FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX

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FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
SOCIAL AND LABOUR PLAN
           FOR SOUTH32
    WOLVEKRANS MIDDELBURG COMPLEX

                                     JUNE 2017                                      01
Mining Right Reference Number: Wolvekrans Middelburg Complex - MP30/5/1/2/2/379MR
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
Table of Contents
        SOCIAL AND LABOUR PLAN					1
        Abbreviations								6
1.      INTRODUCTION AND PREAMBLE					8
1.1     Introduction								8
1.2     Preamble								8
1.3     Mining Methodology							9
1.4     Current and Expected Workforce					9
1.5     Local Recruitment							9
2.      HUMAN RESOURCE DEVELOPMENT PLAN			                                12
2.1     Introduction								12
2.2     Skills Development Plan						12
2.2.1   Adult Education and Training						12
2.2.2   Learnerships								15
2.2.3   Core Business Skills Programme					17
2.2.4   Portable Skills Training						20
2.2.5   Hard to Fill Vacancies							22
2.2.6   Career Progression Plan						22
2.2.7   Mentorship Plan							23
2.2.8   Bursary Plan and Graduate Development Programme (Internship) 24
2.2.8.1 Full Study Bursaries:							24
2.2.8.2 Study Assistance:							25
2.2.9   Internship and Graduate Development Programme:			                 26
2.2.10 Employment Equity Plan						27
2.2.11 Employment Equity Strategies Applied at WMC Colliery		             28
a)      Capacity Building (Talent Pool Development)			                    28
b)      Fast Tracking								28
2.2.12 Participation of Historically Disadvantaged South Africans		       28
2.2.13 Women at the Mine							29
3.      LOCAL ECONOMIC DEVELOPMENT PROGRAMME		                            32
3.1     Introduction								32
3.2     Socio-Economic Background Information				32
3.3     Key Economic Activities						37
3.4     Local Economic Development Planning				                           37
3.4.1   Integrated Development Planning: Nkangala District Municipality   37
3.4.2   Integrated Development Planning: Steve Tshwete
        Local Municipality							38
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
3.5     Stakeholder Engagement and Management Plan			                    39
3.5.1   Record of Communication between Operation and the various
        Stakeholders								40
3.6     Socio-Economic Impact of the Mine in the Local Communities       40
3.7     Infrastructure Development, Poverty Eradication and Welfare
        Creation Projects							40
3.7.1   Infrastructure Development and Poverty Alleviation Programmes 41
3.8     Housing and Living Conditions					41
3.9     Health Care and Nutrition Plan					                              42
3.10    Procurement Plan							43
4.      Downscaling and Retrenchment					45
4.1     Introduction								45
4.2     Future Forum								45
4.3     Communication with Authorities					46
4.4     Mechanisms to Avoid Job Losses					46
4.5     Provision of alternative solutions and procedures for creating
        job security where job losses cannot be avoided			               46
4.6     Mechanisms to ameliorate the social and economic impact
        on individuals, regions and economies where retrenchment or
        closure of the operation is certain					                         47
4.7     Post Closure Planning						48
4.8     Social and Labour Plan (SLP) Communication			                    48
5.      Financial Provision							50
5.1     Financial Provision							50
5.2     Financial Provision for Human Resource Development
        Programmes (Regulation 46 (E) (1))					50
5.3     Financial Provision for Local Economic Development Programmes
        (Regulation 46(E) (ii))							51
5.4     Financial Provision for Management of Downscaling and
        Retrenchment (Regulation 46(E) (iii))					51
6       Undertaking								53
        Addendum A: Breakdown of Labour Sending Areas			                 53
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
List of Table

TABLE 1: LOCAL RECRUITMENT UNDERTAKING SUMMARY				                      9
TABLE 2: LABOUR SENDING AREAS AT WMC OPERATION AS AT
           28TH FEBRUARY 2017							9
TABLE 3: OCCUPATIONAL DISTRIBUTION OF CURRENT WORKFORCE (AS AT THE
           28TH FEBRUARY 2017) AND EXPECTED OPERATION WORKFORCE FOR
           FIVE (5) YEARS (FY 2018 TO 2022)						10
TABLE 4:   ADULT EDUCATION AND TRAINING UNDERTAKING			                  13
TABLE 5: AET TARGETS AT WMC COLLIERY (FY 2018 TO 2022)			               13
TABLE 6: FORM Q – FUNCTIONAL LITERACY AT WMC COLLIERY AS AT
           28 FEBRUARY 2017							14
TABLE 7: COMMUNITY AET TARGETS AT WMC COLLIERY (FY 2018 TO 2022)        16
TABLE 8: PROJECTED SECTION 18.1 LEARNERSHIP TARGETS FOR
           WMC COLLIERY (FY 2018 TO 2022)					                          16
TABLE 12: PROJECTED CORE TECHNICAL AND NON-TECHNICAL BUSINESS SKILLS
           TRAINING TARGETS AT WMC COLLIERY OPERATION (FY 2018 TO 2022) 18
TABLE 13: PROJECTED ARTISAN TRAINING TARGETS FOR WMC COLLIERY
           (FY 2018 TO 2022)								18
TABLE 18: CAREER PROGRESSION UNDERTAKING					                           23
TABLE 19: EMPLOYEES WITH INDIVIDUAL DEVELOPMENT PLANS			                23
TABLE 20: MENTORSHIP UNDERTAKING						24
TABLE 22: BURSARY PLAN UNDERTAKING						25
TABLE 23: TARGETS FOR CHILD OF EMPLOYEE BURSARY
           PROGRAMMES AT WMC COLLIERY (FY 2018 TO 2022)			              25
TABLE 24: TARGETS FOR EXTERNAL BURSARY PROGRAMMES AT
           MC COLLIERY (FY 2018 TO 2022)						25
TABLE 25: SUMMARY OF EMPLOYEE STUDY ASSISTANCE TARGETS AT
           WMC COLLIERY (FY 2018 TO 2022)					                          26
TABLE 26: FEEDBACK ON INTERNSHIP AND GRADUATE DEVELOPMENT
           PROGRAMME UNDERTAKING						26
TABLE 27: MINING RELATED INTERNSHIP/GRADUATE DEVELOPMENT
           PROGRAMME TARGETS AT WMC COLLIERY (FY 2018 TO 2022)		        27
TABLE 28: EXTERNAL TO MINING INTERNSHIP/GRADUATE DEVELOPMENT
           PROGRAMME TARGETS AT WMC COLLIERY (FY 2018 TO 2022)		        27
TABLE 29: EMPLOYMENT EQUITY UNDERTAKING					                            28
TABLE 30: FORM S: EMPLOYMENT EQUITY STATISTICS AT WMC
           COLLIERY AS AT 28 FEBRUARY 2017					28
TABLE 31: DEVELOPMENT OF HDSA’S INTO MANAGEMENT				                     29
TABLE 32: HDSAS IN MANAGEMENT TARGETS FOR WMC COLLIERY
           (FY 2018 TO 2022)								29
TABLE 33: WOMEN AT THE MINE							30
TABLE 34: TARGETS FOR PARTICIPATION OF WOMEN IN MINING AT
           WMC COLLIERY (FY 2018 TO 2022)					                          30
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
TABLE 35: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION – POPULATION      32
TABLE 36: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION - DWELLING TYPE   33
TABLE 37: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         ABLUTION FACILITIES								33
TABLE 38: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         PORTABLE WATER ACCESS							34
TABLE 39: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION - REFUSE REMOVAL 34
TABLE 40: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         ENERGY SOURCE USED FOR COOKING						35
TABLE 41: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         ENERGY SOURCE USED FOR HEATING						35
TABLE 42: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         ENERGY FOR LIGHTING								35
TABLE 43: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION -
         EDUCATIONAL PROFILES								36
TABLE 44: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION – EMPLOYMENT      36
TABLE 45: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION –
         INDIVIDUAL MONTHLY INCOME							36
TABLE 46: SOCIO-ECONOMIC PROFILE OF SURROUNDING REGION –
         SECTORIAL EMPLOYMENT							37
TABLE 47: IDP PRIORITY ISSUES AND OBJECTIVES FOR NKANGALA DISTRICT
          MUNICIPALITY									38
TABLE 48: KEY LED PRIORITIES AND OBJECTIVES OF THE STEVE TSHWETE
         LOCAL MUNICIPALITY								39
TABLE 49: RECORD OF STAKEHOLDER ENGAGEMENT					                          40
TABLE 50: FIVE (5) YEAR PROJECT SUMMARY PLAN FOR LOCAL
         ECONOMIC DEVELOPMENT PROJECTS OF WMC COLLIERY			                41
TABLE 51: HOUSING AND LIVING CONDITIONS UNDERTAKING				                  41
TABLE 52: HEALTH CARE AND NUTRITION PLAN UNDERTAKING				                 42
TABLE 53: BACKGROUND ON PREFERENTIAL PROCUREMENT HDSA UNDERTAKING        42
TABLE 54: TARGETS FOR HDSA PROCUREMENT AT WMC COLLIERY FOR FY
         2018 TO 2022									43
TABLE 55: DOWNSCALING AND RETRENCHMENT UNDERTAKING				                   45
TABLE 56: STRATEGIC ACTION PLAN FOR FUTURE FORUM					                    45
TABLE 57: STRATEGIC ACTION PLAN TO COMMUNICATE WITH THE AUTHORITIES		    46
TABLE 58: MECHANISMS TO AVOID JOB LOSSES UNDERTAKING				                 46
TABLE 59: PROVISION OF ALTERNATIVE SOLUTIONS UNDERTAKING			              47
TABLE 60: MECHANISMS TO AMELIORATE THE SOCIAL-ECONOMIC
         IMPACT UNDERTAKING								47
                                LIST OF FIGURES

