Community

Community

Petra is cognisant that, as a mining company, we are exploiting a finite resource and that there is a window of opportunity for us to play a role in the social and economic upliftment of the communities in which we operate. Petra is committed to identifying sustainable projects in conjunction with local communities themselves, as well as local authorities. The Group is committed to taking an holistic and structured approach to corporate social responsibility (CSR), and to use training and skills development as a complementary tool to improve the lives of employees and community members alike.

Petra’s commitment to CSR is outlined in the Group’s CSR Policy Statement. There were a range of CSR and local economic development (LED) projects identified and undertaken at the Company's mining operations. A number of these projects have been developed as part of the Group's social and labour plans (SLPs).

CSR projects in South Africa

Some of the CSR projects that have been undertaken at the South African operations during the year under review are discussed below.

Cullinan

Cullinan is very active in the local community and the mine supported a wide number of CSR projects in FY2010 such as:

  • Imfundiso Jewellery School – Cullinan provided the workshop space for the school and contributed towards water and energy costs for the year.
  • Cullinan High School – Cullinan sponsored ‘The Great Gat Festival’, raising funds for the local high school.
  • Cullinan Community Sports Centre – Cullinan funded a number of community development programmes (rugby, soccer and cricket), sponsored the ‘Let’s Play’ Open Day and provided space for the local community to watch the FIFA World Cup tournament.

The Cullinan Charity Fund is run by Cullinan mine employee volunteers and creates an instrument for volunteers to assist the local and surrounding communities of Cullinan, Refilwe and Rayton in poverty alleviation.

Funds are raised through monthly contributions by employee members of the fund. The fund committee also raises funds by seeking pledges from various local businesses. Some of the projects supported by the fund are:

  • Tshepong Centre for the Physically Disabled: an NGO that provides day care shelter to 40 disabled people (including children) with educational impairments. The centre provides emotional support and cognitive stimulation through various educational activities. In addition, skills training and meals are provided, sponsored by the Department of Labour.
  • Local Schools Support Programme: there are eight schools in the local community of Refilwe, four of which have a large number of children from destitute backgrounds due to the high unemployment rate in the area. The fund has donated uniforms to these four schools and contributes annually to the schools support programme.
  • Poverty alleviation programme: as unemployment is one of the biggest challenges in the areas in which the Company operates, the fund has partnered with these local communities and NGOs to alleviate poverty and unemployment. The fund’s annual expenditure on this initiative includes job creation, skills training, start-up capital and the provision of food parcels.
  • Medical support programme: in response to various requests for medical intervention, the fund caters for about 50% of medical costs for community members. In special circumstances where the family is unable to raise the balance, the fund pays the total cost. The medical cases supported by this programme are physiological therapy, special medical operations, medical equipment and special disability training for childcare workers.

Koffiefontein

Koffiefontein is very active within the local community as the mine is the most important employer in the area. The mine, in collaboration with the local community, has operated a soup kitchen since July 2008 to provide nutrition for needy community members. For many people, it is their only meal of the day. Blankets are also provided, particularly in winter.

In FY2010, Koffiefontein provided playground equipment to three play areas at the Panorama Combined School in Jacobsdal, the park created for children of employees in the mine's residential area and the Victor Moloi Community Park. In addition, braais, seating areas and toilet facilities were built at the park by Koffiefontein employees, as part of their portable skills development training. This project is ongoing with assistance from the municipality.

Kimberley Underground

Kimberley Underground sponsored 25 learners for the year at the local Du Toitspan Primary School. Uniforms, stationery and sports equipment were also provided.

The mine also supports the Sinotando Centre, a safe haven for abused women and children in the area. The centre provides access to social workers as well as counselling services in collaboration with the Department of Social Services. See case study: Kimberley Underground supports victims of abuse.

Sedibeng

Sedibeng supports the Selelo Child Project, which addresses the plight of the growing number of street children in the area, in collaboration with Thabiso, a local NGO. The children are provided with regular meals, assistance in attending school and a safe haven in cases where they are in threatening situations. Counsellors and social workers are also available for guidance when necessary. HIV counselling and testing will be a focal point for the centre in the 2011 financial year.

Helam

Helam mine has been supporting the Slimkop Project for some seven years. This is a sponsorship project which funds the education of certain under-privileged children at Radikwega in the North West province. Learners on the project are chosen on merit and family circumstances. The project caters for school fees, tutoring, hostel accommodation, food, clothing, uniforms, stationery and anything else they require to perform well at school.

