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Sustainable Development Report
Richards Bay Minerals

Communications Department
P O Box 401 Richards Bay 3900 South Africa
Tel: +27 35 901 3111
Fax +27 35 901 3442
email: communication@rbm.co.za
www.rbm.co.za                                2016 | Sustainable Development Report
Sustainable Development Report
RBM has invested R73 million in new roads in local communities

RBM has spent R60 million since 2006 in a collaborative effort to improve the
quality of education in host communities and in the broader region

                                                                                       2016 | Sustainable Development Report
RBM accounts for half of KwaZulu-Natal’s mining output

In 2010 Rio Tinto secured a majority shareholding with a 74 per cent stake in
RBM. This was the single biggest foreign direct investment in the South
African mining industry up to that time

RBM work in partnership with stakeholders on a host of issues, from community
development to environmental management                                                Table Of Contents
R1,5 billion+ has been spent on host community infrastructure, skills and              1   At a glance                      2
enterprise development in the last 20 years
                                                                                       2 About us                           4
RBM spends millions annually on improving the quality of education in host             		 MD’s statement                    4
communities and the wider region                                                       		 Organisational profile            6
                                                                                       		Governance                         17
RBM is a major employers and the single largest taxpayer in KwaZulu-Natal.             3 About this report                  21
Over the past 10 years the company has contributed R8,5 billion, or five per cent of
the province’s total Gross Domestic Product (GDP)
                                                                                       		Report profile                     21
                                                                                       		 Sustainability framework          21
                                                                                       		 Material aspects and boundaries   22
Rio Tinto was the first mining company to eradicate mining hostels in                  		 Stakeholder engagement            22
Phalaborwa (PMC) in the 1980s. This led to better living conditions and improved
quality of life for employees                                                          4 Economic                           25
                                                                                       		 Economic performance              25
Rio Tinto appointed the first black South African managing director, for               		 Market presence                   25
Richards Bay Minerals                                                                  		 Indirect economic impact          26
                                                                                       		 Procurement practices             27
Rio Tinto appointed the first female managing director in the South African            5 Environment                        35
mining industry
                                                                                       		Energy                             36
                                                                                       		Emissions                          37
RBM’s enterprise development programme targets host communities, and over 60           		Water                              38
small and medium size enterprises have been developed in the last two years            		Biodiversity                       39
                                                                                       		Waste                              40

Partnerships with municipalities extend to the provision of potable water to
households in host communities, contributing R17 million since 2014
                                                                                       6 Social                             42
                                                                                       		Employment                         42
                                                                                       		Society                            50
                                                                                       		 Human rights                      51

                                                                                       7   GRI content index                55
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                                        At a Glance

                                        RBM’s 40th Anniversary

                                        Certified Top Employer 2017 by Top Employer’s Institute

                                        Gold Certificate (4-Star) and Team Merit Certificate from The Institute
                                        Of Waste Management South Africa

                                        Series of Work Stoppages due to Community Unrest

                                        Loss of Key Staff Members

                                        Rio Tinto-Led Investigation Into Allegations of Misconduct in Terms
                                        of our Code of Conduct - The Way We Work

                                        Best Safety Year Ever - Two Million All Injury Free Hours

                                        Zero Fatalities on Site

                                        Three Eco-Logic Awards

                                        Winner KZN Top Business Awards in the Mining and Quarrying Category

       2                                Successful ISO 9001 Audit Against New Standards
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                                                                                                                                                                                                                      Sustainable Development Report | 2016
                                        About Us

                                        We celebrated our 40th birthday this year. In 1975 it      The safety of our employees, our contractors, our         Water remains a critical issue for us as the drought
                                        was decided that the pilot plant, built in 1973, was       visitors, and our communities is of paramount             continues and rainfall unfortunately has not occurred
                                        worth scaling up to an industrial size, and on 1 April     importance. Members of host communities also              in catchment areas. Our work with government on the
                                        1976 the company was born.                                 tragically lost their lives during the year. RBM is       Tugela Transfer Scheme holds great promise of relief
                                                                                                   committed to creating a better life for all, including    for us, as well as the surrounding Zululand area.
                                        Since then our growth has been continuous, with            our host communities. We are co-operating with, and
                                        safety at the core of everything we do. Over the past      fully support, the South African Police Service to deal
                                        40 years we have survived water shortages, smelter         with these criminal matters.
                                        explosions, changing market conditions, and even a                                                                   2016 was another record-breaking
                                        cyclone. Each challenge was resolved in the same           We experienced a number of plant shutdowns during         year for us in safety. Solid
                                        way: with ingenuity, care, and commitment of the           the year due to community unrest and cable theft,         foundations created through our
                                        people who have worked here.                               resulting in further loss – loss of production and loss
                                                                                                   of equipment vandalized during the protests. We           safety management systems and
                                        This year we celebrate the history of our company,         remain committed to engaging in a transparent and         strong leadership has ensured safety
                                        but also our future through the theme “40 Forward”.        mutually respectful manner with all our stakeholders.     is part of who we are.
                                        Through looking at our past, it is possible to see clues   We have set up a number of platforms for
                                        to our future. That makes me certain we will chart a       engagement and have been supported by government
                                        course towards future success, just as we have done        to find consensus on ways forward when our own
                                        in the past.                                               efforts to engage have not been unsuccessful.             Realising our best safety year ever is a particularly
                                                                                                                                                             great achievement given tough economic trading
                                        While the year was filled with celebration and             Disruptions to operations have a significant impact       conditions, which have driven a strong focus on
                                        recognition, including Employer of Choice                  on the company and its shareholders, who include          efficiency and cost-savings. We recognize the
                                        certification and awards from the Waste Management         employees and communities. Coupled with an                contribution of our employees and contractors who
                                        Institute of South Africa, Eco-Logic and KZN Top           uncertain global market, community instability            hold safety as a core value, ensuring everyone arrives
                                        Business, it was also a year of tragedy and loss. We       further threatens all our futures. The future life of     home safely every day.
                                        were deeply saddened this year by the tragic passing       the mine has a direct impact on job security for
                                        of our General Manager: Human Resources Ronny              employees and contractors, procurement from
                                        Nzimande. We hold the accolade of Employer of              suppliers, and investment and development in our
                                        Choice in his honour.                                      host communities.

                                                                                                   The Zulti South expansion relies on market conditions
                                                                                                   improving and project approval. Our focus this year
                                                                                                   has been on extensive stakeholder engagement and
                                                                                                   progress toward obtaining relevant permits, as well as    Mpho Mothoa
                                                                                                   resettling priority homesteads.                           Managing Director

