drdgold weathers the ‘perfect storm’ of challenges · drdgold weathers the ‘perfect storm’...

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ISSUE 14 • December 2009 Letters to the Editor This is your newsletter and we want to hear from you. Letters or questions can be sent to your HR manager or faxed to Memory Johnstone at (011) 880-3788. A QUARTERLY NEWSPAPER FOR THE PEOPLE OF DRDGOLD 02 Blyvoor: Planting for the future 03 Junior Leadership Programme saves company money 04 Crown commends commitment Let’s Talk Asikhulume Survival through perseverance DRDGOLD weathers the ‘perfect storm’ of challenges O n 10 June, Blyvoor achieved one million fatality-free shifts. In honour of this achievement, Blyvoor hosted a commemoration ceremony on the evening of 25 June, attended by management, members of the DRDGOLD board and delegates from organised labour. Collie Russouw, executive officer: underground operations and former general manager of Blyvoor, commented, “It is a special honour for me to stand here as a proud member of this team and be part of another excellent achievement by the employees of this mine. I was also delighted to hear that on 24 June we achieved 2.4 million gravity fall-of-ground fatality-free shifts.” DMR delegate Max Madubani also addressed the audience. He congratulated the workforce on the achievement and also reminded employees that they should be committed to safety: “Safety procedures are in place for a reason and must be followed accordingly because seismicity is not going to go away. We must all think about the consequences of our actions before making a decision in the workplace. Never disregard your knowledge and experience.” Max went on to highlight the reduction in the incidence of fatalities in Gauteng from 38 in 2008 to 15 this year. Although still a high number, the statistics equate to almost a 60% improvement. Blyvoor general manager Owen O’Brien commented on the mine’s legacy of safety, saying: “I am extremely proud to be a part of the Blyvoor team and this significant achievement. Blyvoor has been a leader in mining safety since it began sinking operations in 1937. Things have changed somewhat since then, but in the case of safety, it has changed for the better. I must reiterate our view on safety – nothing is so important that it cannot be done safely.” The ceremony concluded with the handover of a one million fatality-free shifts trophy from the DMR to Blyvoor management. Blyvoor takes safety seriously Looking back at the many challenges we faced this year, the drop in the gold price, higher costs of electricity and lower gold production than what we forecast, each of which could have sunk our business, it was really only through the perseverance of the people of DRDGOLD that we came through the year on our feet. This year, much of our energy went into survival, and some of the things we had to do, to ensure that control of our business strategies did not slip from our hands, caused uncertainty and doubts in the hearts and minds of our people. Going into the New Year though, I sense that the tide may be turning. The support for the ‘Save Blyvoor – Siyanqoba Blyvoor’ campaign has been very encouraging, and I want to thank and congratulate Blyvoor for showing a 168% increase in tonnes milled, a 116% increase in kilograms produced, and a 47% decrease in costs in Rand per kilogram terms – all during a time when the mine is under judicial management. This is a remarkable achievement, and again demonstrates the “never say die” attitude of our people. Whilst ErgoGold has been very good at delivering material to its plant right from the outset, its gold recoveries are consistently trending in the right direction. Three years ago a new relationship with Mintails enabled us, at a time when DRDGOLD operations here in South Africa had very limited resources, to launch the Ergo project and expand our surface circuit to create additional capacity and establish the synergies that we believe will significantly increase the life of our surface operations. We recently established another new relationship with Zondwa Mandela’s Aurora Empowerment System, this time in respect of our underground mine, Blyvoor. Aurora is, at a time when our own resources had become stretched, investing a substantial amount of capital into the acceleration of underground development at Blyvoor. I have every reason to believe that this relationship will be as beneficial to our company as the Mintails relationship was when we launched Ergo, and I urge every one of you to work hard at being a good partner and doing your bit to ensure that Aurora’s investment in Blyvoor is a successful one. Mining has pretty much been pushed off its pedestal of preference in South Africa and now has to handle what local and global economic forces throws at it, just like every other industry. Perhaps in some small way our model of finding the right partner for the right project may cause others to also consider greater co-operation between mining companies and thus help to restore our industry as the dominant force in the local economy. The Americans have a tradition to give thanks at the end of every year. Families all over America come together to reflect on the things they are be thankful for. It is a wonderful tradition because it is so easy to wallow in the everyday doom and gloom that life forces on us, and we sometimes don’t notice that the sun might be shining outside. I want to conclude my message this year by sharing with you the things that I am thankful for. I am very thankful that, at the time of writing this, no-one died during the course of his work at our mines and operations this year. I am thankful that we came through some very tough times and that we are now positioned to tackle the new year from a much improved platform. I am thankful for the hard work and perseverance of every DRDGOLD employee in keeping things together this year. I am especially grateful to the families of every colleague who supported and encouraged their spouses during the year. Next year, I am confident that we will again be able to give thanks for a safe and prosperous year. May I use this opportunity to wish you and your families a happy and peaceful holiday season. Let us start 2010 refreshed, re-focused and encouraged by the many things with which we continue to be blessed. by Niël Pretorius, CEO, DRDGOLD How we performed in the September quarter DRDGOLD’s gold production in the September quarter was 1% lower than in the June quarter, an increase in gold from surface sources making up for lower underground production. Gold production from surface sources – 10% higher at 38 870oz – comprised 68% of the quarter’s total, and reflected a 181% increase in ounces from ErgoGold; a 6% increase in ounces from Crown; and a 35% increase in ounces from ERPM, which is now a surface retreatment-only operation. Underground gold production – for which the underground operations of Blyvoor are now the only source - was 14% lower. This was due to: the 11 production shifts lost because of NUM strike action; the continuing negative effect of the damage caused by seismicity to high-grade panels damaged by seismicity at Blyvoor in June; and a shift in Main Reef mining from the eastern side of Blyvoor’s No 5 Shaft to the western side. DRDGOLD reported a loss of R63.3 million for the September quarter compared with a profit of R42.6 million in the June quarter. This was because: gold production was lower; the gold price received for every kilogram of gold produced was 2% lower at R239 098; and costs rose by 3% due to the higher cost of electricity and wage increases. Pictured above is Blyvoor general manager, Owen O’Brien (centre left) and former production manager Jacques Kleinsmith congratulating the team on its significant safety achievement

