drdgold sustainable development report 2009

56
Sustainable Development Report 2009

Upload: doankien

Post on 05-Jan-2017

217 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: DRDGOLD sustainable development report 2009

DRD SDR2009_24NovCover 112509 305 PM Page a

Sustainable Development

Report 2009

DRD SDR2009_24NovCover 112509 305 PM Page b

Contents 2 Corporate profile

4 Key aspects of DRDGOLDrsquos business

6 Letter from the CEO

8 Governance

10 Economic performance

14 Safety and health

22 Employment and human rights

28 Community development

34 Environmental performance

46 GRI index of contents

48 Compliance with the Mining Charter

49 Glossary of terms acronyms and abbreviations

51 Feedback form

IBC Contact details and administration

Scope of report This is DRDGOLDrsquos second annual Sustainable Development Report presented in conjunction

with the companyrsquos Annual Report which is available both in a printed format and on the

website at wwwdrdgoldcom

The economic social and environmental aspects of DRDGOLDrsquos operations in the Gauteng and

North West provinces of South Africa are covered in this report The information presented is

for the 2009 financial year from 1 July 2008 to 30 June 2009 although both historical and

forward-looking data are provided for information purposes

This report has been compiled in line with the G3 guidelines of the Global Reporting Initiative

(GRI) and the South African Mining Charter For this report DRDGOLD has again declared a

C level of reporting in accordance with GRIrsquos requirements for a self-declaration in this respect

For further information on sustainability reporting at DRDGOLD please contact

Barry de Blocq

Tel +27 11 219 8700

Email barrydeblocqzadrdgoldcom

DRD SDR2009_25Nov 112509 259 PM Page 1

1 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 259 PM Page 2

DRDGOLD Sustainable Development Report 2009 2

Corporate profile

Carletonville

Blyvoor

ErgoGold

Crown ERPM

Klerksdorp

Potchefstroom

Vereeniging

Johannesburg Benoni

Nigel

Brakpan

0 10

kilometres

20

SOUTH AFRICA

Klerksdorp

Carletonville Pretoria

Johannesburg

Durban

Port Elizabeth

East London

Bloemfontein

Cape Town

GautengNorth West

DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy

largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of

564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD

employed 6 715 people comprising 4 869 employees and 1 846 contractors

DRD SDR2009_25Nov 112509 259 PM Page 3

DRDGOLD Sustainable Development Report 2009 3

The companyrsquos 74-owned operating subsidiary is DRDGOLD

South African Operations (Pty) Limited (DRDGOLD SA) Black

economic empowerment partner Khumo Gold SPV (Pty) Limited

(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA

Empowerment Trust 6

After disposing of its entire interest in Australian gold miner

Emperor Mines Limited in October 2007 DRDGOLDrsquos new

management has aimed at maintaining a healthy mix of assets To

this end the focus has been on

improving the potential of existing South African underground

and retreatment operations and

expanding surface retreatment activity

Although management continues to be bullish about goldrsquos

prospects in the medium to longer term the team has taken careful

stock of current global economic difficulties and the growing

challenges associated with deep-level gold mining In view of this

DRDGOLD has opted to chart a conservative path forward

The operations which are owned and run through DRDGOLD SA

are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East

Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries

(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and

DRDGOLD structure

ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present

56 of production comes from surface retreatment and this is set

to increase

Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its

secondary listing on the Nasdaq Capital Market At year-end the

company had 378 001 303 ordinary shares in issue and a market

capitalisation of R23 billion ($2869 million)

United States 72

South Africa 15

Europe 10

Other countries 3

Geo

grap

hica

l ana

lysi

s of

shar

ehol

ders

ndash 3

0 Ju

ne 2

009

DRDGOLD

KHUMO GOLD DRDSA

Empowerment Trust

DRDGOLD SA

BLYVOOR CROWN

ERGO JV

ERPM

ERGOGOLD

620

100100100

5065 35

74

JSE DRD Nasdaq DROOY

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 2: DRDGOLD sustainable development report 2009

DRD SDR2009_24NovCover 112509 305 PM Page b

Contents 2 Corporate profile

4 Key aspects of DRDGOLDrsquos business

6 Letter from the CEO

8 Governance

10 Economic performance

14 Safety and health

22 Employment and human rights

28 Community development

34 Environmental performance

46 GRI index of contents

48 Compliance with the Mining Charter

49 Glossary of terms acronyms and abbreviations

51 Feedback form

IBC Contact details and administration

Scope of report This is DRDGOLDrsquos second annual Sustainable Development Report presented in conjunction

with the companyrsquos Annual Report which is available both in a printed format and on the

website at wwwdrdgoldcom

The economic social and environmental aspects of DRDGOLDrsquos operations in the Gauteng and

North West provinces of South Africa are covered in this report The information presented is

for the 2009 financial year from 1 July 2008 to 30 June 2009 although both historical and

forward-looking data are provided for information purposes

This report has been compiled in line with the G3 guidelines of the Global Reporting Initiative

(GRI) and the South African Mining Charter For this report DRDGOLD has again declared a

C level of reporting in accordance with GRIrsquos requirements for a self-declaration in this respect

For further information on sustainability reporting at DRDGOLD please contact

Barry de Blocq

Tel +27 11 219 8700

Email barrydeblocqzadrdgoldcom

DRD SDR2009_25Nov 112509 259 PM Page 1

1 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 259 PM Page 2

DRDGOLD Sustainable Development Report 2009 2

Corporate profile

Carletonville

Blyvoor

ErgoGold

Crown ERPM

Klerksdorp

Potchefstroom

Vereeniging

Johannesburg Benoni

Nigel

Brakpan

0 10

kilometres

20

SOUTH AFRICA

Klerksdorp

Carletonville Pretoria

Johannesburg

Durban

Port Elizabeth

East London

Bloemfontein

Cape Town

GautengNorth West

DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy

largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of

564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD

employed 6 715 people comprising 4 869 employees and 1 846 contractors

DRD SDR2009_25Nov 112509 259 PM Page 3

DRDGOLD Sustainable Development Report 2009 3

The companyrsquos 74-owned operating subsidiary is DRDGOLD

South African Operations (Pty) Limited (DRDGOLD SA) Black

economic empowerment partner Khumo Gold SPV (Pty) Limited

(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA

Empowerment Trust 6

After disposing of its entire interest in Australian gold miner

Emperor Mines Limited in October 2007 DRDGOLDrsquos new

management has aimed at maintaining a healthy mix of assets To

this end the focus has been on

improving the potential of existing South African underground

and retreatment operations and

expanding surface retreatment activity

Although management continues to be bullish about goldrsquos

prospects in the medium to longer term the team has taken careful

stock of current global economic difficulties and the growing

challenges associated with deep-level gold mining In view of this

DRDGOLD has opted to chart a conservative path forward

The operations which are owned and run through DRDGOLD SA

are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East

Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries

(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and

DRDGOLD structure

ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present

56 of production comes from surface retreatment and this is set

to increase

Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its

secondary listing on the Nasdaq Capital Market At year-end the

company had 378 001 303 ordinary shares in issue and a market

capitalisation of R23 billion ($2869 million)

United States 72

South Africa 15

Europe 10

Other countries 3

Geo

grap

hica

l ana

lysi

s of

shar

ehol

ders

ndash 3

0 Ju

ne 2

009

DRDGOLD

KHUMO GOLD DRDSA

Empowerment Trust

DRDGOLD SA

BLYVOOR CROWN

ERGO JV

ERPM

ERGOGOLD

620

100100100

5065 35

74

JSE DRD Nasdaq DROOY

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 3: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 259 PM Page 1

1 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 259 PM Page 2

DRDGOLD Sustainable Development Report 2009 2

Corporate profile

Carletonville

Blyvoor

ErgoGold

Crown ERPM

Klerksdorp

Potchefstroom

Vereeniging

Johannesburg Benoni

Nigel

Brakpan

0 10

kilometres

20

SOUTH AFRICA

Klerksdorp

Carletonville Pretoria

Johannesburg

Durban

Port Elizabeth

East London

Bloemfontein

Cape Town

GautengNorth West

DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy

largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of

564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD

employed 6 715 people comprising 4 869 employees and 1 846 contractors

DRD SDR2009_25Nov 112509 259 PM Page 3

DRDGOLD Sustainable Development Report 2009 3

The companyrsquos 74-owned operating subsidiary is DRDGOLD

South African Operations (Pty) Limited (DRDGOLD SA) Black

economic empowerment partner Khumo Gold SPV (Pty) Limited

(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA

Empowerment Trust 6

After disposing of its entire interest in Australian gold miner

Emperor Mines Limited in October 2007 DRDGOLDrsquos new

management has aimed at maintaining a healthy mix of assets To

this end the focus has been on

improving the potential of existing South African underground

and retreatment operations and

expanding surface retreatment activity

Although management continues to be bullish about goldrsquos

prospects in the medium to longer term the team has taken careful

stock of current global economic difficulties and the growing

challenges associated with deep-level gold mining In view of this

DRDGOLD has opted to chart a conservative path forward

The operations which are owned and run through DRDGOLD SA

are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East

Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries

(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and

DRDGOLD structure

ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present

56 of production comes from surface retreatment and this is set

to increase

Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its

secondary listing on the Nasdaq Capital Market At year-end the

company had 378 001 303 ordinary shares in issue and a market

capitalisation of R23 billion ($2869 million)

United States 72

South Africa 15

Europe 10

Other countries 3

Geo

grap

hica

l ana

lysi

s of

shar

ehol

ders

ndash 3

0 Ju

ne 2

009

DRDGOLD

KHUMO GOLD DRDSA

Empowerment Trust

DRDGOLD SA

BLYVOOR CROWN

ERGO JV

ERPM

ERGOGOLD

620

100100100

5065 35

74

JSE DRD Nasdaq DROOY

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 4: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 259 PM Page 2

DRDGOLD Sustainable Development Report 2009 2

Corporate profile

Carletonville

Blyvoor

ErgoGold

Crown ERPM

Klerksdorp

Potchefstroom

Vereeniging

Johannesburg Benoni

Nigel

Brakpan

0 10

kilometres

20

SOUTH AFRICA

Klerksdorp

Carletonville Pretoria

Johannesburg

Durban

Port Elizabeth

East London

Bloemfontein

Cape Town

GautengNorth West

DRDGOLD Limited (DRDGOLD) is a medium-sized unhedged gold producer South Africarsquos fourthshy

largest In 2009 the company produced 247 690 ounces and declared Mineral Resources of

564 million ounces and Ore Reserves of 60 million ounces As at 30 June 2009 DRDGOLD

employed 6 715 people comprising 4 869 employees and 1 846 contractors

DRD SDR2009_25Nov 112509 259 PM Page 3

DRDGOLD Sustainable Development Report 2009 3

The companyrsquos 74-owned operating subsidiary is DRDGOLD

South African Operations (Pty) Limited (DRDGOLD SA) Black

economic empowerment partner Khumo Gold SPV (Pty) Limited

(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA

Empowerment Trust 6

After disposing of its entire interest in Australian gold miner

Emperor Mines Limited in October 2007 DRDGOLDrsquos new

management has aimed at maintaining a healthy mix of assets To

this end the focus has been on

improving the potential of existing South African underground

and retreatment operations and

expanding surface retreatment activity

Although management continues to be bullish about goldrsquos

prospects in the medium to longer term the team has taken careful

stock of current global economic difficulties and the growing

challenges associated with deep-level gold mining In view of this

DRDGOLD has opted to chart a conservative path forward

The operations which are owned and run through DRDGOLD SA

are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East

Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries

(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and

DRDGOLD structure

ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present

56 of production comes from surface retreatment and this is set

to increase

Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its

secondary listing on the Nasdaq Capital Market At year-end the

company had 378 001 303 ordinary shares in issue and a market

capitalisation of R23 billion ($2869 million)

United States 72

South Africa 15

Europe 10

Other countries 3

Geo

grap

hica

l ana

lysi

s of

shar

ehol

ders

ndash 3

0 Ju

ne 2

009

DRDGOLD

KHUMO GOLD DRDSA

Empowerment Trust

DRDGOLD SA

BLYVOOR CROWN

ERGO JV

ERPM

ERGOGOLD

620

100100100

5065 35

74

JSE DRD Nasdaq DROOY

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 5: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 259 PM Page 3

DRDGOLD Sustainable Development Report 2009 3

The companyrsquos 74-owned operating subsidiary is DRDGOLD

South African Operations (Pty) Limited (DRDGOLD SA) Black

economic empowerment partner Khumo Gold SPV (Pty) Limited

(Khumo Gold) holds 20 of DRDGOLD SA and the DRDSA

Empowerment Trust 6

After disposing of its entire interest in Australian gold miner

Emperor Mines Limited in October 2007 DRDGOLDrsquos new

management has aimed at maintaining a healthy mix of assets To

this end the focus has been on

improving the potential of existing South African underground

and retreatment operations and

expanding surface retreatment activity

Although management continues to be bullish about goldrsquos

prospects in the medium to longer term the team has taken careful

stock of current global economic difficulties and the growing

challenges associated with deep-level gold mining In view of this

DRDGOLD has opted to chart a conservative path forward

The operations which are owned and run through DRDGOLD SA

are Blyvooruitzicht Gold Mining Company Limited (Blyvoor) East

Rand Proprietary Mines Limited (ERPM) Crown Gold Recoveries

(Pty) Limited (Crown) Ergo Mining (Pty) Limited (Ergo) and

DRDGOLD structure

ErgoGold (formerly Elsburg Gold Mining Joint Venture) At present

56 of production comes from surface retreatment and this is set

to increase

Stock exchange information DRDGOLD has its primary listing on the JSE Limited and its

secondary listing on the Nasdaq Capital Market At year-end the

company had 378 001 303 ordinary shares in issue and a market

capitalisation of R23 billion ($2869 million)

United States 72

South Africa 15

Europe 10

Other countries 3

Geo

grap

hica

l ana

lysi

s of

shar

ehol

ders

ndash 3

0 Ju

ne 2

009

DRDGOLD

KHUMO GOLD DRDSA

Empowerment Trust

DRDGOLD SA

BLYVOOR CROWN

ERGO JV

ERPM

ERGOGOLD

620

100100100

5065 35

74

JSE DRD Nasdaq DROOY

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 6: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 259 PM Page 4

DRDGOLD Sustainable Development Report 2009 4

Key aspects of DRDGOLDrsquos business and implications for sustainable development

Exploration DRDGOLDrsquos exploration activities are focused on the extension of existing orebodies and the identification of new orebodies both at existing and undeveloped sites Once an orebody has been discovered exploration is expanded and intensified in order to enable clearer definition of the orebody and the portions with the potential to be mined

Sustainability issues

bull Effect on biodiversity should the exploration occur in restricted areas

bull Consultation and engagement with communities

Surface retreatment DRDGOLDrsquos Crown ERPM and ErgoGold operations retreat tailings (sand and slime) from non-operational sites Retreatment also forms part of Blyvoorrsquos operations

In general surface material has a history of depositions occurring at different stages This means that there are grade variations associated with improvements in plant recovery over the period of time in question

Sand is reclaimed using mechanical front-end loaders and re-pulped with water Slime is reclaimed using high pressure water monitoring guns

Mining DRDGOLDrsquos Blyvoor mine and ERPM (until the halting of underground operations) access the orebody through underground mining The shaft system comprises vertical and sub-incline shafts which are used for the conveyance of personnel pumping and hoisting of mined ore and waste