       4                                                                                                                                                                                                                          5
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Organisational profile                                            A culture of zero harm                                          disposal. Other areas in the district are characterised by   adequate open storage for products as well as general-
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                                                                                                                                                                                                                                                                                                   Sustainable Development Report | 2016
                                                                                                                                                                          relatively low levels of urbanisation, and approximately     purpose sheds and bulk storage bins.
                                        Richards Bay Minerals (RBM) is a subsidiary of Rio Tinto          We have achieved year-on-year improvements in our               80 per cent of the population live in rural areas.           The close proximity to rail and harbour links makes
                                        in South Africa, who has a shareholding of 74 per cent.           safety record and have made a step-change in the                                                                             the logistics of moving millions of tonnes of product
                                                                                                          organisation’s safety culture.                                  RBM’s lease areas fall within the local uMfolozi and         throughout the world cost-effective.
                                        We are a world leader in heavy mineral sands extraction                                                                           uMhlathuze municipalities. This includes, as the host
                                        and refining, and South Africa’s largest mineral sands            Strong safety management systems and programmes                 communities, the Traditional Councils of Mbonambi,           At any one time, no fewer than 20 large ocean-going
                                        producer and beneficiation company.                               keep safety top of mind, ensuring safe behaviour                Sokhulu, Mkhwanazi, and Dube.                                vessels are either at anchorage or on the high seas,
                                                                                                          and continuous improvement. These include the 12                                                                             transporting our products destined for customer
                                        RBM is a major contributor to the economy of KwaZulu-             Lifesaving Commitments, Zero Harm Culture Change                Operations began with the Tisand mineral lease in            markets across the globe.
                                        Natal, accounting for 50 per cent of the province’s               Workshops, the Fatality Prevention Programme,                   the KwaMbonambi area. In the late 1980s, operations
                                        mining output. We humbly accepted the winning                     and Critical Risk Management. Every employee and                expanded to the KwaSokhulu area with the Zulti North
                                        position in the Mining and Quarrying Category for the             contractor is empowered to stop work to address safety          mineral lease. Planning for expansion to the KwaDube         Ore reserves
                                        KZN Top Business Awards this year.                                first. Safety lies in everyone’s hands and we are all our       and KwaMkhwanazi areas through the Zulti South
                                                                                                          brother’s keeper.                                               mineral lease has been under way for some years,             Ilmenite, rutile, and zircon are common minerals
                                        Our vision ‘to make a difference in our world by                                                                                  with good progress made on permits and landowner             found all over the world, but not always in economic
                                        creating a brighter future for all our stakeholders’ and          Location                                                        agreements during 2016.                                      concentrations. One of the exceptions is the coastal area
                                        uncompromising mission ‘to be the safest, most reliable                                                                                                                                        of northern KwaZulu-Natal on the Zululand coast.
                                        and sustainable industrial minerals supplier’ drives              RBM is a leading mineral sands producer, extracting             Products
                                        our team to conduct business with both passion and                heavy minerals from the dune sands situated north of                                                                         The heavy minerals found in the dunes along the
                                        compassion. We know that by creating a positive impact            Richards Bay in Zululand, in the South African province         Many of our products are used in the manufacture of          coast of northern KwaZulu-Natal come from inland.
                                        on the environment and within our wider community,                of KwaZulu-Natal.                                               everyday items: from toothpaste, TVs, and artificial hip     Over the years, weathering of host rock has released
                                        business success follows naturally.                                                                                               joints to the remarkable qualities of titanium used in the   the minerals, which, because of their durability,
                                                                                                          We are located in Richards Bay, the largest industrial          aerospace and aviation industries.                           relatively high density, and high chemical stability,
                                        Responsible beyond mining                                         harbour in South Africa. RBM contributes 50 per cent of
                                                                                                          KwaZulu-Natal’s mining sector by value of output, and
                                        Through respecting and applying our values of trust,              represents 3.3 per cent of the national mining sector
                                        caring, honesty, courage, respect, and fairness we aim to         output.
                                        leave this area better than we found it.
                                                                                                          Richards Bay is the economic centre of the King
                                        The markets for our products are not static, and have             Cetshwayo District Municipality. The district comprises
                                        been severely affected by the downturn in commodities.            six local municipalities, namely uMhlathuze, Mbonambi,
                                        We can’t be sure when this will improve. But there are            Mthonjaneni, Nkandla, Ntambanana, and Umlalazi.
                                        specific, proactive steps we can take – as individuals,
                                        as teams, and as a business – to make sure that we                The area has a significant manufacturing sector and
                                        continue to perform well despite this uncertainty.                hosts five smelter operations including RBM. Production
                                                                                                          for the area contributes 73.5 per cent of total gross
                                        Rio Tinto has defined the five priorities we all need to          geographic product of the province and 5.5 per cent of
                                        focus on in order to deliver superior performance in the          total formal employment.
                                        face of economic challenges. These priorities inform
                                        our sustainability framework detailed in the “About this          The area has developed industrial infrastructure in the
                                        report” section.                                                  form of roads, railways, electricity, water, and waste

