Corporate Responsibility Report 2007

Corporate Responsibility Report 2007

Socio-economic development

Key features

  • Group Corporate Social Affairs Policy adopted during the year
  • R31.8 million allocated to socioeconomic development projects in South Africa during FY2007
  • An estimated 14,195 direct beneficiaries of Implats’ SED efforts in South Africa
  • Identification of projects in local communities and labour-sending areas in line with the company’s Social and Labour plans

Policy and governance

ICDT expenditure
in FY2007 (excluding administration costs)

Implats’ socio-economic development (SED) activities in South Africa are managed under the auspices of the Impala Community Development Trust (ICDT), which was established by the group in 1998. The ICDT’s operation is underpinned by the philosophy that it should be the facilitator of social development, rather than the sole sponsor of activities, and that it should encourage the development of meaningful and sustainable interventions. The ICDT has very specifically adopted a collaborative approach – with communities that ’own’ the projects, with other donors (in order to attract more investment), with government (to ensure the integration into broader, longer-term plans), with non-governmental organisations (NGOs), community-based organisations (CBOs) and others – to ensure on-the-ground support for projects.

The group’s Corporate Social Affairs Policy (PDF - 397KB) was adopted during the year and is aimed specifically at the social and economic development of communities in which the group operates and the areas from which the group’s employees are drawn. Through our activities, we work to ensure that it makes a positive contribution to poverty alleviation, community development (infrastructure development and empowerment of community structures) and the empowerment of government to facilitate improved service delivery and local economic development. While we aim to empower a broad range of stakeholders, it does place a specific emphasis on black youth, women and people living with disabilities.

The ICDT aims to:

  • align our social upliftment activities with the goals and objectives of local, provincial and national government development programmes;
  • build capacity within community structures (co-operatives, NGOs and CBOs) operating in areas of interest; and
  • encourage self-reliance and minimise dependence on welfare by targeted communities.

Projects submitted to the ICDT are evaluated internally prior to consideration by the ICDT board of trustees. Group CEO David Brown is the chairman of the board of trustees.

Planning for the ICDT is carried out in line with the group’s strategic planning process, with budgets outlined on a five-year time horizon. Social development officers based at the operations identify possible projects or review the various applications they receive and submit these for approval. Projects are classified as high-, medium- or low-risk interventions. High-risk projects require a service level agreement to ensure delivery on planned objectives. An independent service provider, funded by the ICDT, undertakes an assessment of the impact of the project as well as the utilisation of the funds.

Spending per sector in FY2007
Empowerment of community structuresR5,189,541
Support for government infrastructureR3,958,777
Sports developmentR2,701,309
Environment developmentR1,111,656
Safety and securityR1,022,275

The ICDT has eight areas of focus, namely:

  • Education, which includes the teaching of mathematics, physical science and English at teacher and learner level; post-matric mathematics and physical science; capacity-building and school governance; the development of learning support materials and equipment; and infrastructural development.
  • Health, which includes primary and secondary health care; TB and HIV/AIDS home-based care.
  • Welfare, which includes orphanages and day-care support.
  • Environment, which includes the provision of water and sanitation; environmental awareness campaigns; community environmental rehabilitation projects and public participation initiatives.
  • Safety and security, including support for Business Against Crime and infrastructure development for the South African Police Services (SAPS) training as well as development.
  • Supporting income-generating projects through the establishment of co-operatives, facilitating financial and other support for co-operatives, NGOs, CBOs, capacity-building programmes and business linkage centres (in Springs).
  • Sports development, which includes support for soccer, rugby, netball, cricket and athletics at local level.
  • Government support. This includes assistance with the establishment of district and local municipalities in the areas where Implats operates to enhance infrastructure delivery and local economic development.

Performance during FY2007

A specific goal of the ICDT was to increase significantly our socio-economic development spending.