FIGURE 1: MAP INDICATING THE LOCATION OF WMC COLLIERY			                 9
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
Abbreviations

ABBREVIATION    MEANING
AET             Adult Basic Education and Training
BEE             Black Economic Empowerment
CV              Curriculum Vitae
DACE            Department of Agriculture, Conservation and Environment
DMR             Department of Mineral Resources
DoL             Department of Labour
DTI             Department of Trade and Industry
EE              Economic Empowering
EIA             Environmental Impact Assessment
ELM             Emalahleni Local Municipality
FY              Financial Year
GET             General Education and Training
HDSAs           Historically Disadvantaged South Africans
HET             Higher Education and Training
HRD             Human Resources Development
HRDP            Human Resources Development Programme
ICDP            Individual Career Development Plan
IDPs            Integrated Development Plans
JV              Joint Venture
LED             Local Economic Development
LEDP            Local Economic Development Programme
MPRDA           Minerals and Petroleum Resources Development Act (no. 28, 2002)
MQA             Mining Qualifications Authority
NDM             Nkangala District Municipality
NQF             National Qualifications Framework
NSDP            National Spatial Development Perspective
PGDS            Provincial Growth and Development Strategy
RSA             Republic of South Africa
SETA            Sector Education and Training Authority
SLP             Social and Labour Plan
SMMEs           Small, Medium and Micro Enterprises
TBC             To Be Confirmed
UIF             Unemployment Insurance Fund
VCT             Voluntary Counselling and Testing
WIM             Women in Mining
WSP             Workplace Skills Plan

                                                                                  06
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
SECTION 1
     PREAMBLE
  INTRODUCTION TO
  AND BACKGROUND
INFORMATION ON THE
     OPERATION

                     07
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
1. INTRODUCTION AND PREAMBLE
1.1. Introduction

This Revised Social and Labour Plan (SLP) is submitted by South32 SA Coal Holdings Propriety Limited in compliance with the
requirements of the Mineral and Petroleum Resources Development Act of 2002 (MPRDA), to operate with an approved Social and
Labour plan for the life of the mine. A Section 102 amendment/ variation on mining right was executed on the 21st May 2015 which
amendment/ variation is yet to be registered, wherein the following four mining rights; MP 30/5/1/2/2/379MR, 30/5/1/2/2/376 MR,
30/5/1/2/2/378 MR and 30/5/1/2/2/377M; was consolidated into one mining right reference number issued under DMR Reference
number MP30/5/1/2/2/379MR.

This SLP has been compiled in terms of the MPRDA, and sets out the social and labour programmes to be in place for the life of the
mining right.

The objectives of the SLP (section 41 of the Regulations) are to:

•    Promote economic growth and mineral and petroleum resources development in the Republic (Section 2 (e) of the
      (MPRDA);
•    Promote employment and advance the social and economic welfare of all South Africans (Section 2 (f) of the MPRDA);
•    Ensure that holders of mining or production rights contribute towards the socio-economic development of the areas in
•    which they are operating as well as the areas from which the majority of the workforce is sourced (Section 2 (i) of the
     (MPRDA); and
•    To utilise and expand the existing skills base for the empowerment of HDSA and to serve the community.

1.2. Preamble

    Name of Company:                          South32 SA Coal Holdings Propriety Limited
    Name of Colliery:                         Wolvekrans Middelburg Complex
    Name and address of mining                South32. 39 Melrose Boulevard Melrose Arch Johannesburg 2076
    right holder Physical Address:
    Postal Address:                           PO Box 61820, Marshalltown, 2107
    Contact Person:                           Andre Roux
    Telephone Number:                         (013)– 689 4318
    Email Address:                            Andre.roux@South32.net
    Location of Mine:                         Wolvekrans Middelburg Complex location falls within Ward 24 of the Emalahleni
                                              Local Municipality (ELM) (Wolvekrans) and Steve Tshwete Local Municipality
                                              (STLM) (MMS) within the Nkangala District Municipality (NDM) in the Mpumalanga
                                              Province. The nearest significant towns to the WMC are Witbank (situated 25
                                              kilometres north-west of Wolvekrans and 23 kilometres west of MMS) and
                                              Middelburg (situated some 35 kilometres away to the north-east of Wolvekrans
                                              some 20 kilometres to the north of MMS).
    Commodity:                                Coal
    Life of Mine:                             30 years
    Financial Year:                           30 June
                                              Any reference in this document for the period 1 July 2017 to 30 June 2022 refers to
                                              FY2018 – FY2022.
    Reporting Period:                         July to June as per financial year

                                                                                                                                     08
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
Figure 1: Map indicating the location of WMC

1.3, Mining Methodology
WMC is an existing opencast operation that is being mined with opencast methodologies. Equipment being used includes dragline
and truck and shovel. The main opencast operations utilise the dragline for waste removal in a combination of single and double
bench configurations. a fleet of track- mounted dozers assists in dozer push over to support the dragline water removal. A fleet of
coal haulers and front-end loaders is then utilised to extract the coal and parting from the pit. A fleet of surface drill rigs drill the
waste and coal horizons. Water and diesel bowsers, service trucks for lubrication, graders and rigging equipment will then service
the entire operation.

1.4.Current and Expected Workforce
    WMC is currently at steady status with a total labour force of one thousand eight hundred and ninety-two (1,892) employees in
    permanent positions. The mine does not foresee significant changes to the labour force within the next five-year SLP period.
    Furthermore, the mine remains committed to continue the focus on preferential recruitment from their local host communities
    (currently at 95%) as outlined in Section 1.5 below.

1.5. Local Recruitment
     The breakdown of WMC’s labour sending areas is provided in Table 2 below, the majority of the employees are from local
     community and surrounding areas. The Colliery’s recruitment policy is in line with the objectives of the MPRDA in terms of
     local job creation.

                                        Table 1: Local Recruitment Undertaking Summary
  Undertaking:         The Colliery is committed to the development and transformation of the affected communities within which
                       it is operating. In order to achieve this, the mine has a strong focus on the recruitment and development of
                       local community members, with an emphasis on the development of the previously unskilled and
                       unemployed members of the affected communities.

  Summary              The Colliery’s skills development programmes have been aligned in such a manner that unskilled
                       employees (especially from the local areas) have the opportunity for career development.

