The progress that Petmin has made to date in terms of meeting the various criteria set by the Mining Scorecard is discussed below. This discussion excludes Somkhele because the mine has only recently come into production. Contractors were on site prior to this. Petmin will report on Somkhele, measured against the Mining Scorecard, from FY2008 onwards. Nevertheless, it should be noted that this operation has made strides with respect to certain elements of the Mining Scorecard and a separate account of this appears at the end of this section.
Petmin is committed to the development and training of its employees.
SamQuarz has a dedicated skills development facilitator who manages the training and development of employees. The managing director chairs quarterly training meetings at this operation while training is one of the topics that is discussed at the monthly meetings that are held with the National Union of Mineworkers (NUM).
Springlake Colliery has a full-time training officer who is responsible for on-the-job training, mandatory training in terms of legislation and the scheduling of learnerships. Training requirements and progress made is discussed monthly with the NUM branch committee. The services of a skills development facilitator will be outsourced in the new financial year.
Petmin regards employees as being literate if they have attained Adult Basic Education and Training (ABET) Level 4 and its goal is to have all employees reach this target by December 2009.
SamQuarz started its formal ABET programme in February 2006 with a Johannesburg company, Numeracy Academy, providing computer-based ABET training to employees on a part-time basis at a centre in Delmas. An on-site trainer is present during these sessions, and 13 candidates obtained their certificates in early June 2007. The mine aims to have 55 employees undergoing ABET training in FY2008.
In June 2007, SamQuarz completed a review of literacy levels across the company with all contractors’ employees included. To keep ABET targets on track the skills development facilitator will hold monthly meetings with candidates and with the training provider from the start of FY2008.
Difficulties were experienced in terms of making progress with ABET at Springlake in FY2007. These have included finding recognised training providers within the vicinity of the mine, the willingness of employees to attend training before and after working hours and arranging public transport to outside venues. Management is considering options to overcome these obstacles and to resume ABET in FY2008.
To date Springlake has provided ABET to a total of 40 employees and anticipates providing ABET to an additional 30 employees by end of FY2008. Springlake is currently in consultation with a local service provider with a view to outsourcing ABET facilitation.
Springlake has made significant progress in developing historically disadvantaged South African (HDSA) employees through learnerships. Currently, seven employees are being trained as millwrights through the Colliery Training College in Witbank. Four students in engineering studies will also be recruited in January 2008.
SamQuarz has formulated a plan to develop employees through learnership programmes. Starting in FY2008, four employees will be trained – two as electricians and two as fitters and turners – at the Colliery Training Centre in Witbank. SamQuarz is confident that its first learnership intake will qualify by the end of 2009.
Petmin has a study assistance policy in place and employees are encouraged to apply for study grants, including for tertiary education and short courses. The individual’s job requirements and the development plan for the operation concerned are the chief criteria that are applied when applications are considered. No bursaries were allocated in FY2007.
Petmin is committed to ensuring that employees are given the opportunities to acquire the level of competency necessary for their jobs and to enable them to develop their skills in order to advance their careers. The Group’s career development plan makes provision for employees to be selected for development based on core competency requirements. A specific career path is then developed for each individual selected.
At Springlake in FY2007, 33 employees obtained certificates as follows: 10 National Railway Regulators certificates for loco drivers and shunters; nine MQA Blasting Assistant certificates; 10 MQA Competent A and Competent B certificates; one HAZCHE Certificate of Competency; and three Medium Voltage Switching Authority certificates. In addition, nine employees were trained as safety representatives while one received the National Safety Diploma through the Chamber of Mines.
During FY2007, 118 employees at SamQuarz went on a number of legal and safety training courses, 64 employees underwent operations management and three engineering management training. A further two employees were trained: one in the human resources discipline and the other in supervisory skills.
SamQuarz will have trained 65 employees in portable skills by the end of FY2008.
Springlake will start this training in the first half of FY2008 and anticipates training 10 applicants during FY2008.
Petmin uses mentorship as an intervention to assist and support the development of targeted and identified individual employees.
At Springlake the engineering manager is mentoring three engineering graduates as they prepare to take the Government Certificate of Competency as well coaching engineering learners. The human resources manger is mentoring a trainee safety officer and a trainee training officer while the surveyor is assisting a trainee surveyor.
There are seven mentors in place at SamQuarz: the managing director, the operations manager, the engineering manager, the technical manager, the production superintendent, the chief safety officer and the skills development facilitator. Eight employees were mentored during FY2007, all people with potential to progress in their careers.
The mentorship programme moved outside SamQuarz in the year under review as the managing director became actively involved in assisting an empowerment group called Saperi Logistics. This group specialises in marketing the SamQuarz’s products.
Petmin complies with the Department of Labour in terms of reporting annual progress in terms of employment equity.
The Mining Charter stipulates that there should be 40% HDSA participation in management by 2009 and the Group has set itself the target of 50% within this time frame.
SamQuarz has already met this target as 50% of its management positions are currently filled by HDSAs.
Springlake has achieved 25% and has plans in place to reach 40% by 2009.
Petmin reviews the progress in terms of HDSAs in other categories (non-management positions) on a quarterly basis. Strict recruitment and selection criteria are followed to fill vacant positions, with HDSA candidates selected wherever possible.
