 200.00 Klerksdorp North West
Various Organisations Food parcels to those less fortunate R 7,500.00 KOSH area North West
Total Kopanang R 67,854.00
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 112 of 123
Business Unit Project Name / Organisation who received assistance
Project Description Rand Value Area or location
Metallurgy Hearts of Gold
Meals on Wheels Feeding needy families R 1,500.00 Klerksdorp
Senzangakhana Orphanage R 5,000.00 Khotsong
Haven for Children Feeding scheme R 3,472.00 Alabama
Cansa Cansa Shavathon R 2,500.00 Klerksdorp
Life Line Charity (Groceries for a needy family) R 548.00 Klerksdorp
Klerksdorp Old Age Home Old Age Home R 5,000.00 Klerksdorp
Jedidiah Safe Haven & Crisis Centre
Safe Haven for Children R 5,000.00 Brits
Haven for Children Feeding Scheme R 5,000.00 Alabama
Emmaus Golf Day Christian Action R 5,000.00 Klerksdorp
Haven for Children (Feeding Scheme)
Ingredients to get them going for their biscuits baking project to earn more funds R 1,569.00 Alabama
Lion's Club (Welfare Organisation)
Food hampers for Simmer & Jack families R 4,912.00 Stilfontein
Lion's Club (Welfare Organisation)
30 Blankets for Simmer & Jack families R 3,600.00 Stilfontein
Haven for Children (Feeding Scheme)
Mandela Day Celebrations R 6,224.00 Alabama
Metallurgy Hearts of Gold
SonFlower Emmaus Christian Action for people in the community R 1,500.00 Klerksdorp
Individual Christian outreach to India R 1,000.00 Klerksdorp
Orkney Child Welfare Child Welfare R 5,000.00 Orkney
Stilfontein Child Welfare Child Welfare R 5,000.00 Stilfontein
Klerksdorp Child Welfare Child Welfare R 5,000.00 Klerksdorp
SA Guide Dog Association Training dogs to assist blind people to be more independent R 3,000.00
Adonai Day care centre for disabled people R 5,000.00 Klerksdorp
Klerksdorp Old Age Home Old Age Home with a lot of less fortunate residents R 5,000.00 Klerksdorp
Life Line Welfare as well as Home Base Care in Kanana and Jouberton R 5,000.00 Klerksdorp
UASA Needy families in Klerksdorp and Dominianville R 3,000.00 Klerksdorp
Orkney Animal Shelter Animal care for abandoned animals R 3,000.00 Orkney
SPCA Stilfontein Animal care for abandoned animals R 3,000.00 Stilfontein
Tlotlo Children's Home Children's Home for orphans R 5,000.00 Tigane
Total Metallurgy Hearts of Gold R 98,825.00
The aforementioned monies were spent by the business units. The company has established a local area committee (LAC) that contributes to the philanthropy projects in the company’s area of operations. The VR LAC projects amounted to R278 037.15 and in Potchefstroom R144 932.65 for 2011.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 113 of 123
7.5 Social Leases As part of AGA’s initiatives to go beyond compliance , AGA assists where possible organisations and individuals in the community with the requisite infrastructure for service delivery by providing premises at nominal rental rates. Deserving organisations and individuals benefit from the social leases scheme. In Vaal River there are currently 19 social type leases. The table below shows a list of such entities with their nominal rentals vs. Commercial rates applicable. AngloGold Ashanti plans to accommodate more such type social leases as premises become available.