                                                     We deliver superior performance when we put safety first in everything we do, when we learn form our mistakes,
                                                     and by immediately stopping the job if it’s not safe                                                                 RBM is highly competitive in world markets thanks            withstand the weathering process and are transported
                                                                                                                                                                          to Rio Tinto’s proprietary smelting technology and           down rivers to the ocean.
                                                     We deliver superior performance when we value diverse points of view, when we lead from our core values, and by      international marketing links through Rio Tinto Iron
                                                     developing our commercial, operational and technical expertise                                                       and Titanium.                                                Once in the sea, the sand is transported up the coast
                                                                                                                                                                                                                                       by currents and wave action. Waves deposit the sand
                                                                                                                                                                          We have distributors in most economically active             containing the heavy minerals onto the beaches. From
                                                     We deliver superior performance when we treat every Rand as though it’s our own, when we make more money than        countries in the world.                                      there, the sand is blown into dunes by onshore winds.
                                                     we spend, and by spending less to produce more
                                                                                                                                                                          Our bulk products for export are transported 27              From a geological point of view, the ore bodies are
                                                     We deliver superior performance when we listen to the needs of our stakeholders, when we set realistic               kilometres to the harbour by rail. The Richards Bay          highly complex and the behaviour of the minerals in
                                                     expectations, and by delivering on the promises we make                                                              Harbour’s multi-purpose, bulk-handling plant is one of       the plant may vary considerably across the ore body.
                                                                                                                                                                          the largest plants of its kind in the world and we are one   Optimal performance of the separation processes
                                                                                                                                                                          of its major customers. The 26-kilometre long conveyor       carried out in the plant is thus dependent on
                                                     We deliver superior performance when we invest only in projects that will deliver the highest value, when we spend
                                                                                                                                                                          network, designed to handle a wide variety of products,      investigating and characterising the behaviour of the
                                                     less money on them, and by building them together with our partners
       6                                                                                                                                                                  is fully computerised and centrally controlled. There is     minerals as they flow through the plant.                                7
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ESTIMATED HEAVY MINERAL CONCENTRATES RESERVES (tonnes) 2016-2044                                                                                                Being non-toxic and biologically passive, it is even
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                                                                                                                                                                                                                                                                                                                                                 Sustainable Development Report | 2016
                                                                                                                                                                                                        used in sweets, cosmetics, toothpaste, and in
                                              2044          17 951                                                                                                                                      sunscreens to absorb ultraviolet rays from the sun. It
                                                                                                                                                                                                        slows the weathering and fading action of the sun on
                                        2041 - 2043         1 548 924
                                                                                                                                                                                                        products such as paints and plastics.
                                        2038 - 2040                  3 042 661
                                        2035 - 2037         144 670              3 238 037                                                                                                              Manufacturers mainly use rutile in welding rod fluxes
                                                                                                                                                                                                        as it stabilises the arc and protects the molten metal
                                        2032 - 2034                  2 977 821                        3 468 202
                                                                                                                                                                                                        from oxidation - forming a superior welding joint.
                                        2029 - 2031                              5 295 511                                    3 967 262                                          Zulti North (tonnes)   In its titanium metal form, it is used extensively in
                                        2026 - 2028                               5 414 916                                       4 482 103                                      Zulti South (tonnes)   the aerospace and aviation industries because of its
                                                                                                                                                                                                        lightness, strength, corrosion and heat resistance.
                                        2023 - 2025                                5 558 111                                        4 681 943
                                                                                                                                                                                                        These properties also make it ideal for use in artificial
                                        2020 - 2022                                5 510 398                          1 948 982                                                                         hip joints, pacemakers, and spectacle frames.
                                        2017 - 2019                                    6 331 516
                                                                                                                                                                                                        Our high purity pig iron, a bi-product of the smelting
                                                                                                                                                                                                        operation, is used as a raw material in foundries for the
                                                        0                2 000 000             4 000 000          6 000 000            8 000 000      10 000 000    12 000 000
                                                                                                                                                                                                        production of ductile iron castings. Ductile iron is used       Bruce Grierson, “Mr Titanium”
                                                                                                                                                                                                        extensively throughout the world for the production of
                                                                                                                                                                                                        safety critical automotive parts, such as brake callipers       Bruce Grierson is the father of RBM. First employed by Quebec Iron
                                                                                                                                                                                                                                                                        and Titanium (QIT), he was appointed as the first managing director
                                        Zulti South expansion                                                                 Product responsibility                                                    and steering knuckles in cars and trucks.                       of RBM, in which capacity he served from 1974-1981. He later
                                                                                                                                                                                                                                                                        became president of Rio Tinto. Apart from being instrumental in
                                        Sound stakeholder relations have yielded positive                                     Material Safety Data Sheets (MSDS) for our products                       Zircon is used in the production of ceramic tiles and           securing QIT’s involvement and bank financing at a critical time, as
                                        outcomes, resulting in the conclusion of the following                                are attached to all shipments, providing the following                    sanitary ware. Refined to zirconia, it is used in a wide        well as a keen involvement in the management of the project, Bruce
                                                                                                                                                                                                        range of advanced ceramics, refractories, jewellery,            almost single-handedly created the market for RBM’s products.
                                        critical permits and agreements for the proposed                                      information:
                                        Zulti South expansion:                                                                                                                                          electronic applications, and many other industrial and          On the wall of Bruce’s house there is an aeroplane propeller, signed
                                                                                                                                   -      Content;                                                      domestic products. Zircon sand is also used in the              to “John, from Charles”. John Grierson, Bruce’s father, was a good
                                          - Water Use Licences for the corridor and mine                                           -      Safe use of the product; and                                  foundry industry.                                               friend of Charles Lindbergh, and the second person to fly the Atlantic
                                        		lease;                                                                                   -      Safe disposal of the product.                                                                                                 solo. Bruce evidently inherited his father’s intrepid genes.
                                          - Environmental Assessments for the corridor 		                                                                                                               Ownership
                                                                                                                                                                                                                                                                        His forte, according to those who worked with him, was securing
                                        		 and mine lease;                                                                    We were recently audited against the ISO 9001                                                                                             consensus of agreement among a variety of strong-willed and
                                          - Servitudes agreement; and                                                         standard and re-certified. We deliberately asked to                       Richards Bay Minerals is the trading name for two               conflicting opinions. He had the ability to grasp all the implications
                                          - A Relocation and Resettlement Plan.                                               be audited against the new ISO 9001:2015 standards,                       registered companies:                                           of a complicated decision and articulate a convincing and principled
                                                                                                                              even though they only come into effect in 2017, to                                                                                        argument for a certain choice.
                                        The conclusion of the remaining permits and                                           confirm that we are well placed to be fully compliant.                      - Richards Bay Mining Proprietary Limited, which
                                                                                                                                                                                                                                                                        In July 1981 Bruce Grierson left RBM and returned to run QIT. He
                                        agreements is expected early in 2017.                                                 It is important for our customers to know that we                         		 undertakes mining and minerals separation; 		                continued as chairman of RBIT and deputy chairman of Tisand. Roy
                                                                                                                              have a rigorous system to assess the quality of the                       		and                                                           Macpherson, who was appointed to succeed him in July 1981, said:
                                        For further details on resettlement, please see page 52                               products we deliver to them. By moving early, we                            - Richards Bay Titanium Proprietary Limited, 		               “Nobody in the world knows more about the titanium industry than
                                                                                                                              also avoided the cost of conducting an expensive gap                      		 which is responsible for the smelting and 		                 Bruce does. He is knowledgeable about all the production aspects,
                                                                                                                                                                                                        		beneficiation process.                                        he is at home with the finance and personnel and has played a
                                        The project team undertook a Capital Intensity Review                                 analysis exercise.
                                                                                                                                                                                                                                                                        major role in getting RBM’s products accepted on world markets,
                                        (CIR) process, realising a 22 per cent reduction in the                                                                                                                                                                         and indeed developing many of those markets where they were
                                        project capital estimate.                                                             Markets                                                                   Rio Tinto manages operations with a 74 per cent                 previously non-existent.”
                                                                                                                                                                                                        shareholding. An employee trust (two per cent) and
                                        Pending improvements in global market conditions                                      Ninety-five per cent of our beneficiated product is                       Blue Horizon (24 per cent) hold remaining shares. Blue
                                        and supportive relationships with communities, the                                    exported, yielding a world market share of about 25 per                   Horizon is a consortium consisting of lead investors
                                        Advisory Committee approved a project plan that will                                  cent of titanium feedstock (titania slag and rutile), 33                  and our four host communities via community trusts.           Operations
                                        see construction beginning in the first quarter of 2018.                              per cent of the world’s zircon output, and 25 per cent
                                                                                                                              of the world’s high purity pig iron.                                                RBM OWNERSHIP                                       Our operations commenced in 1977 with one dredge
                                                                                                                                                                                                                                                                      mining plant and two furnaces producing approximately
                                         Key activity                                 Completion milestone date               Titania slag, which comes from ilmenite, contains 85                                                                                    400,000 tonnes per year of titania slag. In 1986, an
                                                                                                                              per cent titanium dioxide and is our primary product,                                                                                   additional mining plant and furnace were added,
                                         Project approvals
                                                                                                                              while rutile contains 94 per cent titanium dioxide.                                                                                     increasing slag output to 750,000 tonnes per year.
                                         Bridging funding                             Investment Committee May 2017                                                                                             24%
                                         Execution funding                            March 2018
                                                                                                                                                                                                                                                      Rio Tinto
                                         Detail engineering                           Complete October 2018                   Titanium dioxide is beneficiated by end-users most                                                                                      RBM’s titania slag capacity increased to one million
                                                                                                                                                                                                                                                      Blue Horizon
                                                                                                                              commonly to provide brilliance and opacity to                                                                                           tonnes per year and pig iron production went up to
                                         Procurement                                  Complete June 2019
                                                                                                                              products such as paints, plastics, or paper. It imparts
                                                                                                                                                                                                           2%                                         RBM Employees
                                                                                                                                                                                                                                                                      550,000 tonnes per year during the early 1990s, when a
                                         Construction, commissioning                  Start June 2018
                                                                                      Complete May 2020                       a luminescence to glossy white electronic products                                                                                      fourth furnace and mining plant were installed.
                                         Production ramp-up start                     October 2020
                                                                                                                              such as ultra-modern phones and tablets and kitchen                                                 74%
                                                                                                                              appliances by reflecting and scattering light in the                                                                                    We currently have the capacity to produce
                                                                                                                              visible spectrum like thousands of tiny mirrors.                                                                                        approximately two million tonnes of products annually,
       8                                                                                                                                                                                                                                                                                                                                                     9
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including approximately 100,000 tonnes per year of
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                                                                                                                                                                                                                                                                                                                                                                             Sustainable Development Report | 2016
                                                                                                                                                                                                                                                           Female                           Total                      Male                            Total      Grand
                                         rutile and 250,000 tonnes per year of zircon.                                                                                                                                                                                                      female                                                     male       total
                                                                                                                                                                                                                EMPLOYMENT             African      Coloured      Indian        White                  African   Coloured       Indian       White
                                                                                                                                                                                                                   LEVEL
                                         The low-clay Richards Bay sands suit a wet-mining
                                         process. Artificial freshwater ponds are created in the                                                                                                      Top management                           -              -            -            -         -          2           -           1             3        6           6
                                         dunes several kilometres from the shoreline. On each                                                                                                         Senior management                        3             1           4              2        10          7           1           5            10       23          33
                                         pond floats one or more dredgers and a concentrator                                                                                                          Professional qualified and
                                         plant. The dredger burrows into the face of a dune,                                                                                                          experienced specialists and            14               -          3              6        23         33           -          18            40       91         114
                                                                                                                                                                                                      mid management
                                         advancing at a rate of a few metres a day. The sand
                                                                                                                                                                                                      Senior technical, junior
                                         face collapses into the pond and is sucked up and                                                                                                            management, supervisors                75              5          19             20       119        379          18          94          149      640          759
                                         pumped into the concentrator plant. There the heavy                                                                                                          Semi-skilled and
                                         minerals (about three per cent of the dunes) are                                                                                                             discretionary decision                 97              3          11             14       125        835           4          18            14     871          996
                                                                                                                                                                                                      making
                                         separated from the sand through a series of sieves and
                                         sluices. The sand is pumped out behind the plant to                                                                                                          Temporary employees                    29               -            -            -        29         12           -               -        11       23          52
                                         reform the dune for rehabilitation, and the valuable                                                                                                         Grand total                           218              9          37             42       306      1 268          23         136          227     1 654       1 960
                                         heavy mineral concentrate is deposited next to each
                                         pond for transportation to the mineral separation plant.
                                                                                                                                                                                                     At any one time we have approximately the same                                         We subscribe to and are guided by the following
                                                                                                                                                                                                     number of contractors as employees on site.                                            standards, principles, and goals:
                                                                  MINING ACTIVITY (tonnes) 2010 - 2016
                                                     90 000 000                                                                   3 500 000                                                          The majority of our workforce remains between the                                      -   International Council on Mining and Metals (ICMM)
                                                                                                                                                                                                     ages of 30 and 50.                                                                         principles;
                                                     80 000 000                                                                                                                                                                                                                             -   The United Nation’s Precautionary Principle of the

                                                                                                                                                Heavy Mineral Concentrate Recovered
                                                                                                                                  3 000 000
                                                                                                                                                                                                      Age                                                                      Total            Rio Declaration and Environment Development,
                                                     70 000 000
                                                                                                                                  2 500 000                                                           Over 50 years                                                              490            1992;
                                                     60 000 000                                                                                                                                       30 - 50 years                                                            1 282        -   The United Nation’s Sustainable Development
                                                                                                                                                                                                                                                                                                Goals (SDG);
                                        Sand Mined