Sustainability issues

bull Safety and health of employees and contractors

bull Fair employment practices training and development

bull Careful use of resources ndash water energy and other natural resources ndash and commitment to recycling

bull Preventing pollution particularly with respect to water and dust

bull Land disturbance

Transport of material Underground ore is transported to the plant via conveyer belts and trucks

With regard to retreated material the re-pulped sand and slime is pumped to the plant

Production 2009 Surface retreatment 56 Surfaceunderground Underground splitoperations 44

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 7: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 259 PM Page 5

DRDGOLD Sustainable Development Report 2009 5

Processing Through a combination of multi-stage crushing and open-circuit primary and closed-circuit secondary milling ore from underground is broken up into small particles (comminution) so that the mineral is exposed The recovery of gold is the next stage

The gold extraction technique used is known as the carbon-in-pulp (CIP) process which involves hydro cyclones thickening and cyanide leaching Granular activated carbon particles which are much larger than the ground ore particles are added to the cyanidation pulp when the gold is in solution The activated carbon and pulp are agitated together to enable the gold to become adsorbed onto the activated carbon The loaded activated carbon is mechanically screened to separate it from the barren ore pulp

With the carbon-in-leach (CIL) process which is used at Crownrsquos three plants and ErgoGoldrsquos plant gold ore carbon granules and cyanide are mixed together to form a slurry The cyanide dissolves the gold content and the gold is adsorbed on the carbon the carbon is subsequently separated from the slurry for further gold removal

After the CIP or CIL process the gold is recovered through electro-winning It is then smelted into doreacute bars

Sustainability issues

bull Lessening emissions preventing pollution bull Careful use of resources ndash water energy and other natural resources ndash and commitment

to recycling bull Managing and handling cyanide bull Lightening carbon footprint

Refining The gold bars produced consist of approximately 85 gold and 7-8 silver with the balance comprising copper and other common elements The gold bars are transported to Rand Refinery Limited in Germiston Gauteng for assaying and final refining The gold is purified to 999 thus meeting the standards of the London Bullion Market Association and cast into troy ounce bars of varying weights On the same day as the delivery takes place Rand Refinery sells the gold on DRDGOLDrsquos behalf at the London afternoon fixed dollar price

Sustainability issues

bull Reducing emissions preventing pollution

Rehabilitation When mining is over operations are closed and rehabilitated which means that the land is ultimately returned to a productive state All of DRDGOLDrsquos continuing operations have updated closure plans and closure liabilities associated with environmental issues for each operation are reassessed on an annual basis

Sustainability issues

bull Attaining closure with required regulatory approvals bull Consultation and engagement with communities bull Monitoring sites after closure

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 8: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 6

DRDGOLD Sustainable Development Report 2009 6

Letter from the CEO

Dear stakeholder At DRDGOLD we are deeply conscious that our activities affect

myriad stakeholders employees unions communities investors

government and regulators non-governmental organisations

suppliers contractors and members of the general public We

also acknowledge that as a South African company we need to play

a role in transforming the economy and society to redress the

imbalances of the past This ranges from developing employees

from the ranks of the previously disadvantaged to supporting

community projects that will create sustainable livelihoods

This was a challenging year for the mining industry in South Africa

in general and at DRDGOLD we experienced some serious

operational difficulties Safety and risk considerations meant that

we had no choice but to stop underground mining at ERPM while

the loss of high-grade panels at Blyvoor combined with the

strengthening of the rand and an increase in the cost of electricity

of 33 resulted in our starting the process of right-sizing Blyvoor

shortly after year-end These decisions were not taken either

lightly or easily We know only too acutely that each of our

employees supports a number of dependants and that job losses

have a knock-on effect in the surrounding communities

However had we not acted as we did we would have put lives in

danger and the companyrsquos future in jeopardy with potentially far

greater negative results

Certainly it is at times like these that sustainability assumes even

greater significance It demonstrates the value of people gaining

the skills to ensure lifelong employment and the importance of the

development and diversification of the local economy so that

communities can continue and prosper when mining activities

decrease or stop completely In this respect we are proud of the

Ekurhuleni Business Development Academy (EBDA) which we have

established in partnership with our Ergo Mining joint venture partner Mintails We are confident that this educational facility will set many an individual on the road to successful entrepreneurship and play a major part in starting small and medium enterprises throughout Ekurhuleni More details about EBDA can be found in the Community section of this report

Safety issues Of all the aspects of sustainability that we cover in this report

safety is the most important It is with deep regret that we must

advise that five people died in work-related incidents at DRDGOLD

operations during the 2009 financial year We extend our

condolences to the families friends and colleagues of those who

lost their lives Aron Maqoma (16 August 2008) Velelo Mshuwywa

(4 September 2008) and Annanias Timbe (8 October 2008) at

Blyvoor and Pieter Jonker and Fernando Vate both on

19 September 2008 at ERPM

Of some encouragement is the fact that no fatalities occurred at any of our operations during the second half of the year and that apart from the Fatal Injury Frequency Rate which rose from 0128 in the previous year to 0178 there were improvements recorded in all the other safety indicatorsThe Reportable Injury Frequency Rate went down from 361 to 262 the Lost Time Injury Frequency Rate from 867 to 760 and the Dressing Station Injury Frequency Rate from 3959 to 2455

There is no complacency on our part however and we will continue with operation- and issues-specific safety campaigns Fundamental to safety is to bring about a change in the sort of behaviour that places employees at risk and to encourage safe work practices at all times For this reason we launched a behaviour-based safety intervention during 2009 No 6 Shaft is the pilot site for this process which will then be rolled out to the rest of Blyvoor

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 9: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 7

DRDGOLD Sustainable Development Report 2009 7

followed by the other DRDGOLD operations We trust that this will

lead to further improvements in our safety performance in the

2010 financial year

Progress with transformation We are pleased to have made further progress in terms of

meeting the requirements of the Mining Charter At Blyvoor the

percentage of historically disadvantaged South Africans (HDSAs)

in management rose from 18 to 25 Crown reached 33 in

2009 At 93 Crown is close to meeting the Mining Charterrsquos

target of women making up 10 of the workforce while at

Blyvoor women comprise 75 of the employee complement up

from 65 last year

We are committed to nurturing talent within the company through

learnerships internships and tertiary education programmes

During 2009 we ran a very successful group-wide pilot

Junior Leadership Programme which combined theoretical with

practical study

Environmental challenges Acid mine drainage (AMD) in the Witwatersrand Basin poses an

environmental threat and it is a challenge that DRDGOLD is facing

together with several other mining companies Cost-effective

sustainable solutions need to be found Together with those

players DRDGOLD participates in two Section 21 companies the

Western Basin Environmental Corporation and the Central Basin

Environmental Corporation We are hopeful that this consultative

approach will find long-term workable solutions These companies

have commissioned Western Utilities Corporation a wholly owned

subsidiary of AIM-listed Watermark Global plc to develop a holistic

integrated plan Progress is being made towards the establishment

of large-scale water treatment plants with the right technology to

treat AMD to produce both drinking and industrial water More

detailed information on this can be found in the Environment

section of this report

Towards sustainability This is DRDGOLDrsquos second Sustainability Report which we have

aligned with the requirements of the Global Reporting Initiativersquos

G3 guidelines We have declared a C level of reporting for the

2009 financial year

We acknowledge that we still have a long way to go before

we meet many of the GRI requirementsWhat is important however

is that we have set these goals for ourselves and are moving in

the right direction The boardrsquos establishment of the Transformation

and Sustainable Development Committee towards the end of the

last financial year is further evidence of our commitment With an

independent non-executive chairman at its helm this committee is

charged with ensuring that DRDGOLD conducts its business in a

manner conducive to the attainment of internationally acceptable

sustainability standards and with promoting transformation

There is a feedback form at the back of this report and we would

appreciate hearing from our stakeholders Let us know what you

think about this report and where we can improve

Nieumll Pretorius

Chief Executive Officer

16 September 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 10: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 8

DRDGOLD Sustainable Development Report 2009 8

Governance DRDGOLDrsquos Board of Directors ensures that the principles of good corporate governance as recognised and practised throughout the world are upheld and implemented All the directors are fully aware that they are the custodians of corporate governance in the organisation and this is reflected in the way they execute their fiduciary duties which is with diligence integrity and honour The intention is that this filters down to all employeesThe upholding of such ideals puts the company in a position to improve organisational performance and deliver value to shareholders and stakeholders alike DRDGOLD has set up systems and controls to promote discipline transparency accountability responsibility and fairness for the protection of the interests of shareholders employees and the communities in which the company operates

A detailed account of corporate governance matters may be found in the 2009 Annual Report from page 26 to page 34

Compliance DRDGOLD has formulated policies and implemented practices which are aimed at achieving compliance with the King Report on Corporate Governance for South Africa (the King II Report) in as practical a manner as possible The third King Report was published on 1 September 2009 and will become effective from March 2010 Due cognisance has been taken of this report ndash in particular the role of the Audit Committee and the integration of sustainability reporting with financial reporting

As DRDGOLD is listed on the JSE Limited (JSE) the company is complaint with the JSE Listings Requirements Its secondary listing is on the Nasdaq Capital Market and the company is registered with the Securities and Exchange Commission in the United States of America Accordingly DRDGOLD is subject to compliance with the Sarbanes-Oxley Act of 2002 and to certain Nasdaq Rules

Board and its committees The board has an independent non-executive chairman Geoffrey Campbell and four of its six directors (667) are non-executive three of whom (50 of the board) are independent One of the board members is an historically disadvantaged South African (HDSA)

The board is committed to achieving the triple bottom line espoused in the King II Report and the black economic empowerment (BEE) targets set by South African legislation In line with these objectives it established the Transformation and Sustainable Development Committee (Transco) The terms of reference were approved by the board in August 2008

The objectives of this committee are to promote transformation within the company and economic empowerment of previously disadvantaged communities particularly within the areas where the company conducts business strive towards achieving the goal of equality as required by the South African constitution and other legislation and within the context of the demographics of the country at all levels in the company and its subsidiaries and

conduct business in a manner that is conducive to the attainment of internationally acceptable environmental and sustainability standards

The chairman of Transco is Edmund Jeneker an independent nonshyexecutive director This committee which has three members met twice during 2009

Sustainability issues also fall within the ambit of the Audit Risk Remuneration and Nominations committees The Audit Committee is composed solely of non-executive directors all of whom are independent The six-member Risk Committee includes three independent non-executive directors and one non-executive director and met four times during the year under review Four non-executive directors comprise the Remuneration Committee three of whom are independent This committee met five times during the year Two independent non-executive directors make up the Nominations Committee

Code of ethics The following highlights aspects of the groups Code of Ethics a complete copy of which will be made available on request or can be accessed on the companys website at wwwdrdgoldcom Any contravention of this code is regarded as a serious matter

DRDGOLD acknowledges that all employees have a right to work in a safe and healthy environment All employees are entitled to fair employment practices and have a right to a working environment free from discrimination and harassment

The group recognises a very real responsibility to contribute to the local communities and the group encourages employees to participate in among others religious charitable educational and civic activities provided that such participation does not make undue demands on their work time or create a conflict of interest

The group expects employees to perform their duties in accordance with the best interests of the group and not to use their position or knowledge gained through their employment with the group for their private or personal advantage

Employees may not take up outside employment or hold outside directorships without prior approval of management Directors who hold outside directorships must disclose same at the quarterly board meetings

Employees should ensure that they are independent of any business organisation having a contractual relationship with the group or providing goods or services to the group

An employee should neither accept nor solicit any non-minor gifts hospitalities or other favours from suppliers of goods or services

While directors and employees are encouraged to invest in and own shares in the group such investment decisions must not contravene the conflict of interest provisions of this code any applicable legislation or any policies and procedures established by the various operating areas of the group Most importantly they must not be based on material non-public information acquired by reason of an employees connection with the group

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 11: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 9

DRDGOLD Sustainable Development Report 2009 9

Directors and employees are expected to treat all information

pertaining to the group which is not in the public domain in the

strictest confidence and may not divulge such information to any

third party without permission even after the termination of their

services with the group

The company has an anonymous whistle-blower hotline to deal

with complaints from within or outside the company and the

Group Risk Manager provides the Audit Committee with a regular

report on the whistle-blowing programme

Risk management Responsibility for risk management at DRDGOLD starts with the

Board of Directors The overall objective of the Risk Committee is to

assist the board in the discharge of its duties relating to risk

management and control responsibilities assurance issues health

safety and environmental compliance and the monitoring and

reporting of all these matters Responsibility for the quality

integrity and reliability of the groups risk management rests with

the Risk Committee which facilitates communication between the

board the Audit Committee internal auditors and other parties

engaged in risk management activities

The Risk Committee meets every quarter and reports back to the

board Additional ad hoc meetings may be arranged as and when

required Certain members of executive management are invited to

attend Risk Committee meetings on a regular basis including the

Group Risk Manager the Group Financial Manager and the Group

Legal Counsel

The Risk Committee ensures that

an effective risk management programme is implemented and

maintained

risk management awareness is promoted among all employees

risk programmes (financinginsurance) adequately protect the

company against catastrophic risks

regular risk assessments are conducted

the total cost of risk in the long term is reduced

the protection of DRDGOLDs assets is promoted throughout

the group

the health safety and well-being of all stakeholders is

improved and

DRDGOLDs activities are carried out in such a way that the

safety and health of employees is ensured

In addition to strategic and corporate risks the committee also

reviews the effectiveness of the operational risk programmes A

heat map which brings together all the risks that the group faces

is tabled at every meeting

It is widely recognised that integrating risk management

philosophy and practice into the culture of the organisation is an

ongoing process In order to be effective it must be a continuous

dynamic and developing process that addresses risk across the

spectrum ndash from strategic to operational risk Thus a variety of

surveys benchmarks reviews and activities are conducted

throughout the year and these are the building blocks of the risk

management programme

This detailed risk management programme has been in place at

DRDGOLD for a number of years and its effectiveness has ensured

that it forms an integral part of the management of the company

The risk register contains all the relevant information from across

the group and this is updated on a quarterly basis

The process of conducting hazard identification and risk assessment

for the operations is based on

baseline assessment ndash covering the whole operation in a

systematic way in respect of all risks

issues-based assessment ndash specific assessments carried out

prior to the start of an activity and

continuous assessment ndash health safety and environmental

assessments form part of daily activities

DRDGOLD staff members involved in operational risk management

use risk management information and detailed analyses to assist

in decision-making DRDGOLD therefore employs the latest

technology and information wherever required

The system to manage risk involves all significant business and

operational risks which could undermine the achievement of

business objectives and the preservation of shareholder value

The significant risks facing DRDGOLD including those at an

operational level have been identified People have been assigned

to each risk and the results of their work to improve controls are

reviewed by senior management through regular risk meetings

In addition to the above initiatives DRDGOLD also employs thirdshy

party consultants to benchmark its operations against other mining

operations throughout South Africa and more than 300 different

mining companies worldwide

Communication with stakeholders DRDGOLD gives substance to its commitment to transparency

through the implementation of an integrated and sustained

programme of communication directed at its various stakeholders

These include employees unions communities government and

regulators non-governmental organisations suppliers contractors

customers and members of the public

Effective two-way communication with the communities within

which it operates is an area of growing importance to the group

While increasingly much of this communication is required by

regulation and statute and takes the form of formal consultation

with interested and affected parties operational management has

come to recognise the value of community understanding of and

support for managementrsquos actions and of the role that effective

communication plays in securing these

Significant legal issues or fines DRDGOLD did not incur any fines during the year under review in

respect of non-compliance with laws or regulations The company

is engaged in some legal actions the details of which appear on

pages 113 to 114 of the 2009 Annual Report

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 12: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 10