During FY2007, we spent R31.8 million on SED projects in South Africa. (FY2006: R14.2 million). The figure includes an administration fee of R3.7 million to manage the funds. Moreover, this figure is believed to be an under-reporting of the total investment made by Implats in its communities as it excludes all ‘in kind’ donations. ‘In kind’ donations refers to either manhours or materials from our operations.

During FY2007, direct and indirect beneficiaries of our corporate social investment expenditure numbered 14,195 and 11,599 respectively. Of these beneficiaries 410 (148 direct; 262 indirect) were people living with disabilities.

The following discussion illustrates a number of key projects undertaken by the group in the various areas of operation.

The ICDT has engaged the Institute for Corporate Social Investment (ICSI) to verify and track all funding to service providers and beneficiaries. In this way the ICDT is able to ensure that the desired socio-economic development goals are achieved. At a cost of around 3% of the ICDT budget (around R3.7 million), the ICSI has been engaged to:

  • effectively monitor and manage projects;
  • enhance the ability to identify the potential misuse of funds;
  • ensure the ability to support projects in a non-financial manner (through skills and capacity development); and
  • facilitate skills transfer.

During the year, the trust deeds for the Impala Bafokeng Trust (set up in 2006 as part of the Implats/RBH BEE transaction) signed and lodged with the relevant authorities. Trustees have been appointed and it is expected that the Trust will begin operating by September 2007.

In Zimbabwe, corporate social investment expenditure is focused primarily in the areas of education and health. Zimplats spent in the region of $207,000 (R1.5 million) in FY2007; and Mimosa some $179,000 (R1.3 million).

Spending per area in FY2007
Impala RustenburgR11,749,538
Head OfficeR9,166,071
Impala SpringsR3,674,686
Labour-sending areas – 
North West ProvinceR1,099,190
Labour-sending areas outside 
North West ProvinceR1,023,070

Annual ICDT expenditure per area – FY2003 to FY2007 (R million)
Impala Rustenburg67.27.89.516.6
Impala Springs2.42.71.933.7
Head office1.
Group total10.912.414.814.731.9

ICDT expenditure in FY2007 (excluding administration costs)

ICDT expenditure in FY2007 (excluding administration costs)

ICDT expenditure (South Africa) (Rm)

ICDT expenditure (South Africa) (Rm)

South Africa

Ukuqonda Institute Maths and Science Project – Rustenburg

The goal of this well-established project, to which Impala contributed R3.2 million in FY2007, is to increase the number of young black people from historically disadvantaged communities in the Rustenburg (Bojanala-West) area to become engineers and scientists.

Through the Ukuqonda Institute, the ICDT has been able to access a team of committed and experienced mathematics and science educators with an established track record in providing post-matric and supplemental instruction and in-service training to teachers. The project includes the production of specific resources for learning (including certain items of laboratory equipment), as well as providing vacation work enabling past post-matric students who are now studying at university to augment their bursaries.

A ‘C symbol’ or higher for mathematics higher grade (HG) and physical science HG is generally regarded as a minimum entry requirement for university students to be successful in engineering or physical science degree courses. The impact of the Ukuqonda Institute Maths and Science Project on the performance of HDSA matriculants in the Rustenburg (Bojanala West) region since 2003 is shown in the tables below. These students all participated in the post-matric programme (case study on Maths and Science Post Matric Development Programme).

Mathematics HG
Number of C+ symbols achieved with direct support from the Ukuqonda project131520
Total number of C+ symbols achieved by HDSA matriculants in mathematics HG in the Bojanala Educational District486966
Percentage contribution of the Ukuqonda project27%22%30%
Physical Science HG
Number of C+ symbols achieved with direct support from the Ukuqonda project101121
Total number of C+ symbols achieved by HDSA matriculants in physical science HG in the Bojanala Educational District476969
Percentage contribution of the Ukuqonda project21%16%30%
Cost of the post-matric programme, including set-up and development costsR1.1 millionR1.22 millionR1.36 million

Vukuzenzele Primary School – Freedom Park

A new building and sports fields for the Vukuzenzele Primary School is a joint initiative between Impala Rustenburg and the North West Department of Education’s Bonjala Region. This is the first project approved by Impala Rustenburg in terms of an integrated development plan (IDP) for the area (the Mining Charter requires companies to co-operate in the formulation and implementation of IDPs). Together, the company and the department have made R10 million available for the new facilities.

