Socio-economic development

SOCIAL AND LABOUR PLANS

Highlights
  • Daniëlskuil Clinic extension and mobile healthcare facility

Lowlights
  •  Sustainability of social and labour plan projects
  • Approval of new social and labour plans

Socio-Economic Development
Daniëlskuil Clinic extension and mobile healthcare facility

Daniëlskuil Clinic in the Northern Cape is a provincial primary healthcare facility, providing HIV and TB-related treatment, care and support services. It also provides chronic monitoring and proactive healthcare programmes for the improved health and well-being of families in the area. The clinic has faced various challenges, including retention of healthcare professionals, and delivering services to rural areas and outlying communities of Daniëlskuil. PPC Lime, Idwala Lime and Finsch Diamond Mines took a collaborative approach to community development and jointly funded a three-phased project to enhance health infrastructure in the Kgatelopele Municipality.

Phase 1 started in 2012 when a mobile clinic valued at R600 000 was purchased to enable the municipality to deliver health services to the outlying communities of Daniëlskuil. This vehicle also delivers weekly health services to Lime Acres and Tlhakalatlhou (ward 1). A professional nurse and, if available, a nursing assistant run the mobile clinic to assist chronically ill patients as well as basic healthcare patients.

Accommodation has always been a challenge for the Department of Health (DOH) to retain professional staff. A house closer to the clinic was revamped and converted at a cost of R450 000 into two two-bedroom flats to accommodate the health professionals in Daniëlskuil.

The project also included extending the clinic to provide a pharmacy. Previously, the clinic could only dispense basic chronic medication via the nurses. This extension turns the facility into an accredited clinic for which the DOH can appoint a full-time pharmacist – allowing the nurses to concentrate more on their own work. The pharmacy is fully equipped with the necessary safety and security areas to ensure safe and smooth handling, loading and storing for medicines. The clinic also received new medical equipment to the value of R30 000 as part of the donation. This project, envisaged to reach over 3 000 community members, was completed in March 2017 and proudly presented to the DOH and acting mayor of Kgatelopele Municipality.


Value creation

Impact on value

PPC will always endeavour to contribute meaningfully to the most pertinent basic needs of our communities – even in tough economic times. Equally, we are learning to do more with less and work harder to ensure our initiatives in the communities last. Education remains a major focus.

Challenges

  • Sustainability of social and labour plan projects due to the slow delivery of municipal services to communities
  • Approval of the new social and labour plans
  • although documents submitted in 2014 have not been approved, we have continued supporting our communities in line with our corporate values. Funding for new projects proposed to the Department of Mineral Resources (DMR) will be aligned to each mine’s affordability

Mitigating action

We have identified and prioritised stakeholder issues and gaps in our social and labour plan implementation and will address these to ensure harmonious relations with our communities and DMR. We are also engaging our stakeholders on the economic dynamics that affect our business profitability as we identify new projects.

CORPORATE SOCIAL INVESTMENT

Highlights
  • Over R10 million spent on community development across the group
  • Refined corporate social investment (CSI) strategy implemented
  • Focus on education at schools in labour- sending areas in South Africa
  • 10 500 learners across 12 schools benefiting from mobile science lab project
  • Supporting infrastructure development across countries where we operate
  • Extended support to six disability centres across the group
  • Community cooperative set up for supplier development in Rwanda

Lowlights
  • No community projects identified in Ethiopia as yet
  • No social stakeholder return on investment (SROI) calculated to date

The importance of engaging and collaborating with communities in which we operate is guided by our corporate citizenship principles. We continue to play a meaningful role in community development across our operating areas.

Our CSI strategy is underpinned by the philosophy of shared value. It allows for sustainable growth in communities while making business sense for key stakeholders in those communities, government and the business.

Our community investments over the review period were aligned to the United Nations’ sustainable development goals, our business objectives and, most importantly, community needs.

By integrating stakeholders’ needs, our social investment responsibilities become effective drivers of socio-economic development in countries where we operate. Collectively, our initiatives draw on the power of capital to advance business models and entrepreneurs that intentionally create and combine social, environmental and financial value.

Science(sa)
Learners from 12 schools in South Africa benefited from psychometric testing to assist with subject choices
Science laboratory project (South Africa)

Our priority is to enable public secondary schools to produce growing numbers of black learners with quality maths and physical science results. In 2016, we spent R2,6 million on portable science laboratories at 12 schools across eight provinces and introduced information technology into the classrooms.

These laboratories support the South African curriculum and help to address some of the socio-economic needs of public schools in labour-sending areas. We also provided associated software to enhance the teaching and learning experience.

Our support to learners extended to psychometric testing to assist with subject choices and career decisions, particularly in senior grades.

Cement pot-making in Diepsloot (South Africa)

Our support for the Diepsloot skills training centre has introduced local unemployed youth to a programme teaching cement pot-making. They are now completing business development training and will soon sell these pots commercially.

Ulula Ash science lab project identifies engineering learners

A pilot project at the Kriel and Sibongamandla high schools under the Ulula Ash (a PPC subsidiary) mobile science laboratory initiative identified learners with strong engineering aptitude. These learners completed an MQA-accredited skills development course in basic engineering at PPC’s TSA where they gained valuable exposure to the engineering world with the view that they join our learnership programme in the near future.

