Community

In recognising the fundamental rights and responsibilities that the Company has towards the sustainable existence of the communities in which it operates, Petra embraces the underlying principle of sustainability. 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 are located. Petra is committed to identifying sustainable projects in conjunction with local communities themselves, as well as local authorities. The Group is committed to taking a holistic and structured approach to corporate social responsibility (CSR), and to use training and skills upliftment as a complementary tool to improve the lives of employees and community members alike.

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

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 Physically Disabled: a non-governmental organisation 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 School's 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

The Koffiefontein 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.

Kimberley Underground

The Kimberley Underground mine sponsored 20 learners for the year at the local Du Toitspan primary school. Uniforms, stationery and sports equipment were also provided.

The mine has also been involved with the establishment of 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.

Sedibeng

Sedibeng mine 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.

Local economic development in South Africa

Petra takes very seriously the LED projects in South Africa that are included in the Company's SLPs and that have been identified and developed in consultation with the local community and the DMR. 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:

• 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 SMME, supplying the local and provincial market thus creating jobs in the area. Twenty five employment opportunities have been identified in addition to the 10 beneficiaries involved.
• 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.
• The Refilwe waste water reticulation system upgrade is located in the Nokeng Tsa Taemane municipality.
• The development of the 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.
• 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 created jobs.

Koffiefontein

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

• Accountancy support was provided to the Kholomba Transport SMME and the mine committed to cater for this for a year. The Company also mentors the owner in financial management as well as on growing the business. Additional mentoring will be provided in other business related areas and the SMME and its employees will be included in all relevant training that the mine provides its employees.
• A bulk brick manufacturing site has been established, a water pipeline laid and brick manufacturing equipment procured. A workshop was held on drawing up a business plan, tendering and concluding contracts to ensure the SMMEs in the area had an equal opportunity in the tenders that were advertised.
• A crusher has been procured for the aggregrate plant project and the designing of the earthworks and plant have been contracted to an engineering consulting firm. A beneficiary SMME to be mentored is yet to be selected and the tender will be advertised in February or March 2010.
• Financial support for the feasibility study and marketing plan of the wine and diamond route.
• Petra was one of the donors that provided capital for the bottling and distillery project which is now fully established and operational.

Kimberley Underground

The mine has worked closely with the Sol Plaatje and Frans Baard municipalities to ensure that the mine's projects are closely aligned with their Integrated Development Plans (IDPs).

• Infrastructure development project, Aurocon Tiling.
• In the manufacturing sector, Lihp Design Cosmetics.

Helam

Three projects were identified in the Kgetleng municipality as follows:

• The Entrepreneurship Development Project is being carried out in five phases creating jobs for a total of 35 beneficiaries (including 10 youths) who are being trained for the implementation of farming, milling, landfill and waste management projects in the community.
• The Kgetleng Farming and Milling LED Project team will be established 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 will also 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:

• The development of a food garden for poverty alleviation.
• The establishment of an abattoir, as part of a regional small and medium sized business development.

Star

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

• The development of a Business Development Centre where local SMMEs can receive both administrative and management support. A key objective here is to fulfill the real need of installing and maintaining office equipment and network points. Much of the work undertaken in 2009 involved meeting with stakeholders to understand their needs. In the current, second phase of the project in 2010 the actual facility is being set up.
• 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.

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 618 employees and 600 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 free medical care from the mine hospital, Mwadui. The mine is surrounded by six 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 only hospital in the district is the mine owned and operated Mwadui Hospital that has 48 employees including doctors and nurses.

The Williamson mine supports the following socio-economic projects:

• The Mwadui primary school was supported through free primary school education to 480 learners. The project also provided infrastructure and facility (power and water costs) support to three other schools in the area, a primary school and two secondary schools. In the year under review, 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 for morbidity in the area.
• The mine provided infrastructural and facility (power and water costs) support to 12 places of worship in the community.
• An ongoing seedling project which raises seedlings and distributes them to the local communities through various tree planting ceremonies.
• Potable water was provided to the local community.
• Emergency grazing land is provided by the mine to the surrounding villages in the dry season.
• The last natural forest that occupies a large part of the Kishapu district remains within Williamson's mining boundaries and under its protection. This forest is a source of domestic energy as the local community use wood for cooking, as well as industrial raw materials such as honey and beeswax. Williamson mine provides the local community with access to the forest annually to prune and harvest wood with the aim of maintaining the forest resources to avoid depletion. There are no costs to this initiative as the community harvest and the mine coordinates and oversees the process.
• The mine provides various small businesses with infrastructure such as asset impairment to enable them to carry out their trades - car repair workshops, carpenter, bakery, printing business, etc. Many small businesses are now self-sustainable and supply services to the mine, local 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.

In this section:

1. Health and safety
2. HIV/AIDS and malaria
3. Employment and human rights
4. Community
5. Case studies