Situated next to our Rustenburg operation’s No. 9 shaft hostel in Freedom Park, North West Province, the school, which has 900 learners, is currently housed in prefabricated buildings donated by Impala Rustenburg. The building project, which started in January 2007, is scheduled for completion by December and has provided 80 employment opportunities, 34 of these to people from Freedom Park (case study on Vukuzenzele Primary School).

Woodchips Project – Rustenburg

The R1 million per annum contribution by the ICDT to the award-winning Woodchips Project has a dual objective: it has created a small business for local community members, and it has an environmental aspect as it uses waste products for an economic purpose. Woodchips, which are remnants of the timber packs used as support in underground mining operations, are separated out from the ore during processing and, when combined with sewage sludge, form rich compost that is used in the rehabilitation of tailings dam slopes. The community-based business – called Monontsha – has been in operation since 2005. It employed 48 people during 2007, and 15 of the women currently employed have a 5% shareholding in this project (case study on Woodchips Project).

Small Business Development Projects – Bojanala District

Some R2.6 million was allocated towards the Small Business Development Projects in the Bojanala area in FY2007 in an effort to support enterprise development in the region. The aim is to establish, develop and assist co-operatives, small, medium and micro (SMMEs) enterprises and CBOs, with the help of service providers within the community to become profitable and to enter into the mainstream economy. In total, 90 cooperatives, 16 NGOs, SMMEs and 1,600 individuals benefited from these capacity-building projects (case studies: Mahube Trust assists Rule Slate and Tile Co-operative and the Masizakhe Bafazi Co-operative).

Lebone Women Empowerment – Home-based Care Project

Implats is one of a number of sponsors of the Greater Rustenburg Community Foundation (GRCF) which strives  to create a stable and prosperous local community through grant-making to and improving the capacity of non-profit and community-based organisations. The Lebone Women Empowerment – Home-based Care Project, which currently looks after 288 terminally ill patients in Boitekong near Rustenburg in the North West Province, is an example of such an organisation (case study on Lebone Women Empowerment).

Tsholofelo Masego Children’s Project – Koster, west of Rustenburg

In FY2007 Implats supported Tsholofelo Masego, a shelter for orphans and vulnerable children, with a grant. The group is also the sole sponsor of the Rustenburg Community Development Centre (RCDC) which provides ongoing assistance to the project. (case study on Tsholofelo Masego Children’s Project).

Maths and Science School Incubator Project – Springs

Around R897,000 was provided to a Saturday school project in FY2007 as part of the group’s support to a Maths and Science School Incubator Educational Programme. Some 200 pupils benefit from the provision of tuition in mathematics and physical science to Grade 10 to 12 learners.

Bakerton ABET Centre – Springs

The amount of R470,000 was donated towards this education project for the salaries of 10 full-time educators to provide adult basic education and training (ABET). Around 200 students benefit from this project.

Good Future Co-operative – Springs

To date, Implats has donated R360,000 to the Good Future Development Co-operative which was established in March 2006 as a women’s empowerment initiative (case study on Good Future Co-operative).

Business Against Crime – Labour-sending area, North West Province

The amount of R372,000 was provided towards the support of eight police stations in North West Province through a partnership with Business Against Crime North West. This initiative formed part of a national security imperative (Impala’s total contribution in FY2007 being R962,000) that not only assists in the fight against crime, building long-term capacity within the management of the police ranks, but also enhances service delivery and performance improvement at police station level.

The Business Against Crime Leadership Development Programme, a South Africa Qualification Authority-accredited programme, is aligned to the SAPS national training strategy and also supports the government’s service delivery improvement strategy. An intense process of impact evaluation, based on a set of desired outcomes, has been implemented to ensure that the strategic objectives of the programme are met.

