Implats takes its responsibility as a corporate citizen seriously by ensuring that its activities and actions have a positive social and economic impact on the communities in which the group operates and from which its employees are drawn, and by ensuring that its operations comply with regulations and good practice in respect of safety, health and the environment.
The group's approach to corporate responsibility and sustainable development is discussed in the Corporate Responsibility Report, which is available on the website at www.implats.co.za. This report has been compiled in line with the Global Reporting Initiative's (GRI) G3 guidelines and key parameters have been independently assured. Implats has declared a B+ level of reporting in terms of the GRI application levels and will seek to have this confirmed by the GRI.
Matters relating to safety and people, which are covered in depth in the Corporate Responsibility Report, are allocated separate sections in this annual report as they are considered crucial to the group.
This corporate responsibility section provides a brief overview of some of the other important issues that are dealt with in the Corporate Responsibility Report, including: health; HIV/AIDS; socio-economic development; and environment.
Occupational health screening and medical treatment are provided by company-based clinics, own and contracted occupational health centres, and hospital-based and contracted specialists. Occupational health examinations take place at the group's clinics, which offer primary and curative care.
All employees and contractors undergo pre-placement, annual and exit examinations to ensure that they are fit for work in their specific work environments and that any occupational disease is detected at an early stage. More than 75 000 occupational screening examinations were performed across the group in FY2008.
These examinations also detect non-occupational illnesses, such as hypertension and diabetes. Where relevant, new cases of occupational disease are identified and are referred to the appropriate on-site or external facility. Implats' strategy in this respect is to improve access to affordable and appropriate health care for employees and their families. All employees have access to medical aid with a range of schemes available.
The two primary occupational health risks are noise-induced hearing loss (NIHL) and pulmonary tuberculosis (TB). Heat stress and potential exposure to heavy metals are risks in certain occupations. In total, 328 new cases of pulmonary TB were diagnosed during the year, and treatment was initiated in all cases (FY2007: 348). Employees identified with TB are encouraged to receive treatment from company facilities which adhere strictly to World Health Organization (WHO) recommended regimes and directly observed treatment supervision (DOTS). The HIV/AIDS pandemic continues to have a significant impact on TB rates. Around 60% of newly-diagnosed TB patients are HIV-positive.
Comprehensive hearing conservation programmes are in place at all operations to reduce the risk of employees developing NIHL. In South Africa, these programmes are aimed at reducing noise levels at source to below 110dBA, in line with the South African Mine Health and Safety Council targets. The fundamental challenge is to muffle rockdrills to meet these criteria. Personal hearing protection devices, are provided to all employees and permanent contractors who work in high-risk areas. If worn correctly, these will attenuate noise to below 85dBA, which is the targeted level.
Education of employees with respect to NIHL and the use of hearing protection devices continues because, although there has been some improvement, non-compliance by individuals remains one of the most significant challenges. In FY2008, 31 new cases of NIHL (FY2007: 54) – all at Impala Rustenburg – were identified and submitted for compensation. All employees exposed to noise undergo audiometric baseline examinations and are monitored with follow-up annual audiometric tests for early signs of hearing loss.
No cases of heat stroke were reported during the period under review. All employees who underwent biological monitoring had results within the normal range.
HIV/AIDS continues to be a major concern at both the South African and Zimbabwean operations. The most significant impact is on the well-being of employees and their families.
There is a direct significant cost implication to the group in terms of medical care and prevention programmes, as well as a significant impact on productivity in the workplace and on the replacement of skills in an industry where skills are in short supply.
All employees and their dependants have access to company managed or external medical care and some employees make use of state-owned facilities. The statistics reported reflect only those gathered when employees make use of direct company facilities. Under-reporting is therefore likely.
Based on publicly available information (Department of Health), it is estimated that HIV-prevalence levels in the general adult population in areas of primary operations average 20%. Higher levels of turnover have, over time, resulted in a rise in HIV prevalence levels within the group, and particularly at Impala Rustenburg, as the company draws new recruits from communities that have historically had a higher HIV/AIDS prevalence level than that of the company's own workforce. In addition, the recruitment of more women – who are an ‘at-risk group’ within the broader population – may have an impact on the overall prevalence levels.
Agreements are in place with major unions in respect of the management of HIV/AIDS at the South African operations. The focus during the year under review was two-fold:
Voluntary counseling and testing (VCT) is available at all of the group's operations, although uptake during the year was disappointing with only 3 609 employees being tested (FY2007: 6 800 tests).
Employees who are HIV-positive are encouraged to participate in the wellness programme available throughout the group or through the various medical aid schemes. As at the end of FY2008, 2 734 patients were enrolled in the group's wellness programme.
ART is available to all employees and their dependants through the group's medical schemes. In FY2008, 435 new patients started on the ART programme with a total of 708 employees (FY2007: 396) being treated at the group's medical facilities. The exact number of employees taking ART through external medical schemes is not known.
Implats' socio-economic development activities in South Africa are managed under the auspices of the Impala Community Development Trust (ICDT) and the Impala Bafokeng Trust (IBT), which was established in 2004 as part of the group's black economic empowerment (BEE) transaction with the Royal Bafokeng Nation (RBN). As part of its Social and Labour Plan (SLP) commitments, the group is undertaking extensive local economic development (LED) programmes in the communities in which it operates and from which it draws its labour.