Ulula
Our community engineering project is identifying future engineers

Employee volunteerism programme

The spirit of employee volunteerism remains well entrenched across our business. Through this programme PPC matched the contributions of 11 employees involved in social initiatives across South Africa. We have also supported non-governmental organisations (NGOs) where our team members volunteer through the community change igniters programme in addition to direct funding from PPC.

Other projects we support in South Africa include Crystal House, Thandulwazi maths and science initiative, Time for Change, Kanye skills training, Learn to Earn, Time for Change, Growing up Africa and Kwa Thema stimulation centre.

CSI SPEND PER PROVINCE IN SOUTH AFRICA
CSI spend

Rwanda

Tailor training at CIMERWA

Rwanda
Cooperative members manufacturing
overalls for CIMERWA

CIMERWA identified the need to create employment opportunities around its factory in Rwanda. A project to train and empower local community members to start their own businesses was initiated in 2015.

Following a needs analysis in collaboration with the local community, CIMERWA offered support in the form of facilities to house the business, and train staff in tailoring and business management. Of the initial intake of 175 members, 90 graduated to start a registered cooperative, Tailor Training Cooperative of Muganza.

CIMERWA continues to support the project by providing a workshop and office space as well as a supplier development initiative by purchasing protective clothing from the cooperative. The next phase is to ensure business sustainability beyond CIMERWA.

Botswana

Tlamelong Rehabilitation Centre

PPC’s ongoing support in 2017 has ensured that the project is sustainable. This centre supports people with disabilities, training beneficiaries in horticultural skills and house-building to make them self-reliant. PPC Botswana’s support is aligned to one of the country’s Vision 2016 strategic pillars: a compassionate, just and caring nation.

Botwsana

DRC

In DRC we continue to support a number of initiatives:

  • Malaria vector control programme: regular spraying and fogging in surrounding villages 
  • Providing water and sanitation to local communities including Malanga school 
  • Established skills training centre
  • Assisting local communities with ambulance services

2018 and beyond

Our focus for the year ahead remains on sustainable projects to enhance our SROI. We are pleased that the key strategic initiatives implemented over the past year have been successfully executed. Now that the strategy roll out is complete, we will concentrate on the process of monitoring and evaluating their impact to ensure we make a meaningful contribution to the broader society in which we operate.

Procurement

The weighted BBBEE procurement spend, under the dti’s revised codes of good practice, was R4,8 billion. This constitutes 85,4% of total measured procurement spend. Our spend with suppliers in the different BBBEE levels is shown below:

Weighted BEE procurement level (March 2017)

BBBEE level Value
(excluding VAT)
R
Recognition
%
Weighted
BEE
procurement
R
%
Level 1 286 914 183 135 387 334 148 5,12
Level 2 1 743 767 413 125 2 179 709 266 31,13
Level 3 969 212 580 110 1 066 133 838 17,30
Level 4 857 559 570 100 857 559 570 15,31
Level 5 218 274 560 80 174 619 648 3,90
Level 6 97 804 548 60 58 682 729 1,75
Level 7 149 795 908 50 48 902 274 2,67
Level 8 111 869 361 10 11 186 936 2,00
Non-compliant 1 166 782 409 0 20,83
Total 5 601 980 535   4 784 128 411 100

Highlight: In the FY2016 verification audit, procurement at PPC exceeded the revised dti compliance target of 80% and met the definition of a level 3 contributor to BBBEE for enterprise and supplier development, specifically preferential procurement.

In terms of the 2014 mining charter, PPC exceeded targets, except for multinational contributions.

Supplier assessments – societal impact in our areas of operation

We have made our procurement platform more accessible to potential suppliers. Our educational drive since 2014 has yielded positive results in the supply base in terms of understanding PPC’s requirements. These requirements have now been incorporated into all commercial agreements. PPC’s procurement department now holds suppliers accountable for their transformation objectives, contributing to the broader social compact. By prioritising procurement from black-owned and black women-owned companies, we are promoting entrepreneurship and enterprise development in local communities at regional, provincial and national level, aligned to our social and labour as well as local economic development plans.

PPC will continue to implement and manage enterprise and supplier development programmes aimed at suitably qualified existing and potential black and black women-owned suppliers, and to align with government initiatives, eg black industrialists programme. These programmes will be commercially oriented and differentiated from other socio-economic development programmes. Throughout the enterprise and supplier development programme, the procurement team’s primary task of identifying and selecting quality, reliable and cost-effective suppliers will remain unchanged. Annual performance assessments will monitor the impact of these programmes on our areas of operation.

Supplier assessments

PPC annually assesses its key suppliers using a structured questionnaire to measure the health of the supplier’s business in the following areas:

  • Commercial
  • Engineering and technical
  • Environmental
  • Finance
  • Preferential procurement
  • Health and safety
  • Human resources
  • Quality and business continuity

This helps PPC mitigate risk and ensures that, in addition to price and quality, the overall value propositions from suppliers are realised.

Supplier engagement

To ensure continuity in delivery, pricing and quality across the value chain, PPC continues to evaluate the performance and progress of its supply base in implementing transformation programmes. Aspirant suppliers that do not meet our business requirements are profiled for potential supplier development and are encouraged to engage PPC through our web-based procurement portal (www.ppcprocure.co.za), which is also a tool to assess the supplier’s compliance to labour and SARS requirements and human rights practices, among others.

Outlook

The supplier development programme will be key to capacitating emerging and medium-sized suppliers in PPC’s value chain and ensuring PPC continues to contribute to economic development.