Community relations in South Africa

Context

The South African region comprises one mine, South Deep, situated about 45km from Johannesburg in the Rand West City Local Municipality of Gauteng. South Deep operates alongside mines, many of whom have gone through restructure and retrenchment processes in recent years
South Deep embarked on a section 189 process in 2018, and approximately 1,084 employees and 420 contractors were retrenched by the end of the year (Managing our portfolio)
South Deep has re-evaluated its definition of host communities and recognises all communities within the expanded Rand West City Local Municipality as host communities
The local municipality has around 272,000 residents, and struggles with high levels of unemployment, poverty, food insecurity and crime
The mine has delivered on its last Social and Labour Plan (SLP) projects, which ended in 2017, and has started on a new SLP cycle for 2018 – 2022 (Stakeholder relations)
South Deep embarked on a new communication strategy, including launching a Gold Fields South Deep Facebook page to engage with employees and community members
During 2017, South Deep conducted a Westonaria socio-economic baseline study as well as a SROI study of the impact of South Deep’s 15 most critical community investment projects. These influenced the choice of 2018 – 2022 SLP projects

Build relationships and trust

South Deep hosted environmental visits to the mine, facilitated by the Federation for a Sustainable Environment, a local NGO, as well as open days for communities and schools aimed at increasing awareness of environmental rights and the impacts of gold mining
South Deep collaborated with the DMR on the Learners Focus Week, which targeted 300 Grade 9-12 learners from previously disadvantaged communities to address the shortage of skills in the mining industry
The development round table established in 2016 conducted three sessions in 2018, with representatives from the mining companies (Gold Fields and Sibanye-Stillwater), the local and district municipalities and the West Rand community stakeholder forum. A formal Memorandum of Agreement governs the round table
South Deep extensively engages the Department of Mineral Resources on issues relating to community investments, particularly around the Mining Charter and SLP

Manage risk and impact

COMMUNITY SAFETY

South Deep's commitment to safety extends further than the borders of its operation, and the mine therefore works closely with the South African Police Service (SAPS) in Westonaria, Bekkersdal and Randfontein, as well as the Community Policing Forums (CPFs), to improve the safety of its host communities.

In 2018, there were three community incidents which resulted in the deaths of nine community members, most of them in the Thusanang informal settlement on the boundary of the mine. South Deep undertook a community risk assessment with SAPS, a number of government departments and Thusanang stakeholder groups. The risk assessment focused on empowering local stakeholders to identify risks to community safety and formulate mitigation measures.

The community safety project focuses on crime prevention through increasing visible policing, training, information sourcing and improved crime reporting. Our investments in the CPFs, which were done in conjunction with an NGO, Qhubeka, included a donation of bicycles and winter jackets to patrollers who work as volunteers in their communities. The CPFs have increased its crime prevention awareness campaigns, and are reporting an improved impact of their campaigns since the donation. Investment in the safety of our host communities solidifies and fosters relationships between South Deep and community members.

Spend to date: R251,000 (US$18,000), including spending by the South Deep Community Trust

Partnerships with South Deep trusts

South Deep Community Trust
Spend 2018: R3.4m (2017: R3.1m)

Spend to date (2010 – 2018): R21.9m

Key projects during 2018:

Community safety
Enterprise development
SMME development

South Deep Education Trust
Spend 2018: R19.1m (2017: R15.0m)

Spend to date (2010 - 2018): R112.8m

Key projects during 2018

Westonaria TVET College (using funds from the now-disbanded Westonaria Community Trust)
25 scholarships (2017: 71) for high school students
58 bursaries (2017: 37) for tertiary education students
School food garden projects

For more details on the South Deep Trusts see
www.sdtrusts.org.za.

Create and share value

South Deep can make a tremendous impact on the employment rate and local economy through its work in host community employment and host community procurement. The host community definition now includes all individuals who reside in the Rand West City Local Municipality. As a result the host community workforce rose to 55% of our total workforce during 2018, though the overall number of host community employees and contractors came down as a result of the retrenchments during Q4 2018.

At the end of 2018, our host community procurement spend was 29% of total spend, or R517m (US$39m). This exceeded the target of 20% and the minimum spend of R500m a year. Host community jobs from mine employment, procurement and community projects totalled 2,569 at the end of 2018.

For more details of our host community programmes see Value creation and distribution and Stakeholder relations.

FOOD SECURITY

Food security at household levels is a challenge in our host communities. We therefore initiated food security projects by planting vegetable gardens in four high schools in Westonaria. The infrastructure includes a tunnel, irrigation system, water tank and gardening equipment.

Benefit to the community:

The planned food gardens in four high schools in Bekkersdal, Simunye and Poortjie will feed about 5,000 children
South Deep employed a local enterprise for the clean-up of school grounds and preparation of soil for the food gardens
Eight school gardeners were appointed and receive mentoring

Benefit to Gold Fields: Investment in the food security of our host communities will lead to increased school attendance and decreased drop-out rates.

Spend to date: R645,000 (US$45,000), including spending by the South Deep Education Trust

OTHER MATERIAL VALUE CREATION PROJECTS

South Deep entered into a new partnership with Sibanye-Stillwater to close out legacy projects from the former Gold Alliance partnership, and to align social investment projects for optimal benefit to our host communities
South Deep continues to work with the Rand West City Local Municipality, the Gauteng Department of Agriculture and Rural Development, and Sibanye-Stillwater to employ 35 people collectively as business owners of small agriculture enterprises
We continue to support two small enterprises - a bakery and poultry project - until these have developed into sustainable businesses. The bakery has an outlet in Westonaria, supplying the local market, and also has a contract with the mine. The poultry project has successfully sold live chickens and continues to grow its profit margin
South Deep has advanced the planning of the construction of the Simunye Secondary School, which will be completed during 2019 and will benefit more than 1,200 learners who are currently being taught in a prefabricated structure
South Deep, in partnership with the Department of Agriculture and Rural Development, supported 65 households in the Bekkersdal and Westonaria host communities with the implementation of homestead gardens, by supplying seedlings, agricultural equipment, manure, compost and basic agricultural training

Measure actions and impacts

South Africa SED spend

South Africa SED by type 2018

Engagement with communities

2016		2017		2018
137		137		471

Grievances

During 2018, seven grievances were logged, of which four were employment and procurement-related and three were of a social nature. Four grievances have been resolved, one resurfaced from 2017 grievances, one is outstanding and one is ongoing.

Integrated
Annual Report