Highlights	Disappointments	Opportunities
53 261 people employed in FY2009 (employees and contractors). Employee turnover showed signs of decreasing in the latter half of the year, as a result of interventions and the global financial crisis. Robust and positive collective bargaining structures in place, with no significant break-downs in relations during the year.	Employee turnover – at 7.8% - remained higher than desired in certain employment categories, but lower than the 8.9% in FY2008 overall. Progress in promoting HDSAs in management and women in mining was disappointing, with targets not achieved.	Further exposition of the Employee Value Proposition expected to reap rewards in the coming year.

Management approach

An organisational review project undertaken during the year resulted in a new structure being implemented at group level. This has an impact on both the operational structure and on reporting lines, with a fundamental split being implemented between operations and growth projects.

Implats remains a significant employer in the areas in which it operates, both of permanent employees and contractors. A continuing factor during FY2009 was the high level of contractor involvement in major capital projects and this is expected to start declining in FY2010.

As an employer, Implats aims to provide satisfactory careers and career development paths for all its employees and, given the requirements of the Mining Charter, particularly for those HDSA employees at the South African operations. Given the skills shortages that have prevailed in the industry in recent years, much emphasis is placed on skills development, and this is expected to continue in the year ahead.

While the management of people is a designated line function, central policies and practices are devised and monitored at a corporate level with specialists overseeing, for example, remuneration, employment equity, industrial relations, and training and development, among others.

Those human capital initiatives begun the previous year continued in FY2009 with the restructuring and streamlining of executive management, development of detailed labour plans in support of the company’s planned growth and development, and increased managerial focus on cost savings.

In FY2009, greater emphasis was placed on the relevance of these initiatives in attracting and retaining the skills critical to the company’s success and viability. The particular focus in FY2009 was on addressing operational under-performance as a result of the shortage of supervisory and skilled employees, which in turn had a negative effect on safety and productivity. The attraction and retention of the calibre of employee required was the focus of the recruitment, selection, reward and talent management programmes. There was a shift in emphasis to a consideration of the entire ‘employee value proposition’. This is described as the relationship between the company and employees in a partnership in which individual contributions are recognised, so as to create an environment where employees feel valued and can grow and develop.

Monitoring of the recruitment process intensified so as to increase and ensure its effectiveness while employee remuneration and benefits were proactively benchmarked so as to monitor their competitiveness.

Performance in 2009

Employment created

At the end of FY2009 the Implats group employed a total of 53 261 people, made up of 36 000 employees (68%) and 17 261 contractors (32%). This was attributed to capital projects that were finalised and permanent employees employed. Unlike a number of its peers, Implats did not embark on any major restructuring and retrenchment programmes. It is anticipated that employee turnover will remain high in certain skills in FY2010. This is expected to affect particularly management and supervisory levels.

Total number of employees and contractors

		2009			2008
Operation	Employees	Contractors	Total	Employees	Contractors	Total
Rustenburg	29 462	11 862	40 141	28 453	14 206	42 659
Impala Springs	1 006	904	1 910	1 007	1 172	2 179
Marula	2 512	998	3 510	2 493	1 098	3 591
Zimplats	2 136	3 323	5 459	1 584	3 998	5 582
Mimosa*	812	154	966	771	126	897
Corporate office	72	20	92	73	10	83
Group	36 000	17 261	53 261	34 381	20 610	54 991

* 50% Mimosa employees reported

Origins of employees

Preference is given to sourcing employees locally where possible. Given the historical structure of the South African mining industry and the migrant labour system, there remains a significant number of employees (15%) at the South African operations whose permanent homes are outside the borders of South Africa. While Implats does not discriminate against employees from other countries, it is the company’s long-term goal that employees should be drawn from and housed with their families where this is possible, in the area of the operation. Implats’ South African labour distribution is as shown in the table below.

Origins of Employees (SA operations)

Area	Total	Rustenburg	Head Office	Marula	Refineries
Eastern Cape	4 679	4 452	0	179	48
Free State	749	693	0	36	20
Gauteng	1 510	709	66	52	683
KwaZulu Natal	634	552	0	24	58
Limpopo	2 459	396	0	1 955	108
Mpumalanga	326	179	1	104	42
North West Province	16 216	16 131	5	55	25
Northern Cape	1 656	1 648	0	3	5
Western Cape	19	15	0	4	0
Botswana	423	419	0	0	4
Lesotho	2 113	2 105	0	0	8
Mozambique	1 997	1 995	0	0	2
Swaziland	170	168	0	0	2
Zambia	1	0	0	0	1
Other	100	0	0	100	0
Total from South Africa	28 248	24 775	72	2 412	989
Total from SADC	4 804	4 687	0	100	17
Total	33 052	29 462	72	2 512	1 006

Employee retention

Employee turnover decreased to 7.8% in FY2009, higher than desired, at the Zimbabwean operations, and particularly in certain job categories. The shrinking job market within the South African mining industry as a number of mining companies have undertaken retrenchments and the increased focus on employee retention has paid dividends, with employee turnover levels declining in the second half of the year. Around 4% of the total turnover represents women in certain categories especially supervisory and technical positions.