                          Table 2: Labour Sending Areas at WMC Operation as at 28th February 2017
  Sending Areas                                      Count                                %
  Local                                              1793                                 95%
  In Province Employment/Other                        98                                  5%

  Inter Provincial Employment                         1

  Total:                                             1892                                  100

                                                                                                                                            09
FOR SOUTH32 SOCIAL AND LABOUR PLAN - WOLVEKRANS MIDDELBURG COMPLEX
Table 3: Occupational Distribution of Current Workforce (as at the 28th February 2017) and Expected Operation
                                     Workforce for Five (5) Years (FY 2018 to 2022)
Operation Workforce Plan         Current Labour     FY 2018       FY 2019         FY 2020      FY 2021       FY 2022
Top management (f)                                  0             0               0            0             0
Senior management (e)            13                 11            11              11           11            11
Professionally qualified and     270                303           303             303          303           303
experienced specialists and
middle management (d)
Skilled technical and            834                834           834             834          834           834
academically qualified
workers, junior management,
supervisors, foremen and
superintendents (c)
Semi-skilled and discretionary   775                721           721             721          726           741
decisions making (b)
Unskilled and defined decision   1892               1858          1858            1858         1865          1886
making (a)
TOTAL PERMANENT

                                                                                                                       010
SECTION 2
HUMAN RESOURCE
 DEVELOPMENT

                 011
2. HUMAN RESOURCE DEVELOPMENT PLAN
2.1. Introduction

The Human Resources Development (HRD) strategy for WMC focuses on talent and performance management mechanisms, in
conjunction with a competency-based career development programme and centrally managed graduate, bursary and Learnership
programmes for permanent employees. The HRD strategy is focused on the following:
• Building and enhancing human capacity and capability to support South32’s vision and strategy
• Attracting and retaining key talent by demonstrating long term commitment to employee development
• Delivering best in class learning experiences that significantly contribute to the lives of WMC employees.
Portable Skills, Literacy and Numeracy training are of further significance in the integrated HRD programme geared towards
ensuring effective business operations as well as accredited and transferable skills training amongst the workforce. The requisite
implementation monitoring and reporting mechanisms are in place at the mine to facilitate these HRD programmes.

2.2. Skills Development Plan

WMC implements skills development programmes that focus on equipping employees with skills to enhance their progression at
the Colliery and the mining industry in general, as well as their development in respect of other sectors of the economy.
The objectives for skills development are:
• Developing and growing the existing internal talent pool to meet current and future business needs with a strong emphasis on
   transformation and redressing past practices;
• Establishing a pool of skilled workers that can potentially fulfil the Company’s hard-to-find skills and transformation
   requirements;
• Allowing new entrants into the labour market to gain relevant work experience;
• Improving the quality of life of employees; and
• Providing portable and lifelong skills opportunities to improve and enhance employees’ economic independence.

WMC complies with the requirements of the Skills Development Act and will continue to submit the Operation’s Workplace Skills
Plan (WSP) annually, as required by the Act. South32 has registered all of its mining operations with the relevant Sector Education
and Training Authority (SETA), i.e. the Mining Qualifications Authority (MQA), and undertakes to continue to contribute towards
Skills Development Levies.

Key strategic plans within the Skills Development Plan for WMC are outlined in the following sections:
• Education and Training, including Adult Basic Education and Training (AET);
• Learnerships;
• Skills programmes;
• Portable skills programmes; and
• Hard-to-fill vacancies.

2.2.1. Adult Education and Training

The current literacy rate at WMC is 89% (Ref. Table 6: Form Q), with an identified AET need of a total of eighty-seven (87)
employees. The majority of which require level 3 and level 4 AET programmes, a key initiative to ensure lower skilled employees
can access future career development opportunities such as artisan and learnership programmes.

WMC will provide their AET programme on a full-time basis, offering AET levels 1 to 4, facilitated by suitably qualified and
accredited service providers. The Colliery has committed a total of 3.9 million Rand over the five-year SLP Period to adult
education and training and will continue to strive to provide eligible employees access to the relevant AET programmes, through
the following mechanisms:
• Linking AET to various skills programmes;
• Unions as ambassadors; and
• In-house recognition for achievements (graduation ceremony).

WMC’s HRD will monitor enrolments in the respective levels of AET monthly and quarterly and continue reporting through existing
mechanisms.
In addition to monitoring progress, WMC HRD will conduct individual sessions with identified AET candidates (below AET Level 4)
to inform them of the benefits of obtaining an AET Level 4 qualification. Candidates opting not to be part of the AET programme will
be requested to provide a written submission to HRD management providing reasons for not participating in the programme. Table
4 below outlines the commitment from WMC towards their AET programme.

                                                                                                                                       012
Table 4: Adult Education and Training Undertaking
     Undertaking:                  WMC undertakes to assist in improving the foundations for skills development by increasing the
                                   literacy rate through participation in AET. The Company will focus on providing education and
                                   training opportunities through AET training from Pre - AET to AET level 4.
     Summary                       Employees at WMC will be assessed on a continuous basis within the development and
                                   performance management process to ensure that the minimum entry levels are achieved.
                                   Furthermore, AET training will be utilised as one of the mechanisms to achieve the minimum
                                   level of entry to other skills development. Once the objectives have been reached as set out, the
                                   skills development programme will focus on providing higher training opportunities through the
                                   successive NQF levels.
     Responsible Person            Strategic Action                                                                      Timeframe
     HRD Superintendent            Develop a detailed programme to provide AET to those employees who are still          Annually
                                   eligible for AET.
     HRD Superintendent            Develop a detailed programme to increase the number of participants in NQF            Annually
                                   Level 1 training, and expand the training to higher levels.

As indicated in Form Q (Table 6), the current AET need at WMC is eighty-seven (87) employees. Form Q will be updated at the end of
each reporting cycle of the Colliery and submitted to the DMR. Details of the AET programmes provided for each of the following years,
and the beneficiaries thereof, will be included in the Workplace Skills Plans (WSPs), which will be updated and submitted once a year to
the MQA and integrated into the SLP. Table 5 below further provides a detailed breakdown of the AET need and annual training targets
and budget provision at the colliery. It should be noted however, that WMC has embarked on a process to verify the educational levels of
all employees to ensure the details are accurately and comprehensively captured on the HR Database.

                                             Table 5: AET Targets at WMC (FY 2018 to 2022)
AET Level 1     5              0                    0                 0                 0                  0                   0
AET Level 2     24             2                    2                 2                 2                  2                   10
AET Level 3     28             6                    6                 6                 6                  6                   30
AET Level 4     30             6                    6                 6                 6                  6                   30
Total AET       87             14                   14                14                14                 14                  70
Enrolments
Budget:                        R658 000             R723 800          R789 600          R855 400           R921 200            R3 948 000

                                                                                                                                       013
Table 6: Form Q – Functional Literacy at WMC as at 28 February 2017
General           No Schooling                4                            1                      4      1
Education         Grade 0 / Pre school                                                            0      0
and Train-
                  Grade 1/ Sub A                                                                  0      0
ing (GET)
                  Grade2/ Sub B                                                                   0      0
                  Grade 3/ Std1/AET 1         18                           1                      18     1
                  Grade4/ Std 2               5                                                   5      0
                  Grade 5/ Std 3/ AET 2       17                           1                      17     1
                  Grade 6/ Std 4              10                                                  10     0
                  Grade 7/Std 5/AET 3         25                                                  25     0
                  Grade 8/ Std 6              3                  1         1                      4      1
             1    Grade 9 /Std 7/ AET         95     1           3         30                     99     30
                  4 / N1
                  General Education and
                  Training
                  Certificate / Some
                  National
                  Certificates
Further      2    Grade 10/ Std 8/ N2         70                 3         1                      73     1
Education         Some Certificates /
and Train-        Some National
ing               Certificates

             3    Grade 11/ Std 9/ N3         118                33        18                1    151    19
                  Some Certificates /
                  Some National
                  Certificates
             4    Grade 12/ Std 10/ N4        699    9     2     176       159     2         21   886    182
                  Further Education and
                  Training
                  Certificates / National
                  Certificate:
                  Vocational / National
                  Senior
                  Certificate / Some other
                  National
                  Certificates
Higher       5    2 year National Diplo-      93     4           39        26                4    136    30
Education         mas / 1 year
and Train-        Higher Certificates / N4,
ing (HET)         N5 & N6
                  National Certificates
             6    3 year National &           43                 21        22                5    64     27
                  Higher
                  Diplomas / Some other
                  2-3 year
                  Diplomas / Advanced
                  Certificate
             7    3 year Degrees / Higher     33     1     2     25        25                3    61     28
                  or
                  Advanced Diplomas
             8    4 year Degrees and          3            1     3         5                 1    7      6
                  Honour's
                  Degrees
             9    Master's degrees                               4         1                      4      1
             10   Doctorates                                                                      0      0

                  TOTAL                       1236   15    5     308       291     2     0   35   1564   328

                                                                                                               014
WMC has extended their AET programme to the benefit of the local host community and has committed a total budget of 4.7
million rand over the five-year period to avail AET training opportunities to community members. The programme will commence in
FY 2019 and a total of eighty (80) training interventions will take place during the SLP period. Table 7 below provides the targets
and associated budget for implementation of the community programme.

