Operating in a safe and responsible way
Bushveld Minerals believes in building and maintaining meaningful partnerships with its multiple stakeholders including the communities in which our operations are based. Our interest is to ensure that the local communities see meaningful, sustainable upliftment from our commercial activities.
Bushveld Minerals is committed to the principles of Corporate Social Responsibility (CSR), empowerment, transparency and sustainable practices. Bushveld Minerals has commenced development of a comprehensive CSR and Environmental Social Governance programme and report to ensure that all key stakeholders contribute to the sustainability plans that the Company plans to adopt.
To this end, Bushveld’s existing CSR programme will be expanded further following the acquisition of Vametco.
Our CSR Objectives are to:
- Create value in the communities in which we operate;
- Maintain safe operations; and
- Minimise social and environmental impact and build, mutually beneficial partnerships with the local communities.
Post the Vametco acquisition, the Company has improved the local communities’ economic exposure to Vametco with opportunities associated with mining operation. The Sustainability Programme is however still being developed and more information on the progress will be available
during the next accounting period.
The Company continues to work closely with the local communities to increase their economic interest in the operation through the Peo Matlafatso Trust (“PMT”). PMT is a community development trust established by Bushveld to ensure that the equity interest is leveraged for the maximum economic benefit of the local communities.
PMT holds an effective 7.75 per cent shareholding in Vametco, in addition to the 3.75 per cent shareholding already held by the Krokodilkraal and Uitvalgrond communities. Bushveld has therefore ensured, through the PMT, the equity exposure of the local communities to Vametco increases by more than three times to 11.5 per cent. In addition, the Bushveld management team continue to work with the local communities to resolve any areas of concern outstanding when the Company took over, and are pleased to report that:
- In keeping with our social and labour plan obligations attached to our new order mining right, Vametco has spent approximately ZAR 4.8 million renovating schools and healthcare clinics and R1.9 million on tar road infrastructure within the local communities;
- During 2017, Vametco paid a sum of R6 million (paid at a rate of ZAR 3 million every 6 months) in line with a deferred royalty payment settlement agreement concluded during July 2016 in respect of outstanding royalty payments under the old mining regime;
- In December 2017, Bushveld Vametco signed an agreement to settle all outstanding surface lease payments to the Uitvalgrond co-owners and paid a total ZAR 19.024 million in relation to a historical surface lease dating back from April 2013 to December 2017. In addition, since December 2017 the Company pays a monthly surface lease payment of ZAR 345,584 per month to the Executive Committee of the Uitvalgrond co-owners for the land on which Vametco is undertaking mining operations;
- We expect to conclude a similar settlement agreement with the Krokodilkraal co-owners association during the year 2018; and
- In total, previously raised provisions in excess of ZAR 25 million have been paid in cash to the Uitvalgrond Community, fulfilling our promise to ensure that the local communities see benefit from the mining operations undertaken on their land.
In addition, to the economic interest through the PMT shareholding in Vametco, the Company is also committed to improving exposure of local entrepreneurs/businesses to procurement opportunities at its operations and to expand employment opportunities for local community members through learnerships, apprenticeships as well as bursary programmes.
Overall, Bushveld Minerals is committed to the principles of CSR, empowerment, transparency and sustainable practices. Bushveld Minerals has commenced development of a comprehensive CSR and Environmental Social Governance programme and report to ensure that all key stakeholders contribute to the sustainability plans that the Company plans to adopt.