Turnover levels (%)

	All employees		Women
Operation	FY2009	FY2008	FY2009
Impala Rustenburg	7.3	8.3	0.3
Impala Springs	8.6	9.1	1.4
Marula	10.0	13.1	0.4
Mimosa	6.2	11.9	–
Zimplats	10.7	10.8	–
Corporate office	11.1	5.5	6.9
Group	7.8	8.9	2.3

Key initiatives begun in FY2008 and continued in FY2009 were:

• A new accommodation strategy to uplift the housing and living conditions of the majority of employees, and in which the provision of quality accommodation (with associated infrastructure) is seen as a competitive advantage in attracting and retaining employees.
• The third year of the group’s ESOP in South Africa.
• The Ama-Ching-Ching Bonus Scheme, which demonstrated some success during the first half of the year, was less successful in the second half. Declining operational performance during the year resulted in a decrease in payments to employees. A regular review of incentives to support business objectives allows for swift adjustments to circumstances.

In line with the group’s aim to continue to improve its ‘employee value proposition’, a number of programmes and objectives have been put in place for implementation in FY2010, including:

• further alignment of employee benefits across the group. Benefits provided to employees include maternity and paternity leave, study assistance, medical aid and accommodation, pension and provident funds, among others;
• review of preferred compensation schemes, the Share Appreciation Bonus Scheme and the implementation of revised performance evaluation, all aimed at the retention of senior management;
• review of operational bonus parameters to ensure alignment with the group’s business plan objectives;
• review of overall remuneration practices to ensure that they are highly effective and competitive; and
• the talent management programme.

Developing and managing talent

Much emphasis is placed on the education, training and development of employees at all levels to ensure that the skills necessary for sustainable and efficient functioning of the company and its operations are available. Training is conducted both internally and externally. Key indicators relating to training and development during the year for South African operations only:

• The total value of both external and internal training provided by the South African operations (excluding ABET) was R262 million (FY2008: R215 million including ABET).
• The total number of hours of external and internal training provided to South African employees (excluding ABET) was 2.8 million hours, which is some 84 hours per employee.
• The total value of ABET training provided by the group was R18 million (FY2008: R26 million).
• The total number of people trained (internally and externally) including ABET during the year was 23 734, about 72% of South African employees.

Human Resources Development centres located at Impala Rustenburg and Refineries retained their Mining Qualifications Authority (MQA) accreditation, as well as their ISO 9001 2008 Quality Management certification, enabling the group to deliver fully accredited and quality-assured training to employees. Marula’s Human Resources Development Centre received this accreditation in March 2009.

Value of training provided (excluding ABET) – by operation (R000)

	External		Internal		Total
Operation	FY2009	FY2008	FY2009	FY2008	FY2009	FY2008
Impala Rustenburg	18 638	11 397	199 569	130 038	218 207	141 435
Impala Springs	5 505	4 704	27 424	23 174	32 929	27 880
Marula	130	720	10 800	7 100	11 000	7 800
SA operations	24 273	16 823	237 793	160 312	262 136	177 115

Hours of external training (excluding ABET) – by operation (000hrs)

	External		Internal		Total
Operation	FY2009	FY2008	FY2009	FY2008	FY2009	FY2008
Impala Rustenburg	70.8	79.5	2 438	1 761	2 509	1 841
Impala Springs	40	49.4	235	180	275	229
SA operations excl Marula	111	129	2 673	1 941	2 784	2 070

Number of people trained externally and internally (excluding ABET) – by operation

	External		Internal		Total
Operation	FY2009	FY2008	FY2009	FY2008	FY2009	FY2008
Impala Rustenburg	670	663	20 529	725	21 199	21 838
Impala Springs	406	430	596	473	1 002	903
Marula	45	109	446	310	491	419
SA operations	1 121	1 202	21 571	1 508	22 692	23 160

