Corporate Responsibility Report 2008

Socio-economic development

Management of socio-economic development

Implats takes its responsibility as a corporate citizen seriously, ensuring that its activities and actions have a positive impact on the communities in which the company operates and from which its employees are drawn. Its approach is a holistic one and encompasses procurement and employment practices, training, engagement with local authorities, establishment of infrastructure and socio-economic development. In this respect, socioeconomic development includes the identification of opportunities for improving the livelihoods, well-being and prospects of a broad cross-section of the community.

Implats’ socio-economic development activities in South Africa are managed under the auspices of the Impala Community Development Trust (ICDT), which was formed by the group in 1998 and the Impala Bafokeng Trust, which was set up in September 2007 as part of the group’s BEE transaction with the Royal Bafokeng Nation (RBN). In addition, as part of its SLP commitments, the group is undertaking extensive local economic development (LED) programmes in all the communities in which it operates.

The ICDT

The ICDT aims to be a facilitator of social development and encourages meaningful and sustainable interventions, always in partnership with local communities and often in partnership with other donors. This collaborative approach facilitates ownership (and therefore legitimacy) of projects, and assists in attracting investment from other donors and support from governmental agencies, nongovernmental organisations (NGOs), community-based organisations (CBOs) and others.

Guided by its Corporate Social Affairs Policy (see the website at www.implats.co.za), the group aims to ensure that it makes a positive contribution to poverty alleviation, community development (by establishing infrastructure and empowering community structures) and enabling government to facilitate improved service delivery and local economic development. Although the ICDT’s overriding goal is the empowerment of a broad range of stakeholders, it places a specific emphasis on black youth, women and people living with disabilities.

Social development officers based at the operations identify possible projects or review the various applications they receive and submit these for approval. Applications to the ICDT are evaluated internally prior to consideration by the ICDT Board of Trustees. Group CEO David Brown is the chairman of this board.

During FY2008, the ICDT spent R41.6 million (including R6 million contributed to the Impala Bafokeng Trust) on socio-economic development projects in South Africa (FY2007: R31.8 million). This figure includes an administration charge of R5.1 million to manage the funds.

In FY2008, there were more than 5 194 direct and 42 102 indirect beneficiaries of this expenditure (FY2007: 14 195 and 11 599, respectively) (Note: the significant decrease in direct beneficiaries reported is due to improved governance measures implemented in capturing beneficiary details and a more strict definition used for direct beneficiaries.)

Programmatic focus of the ICDT Programmatic focus of the ICDT ICDT expenditure

The ICDT

The ICDT aims to:

  • align 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 in targeted communities.

The ICDT has eight areas of focus.

  • 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, and 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 and training for the South African Police Services (SAPS).
  • Supporting income-generating projects through the establishment of co-operatives (and facilitating financial and other support for these co-operatives), NGOs, CBOs, capacity-building programmes and business linkage centres (in Springs).
  • Sports development, which includes support for soccer, rugby, netball and cricket at local level.
  • Government support, which includes assistance with the establishment of district and local municipalities in the areas where Implats operates to enhance infrastructure delivery and local economic development.

 

Programmatic focus of the IBT

The IBT

The IBT started formal operations in 2008. Implats and the RBN entered into an agreement for the formation of the trust to facilitate and contribute to the social and economic development of the people residing in the Bojanala District of the North West Province. In FY2008, both parties contributed R6 million to the IBT, of which R10.4 million was allocated to projects and R1.6 million spent on administration.

In fulfilling its mission, the IBT will partner with relevant stakeholders in the region to facilitate the advancement of the people living and working in the area, and specifically to support education, health, income generation, sports and institutional capacity development initiatives that address the most urgent social and economic challenges being faced by these communities. The IBT will also focus on the advancement and empowerment of women through these activities.

In terms of its mandate the IBT will focus on the RBN villages and communities where Impala Rustenburg operates (40%), the Bojanala District (excluding Rustenburg and RBN villages) (25%), Rustenburg (25%), and North West Province in general, excluding the Bojanala District (10%).


Impala Rustenburg
Impala Rustenburg

Key principles guiding the IBT and the ICDT

The IBT seeks to support strategic initiatives that are complementary to those being implemented by government, government agencies, private companies, CBOs and NGOs. In addition, the IBT will take the following key principles into consideration when reviewing and engaging in selected projects or programmes:

  • compliance in terms of the legislative environment, particularly the areas falling under the DME and the Department of Trade and Industry;
  • local and municipal initiatives, including alignment with the Integrated Development Plans (IDPs) of local government and engaging with their projects and programmes;
  • level of visibility and impact to ensure that the contributions of the IBT are seen in the community in terms of real social and economic change for the better;
  • acknowledgement of partners and mutual understanding, respect, trust, responsibility and accountability in the knowledge that social and economic transformation is beyond the scope of donors alone; and
  • championing accountability and professionalism both internally and externally.


Impala Rustenburg’s local economic development projects

As part of Impala’s commitment to its SLP, the company has initiated a number of projects in the are of operation, in the Bojanala, Taung, Ganyesa regions and Eastern Cape, an area from which many employees are drawn. Some of these projects include:

Mine area and Bojanala

  • Macharora Hydroponic Tomato Project – Identified by the community of Macharora, a feasibility study has indicated that it is not viable. R1 125 000 has been allocated to an agricultural project to be identified.
  • Serutube Mafika Piggery Project – Initiated by members of the community, this project has also been supported by the Royal Bafokeng Administration, which is providing a portion of land for the project. R736 000 has been allocated to this project.
  • The Reach Project, the Post Matric Project, Ambulance and clinic facility donation and Vuk’uzenzele Primary School.

