Limpopo Business 2018-19 edition

FOCUS Building a strong

FOCUS Building a strong regional economy Local businesses are getting a foothold as suppliers to the Palabora Mining Company. Palabora Mining Company (PMC) is the major mining project occurring in Phalaborwa that is integral to the survival of Phalaborwa community. It is a key contributor to the local employment, directly and indirectly. The population of Phalaborwa is roughly 150 000 people and PMC mine employs 4 990 permanent staff, of which 3 995 are local. This represents more than 80% of the staff complement. Palabora Link: Enterprise and Supplier Development (ESD) In March 2018, Palabora Mining Company announced the launch of Palabora Link, the programme which combines the company’s support for and collaboration with local businesses in the Enterprise and Supplier Development (ESD) programme. This is building on the existing programme, which has been running for several years. The Palabora Link Enterprise and Supplier Development Programme uses the supply chain and service requirements of the mine to benefit local businesses. The objective is to create alternative, sustainable industries that employ local community members and help to grow the local economy. A total of R40-million has been allocated over a three-year period to support the Enterprise and Supplier Development programme. The Enterprise Development programme runs for 24 months and has 18 companies currently benefitting, while the Supplier Development runs for 36 months at a time and currently has 19 companies signed up. In 2013, PMC initiated a Supplier Development programme aimed at incorporating members of the community into the business together with the five local traditional leaderships. The strategy aimed to identify businesses in the community that are keen to become part of a supplier base to PMC and to offer them an opportunity to become self-sustaining and expand their business beyond the immediate mining environment. Opportunities to the value of over R100-million were made available to the local companies. LIMPOPO BUSINESS 2018/19 78

FOCUS This initiative further strengthened the credentials of PMC and moved the company beyond compliance. The intention is to grow an industry of reputable small and medium-sized enterprises that can create further jobs and sustain the livelihood of Ba-Phalaborwa beyond mining. Beneficiaries receive development assistance in the form of entrepreneurial training, funding support, administrative support or the promotion of joint ventures and partnerships which will result in substantive skills transfer. The main categories for funding small enterprises are: • Flagship projects: Manufacturing broadly defined and including agricultural enterprises (poultry, meat, cattle) and larger food businesses. • Special projects: The three primary focus areas are the construction industry, hospitality (including guest houses) and bakeries (many of which are co-operatives). • General projects: This covers any business that is oriented towards customer service, including hair salons, car washes, tuckshops, small traders and game shops. Health In order to meet the needs of the communities and raise the standard of services, the Palabora Foundation worked with the SABS to put together a menu of services that would benefit not only a clinic but a Wellness and Disease Management Centre that will comply with the National Standard for Comprehensive Health and Disease Management. The structure of the facility was therefore designed to comply with SANS16001. The structure has been completed and the facilities are ready for beneficial usage by the communities. In April 2018, a 24-hour emergency health centre, MarulaMed, was launched to cater for Phalaborwa community as there is no private clinic available in the area. Community Taking into account the integral part played by the mine in relation to the community, PMC has started a number of initiatives aimed at improving the lives of the community. These include, road construction and rehabilitation, socio economic development projects, enterprise and supplier development projects, soccer tournament and many others. Employer of choice Since its inception, PMC has been at the forefront of employment practices in the local mining industry. Palabora aims to remain industrycompetitive through its favourable conditions of employment. This is reflected in the utmost importance devoted to the safety and health of employees in order to remain efficient and profitable as a business. The appointment of Historically Disadvantaged South Africans at professional and managerial levels has increased from 44.8% at 31 December 2010 to 58% at 31 May 2015, to 60% in May 2016. The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees; and practising sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates. PMC acknowledges and respects stakeholders’ interests and concerns, striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and services, both reliably and responsibly, at national and global level. Palabora always aspires to a “win-win” solution when resolving problems and experience has shown that this can only really be done jointly, with mutual respect and understanding. An important outcome of the close collaboration with unions has been the role they played in encouraging all employees to participate in the various medical aid schemes offered by the company. 79 LIMPOPO BUSINESS 2018/19