                                  Table 7: Community AET Targets at WMC (FY 2018 to 2022)
 AET Level 1       0                   5                  5                   5                   5                 20

 AET Level 2       0                   5                  5                   5                   5                 20

 AET Level 3       0                   5                  5                   5                   5                 20

 AET Level 4       0                   5                  5                   5                   5                 20

 Total AET
                   0                   20                 20                  20                  20                80
 Enrolments

 Budget:           R0                  R1 034 000         R1 137 400          R1 251 140          R1 376 254        R4 798 794

Learnerships programmes play a key role in the develop of career progression opportunities for semi-skilled and skilled employees
in the mining industry. Section 2.2.2 below outlines the commitments towards the implementation and management of a robust
Learnership programme at WMC-.

2.2.2. Learnerships

A learnership is a registered and accredited learning programme that includes practical work experience as well as theoretical
studies, thereby integrating both workplace and institutional learning. Learnerships enable learners to work towards a qualification
whilst being employed. The purpose of the learnership programme is to equip new and future employees with skills to assist
them in undertaking their responsibilities more efficiently and may allow their progression into other positions at WMC, when
opportunities arise.

The specific Learnership programmes offered will continue to be informed by both the skills requirements of the Colliery (in line
with the WSP, Hard-to-Fill Vacancies and the business plan) as well as the forecasted skills scarcity within the mining industry over
the next five (5) years (as per the MQA’s Sector Skills Audit).
• Candidates for the Learnership programmes will continue to be identified and selected through the agreed recruitment and
   selection policy/process of WMC.
• Each Learnership programme is a set programme, consisting of a theoretical and a practical component.
• WMC will continue to budget annually for the Learnership programmes (Ref Table 9 & 10).
• Appropriately trained mentors will be appointed for each learner at WMC.
• Systems will be developed and implemented to record and monitor WMC’s compliance in terms of its progress to achieve the
   envisaged Learnership targets for annual SLP reporting purposes.
• Accreditation to be in place through MQA for all Learnership Programmes.

On successful completion of the Learnership programme, the learners will be placed on a three (3) month probationary period
at the Colliery where appropriate vacancies exist. Should vacancies not be available at WMC, other South32 collieries will be
approached to determine suitable placement opportunities. As the placement of learners is dependent on vacancies at the
operation, it is not possible to guarantee the successful placement and/or promotion of learners on completion of their Learnership
programme.

                                                                                                                                        015
Table 8: Learnerships Undertaking
       Undertaking:                             The provision for learnerships within the Colliery is aimed at addressing current and future skills
                                                and competency needs in terms of the Career Path structure and Manpower process. WMC
                                                undertakes, and will continue to facilitate access to learnerships for identified individuals based
                                                on an employment ratio of 80:20 HDSAs to non-HDSAs.
       Summary:                                 The objective of the learnerships being offered at WMC is to equip new and future employees
                                                with skills to assist them in undertaking their responsibilities more efficiently and which may allow
                                                their progression into other positions at the Colliery. The learnership programmes offered at the
                                                Colliery are informed by the skills requirements at the Colliery (in line with the WSP and business
                                                plan), and the MQA's Sector Skills Audit. Each learner will be allocated a mentor, who will
                                                meet with the learner on a regular basis to review progress and provide support with respect to
                                                performance issues. As a mechanism to address the objective of increasing the pool of available
                                                labour, learners will be recruited, based on a strategy of maintaining a 4:1 ration between artisans
                                                and learners.
       Responsible Person                       Strategic Action                                                                       Timeframe
       HRD Superintendent                       Align the programme with WSP and hard-                                                 Annually
                                                to-fill vacancies (Form R)
       HRD Superintendent                       Ensure proper mentors are trained and                                                  Annually
                                                assigned for Learners, and that the
                                                learners receive the necessary exposure
                                                for development.

       Tables 9 and 10 below indicates the envisaged enrolment targets and associated annual budgets for the identified Section 18.1 and
       18.2 Learnership programmes for WMC for the next five (5) years. The established targets have been based on the current pass
       rates of the programme and are cognisant of the lengths of the training programmes.

                                      Table 9: Projected Section 18.1 Learnership Targets for WMC (FY 2018 to 2022)
                                                 FY 2018                FY 2019                                     FY 2020                               FY 2021                                FY 2022
                                                                                       Continuation

                                                                                                                              Continuation

                                                                                                                                                                     Continuation

                                                                                                                                                                                                            Continuation
  Learnership

                                               New Target

                                                                       New Target

                                                                                                                 New Target

                                                                                                                                                        New Target

                                                                                                                                                                                               New Target
  Programme

                    Programme

                                  Candidates

                                               Enrolment

                                                                       Enrolment

                                                                                                                 Enrolment

                                                                                                                                                        Enrolment

                                                                                                                                                                                               Enrolment
                    Length of

                                                            Pass Out

                                                                                                      Pass Out

                                                                                                                                             Pass Out

                                                                                                                                                                                    Pass Out

                                                                                                                                                                                                                                 Pass Out
                                  Current

Auto Electri-
                     3 years      2              1           0          1                3             2            1         4               1           1           1             1            1           1                    1
cal

Diesel
                     3 years      1              3           0          3                4             1            3         7               3           3           3             3            3           3                    3
Mechanic

Electrical           3 years      2              2           0          2                4             2            2         6               2           2           2             2            2           2                    2

Fitter               3 years      2              2           0          2                4             2            2         6               2           2           2             2            2           2                    2

Instrumenta-
                     3 years      0              1           0          1                1             0            1         2               1           1           1             1            1           1                    1
tion

Millwright           3 years      0              0           0          0                0             0            0         0               0           1           0             0            1           1                    0

Plater/Welder        3 years      0              1           0          1                1             0            1         2               1           2           1             1            2           2                    1

Rigger               3 years      0              0           0          0                0             0            0         0               0           1           0             0            1           1                    0

Total                             7              10          0          10               17            7            10        27              10          13          10            10           13          13                   10

Total Learnerships per
                                  7              17                     27                                          30                                    33                                     36
Annum:

Budget                          R 10 510 450     R 15 476 192           R 14 840 431                                R 22 333 022                          R 15 683 860                           R 19 963 807

                                                                                                                                                                                                                           016
The Section 18.2 Learnerships to be offered to the host community are depicted in Table 10 to follow.

                                                         Table 10: Projected Section 18.2 Learnership Targets for WMC (FY 2018 to 2022)
                                                                                                     FY 2018                               FY 2019                                          FY 2020                                             FY 2021                                           FY 2022
                                       Length of Programme

                                                                    Current Candidates

                                                                                                                                                             Continuation

                                                                                                                                                                                                                Continuation

                                                                                                                                                                                                                                                                   Continuation

                                                                                                                                                                                                                                                                                                                      Continuation
                                                                                                New Target

                                                                                                                                    New Target

                                                                                                                                                                                       New Target

                                                                                                                                                                                                                                          New Target

                                                                                                                                                                                                                                                                                             New Target
         Learnership
                       Programme

                                                                                                             Enrolment

                                                                                                                                                 Enrolment

                                                                                                                                                                                                    Enrolment

                                                                                                                                                                                                                                                       Enrolment

                                                                                                                                                                                                                                                                                                          Enrolment
                                                                                                                         Pass Out

                                                                                                                                                                            Pass Out

                                                                                                                                                                                                                               Pass Out

                                                                                                                                                                                                                                                                                  Pass Out

                                                                                                                                                                                                                                                                                                                                     Pass Out
  Auto Electrical                  3
                                                               2                                     0                   0                 0                 2              2               1                   0              0                1                  1               0              1                   1              1
                                   years

  Diesel Me-                       3
                                                               9                                     6                   0                 4                 15             9               3                   10             6                3                  7               4              3                   3              3
  chanic                           years

  Electrical                       3
                                                               2                                     5                   0                 1                 7              2               2                   6              5                2                  2               1              2                   2              2
                                   years

  Fitter                           3
                                                               7                                     7                   0                 1                 14             7               3                   8              7                3                  4               1              3                   3              3
                                   years

  Instrumenta-                     3
                                                               1                                     2                   0                 1                 3              1               0                   3              2                0                  1               1              0                   0              0
  tion                             years

  Millwright                       3
                                                               0                                     0                   0                 0                 0              0               0                   0              0                0                  0               0              0                   0              0
                                   years

  Plater/Welder                    3
                                                               2                                     4                   0                 1                 6              2               2                   5              4                2                  3               1              2                   2              2
                                   years

  Rigger                           3
                                                               1                                     2                   0                 0                 3              1               1                   2              2                1                  1               0              1                   1              1
                                   years

  Total                                                        24                                    26                  0                 8                 50             24              12                  34             26               12                 19              8              12                  12             12

  Total Learnerships                                           24                                    50                                    58                                               46                                                  32                                                36
  per Annum:

  Budget                                                     R 13 579 994,30                   R 26 184 866,89                             R 31 196 608,18                                  R 27 531 502,54                                     R 20 856 946,48                                   R 17 900 219,23

2.2.3. Core Business Skills Programme
Core Business Skills Programmes play an essential part in equipping all employees with the skills and required competencies to
successfully execute their employment responsibilities. The objective of Core Business Skills Training is to provide the required
knowledge and skills to enable employees to successfully and safely perform their roles. The Colliery will continuously align its
core business skills training programme to the requirements of all aspects of the operation. WMC core business skills training
encompasses both underground and opencast operator training.

