SOCIAL AND LABOUR PLAN

1. SOCIAL AND LABOUR PLAN

2. Overview of the Presentation • DME Community Development Perspective • Best Practice • Procurement • Housing and Living Conditions • Conclusion

3. MINING AND COMMUNITY DEVELOPMENTDME PERSPECTIVE

4. OBJECTIVES • Foster constructive working relationships and alliance among communities, companies and Government • Build Capacity to address sustainable development • Improve opportunities for the sustainable development of the mining communities and regions during all phases of the mining cycle • Promote value adding potential of mine development in support of local and regional social and economic sustainable development efforts on funded priority projects in an area of operation.

5. RELATIONSHIP BETWEEN MINING AND COMMUNITY DEVELOPMENT Community Development is the process of • increasing the strength and effectiveness of communities • Improve the people’s quality of life • To enable people to participate in decision making in order to achieve greater long-term control over their lives Sustainable community development programmes are those • that contribute to the long-term strengthening of the community’s viability • The essential element is for the communities to survive beyond the orebody depletion • During the lifespan of the mine, the community can be supported by mining practices, spin offs that can convert one local asset to another local asset –extraction of a natural resource capital to sustainable human and social capital

6. ROLE OF THE MINING INDUSTRY • Mining industry can act as a catalyst for positive change in areas where there could be little opportunities for economic and social development • Adopt a strategy approach- development activities linked to long-term strategic objectives for the company and aligned with existing and future community development plans • Ensure consultation and participation • Work in partnership- private, government, community and other stakeholders bring different skills, resources shared interests and objectives to achieve intended goals

7. STRATEGY TO SUPPORT COMMUNITY DEVELOPMENT Mining companies should focus on • building expertise, share skills in trade, administration, management, finance, operating and maintaining mobile and fixed machinery • Promoting local supplier and contractor capability • Facilitate growth of all activities which are required for mining • The building of equipment , machinery and supply of good and services should be localised – Creation of jobs • Local agriculture development is also a key area for sustainable community development • Support and participate in infrastructure development and basic services – housing etc

8. COMMUNITY DEVELOPMENT IS GOOD FOR BUSINESS • If communities benefit greatly from a mining operation, they will have a significant role in seeing the mine operate succesfully and help the company to overcome obstacles that could adversely affect the mining operation • If the company contributes to the well-being and development of the community, the company will benefit in terms of the following: • Continuity of operation • Reputation • Resources • Reduced closure costs and rehabilitation • Productivity and local support • Local workforce SUCCESS SUCCESS SUCCESS

9. Local Economic Development (LED) Approach Requirements • Provide the social and economic background of the area of operation / sending area • Provide the activities of the area • Provide the needs of the area • Provide the key priority areas to be addressed • Provide the LED plan in line with the targeted areas of need • The projects should address and be aligned to the needs

10. Local Economic Development Purpose • Address an identified need within a community • Ultimate beneficiaries should be community and not an individual • Project should be sustainable • Project should have clear measurable deliverables • Project should have clear timeframes • Improve quality of life of people • Eradication of poverty • Reduction of unemployment • Sustainable job creation

11. Procurement Progression Plan Requirements • Give HDSA preferred supplier status • Identification of current level of procurement i.t.o. capital goods, consumables and services (Form T) • Commitment to a progression of procurement from HDSA over 3-5 Years i.t.o. capital goods, consumables and services (Plan) Acceptable or Credible Procurement • Credible level and type of procurement • Good mix / no bias towards the easy to do • Meaningful at local level • Non availability of local suppliers - Intervention

12. Housing and Living Conditions Employees • Current status of employees housing • Current status of hostels Communities • Current status of houses within the community • Municipality’s strategy to address housing Plan • Plan to promote homeownership to employees • Plan to upgrade hostels • Plans should integrate with themunicipality’s plan

13. BEST PRACTICE New Mining Right • Company identified the needs • Amongst other needs, the following were identified as priority: - housing - access to water - Electricity In response • Company built better houses for community members • Water was made available to the communities • Plans underway to supply electricity

14. OLD HOUSES

20. ROLE OF DME In line with the objectives: • Ensure participation of mining companies in IDP and related developmental forums • Participate in IDP Forums • Ensure mines and municipalities and communities work together • Ensure mines contribute to local economic development by addressing the set objectives • Assess LED projects to be implemented in line with the set standards • Liaise with both municipalities and mines in the acceptance of LED project where necessary • Where relevant, assist in the identification of LED projects • Monitor progress on identified projects

21. Conclusion • The MPRDA is a better piece of legislation than Minerals Act, 1991, • The MPRDA has rejuvenated the mining industry, • There is still a long way to go. • SA belongs to all who live in it.

22. THANK YOU