                                                     50 000 000                                                                   2 000 000                                                           Under 30 years                                                             188
                                                                                                                                                                                                                                                                                            -   Rio Tinto’s Business Standards:
                                                                                                                                                                                                      Grand total                                                              1 960
                                                     40 000 000                                                                   1 500 000                                                                                                                                                 		        - The way we work;
                                                     30 000 000                                                                                                                                      Trade union membership has not changed significantly                                   		        - Business integrity (anti-corruption) standard;
                                                                                                                                  1 000 000                                                          during the year.                                                                       		        - Business integrity (anti-trust) standard;
                                                     20 000 000                                                                                                                                                                                                                             		        - Business integrity (conflicts of interest)
                                                     10 000 000                                                                   500 000                                                            Union                                         Total             Percentage             		          standard;
                                                                                                                                                                                      HMC Produced
                                                                                                                                                                                                     NUM Union                                      982                        50.1%        		        - Anti-bribery due diligence standard;
                                                                                                                                                                                      Sand Mined
                                                             0
                                                                                                                                                                                                     UASA                                           443                        22.6%        		        - Fraud standard;
                                                                    2010      2011     2012      2013    2014       2015   2016
                                                                                                                                                                                                     Non-Union                                      535                        27.3%
                                                                                                                                                                                                                                                                                            -   ISO 14000, IS0 9001, and OHSAS 18001; and
                                                                                                                                                                                                     Grand total                                   1 960                       100%
                                                                                                                                                                                                                                                                                            -   The Mining Charter.
                                         With an increase in sand mined and heavy mineral
                                         concentrate produced during 2016, there was a slight                                                                                                        The ICMM Principles:
                                         drop in total beneficiated product supplied, with
                                         demand remaining largely unchanged since 2015
                                                                                                                                                                                                      Principle                                                                                                                              Our contribution see page
                                         across products.
                                                                                                                                                                                                            1       Implement and maintain ethical business practices and sound systems of corporate governance.                                            6, 14, 17-19

                                                                                                                                                                                                            2       Integrate sustainable development considerations within the corporate decision-making process.                                               6, 21-22
                                                                  TOTAL BENEFICIATED PRODUCT (tonnes) 2010 - 2016
                                                                                                                                                                                                            3       Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and                                         51-53
                                                      2 500 000                                                                                                                                                     others who are affected by our activities.

                                                                                                                                                                                                            4       Implement risk management strategies based on valid data and sound science.                                                                 13, 18, 25
                                                      2 000 000
                                                                                                                                                                                                            5       Seek continual improvement of our health and safety performance.                                                                                42-45
                                                      1 500 000                                                                                                                                             6       Seek continual improvement of our environmental performance.                                                                                    35-41

                                                                                                                                                                                                            7       Contribute to conservation of biodiversity and integrated approaches to land use planning.                                                      39-40
                                                      1 000 000
                                                                                                                                              Iron produced                                                 8       Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products.                                           8

                                                       500 000                                                                                Slag produced                                                 9       Contribute to the social, economic and institutional development of the communities in which we operate.                             6, 25-30, 50-53
                                                                                                                                              Zircon produced
                                                                                                                                                                                                         10         Implement effective and transparent engagement, communication and independently verified reporting                                            22 - 23
                                                                                                                                              Rutile produced                                                       arrangements with our stakeholders.
                                                             0
       12                                                           2010      2011     2012      2013    2014       2015   2016                                                                                                                                                                                                                                              13
Sustainable Development Report
The Sustainable Development Goals                                   agencies to impact on the SDGs at some scale. With a
Sustainable Development Report | 2016

                                                                                                                                                                                         Sustainable Development Report | 2016
                                                                                                            sustainable approach to development, we are able to
                                        As a subsidiary of a global mining company, located                 create jobs, spur innovation, and bring investment and
                                        within indigenous lands, we recognise our unique                    infrastructure to the area.
                                        ability to form partnerships with government and other

                                           Goal                                             Our contribution

                                            1     No poverty                                Jobs
                                                                                            Enterprise development
                                                                                            Supplier development
                                                                                            Resettlement programme

                                            2     Zero hunger                               Community agricultural development programmes
                                                                                            Rehabilitation of land including growing commercial crops

                                            3     Good health and well-being                Occupational health and safety
                                                                                            Community clinics, including specialised Prevention of Mother to Child Transmission Clinic
                                                                                            (PMCT)

                                            4     Quality education                         Technical training
                                                                                            Apprenticeships
                                                                                            Learnerships
                                                                                            High school maths and science programme
                                                                                            Bursaries
                                                                                            Internships
                                                                                            Graduate development programme

                                            5     Gender equality                           Equal pay and opportunities

                                            6     Clean water and sanitation                Shared use
                                                                                            Prevention of contamination
                                                                                            Water recycling

                                            7     Affordable and clean energy               Efficiency
                                                                                            Shared use

                                            8     Decent work and economic growth           Decent working conditions
                                                                                            Mine expansion
                                                                                            Enterprise and supplier development

                                            9     Industry, innovation and infrastructure   Development of roads
                                                                                            Shared use
                                                                                            Innovation in mining, rehabilitation, reuse, recycling methods

                                            10    Reduced inequalities                      Community Trusts
                                                                                            Participatory planning
                                                                                            Social engagement

                                            11    Sustainable cities and communities        Positive land impact
                                                                                            Reduced emissions
                                                                                            Reduced water consumption
                                                                                            Local economic development

                                            12    Responsible consumption and production    Materials stewardship
                                                                                            Minimising waste

                                            13    Climate action                            Reduced emissions

                                            14    Life below water                          Zero water discharge

                                            15    Life on land                              Managing biodiversity
                                                                                            Risk management and mitigation
                                                                                            Positive land impact

                                            16    Peace, justice and strong institutions    Transparent reporting
                                                                                            Good governance
                                                                                            Community complaints processes and resolution

                                            17    Partnerships for the goals                Partnerships with local, regional, and national government and civil society organisations

       14                                                                                                                                                                                15
Sustainable Development Report
Broad-Based Black Economic Empowerment                              targets and introduced new categories for measured
Sustainable Development Report | 2016

                                                                                                                                                                                                                                                                                                                                                     Sustainable Development Report | 2016
                                                                                                                                                                                                                                                                                        Catch-up Plan (2009 – 2013)
                                                                                                            entities. In many cases, companies measured against
                                        The Mineral and Petroleum Resources Development Act                 the revised codes have achieved a significantly lower                           Bulk water supply                                                            R17 000 000                             R8 000 000
                                        (MPRDA), enacted in 2002, and the Broad-Based Black                 B-BBEE rating.                                                                                                                                      New SLP (2015 – 2019): Corporate Social Responsibility projects
                                        Economic Empowerment Act 53 of 2003 aim to advance
                                        economic transformation, increasing the participation of            The RBM Board’s Social and Ethics Committee                                     Project name                                                           Approved budget                              Spend 2016               Status
                                        black people in the South African economy.                          monitors and reviews the company’s overall approach                             Eco wash                                                                      R3 000 000                             R1 000 000
                                                                                                            to transformation. The Employment Equity and
                                        The Ministry of Trade and Industry issued a Code                    Skills Development Committees are responsible for                               Sewing enterprise                                                             R2 100 000                              R500 000
                                        of Good Practice (CoGP) in February 2007, as an                     driving transformation and non-discrimination in                                Toilet paper making                                                           R3 000 000                             R1 500 000
                                        implementation framework for B-BBEE policy                          the workplace, with specific areas of implementation
                                                                                                                                                                                            Concrete manufacturing                                                       R10 500 000                             R3 500 000
                                        and legislation. Specific industry charters were                    devolved to relevant business units.
                                        also developed to highlight industry-specific                                                                                                       Land stewardship and agriculture                                              R7 200 000                             R1 200 000
                                        transformation imperatives. The Mining Charter was                  RBM was rated against the amended B-BBEE Codes
                                        one of the first sector charters to be developed.                   in 2015/2016 and obtained a certificate as a Level 6                           Status
                                                                                                            contributor to B-BBEE. This provides our clients with                          Completed               On-going           Behind schedule
                                        RBM’s commitment to transformation is measured                      the ability to claim 60% of spend with us in their own
                                        through our annual B-BBEE rating, as well as                        procurement score.
                                        progress made towards achieving targets and plans                                                                                                  Governance
                                        set out in our Social and Labour Plan (SLP). These
                                                                                                             Year               Codes                                  B-BBEE rating
                                        indicators impact on both our business and social                                                                                                  RBM Board of Directors
                                                                                                             2013               Old codes                              5
                                        licences to operate.
                                                                                                             2014               Old codes                              6
                                                                                                                                                                                                                                                                           South African           Disabled
                                                                                                                                                                                            Name                                     Race                Gender                                                                       Title
                                        The CoGP was revised in 2013. The revised codes                      2015               Old codes                              5                                                                                                     (Yes / No)            (Yes / No)
                                        came into effect in May 2015 and set even higher                     2016               Revised codes                          6                    Marion Lesego Marole                     African              Female                  Yes                  No                     Independent Director