                                                                                         Table 11: Core Business Skills Programme Undertaking
  Undertaking:                                                            Core Business Skills Training is a core element of ensuring that employees are productive,
                                                                          capable and competent in the delivery of their daily duties. WMC will undertake to conduct
                                                                          a training needs analysis to ensure the alignment of core business skills to the competency,
                                                                          developmental areas as well as core mining safety needs of the job to its employees.

  Summary:                                                                During the recruitment of the workforce individual-specific training is planned based on the
                                                                          outcomes of the skills analysis. The core business skills training that will be provided by WMC
                                                                          will be aligned to the needs analysis as well as support the inherent business production
                                                                          needs.
  Responsible Person                                                      Strategic Action                                                                                                                                                                         Timeframe
  HRD Superintendent                                                      An on-going assessment of employees to be done to identify where                                                                                                                         Annually
                                                                          gaps remain and continuous evaluation against business needs and
                                                                          development plans.
  HRD Superintendent                                                      Ensure that Skills Matrixes are align to roles and career paths. Link                                                                                                                    Annually
                                                                          PDP`s to career path as well as Skills Matrix

                                                                                                                                                                                                                                                                                                                        017
Table 12 below outlines the targets and associated budget for each financial year (FY 2018 to 2022). Table 13 provides the targets
 and budget for the implementation of the Artisan programme at the Colliery.

    Table 12: Projected Core Technical and Non-Technical Business Skills Training Targets at WMC Operation (FY 2018 to
                                                          2022)
  Training Course                Target                Target             Target              Target              Target
                                 Enrolment             Enrolment          Enrolment           Enrolment           Enrolment
                                 FY 2018               FY 2019            FY 2020             FY 2021             FY 2022
  Earth Moving Equipment         1336                  1336               1336                1336                1336
  (EME) Operators
  Mining Competent A             10                    10                 10                  10                  10
  Blasting Certificate           12                    12                 12                  12                  12
  (Rock Breaking)
  Blasting Assistant             10                    10                 10                  10                  10
  Health and Safety              30                    30                 30                  30                  30
  Rep Training
  First Aid Training             164                   164                164                 164                 164
  Code 14 Drivers License        4                     4                  4                   4                   4
  Loco Driver Training           7                     7                  7                   7                   7
  (Certification)
  (Freight Rail)
  Basic Fire Fighting            25                    25                 25                  25                  25
  Machine Operator               35                    35                 35                  35                  35
  Skills Programme
  Basic Coal Preparation         12                    12                 12                  12                  12
  Advanced Coal                  4                     4                  4                   4                   4
  Preparation
  Mining Operations              3                     3                  3                   3                   3
  Supervisory Level 4
  Strata Control                 12                    12                 12                  12                  12
  Opencast Level 2
  Total                          1664                  1664               1664                1664                1664
  Budget:                        R 2 707 371           R 2 978 108        R 3 275 918         R 3 603 510         R 3 963 861

                            Table 13: Projected Artisan Training Targets for WMC (FY 2018 to 2022)
Slinging and lifting            25                25                 25             25               20                 120
practices
Lifting and moving              8                 8                  8              8                8                  40
Practices
Medium Voltage                  10                10                 10             10               10                 50
Certification
Medium Voltage                  10                10                 10             10               10                 50
Re Certification
Overhead Crane                  4                 4                  4              4                4                  20
Certification
Overhead Crane                  8                 8                  8              8                10                 42
Re Certification
Truck Mounted crane             4                 4                  4              4                4                  20
certification
Truck Mounted Re                8                 8                  8              8                10                 42
certification

                                                                                                                                      018
Forklift Counterbalance        6    6    6    6    6    30
certification
Forklift Counterbalance        9    9    9    9    9    45
Re certification
Manito Telescopic              8    7    7    7    7    36
Boom Handler Novice
Manito Telescopic Boom         8    8    8    8    9    41
Handler Re Certification
Arial Platform                 3    3    3    3    3    15
Certification Novice
Arial Platform Certification   5    5    5    5    5    25
Re certification
Fall Arrest Technician         20   10   10   9    9    58
Level 2
Health and Safety              10   4    4    4    4    26
Rep Training
Starting, Stopping and         9    9    10   10   10   48
Driving Earthmoving
Equipment
6060 Mechanical Training       2    2    2    1    1    8
6060 Electrical Training       2    2    2    1    1    8
CAT Basics                     2    2    2    2    2    10
CAT Drive Train                5    5    5    5    5    25
CAT Electrical Systems         3    3    3    3    3    15
CAT Electronic Systems         4    4    4    4    4    20
CAT Electronic Technician      1    1    1    1    1    5
CAT Intermediate               6    6    6    6    6    30
Fuel Systems
CAT Intermediate               4    4    4    4    4    20
Hydraulics
CAT Preventative               5    5    5    5    5    25
Maintenance
PC CAT 6060 - Shovels          0    0    0    0    0    0
Assessment
Siemens Relay Training         2    2    2    2    2    10
Wi-Fi Basic Training           2    1    1    1    1    6
Advanced Gas Safety            7    7    7    8    8    37
CASCAM                         4    4    4    4    3    19
Basic Welding                  1    1    1    1    0    4
Coaching                       15   7    7    7    8    44
Mentoring                      7    7    7    7    8    36
Man Truck Service Training     4    4    4    1    0    13
Confined Spaces                20   10   10   10   10   60
Electric Over Hydraulic        15   5    5    5    5    35
Drill Training
Rig Control Systems            2    2    2    2    2    10
Training
Chain Fitment and Tension      4    4    4    3    3    18
Lincoln Training               2    2    2    2    2    10

                                                             019
PLC Training                       3                  3                2                2                2                  12
  Earthing and                       1                  1                1                1                0                  4
  Lighting Training
  Oil Analysis Training              4                  3                3                3                3                  16
  Total                              282                235              235              229              227                1208
  Budget                             R2 616 517         R2 878 168       R3 165 985      R3 482 584        R3 830 842         R15 974 095

2.2.4. Portable Skills Training

WMC intends to offer access to non-mining related skills development programmes for those individuals who may be affected by
downscaling and retrenchment. Access to the potential training programmes will be provided six (6) months prior to any pending
retrenchment exercise at WMC for the remaining life of the operation and will be communicated to affected employees through the
Future Forum.

                                               Table 14: Portable Skills Undertaking
 Undertaking:                        WMC is dedicated to providing opportunities in training and development, thereby
                                     increasing their marketability in the open labour marketing in the possible event
                                     of retrenchment and mine closure. Furthermore, the mine is committed, not only
                                     to equip and prepare employees for the open labour market, but simultaneously
                                     providing the opportunity to obtain NQF credits towards a National Qualification.
 Summary:                            Provision of portable skills to employees during the life of the mine in accordance
                                     with the skills development plans and workforce planning particularly non-mining
                                     related skills. Ramp-up of portable skills training in the last two (2) years of life
                                     of mine, or six (6) months prior to when downscaling becomes inevitable. Such
                                     portable skills must have an impact beyond the company and mining industry
                                     and provide for sustained employability and will, wherever feasible:
                                     (a) Build on employees’ existing skills and be recognised nationally;
                                     (b) Enable employees to manage their careers by addressing identified skills gaps; and
                                     (c) Supplement existing skills with business-related training where appropriate.
 Responsible Person                  Strategic Action                                                                    Timeframe
 HRD Superintendent                  A Skills Development Forum has been established and will focus on                   Ongoing
                                     overseeing the implementation of the skills development programmes
                                     aligned to the Human Resource Development programme (HRDP),
                                     which will be reviewed on a monthly and annual basis.
 HRD Superintendent                  Continue to publicise portable skills training                                      Ongoing
                                     programmes amongst employees.
 HRD Superintendent                  Report and monitor employees that may be close to                                   Ongoing
                                     retirement and target for portable skills non-mining.

Table 15 offers an overview of Portable Skills initiatives the mine envisages as part of their training and development initiatives.
Table 16 reflects the portable skills training programme for the skills development within the host community.

                                                                                                                                       020
Table 15: Portable Skills Training for WMC (FY 2018 to 2022)
Wonderware                                10            2            2            2              2            18

Process Automation (Radiation Safety)     5             5            5            5              5            25

Slinging and lifting practices            30            30           30           30             30           150
Lifting and moving Practices              5             5            5            5              5            25

Medium Voltage Certification              4             4            4            4              4            20

Medium Voltage Re Certification           5             4            4            4              4            21
Overhead Crane Certification              15            15           15           15             15           75
Overhead Crane Re Certification           15            15           15           15             15           75

Truck Mounted crane certification         3             3            3            3              3            15

Truck Mounted Re certification            3             3            3            3              3            15

Forklift Counterbalance certification     7             7            7            7              7            35

Forklift Counterbalance Re
                                          7             7            7            7              7            35
certification
Manito Telescopic Boom Handler
                                          5             5            5            5              5            25
Novice
Manito Telescopic Boom Handler Re
                                          5             5            5            5              5            25
Certification
Arial Platform Certification Novice       5             5            5            5              5            25
Arial Platform Certification Re
                                          10            10           10           10             10           50
certification
Gas Safety International: Lancing for
                                          3             3            3            3              3            15
Supervisors
Gas Safety International for
                                          3             3            3            3              3            15
Supervisors

Fall Arrest technician Level 2            30            30           30           30             30           150

Fall Arrest Supervisor                    15            15           15           15             15           75

Health and Safety Rep Training            25            25           25           25             25           125
Starting, Stopping and Driving
                                          10            10           10           10             10           50
Earthmoving Equipment

6060 Mechanical Training                  2             2            2            2              2            10

6060 Electrical Training                  2             2            2            2              2            10

Siemens Relay Training                    1             1            1            1              1            5

Wi-Fi Basic Training                      2             2            2            2              2            10

Advanced Gas Safety                       1             1            1            1              1            5

Gas Safety Awareness                      10            10           10           10             10           50
CASCAM                                    5             5            5            5              5            25
Basic Welding                             3             3            3            3              3            15
Coaching                                  40            5            5            5              5            60
Mentoring                                 25            5            5            5              5            45
Man Truck Service Training                1             1            1            1              1            5
Confined Spaces                           15            15           15           15             15           75
Confined Spaces for Supervisors           5             5            5            5              5            25

Chain Fitment and Tension                 3             3            3            3              3            15

Lincoln Training                          2             2            2            2              2            10
PLC Training                              2             2            2            2              2            10
Earthing and Lighting Training            2             2            2            2              2            10
Oil Analysis Training                     3             3            3            3              3            15
Mining: Earth Moving Equipment
                                          20            20           20           20             20           100
Theory Training
Mining: Earth Moving Equipment
                                          20            20           20           20             20           100
Simulator Training
Mining: Earth Moving Equipment
                                          20            20           20           20             20           100
Practical Training

Total                                     404           340          340          340            340          1764

Budget                                    R1 088 202    R1 197 022   R1 316 724   R1 448 396     R1 593 236   R6 643 579

                                                                                                                           021
Table 16: Community Portable Skills Training for WMC (FY 2018 to 2022)
  Training Courses                    Target              Target         Target           Target           Target            Total
                                      Enrolment           Enrolment      Enrolment        Enrolment        Enrolment         (FY 2018
                                      FY 2018             FY 2019        FY 2020          FY 2021          FY 2022           to 2022)
  Driver Training                     0                   5              5                5                5                 20
  Machine Training                    15                  5              5                5                5                 35
  Blasting Assistant                  15                  5              5                5                5                 35
  Total                               30                  15             15               15               15                90
  Budget                              R500 000            R25 000        R25 000          R25 000          R25 000           R100 000

2.2.5. Hard to Fill Vacancies

Table 17 presents the Colliery’s current skills shortages affecting the operation’s recruitment process. Hard-to-fill vacancies will
be addressed in part by the Colliery; through the implementation of skills development programmes and learnerships as described
in the sections above. These programmes will attempt to build capacity in the areas in which it is needed and will be based on the
WSP and Skills Development Plan. The placement of individuals in hard to fill vacancies may need to be sourced from other mining
sectors and areas.

                                               Table 17: Form R- Hard to fill vacancies
  Occupational level                       Job title or         Main reason for inability                 Intervention
                                           vacancy              to fill the vacancy
  Top Management
  Senior Management
  Professionally qualified and             Superintendent       Due to a shortage of skills in the        Talent Management &
  experienced specialist and mid           Rock Engineer        Coal Mining Industry                      Succession Planning
  management
  Skilled technical and                    Instrumentation      It’s a scare skill in the market and      Increase number of
  academically qualified workers,          Technician           expensive                                 Instrumentation learners and
  junior management, supervisors           Diesel Mechanic                                                include scare skill allowance
                                                                                                          for Instrumentation
  Semi-skilled and discretionary           Controller           Candidates with Lump Ore                  Process leaners required to
  decision making                          Operator             Beneficiation (Coal Preparation)          be developed further
                                                                required, internal plant attendant
                                                                currently don’t have minimum
                                                                requirement to be trained.

2.2.6. Career Progression Plan

The career progression plan aims to illustrate a career path for employees, indicating possible routes to move or change from one
role or position to another within a specific discipline through defining competencies such as skills and experience required by
the various job categories. The Colliery’s training and development programmes then become a mechanism through which the
required competencies are developed. The movement could either be to a position on the same level or a position on a higher
level. The path of career progression could also be applied during selection and recruitment, training and development, as well as
talent management. Some of the performance requirements of this standard are that:
• A formal review of the talent pool occurs every six (6) months at the Colliery, HRD Central and South32 talent reviews;
• Succession plans are in place for all key roles, and nominated successors are rated based on readiness and suitability; and
• Talent pipeline gaps are identified and plans are in place to address the shortfalls.

Through this process, individuals with talent and potential are identified, verified and discussed at departmental and operational
talent forums at the Colliery. The information is forwarded to regional talent forums for different functional areas, where individuals
with emerging talent are discussed in terms of development plans and possible transfers within South32. The performance
management system currently in place at WMC, whereby employees are assessed against specific performance measures, forms
an integral part of the talent management process.

                                                                                                                                          022
Table 18: Career Progression Undertaking
Undertaking:                WMC undertakes to actively promote career progression and succession opportunities among
                            its employees and refine the Career Progression Programme. A career management system
                            has been implemented and is in line with the South32 Career Management Programme. This
                            programme forms the basis on which on-going career path development will continue for
                            relevant employees at the Colliery. The Colliery's training and development programme is the
                            mechanism through which the required competencies are developed and results either into
                            positions on the same level or a position on a higher level. Furthermore, career management
                            committees have been established and identify and monitor the Colliery's talent pool to facilitate
                            appropriate skills development for employees in order to meet the operations business plan as
                            well as to ensure individuals at all occupational levels are developed in respect of their skills.
Summary:                    WMC has further established a talent management system to facilitate performance management,
                            whereby employees are assessed against specific performance measures. The Career Progression
                            Programmes will be linked to the Skills Development Programme, learnerships, internships, bursaries,
                            mentorship programme and Employment Equity Programme. Mechanisms will be implemented for
                            individuals to have the opportunity to progress from lower skilled levels into higher skilled working
                            levels including management levels, should job opportunities arise and positions become vacant.
                            The career progression plan will ensure that the qualifications, aspirations, developmental needs,
                            and potential capabilities of all employees are accounted for in line with the needs of the Company's
                            business needs. WMC, will furthermore, ensure that their employees are mentored according to their
                            career path requirements on a regular basis in order to facilitate progression within the Company.