A total number of 63 police members from eight different police stations have been trained. It is anticipated that this will have a positive spin-off on Impala communities, both locally and within some labour-sending areas.

South African Qualifications Authority

The South African Qualifications Authority (SAQA) is a body of 29 members appointed by the ministers of education and labour. Its functions are to:

  • oversee the development of the National Qualifications Framework (NQF) for a qualifications system, by formulating and publishing policies and criteria for the registration of bodies responsible for establishing education and training standards or qualifications and for the accreditation of bodies responsible for monitoring and auditing achievements in terms of such standards and qualifications; and
  • oversee the implementation of the NQF by ensuring the registration, accreditation and assignment of functions to the bodies referred to above, as well as the registration of national standards and qualifications on the framework. It must also take steps to ensure that provisions for accreditation are complied with and where appropriate, the registered standards and qualifications are internationally comparable.

Ikateleng Programme – Labour-sending area (Taung)

Although the matriculation results in the North West Province have shown a slight improvement in the past two years, there is still much concern about the effective teaching at schools within the disadvantaged communities. As long as ineptly qualified and demoralised teachers are utilised in these schools, especially in the field of natural and economic sciences, much has still to be done through support and intervention programmes if quality prospective university students are ultimately to be produced. In an effort to alleviate this serious problem, Implats through the North West University offers classes on Saturdays to Grade 12 learners, in an attempt to assist them through supplementary teaching by senior dedicated teachers.

The ICDT donated R214,970 towards the total annual funding for establishing and running Saturday-school teaching programmes at the Taung centres. The main objective of the Ikateleng project is to improve overall examination results as well as the individual symbols attained so that learners can meet the admission requirements of tertiary institutions or also helps to prepare them for such training. (21% of the students in 2006 were enrolled at North West University.)

The project is run over a period of 18 consecutive Saturdays. The aim is to assist learners in the specific areas in which they experience difficulties, namely mathematics, physical science, biology, accounting and economics. Life skills training is included in the programme, which is aimed at facilitating career maturity and personal development by teaching participants effective study methods, self-management skills, creative problem-solving skills, career exploration as well as awareness of their aptitude and career interests.

An English programme is also offered, with the objective of equipping the learner with certain basic skills and techniques which are not only applicable in speaking, reading and writing activities, but which can also be applied to related fields, for example, in study material for other school subjects, in selecting leisure reading material, or finding and understanding information of general interest.

EQUIP Programme – Labour-Sending Area (North West Province)

Implats has donated R816,670 to EQUIP (a partnership project between business, government and school communities) to improve teaching and learning in disadvantaged schools in North West Province. The focus of the EQUIP programme is on effective governance, quality management and strategic planning with a view to enabling schools to take responsibility for their own development and the ensuring of quality teaching and learning in their classrooms. EQUIP aims to improve the participating schools’ functionality and effectiveness.

A baseline study, school audit and situational analysis was conducted for each of the schools selected from Impala’s labour-sending areas in North West Province to:

  • determine the infrastructural conditions and the governance and management practices in the schools in order that the findings be used to develop the proposed school development programme;
  • measure the impact of the programme on the selected schools; and
  • provide information on the strengths and needs of the individual schools.

Ten schools were selected to participate in and benefit from the EQUIP programme. A similar project was undertaken in the Springs area and an amount of R192,000 was donated.


Medical Research Council

Support has continued (R500,000 in FY2007) as part of a five-year R2.5 million grant towards the Medical Research Council’s research into the development of an AIDS vaccine. The potential impact of success in this area of health is significant – it is estimated that 27 million people in sub-Saharan Africa are living with the virus.