LED projects

In order to help stimulate local economic development (LED) in South Africa, Petra works with the local community and the Department of Mineral Resources (DMR) to identify and develop a number of appropriate LED projects. The projects typically have a five-year period of funding. These are some of the LED projects undertaken in the various municipalities:

Cullinan

Five LED projects have been identified for poverty alleviation in the local community from which most of Petra's workforce is sourced. These are:

Vukuzenzele Agriculture Project: The provision of agricultural and farming skills for the Vukuzenzele agricultural project based in Refilwe with the Nokeng Tsa Taemane municipality as a partner. There are 10 beneficiaries to date and the project aims to become a commercially viable small, medium and micro enterprise (SMME), supplying the local and provincial market, thus creating jobs in the area. In addition to the 10 beneficiaries involved, 25 employment opportunities have been identified. The mine will recruit 15 members of the community who will attend an intensive theoretical and practical training course at the Tshwane University of Technology Farm from August 2010.

In addition, the Metsweding District Municipality has already negotiated with both fresh food produce distributors and Shoprite Checkers for the marketing of produce from the farm. The project was officially launched in September 2010.

Agriculture Sector: The provision of funding and entrepreneurship skills to encourage the active participation of women and youth in the agriculture sector through the Kungwini agricultural hub project. Kungwini municipality as a whole is the beneficiary of this project. Various projects have been recommended and these will be officially launched in October 2010.

Upgrade of Refilwe waste water reticulation system: The Refilwe waste water reticulation system upgrade project is located in the Nokeng Tsa Taemane municipality. Cullinan has recommended a change of the scope of this project towards job creation and poverty alleviation. This will be a skills development project that will equip 10 unemployed youth (including women) with artisan skills and assist two members of the community in establishing a SMME. The mine awaits approval on this proposal from the DMR.

Local tourism: Cullinan is considered a tourist hub for Gauteng, with almost 30,000 international tourists visiting the Cullinan mine every year due to its reputation as the source of many famous and rare diamonds. A project is under way to aid the development of a local arts and crafts industry by training women and youth in beadwork, art and craft skills, as well as increasing young HDSA tour operators from the local Nokeng Tsa Taemane municipality. Cullinan has engaged the Metsweding Entrepreneurial Development Centre as a strategic partner to assist with the implementation phase of the project and awaits a proposal from them for discussion and approval.

Nokeng Tsa Taemane Water Project: The provision of technical support to the Nokeng Tsa Taemane municipality in the supply of water and the upgrade of the current infrastructure such as replacing old water pipes. This project is labour intensive and therefore creates jobs.

Koffiefontein

The mine identified the following projects to assist local SMMEs according to the approved SLP:

SMME mentorship: Mentoring of SMMEs continued in FY2010 with Koffiefontein providing assistance and advisory services to three SMMEs such as book-keeping, business skills training and basic computer literacy skills. The SMMEs aided were Go Tswa Metsing Fisheries, Itshokolele Poultry Farm and Kholomba Transport.

Bulk brick manufacturing project: A bulk brick manufacturing project has been set up to ascertain whether bricks can be produced using slimes residue material from the Koffiefontein mine, which contains high clay content. A site has been established for the project, a water pipeline laid and brick manufacturing equipment procured. In addition, a consultant with relevant experience in brick making is providing assistance. A trial will now focus on manufacturing a batch of bricks to determine whether the process will be economically viable.

Aggregate plant: The aggregate plant project to be set up will crush aggregate material sourced from the Koffiefontein mine waste rock dump to supply local demand for crushed stone (used for various local construction projects). Two crushers have been procured for the aggregrate plant project and the site has now been established. A beneficiary SMME to be mentored has yet to be selected to operate the plant.

Upgrade of recreational facilities: Koffiefontein is upgrading and improving local recreational facilities in line with a combined strategy with the local municipality to ultimately provide quality facilities that will form the basis for a Wine & Diamond Tourist Route. During FY2010, the mine upgraded a guesthouse and added to the chalets on the game farm. In addition, the Koffiefontein Adventure Club was very active for the year. The swimming pool and golf club were refurbished and made available to the community and a large number of community events were held at the Adventure Club throughout the year.