Economic performance

As South Africarsquos fourth-largest gold producer DRDGOLD affects the lives of thousands of people

employees and their dependants investors suppliers and members of the communities

surrounding the companyrsquos operations

The companyrsquos strategy in the short and medium term is to enhance shareholder value by

reducing risk

controlling costs

managing margins and

taking a disciplined approach to growth

One of the most significant operational developments for DRDGOLD in 2009 was the progress

made in shifting the balance of its production towards lower-risk and less costly surface

retreatment operations

During the year under review the company rejoined the Chamber of Mines of South Africa as an

advocacy member The chamber is a voluntary membership private sector employer organisation

and is the principal advocate of major policy positions endorsed by the mining employers and

represents these to various organs of South African national and provincial governments and to

other relevant policy-making and opinion-forming entities both within the country and abroad

The chamber also works closely with the various employee organisations in formulating these

positions where appropriate

DRDGOLD Sustainable Development Report 2009 10

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 13: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 11

DRDGOLD Sustainable Development Report 2009 11

Operational and financial performance The average gold price received for the financial year was $873oz

compared with $821oz the previous year illustrating that the

precious metal has retained its status as a store of value during

times of financial turmoil DRDGOLDrsquos performance in the first

three quarters was excellent ndash the fourth quarter demonstrated the

companyrsquos exposure when the rand strengthens against the dollar

rand gold receipts fall and operating costs rise While the average

rand gold price received in the third quarter was R292 369kg it fell

to R244 927kg in the fourth quarter

For an in-depth look at DRDGOLDrsquos operational and financial

performance during the financial year under review please refer to

the Annual Report 2009 at wwwdrdgoldcom The key features of

the year are set out below

Gold production decreased by 23 to 247 690 ounces

(2008 321 432 ounces) The main reasons for this decline

were the suspension of underground mining at ERPM in the

second quarter and the downward adjustment to throughput

at Crown as part of the decommissioning of the Crown Tailings

Deposition Facility Also contributing were several operational

challenges at Blyvoor in particular the reduction in production

days following two fatalities in the first half of the year as well

as the loss ndash through seismicity ndash of high-grade panels during

the fourth quarter at No 5 Shaft

Total operating costs increased by 40 to R219 024kg

(2008 R162 794kg)

Operating profit at R2234 million was down by 27

Net profit declined by 91 to R1107 million the R1 2251 million

recorded in 2008 reflected the sale of the Australasian assets

Net asset value per share rose 21 to 419 South African cents

(2008 347 SA cents)

Dividend payments to shareholders amounted to R377 million

(10 SA cents per share)

Market capitalisation was R23 billion ($2869 million)

compared with R24 billion ($2907 million) in the previous year

Economic value added DRDGOLD continued to add significant value during the year The

value-added statement for 2009 appears on page 12 The key

features are discussed below

In 2009 R673 million was paid to employees in the form of

salaries and wages as well as contributions to retirement and

health care funds representing 68 of the total value

distributed during the year (2008 R658 million 69)

Although this cannot be quantified employees are likely to

have spent a sizeable portion of their disposable income in the

region in which they work

Taxes of R46 million were paid to local and national

government ndash the same amount paid in 2008 No significant

financial benefits were received from government

The company spent R13 billion with the suppliers of capital and

consumer goods and services during the 2009 financial year

(2008 R13 billion)

350 000 1000

300 000 800

250 000

600200 000

150 000

100 000

50 000

0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Average Rkg received Average $oz received

300

250

200

150

100

50

0 2005 2006 2007 2008 2009

800

700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009

250

200

150

100

50

0 2005 2006 2007 2008 2009

400

200

Aver

age

oper

atin

g co

sts

Gol

d pr

oduc

tion

(00

0oz)

Aver

age

gold

pric

e re

ceiv

edAv

erag

e R

kg a

nd $

oz

(R

rsquo000

kg)

200

5-09

20

05-0

9 (R

rsquo000

kg)

200

5-09

pr

ice

rece

ived

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 14: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 12

DRDGOLD Sustainable Development Report 2009 12

Economic performance

Valu

e di

strib

uted

A

nnua

l cap

ital

exp

endi

ture

in 2

009

()

(Rm

) 20

05-0

9

400

350

300

250

200

150

100

50

0

Shareholders DRDGOLD has its primary listing on the JSE Limited in

Johannesburg South Africa and its secondary listing on the Nasdaq

Capital Market in the United States By far the largest percentage

of shareholders 72 are in the United States followed by

South Africa at 15 and Europe at 10 At 30 June 2009

institutions and bodies corporate held 936 of the issued shares

DRDGOLDrsquos shares are very liquid with about 80 being held in

free float Around 70 of trading occurs on Nasdaq Volumes

traded and share prices during the financial year under review are

2005 2006 2007 2008 2009 illustrated in the accompanying graphs Shareholders were paid

R377 million in dividends during the year

Capital expenditure Capital expenditure amounted to R3467 million (2008 R3714 million)

The breakdown is as follows Employees 68

R1571 million on ErgoGold and R170 million on Ergo Mining Reinvestment in the group 23 R975 million on Blyvoor Government 5 R431 million on Crown and Shareholders R317 million on ERPM (dividends) 4

Most of the capital expenditure incurred related to projects to

increase production For example at ErgoGold the Elsburg

reclamation site was completed while at Blyvoor opening up and

development and the Way Ahead Project were the main components

Value added statement for the year ended 30 June 2009

Value added is defined as the value created by activities of a business and its employees and in the case of DRDGOLD is determined as the sale of precious metals less the cost of materials and services The value added statement reports on the calculation of value added and its application among the stakeholders in the group The statement shows the total value added and how it was distributed taking into account the amounts retained and reinvested in the group for the replacement of assets and development of operations

2009 2008

Rm Rm

VALUE ADDED

Sale of precious metals 1 911 1 933

Less cost of materials and services (1 133) (1 080)

Value added by operations 778 79 853 90

Income from investments 206 21 95 10

Total value added 984 100 948 100

VALUE DISTRIBUTED

Employees

Salaries wages and other benefits 673 68 658 69

Government

Current taxation 46 5 46 5

Providers of capital

Dividends to shareholders 38 4 ndash ndash

Interest on borrowings 4 0 36 4

Total value distributed 761 77 740 78

Reinvested in the group 223 23 208 22

Depreciation 99 70

Reinvested in the group 124 138

Total value distributed 984 100 948 100

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 15: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 13

Total 1 284 948 360 771 788 755

DRDGOLD Sustainable Development Report 2009 13

JSE closing prices and volumes traded Nasdaq closing prices and volumes traded

SA cents US dollars

BEE component of total procurement spend 2009 Operation Total purchases BEE component BEE spend as

R of total of total

545

685

666

602

600

5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 000

900

800

700

600

500

400

300

200

100

0

1 Jul 08 1 Jun 09

Volumes traded JSE closing prices

Black economic empowerment Black economic empowerment (BEE) in South Africa covers three

areas equity ownership affirmative procurement and employment

equity The last-mentioned is dealt with in the Employment section

of this report

With regard to the first aspect DRDGOLD is in compliance with the

BEE equity target of 26 set by the South African Broad-based

Socio-economic Empowerment Charter (the Mining Charter) for

2014 It achieved this goal in the 2007 financial year

The companyrsquos BEE partner Khumo Gold acquired a 15 interest

in DRDGOLD SA in 2005 At that time Khumo Gold was granted an

option exercisable over the next three years to acquire a further

11 interest in DRDGOLD SA which included a 6 stake to be

placed in a new proposed employee trust

In 2006 Khumo Gold acquired 60 000 ordinary shares in

DRDGOLD SA which increased its stake to 20 In addition

as promoter for an employee trust it exercised its option to

acquire a further 60 000 ordinary shares This trust the DRDSA

Empowerment Trust has a 6 holding in DRDGOLD SA and it

benefits a broad group of historically disadvantaged employees

Khumo Gold and the DRDSA Empowerment Trust also own

preference shares in Blyvoor Crown and ERPM which entitle them

to receive a dividend of R026 for every R074 paid by these

10

8

6

4

2

0

1 Jul 08 1 Jun 09

600 000

500 000

400 000

300 000

200 000

100 000

0

Volumes traded Nasdaq closing prices

12 800 000

700 000

companies towards capital and interest on their outstanding intershy

group loans as at 30 November 2005 During the year a preference

dividend of R318 million was paid to Khumo Gold and the trust

Transforming the procurement base DRDGOLDrsquos procurement policy gives BEE companies preferred

supplier status This means that these companies are on

DRDGOLDrsquos vendor list and provided they are commercially

competitive they are given preference when contracts are awarded

In total DRDGOLDrsquos operations spent R13 billion on procurement

in 2009 of which R7718 million went to BEE companies The

statistics provided include expenditure with state power utility

Eskom and the Rand Water Board

Beneficiation DRDGOLD has a 4 stake in Rand Refinery Limited which refines

and sells all of its gold Gold is refined to a purity of approximately

85 at the DRDGOLD operations At Rand Refinery the gold is

purified to 999 and cast into troy ounce bars On the same day

as the gold is received Rand Refinery sells the gold on DRDGOLDrsquos

behalf at the London afternoon fixed price

ERPM

679 638 872

145 202 882

388 274 655

71 831 951

99 474 687

Blyvoor 370 612 525

Crown 258 458 378

ErgoGold 43 243 165

It should be noted that the data capturing system used by DRDGOLD does not make provision for breaking down procurement expenditure into the

categories of capital goods consumables and services

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 16: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 14

Safety and health

DRDGOLD Sustainable Development Report 2009 14

DRDGOLD is a signatory to the 10-year health and safety targets set at the 2003 summit of the

Mine Health and Safety Council (MHSC) The MHSC is a tripartite body made up of government

unions and employees

Each operation has a safety department which reports to the general manager of the mine and to

the general manager responsible for projects across the group who submits a quarterly report on

safety and health to the Board of Directors

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 17: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 15

DRDGOLD Sustainable Development Report 2009 15

Details of those who died in work-related accidents at DRDGOLD operations in 2009

Occupation and

Name and age Date Operation length of service Home Family

Aron Maqoma (45) 16 August 2008 Blyvoor accident

occurred at 35-29

S2 cross cut

Rock drill operator

26 years

Bizana Eastern Cape

Province South Africa

Aron leaves his

wife Mantswele

and seven children

Velelo Mshuwywa (36) 4 September 2008 Blyvoor 35-32 raise Rock drill operator

six years

Lusikisiki Eastern

Cape Province

South Africa

Velelo leaves his

wife Ncediswa

and six children

Pieter Jonker (49) 19 September 2008 ERPM South West

Vertical Shaft

Timberman 12 years Boksburg Gauteng

Province South Africa

Pieter leaves his

wife Maria and

three children

Fernando Vate (57) 19 September 2008 ERPM South West

Vertical Shaft

Shaft assistant

six years

Canicado

Mozambique

Fernando leaves his

wives Albertina and

Theresa and 13

children

Annanias Timbe (37) 8 October 2008 Blyvoor No 6 Shaft Box operator close

to three years

Massinga

Mozambique

Annanias leaves his

wife Raquel and

three children

There are health and safety agreements with unions in place at all

the operations About 84 of the workforce is unionised Unions

and employees who are not unionised are involved in monitoring

and assessing health and safety programmes at operational level

A Health and Safety Committee which comprises management

and employees is in place at each operation Mine management

holds a monthly forum meeting with the unions at which members

of the Health and Safety Committee are present Health and safety

issues are among the matters discussed at these sessions

At Blyvoor there are four full-time health and safety representatives

in each working area ndash No 4 Shaft No 5 Shaft No 6 Shaft and the

metallurgical plant This mine has a steering committee which

evaluates occupational health and safety programmes in the

workplace A total of 25 members of the National Union of

Mineworkers (062 of the workforce) serve on these committees

Blyvoor also has a Lifestyle Committee which concentrates on

health issues

There is one full-time safety representative at ERPM and one at

Crown who visits the plants on a rotational basis

Safety DRDGOLD regrets to report that five employees died at work

during the year three at Blyvoor and two at ERPM Two of the fatal

accidents at Blyvoor were caused by seismic events the third

occurred from injuries sustained when the employee fell into the

measuring flask of a loading box At ERPM two employees were

asphyxiated in a shaft conveyance while on their way to conduct

routine water level measurements underground The names and

details of those who lost their lives appear in the table above

The board and management of DRDGOLD extend their sincerest

condolences to the families friends and colleagues of those who died

Regrettably the number of fatalities rose by one in 2009

(2008 four) and consequently there was a deterioration in the

Fatal Injury Frequency Rate (FIFR) from 0128 to 0178 per million

hours worked The company is pleased to report however that

there were no fatalities in the last eight months of the year

All the other safety indicators ndash measured per million hours worked

ndash at DRDGOLD improved the Lost Time Injury Frequency Rate

(LTIFR) decreased from 867 to 760 the Reportable Injury

Frequency Rate (RIFR) from 361 to 262 and the Dressing Station

Injury Frequency Rate (DSIFR) from 3959 to 2455 The rates for

ERPM indicate an improvement in all these categories but this has

to be put into context Underground mining was suspended in

October 2008 The minersquos full labour complement however was

employed and recorded for accident purposes from the 6 October

2008 until 28 February 2009 Surface operations continue at ERPM

More accidents were caused by falls of ground (FOG) than any other

factor with gravity-related and seismic FOG accounting for just over

21 of all accidents These were the major safety risks at Blyvoor

followed by fire and trucks and tramming incidents Until underground

mining was suspended at ERPM falls of ground accounted for 27 of

all accidents As Crown is a surface operation the main safety issues

at this operation were very different and related to conveyor belts the

lifting of equipment reagent handling and machinery

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 18: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 16

DRDGOLD Sustainable Development Report 2009 16

Safety and health (continued)

The accompanying table indicates the agencies 040

or causes of all accidents for the DRDGOLD group as a whole during 2009

035

030

DSI

FR

LTIF

R RI

FR

FIFR

pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d pe

r m

illio

n ho

urs

wor

ked

per

mill

ion

hour

s w

orke

d

Agency Total 025

020

015

010

005

000

Blyvoor

50

45

40

35

30

25

20

15

10

05

00

Blyvoor

12

10

9

8

7

6

5

4

3

2

1

Blyvoor

70

60

50

40

30

20

10

0

Blyvoor

2008

Crown ERPM Group

Foreign body 30 Caught between 29 Strands and wires 28 Rolling stock 27 Heat 24 Winch ropes 24 Falling material 19 Sharp objects 16 Shaft conveyance 13 Rock splinter 11 Cutting torch 8 Winch 8

2008

2008

Crown ERPM

Crown ERPM

2008

Crown ERPM

2009 Rolling rock 35

2009

2009

Group Total 838

2009

Group Falling from elevate 6 Chemicals 5 Mud rush 5 Hand tools 4 Machinery 4 Winches and rigging 4 Motor vehicle accidents 3 Toxic fumes 2 Vehicles 2 Conveyors 1 Caught by 1 Dust and mud 1 Flash arc 1 Over stressed 1 Structure 1

Group

Fall of ground 122 Fire 88 Slip and fall 83 Materials handling 64 Bumped against 59 Struck by 56 Seismic event 39

Rolling material 7 Lifting equipment 7

FOG ndash gravity 19

Fire 15

Slip and fall 14

Materials handling 11

Bumped against 10

Struck by 9

FOG ndash seismic 6

Rolling rock 5

Foreign body 5

Caught between 5

Top

ten

agen

cies

of a

ccid

ents

ndash 2

009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 19: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 17

DRDGOLD Sustainable Development Report 2009 17

During the year Blyvoor lost 2 469 shifts (2008 2 220) through

accidents Crown 321 shifts (2008 253) and ERPM 858 shifts

(2008 2 610) As in the case of the safety indicators discussed

above the cessation of underground mining activities at ERPM

explains the big discrepancy between the figure for this year and

that for the previous year

Section 54 of South Africarsquos Mine Health and Safety Act makes

provision for the Mine Safety Inspectorate to close part or

all of a mine should it believe that any particular occurrence

or condition may endanger the health and safety of any individual

on the mine DRDGOLD received three such instructions during

the year under review Four-day stoppages were imposed at

Blyvoor after the seismic events that led to fatalities on

16 August and 4 September 2008 The Section 54 instruction on

19 September 2008 at ERPM which followed the death by

asphyxiation of two employees has not been lifted to date

As mentioned above no underground mining takes place at this

operation There were no Section 54 orders received for Crown

Addressing safety issues A behaviour-based safety intervention which was signed off by

management and the unions was launched at Blyvoor during 2009

This initiative focuses on reducing behaviour that places employees

at risk and focuses on encouraging safe behaviour No 6 Shaft will

be used as a pilot site for this process which then be rolled out to

the rest of Blyvoor and the other DRDGOLD operations

The lsquoBefore you Workrsquo campaign which focuses on making

workplaces safe before work begins was successfully implemented

during 2008 at Blyvoor and is ongoing

After the establishment of the Mining Industry Occupational

Safety and Health (MOSH) Task Team which followed the Mine

Health and Safety Councilrsquos summit of 2003 a team was set up

to focus on each of the four key health and safety areas in the

South African mining industry leadership noise dust and FOG

Once leading practices had been identified the emphasis

changed to implementation At this stage Community of Practice

for Adoption (COPA) groups were formed The members of these

groups interact to share information in order to help in

overcoming problems associated with implementation and to

bring about continuous improvements in performance During

2009 Blyvoor signed up as a COPA member to support the

adoption team that focuses on falls of ground The COPA to which

the mine belongs is looking at the aspect of entry examinations

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 20: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 18

Crown ERPM Total

DRDGOLD Sustainable Development Report 2009 18

Safety and health (continued)

Occupational health disease Blyvoor ERPM Crown

2008 2009 2008 2009 2008 2009

OLD ndash number of cases submitted to MBOD 105 64 0 53 0 0

TB ndash prevalence rate per 1 000 employees 2512 1392 1956 3139 7 0

ndash new cases 82 49 65 53 7 0

NIHL ndash diagnostic audiograms performed 49 98 37 52 1 1

ndash submissions for possible compensation 27 31 27 52 1 1

ndash cases compensated 22 6 0 0 0 0

Periodic

Blyvoor

644

3 307

185

4 136

823

231

543

1 401

2 175

4 673

Initial 598 1 473

Exit 267 1 853

Crown started a lsquohands and fingersrsquo campaign during the year to

make employees aware of the importance of taking precautions by

wearing the right protective clothing and of vigilance at all times

There was also a major drive to focus attention on the wearing of

eye protection

As ERPM was placed on care and maintenance during the year no

safety-related initiatives were launched at this operation

Health The most significant occupational health diseases at DRDGOLDrsquos

operations are occupational lung disease (OLD) comprising silicosis

and chronic obstructive airway disease (COAD) which can be

caused by exposure to silica dust in operations with quartz-bearing

rock pulmonary tuberculosis (TB) the risk of contracting which is

increased by exposure to silica and when people are HIV positive

and noise-induced hearing loss (NIHL) which can occur when

employees are consistently exposed to high levels of noise ndash in

excess of 85 decibels (dBA) ndash over an extended period of time

Statistics regarding these diseases are provided for the operations

in the table above

DRDGOLDrsquos occupational health strategy has two pillars trying to

eliminate or reduce the cause of health problems and regular

medical monitoring of employees particularly those most at risk in

an effort to prevent such problems occurring and to detect

symptoms as early as possible (See case study Improving

occupational health care at Blyvoor on page 21)

Addressing the causes of health problems In terms of NIHL a baseline occupational hygiene audit was

conducted at all operations during 2007 and project planning for

Medical surveillance examinations in 2009

the implementation of a hearing protection programme is under

way Major focus areas during the year under review have included

a programme to reduce the sound level of rock drills and fans and

reinforcing procedures regarding the use of hearing protection

devices which are provided to all employees exposed to high levels

of noise Another 20 of all rock drills at Blyvoor were muffled to

bring the percentage for 2009 to 95 This procedure reduces

sound levels by approximately 10dBA In addition 90 of all fan

installations at this mine have been silenced The installation of

muffles was planned to start at ERPM in October 2008 ndash the month

in which the operation was placed on care and maintenance

The fact that ERPM has been placed on care and maintenance

means that no water is being used underground to allay dust This

means that when employees are required to go underground they

are issued with respirators The installation of foggers to reduce

dust at the tips at Blyvoor is being investigated

Managing health care Occupational health care at DRDGOLD which forms part of the

companyrsquos broader health care programme makes provision for

initial periodic and exit medical examinations Employees are

screened for heat tolerance NIHL and TB The treatment for TB is in

line with that prescribed by the World Health Organisation

(WHO) Statutory records are kept and compensation claims

submitted to the Medical Bureau for Occupational Diseases

(MBOD)

At Blyvoor health care has been outsourced to Healthshare Health

Solutions since 2005 Primary health care is available 24 hours a

day at two on-mine clinics Secondary and tertiary health care is

available to Blyvoor employees at the Gold Fields West Hospital in

Carletonville The mine subsidises the cost of this service

Total 1 688 7 999

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 21: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 19

19 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 22: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 20

ERPM

DRDGOLD Sustainable Development Report 2009 20

Employees on ART (Blyvoor) referrals for ART (ERPM)

Blyvoor

64 91

169 102 - 40

VCT attendance 2 85

Safety and health (continued)

All employees at Crown are covered by a medical aid scheme An

occupational health clinic is staffed by a full-time occupational

health practitioner and a part-time doctor

Health care at ERPM was outsourced to Life Healthcare until the

end of February 2009 when the operation was placed on care and

maintenance Since March health care has been provided at an onshy

site clinic where there is a full-time sister and a part-time doctor

on duty

HIV amp AIDS DRDGOLD recognises that HIV amp AIDS is a serious threat to the

well-being of employees the company and the industry The

average prevalence level in the mining industry in South Africa

is reported to be approximately 30

While acknowledging that there is no simple way to counter this

threat DRDGOLDrsquos strategy includes the following

actively driving awareness programmes at each operation

involving all stakeholders in a multi-faceted approach to

educate employees and their dependants to prevent the

incidence of HIV amp AIDS

the development of wellness programmes for employees

providing confidential informed voluntary counselling and

testing (VCT)

providing appropriate medical care to employees suffering

from HIV amp AIDS and

giving terminally ill employees the opportunity to live the rest

of their lives with dignity

Managing HIV amp AIDS The management of the disease at DRDGOLD operations is based

on preventing people from getting the disease and on providing

treatment when they are found to HIV-positive

At Blyvoor a joint managementunion initiative known as Project

Tsietsi was established in 2008 and conducts awareness campaigns

relating to HIV amp AIDS including the holding of education sessions

and the use of posters The minersquos wellness programme encourages

HIV amp AIDS statistics

Aspect 2008 2009 2008 2009

a healthy lifestyle and a health awareness day was held during

the year

Crown is a participant in a three-year HIV awareness campaign

which is run by accredited education and training service provider

Redpeg (a company owned and managed by black women) in

collaboration with the government

Wellness days were held every quarter at ERPM with HIV amp AIDS

and TB alternating as the topics

Condoms are dispensed by the on-mine clinics at Blyvoor and the

medical station at Crown where dispensers are placed in the

change houses At ERPM every shaft recreation place and all

change houses had condom dispensers and condoms were

distributed on wellness days

Blyvoor employees are encouraged to go for VCT at the clinics When

employees at Crown request assistance VCT is recommended

Medication for opportunistic infections is available at the Blyvoor

clinics and patients are referred to a private practitioner in Carletonville

for anti-retroviral therapy (ART) when this is medically indicated

The total cost of Blyvoorrsquos HIV amp AIDS programme is between

R800 and R1 000 per person per month

As Crown employees do not live on site and are covered by a

medical aid scheme they attend private or government

clinicshospitals and the operation does not keep their medical

records It is therefore not possible to give an estimate regarding

the number of employees on ART or the costs associated with this

Crown and corporate office support the AIDS Week

Bannerthon when the business community in South Africa shows

its solidarity with HIV amp AIDS sufferers and helps to raise money

for Aids orphans

ERPM donated the premises for the Khotso-Caritas Care Home

which offers a wide range of treatment to employees and people

from the wider Ekurhuleni area This includes VCT a wellness

programme and free ART See the Community section of this report

for further information about this facility

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 23: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 21

Phase 2 of the renovation of the old A J Orenstein Hospital now known as the Blyvoor Occupational Health Centre is

under way and is expected to be finalised by the end of September 2009

As part of this phase Healthshare has installed an X-ray machine and employed a fully qualified radiographer Madelein Felix

(above) who joined Healthshare Contracts Executive Caroline Green and her team of 12 occupational health professionals

during June 2009 ldquoThe medical facilities at Blyvoor have made it much easier for patients to have access to the medical

care they require and have significantly reduced travelling expensesrdquo Madelein explained

Since December 2008 the number of employees using the clinic has increased substantially which has contributed towards

the prevention of unnecessary hospitalisation

The occupational health care centre offers the full spectrum of primary health care including an HIV amp AIDS programme

In support of this programme Healthshare has appointed a wellness co-ordinator which has resulted in a greater level of

awareness on the mine and increased the number of employees receiving VCT

Other health services available on site include audiology lung function tests TB X-rays and the admission of directly

observed therapies As part of DRDGOLDrsquos Employee Assistance Programme (EAP) employees now also receive trauma

counselling and marital guidance Those requiring these services are referred to the nearby Leslie Williams Hospital

Employee Relations Superintendent Paul Leenderts commented ldquoBlyvoor remains committed to ensuring the health and

safety of each and every employee We are in no doubt that through Healthshare our employees are in capable handsrdquo

Improving occupational health care at Blyvoor

Together with service provider Healthshare which manages the operationrsquos primary and

secondary health care Blyvoor is in the process of improving the standard of health care

given to employees

DRDGOLD Sustainable Development Report 2009 21

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 24: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 22

Employment and human rights

DRDGOLD Sustainable Development Report 2009 22

DRDGOLD has a group policy regarding recruitment selection engagement and separation

practices The companyrsquos vision is to be lsquothe employer of choicersquo in the South African gold mining

industry and the policy seeks to recruit and select the best talent available to fill vacancies and

to ensure that the engagement of successful applicants and their induction as new employees

takes place smoothly Another objective is that the policy serves as a vehicle for identifying and

analysing any lsquopushrsquo factors that may cause talented people to leave as well as any external lsquopullrsquo

factors that may attract such people away from the company When a vacancy occurs the

company looks among existing employees to fill the position and only looks outside if there is no

suitable internal candidate

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 25: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 23

2008

DRDGOLD Sustainable Development Report 2009 23

Total number of employees and contractors at 30 June Operationentity Employees Contractors Total Employees Contractors Total

Crown

2009

4 005 596 4 601

510 680 1 190

185 61 246

139 509 648

30 0 30

4 869 1 846 6 715

492 687 1 179

Blyvoor 3 835 676 4 511

ERPM 1 892 8 1 900

ErgoGold NA NA NA

Corporate and regional offices 37 0 37

Total 6 256 1 371 7 627

Union membership as of workforce by operation

Each operation has a human resources manager with specialist

human resources and training personnel to handle the day-to-day

management of employee-related issues This manager reports to

mine management and to the Executive Officer Human Resources

who has overall responsibility for human resources industrial

relations and labour practices across the group

The operations have employee forums that engage with

management on different issues At Crown for example there are

four forums education health and safety future and employment

equity and transformation

Talent is fostered through learnerships internships and tertiary

education programmes In particular all the operations identify

historically disadvantaged South Africans (HDSAs) for skills

development and advancement In the year under review Blyvoor had

41 Crown 15 and ERPM 12 HDSAs in their respective talent pools

At the end of 2009 DRDGOLD employed 6 715 people of whom

1 846 were contractors (275 of the workforce) The turnover

rates for the three operations were Blyvoor 084 Crown 35

and ERPM 87 The reason for the high percentage at ERPM was

the placing of the underground operations on care and

maintenanceThis resulted in the retrenchment of 1 336 employees

while 116 were transferred to other DRDGOLD operations

Human rights South African legislation ndash in particular the Labour Relations Act the

Employment Equity Act aspects of the Mine Health and Safety Act

the Mineral and Petroleum Resources Development Act (MPDRA)

and the Mining Charter ndash lays down certain requirements in respect

of labour relations operating in the country These include such

human rights conventions as freedom of association and collective

bargaining In addition the countryrsquos constitution and its

subscription to various International Labour Organisation

declarations as well as other international regulations play a part in

setting parameters for employeremployee relations

DRDGOLDrsquos adherence to the legislation declarations and

regulations outlined above means that the company prohibits

forced compulsory and child labour and ensures that its

employment practices are fair

DRDGOLDrsquos board-approved Code of Ethics commits the company

to fair employment practices equal opportunity and employment

equity The code states that DRDGOLD respects and defends the

rights of all employees to a working environment free of

discrimination on the basis of attributes unrelated to job

performance for example race gender religious belief political

affiliation age or disability Company policy prohibits harassment

whether it occurs in the workplace or at other employee-related

events or activities

All employees have the right to freedom of association and to act out

this freedom within the bounds of the law and collective agreements

and provided that this does not impinge on the rights of others

Labour relations The two unions recognised by DRDGOLD are the National Union of

Mineworkers (NUM) and UASA ndash the Union In total 84 of

DRDGOLD employees are unionised 65 belonging to NUM and 19

to UASA The company has recognition agreements with both unions

Wages and conditions of employment are negotiated on a biennial

basis for each operation Monthly managementlabour meetings

are held at each operation where unions are informed about

production results and employee concerns are addressed

When operational changes occur DRDGOLD observes the 60-day

consultation process specified in Section 189A of the Labour

Relations Act and this was the case with the retrenchments that

took place at ERPM in January 2009 There was no industrial action

associated with this process The retrenchment packages were

agreed with the unions and the company worked closely with the

unions and the Department of Labour to identify and implement

re-skilling programmes Where possible it engaged with other

Blyvoor 65 11

Crown 70 10

ERPM 60 37

Total

76

80

97

Operation NUM UASA

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 26: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 24

2008

DRDGOLD Sustainable Development Report 2009 24

Employment and human rights (continued)

HDSAs in management Operationentity Number in of total Number in of total

management management management management

Crown

2009

14 25

10 33

1 8

7 32

19 40

Blyvoor 21 18

ERPM 13 27

Corporate and regional offices 6 22

Wom

en in

min

ing

as

perc

enta

ge o

f w

orkf

orce

mining companies which expressed an interest in recruiting

employees and established lines of communication between these

companies and the unions

Diversity and equal opportunity The employment of HDSAs is regulated through the Employment Act the MPRDA and the Mining Charter The Mining Charter requires companies in South Africa to publish employment equity plans and to report on progress to achieve 40 HDSA participation in management and to have women making up 10 of the workforce

There is no discrepancy between the salaries and wages paid to men and women in the same positions and they enjoy the same conditions of service Employment equity plans and progress with the companyrsquos operations are submitted to the Department of Labour every year

Steps are being taken at Blyvoor to reach the Mining Charter targets Preference is given to HDSA candidates when recruiting people for management positions and promising HDSA employees are earmarked for internal promotion All 41 employees in the talent pool are assisted by 15 trained mentors When seeking to fill vacancies for category 3 to 8 employees the mine ensures that 10 of those engaged are women

Prior to being placed on care and maintenance ERPM had five trained mentors looking after the 12 employees in its talent pool

Training and development DRDGOLD is committed to training and developing its employees

at all levels across the group In 2009 a total of R45 million

40

35

30

25

20

15

10

5

0 Blyvoor Crown ERPM Corporate and

regional offices 2008 2009

(2008 R55 million) was spent by the company on these aspects

During 2009 employees at Blyvoor in categories 4 to 8 spent an

average of 13 days in training four days in refresher training and

three days in first aid training For those in category 9 and above

an average of four days were spent in refresher training and three

days in first aid training

Adult Basic Education and Training (ABET) is available at all

operations At Blyvoor ABET is available on a part-time basis to

employees as well as to people from the surrounding community

The company employs a full-time co-ordinator and four part-time

educators During 2009 140 learners enrolled at the ABET centre

60 of whom wrote an examination and were certified as competent

in Levels 1 2 3 and 4

Full-time ABET classes (from Level 1 to Level 4) were offered on the

Crown premises to around 20 employees a year until 2008 A skills

audit is scheduled in order to determine future requirements and

classes will start again in January 2010 for identified employees

These will be conducted by the Ekurhuleni Business Development

Academy (EBDA) which DRDGOLD has established in partnership

with its Ergo joint venture partner Mintails

Prior to January 2009 there were four trained ABET facilitators at

ERPM and 55 employees were taking ABET classes on a full-time

basis at Ergorsquos training facilities The entire ABET curriculum ndash

equivalent to nine years of schooling ndash was offered The cost of

ABET at this operation in calendar 2008 was R250 000

Learnerships provide employees with the opportunity to improve their

skills through a combination of studying and practical on-the-job

trainingAt Crown 16 employees 15 of whom are HDSAs are learning

trades eight as fitters four as electricians one as a rigger and three

in platingwelding Three streams are being run six employees will

be eligible to take trade tests in November 2009 six in 2010 and

four in the second quarter of 2012 There are currently 12 employees

on learnerships at Blyvoor ndash some learning to be boilermakers and

electricians and others learning mining-related skills

Currently Blyvoor has two HDSA students on its bursary

programme both of whom are studying mining engineering at a

tertiary institution The cost of this in 2009 was R72 000 No

bursaries or scholarships were awarded by Crown or ERPM during

the year under review

(See case study Junior Leadership Programme empowers employees

and saves company money on page 26)

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 27: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 25

DRDGOLD Sustainable Development Report 2009 25

Employee benefits Benefits at Blyvoor include free medical care (for category 4 to

8 employees) medical aid for other employees maternity and

family responsibility leave pension and provident funds

accommodation and study assistance

At Crown benefits include medical aid maternity leave a pension

fund profit share and study assistance

Benefits at ERPM were free medical care (for category 4 to

8 employees) a monthly medical allowance for other employees a

skills retention allowance and study assistance

Housing and living conditions At Blyvoor 71 (2 820 people) of employees live in accommodation

provided by the mine The breakdown is as follows

764 in houses

396 in family units and

1 660 in single accommodation in hostels

The remainder of the workforce 1 181 employees live in their

own accommodation which they may rent or own

There has been a steady decline in the number of employees

residing in the two on-site hostels from 1 995 in 2007 to 1 797 in

2008 and to 1 660 (47 of the workforce) in 2009 In the

meantime the mine has continued with its project to convert

hostel rooms into family units To date 292 units have been

completed Blyvoor is also converting part of a hostel into

accommodation for female mineworkers who are single The

cost of these programmes to date is R14 million In addition

15 employees per month are being allocated company

accommodation which was formerly used for rental purposes

Daily meals are provided to all Blyvoor hostel residents

while underground and plant employees are given a meal pack on

their way to their workplace The annual cost to the company is

some R193 million a year

There is no on-site accommodation at Crown or ErgoGold and

employees are not provided with meals Crown employees receive

a housing allowance of R400 a month The company donated the

land part of the now closed Durban Roodepoort Deep Mine on

which a new suburb of Soweto ndash Bramfischerville ndash was built

Before ERPM was placed on care and maintenance 5 of

employees resided in housing provided by the mine Home

ownership was encouraged through a low-cost housing initiative

The mine made 62 hectares of its land near Boksburg available to

the Ekurhuleni Municipality for the construction of housing units

for employees and community members

Some 11 of ERPM employees lived in an on-site hostel The

majority of category 4 to 8 employees opted for the living out

allowance All underground employees were provided with meals at

a cost of around R60 000 a year

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 28: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 26

DRDGOLD Sustainable Development Report 2009 26

Employment and human rights (continued)

Junior Leadership Programme empowers

employees and saves company money

DRDGOLD ran a pilot Junior Leadership Programme (JLP) during 2009 Executive

Officer Human Resources Andrew Weir said ldquoWe embarked on this project in an

effort to teach those attending the course about finance management and decisionshy

making and lastly to try to create a sustainable project that will help chosen

candidates grow in their current positionsrdquo

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 29: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 27

Union membership as of workforce by

operation

Operation NUM UASA Total

Blyvoor 65 11 76

Crown 70 10 80

ERPM 60 37 97

DRDGOLD Sustainable Development Report 2009 27

Comprising both theoretical and practical study

candidates were required to submit an impact project at

the end of the course Of the 13 people who completed

the course 11 submitted impact projects ldquoThe

outstanding thing about a course such as this is that the

impact projects presented represent a total saving of

around R14 million per month for DRDGOLD When you

consider that the cost of the training amounted to

R400 000 in total this is a significant saving for the

companyrdquo training consultant Piet Pistorius said

Candidates had to present their impact projects to senior

management and to the main lecturers involved with the

JLP after which the most outstanding projects were

announced at a function on 24 June 2009 Piet explained

ldquoWinners were judged on a number of criteria such as

the quality of their presentation the financial impact of

their projects their overall performance throughout the

course and the incorporation of project key performance

areas (KPAs)rdquo

Some examples of outstanding projects included

cost benefit analysis of hiring versus purchasing TLBs

at Ergo

implementation of geological drilling schedules to

reduce costs associated with ad hoc drilling

interrogation of systems and controls to improve net

cash flow in respect of living out allowances paid to

contractors and VAT at ERPM and

maintaining a constant oxygen supply into the elution

process to dramatically improve extraction efficiencies

Leonard Nxumalo a geologist at Blyvoor received the

best student award no mean feat for someone working

full-time His impact project looked at reducing the unit

costs per metre drilled in the diamond drilling programme

It has revolutionised the manner in which diamond drilling

is scheduled and conducted and to date has saved the

company in excess of R150 000

ldquoThe entire course was most valuablerdquo Leonard said ldquobut

my best module was personal productivity ndash it made me

become more effective as an individual a more effective

team member and most importantly an effective leader It

also improved my personal life in a very amazing wayrdquo

Tessa Wilkins an assistant financial accountant at ERPM

received the award for the best impact project Her project

entailed detailed scrutiny of current living out allowances

paid by the mine to contractors who provide hostel

accommodation on behalf of the mine Allowances were

verified by the payroll department after physical counts

were conducted to more accurately reflect the correct

amounts owed to the contractor and the projectrsquos return

on investment which was around R100 000 over a threeshy

month period is escalating monthly

Tessa found the course beneficial ldquoIt gave me the ability

to deal more effectively with change to work more

assertively to unite a diverse team to manage my time

more effectively and to delegate and prioritise After the

course I have become more focused and understand that

goal-setting is crucial to successrdquo she said

Andrew concluded ldquoThis all-encompassing programme

has been well received by the students and the company

Along the way we have learnt a great deal about

managing learnersrsquo expectations and how best to apply

the selection criteria at the outset so as to minimise the

number of drop-outs We look forward to welcoming the

next set of learners and hope that they can implement as

efficient and sustainable projects as their predecessorsrdquo

The course comprised five modules

Module 1 Personal productivity

Module 2 Leadership

Module 3 Fundamentals of management

Module 4 Fundamental principles of economics and business finance

Module 5 Introduction to project management

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 30: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 28

Community development

DRDGOLD is committed to contributing to the long-term economic well-being of the areas in which it operates and through Teba Development to those areas from where its labour is drawn It has Local Economic Development (LED) programmes in place for all three operations These aim to promote development that

is based on resources that are locally available

DRDGOLD Sustainable Development Report 2009 28

is based on the priorities and needs identified by the municipality concerned uses resources economically and sustainably is feasible for the operation given its size and profitability includes as many economic sectors as possible provides for a diverse labour market and devolves ownership of the development process to local people

Projects for consideration are identified through formal regular contact with local authorities Blyvoor with the Merafong City Council ERPM with the Ekurhuleni Municipality and Crown with the Johannesburg and Ekurhuleni metropolitan municipalities

With respect to both LED and corporate social investment projects DRDGOLD consults with community leaders and organised labour

The chief areas of focus are education sustainable job creation health (particularly HIV amp AIDS) and housing The same priorities apply when it comes to selecting projects for corporate social investment

A budget is established for corporate social investment at operational level and a needs analysis is conducted with community leaders and organised labour to establish priorities

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 31: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 29

rdquo

DRDGOLD Sustainable Development Report 2009 29

Ekurhuleni Business Development Academy A major LED project supported by DRDGOLD in conjunction with its Ergo Mining joint venture partner Mintails is the Ekurhuleni Business Development Academy (EBDA) which opened its doors to the first batch of learners in February 2009

The initiative will equip members of the surrounding communities and DRDGOLDrsquos Crown ERPM and ErgoGold employees with the skills required to pioneer much-needed enterprise development in South Africa

Situated at the former Metallurgical Training Centre at Ergo (which was previously being utilised only for ABET) the academy incorporates both vocational and business skills training and courses are aligned to and accredited by the Mining Qualifications Authority (MQA)

EBDA presents ABET courses from Level 1 to Level 4 to DRDGOLD employees as well as to about 40 learners from the surrounding community Apart from ABET the centre provides engineering and metallurgical training to around 90 people

Also located on the EBDA premises the Siyafunda centre offers computer literacy training to some 29 learners and plans are already under way to expand with the addition of a further 10 workstations

During the period under review in close consultation with labour and the Department of Labour DRDGOLD started a R26-million re-skilling programme at the EBDA centre in an attempt to reduce the impact of the retrenchments which occurred when the company had to discontinue underground operations at ERPM

Employees who participated in the programme completed a twoshyweek basic business skills course after which they could choose to do practical courses in welding electrical construction motor mechanics or plumbing

Other LED projects Another significant LED project in Ekurhuleni is the Khotso-Caritas Hospice which serves people affected by HIV amp AIDS in the

surrounding areas ERPM donated and renovated the building for this facility (see case study Supporting Ekurhulenirsquos HIV amp AIDS affected

on page 30)

Reef picking ndash the task of sorting through four rock dumps to pick out rocks with gold-bearing qualities ndash is one of Blyvoorrsquos key LED projects It was established in 2006 to provide employment for local women Candidates are sent on a samplinggeology course to obtain the required skills Those with high potential are sent to the processing plant to acquire further skills and experience This paves the way for them to become permanent employees of Blyvoor and to progress into careers as smelters surveyors and geologists More than 100 women moved into permanent positions during the past year Currently some 80 women are employed as reef pickers As each person supports a number of dependants this project which is now self-funding ensures a better standard of living for several hundred people in the community

Another important LED project which also started in 2006 is the provision of quality housing with full services for employees and their dependants at Blyvoor through the upgrading of hostel rooms As mentioned in the Employment section of this report 292 rooms had been converted into family units by the end of June 2009 The cost of this programme to date is R18 million of which R611 168 was spent in the year under review Gardens and recreation areas have also been upgraded over the past three years

A third LED project a hydroponic vegetable growing project was launched during the year under review (see case study Blyvoor

planting for the future on page 32)

During 2009 corporate social investment activities at Blyvoor included the Blyvooruitzicht Library ndash the mine continued to supply water and electricity at no cost ongoing maintenance of the Ekuphakhameni Primary School sewing school ndash the minersquos renovation of family units made provision for an area for this facility where employees and their families can be trained and community soup kitchen and vegetable growing project ndash Blyvoor donated the premises for this for which no rental is charged and supplied the stove and a set of pots

Crown encourages entrepreneurship Crown employees who are members of the National Union of Mineworkers (NUM) approached management about creating a transport co-operative During the 2007-08 wage negotiations it was agreed that these employees would form a committee to look into providing transport for shift workers to and from the operationrsquos three plants (Knights Crown and City Deep)

Management helped these members to register Crown Logistics as a CC in order to form the Crown Transport Co-operative The operation also ensured that the employees concerned received the appropriate training and assisted with the drawing up of a business plan Crown Logistics CC then secured an agreement with a vehicle hire company to lease three buses

The upshot is that the co-operative has been providing a transport service to 240 shift employees since 14 May 2009 Shop steward Charles Ryan said that the initiative was being well received Crown pays the co-operative R70 000 a month for the provision of this transport service and the contract is for a period

of three years ndash the operationrsquos life of mine From the outset the intention has been that the co-operative should be run according to sustainable business principles

Crownrsquos Human Resources Manager Jeevan Uren said ldquoThis has been an initiative run entirely by employees empowerment is the cornerstone of this agreement and it is encouraging to see employees taking joint responsibility for an element such as transport It would be great if the Crown Transport Co-operative could extend its services beyond Crown to other companies in the surrounding areas

To this end Crown will support the co-operative by assisting with business plans and proposals whenever approaches are made to other companies for transport contracts

When Crown closes the plan is that the co-operative will be based at ErgoGold where it is estimated that the provision of a transport service to employees should result in a contract worth around R12 million a year

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 32: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 30

Community development (continued)

DRDGOLD Sustainable Development Report 2009 30

Supporting Ekurhulenirsquos HIV amp AIDS affected

DRDGOLD has supported the Khotso-Caritas Hospice which provides care and

assistance to employees and members of the community infected and affected by

HIV amp AIDS since 2002 The Hospice established by Dr Khotso Ncholo currently runs

three programmes which include palliative care to terminally ill patients anti-retroviral

treatment (ART) and a childrenrsquos day care centre which provides care to 66 children

between the ages of three and six from the surrounding communities

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 33: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 31

DRDGOLD Sustainable Development Report 2009 31

The Khotso-Caritas Hospice operates from premises as chairman of the board ldquoThe hospice survives by

donated and recently renovated by ERPM DRDGOLD means of donations from various organisations With also covers the cost of utilities including water and the various skills and talent serving on the board and electricity and maintenance costs on a monthly basis Dr Ncholorsquos vast experience we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic The palliative care admission ward is capable of

objectivesrdquo he said accommodating 18 patients at any given time and has

been supported and funded by PFG Building Glass in The Khotso-Caritas Hospice is strengthening every

Springs since 2007 During 2008 363 patients were year in terms of skill and capacity but the challenges

admitted and treated which came to an average of grow each year as well ldquoHaving worked in public

31 patients a month hospitals and experienced the lack of resources I now

Through support from the Aurum Institute which is believe that we cannot turn a blind eye to the current

funded by the United States Presidentrsquos Emergency situation As a non-profit organisation we are Plan for Aids Relief (PEPFAR) the hospice is able to dependent on the generosity of donors in the private provide free ART to those affected The hospice is sector and we also rely greatly on the assistance of currently in the process of applying for full volunteers because we provide our service to the membership of the Hospice Palliative Care Association community free of charge I do believe however that (HPCA) which will allow opportunities to network we are making a significant contributionrdquo says with other affiliated organisations as well as better

Dr Ncholo training opportunities for medical staff

The plan for the coming year is for the hospice to start Realising that HIV amp AIDS does not discriminate

a vegetable farming project to include conventional against its victims the Khotso-Caritas Hospice has

and hydroponic methods ERPM which has allocated established a childrenrsquos day-care centre which R132 000 to the project will donate the land and pay provides care to children infected and affected by HIV the water costs The operation is partnering with the amp AIDS Children between the ages of three and six are

collected from their homes every morning and Carnival City Complex in Brakpan in this venture

returned in the afternoon once their caregivers return Thirty people have been recruited of whom 10 are home from their workplacesThe centre provides them former employees of ERPM 10 are members of the with anti-retroviral therapy education and three community and 10 are patients The training nutritious meals a day Once the children graduate

from the day-care centre they continue to receive programme started in August 2009 at Khotso-Caritas

treatment at the centre and their well-being is and will run until the end of the year During

monitored on a regular basis this time the members of the group are receiving a

stipend of R1 200 per month At the end of this In total the Khotso-Caritas Hospice employs

period the 10 most promising candidates will be 36 people responsible for tending to the needs of

sent to Magaliesburg to take a week-long course in patients At present Dr Ncholo is assisted by two

hydroponic vegetable growing part-time doctors a nursing staff of 14 four

counsellors four caregivers and 16 employees It is envisaged that the first batch of produce will be responsible for preparing meals administration and ready by the end of the December thus putting the maintenance duties

project on the road towards achieving selfshy

sustainability Carnival City will buy some of the In May 2009 the Khotso-Caritas Hospice appointed a

board of representatives to oversee and assist with the produce some will be used to feed patients of Khotsoshy

activities of the hospice Buti Biloane Human Caritas and the remainder will be sold to local retailers

Resources Manager at ERPM and Ergo was appointed or directly to the public

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 34: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 32

DRDGOLD Sustainable Development Report 2009 32

Community development (continued)

The Morogo project is situated on a section of mine property which has been cleared and zoned for farming activities

Apart from the land DRDGOLD has contributed R1 million towards initial start-up costs and will continue to support the

project until it has reached a level of self-sustainability

Currently equipped with five hydroponic tunnels measuring 30 by 10 metres each the project will supply the mine

hostels and the community surrounding Merafong City with reasonably priced seasonal salad staples including tomatoes

cucumbers and sweet peppers

Merafong councillors have been actively involved in the process of developing this project and will continue to visit the

site on a monthly basis to promote community participation

Head of DRDGOLDrsquos Properties Division Louis Lamsley who oversees the project says that 11 community members are

currently employed They have all received theoretical and practical training in hydroponics and plant production at the

Dicla agricultural training centre which is close to Mogale City (Krugersdorp)

ldquoThe participating community members have been equipped with the necessary skills to operate and maintain irrigation

systems and maintain the basic water quality as well as perform basic routine operations in a defined hydroponics

context during the different growing periods of the vegetablesldquo he said

Plans are in place to ensure that the project progresses into a self-sustainable venture ldquoOnce the hydroponic farming has

been fully established we will embark on open field cabbage and spinach farmingrdquo he explained

The first vegetable seeds will be planted in September 2009 with the first produce expected in October This will then

be sold to members of the surrounding communities and local supermarkets

Louis summed up the hopes and aspirations of all concerned ldquoEven though the Morogo project is still in its germination

stage we believe that it has the potential to grow After all even a mighty oak tree was once a tiny seedrdquo

Blyvoor planting for the future As part of its commitment to promoting job creation and skills development in the local

community DRDGOLD launched the Morogo hydroponic vegetable growing project at

Blyvoor during 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 35: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 33

33 DRDGOLD Sustainable Development Report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 36: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 34

Environmental performance

DRDGOLD Sustainable Development Report 2009 34

Environmental management

The environmental function at DRDGOLD is managed in line with the environmental legislation

and regulations of in particular the Department of Mineral Resources (DMR) the Department of

Water and Environmental Affairs (DWEA) and the National Nuclear Regulator (NNR) (See box on

opposite page) Consultations are also held with the regulatory authorities

As is required by legislation Environmental Management Plans (EMPs) are in place at all of the

grouprsquos active operations These plans have been developed by the company and submitted to the

DMR and address the impacts and potential impacts on the environment by the company as well

the measures to manage monitor and mitigate these impacts A biennial audit is undertaken to

assess compliance with the EMP and submitted to the DMR The most recent audit was conducted

in 2008 with the report sent through to the department in March 2008 The EMP is a dynamic

document and informed by any changes in legislation and changes in scope Any new projects are

subject to Environmental Impact Assessments (EIAs) which include a high degree of

public participation

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 37: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 35

DRDGOLD Sustainable Development Report 2009 35

Revised EMPs for all operations were submitted to the DMR for

Blyvoor and ERPM in 2007 and for Crown in 2009 and approval is

awaited All the operations have applied for integrated water use

licences and are awaiting approval from the authorities In the interim

water is managed in terms of previously approved water permits

No fines were imposed on any of the grouprsquos operations during

2009 in respect of environmental management

DRDGOLD has a Group Environmental Manager who takes overall

responsibility for this discipline across the group and monitors

performance against the EMPs All key environmental staff and

contractors report into this function although the ultimate

responsibility for environmental practices at an operational level

resides with operational management

Crown and Blyvoor have environmental managers and radiation

protection officers (RPOs) on site ERPM and the discontinued

operations of Durban Roodepoort Deep (DRD) and West Wits make

use of a contractor Malepa Holdings to carry out the RPO function

Malepa Holdings also undertakes radiation protection specialist

duties at all DRDGOLD operations

Another contractor Fraser Alexander (Technical Division) performs

the annual closure liability and the EMP performance assessments

Various contractors are used for the updating of EMPs the carrying

out of EIAs and for rehabilitation projects

Malepa Holdings undertakes the annual Government Notice (GN)

704 (guidelines for the use of water in mining) audits and Annergarn

Environmental Research a leading dust monitoring agency in

southern Africa performs dust sampling and analysis at

all operations

Environmental incidents Environmental incidents are monitored and reported to the

relevant authorities as is required In assessing environmental

incidents DRDGOLD follows

the categories set out in the NNR Certificate of Registration

Chapter 23 of the Mine Health and Safety Act which sets out

Regulations for the Reporting of Accidents and Dangerous

Occurrences and

GN 704 Regulation 2 with respect to any possible effect on a

watercourse

At Blyvoor 11 spills occurred during the year as a result of burst

reclamation pipes from slimes dams numbers 4 and 5 The spills

were all on the mine property and did not affect any watercourse

The volume of these spills has been estimated at approximately

8 000 tonnes and they are in the process of being cleaned up The

existing steel reclamation pipelines have been replaced with high

density polyethylene pipes

Relevant legislation Constitution of the Republic of South Africa 1996

Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) and MPRDA

regulations

National Environment Management Act 1998 (NEMA) and amendments

Regulations in terms of Chapter 5 of NEMA

National Environmental Management Waste Act 2008

National Water Act 1998 (NWA) and regulations

National Nuclear Regulator Act 1999

National Nuclear Regulator Act 1999 Regulations on Safety Standards and Regulatory Practices

National Environmental Management Air Quality Act 2004

Hazardous Substances Act 1973

Mine Health and Safety Act 1996 (MHSA)

Conservation of Agricultural Resources Act 1983 (CARA) and amended regulations 2001

National Environmental Management Biodiversity Act 2004

National Environmental Management Protected Areas Act 2003 and Protected Areas

Amendment Act 2004

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 38: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 36

DRDGOLD Sustainable Development Report 2009 36

Environmental performance (continued)

Only one reportable incident occurred in the group during 2009

This happened at Crown at the end of June 2009 where spillage

control dams were breached at the Crown plant and around

600 tonnes of slime flowed into the Russell stream affecting an

area about 30 metres in length The cause of the problem was a

power failure on the part of state utility Eskom which resulted in all

the pumps ceasing to operate The area is in the process of being

cleaned up after which a close-out report will be completed and

sent to the authorities The capacity of the control dams is being

increased so that there is less danger of a spillage should a similar

episode occur in the future

Major environmental risks The major environmental risks and concerns for DRDGOLD are those

of air pollution (dust) water management (including the sourcing of

water and polluted discharges) resource utilisation (and in particular

the use of cyanide and timber) energy usage and land management

and closure Blyvoor has an added risk of sinkhole formation because

of dewatered dolomites underlying its significant landholdings

Air pollution As DRDGOLDrsquos surface reserves and resources are contained in

tailings dams many of them situated in built-up areas it follows

that dust is an issue that the company deals with on a daily basis

It is addressed through ongoing environmental management and

remediation measures such as vegetation and ridge ploughing

Dust is monitored at 1 884 monitoring points at DRDGOLDrsquos

operations (including closed mines) against the South African

National Standards (SANS) which are set out in the table below

Level Dust fall-out rate (mgm2day) Permitted frequency of exceedances

Target 300

Action residential 600 Three within any year no sequential months

Action industrial 1 200 Three within any year no sequential months

Alert threshold 2 400 None First exceedance requires remediation and compulsory

report to authorities

DRDGOLDrsquos Environmental Policy

DRDGOLD is committed to the responsible management of the environment in which it operates adopting and

implementing environmental best practice as outlined in the National Environmental Management Act 1998

Recognising that the environment is held in trust for the people DRDGOLD is committed to

integrating environmental management into the companyrsquos business and planning so as to minimise the influence of our

activities on the receiving environment through internal risk assessments and environmental impact assessments

complying with relevant environmental legislation as a minimum and adopting and applying the best practicable

environmental option (BPEO) on current activities as well as prospective projects

evaluating through a process of monitoring auditing and reviewing by management the success of the management and

mitigation measures applied and

ensuring that environmental risks and potential emergencies are identified and managed through effective controls and

procedures as identified in the applicable Environmental Management Programmes

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 39: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 37

2008

DRDGOLD Sustainable Development Report 2009 37

Results from monitoring points

Operation Points Number of Exceedances as Exceedances as

monitored exceedences percentage of total percentage of total

Crown 11

ErgoGold

2009 2009 2009

924 104 11

300 18 6

288 21 7

60 ndash ndash

312 77 25

5

ERPM 7

Blyvoor ndash

DRD 10

Operation Water Potable water

extracted (ML) extracted (ML) used (ML) used (ML)

2009 2008 2009 2008

Blyvoor 9 088 10 493 3 553 2 687 ERPM 4 745 19 450 4 054 4 314 Crown ndash ndash 4 627 4 597 ErgoGold ndash ndash 134 ndash DRD ndash ndash 185(1) 41 Total 13 833 29 943 12 553 11 598

The results from the monitoring points are set out in the table above

Crown Ergo and ERPM have numerous monitoring points because of their proximity to residential areas in central Johannesburg

Crown has monthly meetings on site with inspectors from the DMR to monitor compliance and assess the effectiveness of mitigating measures that are put in place to reduce dust emissions Quarterly public forum meetings are also held in the Ekurhuleni area where dust is one of the topics discussed

A dust register is kept at each operation to record complaints from the public Crown received 10 complaints during the year under review When a complaint is registered it is addressed immediately Usually the partyparties involved are invited to a meeting on site Mitigating measures are then put in place Complaints about dust are also discussed at quarterly community forum meetings

Mitigating measures to reduce dust include the use of vegetation where this is possible watering down of active faces and areas and rock cladding where necessary During the year under review Crown completed 121 hectares and Blyvoor 10 hectares of slide slope vegetation and 95 hectares of cladding were completed at Ergo In total DRDGOLD spent R19 084 560 on mitigation measures

DRD had a poor performance during the year mainly as a result of dust from the 2L24 complex Vegetation was stopped on this dam

Water withdrawn from source

because it was earmarked for future mining by Mintails SA All

surface slimes dams and sand and rock dumps have been sold to this

company which is now responsible for controlling and managing

these sites including the sampling and monitoring of dust

Water management Water is a scarce resource and DRDGOLD endeavours to

minimise the amount of water it uses In 2009 total water

usage by DRDGOLD amounted to 12 553 million litres (ML) or

126 million cubic metres (m3) Water is extracted from

underground at Blyvoor and this was also the case at ERPM until

operations were suspended As discussed below Blyvoor will be

setting up a plant to treat some of this water to potable standards

for use on the mine which will mean a substantial drop in the

consumption of potable water at this operation The source of

potable water at DRDGOLDrsquos operations is the Rand Water Board

at Blyvoor this is used for the two villages on site and for about

30 of the mining processes ndash for the rest extracted water is used

at ERPM it was used for cooling purposes underground and it is

used for domestic purposes and at Crown where there is no other

source of water it is used in all the mining processes

Water quality and discharge volumes are monitored regularly

Details of the water usage by operation for 2009 are set out in the

table below

(1) The reason for the sharp increase is that the total includes usage of water in the area by other parties for which DRDGOLD was billed This matter has

been sorted out and DRDrsquos water consumption figure will reflect accurate usage in 2010

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 40: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 38

DRDGOLD Sustainable Development Report 2009 38

Environmental performance (continued)

Water discharged 2009 Operation Volume EC Suspended Sulphates

discharged (ML) Destination pH mSm solids mgL mgL

Blyvoor 5 029 Wonderfontein Spruit 85 140 19 630

ERPM 4 145 Elseberg Spruit 8 NA 30 2 800

Wonderfontein Spruit

Blyvoor continues to discharge between 8 ML and 10ML per day of

fissure water from underground into the Wonderfontein Spruit

(stream) Samples of this water are taken every week and the

results sent to the Tlokwe Municipality and the Department of

Water and Environmental Affairs The water has been found to

be of relatively good quality (see table above)

A contract has been signed with Maano Water to establish a water

treatment plant at Blyvoor to treat some of this water to potable

standards for use on the mine This will reduce the volume of

external potable water used by the mine by approximately 175ML

per month as well as the amount of water being discharged into

the lsquospruitrsquo The plant will be commissioned before the end of

calendar 2009

Blyvoor is also a member of the Mining Interest Group (MIG) which

together with the regulators is looking at pollution in the sediments

of the lsquospruitrsquo from historical mining activities and determining what

action if any should be undertaken to clean this rivulet

The regulators have produced a report called the Remediation

Action Plan in which certain areas along this watercourse have been

identified for further investigation Implementation task teams will

now be established to carry out these investigations

The water discharged into the environment by the Blyvoor and

ERPM operations during 2009 is set out in the table above

Western Basin

The Western Basin of the Witwatersrand goldfields has been filling

with water after mining operations stopped in the early 2000s and

this water started to decant on surface in 2002

In response to this a Section 21 company the Western Basin

Environmental Corporation (WBEC) was formed by the mines

involved ndash Randfontein Estates (Harmony) Mogale Gold (Mintails)

and West Wits (DRDGOLD) ndash to investigate a sustainable solution

to this water which is polluted and needs to be treated A

management agreement was signed with the Western Utilities

Corporation (WUC) a wholly owned subsidiary of AIM-listed

Watermark Global plc to find a solutionVarious treatment options

were then investigated and pilot plants operated to determine the

best method of cleaning this water in a self-sustainable way

Feasibility studies have indicated that treating the Western Basin

water which amounts to 15ML per day would not be sustainable

The Wits Basin four compartments Centurion

FAR WEST BASIN

WEST RAND BASIN

Hillshaven

Randfontein

Oberholzer Carletonville

Doornfontein Lenasia

Grasmere

Roodepoort

Krugersdorp

Magaliesburg

Soweto

Sandton

Johannesburg

Randburg

Benoni

Germiston

Alberton

Halfway House

Kempton Park

Heidelberg

Bapsfontein

Putfontein

Brakpan

Nigel

Vosterskroon

Kwa-Thema

CENTRAL RAND BASIN EAST RAND BASIN

The Village

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 41: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 39

DRDGOLD Sustainable Development Report 2009 39

Western Basin

Existing infrastructure New infrastructure

East Chamdor Shaft

ERPM South West Vertical Shaft

DRD4 Shaft

Grootvlei

No 3

Central Basin

WUCrsquos practical and sustainable solution

Eastern Basin

and that a minimum quantity of 75ML per day would be required

to achieve the economies of scale required

However by combining this water with that of the Central (60ML

per day) and Eastern (75ML per day) basins of the Witwatersrand

goldfields which have similar water problems an economically

viable water treatment plant could be established Studies have

indicated the best site for the plant is the currently disused High

Density Separation (HDS) water treatment plant at ERPM Funding

for the plant will come from various interested investors

The WUC water plant proposal has been submitted to the

various regulators for approval Indications are that the plant could

be constructed in 12 months after the necessary approvals

are received

As an interim measure existing water treatment plants at Harmony

and Mogale Gold treat the decant water and then discharge it into

the Tweelopies Spruit However these plants can only partially treat

the water by correcting the degree of acidity or alkalinity (pH) and

removing heavy metals The partially treated water still has high

sulphate levels of around 2 600 milligrams per litre (mgL)

A pipeline connecting the Western and Central basins has

been proposed to stop the discharge of any polluted water until

the WUC plant is commissioned This proposal is awaiting

regulatory approval

Central Basin

ERPM which is situated in the area of the Central Basin stopped

pumping water from underground on 6 October 2008 The

underground mining area has been isolated from this water by

means of plugs and a water barrier pillar

The water in the Central Basin is currently rising at a rate of

approximately 07 metres (m) per day and at the time of writing

was 780m below surface If the Western Basin water is allowed to

be pumped into the Central Basin the rate would increase to

approximately 09m per day

In order to protect the ground water this polluted underground

water cannot be allowed to rise higher than 150m below surface

ERPM Central Rand Gold (CRG) and West Wits Mining have formed

a Section 21 company the Central Basin Environmental

Corporation (CBEC) to investigate methods of dealing with this

water The treatment plant proposed by WUC is the only

sustainable long-term solution to treating this water

Various options to pump the water to surface are being considered

One option which CRG is looking at is that of pumping from below the

150m mark to protect its resources The installation of submersible

pumps at ERPMrsquos South West Vertical Shaft from surface to 150m

below surface is another option The cost of this installation is

approximately R66 million of which according to an apportionment

model undertaken by ground engineering and environmental services

consultants Golder and Associates ERPM may have to contribute 17

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 42: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 40

Product

DRDGOLD Sustainable Development Report 2009 40

Environmental performance (continued)

WUCrsquos recommended retreatment option

CSIRrsquos Alkali-Barium-Calcium process

Acid mine drainage

Calcium Barium hydroxide carbonate

Neutralisation

stage

Recycled

Sulphate

removal

Recycled

Metal hydroxide

sludge

Phase 1 ndash existing tailings facility Phase 2 ndash conversion to by-products

Thermal by-

product

recovery

Elemental sulphur

for sale

Grey water

for industrial use

Filtration

Disinfection

Quality control

Drinking water

to Rand Water

After the commissioning of the pumping infrastructure WUC

would take over all operating costs This forms part of the closure

strategy for these mines

Resource utilisation DRDGOLD is committed to using natural resources carefully and to

reducing waste wherever possible

Materials usage in 2009

Cyanide

Hydrochloric acid

Caustic soda

Lime

Grinding mediasteel

Carbon

Poly fuelwaxy fuel

Rock processed (underground and surface)

Slime processed

Sand processed

Tonnes

4 380

1 707

1 694

50 854

5 652

730

582

1 430 000

12 918 606

1 474 192

DRDGOLD uses a substantial amount of cyanide in the gold

recovery process ndash 4 380 tonnes in 2009 (2008 6 240 tonnes) ndash

and recognises that its use poses a significant risk Energy and

chemicals company Sasol supplies cyanide to DRDGOLDrsquos

operations The company follows Sasolrsquos special procedures for the

handling of cyanide once it has taken delivery of a consignment

The correct handling of cyanide forms part the safety training for

employees working in the gold plant

Energy usage The group has called in a number of companies to look at ways in

which energy can be saved or used more efficiently at its operations

To save on the consumption of direct energy Blyvoor is moving

from using diesel locomotives to more energy efficient battery

operated locomotives

DRDGOLD purchases electricity from Eskom Several projects have

been implemented with respect to reducing the consumption of

indirect energy These include the following

a control system that switches geysers off during peak times at

all houses in the mine villages at Blyvoor

changing to energy efficient light bulbs at Blyvoor

buying new energy efficient motors instead of rewinding

motors under 22 kilowatts (kW) and

upgrading of hot water calorifiers at ERPMrsquos change houses

Projects that are currently being undertaken include

installing prepaid electricity meters in all houses at Blyvoor

installing prepaid meters in the DRD village and

investigating the use of compressed air generation at the

operations Currently this is one of the biggest consumers of

electricity and the investigation will determine whether savings

can be effected by changing to hydraulics for example

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 43: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 300 PM Page 41

DRDGOLD Sustainable Development Report 2009 41

Direct energy consumption 2009 Operationentity Diesel (L) Petrol (L) Waxy fuel (L) Poly fuel (L) Kilometres

claimed by

employees

Blyvoor 1 621 156 73 124 269 816 399 888 327 066

Crown 1 458 176 ndash ndash ndash 253 743

ERPM 40 111 ndash ndash ndash 64 509

ErgoGold 21 023 ndash ndash ndash 23 642

DRD 183 258 ndash ndash ndash ndash

Corporate office ndash ndash ndash ndash 260 109

Total 3 323 724 73 124 269 816 399 888 929 069

The only mines pumping water from underground during the year

under review were Blyvoor and ERPM with pumping ceasing at the

latter operation on 6 October 2008 Blyvoor made adjustments to

its schedule in order to reduce the power used during peak times by

9 megawatts (MW)

Indirect energy consumption 2009 Operation

Blyvoor

Crown

ERPM

ErgoGold

DRD

Total

Electricity consumption (MWh)

421 631

205 416

225 152

33 521

7 898

893 618

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

NO

x em

issi

ons

Indi

rect

CO

2 em

issi

ons

Dire

ct C

O2

emis

sion

s20

09

2009

20

09

Greenhouse gas emissions DRDGOLD recognises that climate change presents a risk to its

operations because of regulatory compliance and the costs Blyvoor

associated with increased taxes usage caps and tariff increases Crown

While South Africa has not been a signatory to the Kyoto Protocol ERPM

and does not have any specific legislation in place relating to ErgoGold

greenhouse gas (GHG) emissions it is likely that the countryrsquos Corporate

policies (and potentially legislation) will be guided by ongoing DRD

international climate change talks and that post-2012 regulations

will be imposed

DRDGOLD has considered risks to the company posed by climate

and those to local communities relating to

water scarcity and rising water tariffs

limited availability of electricity and rising tariffs

floods and increasing precipitation (which could have an

impact on surface operations) Blyvoor food and water scarcity and Crown an increase in disease which could have an impact on ERPMemployees and communities ErgoGold

Corporate During 2009 DRDGOLD engaged an external consultant to DRDundertake its first GHG emissions benchmarking exercise related to

scope 1 (direct) and scope 2 (indirect) emissions

Direct emissions of carbon dioxide (CO2) by DRDGOLD include all the emissions from liquid and waxy fuel consumed on site

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 44: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 42

Measure Unit Blyvoor Crown ERPM ErgoGold Corporate DRD

DRDGOLD Sustainable Development Report 2009 42

Environmental performance (continued)

Summary table of emissions 2009 Total

10 110

895 928

862

906 901

3 506

6 503

0

49

0

188

Direct CO2 emissions tonnes 5 764 3 723 102 54 0 468

Indirect CO2 emissions tonnes 486 008 222 971 137 246 40 225 0 9 478

Travel emissions tonnes 739 54 14 0 56 ndash(1)

Total CO2 emissions tonnes 492 511 226 748 137 363 40 279 56 9 945

NOx emissions(2) tonnes 1 889 916 505 149 0 47

SOx emissions(2) tonnes 3 527 1 621 994 291 0 69

SO2 emissions tonnes 0 0 0 0 0 0

Carbon monoxide emissions tonnes 24 22 1 0 0 3

Methane emissions tonnes 0 0 0 0 0 0

Particulate emissions(2) tonnes 101 50 26 8 0 3

SOx

emis

sion

s20

09

(1) No data

(2) Include some Eskom emissions which would count as indirect emissions

Blyvoor

Crown

ERPM

ErgoGold

Corporate

DRD

excluding travel kilometres claimed by employees By far the

greatest contributor to this is the diesel used by the operations

Indirect CO2 refers to emissions generated in the production of the

electricity that DRDGOLD consumes DRDGOLD sources its

electricity from Eskom and this is generated almost entirely from

fossil fuels (coal)

Emissions of nitrous oxide (NOx) primarily reflect direct and

indirect emissions from diesel and electricity

Sulphur dioxide (SOx) emissions primarily reflect direct and indirect

emissions from diesel and electricity

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 45: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 43

DRDGOLD Sustainable Development Report 2009 43

Land management closure

and biodiversity management

Land management Blyvoor Crown and ERPM manage 4 506 1 942 and 1 469 hectares

respectively The land disturbed by mining activities is 4 023

hectares in the case of Blyvoor and 688 hectares in the case of

ERPM Crown has cleared 239 hectares of land while 206 hectares

have been cleared and developed or are in the process of being

developed

Crown cleared and handed 4L8 site back to the landowner Targets

for 2010 are to complete sites 3L17 and 3L19 and hand them

back to the landowners A total of 17 hectares of vegetation is

planned for the Crown Tailings Complex to control dust for the

2010 World Cup

ERPM continues with the rehabilitation of a redundant railway

embankment

Sinkholes

There were nine sinkholes which mostly occurred because of water

leaks recorded on Blyvoor property during the year all of which

have been filled and rehabilitated A structure is in place for the

reporting of water leaks and remedial action is taken immediately

Closure Closure plans are in place at all operations as required in terms of

the new EMPs The closure plan for DRD mine is currently being

updated and the rehabilitation of surface areas continues with the

goal of achieving closure

The closure liabilities associated with environmental issues for each

operation are assessed on an annual basis The amounts calculated

according to the official Department of Mineral Resources

guidelines as at June 2009 are set out in the table below

The operations have trust funds to meet the final closure liability

and DRDGOLD makes annual contributions to the environmental

trust fund in place at each operation (see table) All the operations

currently have shortfalls in terms of meeting their closure liabilities

DRDGOLD has proposed to the Department of Mineral Resources

that apart from Blyvoor these are covered through a financial

guarantee This proposal is under investigation In the case of

Blyvoor the proposal is that revenue from the No 2 Shaft rock

dump be ring-fenced This would result in this operationrsquos liabilities

being fully funded To date the DMR has not approved either of

these funding proposals

Biodiversity No sites at Blyvoor Crown ERPM or the discontinued operations of

DRD West Wits or West Rand Consolidated enjoy statutory

protection or are considered to be areas of high biodiversity The

exception is the Ergo Joint Venturersquos Daggafontein Tailings Complex

(see overleaf) There are certain instances where DRDGOLD applies

for exemption with respect to alien vegetation For example blue

gum trees are not indigenous but at some operations they are

found near tailings dams where they absorb polluted water and act

as a windbreak In such a case the company will prevent further

spreading but will not eradicate the trees as their benefits outweigh

any problems associated with their growth

Operation Closure liabilities Trust funds

R R R R

Blyvoor

122 175 819

67 204 644

66 629 210

41 236 056

45 961 402

343 207 131

61 283 274

47 350 753

30 519 947

18 577 649

20 813 000

17 905 241

135 166 590

26 906 119

Crown 104 993 605 37 159 250

ERPM 62 315 785 12 835 761

DRDRand Leases (1) 27 303 498 18 188 099

West WitsWest Rand Consolidated (1) 36 547 950 15 678 020

Total 292 444 112 110 767 249

(1) Discontinued operations

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 46: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 44

Environmental performance (continued)

DRDGOLD Sustainable Development Report 2009 44

Daggafontein Tailings Complex

The Ergo Joint Venturersquos Daggafontein Tailings Complex is situated in the immediate

vicinity of the Blesbok Spruit a fresh water wetland that falls under the Ramsar

Convention on Wetlands of International Importance especially as Waterfowl Habitat

Ramsar site No 343 is situated at 26ordm 17rdquo South and 28ordm 30rdquo East at an altitude of

1 600 metres above mean sea level

Now dormant and currently being rehabilitated the 460-hectare Daggafontein Tailings

Storage Facility (TSF) is adjacent to the Blesbok Spruit This stream is situated in

Gauteng Province and covers an area of approximately 1 858 hectares The site is

situated approximately 3 kilometres east of the town of Springs on the East Rand The

towns of Boksburg Benoni and Brakpan lie to the north-west with Nigel to the south

It is important to note however that the activities associated with the Daggafontein

TSF do not take place within the protected area or in an area of high biodiversity value

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 47: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 45

DRDGOLD Sustainable Development Report 2009 45

Potential impact on the environment When considering the potential impact of the Daggafontein TSF on the Blesbok Spruit Ramsar site it must be viewed in context The primary cause of the degradation of the Ramsar site is an operating mine not associated with DRDGOLD which as a result of current dewatering activities continues to discharge polluted water into the lsquospruitrsquo and associated wetland environment There are however numerous other current and historical activities in the area including industry and urban development which affect this site

These impacts are manifested primarily in two ways Firstly water quality has deteriorated resulting in a decline in the abundance and diversity of aquatic animal species as well as loss of species at certain trophic levels Secondly the seasonal fluctuation in water levels in the wetland has been replaced by permanent flooding Situated in a climatic region with summer rainfall the system originally displayed a natural regime of high summer flows and reduced water levels in winter This dynamic fluctuation in water levels maintained habitat diversity and ecosystem productivity

The result of the current high water table levels together with large concentrations of nutrients derived from domestic and industrial discharges upstream of the wetland is severe Phragmites reed encroachment that has brought about a decline in habitat diversity This loss of the dynamic habitat mosaic has induced a corresponding decline in the diversity of birds and other species depending on the wetland for feeding roosting and breeding sites

The anticipated significant impacts on diversity on the Ramsar site from the TSF are

water quality in the Bleskbok Spruit destruction or degradation of wetland habitat due to windborne dust pollution and acid mine drainage and a reduction in species diversity

Managing biodiversity risks The following actions are being taken by DRDGOLD to manage the biodiversity risks outlined above

rehabilitation and vegetation of the Daggafontein TSF to mitigate the impact of windblown dust and polluted water run-off and soil erosion dust suppression on access roads regular maintenance of catchment paddocks solution trenches and silt traps to retain polluted water (containing pH sulphate levels heavy metal concentrations) within the confines of the TSF compliance with the requirements of the DRDGOLD Waste Management Strategy which forms part of the EMP as it pertains to all sources of waste associated with activities at the TSF and a control programme to eradicate and manage the propagation of alieninvasive plant species ndash Cortaderia Jubata Nicotiana Glauca Pennisitem