Project Management Unit – Greater Tubatse Municipality Office in Burgersfort

The Steelpoort Producers Forum (SPF), whose members represent most of the mines in the footprint area, has collectively decided to assist the Greater Tubatse Municipality (GTM) in addressing pressing infrastructural needs. The SPF decision is a result of several mine expansion projects within this greater municipal area. Local municipalities bound by economic development obligations, are responsible for the provision of bulk services that include roads and storm water drainage, while district municipalities are responsible for bulk water provisioning.

Around R3.3 million was provided during the year towards this government support project as Marula’s specific contribution to the GTM. Marula also supports a project management unit (PMU). This unit is regarded by the National Treasury as a pre-requisite before municipal infrastructure grants (MIG) can be made. Legislation makes it possible for municipalities to apply for such grants from national government if they comply with the very stringent criteria set. For example, projects undertaken should benefit communities at large, be of infrastructural nature and project proposals ensuring service delivery must be in place before a grant can be made.

Funding from Marula was subsequently acquired to make the PMU operational. The unit was further strengthened by sponsoring a full-time civil engineer and financial manager together with a part-time projects manager to assist in the efficient implementation of infrastructure projects in the GTM areas. The PMU also received funding for the purchase of office equipment (computers and printers, desks, chairs, tables).

Assistance to the municipality with a PMU has shown the desired results, as demonstrated by the fact that a R12 million MIG allocation was approved by National Treasury and spent by the GTM on infrastructure projects in the area in FY2007. Apart from the MIG allocations, the municipality now also contributes capital funding via the newly established PMU. This is a significant step forward for the GTM as no MIG funding was ever allocated to this institution before.

The SPF serves as an example of how the mining industry can work in harmony with municipalities in the delivery of infrastructure projects that benefit both the mines and the adjacent communities.

Edumap College

Nine students drawn from extremely poor and disadvantaged households in the Marula area are receiving enrichment education in mathematics and science for a period of a year at a cost of approximately R387,000. On successful completion of the year’s course, they will be offered bursaries in mining-related tertiary education or scholarship opportunities at the mine (case study on Edumap College).

Tapologo Programme – Bojanala District

Impala has been involved with Tapologo since its inception in 1994 and, under the guidance of Bishop Kevin Dowling, the programme has provided assistance to families affected by HIV/AIDS in the communities around Rustenburg. Impala provided funding and support to the following initiatives of the Tapologo Programme at a total cost of R1.4 million during FY2007.

  • Tapologo Home-based Care: trained home care providers who come from local communities work under the supervision of professional nurses. They provided over 30,000 home care visits to patients and families in four local communities during the year.
  • Tapologo Hospice: the hospice in-patient unit is located in Phokeng and complements the core home-based care function of Tapologo. Patients receiving home-based care do from time to time require admission, particularly in the terminal phase of the illness. The hospice was built with our financial assistance to accommodate such patients. Increasingly, the facility is being used to stabilise immuno-compromised patients who are starting ART and this has necessitated the expansion of the current 25-bed facility to include a 10-bed ward which Implats has sponsored.
  • Tapologo ART programme: the ART programme complements government’s ART programme and five satellite sites are managed with funding received from the President’s Emergency Plan for AIDS Relief (PEPFAR). Implats has funded the clinic site at Freedom Park, an informal settlement adjacent to Impala’s operations (case study on Tapologo Programme).

Projects in labour-sending areas

Hlaluphilile Home-based Care Programme

Implats’ Hlaluphilile programme, which forms part of Teba Development’s home-based care service, was originally designed as a response to the increasing numbers of mineworkers retiring to rural areas on the grounds of ill-health. Together with 10 other companies, we pay a fee for every former employee participating in the programme, which helps to ensure the sustainability of the project. In FY2007, we contributed R225,000 to assist 60 of our former employees and their families.

Services provided include training family members as care-givers and in the provision of continuous palliative care; provision of services by a local home-based care group and provision of family first aid/home-based care kits. Referrals are also made to other organisations which provide clients with services such as VCT, ART, psychological and rehabilitation services. Care supporters and retired nurses are contracted on a daily basis by Teba Development to provide services to the clients.

