All Petmin operations have Social and Labour Plans (SLPs) which provide 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 realise their potential.
| Operation | Number of employees |
|---|---|
| SamQuarz | 314 |
| Somkhele | 338 |
| Other | 10 |
| Total | 663 |
Adult Basic Education and Training (ABET) is available at the SamQuarz and Somkhele operations; 77 people participated in ABET during 2010.
Somkhele encourages ABET participation by paying community members a travel subsidy for every class they attend and all learners (including employees) receive a monetary award upon completion of any ABET level.
34 learners at SamQuarz registered for classes ranging from Levels 1 to 4. Ten of these candidates passed.
ABET is run by an accredited service provider, and awareness campaigns concentrating on the benefits of ABET and sharing positive experiences with members of Petmin’s workforce are conducted regularly.
One of the ways in which employees can develop is through learnership programmes for artisans which combine study with practical training. Four employees are being trained at SamQuarz, three as electricians and one as a fitter, and three employees are on engineering learnerships at Somkhele.
Internships give graduates the opportunity to gain hands-on experience. Somkhele had five people in its internship programmes in 2010, in the fields of metallurgy, civil engineering, electrical engineering, quantity surveying and health and safety. During the year, SamQuarz also achieved its intention of appointing one intern – in metallurgy, and started a programme to enable him to complete the practical requirements for obtaining his diploma.
In 2009, five employees and two community members were awarded bursaries. Sadly however in 2010 at SamQuarz, no bursary applications were received. Since education is an essential component of community upliftment, the mine will continue to work with the surrounding schools to encourage learners to improve their results.
SamQuarz will continue with its support for an initiative by the Nkangala Region’s Department of Education which offers Grade 12 learners weekend classes, primarily in mathematics and science. In FY2010, SamQuarz contributed approximately R165,000 to this drive.
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, an engineering foreman and a buyer have completed their development programmes. Two process controllers and a plant foreman were recently selected for progression in the Company and they have started their 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:
In 2010, women occupied 14% of mining and process-related positions, and made up 19% of the total workforce at Somkhele. At SamQuarz, women comprised 10% of the total staff complement and 9% of mining positions.
With respect to the second level of career planning (for management positions), Somkhele has identified four employees for management training and they are all now on five-year development programmes.
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 set 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 had HDSAs filling 77% of its skilled posts in 2010. Somkhele has HDSAs making up 43% of its management staff. The internal target is 50% by 2012.
| Category | Total management | Total number of HDSAs | HDSAs in management | Target |
|---|---|---|---|---|
| Senior management | 5 | 2 | 40% | 40% |
| Professionally qualified, middle management | 4 | 2 | 50% | 40% |
| Skilled, qualified, junior management | 47 | 36 | 77% | 40% |
| Category | Total management | Total number of HDSAs | HDSAs in management | Target |
|---|---|---|---|---|
| Senior management | 5 | 2 | 40% | 40% |
| Professionally qualified, middle management | 7 | 3 | 43% | 40% |
| Skilled, qualified, junior management | 9 | 4 | 44% | 40% |
SamQuarz continues to be committed to supporting communities around the mine. Having recognised that farming is a key economic activity in the area around its mining operation, the mine committed to a cross-industry farming project, Mphiwe Siyalima – a business aimed at developing new emerging HDSA entrants into commercial farmers and uplifting the surrounding communities. The project was officially launched on 29 September 2010 by the Deputy Minister of Rural Development and Land Reform, Dr Joe Phaahla, at Leeuwfontein farm near Bronkhorstspruit.
Mphiwe Siyalima has been a year in the making and is the result of a successful collaboration between SamQuarz; the Department of Rural Development and Land Reform (DRDLR); McCain Foods; Gift Mafuleka, an emerging commercial farmer; and Tim Hedges, Mafuleka’s sponsor and mentor.
SamQuarz views the project as a way of addressing enterprise development in the area and ensuring wider employment opportunities and training for the local community and women in particular. The farm currently employs 11 people and has the potential to provide 40 regular jobs.
Somkhele continues to engage and strengthen its relationship with its community to ensure the long-term sustainability of the operation. Structured meetings were held every month with the Mpukunyoni Mining Committee, which comprises representatives from the mine and the Mpukunyoni Traditional Authority. Weekly meetings were also held with Indunas (traditional leaders) and the community liaison officers for the different mining areas. The mine continues to liaise with the Inkosi appointed by the Royal House, on all key community matters.
A key focus area for the mine is creating employment opportunities and boosting economic development opportunities for the local community. Living conditions in the community have improved through the building of new houses in Area 1 and through the provision of water supply facilities, the completion of an electrical supply network, new community borehole connections and the development of road access into the area.
Community development at Somkhele has not been confined to housing and infrastructure – the mine has built a training centre and a sports field, supported local soccer teams in the development of sporting activities in the area, facilitated community ABET training and made several donations of books and blankets to the community.
Plans for the near future include the construction of a new dam and a new hall, the provision of a mobile clinic, and the implementation of a wellness programme for employees and community members.
Petmin has a preferred supplier policy for companies with black economic empowerment (BEE) ownership of at least 26%. The Group has set itself the target that BEE companies should be the recipients of a minimum of 25% of its procurement expenditure by 2012.
In FY2010, SamQuarz spent approximately R134 million on procurement, of which R33 million (25%) was with BEE companies.
Somkhele's expenditure on procurement during the year amounted to R162 million, of which 85% was for services and the balance for capital goods and consumables and spares. A total of R28.2 million (17.3%) was with BEE companies.
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 of 28.3%, has already exceeded the target for 2014.
© 2009 Petmin Limited
