Sustainability

Social Performance

Socio-economic development

PPC's old-order mineral rights conversion applications were submitted to the Department of Mineral Resources in 2008. Following formal feedback on these applications from the department, amended social and labour plans were submitted for approval early in 2009. These plans embody PPC's commitment to accelerating its broad-based socio-economic transformation process.

In its 10 social and labour plans submitted to the Department of Mineral Resources, PPC has committed to invest R60 million over five years on local economic development (LED) projects in its communities. This involves 28 projects in 12 communities, partnering with municipalities in six provinces across the country.

To date, PPC has spent over R17 million of a planned R60 million implementing projects approved by the department and agreed with municipalities, over and above the group's own CSI projects. In addition, PPC continues to engage with all its communities in identifying and implementing sustainable projects.

The three current areas of investment span infrastructure development, poverty alleviation and job-creation projects. Local economic development projects implemented during the year include:

• Youth centre in Swartland, Western Cape
  In a milestone initiative, PPC has entered into a memorandum of agreement with the Swartland local municipality and Goedgedacht Trust (based in Germany) to invest R3,5 million over the next five years in building a youth centre. This investment will support the actual construction work and all infrastructural development around the centre. Labour will be sourced solely from the local community.
  
  The centre will house a gym, educational facilities such as a library, a computer technology centre and a trauma room that will be used by the local SAPS to provide counselling to victims of crime. Courses provided will include life skills, youth leadership programmes, health and fitness, cultural exchange programmes, drama, choir and music.
  
  With unemployment being one of many social challenges in the region, the Goedgedacht Trust will embark on educational awareness and training/capacity building programmes to enable youth in the local community to secure future employment.
  
  This initiative is a signal example of public-private partnerships or PPPs being extended beyond South Africa's borders to include foreign funding agencies.
• Installing solar panels at Diepsloot skills centre, Gauteng
  Diepsloot is a densely populated area of formal and informal settlements in northern Johannesburg. Although the Diepsloot skills centre was built in 2007, the lack of electrical infrastructure made its chances of becoming a sustainable success slim. After engaging with the municipality, the ward and the community itself, PPC Laezonia invested R1,7 million in installing solar energy infrastructure - identified as a sustainable solution to develop the full value of the centre and boost skills development.
  
  The centre supports projects such as adult basic education and training (ABET), sewing and soap-making. A candle-making project is in the pipeline. These projects will be a source of income for the 110 community members involved. The centre has already created 23 temporary building and installation jobs which did not require electricity during training. PPC's investment in solar power (75 photovoltaic panels) will not only drastically reduce the centre's electricity costs, but ensure a continuous power supply.
  
  In addition to providing infrastructure, PPC will continue to support the entire project through coaching and mentorship to ensure sustainability.
• Ostrich-farming project, Klipplaat, Eastern Cape
  In December 2009, PPC and the local iKwezi municipality launched an ostrich-farming project at Hardwood Farm for 16 beneficiaries from the nearby communities of Jansenville and Klipplaat.
  
  Over the past year the project has flourished, with ongoing infrastructure development on the farm and training by a local ostrich specialist. The team has completed the required holding pens, division of chicken-rearing pens and built necessary shaded areas. PPC also funded a vehicle to collect eggs from the surrounding veld on the day they were laid to maximise the survival rate of chicks. The most significant development was the installation of a much-needed water system which feeds drinking troughs throughout the camps. Because ostrich farming is a demanding business in an arduous environment, the attrition rate has been high but the remaining nine beneficiaries have proved their mettle.
  
  The farm has been registered as an ostrich-producing entity, which will enable the beneficiaries to realise profits by monitoring the 12-month-old ostriches to determine whether they should be retained as breeding stock or sold as produce.
  
  In addition to developing the skills needed to raise ostriches, the beneficiaries have benefited from management and life skills training provided by PPC. This will ensure they are able to manage the project as a sustainable enterprise going forward.
• Creating opportunities in Motherwell, Eastern Cape
  In May 2010 PPC had already invested R3 million in terms of its commitments to the Mining Industry Partners. The goal of this programme is to implement high-impact local economic development projects in Motherwell, which in turn will create jobs and entrepreneurial opportunities for local inhabitants and bridge the frontiers of poverty, which is rife in the area.
• Improving water quality in Wittewater, Piketberg, Western Cape
  PPC, together with the Bergrivier Municipality and the local Moravian Church, identified the community's dire need for a potable water supply. Having experienced substandard water quality and severe water shortages, the 1 500 inhabitants of the Wittewater community will now have access to clean water.
  
  PPC launched the Wittewater water treatment and supply plant project in a handover ceremony attended by Agriculture, Forestry and Fisheries minister, Tina Joemat-Pettersson. With 9,5% of the De Hoek workforce residing in Wittewater, the project forms part of PPC De Hoek's social and labour plan which aims to enhance the lives of all PPC employees and the areas they live in. Comprising two phases, the project has already upgraded existing water pumps in the community with the upgrade of the existing water plant set to start later this year. Requiring an investment of R1,2 million by PPC, the project also provided temporary employment for over 25 members of the community.
• Household electrification in Northern Cape
  As part of the integrated development plan of Kgatelopele municipality, the first phase of electrifying stands in Kuilsville and Tlhakalatlou was completed in the review period. In this phase, power was supplied to 120 of 287 identified erven with a local contractor executing the work under the auspices of a consulting engineering company. The award of tenders for the second phase of 167 erven is scheduled for completion before year end 2010.
• Paving access roads, Northern Cape
  In line with Kgatelopele municipality's integrated development plan, PPC Lime is working with Idwala Lime to pave access roads in Kuilsville and Tlhakalatlou. With the consulting engineers and construction company already appointed, phase 1 is scheduled to begin shortly. However, because asbestos fibre was found during preparatory work, environmental consultants have been commissioned to advise on the best way forward. Once this challenge is addressed, the project will use local labour and bricks sourced from a local manufacturer.

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Projects planned to start in 2011

• Community clinic - Mafikeng, North West
• Small business hive - Bergrivier, Western Cape
• Multipurpose skills development centre - Tshwane (Atteridgeville), Gauteng
• Construction of Legonyane Skills Centre - Brits, Madibeng, North West
• Construction of second phase for Ramokoka Primary School, Moses Kotane, North West
• Construction of youth centre - Swartland, Western Cape.