SOCIAL AND LABOUR PLAN. Overview of the Presentation DME Community Development Perspective Best Practice Procurement Housing and Living Conditions Conclusion.

SOCIAL AND LABOUR PLAN

Overview of the Presentation• DME Community Development

Perspective

• Best Practice

• Procurement

• Housing and Living Conditions

• Conclusion

MINING AND COMMUNITY DEVELOPMENT

DME PERSPECTIVE

OBJECTIVES Foster constructive working relationships and alliance among

communities, companies and Government

Build Capacity to address sustainable development

Improve opportunities for the sustainable development of the mining communities and regions during all phases of the mining cycle

Promote value adding potential of mine development in support of local and regional social and economic sustainable development efforts on funded priority projects in an area of operation.

RELATIONSHIP BETWEEN MINING AND COMMUNITY DEVELOPMENT

Community Development is the process of increasing the strength and effectiveness of communities Improve the people’s quality of life To enable people to participate in decision making in order to achieve

greater long-term control over their livesSustainable community development programmes are those that contribute to the long-term strengthening of the community’s

viability The essential element is for the communities to survive beyond the

orebody depletion During the lifespan of the mine, the community can be supported by

mining practices, spin offs that can convert one local asset to another local asset –extraction of a natural resource capital to sustainable human and social capital

ROLE OF THE MINING INDUSTRY

Mining industry can act as a catalyst for positive change in areas where there could be little opportunities for economic and social development

Adopt a strategy approach- development activities linked to long-term strategic objectives for the company and aligned with existing and future community development plans

Ensure consultation and participation

Work in partnership- private, government, community and other stakeholders bring different skills, resources shared interests and objectives to achieve intended goals

STRATEGY TO SUPPORT COMMUNITY DEVELOPMENT

Mining companies should focus on building expertise, share skills in trade, administration,

management, finance, operating and maintaining mobile and fixed machinery

Promoting local supplier and contractor capability Facilitate growth of all activities which are required for

mining The building of equipment , machinery and supply of good

and services should be localised – Creation of jobs Local agriculture development is also a key area for

sustainable community development Support and participate in infrastructure development and

basic services – housing etc

COMMUNITY DEVELOPMENT IS GOOD FOR BUSINESS If communities benefit greatly from a mining operation, they

will have a significant role in seeing the mine operate succesfully and help the company to overcome obstacles that could adversely affect the mining operation

If the company contributes to the well-being and development of the community, the company will benefit in terms of the following:

- Continuity of operation- Reputation - Resources- Reduced closure costs and rehabilitation - Productivity and local support - Local workforceSUCCESS SUCCESS SUCCESS

Local Economic Development (LED) Approach Requirements

• Provide the social and economic background of the area of operation / sending area• Provide the activities of the area• Provide the needs of the area• Provide the key priority areas to be addressed• Provide the LED plan in line with the targeted areas of need• The projects should address and be aligned to the needs

Local Economic Development

Purpose• Address an identified need within a community• Ultimate beneficiaries should be community and

not an individual• Project should be sustainable• Project should have clear measurable deliverables• Project should have clear timeframes• Improve quality of life of people• Eradication of poverty• Reduction of unemployment • Sustainable job creation

Procurement Progression Plan

Requirements• Give HDSA preferred supplier status• Identification of current level of procurement i.t.o. capital goods, consumables and services (Form T)• Commitment to a progression of procurement from HDSA over 3-5 Years i.t.o. capital goods, consumables and services (Plan)Acceptable or Credible Procurement• Credible level and type of procurement• Good mix / no bias towards the easy to do• Meaningful at local level• Non availability of local suppliers - Intervention

Housing and Living Conditions

Employees• Current status of employees housing• Current status of hostels

Communities• Current status of houses within the community• Municipality’s strategy to address housing

Plan• Plan to promote homeownership to employees• Plan to upgrade hostels• Plans should integrate with the municipality’s plan

BEST PRACTICE

New Mining Right Company identified the needs Amongst other needs, the following were

identified as priority:

- housing

- access to water

- Electricity

In response Company built better houses for community

members Water was made available to the communities

Plans underway to supply electricity

OLD HOUSES

ROLE OF DME

In line with the objectives: Ensure participation of mining companies in IDP and related

developmental forums Participate in IDP Forums Ensure mines and municipalities and communities work

together Ensure mines contribute to local economic development by

addressing the set objectives Assess LED projects to be implemented in line with the set

standards Liaise with both municipalities and mines in the acceptance

of LED project where necessary Where relevant, assist in the identification of LED projects Monitor progress on identified projects

• The MPRDA is a better piece of legislation than Minerals Act, 1991,

• The MPRDA has rejuvenated the mining industry,

• There is still a long way to go.• SA belongs to all who live in it.

Conclusion

THANK YOU