In FY2007, HDSAs (excluding white females) formed 85% of the workforce at Springlake and 93% of the workforce at SamQuarz.
The Mining Charter states that women should form 10% of the workforce by 2009. Petmin has plans in place to reach this and has set itself the target of achieving 20% by 2011. At the end of FY2007, women formed 6.2% of Petmin’s employees at its SamQuarz and Springlake operations.
Springlake intends to meet its targets by selectively recruiting women to occupy the positions of learner miners, drivers, weighbridge operators and conveyor belt operators. Currently, women make up 2.07% of the workforce.
At SamQuarz only women are considered for positions in the Quality Department while women drivers are being actively sought. At present women make up 6.2% of the workforce.
Petmin’s operations participate in local development forums and integrated development programme (IDP) projects have been identified and integrated into the SLP for each company.
SamQuarz and McCain Foods Limited, a privately owned multi-national leader in the frozen food industry, have jointly started a project that will see the development of a vegetable farm in the Delmas area. It is anticipated that about 57 permanent jobs and 80 to 100 seasonable jobs will be created for the surrounding community. The aim is that a BEE grouping will own the farm within five years. During this time, SamQuarz will facilitate job creation, skills development (including business skills development), technology transfer and overall education in relation to all facets of mixed agriculture.
SamQuarz will invest R1.4 million during the five-year period which will be spent on housing for farmworkers, fencing, the upgrading of infrastructure and agricultural equipment.
Springlake donated 20 hectares of land to the Dannhauser Municipality to facilitate the development of low-cost housing for the Ramaphosa community. The government is currently busy with the environmental impact study of the area.
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. The Group 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 financial institutions.
Petmin has a preferred supplier policy for HDSA companies (that is, companies with black ownership of between 25% and 50%) and the operations have finalised the HDSA status of their major suppliers.
In FY2007, SamQuarz’s percentage of overall purchases from BEE suppliers increased to 11.5% from 8.9% in FY2006. At Springlake the figure for FY2007 for suppliers with a BEE shareholding of greater than 25% was 9.74%.
All the operations have plans in place to meet the BEE supplier target of 25% by 2009.
| Operation | Capital goods | Services | Consumables and spares |
|---|---|---|---|
| SamQuarz | 9.6 | 9.8 | 14.7 |
| Springlake | <1.0 | 1.0 | 16.3 |
The HDSA shareholding in Petmin is 35.7%, thus exceeding the Mining Scorecard targets of 15% for 2009 and 26% for 2014. This is as at 28 March 2008, and held through the Anchor BEE Consortium which comprises eight shareholder groups as set out in the table below.
| Entity | Background |
|---|---|
| People’s Organisation for Police and Prisons Civil Rights (Popcru) | Held via a wholly owned subsidiary, Popcru Mining Investments (Pty) Ltd; more than 80,000 HDSA members |
| Lebone Resources (Pty) Ltd | A women’s empowerment company controlled by Ms Lebo Mogotsi |
| Dark Capital (Pty) Ltd | Previously Swanvest 311 (Pty) Ltd, this empowerment company, controlled by Dark Capital, and represented by Mr. Alwyn Martin on the Petmin Board |
| Umsobomvu (Pty) Ltd | Owned by Mr Lungani Kunene, an entrepreneur with various other mining interests |
| Little Swift Investments 73(Pty) Ltd | An empowerment company – the shareholders are leading BEE professionals and entrepreneurs, including Ms Lebo Mogotsi |
| Zondwa Resources (Pty) Ltd | The controlling shareholder is Mr Mazwi Yako, an entrepreneur with investments in various mining assets |
| Furniture Bargaining Council | Represented by over 20, 000 employees and employers in the furniture manufacturing industry. |
| Decorum Capital Partners (Pty) Ltd | Fund manager for the New Africa Mining Fund (NAMF); Mr Arthur Mashiatshidi holds a majority stake |
Petmin is currently investigating the viability of various beneficiation projects. In terms of current operations, the most viable projects identified are in the coal sector, with limited scope being identified in the field of silica.
Petmin has been reporting in its annual report regarding progress on Mining Scorecard compliance and will continue to do so.
During the four years leading up to the construction of the mine at Somkhele, from 2002 to 2005, extensive consultations were held with the Mpukunyoni Tribal Authority through the Mpukunyoni Mining Committee. This has continued and there are formal communication structures in place. The community has benefited from the following developments:
The 216 people employed did not have the skills required for their jobs at the outset – all have been trained and continue to receive training.
Opencast mining at Somkhele to be carried out by a joint venture, 26% is held by the Mpukunyoni Development Company (MDC) and 74% by a mining contractor. The shares of MDC are held by the Mpukunyoni Development Trust, the beneficiaries of which are the members of the Mpukunyoni community. The contract for transporting anthracite to the Richards Bay Coal Terminal has been awarded to a 100% BEE company which will enter into a joint venture agreement with MDC in which MDC will have a 26% holding.
© 2008 Petmin Limited
The current shareholding by HDSAs has increased from 3% in February 2004 to a commendable 43.54%
