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Our performance at a glance

Overview of our principal achievements, challenges and strategic focus areas

This section provides an overview of our principal achievements during the financial year under review, and outlines our key challenges and strategic focus areas going forward. It also includes a table of quantitative performance data for the last two years.

Principal achievements

  • Continuing strong financial performance, which provides the foundation for our sustainability performance.
  • Increased our workforce by 35.76% (to 22 776 employees and contractors) and anticipate a steady increase in employees in line with our ambitious growth objectives. There were no retrenchments this year.
  • Our Modikwa operation achieved six million fatality-free shifts.
  • Continuous improvement in our management of HIV & AIDS in the workplace, as measured against a performance evaluation scorecard and in alignment with the primary aims of the National Strategic Plan for South Africa (2007 – 2011).
  • For the second year, our employment equity and gender diversity levels exceeded the targets set out in the SA Mining Charter.
  • Increased our total Corporate Social Investment spend (CSI, LED and ARM BBEE Trust) to R72.9 million (R60 million in 2009).
  • Calculated and analysed our corporate carbon footprint, and appointed a Group Electrical Engineer to assist in managing climate change and energy efficiency, with a view to developing a long-term carbon management strategy and implementation plan.

Challenges and strategic focus areas

  • Preventing all workplace injuries and ensuring zero fatalities. We regret to report one work-related fatality this year. Our injury frequency rate remained relatively consistent and in line with industry standards. Enhancing our safety management is a primary focus.
  • Developing, attracting and retaining an adequate skills pool (internal and external) to meet our ambitious growth objectives.
  • Complying with the requirements of the International Council on Mining and Metals (ICMM), and aligning with the Broad- Based Socio-Economic Charter for the Mining Industry (Mining Charter), as recently revised.
  • Further integration of sustainability risks into our Enterprise Risk Management system, and improving our systems for measuring and monitoring our sustainability performance and reporting practices.
  • Updating our policies and systems to improve data collection and reporting, in order to be able to make more informed decisions relating to sustainability.
  • Formalising our stakeholder engagement processes.
  • Decentralised management framework presents challenges to embedding sustainability throughout our operations. We continue to establish Group policies for key issues to ensure a congruent approach to developing and managing the business.
  • Meeting emission reduction targets at our smelters, and improving our water management.
  • Ensuring BBBEE and BEE procurement supplier accredi tation.
  • Continued implementation of our housing strategy and furthering our transformation strategy in line with the new objectives of the revised Mining Charter.
  • Developing a greenhouse gas (GHG) emissions reduction strategy and a climate change strategy, and respective implementation plans.

Production volumes

  F2010 F2009
Platinum Group Metals (ounces) 636 383 621 888
Nickel concentrate (tonnes) 46 416 52 029
Iron ore (tonnes) 9 286 000 9 304 000
Manganese ore (tonnes) 1 973 000 3 138 000
Ferromanganese (tonnes) 252 000 216 000
Charge chrome (tonnes) 200 000 169 000
Chrome ore (tonnes) 587 000 684 000

Our sustainability performance year-on-year

Performance indicator F2010 F2009
Economic and related core baseline indicators    
Revenue (Rm) 11 425 10 712
Sales (Rm) 11 022 10 094
Duties, levies and taxes paid (Rm) 1 009 1 727
Headline earnings (Rm) 1 714 2 317
EBITDA (Rm) 3 907 4 484
Purchased materials and services (Rm) 5 624 4 201
Value added 5 653 6 968
*Procurement of capital goods, services and consumables from BBBEE suppliers (%) 52.5 (target was 40%) 37.3
Number of environmental administrative penalties/fines 2 None
Employee issues    
Total number of all ARM employees and contractors 22 776 16 777
– Employees (permanent) 10 281 9 643
– Contractors (mainly used in capital projects) 12 495 7 134
New jobs created (direct employment only) 802 896
Employee turnover (excluding contractors) % 5.7 4.5
Investment in employee training and development    
– total expenditure (Rm) 50 57
– % of payroll 3.6 6
Employment equity (% representation of previously disadvantaged groups among permanent employees)    
– Top management 44 44
– Senior management 32 32
– Professionally qualified 45 47
– Technically qualified 67 56
Lost Time Injury Frequency Rate (LTIFR) (/200 000 man hours) 0.770 0.736
Reportable/serious accidents 90 82
Number of lost workdays due to industrial action 2 411 115
Environmental issues    
Total water withdrawn (m 3) (municipal, surface and groundwater) 15 060 418 14 314 155
Energy usage    
– electricity (000 kWh) 2 003 918 2 038 751
– oil (000 litres) 3 626 2 788
– diesel (000 litres) 55 732 54 625
Emissions    
Carbon footprint equivalent (equivalent tonnes CO2) In the process of determining 2 664 549
– CO2 emissions – direct (tonnes) (Cato Ridge and Machadodorp only) 562 487 748 473
– NOx (tonnes) 1 113
– SOx (tonnes) 1 559
– Particulate matter (tonnes) 350
Domestic waste (tonnes) 38 960 37 834
Corporate social investment    
CSI (Rm) 14.5 19.3
LED (Rm) 43.8 28
ARM BBEE Trust (Rm)** 14.6 n/a
Total community upliftment and social investment (Rm) 72.9 60
* Non-financial data is based on 100% (vs attributable to equity), unless otherwise stated.
* EE stats: Reported annually in October of each year, in line with SA Department of Labour.
* LTIFR: Injury rates are measured per 200 000 man hours, in line with general SA practice, and include both ARM employees ontractor and incidents.
* Environmental indicators: we continue to improve our systems for measuring and monitoring our performance to ensure comprehensive and reliable data. Accordingly, our figures for F2009 have in certain cases been restated.
* Water usage: 2009 figures exclude Nkomati – consumption at Nkomati was 490 000 cubic metres, but recycling rates are not red. measu
* CO2 kg figure for all mines not available (mines are currently in the process of establishing emissions inventories).
* Energy usage: a nominal amount of petrol is used in transport at select operations and is not deemed material for reporting.
** Dividends paid in F2009 but project spend only from 1 July 2009.
 

Sustainability report

Sustainability Report 2016


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