Responsible Person          Strategic Action                                                                                   Timeframe
HR Department               Skill shortages and employment equity needs to be aligned                                          Continuous
                            to fast tracking plans for succession of HDSAs and identified
                            women with potential from the established talent pools.
HR Department               South32 has developed a Leadership Development                                                     Continuous
                            programme for employees on Paterson D level and above
                            which will be rolled out over the five-year period

                                   Table 19: Employees with Individual Development Plans
                      FY 2018                     FY 2019                   FY 2020                   FY 2021                      FY 2022
                      Employees

                                                  Employees

                                                                            Employees

                                                                                                      Employees

                                                                                                                                  Employees
                                    % with IDP

                                                               % with IDP

                                                                                         % with IDP

                                                                                                                  % with IDP

                                                                                                                                              % with IDP
 Employee
                      with IDP

                                                  with IDP

                                                                            with IDP

                                                                                                      with IDP

                                                                                                                                  with IDP
 Categories
                      No. of

                                                  No. of

                                                                            No. of

                                                                                                      No. of

                                                                                                                                  No. of

 Paterson E Level     3            27%            3           27%           3           27%           3           27%              3          27%

 Paterson D Level     80           26%            80          26%           80          26%           80          26%              80         26%

 Paterson C Level     200          24%            200         24%           200         24%           200         24%              200        24%

 Paterson B Level     218          30%            218         30%           218         29%           218         30%              218        29%

 Total                501          27%            501         27%           501         27%           501         27%              501        27%

Section 2.2.7 provides the Mentorship programme implementation actions and associated targets.

2.2.7. Mentorship Plan

WMC defines mentoring as the transfer of experience and attributes from a mentor (an experienced, more senior employee either
from WMC or from another operation) to a protégé (junior employee with less experience in the relevant field of expertise) with the
intention of improving the competencies of the protégé to meet the current and future job requirements. Mentoring is a term that
describes a relationship and a process to share experience and strategic advice that leads to greater capacity and performance.
To summarise, mentors are:
• Advisers, people with career experience willing to share their knowledge;
• Supporters, people who give emotional and moral encouragement;
• Tutors, people who give specific feedback on one’s performance;
• Sponsors, sources of information about and aid in obtaining opportunities;
• Models, of identity of the kind of person one aspires to be as leader or an expert.

                                                                                                                                                           023
Mentorship is a key process and tool in support of people development, HRD planning, performance management and employment
equity. It is a formal relationship between a mentor and a mentee, and is established to enhance the mentee's career by building
skills and knowledge. A mentorship programme is in essence a process to foster a continuous mentorship relationship between the
mentor and the mentee. The objective is to ensure that the maximum potential of the mentee is unlocked for the mutual benefit to
the mentee, mentor and the Colliery.

                                                 Table 20: Mentorship Undertaking
 Undertaking:                   WMC will actively promote mentorship opportunities among its current and future employees and
                                will use financial year 2018 to refine and formalise the Colliery’s Mentorship Programme linked
                                to the Career Progression Programme. The Mentorship programme will focus on mentoring and
                                coaching HDSAs and women into more specialised technical and managerial positions, in line with
                                the skills and employment equity requirements of WMC.
 Summary:                       WMC will continue to ensure that all permanent employees at supervisory and management levels
                                have a CDP with a target of achieving 100% compliance.
 Responsible Person             Strategic Action                                                                         Timeframe
 HRD Superintendent             Formalise mentorship programme and align it with the Career Progression                  Continuous
                                Programme, Skills Development Programme, Internship & Bursary Programme
                                and Employment Equity Programme. Align with the skills need and employment
                                equity need of Wolvekrans Middelburg Complex.
 HRD Superintendent             Determine internal mentorship need and individuals with potential to be                  Continuous
                                earmarked as mentors. Assess line and senior management aptitude to be
                                mentors for internal mentorships programme.

All graduates / interns and learners are directly supported by a targeted mentorship programme. Each individual in this
programme is allocated a mentor from South32’s broader Management Team (i.e. Patterson D and E Levels). These mentors are
pivotal and mandatory in both of these programmes and are at a mature state of maintenance and implementation (i.e. all current
graduates and learners have designated, active mentors).

                                                 Table 21: Mentorship Target Table:
                                                     2018                2019               2020             2021             2022
  Learnerships 18.1                                  17                  27                 30               33               36
  Learnership 18.2                                   50                  58                 46               32               36
  Bursaries (Internal)                               16                  30                 30               30               12
  Bursaries (External)                               11                  11                 11               11               11
  Internships (Internal)                             13                  17                 22               4                3
  Internships (External)                             2                   3                  10               0                0
  Total:                                             109                 146                149              110              98

2.2.8. Bursary Plan and Graduate Development Programme (Internship)

WMC is well aware of the need not only to assist its own employees with development opportunities, but also to provide
opportunities for members of the local community and surrounding areas to access tertiary education opportunities (bursaries)
and experiential work opportunities (internships). The bursary and internship plan links in with developing individuals to supply
the operation with its future skill requirements. Apart from business related qualifications, the Company is also aware of the need
to develop qualified individuals from communities, affected by the operation, in other sectors of the economy. WMC will equip its
employees with skills which are portable to other sectors of the economy upon downscaling or closure.

WMC’s internship and bursary plan will continue to focus on equipping people from Mpumalanga in particular and rest of South
Africa in general, who have an interest in the mining industry, with the necessary skills, aptitude and abilities. In order to acquire
a pool of high performing learners in Mpumalanga and to develop critical skills in the province, South32 will actively promote the
bursary opportunities available to learners. The target is to maintain a bursary portfolio with a 70:30 bias towards HDSAs. This
percentage may vary based on the quality of the pool available.

2.2.8.1. Full Study Bursaries:

Bursaries are available to students (even if they have no current relation to the company) for full time studies at South African
Universities or Universities of Technology in mining disciplines. The adjudication of bursaries is based on the achievements of
applicants and bursaries are open for studies in disciplines offered at a South African University or University of Technology.
Further to the external bursary programme, South32 offers ‘Child of Employee” bursaries whereby financial aid is provided to
employees for their children’s studies and no work obligation is required to be fulfilled by the student. The value of a bursary is
determined annually by South32’s management team.

                                                                                                                                         024
2.2.8.2. Study Assistance:

            Financial Study Assistance (Study Loan) is also available to WMC employees in order to encourage the workforce to obtain better
            qualifications in fields of study that would benefit the operation. This financial assistance is managed by the operation.

                                                                                                                                 Table 22: Bursary Plan Undertaking
              Undertaking:                                                                         The bursary plan is linked to development of individuals in order to supply the operation
                                                                                                   with the required skilled people. Furthermore, the Company is aware of the need to develop
                                                                                                   qualified individuals from the local community, affected by the Colliery, in other sectors of the
                                                                                                   economy. Furthermore, the Colliery commits to continue to provide tertiary education bursaries
                                                                                                   to qualifying learners to pursue courses in various fields of study, whether at University or
                                                                                                   University of Technology, including dependents of employees.
              Summary:                                                                             WMC will equip its employees with skills which are portable to other sectors of the economy
                                                                                                   upon downscaling and closure. South32 has established a Central Bursary Scheme that provides
                                                                                                   for training of individuals in disciplines such as, Mining Engineering, Electrical Engineering,
                                                                                                   Mechanical Engineering, Industrial Engineering, Metallurgy, Mine Survey, Geology and Finance.
                                                                                                   The bursary scheme furthermore provides bursaries to students for full-time studies at selected
                                                                                                   South African Tertiary Institutions. The bursaries are open to all Grade 12 scholars as well as
                                                                                                   students who are already studying.
              Responsible Person                                                                   Strategic Action                                                                                                                                                                                           Timeframe
              HRD Superintendent                                                                   Review Study assistance programme in line with the business objectives                                                                                                                                     Annually
                                                                                                   as well as community programmes
              HRD Superintendent                                                                   Inform the business of Industry trends and also align with the SETA                                                                                                                                        Annually
                                                                                                   Sector Skills Plan

                                                Table 23: Targets for Child of Employee Bursary Programmes at WMC (FY 2018 to 2022)
                                                                               FY 2018                                                     FY 2019                                                FY 2020                                                    FY 2021                                                   FY 2022
                                                  Current Candidates

                                                                                                      Continuation

                                                                                                                                                                 Continuation

                                                                                                                                                                                                                        Continuation

                                                                                                                                                                                                                                                                                    Continuation

                                                                                                                                                                                                                                                                                                                                             Continuation
                                                                         New Target

