Sustainability / Economic Value

Economic Value

Sustainabilty -overviewmain (1)

Transformation Philosophy

::REAL Transformation

  • We continue to engage with national and provincial government departments to align our broad-based socio-economic transformation objectives with those of government. Progress is guided by our REAL (relevant, empowering, actualised and lasting) transformation philosophy, the heart of all our social performance initiatives.
  • PPC is firmly committed to advancing black economic empowerment in South Africa, given the importance of meaningful mainstream economic participation by black people to meet the country’s socio-economic objectives.
  • After applications to convert our old-order mineral rights were submitted to the Department of Mineral Resources (DMR) in 2008, five-year social and labour plans were submitted for approval early in 2009. These plans embody our commitment to accelerating our broad-based socio-economic transformation process. While mining licences move through the process of being converted, we continues to engage with the department and to implement SLPs.

PPC Women’s Forum

The PPC Women’s Forum, whose vision is to attract, nurture and advance female talent to lead PPC, is setting the standard in transformation, empowerment and the upliftment of people, especially women in business and the communities in which we engage. The forum was launched in October 2011 to facilitate dialogue among women and create support networks drawn from skilled and experienced men and women in PPC. It has become a leading forum of its kind – not only for the women of PPC.

In 2013, the forum achieved a number of objectives and milestones, including:

  • Representation of women in the workforce up from 18,5% in 2011 to 21,7% in 2013.
  • Close to 30% female representation at executive level.
  • Rollout of the forum to all sites, including Botswana and Zimbabwe.
  • Developing a pipeline of female leadership through mentorship, coaching and programmes for women in management.
  • Recognised as 2013 Gender Mainstreaming champions PPC is a signatory to the UN Women Empowerment Principles and the forum is promoting implementation of the following principles:
  • Establishing high-level corporate leadership for gender equality.
  • Promoting education, training and professional development for women.
  • Ensuring the health, safety and well-being of all employees.
  • Treating all women and men fairly at work – respect and support human rights and non-discrimination.
  • Promoting equality through community initiatives.

Through the forum, the women of PPC are developing their potential, and adding an invigorating dimension to the workplace.

Social and Labour Plan

Having achieved successful conversion of 9 out of 10 of our mining rights to new order mining rights, we remain committed to responsible and sustainable development of South Afirca’s mineral resources. We continue to engage government and local municipalities to identify meaningful and sustainable projects for the new 2013 – 2017 Social and Labour Plans and to comply with recommendations of the DMR to achieve 100% execution of our mining licences.

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.

B-BBEE Scorecard / Preferential Procurement

PPC supports preferential procurement as a driver for economic transformation and broad-based black economic
empowerment (BBBEE). We are committed to working with our existing suppliers to transform their companies
and their own suppliers, as well as sourcing products and services from new suppliers that embody the principles
of transformation.

For the review period, total measured spend was R4,65 billion (2012: R3,5 billion) of which 89% (R4,1 billion)
was BEE-recognised spend in terms of the dti Codes of good practice. PPC has consistently met the
compliance target of 70%.

In terms of preferential spend against the mining charter, we met or exceeded all targets, except for
multinational contributions. The DMR is formulating a model to implement multinationals’ 0,5% contribution to
social development.

Spend category 2014 target % 2013 target % 2013 actual % 2012 actual %
Capital goods 40 30 30 23
Consumable goods 50 40 47 43
Services 70 60 60 61

BBBEE Certificate

Sidebarafricaicon2 (2) As the leading supplier of cement and related products in Southern Africa, PPC Ltd has nine manufacturing facilities and three milling depots in South Africa, Botswana and Zimbabwe that can produce around eight million tons of cement products each year. As part of its strategy and long-term plan to grow revenue by 40% outside of South Africa, PPC is expanding its operational footprint into the rest of Africa, including Algeria, Botswana, DRC, Ethiopia, Mozambique, Rwanda and Zimbabwe. PPC also produces aggregates metallurgical-grade lime, burnt dolomite and limestone.

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