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Social equity

Black Economic Empowerment (BEE)

All the group operating subsidiary companies are fully empowered, in line with the South African BEE requirements. Historically disadvantaged persons (HDPs), including women, are represented as owners and as directors of the operating subsidiaries and the holding company and as employees in senior executive roles in the group.

Procurement

Keaton Energy’s procurement policy includes the principle of preferential procurement to ensure that historically disadvantaged individuals and entities benefit from the company’s procurement spend. This is not only by purchasing goods and services from entities with black ownership but also by ensuring that supplier companies similarly comply with the BBBEE codes.

Much effort has gone into ensuring that the group has the administrative capacity to effectively track preferential procurement with a view to providing detailed disclosure in future reporting periods. Independent consultants and verification agencies will also be appointed to review compliance with the group’s procurement philosophy.

Employment equity

Mining not only conributes substantially to the South African economy but is also the single largest employer by number of employees. Keaton Energy accepts that, on account of the limited lifespan of mining operations, the industry needs to develop skills which will equip employees for alternative employment at the end of the life of a mine.

Ongoing skills training and development are consequently an important component in managing the social effects of mine closures. Keaton Energy prepares a detailed social and labour plan as part of the management of all its operations and the ongoing skills development is an integral part of this plan.

Keaton Energy has developed a recruitment policy to ensure fair and equitable recruitment processes, prevents unfair discrimination and is intended to address past injustices. Where practical, and subject to the recruitment policy, Keaton Energy will endeavour to recruit employees from historically disadvantaged communities residing near the operations in question. Keaton Energy will also ensure that contractors employed by the group apply similar practices in their recruitment process.

As at 31 March 2009, the group provided direct employment for 10 people – seven permanent employees and three contractors – apart from some 30 people who were employed indirectly at the Klip Colliery. All employees are at liberty to join any trade union, representative body or other similar institutions. The group also endeavours to engage constructively with employees on matters of mutual concern.

Local communities

The social and labour plan for each awarded mining right includes detailed plans for fostering local economic development in areas of sustainable economic activity outside of mining. When the related mining rights are awarded, the implementation of the various initiatives approved by the DME regarding local economic development will begin. Contributions to be made by the company will ensure direct benefit to the local people with the objective of contributing to poverty alleviation and job creation.