Setaceum and Datura Stramnonium among others ndash

on the TSF and surrounding disturbed areas

Future of the Ramsar site An impact prediction has been completed to assess the

potential impact of the Daggafontein TSF Although there is

a definitive pollution plume associated with the TSF it is only

one of many factors affecting the Ramsar site and a detailed

assessment is required to accurately determine the

cumulative impact of all mining industrial and other

development activities in the area

Restoring habitats within the Ramsar site are confined at

present to the eradication of alien species The principal

exotic plant occurring within the wetland area the South

American Water Fern (Azolla Filiculoides) is not associated

with the TSF The emphasis should be on protecting the

existing habitats with the co-operation and collaboration of

all stakeholders Restoring the habitats to their original

pristine and undisturbed state will not be possible given the

cumulative effect of all activities in this urbanised and

industrialised area

However further degradation and deterioration of the

current existing biophysical environment within the site can

be addressed if all parties implement mitigation and

management actions to minimise their impact on this

protected area This will serve to minimise the overall

collective impact

A detailed assessment of the impact of the Daggafontein TSF

on the Blesbok Spruit Ramsar site was conducted by

AngloGold Ashanti The results of the assessment need to be

re-evaluated and a detailed bio-monitoring and a fauna and

flora assessment conducted to verify the validity and

applicability of previous results and assess the current status

of biodiversity in the area

Endangered species The Blesbok Spruit has no critically endangered or

endangered species from the Red List of Threatened Species

of the International Union for Conservation of Nature and

Natural Resources (IUCN) It has one species ndash the Grass Owl

(Tyto Capensis) ndash in the lsquovulnerablersquo category and seven in

the lsquonear threatenedprotected category as follows

Yellowbilled Stork (Mycteria Ibis)

Greater Flamingo (Phoenicopterus Ruber)

Lesser Flamingo (Phoenicopterus Minor)

Caspian Tern (Hydroprogne Caspia)

African Marsh Harrier (Circus Ranivorus)

Reed Buck (Redunca Arundinum) and

Spotted Necked Otter (Lutra Maculicollis)

Of least concern in terms of extinction are 59 species of

water birds and the Water Mongoose (Atilax Paludinosus)

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 48: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 46

DRDGOLD Sustainable Development Report 2009 46

Reporting in line with GRI This is the second year that DRDGOLD has produced a sustainable development report This report has been compiled in alignment with the

principles of the Global Reporting Initiatives (GRI) G3 guidelines For this report the company has declared a C level of reporting in accordance with

GRIrsquos requirements for a self-declaration in this respect It is the companyrsquos intention to incrementally improve the level of reporting on

sustainability matters including seeking external assurance for the coming yearrsquos report

Reporting in line with GRI ndash C level of reporting Pages

G3 profile disclosures 1 Strategy and analysis

11 Statement by decision-maker 6-7

12 Description of key impacts risks and opportunities Throughout this report

2 Organisational profile

21 ndash 210 Information on the company 2-3

3 Report parameters

31 ndash 34 Report profile IFC

35 ndash 311 Report scope and boundary IFC

312 Content index 46-47

313 Assurance NR

4 Governance commitments and engagement

41 ndash 410 Governance 8-9

411 ndash 413 Commitments to external initiatives NR

414 ndash 417 Stakeholder engagement 28

G3 performance indicators Economic performance indicators

Management approach 4-5 10-13

EC1 Direct economic value generated and distributed 12

EC2 Financial implications and other risks and opportunities

for the organisationrsquos activities due to climate change 41

EC3 Coverage of the organisationrsquos defined benefit plan

obligations NR

EC4 Significant financial assistance received from government 12

EC6 Policy practices and proportion of spending on

locally-based suppliers at significant locations of operation 13

EC7 Procedures for local hiring and proportion of senior

management hired from local community at significant

locations of operation NR

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial in-kind or pro-bono engagement NR

Environmental performance indicators

Management approach 34-36

EN1 Materials used by weight or volume 40

EN2 Percentage of materials used that are recycled NR

EN3 Direct energy consumption by primary energy source 41

EN4 Indirect energy consumption by primary source 41

EN8 Total water withdrawal by source 37

EN11 Location and size of land owned leased managed in or

adjacent to protected areas and areas of high bio-diversity

value outside protected areas 43

EN12 Description of significant impacts of activities products

and services on biodiversity in protected areas and areas

of high biodiversity value outside protected areas 44-45

EN16 Total direct and indirect greenhouse gas emissions

by weight 42

EN17 Other relevant indirect greenhouse gas emissions by weight 42

EN20 NOx SOx and other significant air emissions by type

and weight 42

EN21 Total water discharge by quality and destination 38

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 49: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 47

DRDGOLD Sustainable Development Report 2009 47

Environmental performance indicators

EN27 Percentage of products sold and their packaging

materials that are reclaimed by category NA

EN28 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with

environmental laws and regulations 35-36

Labour practices and decent work

Management approach 22-23

LA1 Total workforce by employment type employment

contract and region 23

LA2 Total number and rate of employee turnover by

age group and region 23

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time 24-25

LA4 Percentage of employees covered by collective bargaining

agreements 23

LA5 Minimum notice periods regarding operational changes

including whether it is specified in collective agreements 23-24

LA5 Percentage of total workforce represented in formal

joint-management health and safety committees that

help monitor and advise on occupational health and

safety programmes 15

LA7 Rates of injury occupational diseases lost days and

absenteeism and number of work-related fatalities

by region 15-17

LA8 Education training counselling prevention and

risk-control programmes in place to assist workforce

members their families or community members

regarding serious disease 18-20

LA10 Average hours of training per year per employees

by employee category 24

LA13 Composition of governance bodies and breakdown of

employees per category according to gender age group

minority group membership and other indicators

of diversity 23-24

LA14 Rate of basic salary of men to women by employee

category 24

Human rights

Management approach 23

HR4 Total number of incidents of discrimination and

actions taken NR

Society

Management approach 28

SO1 Nature scope and effectiveness of any programmes and

practices that assess and manage the impacts of

operations on communities including entering operating

and exiting 29 and 32

SO4 Actions taken in response to incidents of corruption 8-9

SO5 Public policy positions and participation in public

policy development and lobbying 10

SO8 Monetary value of significant fines and total number of

non-monetary sanctions for non-compliance with laws

and regulations NA

NR = Not reported

NA= Not applicable or relevant

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 50: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 48

24

23-24

DRDGOLD Sustainable Development Report 2009 48

Compliance with the Mining Charter No Description Compliance Pages

1 Human resource development

Has the company offered every employee the opportunity to be functionally literate

and numerate by the year 2005 and are employees being trained Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Has the company implemented career paths for HDSA employees

including skills development plans

Has the company developed systems through which empowerment groups can

be mentored

2 Employment equity

Has the company published its employment equity plan and reported on its annual

progress in meeting that plan

Has the company established a plan to achieve a target for HDSA participation in

management of 40 within five years and is it implementing the plan

Has the company identified a talent pool and is this being fast tracked

Has the company established a plan to achieve the target for the participation of

women in mining of 10 within the five years and is it implementing the plan

3 Migrant labour

Has the company subscribed to government and industry agreements to ensure

non-discrimination against foreign migrant labour

4 Mine community and rural development

Has the company co-operated in the formulation of integrated development plans and

is the company co-operating with government in the implementation of these plans

for communities where mining takes place and for major labour-sending areas

Has there been effort on the side of the company to engage the local mine community

and communities in major labour-sending areas

5 Housing and living conditions

For company provided housing has the mine in consultation with stakeholders

established measures for improving the standard of housing including the upgrading

of hostels conversion of hostels to family units and promoted home ownership

options for mine employees 25 and 29

Companies will be required to indicate what they have done to improve housing show

a plan to progress the issue over time and whether such a plan is being implemented 25 and 29

For company-provided nutrition has the mine established measures for

improving the nutrition of mine employees Companies will be required

to indicate what they have done to improve nutrition and show a plan to

progress the issue over time and whether such a plan is being implemented

6 Procurement

Has the mining company given HDSAs preferred supplier status

Has the mining company identified current levels of procurement from

HDSA companies in terms of capital goods consumables and services

Has the mining company indicated a commitment to progress of procurement from

HDSA companies over a three- to five-year time frame in terms of capital goods

consumables and services and to what extent has the commitment been implemented

7 Ownership and joint ventures

Has the mining company achieved HDSA participation in terms of ownership for

equity or attributable units of production of 15 in HDSA hands within five years

and 26 in 10 years

8 Beneficiation

Has the mining company identified its current level of beneficiation

Has the mining company established its baseline level of beneficiation and

indicated the extent that this will have to be grown in order to qualify for an offset

9 Reporting

Has the company reported on an annual basis its progress towards

achieving its commitments in its annual report

23-24

23-24

23-24

23

24

28-29

28-32

13

13

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 51: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 49

DRDGOLD Sustainable Development Report 2009 49

Glossary of terms acronyms and abbreviations ABET Adult Basic Education and Training

AIDS Acquired Immune Deficiency Syndrome

AMD Acid mine drainage

ART Anti-retroviral therapy

BEE Black economic empowerment

Blyvoor Blyvooruitzicht Gold Mining Company Limited

CIL Carbon-in-leach a gold recovery process

CIP Carbon-in-pulp a gold recovery process

COPA Community of Practice of Adoption

Crown Crown Gold Recoveries

dBA Decibels ndash unit of sound measurement

DMR Department of Mineral Resources

DRD Durban Roodepoort Deep (discontinued operation)

DSIFR Dressing Station Injury Frequency Rate

DWEA Department of Water and Environmental Affairs

EBDA Ekurhuleni Business Development Academy

EC Electrical conductivity

EIA Environmental Impact Assessment

EMP Environmental Management Programme

Ergo Ergo Mining (Pty) Limited

ErgoGold Formerly known as the Elsburg Gold Mining Joint Venture

ERPM East Rand Proprietary Mines Limited

FIFR Fatal Injury Frequency Rate

FOG Fall of ground

GHG Greenhouse gas

GN Government notice

GRI Global Reporting Initiative

HDSA Historically disadvantaged South African

HIV Human Immuno-deficiency Virus

JLP Junior Leadership Programme

kW Kilowatt

LED Local Economic Development

LTIFR Lost Time Injury Frequency Rate

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 52: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 50

DRDGOLD Sustainable Development Report 2009 50

Glossary of terms acronyms and abbreviations (continued)

MBOD Medical Bureau for Occupational Diseases

mgL Milligrams per litre

MHSC Mine Health and Safety Council

Mining Charter Broad-based Socio-economic Empowerment Charter for the South African mining industry

ML Million litres

MPRDA Mineral and Petroleum Resources Development Act 28 of 2002 which came into effect in South Africa

on 11 May 2004

mSm milliSiemens per metre

MW Megawatts

MWh Megawatt hours

NIHL Noise-induced hearing loss

NNR National Nuclear Regulator

NOx Nitrous oxide

NUM National Union of Mineworkers

OLD Occupational lung disease

pH Measure of the acidity or alkalinity of a solution

RIFR Reportable Injury Frequency Rate

RPO Radiation protection officer

Sarbanes-Oxley Act The Sarbanes-Oxley Act came into force in July 2002 in the United States and introduced major

changes to the regulation of corporate governance and financial practice It is named after Senator Paul

Sarbanes and Representative Michael Oxley who were its main architects and it set a number of nonshy

negotiable deadlines for compliance

TB Tuberculosis

Transco Transformation and Sustainable Development Committee

TSF Tailings storage facility

VCT Voluntary counselling and testing

WUC Western Utilities Corporation

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 53: DRDGOLD sustainable development report 2009

DRD SDR2009_25Nov 112509 301 PM Page 51

_________________________________________________________

_________________________________________________________ ____________________________________________________

____________________________________________________

____________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

DRDGOLD Sustainable Development Report 2009 51

Feedback form DRDGOLD would be grateful for your feedback and invites you to

complete this feedback form and fax or email it to

Barry de Blocq

Fax +27 11 476 2637

E-mailbarrydeblocqzadrdgoldcom

1 Personal details

Name ___________________________________________________

Organisation ____________________________________________

Tel ___________________________ Fax _______________________

Email address ____________________________________________

Postal address ____________________________________________

2 What is your interest in or association with

DRDGOLD

Employee Analyst Shareholder

Journalist Community member

Non-governmentalcommunity-based organisation

Student Business partner Supplier

Government representative

Other ndash please specify __________________________________

3 How did you become aware of our report

Delivered or posted to you (printed copy)

Email link sent to you

Through the media

Other ndash please specify

4 How did you view the report

Website version Printed version

5 Have you been aware of or had access to

DRDGOLDrsquos previous reports

Yes No

6 How would you describe the report

Printed version

Too much information

Not enough information

Website version

Too much information

Not enough information

7 What are your areas of interest in this report

Economic performance

Environmental performance

Social performance

Employment Community

Safety and Health HIV amp AIDS

8 Did you read the message from the CEO

Yes No

9 Were DRDGOLDrsquos sustainability development

issues and how they are being dealt with clearly

communicated in this report

Yes No

10 Did you use the Global Reporting Initiative

(GRI) index

Yes No

11 Do you have any other comments on the report

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 54: DRDGOLD sustainable development report 2009

DRD SDR2009_24NovCover 112509 309 PM Page e

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 55: DRDGOLD sustainable development report 2009

DRD SDR2009_24NovCover 112509 305 PM Page c

Contact details and administration DRDGOLD offices Registered and Corporate

DRDGOLD Limited

EBSCO House 4

299 Pendoring Avenue

Blackheath

Randburg

2195

South Africa

PO Box 390

Maraisburg

1700

South Africa

Tel +27 11 219 8700

Fax +27 11 476 2637

DRD (Offshore) Limited

1415 Mount Havelock

Douglas

IM1 2QG

Isle of Man

Auditors KPMG Inc

Bankers The Standard Bank of South Africa Limited

Duncan Lawrie Private Bankers (DRD Offshore)

Share transfer secretaries Link Market Service South Africa (Pty) Limited

11 Diagonal Street

Johannesburg

2001

Republic of South Africa

Tel +27 630 0800

Fax +27 11 834 4398

United Kingdom registrars and bearer office CAPITA IRG plc

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

United Kingdom

Tel +44 20 870 162 3100

Fax +44 20 8639 2487

United Kingdom secretaries St Jamess Corporate Services Limited

6 St Jamess Place

London SW 1A 1NP

United Kingdom

Tel +44 20 7499 3916

Fax +44 20 7491 1989

French agents

CACEIS Corporate Trust

14 rue Rouget de Lisle

92862 Issy-les-Moulineaux

Cedex 9 France

Tel +33 1 5530 5900

Fax +33 1 5530 5910

Australian corporate registry

Computershare Investor Service (Pty) Limited

Level 2 45 St Georges Terrace

Perth

Western Australia 6000

Australia

Australian agent

Sygnum Financial Services

62 Colin Street West Perth

Western Australia 6005

Australia

Tel +61 8 9323 2000

Fax +61 8 9323 2033

Depositary bank

The Bank of New York Mellon

101 Barclay Street

New York 10286

United States of America

Tel +1 212 815 8223

Fax +1 212 571 3050

Investor relations

James Duncan

Email jamesraircoza

Website

wwwdrdgoldcom

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom

Page 56: DRDGOLD sustainable development report 2009

DRD SDR2009_24NovCover 112509 305 PM Page d

wwwdrdgoldcom