                                                                                                                                     New Target

                                                                                                                                                                                           New Target

                                                                                                                                                                                                                                                      New Target

                                                                                                                                                                                                                                                                                                                 New Target
            Programme

                                    Programme

                                                                                      Enrolment

                                                                                                                                                  Enrolment

                                                                                                                                                                                                        Enrolment

                                                                                                                                                                                                                                                                   Enrolment

                                                                                                                                                                                                                                                                                                                              Enrolment
                        Length of

                                                                                                                     Pass Out

                                                                                                                                                                                Pass Out

                                                                                                                                                                                                                                           Pass Out

                                                                                                                                                                                                                                                                                                   Pass Out

                                                                                                                                                                                                                                                                                                                                                            Pass Out
  Bursary

Chemical
                                4
Engineer                                                                              0                  0             0                      1                     1             0                     0                  2                 0                     0                   2             1                    1                     1             1
                          years
(Min Proc)

Electric and
                                4
Electronic                                            1                               0                  0             1                      1                     1             0                     0                  2                 0                     0                   2             1                    1                     1             1
                          years
Engineer

Geology                         4
                                                                                      0                  0              0                     2                     3              0                    0                  5                  0                    0                   5             3                    2                     2             2
                          years

Industrial                      4
                                                                                      0                  0              0                     1                     1              0                    0                  2                  0                    0                   2             1                    1                     1             1
Engineer                  years

Mechanical                      4
                                                                                      0                  0              0                     4                     4              0                    0                  8                  0                    0                   8             4                    4                     4             4
Engineer                  years

Metallurgy                      4
                                                                                      0                  0              0                     2                     2              0                    0                  4                  0                    0                   4             2                    2                     2             2
                          years

Mining En-                      4
                                                                                      0                  0              0                     3                     4              0                    0                  7                  0                    0                   7             4                    3                     3             3
gineering                 years

Total                                                 1                           0                      0             1                    14                    16              0                 0                   30                   0                 0                    30             16                   14                    14            14

Total Bursaries
                                                                                                       1                                                           30                                                   30                                                            30                                                       28
at the Mine

Budget                                          R 26 000                                          R 1 404 489                                                 R 3 363 501                                           R 3 699 851                                                R 4 069 836                                                R 4 112 711

                                                                       Table 24: Targets for External Bursary Programmes at WMC (FY 2018 to 2022)
              External Bursars                                                                                                  Current                                         FY 2019                                                FY 2020                                  FY 2021                                       FY 2022
              External Bursars                                                                                                  14                                              5                                                      5                                        5                                             5
              Total                                                                                                             14                                              5                                                      5                                        5                                             5
              Budget:                                                                                                           R 1 400 000                                     R 500 000                                              R 600 000                                R 650 000                                     R 700 000

                                                                                                                                                                                                                                                                                                                                                            025
Table 25: Summary of Employee Study Assistance Targets at WMC (FY 2018 to 2022)
                              Target                 Target                  Target                  Target           Target
School Programme
                              Enrolment              Enrolment               Enrolment               Enrolment        Enrolment
Training Course
                              FY 2018                FY 2019                 FY 2020                 FY 2021          FY 2022
Postgraduate Diploma in       1                      1                       1                       1                1
Management Practice
Btech Mining                  1                      1                       1                       1                1
Engineering
Btech Safety                  1                      1                       1                       1                1
Management
Intro to Mining               1                      1                       1                       1                1
Engineering
MBA                           2                      2                       2                       2                2
ND Engineer Mech.             1                      1                       1                       1                1
ND Mine Surveying             1                      1                       1                       1                1
ND Safety Management          1                      1                       1                       1                1
Postgraduate Diploma in       1                      1                       1                       1                1
Management
Post Graduate                 1                      1                       1                       1                1
Diploma in Business
Administration
Programme in                  3                      3                       3                       3                3
Maintenance
Management
Total:                        14                     14                      14                      14               14
Budget:                       R 607 133              R 667 847               R 731 236               R 797 568        R 867 451

Section 2.2.9 to follow provides the proposed implementation of the Internship Plan (Graduate Development Programme).

2.2.9. Internship and Graduate Development Programme:

South32 offers graduate programmes in various disciplines to diplomats and graduates with the focus on the development and
training of employees in the technical disciplines. Graduate programmes are currently offered in the following disciplines: Mining
(Graduates and Diplomats); Engineering (Graduates and Diplomats); Finance; Human Resources; and Geology. A Central Training
Account (CTA) has been established to provide for the funding of training and development of the graduates. WMC participates
and contributes financially to the CTA. On completion of their studies, the bursars participate in a two-year graduate programme
through the CTA to obtain practical work experience. Within their structured programmes, graduates will undergo specific technical
and leadership training to facilitate the acquisition of a professional qualification.

                  Table 26: Feedback on Internship and Graduate Development Programme Undertaking
Undertaking:                   The internship plan is linked to development of individuals in order to supply the operation with the
                               required skilled people. Furthermore, the Company is also aware of the need to develop qualified
                               individuals from the local community, affected by the Operation, in other sectors of the economy.

Summary:                       Internships are offered in various disciplines to diplomats and graduates with the focus on
                               development and training of employees in the technical disciplines such as Mining, Finance,
                               Human Resources (HR) and Geology. Furthermore, on completion of studies the bursars are
                               given a two (2) year internship in order for them to gain the practical work experience. Within a
                               structured programme graduates undergo specific technical and leadership training to facilitate the
                               acquisition of a professional qualification. All CTA participants are incorporated into the Career
                               Management Committees and are mentored at the operation through their training.
Responsible Person             Strategic Action                                                                  Timeframe
HRD Superintendent             Develop plans to target students at the surrounding Universities of               Annually
                               technology.
HRD Superintendent             Practical experience students are monitored and evaluations are done              Annually
                               quarterly to track progress

                                                                                                                                       026
Tables 27 and 28 below provides the targets in respect of the Internal to Mining Internship as well as the External to Mining
Internship programmes respectively.

         Table 27: Mining Related Internship/Graduate Development Programme Targets at WMC (FY 2018 to 2022)
   Internships                    FY 2018           FY 2019        FY 2020          FY 2021           FY 2022        Total (FY 2018
   Programmes                                                                                                        to 2022)
   Engineering                    2                 3              6                0                 0              11
   Industrial Engineering         2                 0              1                0                 0              3
   Mining                         4                 5              8                2                 1              20
   Geology                        2                 1              1                0                 0              4
   Metallurgy                     2                 4              5                0                 0              11
   Survey                         0                 2              1                2                 2              7
   Financial                      1                 2              0                0                 0              3
   Total Internal                 13                17             22               4                 3              59
   Internships:
   Budget:                        R346 955          R499 082       R710 458         R142 092          R117 226       R1 815 812

                                                    1.
Table 28: External to Mining Internship/Graduate Development Programme Targets at WMC (FY 2018 to 2022)
  Internships Programmes                        FY             FY            FY 2020        FY            FY 2022         Total (FY
                                                2018           2019                         2021                          2018 to
                                                                                                                          2022)
  Engineering                                   0              2             0              0             0               2
  Environmental                                 0              0             1              0             0               1
  Occupational Hygiene                          0              0             1              0             0               1
  Safety                                        0              0             1              0             0               1
  Human Resources                               1              0             1              0             0               2
  Metallurgy                                    0              0             1              0             0               1
  Financial                                     0              0             2              0             0               2
  Rock Engineering                              0              0             2              0             0               2
  Community                                     1              0             1              0             0               2
  Supply                                        0              1             0              0             0               1
  Total External Internships:                   2              3             10             0             0               15
  Budget:                                      R53 378         R88 073       R322 935       R0            R0              R464 386

2.2.10. Employment Equity Plan

WMC fully subscribes to the principles of the Mining Charter, and strives to achieve more than the minimum requirements. The
Colliery believes that Employment Equity is an integral part of building an effective and representative workforce and to ensuring
equality for all employees. The Colliery has therefore developed and implemented an Employment Equity (EE) Policy to ensure
that HDSA employees, especially women, are developed and targets are met. Particular effort will be directed at identifying HDSAs
with talent, and providing accelerated training and development initiatives to assist their progression, in order to comply with the
provisions of the Employment Equity Act (Act No. 55 of 1998).

South32 will focus on the following strategies to achieve the objectives of EE Legislation:
1. Effective management of Diverse employees;
2. Create an environment that will accommodate all people from designated groups; and
3. Recruit, train and retain people from designated groups.

                                                                                                                                       027
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