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 the legitimacy) of projects, and assists in attracting investment from other donors, as well as support from governmental agencies and nongovernmental organisations (NGOs), community-based organisations (CBOs) and others.
Guided by its Corporate Social Affairs Policy (PDF - 398KB), the group aims to ensure that it makes a positive contribution to poverty alleviation, community development (by establishing infrastructure development 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.
During FY2008, the ICDT spent R42 million on socio-economic development projects in South Africa (FY2007: R32 million). This figure includes an administration charge of R5 million to manage the funds.
Implats and the RBN entered into an agreement for the formation of the IBT to facilitate and contribute to the social and economic development of the people residing in the Bojanala District of North West Province in 2008. In FY2008, both parties contributed R6 million to the trust of which R10 million was allocated to projects and R2 million to administration.
As part of 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. In particular, the trust will 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. Within these activities, special attention will be paid to the advancement and empowerment of women.
In terms of its mandate, the IBT will focus on the RBN villages and communities where Impala Rustenburg operates (40%), Bojanala District (excluding Rustenburg and RBN villages) (25%), the town of Rustenburg (25%), and North West Province in general (excluding the Bojanala District) (10%).
In Zimbabwe, corporate social investment expenditure is focused primarily in the areas of education and health. Zimplats spent in the region of $400 000 (FY2007: $208 000) and Mimosa some $265 000 (FY2007: $181 000).
Implats is mindful of the potential impact that its mining, smelting and refining operations may have on the environment in which it operates and, as a minimum, aims for legislative compliance.
Environmental management plans (EMPs) are in place or being implemented at all operations and were reviewed and updated during the year. Implats is committed to seeking continual improvement and an environmental management system, based on ISO 14001 is in place.
A total of 66 internal audits and 13 external audits were undertaken during the year. Impala’s Rustenburg and Springs operations, Mimosa and Zimplats have all maintained their ISO 14001 certification. Marula will begin its certification process in FY2009. In addition to group closure estimates, closure plans have been developed for Impala Rustenburg and Zimplats.
There were no significant breaches of environmental laws, regulations or standards within the group during FY2008, and no fines were imposed.
An important environmental management objective is the establishment and maintenance of open and constructive relationships with all stakeholders in respect of environmental performance. Hotlines, open days, newsletters and community liaison forums all form an integral part of communication with stakeholders.
Environmental priorities and the potential for environmental risk vary from site to site. Broadly these risks are pollution (air and water), resource usage (water and energy), waste management and land management. The efficient use of raw and input materials is promoted both from a cost and environmental conservation perspective.
Sulphur dioxide (SO2) emissions are the major air quality issue for the group’s smelting operations, Impala Rustenburg, Impala Springs and Zimplats. The group’s emission control strategy is based on the management of three critical components: meeting or exceeding ambient air quality standards specified by legislation, monitoring visual emissions and preventing occupational exposures.
Significant capital expenditure has been invested in plant and equipment to limit these emissions, particularly as Impala Rustenburg’s smelter expansion progresses. The commissioning of the new installations is on schedule and expected to take place at the end of calendar 2008.
Implats submitted a response to the Carbon Disclosure Project (CDP) in respect of the CDP6 Greenhouse Gas (GHG) Emissions Questionnaire. This response will be published on the CDP website in due course.
Integral to Implats’ strategy to reduce its GHG emissions, is reducing and optimising its energy usage and efficiency. Energy management has always been of prime concern to the group, but this became critical when supply reached crisis levels in the first half of calender year 2008.
Implats is a signatory to the DME’s Efficiency Accord in terms of which the company pledged a 15% decline in energy demand from 2000 to 2015. In early 2008, Eskom, the national power utility, imposed a 10% permanent reduction in energy allocation and, given the group’s expansion plans, this has serious long-term implications.
The group has established an internal working committee to develop and implement an energyand-load management programme that will meet the short-term reduction of 10% in electricity usage and the medium-term reduction of 15% in energy usage.
Total energy consumption (which includes energy from all sources) rose by 3% to 16.14 million GJ in FY2008.
Implats recognises that water is a scarce and valuable resource, the availability of which may be further exacerbated by climate change. The company’s strategy involves the reduction of water consumption, the optimisation of recycling and the mitigation of any negative impacts of its operations on local and regional water bodies.
Total water used by the group in FY2008 was 45.11 million kl, an increase of 36% on the previous year. Total water withdrawn amounted to 25.97 million kl, an increase of 20% on FY2007. The percentage of water recycled at the Refineries was the highest recorded by this operation and reflects the increased management focus on this area of operation.
The primary concern in respect of water pollution is the potential release of sulphates, chlorides and nitrates into receiving water bodies. Groundwater sampling is regularly undertaken at all operations, as is the sampling of surface water. A regional groundwater model developed in 2003 for Impala Rustenburg is updated annually. The construction of pollution control dams at Impala Rustenburg’s Minpro complex, and the No 3/4 tailings dams, which form part of the project to clean the Rockwall Dam, will be completed in FY2009.
None of the group’s operations are located in protected areas or in areas of high biodiversity value, although red data species are located in the vicinity of Marula and are catered for in Marula’s EMP.
A Biodiversity Action Plan is currently being developed for Impala Rustenburg. The programme will identify any threatened species and habitats and is designed to protect and restore biological systems within the mining area. It will require a partnership with the local authorities to work towards regional biodiversity targets. The plan will be fully implemented by FY2011.
Implats - Annual Report 2008
| Forward-looking statements