In line with regulation 46(C) (iv) of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) we support infrastructure and poverty eradication projects in line with the Integrated Development Plan of the municipalities in which we mine, as well as the major sending areas.
::Social and Labour Plan Projects
In 2012, PPC completed a five-year cycle of social and labour plans in which we committed to investing R60 million over that period on local economic development (LED) projects in our communities. This involved 10 separate social and labour plans covering 28 projects in 12 communities, and partnering with municipalities in six provinces across the country. By the end of the period, we had spent R38 million of the planned R60 million (please refer to the five-year summary).
Social and labour plans are in addition to the group’s own corporate social investment (CSI) projects. PPC continues to engage with all its communities in identifying and implementing sustainable projects.
Our community investment areas remain focused on infrastructure development, poverty alleviation and job-creation projects. Key social and labour plan projects during the year are summarised below:
Atteridgeville Construction Incubator - Completed
To date, PPC has invested over R5 million in developing a construction incubator in the Tshwane (Pretoria) municipal area of Atteridgeville. The incubator is aimed at improving the capacity of small-scale entrepreneurs through a dedicated training and capacity-building programme to improve competitiveness in the construction industry. Stakeholders include the City of Tshwane and the SEDA Construction incubator.
Business incubation has become one of the most viable mechanisms to develop previously disadvantaged small to medium enterprises in South Africa, and all stakeholders agree it is important for government to include private-sector partnerships, as this will underpin success.
In the review period, 32 emerging contractors were selected for a three-year training and mentorship initiative to improve their CIDB* grading by at least one level each year above their entry point on the national contractor development programme. Training includes the technical contractor development framework and business administration skills. The primary aim is to improve the capacity of emerging contractors to operate viable and competitive construction businesses.
The incubator has employed a full-time receptionist and a business development officer and is filling the branch mentor position. A full-time security company has also been deployed to the centre. The programme started on 1 October, and PPC will officially hand over the centre in November 2013 and exit the project.
* The Construction Industry Development Board is mandated by the government of South Africa to promote a regulatory and developmental framework that builds a local construction industry that delivers to globally competitive standards and is capable of supporting the country’s social and economic growth.
::Diepsloot Waste Buy-back Centre – Completed
Diepsloot is a densely populated Gauteng community, with over 7 000 households in formal and informal settlements. PPC Laezonia’s quarry is some 6 km from Diepsloot and sources labour mainly from that community. After the City of Johannesburg identified a serious shortage of waste management facilities in this community, a proposal to sustainably manage daily waste resulted in a buy-back centre that would address an inherent need in the community to turn waste into wealth. PPC Cement invested R3 million towards design, construction and operational equipment for the centre, while regional authorities will be responsible for its management and operation through a sub-contractor. The construction project was completed in July 2012, creating 60 temporary jobs, and the official handover was in November 2012.
A local NGO was selected to run the centre, which currently employs seven local community members permanently. It also assists around 100 members of the community to generate income by collecting and selling waste materials to the centre.
::Lutzville Community Centre – in Progress
In line with the mining right for PPC’s Van Rhynsdorp Gypsum mine, which was granted in June 2012, PPC has committed R500 000 to support the socio-economic development plan of the Matzikama Municipality in Vredendal. PPC will participate in this collaborative project with the local municipality and businesses in the area.
The project entails building Thusong Centre, a multi-purpose resource centre, in Lutzville, to address the dire need of local communities to have a variety of services on one premises. Apart from addressing community needs, the project is directly aligned with some of the desired national outcomes adopted by government in 2010.
Near Vredendal and Van Rhynsdorp in the Western Cape, the Lutzville community is a source of labour for PPC’s Van Rhynsdorp operation. Construction began in July 2013 and is expected to be complete in December 2013, benefiting a population of over 5 000.
::Swartland Waste Water Treatment Works – in Progress
Following a request from the Swartland Municipality, PPC Riebeeck is assisting with the upgrade of the overloaded Riebeeck Valley waste water treatment works, which will benefit a sizeable community. PPC will contribute R5 million over three years, starting in October 2013.
::Lessons Learned in The First Five-year Cycle
Important lessons were learned in our first cycle of social and labour plans. Some projects were not completed while others had to be abandoned in the face of challenges outside our control including:
- Unavailability of land for development.
- Community disagreements.
- Shifting priorities of municipalities.
- Lack of municipal capacity.
In addition, some of our mining operations face significant challenges due to the prolonged and severe downturn in the building and construction industry. This constrains their ability to fund socio-economic development, which is a predetermined percentage of profits.