                                                                                                                                                                                            Jacko Preyser
                                                                                                                                                                                            (replaced Mark Howard Davies on          White                 Male                   Yes                  No                           Director
                                                                                                                                                                                            7 December 2016)
                                                                              2016 Broad-Based Black Economic Empowerment rating
                                                                                                                                                                                            Bongukuphiwa Mthethwa                    African               Male                   Yes                  No                           Director
                                         Elements                     Score        Weighting                                           Comments                                             Stephane Leblanc                         White                 Male                   No                   No                           Director

                                                                                                Our ownership score includes black women at 2.59. Due to insufficient data submitted        Emsley Manne Dipico                      African               Male                   Yes                  No                           Director
                                         Ownership                        14.59            20   for assessments on employee share participation scheme, the overall score for the
                                                                                                ownership element was impacted.                                                             Gary Anthony O'Brien                     White                 Male                   No                   No                           Director

                                                                                                One of the most significant transformation challenges RBM faces is achieving                Johannes Bhekumuzi Magwaza               African               Male                   Yes                  No                           Director
                                                                                                employment equity targets in top and senior management levels. A robust Human
                                         Management control               10.36            15   Resources strategy has been implemented to improve targets in the top and senior levels     Mpho Lucas Mothoa                        African               Male                   Yes                  No                      Managing Director
                                                                                                through succession planning, graduate development, and by ensuring that open positions
                                                                                                are offered to equity candidates whenever possible.

                                                                                                We achieved full bonus points for absorbing black people as permanent employees after      RBM Senior Leadership Team (SLT)
                                         Skills development               13.44            20   completing learnership programmes. The business has developed an HRD strategy that         As at the end of December 2016, our SLT comprised:
                                                                                                will focus more on learnership, apprenticeship, and internship programmes.

                                                                                                Continuing to meet the DTI’s stringent B-BBEE targets for preferential procurement                         Mpho Mothoa                                  Luke Colton                                         Moses Thokwane
                                         Enterprise and supplier                                                                                                                                           Managing Director                            Chief Financial Officer                             Acting General
                                                                          28.37            40   is challenging. 13.37 of the points in this element are allocated to preferential
                                         development                                                                                                                                                                                                                                                        Manager: Communities
                                                                                                procurement. We achieved full points for supplier and enterprise development.
                                                                                                                                                                                                                                                                                                            and Corporate Relations

                                                                                                RBM’s commitment to empowering and improving the lives of members of our host
                                         Socio-economic development            5            5   communities, to ensure sustainable development, is evident full points for this element.

                                                                                                                                                                                                           Pregarsen Chinnu                             Joey Kunji-Behari                                   Brigitte Ngobese
                                         TOTAL SCORE                      71.76           100                                                                                                              Acting General Manager:                      General Manager                                     Acting General Manager:
                                                                                                                                                                                                           Mining                                       Smelting, Processing                                Human Resources
                                                                                                                                                                                                                                                        and Logistics

                                        Social and Labour Plan (SLP)

                                        The Department of Mineral Resources (DMR) has                       RBM is engaging with the regulator to finalise the SLP.                                        Jacques Venter                               Dawid Erasmus                                       Peter Eaglen
                                        provisionally approved both our Catch–up Plan (2009-                Apart from one project, all other projects have been                                           General Manager                              General Manager                                     General Manager
                                                                                                                                                                                                           Technical and                                Major Projects                                      Health, Safety, Environment
                                        2013) and new SLP (2015-2019).                                      completed under the Catch-up Plan (2009-2013).                                                 Asset Management                                                                                 and Security

       16                                                                                                                                                                                                                                                                                                                                            17
Board Committees                                                                                                                      Ethics and integrity
Sustainable Development Report | 2016

                                                                                                                                                                                                                                       Sustainable Development Report | 2016
                                        Board Committees include the Board Audit Committee, the RBM Audit Forum, and the Board Social and
                                        Ethics Committee.                                                                                                                     We were faced with a number of business integrity
                                                                                                                                                                              cases during the year including fraud, conflicts of
                                        Board Audit Committee                                                                                                                 interest, and collusion. We adhere strictly to due
                                        This committee oversees compliance and audit matters on behalf of the Board                                                           process, as prescribed by Rio Tinto, to investigate
                                                                                                                                                                              and resolve such matters. In some instances third
                                                                                                                                                                              parties were found to have committed these breaches
                                                                                                 3 Non-Executive Directors
                                                                                                                                                                              of policies, standards, and law. In other instances,
                                                                                                                                                                              disappointingly, RBM employees were responsible
                                                                                                                                                                              and have since left the business.

                                                                                                                                                                              We view matters of ethics and integrity in an
                                                                                                                                                                              extremely serious light.
                                                                                         Manager :                   Specialist:
                                             Managing         Chief Financial            Legal and                                        Manager :           External
                                             Director             Officer              Administrative              Compliance and          Finance            Auditor
                                                                                                                  Internal Controls                                           We focused efforts this year on strong internal and
                                                                                          Services
                                                                                                                                                                              external communication and training around the
                                                                                                                                                                              requirements of our code of ethics, ‘the way we work’
                                                                                                                                                                              and our intolerance for fraud and corruption.
                                        RBM Audit Forum
                                                                                                                                                                              Ethics and integrity form an integral part of our
                                        The objective of the RBM Audit Forum is to oversee the group business compliance programme. It has the                                induction programme and employees attend
                                        following responsibilities and provides guidance with respect to:                                                                     refresher training each year as a compulsory training
                                            - Integrity and compliance;                                                                                                       requirement.
                                            - Compliance risk management;
                                            - Internal control environment; and                                                                                               The Community and Corporate Relations’ Economic
                                            - Insurance risk management.                                                                                                      Development team took the Anti-Corruption
                                                                                                                                                                              Campaign to our four host communities in order
                                        The Audit Forum reports and makes recommendations to the Board Audit Committee on significant matters.                                to heighten awareness. It is critical that our host
                                                                                                                                                                              communities understand what the business regards
                                                                                                                                                                              as corruption and fraud.

                                                                                     Managing Director                                                                        The team shared posters describing how the
                                                                                                                                                                              community can blow the whistle in the fight against
                                                                                                                                                                              fraud. This communication was also shared internally
                                                                                                                                                                              with our employees to make sure everyone is aware
                                                                                                                                                                              of what is acceptable and what is not, and everyone is
                                                                                                                     Manager:                                                 empowered to report it.
                                              Senior            Specialist:                  External                Legal and            Manager:
                                          Leadership Team     Compliance and                 Auditor               Administrative         Finance
                                                             Internal Controls                                        Services                                                Employees, contractors, suppliers, and customers
                                                                                                                                                                              of Rio Tinto managed sites can report concerns
                                                                                                                                                                              anonymously through an independently operated
                                                                                                                                                                              whistleblowing programme called Speak-OUT. Any
                                        Board Social and Ethics Committee                                                                                                     significant concerns about the business, or behaviour
                                                                                                                                                                              of individuals, including suspicion of violations
                                        This committee assists the Board in fulfilling its oversight responsibilities in respect of the company’s social                      of financial reporting, safety or environmental
                                        and economic development programme, good corporate citizenship, human rights standards, anti-corruption                               procedures, or general business integrity issues can
                                        measures, environmental, health and public safety, product stewardship, and labour and employment                                     be reported.
                                        practices. The committee is established pursuant to the requirements of the Companies Act 71 of 2008.
                                                                                                                                                                              Speak-OUT reports are investigated internally and the
                                                                                                                                                                              General Manager: Human Resources reports closeout
                                                                                                                                                                              to the Executive Team and provides a summary to the
                                                                                                 3 Non-Executive Directors                                                    Board Audit Committee and Audit Forum.