TABLE 7.I: SOCIAL LEASES
No. NAME OF ENTITY SQM PROPERTY LEASE RENTALS TOTAL SOCIAL
SPENDING PER ANNUM
NOMINAL RENTAL CHARGED PER ANNUM
MARKET RELATED RENTAL FOR PREMISES PER ANNUM
1 APOSTOLIC FAITH MISSION CHURCH 320 4,124 46,080 41,956
2 CITY COUNCIL OF MATLOSANA (OFFICES) 305 - 43,920 43,920
3 CITY COUNCIL OF MATLOSANA (CLINIC) 330 2,220 47,520 45,300
5 EARLY SALVATION CHRISTIAN CHILD CARE CENTRE 1,285 4,785 185,040 180,255
6 MOSALA T/A JOLLY KIDS 80 1,952 11,520 9,568
7 NTSIE (UMUZIMUHLE PRE PRIMARY) 148 4,752 21,312 16,560
8 ORKNEY CHILD & FAMILY WELFARE Unit/s 85 69,600 69,515
9 ORKNEY ANIMAL SHELTER 458 143 65,952 65,809
10 MATLOSANA RUGBY ACADEMY 502 4,257 72,288 68,031
11 ST. JOHNS APOSTOLIC CHURCH 242 891 34,848 33,957
12 IRON MAIDEN MOTORCYCLE CLUB 30 2,468 4,320 1,852
13 NW DEPT. OF HEALTH 20,431 1 2,206,548 2,206,547
14 DEPT. PUBLIC WORKS (KANANA POLICE STATION) 900 58,508 129,600 71,092
15 VAAL REEFS TECHNICAL HIGH SCHOOL 10,045 1 1,446,480 1,446,479
16 VAAL REEFS PRIMARY SCHOOL 2,750 1 396,000 395,999
17 UNITED PRIMARY SCHOOL 1,159 1 166,896 166,895
18 EL-BETHEL CHRISTIAN WORSHIP MINISTRY 922 1,890 132,768 130,878
19 UMUZIMUHLE CONGREGATION 100 2,600 12,000 9,400
92,991 5,164,692 5,071,701
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 114 of 123
SECTION 8: SUSTAINABLE DEVELOPMENT AND GROWTH
8.1 Environmental Management Compliance Report for the year AngloGold Ashanti revised and resubmitted its Environmental Management Programme (EMP) following DMR comments on the initial submissions made in 2009. Pending final DMR approval of revised EMP, AGA conducted an internal Environmental Performance Assessment during the 4
th Quarter 2011. Formal environmental performance
assessments will in future be conducted on a two-yearly basis from the date of EMP approval. Closure liability assessments were updated (annually) and the closure trust fund is supplemented with bank guarantees to fully provide for premature closure. During 2011 AGA retained its focus on closure planning, research and development on phytoremediation, concurrent rehabilitation, dust management, waste management, and then specifically in terms of integrated water management, the following aspects: Risks associated with inter-mine flooding from neighbouring mines, Geo-hydrological assessments and groundwater seepage from tailings storage facilities, Surface water management, pollution control infrastructure improvements, Regional water balances and opportunities for reuse and reclamation. All AGA business units have retained ISO14001 certification since 2006. External legal compliance audits were conducted (2-yearly), supplemented by specific internal
compliance assessments on key environmental authorisations such as water use licences, waste authorisations, certificates of registration, etc.
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8.2 Health and Safety Compliance Report (Sect 7 in Mining Charter Reporting Template) 8.2.1 Report back template
TABLE 8.A
Measure Achievement current year TARGETS Points (Office use only)
2011 2012 2013 2014 Maximum Awarded
Implementation of culture transformation framework
Not applicable for 2011 reporting period. See note 8.2.1
NA Tbc Tbc 100% 2 2
Percentage of employees embarking on OHS representative training
11.7%. See 8.2.2.
2% 4% 6% 8% 2 2
Percentage of leading practices from MOSH Learning Hub investigated for implementation (1)
100%. See 8.2.3
100% 100% 100% 100% 2 2
Percentage of research findings from MHSC investigated for implementation (1)
100%. See 8.2.4
100% 100% 100% 100% 2 2
Health: Percentage of mandatory occupational health reports submitted
Achieved See 8.2.5
100% 100% 100% 100% 2 2
Health: Adherence to HIV/AIDS and TB guidelines
Achieved See 8.2.6
Yes Yes Yes Yes 2 2
TOTAL POINTS 12 12
(1) Only those leading practices and research findings completed during the current reporting period need to be investigated
8.2.2 Implementation of culture transformation framework The gap analysis between our systems/programmes and the minimum standards and activities contained in the Culture Transformation Framework (CTF) will be
completed by 18 May 2012. Adjustments that may be necessary to our systems/programmes will also be planned by that time. The gap analysis will be led by the Executive Vice President of the AGA SA Operations and will be done with the participation of worker representatives.
We shall pilot a Health and Safety leadership assessment during 2012. The EVP SA Operations will undergo such an assessment using the Leadership Tool developed by the Chamber of Mines based on leading global practice.
We shall report to the DMR as part of the Mining Charter commitments in accordance with the Reporting and Monitoring Scoring System of the CTF, on the progress that we have made with the implementation of the CTF.
