Exxaro is a diversified
with interests in specific markets:
coal (controlled and non-controlled), titanium dioxide and alkali chemicals (noncontrolled), ferrous (non-controlled) and energy (non-controlled).
The group has business interests in South Africa, Europe, the United States of America and Australia. Our asset portfolio includes coal operations and investments in iron ore, pigment manufacturing, renewable energy (wind) and residual base metals.
Exxaro is listed on the JSE and was a long-standing constituent of the Socially Responsible Investment (SRI) index, reconstituted as the FTSE Russell ESG Index in 2015. Exxaro is now included in the FTSE/JSE Responsible Investment Index.
MATERIAL ISSUES FOR 2016
Each year, our material issues are distilled from a comprehensive process that includes internal and external stakeholder engagement combined with prudent risk management. Each material issue includes related high-level risks, as indicated:
|Material issue||Related risks|
|Dependency on key customers||
|Licence to operate||
SAFETY AND HEALTH
- No work-related fatalities since July 2014: Exxaro completed 30 consecutive
months without a fatality by December 2016 – having proved we can reach our
target of zero, this is a powerful incentive to all our teams to maintain this outstanding
- Record lost-time injury frequency rate (LTIFR) decreased from 0,17 to 0,09, in 2015, a
- 7 of 13 operations worked a calendar year without a lost-time injury (LTI), and 12
business units achieved the LTIFR target of 0,15
- Focused programme rolled out to empower safety, health and environmental
representatives with the knowledge to identify risks better and contribute more
effectively to reducing safety risks in the workplace.
- Regrettably, Exxaro received the highest number
(5) of section 54 instructions in 2016 (2015: 2), but
all were resolved with the authorities.
- Regrettably, Exxaro received the highest number (5) of section 54 instructions in 2016 (2015: 2), but all were resolved with the authorities.
OCCUPATIONAL HEALTH AND HYGIENE
- Community programme for HIV/Aids
- Integrated wellness programme for employees
- Potential impact of chronic diseases of lifestyle on people’s health and safety in the workplace.
Exxaro – reported occupational diseases (cumulative)
|Work-related upper limb disorders||–||–||–||–||–||–||–||1||–|
HIV/Aids and TB
The prevalence of HIV/Aids across Exxaro is currently estimated at 6%, well below the industry and national average. With appropriate education, counselling and support, 92% of our workforce (excluding contractors) voluntarily tested between 2010 and 2015, and more are seeking treatment.
We recorded a 169% improvement in the number of employees and contractors enrolled on the HIV/Aids programme to 1 978 in 2016 (2015: 733), with 3 129 employees and contractors on antiretroviral treatment (ART).
We are also making headway in slowing the spread of HIV/Aids (see table below). Between January 2013 and December 2016:
|Year||Attended information session||Tested||% tested||Employees testing positive||Enrolled at Dec (cumulative)||On ARVs|
|2013||5 853||3 756||64||314||545||521|
|2014||5 732||2 804||49||261||675||481|
|2015*||11 759||4 158||35||252||453||452|
|2016*||18 845||6 497||34||80||221||1 675|
|Total||42 189||17 215||41||907||1 894||3 129|
* Includes contractors.
Exxaro’s employee assistance programme ensures that any of our people facing difficulties have access to an external counselling service. This is a preventive measure that helps employees manage personal concerns, and assists management in minimising productivity issues.
During the year, our people again used this service for:
- Financial issues
- Personal and emotional difficulties
- Family matters
- Work-related challenges
- Dependency on substances.
- Exxaro’s talent pipeline and feeder schemes enabled over 950 jobless youth to obtain occupational qualifications, in-service training and employment
- Ensuring Exxaro receives tax benefits and SETA grant benefits of over R35 million in the training and development programmes.
- Organisational restructuring has strained employee morale.
Ten years into our journey as one of the largest black-owned mining companies in South Africa, we continue to benefit from developing the skill levels of our workforce and enabling progress as the cornerstone of our commitment to meeting our transformation objectives. Employment equity is just one way to realise this commitment, supported by continuous diversity programmes and engagement at our business units.
Our employment equity strategy is founded on detailed plans developed by each business unit in consultation with its employees and unions. By following these plans, each unit ensures that recruitment and skills development are managed responsibly, advancing transformation without affecting existing positions. Each business unit has a dedicated senior manager for employment equity, as well as an employment equity forum that is actively involved in developing, monitoring and communicating employment plans.
These plans are due for review in 2017, when we will assess our progress over the last five years and implement measures to meet our targets and address areas of concern. We will also consider the alignment of our targets to other legislative guidelines such as the revised mining charter and BBBEE codes.
The breakdown of our annual employment equity reports, as submitted to the Department of Labour, is shown below.
|Category||% black||Number||% black||Number||% black||Number||Target black||Total %||Target
|Junior management||48,47||1 190||16,25||399||64,73||1 589||57,00||74,09||80,00|
|People with disabilities||95||2,00||1,35|
As submitted to the Department of Labour on 31 December 2016.
- Increased investment of R49 million
- Nearly R400 million spent over 10 years.
- All operations now have integrated water use licences (IWULs)
- Environmental licence for Glisa water treatment plant obtained
- Delays in finalising appeals lodged against some projects such as Thabametsi and Belfast.
Energy management procedure
Energy efficiency plans
CO2 emissions reports
Responsive resource utilisation
Energy efficiency reports
Water management procedure
Water management plans
Water-related risk assessment
Water efficiency plans
Financial impact of water management/treatment. Water monitoring and reporting
Waste management procedure (including classification)
Waste transporting, transportation and disposal procedure
Waste management and reporting
Waste efficiency reports
Biodiversity management procedure
Biodiversity impact management
Biodiversity management plans
Ecological effect impact procedure
Biodiversity monitoring and reporting
Ecology efficiency reporting
CLOSURE AND ONGOING REHAB
Mine closure and ongoing rehabilitation procedure
Integrated mine closure plan
Closure objectives – management plans
Mine closure impact assessment
Ongoing rehabilitation monitoring and reporting
Closure and ongoing efficiency reports
Land management procedure
Land management procedure
Operational land management plan
Land disposal strategy
Land management efficiency reports
Air quality authorisations (AEL)
Air quality management procedure
Air quality impact assessment
Air quality management plans
Air quality monitoring and reporting
Energy efficiency reports
committee report 182 KB Executive management’s focus 77 KB Operational review 66 KB Safety and Health 134 KB Occupational health and hygiene 114 KB People 197 KB