Value of ABET, hours of ABET and number of employees received ABET – by operation (000hrs)(R000)

	Value of ABET		Hours of ABET Afforded		Number of employees
Operation	FY2009	FY2008	FY2009	FY2008	FY2009	FY2008
Impala Rustenburg	11 315	23 055	194 184	345 504	939	1 220
Impala Springs	5 862	3 124	39 088	49 200	61	89
Marula	900	480	13 920	15 360	42	23
SA operations	18 077	26 659	247 192	410 064	1 042	1 332

Adult Basic Education and Training (ABET)

Given the low levels of literacy at the South African operations and the requirements of the Mining Charter regarding employee training and development, adult basic education and training (ABET) is a priority. The literacy level at Impala Rustenburg is currently 54.9%, 90% at Impala Springs and 87.9% at Marula. This represents a significant increase in those numbers reported in the prior year and is a reflection of the skills audit undertaken during the year at Impala Rustenburg, which resulted in the identification of a far greater percentage of employees who are literate. All employees at the corporate office and Zimbabwe operations are literate.

ABET is provided on both a full time (31% of total intake) and part time basis (69% of total intake). A total of 1042 individuals participated in ABET in FY2009 with 417 having been in the programme at the end of the year. Full time ABET is provided according to developmental and business plan needs. The provision of ABET and the fulfilment of the company’s charter obligations are not without challenges: pass rates are low (25%) as training is frequently interrupted by periods of leave; attendees are fatigued after long and physically arduous shifts; and the quality and availability of part time facilitators varies. Two community-based ABET facilities (Boitekong and Thlahane) attracted little interest.

Talent development and management

Implats’ talent management programme is based on two foundations:

• developing the group’s own talent. This involves the development of people within the company, and is aimed at more senior positions, specifically key leadership, supervisory and technical skills. Talent planning (succession) and talent identification (talent pools) constitute the most important initiatives.
• recruiting external talent: To sustainably grow talent from within, it is important that the company selects the right mix of technical, social and leadership skills at entry level. In this regard, the leadership and graduate recruitment processes are critical.

The talent management programme includes career progression, individual development, mentoring and succession planning, and increased focus on technical training, graduate recruitment and performance management, all of which is aimed at ensuring an adequate future supply of the scarce and critical skills required by the industry in particular, and the economy in general.

Some 230 employees participated in this programme in FY2009. Efforts have been made to extend the depth of succession planning from the executive and senior management levels to middle management and supervisory levels.

Implats’ Leadership Development Programme focuses on executive succession, identifying talented individuals with the potential to advance to the executive and board level. Full-time on-the-job development opportunities are offered to identified individuals and, in collaboration with GIBS, a tailored Intermediate Management Development Programme is offered. Some 28 employees participated in this programme, with 46% HDSAs and 21% women.

The supervisory/technical development programme focuses on mine, plant and project managers, shift supervisors, section engineers and plant engineering foremen. In FY2009, approximately 31 employees participated in this programme of which 87% were HDSAs and 29% women.

The recruitment element of the programme comprises the allocation of bursaries, learnerships and apprenticeships to deserving individuals.

A total of 14 new bursaries were awarded in FY2009 at a cost to the group of close on R1 million, primarily in the fields of mining and chemical engineering. Of the recipients, 46% were HDSAs and 15% were women. A further 16 bursaries were awarded as part of the group socio-economic development programme.

A total of 160 new learnerships were offered in 2009 as part of the company’s skills development programme.

Training at the Skills Development Centre (SDC) at the local technical high school in Rustenburg started in July 2008 with 60 learners from the school. A service level agreement was set up between the Impala Engineering Training Centre and the SDC, bringing the SDC to the norms and standards of the MQA. Basic off-the-job training is offered at the SDC is for diesel mechanics, electricians, fitters and boiler makers. Surveying will be added in FY2010.

In January 2009, the group of learners from the school was increased to 90 and they were joined by 38 students from the Impala Sports Academy, bringing the total number of trainees to 128. The first matriculants completing school will be available for recruitment to Impala Rustenburg in November 2009.

Training is undertaken by the technical teachers at the school, at the end of the normal school day. The workshops are used by the school as part of the normal school curriculum in the mornings.

HDSA representation in management (South Africa)

	FY2010	FY2009		FY2008
	Target %	Total number of employees/members	HDSA % of total employees/ members	HDSA % of total employees/ members
Board	40	8	67	62
Senior management	40	26	27	27
Middle management	40	299	48	47
Total management		333	45	45