Taung

Ganyesa

  • Sports For All Franchise – Undertaken in conjunction with the Kagisano Local Municipality at a cost of R550 000, this project provides children with access to sport in a safe environment and has created employment and a sustainable black-owned business.

Eastern Cape

  • The Libraries Project in Lusikisiki and Flagstaff, at a cost of R519 367. Undertaken in conjunction with and co-funded by the OR Tambo district municipality, the project aims to improve literacy levels and to improve the quality of life;
  • Bursaries and learnerships;
  • Construction of additional buildings at the Mbadango School in Umthatha at a cost of R559 000. The project was identified by the Department of Education and is being jointly funded. The extensions include four new classrooms, an ablution block and administration facilities;
  • Planning for the construction of a new school at Ngcubeni Junior Secondary School in Umthatha in a a joint venture with the Department of Education;
  • The Essential Oils project in Umthatha originally initiated by the DME. This project is in the business plan phase and will commence once proved to be viable;
  • Rehabilitation of quarries in Umthatha, a project identified by SAWIMA (South African Women in Mining Association). A feasibility study has been undertaken; and
  • A poultry project in Lusikisiki, in collaboration with the OR Tambo district municipality. R500 000 has been spent to date.

Impala Rustenburg
Marula

Local economic development projects at Marula

Marula Platinum has engaged extensively with stakeholders around the mine in identifying and initiating local economic development projects around the mine. Five key projects were progressed during the year, namely:

  • The company had committed R3 million for infrastructure development at the Makgamathu and Mohlalamorudi Secondary Schools. The project is currently on hold as the community still needs to approve these schools recommended by the Limpopo Department of Education.
  • An agriculture project (poultry and piggery) to support poor women in the greater Tubatse Municipality. A feasibility study indicated that this project would not be feasible, however, and a new project is being identified;
  • Water and electricity supply in the Greater Tubatse Municipality to 1 900 households over a period of five years at a cost of some R30.7 million;
  • Community sports initiative which involves the provision of sporting facilities on the Marula farms (at Winnaarshoek, Driekop, Clapham, Mashishi, Kgwete and Magabaneng) at a cost of R1.6 million; and
  • The identification and support of a business partner to assist the local community in extracting and marketing chrome from tailings.

Impala local economic development projects

Impala Springs supported a number of the LED projects during FY2008. These are some of the projects:

Zivuseni Poultry Farming

This co-operative started to operate in August 2005. It was formed by 11 black unemployed youths, four male and seven female. The main focus is to engage youth in agriculture and provide them with technical specialised management training. The youth will attend business management courses and the department of agriculture will assist with farming skills and training.

Community Skills Development Project

The Community Skills Development Project is situated in Ward 72, an informal settlement behind Impala Refineries. The project provides training in plumbing, bricklaying, carpentry and other skills that will provide the learners with the knowledge to empower themselves and earn a living.

Nokuphila Community Services

Nokuphila Community Services provides care and support for people infected and affected by HIV/AIDS in the community of Kwa-Thema, Springs. The centre also provides relief services to orphans and vulnerable children as a result of the disease. A contribution of R450 000 was made towards the renovations of the day care centre.

Nigel Caring Community

Nigel Caring Community was formed in 1999 due to the serious need for professional help for people living with HIV/AIDS in the area. It was established as a home-based care centre and has evolved to provide for the needs of the people suffering from this pandemic.

New Image Rover Crew

New Image Rover Crew (NIRC) in Kwa-Thema is a non-profit organisation that was established in 1997 with the aim of providing HIV/AIDS awareness and prevention campaigns. The project is targeted at primary and secondary schools, tertiary institutions, corporate organisations, prisons, churches and the community at large. NIRC’s focus is providing professional home-based care to terminally ill people living with HIV/AIDS and other chronic illnesses in partnership with the health department.

 

Oasis Rover Crew

Oasis Rover Crew is an initiative started by young people living in Kwa-Thema in response to the HIV/AIDS pandemic affecting this community, particularly the youth and young adults. The purpose of the organization is to address HIV/AIDS prevention programmes, STIs, TB and home-based care. Oasis Rover Crew started a drop-in centre two years ago to assist the youth mostly who are at primary school level with their homework.

Our Nest

Our Nest is a stimulation centre for the severely mentally disabled children in Springs. Implats donated a computer, office equipment, a washing machine, fixed the carport and painted the fencing around the home.

Katlego Ka Tshepo

Katlego Ka Tshepo is an NGO which provides day care for the orphaned and vulnerable children, home-based care and support group services. Katlego‘s day care centre for toddlers had a park home which was destroyed by the strong winds in December 2007. Implats donated another park home to the centre for over 80 children accommodated by the centre.

Bakerton Abet Centre

Over the past few years, Bakerton Abet Centre has focused on providing skills training to the community of the previously disadvantaged adults who never had the opportunity to go to school. A total of 13 facilitators are temporarily employed by the centre.

Môrester Primary School

Môrester Primary School, on the border of Benoni and Springs, has approximately 833 learners which come from informal settlements in the area as well as in the townships of Daveyton, Kwa-Thema and Tsakane. Impala donated money for the renovation of the primary school’s media centre, as well as a scanner and some books.

Zimbabwe

In Zimbabwe, corporate social investment expenditure is focused primarily on the areas of education and health. Zimplats spent in the region of $400 000 and Mimosa some $265 000.

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Implats - Corporate Responsibility Report 2008