                                                                                                           General
                                                              Chief               General                 Manager:             General         Specialist    Manager: Legal
                                           Managing         Financial            Manager:               Communities           Manager:        Compliance         and
                                           Director          Officer             Technical              and Corporate          Human          and Internal   Administrative
                                                                                                          Relations           Resources         Controls       Services
       18                                                                                                                                                                                                                              19
Sustainable Development Report | 2016
About this report

Report profile                                            Sustainability framework

This report covers the 2016 calendar year and is our
sixth Global Reporting Initiative (GRI)-aligned report.
This report is produced in accordance with the GRI G4                             Our mission, vision and
                                                                                 leadership values, while
Core Option.                                                                 underscoring principles needed
                                                                              for operational sustainability,
                                                                             are biased toward compassion
We publish our Sustainable Development Report                                and care for our people and the
annually on-line and print a limited number of reports.                        natural environments within
                                                                                    which we operate

The report covers the two entities that make up RBM:
                                                                                                                Leadership values:
                                                            Community                                              trust,caring,
-   Richards Bay Mining (Pty) Ltd, which 			               development                                          honesty, courage,
                                                                                                                 respect, fairness
    undertakes the mining and minerals
    separation;
-   Richards Bay Titanium (Pty) Ltd, which is
    responsible for smelting and beneficiation 		              Stakeholder                                      A Culture of
    processes.                                                 engagement                                       Zero Harm

The report is not externally assured, but rather                                         Sound
internally reviewed.                                                                 environmental
                                                                                       practices
There are no significant re-statements or changes in
scope and boundaries.

For any comments or queries, please contact:              Material aspects and boundaries

communication@rbm.co.za                                   Our reporting process begins with a materiality
                                                          review. Using the GRI’s guidelines on materiality and
                                                          completeness, we review issues impacting business
                                                          in general, the context of mining and doing business
                                                          in South Africa, the matters we have reported on in
                                                          the past, those that we have engaged stakehold-
                                                          ers on over the year, and those that substantively
                                                          influence the assessments, actions, and decisions of
                                                          our business and our stakeholders. These represent
                                                          the most significant economic, environmental, and
                                                          social issues. Our materiality matrix plots the level of
                                                          importance to our stakeholders with the impact on
                                                          the business.
                                                                                                                                     21
An action plan was developed during the workshop.
Sustainable Development Report | 2016

                                                                                                                                                                                                                                                                                                                                          Sustainable Development Report | 2016
                                                                                                                                                                                        Structure                              Frequency        Objective
                                                                                                    Health, safety & security   Progress will be monitored with the guidance and        Traditional Council (TC)               Monthly          Gain buy-in on projects
                                                                                    Air emissions    Community relations        support of COGTA. The next workshop will take place        - Mkhwanazi                                          Provide update on projects
                                                                                        Waste           Economic value                                                                     - Dube                                               Promote partnership
                                                                   High               Materials              Water              with the Mkhwanazi community.                              - Mbonambi                                           Share information
                                                                                    stewardship        Ethics & integrity                                                                  - Sokhulu                                            Promote good relationships
                                         IMPACT ON THE BUSINESS

                                                                                        Skills        Employee retention                                                                                                                        Achieve a social license to operate
                                                                                    development              Energy             The Dube Community Imbizo was held in November                                                                  Continue the Zulti South engagement
                                                                                                          Compliance            2016. The purpose of the imbizo was to create a                                                                 Reach relocation & resettlement agreements, land takes, compensation principles & rates
                                                                                                                                platform where both RBM and the Dube Traditional        Community Trust                        Monthly          Partnership
                                                                                                       Industrial relations     Council reported on what was accomplished in 2016.        - Mkhwanazi                          As necessary     Empowerment
                                                                  Medium                                                                                                                  - Dube                                                Relationship building
                                                                                                          Biodiversity
                                                                                                                                                                                          - Sokhulu

                                                                   Low
                                                                                                                                As part of RBM’s stakeholder engagement plan,           Local Recruitment Committee            Bi-weekly        To address employment, education skills, and training
                                                                                                                                the Managing Director (MD) and other RBM                  - Dube
                                                                                                                                                                                          - Mbonambi
                                                                            Low       Medium                  High              representatives met with His Majesty, King Goodwill       - Sokhulu
                                                                                                                                Zwelithini, at his residence in Nongoma. The King
                                                                                                                                                                                        King Cetshwayo District Municipality   As necessary     Partnership
                                                                          LEVEL OF IMPORTANCE TO STAKEHOLDERS                   acknowledged the good work that RBM is doing in                                                                 Information sharing
                                                                                                                                his communities and committed to strengthening                                                                  Social license to operate
                                                                                                                                                                                                                                                Service delivery
                                                                                                                                support for RBM.
                                                                                                                                                                                        Mhlathuze Municipality                 Quarterly        Partnership on LED projects
                                                                                                                                                                                                                                                Zulti South project plans
                                        Stakeholder engagement                                                                  Rio Tinto Iron and Titanium (RTIT) MD Stephane
                                                                                                                                                                                        Umfolozi Municipality                  Quarterly        Partnership on LED projects
                                                                                                                                Leblanc joined by MD Mpho Mothoa and Acting                                                                     Community engagement and projects support
                                        RBM is always committed to engage in a transparent                                      General Manager: CCR Moses Thokwane also visited        Environmental Forums                   Quarterly        Promote partnership
                                        and mutually respectful manner with all our                                             the Premier of KwaZulu-Natal, the Hon Willies                                                                   Community information
                                                                                                                                                                                                                                                Control encroachment
                                        stakeholders, and we have specific platforms in place                                   Mchunu. He expressed his support for the company                                                                Land use management & future developments
                                        to engage with all.                                                                     and its contribution to the province.                   ZS Resettlement Advisory Committee     Quarterly        Consultative agreements
                                                                                                                                                                                        RRP Steering Committee                 Monthly          Consultative agreements
                                        2016 was unfortunately marked with a number                                             We were pleased to engage with a number of other
                                        of community protests despite on-going robust                                           high profile representatives from various stakeholder   Affected Committees Forum              Monthly
                                                                                                                                                                                                                               As necessary
                                        discussions with Traditional Councils, Business                                         groups, including:
                                                                                                                                                                                        Mbonambi Heritage Task Team            Monthly          Preservation of cultural heritage resources
                                        Forums, and newly elected Youth Committees.
                                                                                                                                                                                        Sokhulu Heritage Task Team             Monthly          Preservation of cultural heritage resources
                                                                                                                                -   The Department of Mineral Resources Regional
                                        Community protests and plant shutdowns have a                                               Office;                                             Amafa KZN                              Twice per year   Engagements on heritage issues
                                                                                                                                                                                                                                                Compliance with legislation
                                        negative impact on all parties and every effort is                                      -   The MEC for Economic Development, Tourism
                                                                                                                                                                                        DEDTEA                                 As necessary     Engagements on environmental issues
                                        being made to strengthen engagement to ensure                                               and Environmental Affairs;                                                                                  Compliance with legislation
                                        equal commitment to a common goal of prosperity                                         -   KZN Ezemvelo and the Department of 			              DAFF                                   As necessary     Regulatory compliance & best practice
                                        for all.                                                                                    Agriculture, Forestry and Fisheries;
                                                                                                                                                                                        DWS                                    As necessary     Regulatory compliance & best practice
                                                                                                                                -   The Ingonyama Trust Board;
                                        Sound relationships with our host communities are a                                     -   The National Religious Association for Social       DMR                                    Regularly        Regulatory compliance & best practice
                                                                                                                                                                                                                                                Social Labour Plan
                                        high priority for us. While setting up structures and                                       Development;
                                                                                                                                                                                        Premier’s Office                       As necessary     Government support and Partnership
                                        agreeing to terms of engagement are important, so is                                    -   COGTA;
                                                                                                                                                                                        Zululand Chamber of Commerce &         Bi-annually      Business support and industry partnership
                                        building capacity and leadership in our communities                                     -   King Cetshwayo District Mayor;                      Industry
                                        to enable effective engagement. To support this,                                        -   Umfolozi District Mayor;
                                                                                                                                                                                        Provincial Police Commissioner         Bi-annually      Business support in crime prevention against business
                                        a capacity building, governance, and leadership                                         -   Chamber of Mines; and
                                                                                                                                                                                        Ingonyama Trust Board                  Regularly        Regulatory compliance & best practice
                                        programme is being developed in collaboration with                                      -   Amakhosi from host communities.
                                        the KZN Department of Cooperative Governance and                                                                                                Mthunzini Community Forum              Regularly        Compliance & Social License to Operate
                                        Traditional Affairs (COGTA). The expected outcomes                                      Almost 200 RBM suppliers attended an MD                 Municipal Administrator                Quarterly        To ensure alignment and collaboration on projects implementation
                                                                                                                                                                                        (Manager)
                                        of the programme are a better understanding of                                          Townhall session this year. They were given a
                                        roles and responsibilities among RBM, Traditional                                       business update, which included an overview of          Ward Committee                         Bi-annually      Information sharing on projects and RBM plans
                                        Councils, and COGTA, the strengthening of traditional                                   current market conditions, our safety initiatives,      COGTA                                  As necessary     On-going support and effective working relationships
                                                                                                                                                                                                                                                Traditional Authorities
                                        leadership institutional accountabilities through the                                   and achievements. They were also reminded about
                                                                                                                                                                                        Ezemvelo KZN Wildlife                  Regularly        Partnership on environmental conservation and development projects
                                        establishment of mandated and authorised structures                                     the importance of adhering to the principles of our
                                        of engagement, and the long-term sustainability of                                      business integrity guidelines, and our zero-tolerance   Wildlands Conservation Trust           Regularly        Partnership on environmental conservation and development projects
                                        host communities beyond RBM’s mining activities.                                        approach to intimidation of any RBM employee            RBM departments namely                 Monthly          Alignment & collaboration with internal customers
                                                                                                                                                                                          - Engineering;
                                                                                                                                when it comes to tenders or any other business            - HSE&S;
                                        Sokhulu community leadership structures and                                             opportunities.                                            - Mine;
                                                                                                                                                                                          - HR;
                                        committees attended an intensive three-day                                                                                                        - ZS Project; and
                                        workshop during November 2016. Attendees, who                                           Our engagement channels vary across stakeholders,         - SP&L
                                        included representatives from the Sokhulu Youth                                         but include face-to-face meetings, interviews,          Department of Health                   As necessary     Provision of infrastructure & health promotion
                                        Committee, Traditional Council, Inkosi, and Trust,                                      community izimbizo, rollout programmes,                                                                         Student nurse practical training
                                        indicated appreciation for the opportunity to engage                                    workshops, MD Townhall sessions, newsletters,           DramAidE                               Quarterly        Health promotion, HIV & TB prevention
                                        openly on important issues.                                                             conferences, and site visits.                           Sports associations                    As necessary     Health & wellness
                                                                                                                                                                                                                                                Promote good relationship and social cohesion
       22                                                                                                                                                                                                                                                                                                                                 23
Sustainable Development Report | 2016
Lillian Mkhize, Matthew Orchard, and Andrew Palmer
have formed a joint venture to establish African
Elangwe and employ 12 local community members.
Mkhize’s son also works for the company. The
company designs, installs, and maintains bag houses.
Their offices are at RBM. “I’m a Dube citizen. Since
RBM helps a lot of our communities, my company
is part of their database, that’s how I met Andrew.
He is like a son to me. He didn’t mind my age or my
skin colour,” Mkhize says. “It has been a challenge to
complete the paperwork to set up the new company,
but I’m glad about the social and economic impact we
                                                         Economic
can have on local communities,” Palmer said.