8.2.3 Percentage of employees embarking on OHS representative training From 1 January 2009 to 31 December 2011 we have already sent 2598 employees out of a total complement of 22095 (on strength including contractors) employees
on MQA accredited training. We are presently well ahead of target, but will continue to train more employees.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 116 of 123
8.2.4 Percentage of leading practices from MOSH Learning Hub investigated for implementation The following leading practices were investigated for implementation: Netting with Bolting: The practice is applicable and will be adopted in a way appropriate to the local conditions at the operations. The demonstration mine workshop
only took place on 3 February 2012, and was well attended by AGA Managers and employees. It has become clear that the leading practice is not a “one size fits all” due to complexities such as confined space due to backfill. AGA has established a working group to facilitate the adoption, and the DMR will be updated at least quarterly during interactions and in Safety Reporting.
Hearing Protection Device – Selection Tool and Training and Awareness Material: The practice is acceptable, but AGA is adopting a more progressive approach which improves on this leading practice. AGA is already in the process of equipping all employees in high noise exposure occupations with Custom Moulded Hearing Protection Devices, following the MOSH process in doing so. By the end of December 2011, 7538 units had already been delivered. This process should be completed by mid-2012, with an ongoing maintenance and monitoring programme thereafter.
Footwall and Sidewall Treatment: AGA has for many years been doing Footwall treatment, and was the source mine for this leading practice. AGA’s Tau Tona Mine is the demonstration mine for the leading practice which now extends spray pattern to the sidewall. The revised practice will be adopted during 2012. The conversion and improvement of the spray cars is currently underway. The dust results have since 2008 been well within the industry milestone target and for 2011, VR Operations achieved 99.39% of samples below the OEL of 0.1 mg/m
3.
Although the leading practice on Proximity Detection System (PDS) Function Selection and Adoption Tool is not yet completed we are proactively investigating it, and taking part in trials on various units.
8.2.5 Percentage of research findings from MHSC investigated for implementation The Mine Health and Safety Council completed the following research findings (projects) during 2011, and they were considered for relevance by AGA SA: SIM060201 Track B: A Risk-based approach to enhancing support systems in Bushveld Complex Underground Mines – Not relevant. SIM 100601: NIHL and Silicosis Audit Tool – Relevant
AGA SA eagerly awaits to be involved in the process to be led by the MHSI as per the recommendations from the research study that:
Prior to roll out of use in the regions, pilot the NIHL and Silicosis prevention audit/performance tools at one regional MHSI office in order to ensure quality control of the tools, to determine the types of controls that need to be in place for efficient implementation and standardised use, and to provide information about how to manage the segregation of sections of the NIHL prevention tool.
On completion of the pilot phase, revise the guidance notes and training materials where necessary to include new information from the outcome of the piloting.
Following recommendations one and two, and in line with the proposal, conduct two regionally based workshops for delegates from both the MHSI and mining practitioners, based on the guidance notes and the training materials developed by the current project.
Until such time as the workshops are concluded, AGA SA operations will internally utilise the audit tools during 2012. SIM 100901: Thermal Stress (New approaches to induct employees in the mining sector to danger related to thermal stress and preventative measures) – Relevant.
We take note of the recommendations and will implement once the following have been concluded:
An instructional CD to explain how the board game can be played (MHSC?) needs to be developed and distributed with the board game to train facilitators.
A commercial version of the board game and all the instructional tools that go with it needs to be secured which can then be purchased by the mines.
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 117 of 123
8.2.6 Health: Percentage of mandatory occupational health reports submitted The following is a list of these mandatory reports:
TABLE 8.B
Mandatory Reports Submitted (Y/N) Date Submitted
Medical Report
Annual Medical Report Yes 29 February 2012
Hygiene Reports
Particulates Personal Exposure Report Form - 21.9(2)(a). YES Feb 2012
Heat Stress Exposure Report Form - 21.9(2)(c). YES Submitted after the hottest quarter (last submitted April 2011)
Cold Stress Exposure Report Form - 21.9(2)(d). YES Submitted after the coldest quarter (last submitted August 2012)
Personal Noise Exposure - Report Form - 21.9(2)(e) YES Feb 2012
TOTAL 5/5
8.2.6 Health: Adherence to HIV/AIDS and TB guidelines
TABLE 8.C
TB Guidelines compliant to:
TB policy (Y/N) Date TB Policy signed Annual TB programme review done (Y/N)
Date submitted to COM
NTBCP DMR Guidance note
Compliance to existing Guidelines – Yes TB & HIV programmes are aligned to the National TB Control Programmes, the DMR Guidance Note on TB, and the National HIV/AIDS Guidelines. Given the changing National policy framework and the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016.