In some areas, the health of the beneficiaries has improved dramatically and a number of them are involved in various forms of income-generating activities. Support groups for people living with HIV/AIDS were established in FY2007. Participation in these groups is open to other people in the community in addition to ex-mineworkers and their families. The process of establishing support groups is driven by fieldworkers in partnership with local community clinics that already have support groups in place.

Zimbabwe – Zimplats

Wanganui Turf High School refurbishment, Ngezi Mine

Zimplats has committed to spending $645,000 (R4.6 million) to refurbish the Wanganui Turf High School and increase its capacity, over a period of five years. The project is being undertaken in partnership with the local authority and the national Ministry of Education. Included in the project scope are new classroom blocks, teachers’ housing, water and electricity reticulation and school furniture. Some 450 learners will benefit from the project.

Turf Clinic refurbishment

Zimplats is involved in the refurbishment of the Turf Clinic with the aim of restoring it to a fully functioning primary health care point for employees, their dependants and the local community. The project, which is being undertaken in conjunction with the local authority, is being carried out at a cost of $185,000 (R1.3 million). About 800 people will benefit.

Turf local authority, Ngezi Mine

Zimplats has funded the construction of offices to be used by the local authority at Turf at a cost of $145,000 (R1.0 million). The Turf community (comprising between 8,000 and 10,000 people) will benefit.

Zimbabwe – Mimosa

It is a critical aspect of Mimosa’s mission statement to foster a mutually beneficial relationship with the surrounding community. Year by year requests for assistance come regularly from the various community stakeholders, including schools, co-operatives and other independent centres. These requests are evaluated according to needs and they are measured against Mimosa’s corporate governance guidelines. During the period under review a total of R1.3 million was spent on such projects.

Kyle School project

In FY2007 Mimosa donated 130 bags of cement towards the construction of a footbridge at the Shagashe River to provide easier access to the school. A total of R28,000 was spent on this project. Mimosa continues to have a close relationship with this school, which is used to benchmark its educational assistance policy.

Community co-operative and borehole projects

As part of a community engagement initiative, Mimosa runs community co-operative projects which include work assignments such as growing gum trees around company sewerage ponds, digging trenches, clearing fire guards around the company perimeter fence, etc. Proceeds from such projects are channelled towards community projects, for example, the construction of Mukwidzi Secondary School. Approximately R36,500 was spent on these projects, which are of an ongoing nature. In addition, Mimosa provided a borehole pump, accessories and the installation of a 5,000-litre water reservoir, for a total amount of R426,000.

‘Cop of the month’ scheme

Mimosa runs ‘Cop of the month’ and ‘Cop of the year’ schemes as part of its commitment to the ongoing efforts by various stakeholders to fight crime within society. The competitions are run every quarter at the Zvishavane police depot and are presided over by senior Mimosa management and provincial police command.

Community borehole projects

Mimosa repaired two boreholes in the Kromdrai resettlement area. This joint project between Mimosa and community leaders saw two broken down boreholes being repaired through assistance with pipework and other ancillary equipment.

Better Schools programme

Each year Mimosa contributes towards the Better Schools programme by funding and/ or providing academic material in the form of prizes for the best schools in the Zvishavane district. This year the mine provided textbooks to the value of R18,000 as a contribution towards prizes for the winning schools and children within the district. Mimosa has also funded the construction of a classroom block with three classes, including furnishings, at Makwasha Primary School. A total of R805,000 has been spent on this project.

Key objectives for FY2008

Key objectives for FY2008 include:

  • ongoing identification and support of projects in line with the ICDT’s objectives;
  • ongoing support of projects in local communities and labour-sending areas in alignment with the group’s SLPs;
  • establishment and functioning of the Impala Bafokeng Trust; and
  • establishment of systems to track and monitor the value and impact of all socioeconomic spend including ‘in-kind’ contributions.

Impala Platinum Holdings Limited – Corporate Responsibility Report 2007