The scorecard below was issued by the Department of Minerals and Energy (DME), against which mining companies will be measured and need to report as part of the mineral rights conversion process. The scorecard has nine pillars, each of which is reported on in this annual report and will be reported on in all future annual financial reports.
| Scorecard compliance questions | Group compliance (yes or no) | SamQuarz and Springlake status and progress made |
|---|---|---|
| 1. Human resource development | ||
| Have employees been offered the opportunity to become functionally literate and numerate by 2009 and are they being trained? | Yes | It is Petmin's vision to enable all of its employees to achieve Adult Basic Eduction and Training (ABET) level 3 by December 2009. |
| Has the mining company implemented career paths for the HDSA employees, including skills development? | Yes | Critical to Petmin's human resources development is the development and retention of HDSA employees. The Company has developed a plan for a pool of individuals for fast tracking in a career progression plan. These programmes are in the fields of engineering, human resources, management training, safety and beneficiation. |
| Has the mining company developed systems through which empowerment groups can be monitored? | Not yet | Petmin aims to use mentorship as an intervention to assist and support the development of targeted and identified individual employees. A structured mentorship programme is being developed for employees at operational level. |
| 2. Employment equity | ||
| Has the mining company published its employment equity plan and reported annual progress? | Yes | Petmin's operations comply with the Department of Labour's requirements in respect of reporting and will align themselves with set targets. |
| Has the mining company established a plan to achieve a target for HDSA participation in management of 40% within five years and is it being implemented? | Yes | The Company's set target for employment equity is 50% within 5 years, which is higher than the 40% target set by the Mining Charter. SamQuarz's employment equity level is currently 50%. Springlake is currently on 33.3%. The Company has established a plan to ensure that the statutory targets are met by 2009 and that they are sustainable. |
| Has the mining company identified talent and is it being fast tracked? | Yes | This programme is currently being integrated into the Company's succession plan, and the Group's mentorship plan and will mainly focus on the following disciplines: engineering, human resources, training safety and procurement. |
| Has the mining company established a plan for female participation in mining of 10% within five years and is it implementing it? | Yes | The Company has set a target of 20% female participation for the Group, with women playing a key role in the decision-making processes of each of its operations. The participation of women in management is currently 13.6% and the percentage of female employees is currently 4.9%. Plans are in place to ensure that the 10% statutory target is reached by 2009, and reach the 20% target within 5 years. |
| 3. Migrant labour | ||
| Has the mining company formulated integrated development plans and is it co-operating with government in the implementation of these plans for communities where mining takes place and for major labour sending areas? Has the Company engaged local mine communities and labour-sending communities? | Not applicable | More than 98% of the Group's employees are sourced from South Africa. |
| 4. Mine community and rural development | ||
| Has the Company co-operated on its own and with government in formulating and implementing integrated development plans for communities where mining takes place and for major labour-sending areas? Has the Company made an effort to engage the local mine community and communities in major labour-sending areas? | Yes | Addressing critical social challenges, and ensuring that the socio-economic development and sustainability of communities where our operations are based, are cornerstones of our mining strategy. Both SamQuarz and Springlake participate in local development forums. Integrated Development Programme (IDP) projects have been identified and integrated into the Company's Social and Labour Plans. |
| 5. Housing and living conditions | ||
| For Company-provided housing, has the mine established measures for improving the standard of housing including the upgrading of hostels, the conversion of hostels to family accommodation and promoted home ownership for employees? | N/A | Although hostels do not exist at any of Petmin's operations, the Provident Fund and Standard Bank have entered into an agreement with Springlake to make funds available to promote home ownership. |
| For Company-provided housing, has the mine established measures for improving the nutrition of mine employees? | N/A | Although the Company does not provide housing to mine employees, it provides food to employees who exceed a nine-hour shift. |
| 6. Procurement | ||
| Has the mining company given HDSAs preferred supplier status? | Yes | The Company has a preferred supplier policy for BEE companies. The operations are in the process of rating all current suppliers and a procurement procedure is being finalised for new entrants. |
| Has the mining company identified the current level of procurement from HDSA companies in terms of capital goods, consumables and services? | Yes | As stated earlier, this is currently work in progress. Suppliers are currently in the process of formally providing their BEE credentials. The Company is following a process to achieve targets for procurement by 2009. |
| Has the mining company indicated a commitment to a progression of procurement from HDSA companies over a three-to-five year time frame, and to what extent has this been implemented? | Yes | This is actively pursued. The Company is committed to a black empowered supplier target of 25% of the Company's operational procurement spend by 2009. |
| 7. Ownership and joint ventures | ||
| Has the mining company achieved HDSA participation in terms of ownership of equity or attributable units of production of 15% in HDSA hands within five years and 26% in 10 years? | Yes | Petmin, at holding company level, has exceeded the targets of 15% set for 2009 and even the 26% set for 2014. The Company is 39.95% BEE owned as at 1 December 2006. |
| 8. Beneficiation | ||
| Has the mining company identified its current levels of beneficiation? | Yes | 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 silica field. |
| Has the Company established its baseline level of beneficiation and indicated the extent that this will have to be grown in order to qualify for offsets? | Yes | Investigations are ongoing in this regard. |
| 9. Reporting | ||
| Has the Company reported on an annual basis its progress towards achieving its commitments in its annual report? | Yes | Progress is reported in the current financial year and will be reported annually from now on. |
© 2008 Petmin Limited
Critical to Petmin's human resources development is the development and retention of HDSA employees