Petmin's Mining Charter Scorecard

PETMIN’S PERFORMANCE AGAINST THE MINING CHARTER SCORECARD

The following table illustrates the performance of Petmin’s Somkhele operation against the Mining Charther Scorecard for the financial year ending 30 June 2015

  Element Description Measure Mining
Charter Target
2014
Performance as at
30 June 2015
Traffic light
compliance
status
 
  Reporting Has the company reported the level of compliance with the Charter for the calendar year Documentary proof of receipt from the department is required Submit by March 2015 Reports were submitted to the DMR for the period  
  Ownership Minimum target for effective HDSA ownership Meaningful
economic
participation

26% 28.38%  
      Full shareholder
rights

26%

28.38%

BEE shareholding at Petmin includes BEE in institutional shareholding as per BBBEE Codes.

ADDITIONAL : 20%
SHAREHOLDING AT SOMKHELE

Agreement was reached with Somkhele community and employees to participate and share in the economic benefits of Somkhele through a fully funded equity transaction where the community and employees will acquire 20% of Somkhele for R350 million. The transaction is subject to shareholder approval on 09 November 2015.

   
  Housing and living conditions Conversion and upgrading of hostels to attain the occupancy rate of one person per room

% reduction of occupancy rate towards 2014 target 100% N/A No hostel accommodation provided at the operation  
    Conversion and upgrading of hostels into family unit % of conversion of hostels into family units 100% N/A Eighty percent (80%) of employees live within a 30km radius from the mine and commute to work with company-provided transport

A housing allowance is paid to all employees on the mine earning below a certain threshold per month to facilitate ownership and improvements to living conditions
 
  Procurement & Enterprise Development (1) Procurement spent from BEE entity Capital goods 40% 21%

Employees transport continued to be outsourced to local suppliers. Coal transportation is done by 100% BEE companies
 
      Services 70% 36%



The Joint Venture with the Mpukunyoni community accounts for 59% of Tendele Coal Mine's procurement spend, which includes 35% owned by Petmin. The Petmin share of the JV and management fees paid by Tendele Coal Mine were excluded in the procurement numbers.
 
      Consumable goods 50% 24%  
    Multinational supplier's contribution to the social fund. Annual spend on procurement from multinational suppliers 0.50% N/A

No procurement was sourced from multinationals in the year under review
N/A  
  (1) Procurement spend was compliant based on BEE code calculations. DMR audit results are based on equity ownership only.
Management is reviewing the procurement strategy to address this.
 
  Employment Equity Diversification of the workplace to reflect the country's demographics to attain competitiveness Top management (Board) 40% 50%
Target achieved
 
      Senior management
(EXCO)
40%

60%
Target achieved

 
      Middle
management
40% 33%
Development of employees is on track and ongoing
     (1)  
      Junior management 40% 64%
Development of employees is on track and ongoing
 
      Core and Critical
Skills
40% 85%
Target achieved
 
  Human
Resource
Development
(HRD)
  HRD expenditure
as percentage of
total annual payroll (excl. mandatory skills development levy)
5% 7%
Target achieved
 
  Mine
community
development
Conduct ethnographic
community
consultative and
collaborative
processes to delineate
community needs
analysis
Implement
approved
community
projects
 

Up to date implementation of projects

During the year under review, total spend on community development projects was R3 202 892.49,

Community engagement takes place through recognised structures of Mpukunyoni Traditional Authority, Mtubatuba Municipality, STAC community meetings and newsletters
and radio broadcasts

 
  Sustainable
development &
growth
Improvement of
the industry’s
environmental
management
Implementation of
approved EMPs
100%

A 100% compliance was achieved at the end of the financial year ending June 2015

Somkhele’s environmental management is in line with the
approved EMP and annual compliance assessments are conducted by independent consultants. Financial
provisions are provided in line with regulations

 
    Improvement of
the industry’s mine
health and safety
performance
Implementation of
the tripartite action
plan on health and
safety
  Constant and continuous improvement on fatality and injury
frequency rates.

On safety, the measures include:
LTIFR 0.20; Progressive Frequency Fatality Injury Rate 0; Reportable Injury Frequency Rate 0.10; Increase
in Lost Time Accidents by 2 (previous reporting year was 0);

No cases of Silicosis were reported and exposure limits of silica are below 0.01/mg/m3. Noise emitted
by equipment is below 110 Db and no deterioration of hearing loss greater than 10% amongst employees.
Tendele average is below 85Db. No reported noise-induced hearing loss
 
    Utilisation of South
African-based research
facilities for analysis
of samples across the
mining value chain
Percentage of
samples in South
African facilities
100% 100% of samples in SA facilities

Approximately 12,485 samples were analysed in South Africa in the year under review. These included 8,268
process control samples, 4,050 dispatch samples and 167 sublot samples of 25 export shipments.

No coal samples are done abroad
 
  Beneficiation Contribution
of mining
company towards
beneficiation (this
measure is effective
from 2012)
Additional
production
volume
contributory
to local value
addition beyond
the base-line
Section of the MPRDA (percentage above baseline) N/A No beneficiation as no materials were calcined during the period.  
     fully compliant    partially compliant    not compliant