                                                         Economic performance                                                             focusing on improving efficiencies and reducing waste
                                                                                                                                          in areas they have control over, with safety as top
                                                         Tough global economic trading conditions continue to                             priority, enables us to function as a lean operation,
                                                         challenge us to improve efficiencies, while reducing                             with a quick market-led response.
                                                         loss and waste. Efficiency improvements never come
                                                         at the cost of safety. Now, more than ever, being our                            It is important that improvements be identified
                                                         brother’s keeper is crucial.                                                     throughout the business and at all levels. In order
                                                                                                                                          to engage employees, our management team
                                                         Project 2020, launched in 2015, aims to achieve a $300                           recognises and rewards not only water- and energy-
                                                         per tonne unit cost of production by the year 2020.                              saving solutions, but each quarter our Managing
                                                         This project is led by our Chief Financial Officer, Luke                         Director, Mpho Mothoa, also presents a Continuous
                                                         Colton, and supported by the Senior Leadership Team                              Improvement Project award in the following categories:
                                                         as sponsors.                                                                     safety; business; and innovation.

                                                         At the 2015 launch, six areas of opportunity were                                For financial performance, please refer to our Annual
                                                         identified and make up the project’s key work streams.                           Financial Statements for 2016.

                                                         WORKSTREAM                                 OBJECTIVE
                                                                                                    To improve overall equipment reliability and performance by implementing best-practice asset management
                                                         Asset management                           strategies
                                                                                                    To achieve delivery of energy savings in line with the ELP 1 and ELP 2 initiatives, and to realise the forecasted
                                                         Energy saving                              savings for 2016 and over the five-year plan
                                                         Procurement                                To obtain cost reduction and manage cost inflation
                                                         Productivity improvements                  To plane and execute initiatives to deliver sustainable plant performance and efficiencies
                                                         Revenue generation                         To advance projects that deliver additional revenue generation
                                                         Workforce optimisation and effectiveness   To fully utilise the current workforce in a more productive and efficient manner

                                                         Improvements have also been made to our                                          Market presence
                                                         procurement system with the implementation of
                                                         a Demand Management process and procurement                                      Seventy-two per cent of RBM’s workforce is from
                                                         representative assigned to each department as a                                  KwaZulu-Natal, including 34 per cent from our
                                                         Demand Management Liaison. The procurement                                       four host communities. We employ approximately
                                                         representative’s role is to ensure we are making the                             2,000 people and the same number of contractors,
                                                         right purchases, in the right quantities, at the right                           impacting on the lives of an estimated 30,000 people.
                                                         time.
                                                                                                                                          RBM is committed to providing reasonable job
                                                         Our global market demand has shifted from chloride                               opportunities. All contractors and end users source
                                                         slag to sulphate slag, with demand for zircon and                                labour from the local host communities through the
                                                         rutile remaining strong. Each department continuously                            RBM Community Recruitment office.                                             25
Indirect economic impacts                                                                                                              Literacy                                                             LOCAL SPEND (%) 2012 - 2016
Sustainable Development Report | 2016