AGA Health approved TB Policy – Oct 2009 Given the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016. Discussed with DMR on 20 March 2012 for clarity
Yes – Chamber of Mines External TB Reviews Yes – DMR Mass H&S Audits
23-24 January 2012 VR February & March 2012 VR
HIV Guideline compliant to:
HIV policy (Y/N) Date HIV Policy signed Report on HCT uptake (Y/N)
Date submitted to COM
HIV/AIDS National Guidelines
Compliance to existing Guidelines – Yes TB & HIV programmes are aligned to the National TB Control Programme, the DMR Guidance Note on TB, and the National HIV/AIDS Guidelines. Given the new NSP (2012-2016) TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016.
AGA Board approved HIV Policy – April 2005. Given the new NSP, TB & HIV policies & procedures are under review to update and align with the new National Strategic Plan 2012-2016. Discussed with DMR on 20 March 2012 for clarity.
Yes
Submitted quarterly to SABCOHA – Q4 report submitted electronically (Discussed with COM and not apparently not required)
TOTAL 2/2 2/2 Total = 4/4
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 118 of 123
SECTION 9: BENEFICIATION There is much clarification required on the issue. This element of the revised mining charter will become effective from 2012 onwards and will therefore not be reported in this report, however there are ongoing discussions/ engagement with DMR on way forward.
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SECTION 10: MEASURES TO AMELIORATE THE IMPACT OF DOWNSCALING & RETRENCHMENT
10.1. Background During 2011 AngloGold Ashanti’s South Africa Region continued with a Rebasing as part of the Strategic Blueprint and as an exercise to reposition the company for a sustainable future.
10.2. Mechanisms to save jobs and avoid job losses, as well as a decline in employment A number of capital and other projects were undertaken at the Moab Khotsong Mine (and will be intensified) to improve the life of mine in the Vaal River licensed area. During 2011 agreement was reached with Organized Labour to improve payment for retrenchees in the event of retrenchment. The agreement also provides for steps to be undertaken by the company and Organized Labour to optimize the utilization of mining assets in such a way to address the decline in the gold sector and to ensure long term viability of the industry.
10.3. Downscaling and Retrenchments In implementing the Strategic Blueprint of the company in 2011 great care was taken to ensure that the exercise does not lead to employer initiated retrenchment. No downscaling and / or retrenchments were undertaken during 2011. 10.3.1 Section 189 of the Labour Relations Act, 66 of 1995 (LRA) The company did not dismiss any employees on operational requirements in 2011. 10.3.2 Section 52 of the Mineral and Petroleum Resources Development Act, 2002 (MPDRA) There was no need to invoke sec. 52 (1) of the Mineral, Petroleum Resources Act, 2002, as the company did not contemplate retrenchments in 2011.
10.4 Measures undertaken to ameliorate the impact on Downscaling and Retrenchment The company is committed to manage downscaling and retrenchments in a manner that subscribes to fair labour practice as required by the applicable legislation, and in terms of company policy. In 2011 market conditions allowed the company not to embark on forced retrenchments, as envisaged by sec. 189 of the LRA and sec. 52(1)(a) and (b) of the MPDRA. The 2011 Chamber of Mines Wage Agreement provides for the minimum payment of R20 000.00 (Twenty Thousand Rands) severance pay in the event of employer initiated retrenchments.
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10.5 Establishment of a Future Forum Ongoing engagement of Trade Unions in 2011 around the establishment of a Future Forum in terms of the MPRDA occurred. These included but are not limited to highlighting the importance of the issue at the quarterly NUM steering committees and bilateral engagement of unions on the matter. The Unions are supportive of the establishment of a Future Forum. There is an undertaking by NUM to sign off on the constitution of the Future Forum during a AGA/ NUM steering committee meeting to take place towards the end of January 2012 where after a formal launch of the future forum will be planned.
10.6 Steps undertaken to avoid job losses The growth path of the company reported during 2010 is based on: (i) redesigning, (ii) rebasing, (iii) improvement, and (iv) cost saving and reduction yielded positive results and avoided massive job losses. All excess labour was managed in a manner to avoid retrenchments and job losses. The company will continue to apply the following strategies to address excess labour by avoiding job losses as long as such approach proves sustainable: Allowing for natural attrition; Placing a moratorium on recruitment and promotions (except in respect of scarce skills), and Allowing for voluntary exit arrangements continued and invoking the company’s retirement policy.
