All Petmin operations have a Social and Labour Plan (SLP) which provides detailed plans for fulfilling the requirements of the Mining Charter.
Petmin’s progress to date in terms of meeting the various criteria set by the Mining Scorecard is set out below.
Petmin strives to ensure that all of its employees have the opportunity for training and development in order that they may realize their potential.
| Operation | Number of employees |
|---|---|
| SamQuarz | 261 |
| Somkhele | 379 |
| Other | 12 |
| Total | 652 |
Adult Basic Education and Training (ABET) is available at the SamQuarz and Somkhele operations. In the past two years at SamQuarz, 43 employees have passed their ABET courses. A local service provider was contracted to start ABET training for employees and members of the community at Somkhele in August 2008. Currently 30 learners are enrolled on the ABET programme at Somkhele, 17 at ABET Level one and 13 at ABET Level 2.
One of the ways in which employees can be developed is through learnership programmes for artisans which combine study with practical training. Four employees at SamQuarz are being trained - three as electricians and one as a fitter - at the mine while also studying at the Colliery Training Centre in Witbank.
Internships give graduates the opportunity to gain hands-on experience. Somkhele recruited two graduates during 2009 and plans to recruit two more graduates in 2010 in civil and process engineering disciplines. A process to recruit interns in the geological and engineering disciplines will start at SamQuarz. The intention is that at least one intern is enrolled at this operation during 2010.
Bursaries give the operations the opportunity to assist youngsters who wish to study at a tertiary institution in a field with application to the mining industry. At Somkhele, bursaries are awarded to employees as well as to community members. In 2009, five employees and two community members were awarded bursaries. The intention is to award the same number of bursaries in 2010.
There were no bursaries awarded at SamQuarz in 2009 but the intention is to award a bursary to one student studying metallurgy in January 2010. The mine plans to encourage pupils in surrounding schools to improve their results in mathematics and science so that they become eligible for the company's bursary scheme.
Petmin's career development and succession planning provides for employees to be chosen for development and advancement based on core competency requirements. A career path is then planned for the individuals selected. At SamQuarz, three process controllers, one plant foreman and one buyer are on development programmes.
The career progression plan at Somkhele works on two levels: the first concentrates on the development of unskilled and semi-skilled workers; the second focuses on the movement of skilled and professional employees into management positions.
Career development for unskilled and semi-skilled employees is mainly aimed at developing the skills of women to take up key operational positions as:
A total of 56 women are currently on career paths at the mine. After undergoing a Dover test (which tests hand-eye co-ordination and reaction time), the employee progresses to safety training and the correct safety practices, practical training on specific machinery follows and, after that, she progresses from handling light to heavy machinery. The programme is designed in such a way that the employee is tested at each level and, if successful, is issued with the appropriate certificate of competency. In time it is expected that employees with talent will move from operating dump truck to front-end loaders, and then on to excavators and dozers.
With respect to the second level of career planning (for management positions), Somkhele has identified four employees for development and is developing specific career paths for them over a five-year period.
Mentoring forms an integral part of employees' career development. At SamQuarz, mentoring is well established with nine employees, all HDSAs, currently on the programme, including those identified for career path planning and all of those on learnerships.
All employees on career paths as well those on learnerships at Somkhele are mentored.
The Mining Charter sets the target of historically disadvantaged South Africans (HDSAs) comprising 40% of management by 2009. SamQuarz exceeds this with HDSAs occupying 50% of management positions and this operation also has HDSAs filling 67% of its skilled posts. Currently Somkhele has HDSAs making up 38% of its management staff. The target is 50% by 2012.
With respect to women in mining, the Mining Charter states that women should form 10% of employees in mining positions by 2009. Once again, SamQuarz has exceeded the target. By year-end, women at this operation occupied 13.2% of such positions (FY08: 9.22%), working as apprentices, weighbridge controllers, quality controllers, plant operators and box operators among other occupations. Overall, women made up 18% of the workforce at SamQuarz.
Somkhele exceeded the Mining Charter target in FY08 and improved on this in FY09 with women comprising 15% (FY08: 13%) of the total staff complement and filling 11% (FY08: 10.0%) of all mining posts. They are to be found in a variety of jobs as follows: screening plant operator, front-end loader operator, front-end loader supervisor, dump truck operator, dump truck driver, plant operator, diesel assistant, tally lady and sampler.
SamQuarz is in the process of establishing a forum comprising the mine, the municipality and community members. It has also started meeting with adjacent mines with a view to investigating the formation of partnerships for community projects.
SamQuarz formed a partnership with McCain Foods to start a commercial farming project - the Bossemanskraal project - as a local economic development project. The initiative was officially launched in January 2008 and approximately R1 million was contributed to this project, of which R287 000 was spent during FY09. Unfortunately, the owner of the farm experienced financial difficulties and the farm had to be sold. The mine has not given up on the concept, however, and is in discussions with McCain and the municipality with the intention of starting a similar project in the Delmas area. As with Bossemanskraal, the new project would have the following aims:
Somkhele continues to interact with the surrounding communities through regular meetings of the Mpukunyoni Mining Committee which comprises representatives from the mine and the Mpukunyoni Tribal Authority.
Through Somkhele's housing development project, a total of 124 families have received new houses of which, 116 have been built in the Mpukunyoni area. The total number of people that have benefited from this project is 983 community members.
All the houses built in Area 1 and Area 2 were provided with water. Progress was made with the development of a road and a new community dam for Area 1. The new electrical supply network is under way with new lines in place at Area 2. Once state power utility Eskom has given its approval, the new lines in Area 2 will be activated and new lines in Area 1 will be completed.
A library is being built which should be ready, with the first 1,000 books on the shelves, during the second quarter of the 2010 financial year.
The following are planned for the next two years:
The mine also plans to assist in developing skills among community members, starting in the 2010 financial year. People with welding skills will be organised to train others. A minimum of 20 community members will be enrolled in the first six months and a further 20 in the second half of the year. The intention is to manufacture tables which will be donated to the local schools. In the process people will gain skills and experience that they can use to generate income when the project comes to an end.
Petmin has a preferred supplier policy for companies with black economic empowerment (BEE) ownership of between 25% and 50% (empowering company). The target set for the Group is 25% spend by empowering companies by 2012.
In FY09, SamQuarz spent R174.9 million on procurement. The top 10 suppliers accounted for R114.2 million (65%) of the expenditure. BEE procurement spend, based on pro rata shareholding by BEE shareholders was 13.5% to 30 June 2009.
Somkhele's expenditure on procurement during the year under review amounted to R328.2 million. Total procurement spend by BEE suppliers (calculations based on pro rata shareholding) was 12.5%.
| SamQuarz | BEE % |
|---|---|
| Capital goods | - |
| Services | 17.4 |
| Consumables and spares | 8.8 |
| Somkhele | BEE % |
| Capital goods | 17.7 |
| Services | 10.3 |
| Consumables, spares and other | - |
| Total | 12.5 |
Hostel accommodation is not provided at any of the Group’s operations because Petmin is committed to employing people from the communities surrounding its operations and because it believes in encouraging employees to buy their own homes. SamQuarz facilitates applications for home loans through financial institutions and these are then channelled through the provident fund to provide security. It also administers the deduction of instalments and payments to these financial institutions. The Group is reviewing a housing policy for all its operations and will report on progress in due course.
The mining charter stipulates that 26% of the company’s equity should be owned by HDSAs by 2014. Petmin, with a BEE shareholding maintained at 33%, has already exceeded the target for 2014.
© 2009 Petmin Limited