                                                                                                                                                                                                                                                                                                    Sustainable Development Report | 2016
                                                                                                                                                                               A group of 31 people with disabilities completed a          16
                                                      COMMUNITY SPEND (ZAR) 2012 - 2016
                                                                                                                  CASE STUDY: THUSONG CENTRE OPENING                           Fundamental Literacy course funded by the Mining            14
                                                                                                                                                                               Qualifications Authority (MQA)
                                        120 000 000                                                                                                                                                                                        12
                                                                                                                  In June 2016, the honourable Minister of Mineral
                                                                                                                  Resources, Mr Mosebenzi Zwane, together with RBM                                                                         10
                                        100 000 000
                                                                                                                  Managing Director Mpho Mothoa, officially handed                                                                          8
                                         80 000 000                                                               over the Port Dunford Thusong Centre to the Mayor               CASE STUDY: BOOK COLLECTION FOR                           6
                                                                                                                  of uMhlathuze, Mr Mduduzi Mhlongo, and the Inkosi               SOKHULU YOUTH                                             4
                                         60 000 000                                                               uMkhwanazi.                                                                                                               2
                                         40 000 000                                                                                                                               The Sokhulu Youth Development Programme                   0
                                                                                                                  RBM built the Port Dunford Thusong Centre as part of a          submitted a proposal to RBM to appeal to employees                   2012     2013     2014       2015    2016
                                         20 000 000                                                               commitment in our Social and Labour Plan (SLP).                 and contractors to donate books for a library being
                                                                                                                                                                                  established in the area.
                                                 0                                                                The Thusong Centre will enable surrounding
                                                        2012       2013       2014         2015         2016      communities to access social and commercial services,                                                                              TOTAL NUMBER OF LOCAL VENDORS 2012 - 2016
                                                                                                                                                                                  The Programme has set about creating a library using
                                                                                                                  including SASSA, Home Affairs, a SAPS Satellite                 an existing structure in Sokhulu so that the youth do    140
                                                           Community investment and educational spend
                                                                                                                  Station, a public library, an early childhood development       not have to travel to Richards Bay to use a library.     120
                                                           LED Spend
                                                                                                                  centre, and other facilities to be determined by the
                                                                                                                  municipality and the Traditional Council.                                                                                100
                                                                                                                                                                                  We placed collection points at various places on site,
                                        RBM has reached about R170 million in Local Economic                                                                                      with a heart-warming response from employees.             80
                                        Development (LED) spend over the past five years.                         On the same day, the honourable minister and RBM’s                                                                        60
                                        This has included investment in small-scale farming,                      Managing Director handed over four houses built in the
                                                                                                                                                                                                                                            40
                                        business development, construction and refurbishment                      area.
                                        of community roads, houses for destitute families,                                                                                                                                                  20
                                        education, and healthcare facilities.                                     During the handover, a commitment was made to the            Procurement practices                                            0
                                                                                                                  Minister by the Mkhwanazi Trust to donate refrigerators                                                                                2012     2013     2014      2015    2016
                                        Over the same period, RBM invested a further R80                          to all 11 beneficiaries.                                     Our Preferential Procurement Strategy centres on
                                        million in community strengthening and education                                                                                       creating an enabling environment for increased
                                        projects, including cultural heritage projects, the                       Inkosi uMkhwanazi and the Trust delivered on their           procurement from local suppliers. Through focussed
                                                                                                                                                                                                                                                     B-BBEE SPEND (%) 2012 - 2016
                                        development of sports and recreational activities,                        commitment, hosting a handover ceremony in August            effort from our Business Development Centre, we
                                        enterprise development, and local schools. In total,                      2016 at the Port Dunford Thusong Centre. It was              have increased procurement from host community              80,0
                                        approximately R250 million was invested in our host                       encouraging to see the Trust identifying and meeting         businesses to 13.55 per cent of spend, resulting in         70,0
                                        communities over this period.                                             needs of members of their community.                         the creation of approximately 200 jobs. The number
                                                                                                                                                                                                                                           60,0
                                                                                                                                                                               of local vendors on our database has risen to 119
                                        RBM funded the construction of 44 houses – 11 in each                     Three SMMEs involved in building the houses also             with overall B-BBEE spend at 67.7 per cent.                 50,0
                                        host community – in an initiative to assist community                     brought tears to the eyes of the beneficiaries, with their                                                               40,0
                                        members in need. The houses were handed over during                       donation of furniture.                                       As a clear demonstration of our commitment to
                                                                                                                                                                                                                                           30,0
                                        the course of the year.                                                                                                                the development of host community enterprises,
                                                                                                                  The SMMEs thanked RBM for the opportunity to                 RBM has set a target of 20 per cent of total annual         20,0
                                        Skills development                                                        showcase their construction skills and indicated that        contestable spend to be awarded to local and host           10,0
                                                                                                                  their way of demonstrating their appreciation was also       community vendors. This has been the main driver
                                                                                                                                                                                                                                                0
                                        Training for unemployed youth in our host communities                     to give back to the community                                behind this significant achievement in 2016.                              2012     2013     2014      2015    2016
                                        aims to help to create a pool of employable people.
                                        We extend our reach and impact by working with                            For RBM this was a particularly memorable event              We could not have achieved this without the existing
                                        government’s National Skills Fund.                                        showing what can be achieved when stakeholders               contractors’ contribution to community development,
                                                                                                                  work together.                                               by getting involved and entering into joint
                                        Bambisanani Programme                                                                                                                  ventures with RBM’s host community enterprises.
                                        The RBM-sponsored Bambisanani Learning Programme                                                                                       Joint ventures are a critical part of community
                                        supports Grade 10 to 12 learners in maths and science.                                                                                 empowerment, as they involve the transfer of
                                                                                                               Imbokodo Programme                                              skills without compromising RBM standards and
                                        In addition, it offers further training to school principals           Twenty young women from the communities                         operational requirements.
                                        and heads of department from local high schools. A                     continued on RBM’s two-year Imbokodo programme,
                                        second cohort graduated with an Advanced Certificate in                which provides both theoretical and practical training.
                                        Education in 2016.                                                     On completion they receive an MQA-accredited
                                                                                                               Smelting Certificate.
                                        Apprenticeships
                                        Twenty five youth from host communities continued                      On-the-job training for apprentices
                                        on RBM’s two-year apprenticeship programmes                            Twelve youth joined the on-the-job component of a
                                        including electrical engineering, fitting and turning,                 Transport Education and Training Authority (TETA)
       26                               instrumentation, and diesel mechanics.                                 sponsored electrical apprenticeship at RBM.                                                                                                                                          27
Youth engagement and development has been a key
focus area in host communities. Through various
engagements via newly selected youth committees
in each host community, lack of driver’s licenses
was identified as creating a significant barrier to
employment.

RBM provided the opportunity for 30 youth members
within the Mbonambi community to obtain driver’s
licences. A local service provider, Nkosi Driving, also
pledged three opportunities for the Mbonambi youth.
This brought the total number of beneficiaries to 33.

RBM applauds the contribution from one of its host
community companies and encourages more suppliers
to lend a helping hand as we collectively uplift youth
in the area.

This initiative will be rolled out to the three remaining
communities – Sokhulu, Dube, and Mkhwanazi – in
the coming months.
Ten local small businesses from our host
Sustainable Development Report | 2016

                                                                                                                                                                                                                      Sustainable Development Report | 2016
                                        communities were sponsored by RBM to attend a
                                        two-day SMME Expo at the Durban ICC to showcase            Mduduzi Nsele owns FMD Spillage Control, a
                                        their businesses.                                          cleaning-services company with 148 workers. “I saw
                                                                                                   an opportunity to supply services, hence I started this
                                        RBM also held its own SMME Open Days. The first            business. Fortunately RBM is good at helping local
                                        was held in June 2016 in partnership with the              communities,” says Nsele. He says setting up his
                                        Sokhulu Traditional Council and Youth Committee.           own business has enabled further positive impact
                                        The event was held at the Community Traditional            on the local community through their donations of
                                        Council and will ultimately be rolled out to all host      school uniforms to school children in need. The
                                        communities in partnership with relevant structures        largest challenge Nsele says he encounters is union
                                        within communities.                                        representatives trying to mislead workers into joining
                                                                                                   irrelevant trade unions. “Our industry is governed only
                                        The second SMME Day was held at the Mkhwanazi              by the Cleaning Bargaining Council KZN,” Nsele says.
                                        Traditional Council, KwaDlangezwa, with an
                                        impressive turnout of 60 businesses. It was also
                                        very encouraging to have attendance by Izinduna,
                                        Ndunankulu, and the CEO of the Mkhwanazi Trust.

                                        The objective of the SMME Open Days is to refine           Michael Thethwayo, owns Mike’s Civil, a five-time
                                        and refresh RBM’s localwise database. This is a            SMME Contractor of the Year winner in RBM’s Annual
                                        database on which all enterprises from the four            Safety Awards. The company maintains all RBM roads
                                        host communities are registered. Entrepreneurs             and has a staff of 12 with offices at Mzingazi. “RBM is
                                        were encouraged to attend the SMME Open Day                improving our lives. Their investment in our schools is
                                        and provide the documentation necessary for                legendary. It’s a pity the younger generation does not
                                        registration. These documents include company              realise how positively RBM has impacted our lives,”
                                        registration documents and B-BBEE certificates. RBM        Thethwayo says. He mentions cash flow management
                                        provides those companies who do not have a B-BBEE          as the key challenge in his business. “But my life and
                                        certificate with an equivalent DTI affidavit to complete   that of my workers has definitely improved, and our
                                        and have certified. RBM also assisted entrepreneurs        success is due to our working as a team,” he explains.
                                        who did not have email addresses by opening email
                                        accounts for them.

                                        2016 saw several new companies being formed in our
                                        host communities, as well as established companies
                                        expanding to achieve even greater success.

                                        CASE STUDIES: LOCAL BUSINESSES

                                           MCK Services is a newly formed entity with three
                                           directors: Melusi Gwala, Christo Mienie, and Kumaran
                                           Poonan. The company supplies RBM with metallurgical
                                           equipment, engineering services, and labour and
                                           has already hired 35 employees. In an interview at
                                           their offices in Richards Bay, Mienie said he viewed
                                           the impact of the venture as a “win-win solution for
                                           RBM, MCK and the community, as it uplifts all parties
                                           involved.” Poonan mentioned lack of people from local
                                           communities who have relevant skills and who are                                                                  Six unemployed community members from Sokhulu
                                           able to start working at short notice as some of the                                                              embarked on an entrepreneurial journey with the
                                           challenges. But the company sees this challenge as                                                                launch of a block-making enterprise. RBM assisted
                                           an opportunity as well: “Our vision is to establish a                                                             the start-up by donating two machines and some
                                           training workshop at Mabhodla to counter the skills                                                               building materials. A concrete slab was also built to
                                           shortage,” says Melusi.                                                                                           allow their business to operate. The enterprise is now
                                                                                                                                                             supplying blocks to contractors involved in other RBM
                                                                                                                                                             community projects.

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