10.7 Communication and Consultation with Stakeholders Communication with organised labour about the company’s growth strategy occurred at (i) national leadership level, (ii) regional leadership level and at (iii) local leadership level. Consultation and communication occurred in the following instances: Quarterly results presentations by the Executive Vice President: South Africa Region; Quarterly Community Briefing Sessions; AGA/ NUM steering committees; Regular interface with UASA and Solidarity, Utilization of the company’s print and electronic media, and Breakaway Sessions with Organized Labour
10.8 Compliance with the Labour Relations Act As mentioned above, there was no need to invoke the provisions of the Labour Relations Act, 66 of 1995, particularly with reference to sec. 189 (2) and (3), as the company did not contemplate retrenchments.
10.9 Utilisation of the Training Lay-Off Scheme The approach in the rebasing exercise without retrenchment of employees, made it unnecessary to utilise the Training Lay-Off Scheme during 2011.
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SECTION 11: FINANCIAL PROVISION REGULATION 46 (e) of the MPRDA stipulates that the contents of a social and labour plan must: (e) provide financially for the implementation of the social and labour plan in terms of the implementation of- The human resource development programme; The local economic development programme; and The processes to manage downscaling and retrenchment
11.1 Human Resource Programme The following indicates the VR 2011 HRD Expenses which includes the AGA Employees (18.1) & Community (18.2):
TABLE 11.A
Vaal River Operations
Great Noligwa Tau Lekoa Kopanang Moab Khotsong TOTAL VRO
TOTAL TRAINING AND DEVELOPMENT COST 35 438 706 0 67 547 957 63 239 029 166 225 693
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 122 of 123
The total training and development cost for 2011 amounted to R166 225 693 which compares well with the forecast of R162 980 625. In terms of HRD the following budgets are planned going forward for the Vaal River operations and Labour Sending areas for 2012 to 2014.
TABLE 11.B
HUMAN RESOURCE DEVELOPMENT PROGRAMME : FINANCIAL PROVISION FOR VAAL RIVER
11.2 Local Economic Development Programme REGULATION 46 (e) (ii) of the MPRDA which stipulates that the contents of a social and labour plan must: (e) provide financially for the implementation of the social and labour plan in terms of the implementation of- ii The local economic development programme In the fourth quarter of 2011, the company had revised its SLP in consultation with the North West DMR, hence securing budgets for 2012 and leading up to 2014 as indicated in the table below. The company has in allocating funds for this SLP LED programme been in primarily guided by its new Socio-economic development model and strategy. This model has been developed with the assistance of external experts and company stakeholders which includes the following components: Infrastructure development (taking into account the New growth path framework) IDPs Social development (mainly UN Millennium development related issues), Economic development (related to Enterprise development ) Institutional development (related to capacity building of institution and structures of local and host communities) and Land and Environment
AngloGold Ashanti Social and Labour Plan Report 2011 – Vaal River – Rev 00 Page 123 of 123
The 2011 spent for the host and labour sending communities in terms of Community Development is indicated in the table below. The detail of this is further broken down in this report.
SUMMARY OF SPEND ON COMMUNITY DEVELOPMENT IN 2011:
LED projects R4 023 600
Social Development R6 700 000
Business Unit Spend R506 569.39
Metallurgy Hearts of Gold R98 825
LAC R422 969.80
Bursars R 2,435,832.00
ABET R 191,247.00
Community Training Mining Skills R 719,680.00
Engineering Youth Portable Skills R 338,250.00
Engineering Learnerships R 1,332,500.00
MQA Internships R 3,978,000.00
TOTAL R 20 747 473.19
11.3 Downscaling and Retrenchment REGULATION 46 (e) (iii) of the MPRDA which stipulates that the contents of a social and labour plan must: (e) provide financially for the implementation of the social and labour plan in terms of the implementation of- The processes to manage downscaling and retrenchment The company provides for the management of downscaling and retrenchment in terms of its Business plan process. The Labour Relations Act’s process and requirements will precede any downscaling that may lead to retrenchments. In the 2011-2013 Wage Agreement entered into between organized labour and the company, through the Chamber of Mines, provides for the payment of a minimum severance pay of not less than R20 000.00. It further undertook to pay a severance pay of not less than two weeks’ pay for every year worked. The company provides for the following when contemplating downscaling: An ex-gratia payment equivalent to one month’s basic pay. 50% of the retrenchee’s monthly basic pay for every completed year of continuous service.