Kimberley Underground

The mine has worked closely with the Sol Plaatje and Frans Baard municipalities to ensure that the mine's selected LED projects are closely aligned with their integrated development plans (IDPs). Sustainable projects have been identified which will promote development in the local municipality and help to alleviate poverty.

Petra only completed the acquisition of Kimberley Underground in May 2010, and therefore these projects are due to commence in FY2001.

Helam

Three LED projects were identified in the Kgetleng municipality as follows:

Entrepreneurship development: This has identified jobs for a total of 35 beneficiaries (including 10 youths) who will be trained for the implementation of farming, milling, landfill and waste management projects in the community.

The Kgetleng Farming and Milling Project: A team has been established for this project in seven phases, creating jobs for 22 beneficiaries, including two youths. The project will be implemented from 2012.

The Kgetleng Landfill and Waste Management Project: this project will create jobs for some 65 beneficiaries, of whom 15 are youths, in a series of nine phases.

Sedibeng

Two LED projects have been identified as part of the IDP of the Magareng municipality. These are:

Food Garden: The development of a food garden for poverty alleviation.

Abattoir: The establishment of an abattoir as part of a regional small and medium sized business development.

Star

Star mine has been involved in supporting the IDP of the Masilonyana municipality. Two key projects have been identified:

Business Development Centre: The development of a Business Development Centre where local SMMEs can receive both administrative and management support. A key objective here is to install and maintain office equipment and network points.

Brick-making facility: The establishment of a brick-making facility that will pave the streets of Masilonyana. The project fulfils two needs: job creation and infrastructure development. Employees who have been retrenched from the mine will be included in the project. In FY2010, the site for the brick-making facility was allocated by the local municipality and fenced off. A steering committee was elected and regular meetings were held. Employees are now being trained and the project has been very well received by the local community.

Williamson

Tanzania's 'Vision 2025' is in line with the United Nations' Millennium Development Goals for poverty alleviation, good governance and a competitive economy. This vision is the basis for all socio-economic developmental projects at Williamson.

There are 591 employees and 655 contractors at the Williamson mine, all living in mine accommodation with their families. All employees, contractors and their dependants are provided with power and potable water, as well as subsidised medical care from the mine hospital in Mwadui. The mine is surrounded by eight local villages accommodating approximately 30,000 people in the Kishapu district. This is a rural community that depends on farming and cash crop production for subsistence. The mine-owned and-operated Mwadui Hospital, with 48 employees including doctors and nurses, plays an important role in the community.

A selection of the many socio-economic projects supported by the Williamson mine are:

  • The Mwadui Primary School was supported through free primary school education to 375 learners. In terms of comparative performance, the Mwadui Primary School is one of the top schools in the country, emerging 1st in the local district of Kishapu (114 schools in total), 2nd in the Shinyanga region (1,055 schools in total) and 13th at National Level (14,376 schools in total).
  • Williamson also provided infrastructural and facility (power and water costs) support to three other schools in the area: a primary school and two secondary schools. In FY2010, the mine manufactured and distributed school desks to these schools and supported a school hostel project for women in the local villages to ensure they attend school.
  • The Mwadui hospital, owned and operated by the Williamson mine, is well equipped for malaria treatment and prophylaxis for employees and their families. Malaria is the single largest cause of morbidity in the area. See case study: The Mwadui Hospital at Williamson.
  • The mine provided infrastructural and facility (power and water costs) support to 12 places of worship in the community.
  • Road upgrades were made to the roads leading to the Songwa and Nhumbu communities.
  • Financial support was provided to the Tanzanian Women Miners Association.
  • Portable water is provided to the local community. The water is sampled once a day to ensure that it adheres to the World Health Organization guidelines for drinking water quality.
  • Emergency grazing land is provided by the mine to the surrounding villages in the dry season in the form of the natural reserve at Williamson.
  • The mine provides various small businesses with infrastructure such as asset impairment to enable them to carry out their trades such as car repair workshops, carpenter, bakery and printing business. Many small businesses are now self-sustainable and supply services to the mine and surrounding communities.
  • Williamson annually supports the Uhuru Torch Ceremonies. The Uhuru Torch, one of Tanzania's national symbols, represents freedom and light.
  • The mine also annually supports the workers day ceremonies in partnership with the local union.

GRI Indicators

Stakeholder engagement

EC8
Development and impact of infrastructure investments and services provided for public benefit

Society

Management approach

Aspect: Community

SO1
Nature, scope and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting