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Corporate social responsibility

ARM is committed to improving the living conditions of the people in our host communities. We focus on local employment, local business and supplier development, corporate social investment (CSI), local economic development (LED), and social and labour plan (SLP) projects.

Operating context

ARM's strategy and values are at the centre of our commitment to partnering with local communities and contributing to improving lives. Most of our operations are located in remote areas and include communities with pressing socio-economic challenges. ARM's investments in infrastructure and social projects in these areas can have a significant positive impact on these communities, improving their resilience and sustainability.

PSLPs are established through robust engagement with communities, local and national government, and through alignment with regional integrated development plans (IDPs) in terms of the Mineral and Petroleum Resources Development Act, 28 of 2002. The LED projects, agreed to by all stakeholders during the SLP process, provide the basis for compliance with the social investment aspect of the mining licences at our operations.

F2018 performance overview

Perfomance CSR
* 100% basis and including the ARM BBEE Trust.

How we manage corporate social responsibility

LED projects are implemented at our operations as part of ARM’s SLPs, which are agreed and regularly revised in close consultation with communities, local government and the IDPs. CSI initiatives at the operations support projects outside the SLPs that address specific community needs.

Potential projects are carefully assessed to ensure alignment with ARM’s corporate social responsibility (CSR) strategy, to ensure that they effectively address community needs and are meaningful and sustainable.

CSR initiatives at ARM Corporate level include the ARM Chairman's Fund, the Educational Trust and the ARM Broad-Based Economic Empowerment (BBEE) Trust

ARM Ferrous participates in a working committee with the other manganese producers and the Minerals Council South Africa to develop sustainable solutions to the various CSR challenges in the Northern Cape.

Implementation of agreed CSR projects are monitored on an ongoing basis and reported at least quarterly at Social and Ethics Committee and Sustainable Development Committee meetings at corporate, operational and divisional levels.

CSI and LED

The projects we support through our CSR expenditure focus on building capacity in communities and prioritise women, people affected by or vulnerable due to HIV/Aids, the advancement of people living with disabilities, youth and the socially destitute. In F2018, 68% of our total CSI and LED spend was allocated to improving infrastructure in local communities to support socio-economic development and improve quality of life. Another 13% was allocated to Enterprise and supplier development.

By supporting socio-economic development and fostering entrepreneurship, we further our strategy and align with our values by improving living conditions in the communities in which many of our employees live, build our relationships with host communities and develop resilience and sustainability in the areas in which we operate.

CSR expenditure

1 Enterprise Supplier Development at Beeshoek Mine.

CSI spending decreased by 7% to R21 million with 33% of the total spent on education projects and 25% on capacity building. LED expenditure increased by 46% to R135 million in F2018, 79% of which was allocated to infrastructure development and 15% to enterprise development initiatives.

In total, CSR initiatives created 781 jobs in F2018 (F2017: 634).

Employee volunteering is encouraged and is facilitated through the human resource (HR) function at Corporate Office, and the HR or CSR function at the operations. Employees volunteer their time or make donations through initiatives such as Mandela Day and the Motsepe Foundation Christmas Drive, which delivers toys to schools, orphanages and childcare facilities across the country.

CSR expenditure table

LED projects supported in F2018

Highlights of some of the LED projects supported by ARM operations during F2018

Black Rock Mine:

  • Contributed R20 million towards the Kuruman Bulk Water Project. This was not part of the current year budget but was requested during the Ga-Segonyana Local Municipality stakeholder update meeting on ongoing projects. Over the past three years, Black Rock Mine has contributed R49 million towards the Kuruman Bulk Water project.
  • Invested R1 million in the construction of internal reticulation from water tanks and communal pre-paid stand pipes in Gamasepa Village, Joe Morolong Local Municipality – beneficiaries include the estimated
  • 185 households of the Gamasepa community and 10 temporary local jobs were created.
  • Erected 85 ventilated improved pit toilets in the Magobing West community, Joe Morolong Local Municipality, creating 24 temporary local jobs.

Two Rivers Mine:

  • Established a water storage facility for 21 households in Buffelshoek, creating 10 full-time jobs.
  • Contributed R1.4 million to Ngwanangwato Secondary School to construct three new classrooms for the benefit of 135 learners in grades 10, 11 and 12 from the Ga-Rantho and Ngwaabe communities.

Modikwa Mine:

  • Constructed a road to improve access and road safety for the Swale community. The mine also supported the construction and installation of two overhead lights in the Hwashi and Maandagshoek communities, improving security and road safety at a cost of R1.2 million.
  • communities, improving security and road safety at a cost of R1.2 million.

Khumani Mine:

  • Invested R9.7 million in upgrading the access road into Kathu, refurbishing the road base and constructing a new asphalt layer to improve road safety conditions and traffic control.
  • Contributed R17.9 million in the provision of water and sanitation infrastructure for 325 households in Olifantshoek – 82 temporary jobs were created for local people and five local sub-contractors were appointed.
 

Sustainability report

Sustainability Report 2019


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