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Page 1: DRDGOLD weathers the ‘perfect storm’ of challenges · DRDGOLD weathers the ‘perfect storm’ of challenges O n 10 June, Blyvoor achieved one million fatality-free shifts. In

I S S U E 1 4 • D e c e m b e r 2 0 0 9

Letters to the EditorThis is your newsletter and we want to hear from you. Letters or questions can be sent to your HR manager or faxed to Memory Johnstone at (011) 880-3788.

A Q U A R T E R LY N E W S PA P E R F O R T H E P E O P L E O F D R D G O L D

02 Blyvoor: Planting for the future 03 Junior Leadership Programme

saves company money 04 Crown commends commitment

Let’s TalkAsikhulume

Survival through perseveranceDRDGOLD weathers the ‘perfect storm’ of challenges

On 10 June, Blyvoor achieved one

million fatality-free shifts. In honour

of this achievement, Blyvoor hosted a

commemoration ceremony on the evening of

25 June, attended by management, members of

the DRDGOLD board and delegates from

organised labour.

Collie Russouw, executive officer: underground

operations and former general manager of

Blyvoor, commented, “It is a special honour for

me to stand here as a proud member of this

team and be part of another excellent

achievement by the employees of this mine. I

was also delighted to hear that on 24 June we

achieved 2.4 million gravity fall-of-ground

fatality-free shifts.”

DMR delegate Max Madubani also addressed

the audience. He congratulated the workforce

on the achievement and also reminded

employees that they should be committed to

safety: “Safety procedures are in place for a

reason and must be followed accordingly

because seismicity is not going to go away. We

must all think about the consequences of our

actions before making a decision in the

workplace. Never disregard your knowledge

and experience.”

Max went on to highlight the reduction in the

incidence of fatalities in Gauteng from 38 in

2008 to 15 this year. Although still a high

number, the statistics equate to almost a

60% improvement.

Blyvoor general manager Owen O’Brien

commented on the mine’s legacy of safety,

saying: “I am extremely proud to be a part of

the Blyvoor team and this significant

achievement. Blyvoor has been a leader in

mining safety since it began sinking operations

in 1937. Things have changed somewhat since

then, but in the case of safety, it has changed

for the better. I must reiterate our view on

safety – nothing is so important that it cannot

be done safely.”

The ceremony concluded with the handover of

a one million fatality-free shifts trophy from

the DMR to Blyvoor management.

Blyvoor takes safety seriously

Looking back at the many challenges we facedthis year, the drop in the gold price, higher costsof electricity and lower gold production thanwhat we forecast, each of which could havesunk our business, it was really only throughthe perseverance of the people of DRDGOLDthat we came through the year on our feet.

This year, much of our energy went into

survival, and some of the things we had to do,

to ensure that control of our business

strategies did not slip from our hands, caused

uncertainty and doubts in the hearts and

minds of our people.

Going into the New Year though, I sense that

the tide may be turning. The support for the

‘Save Blyvoor – Siyanqoba Blyvoor’ campaign

has been very encouraging, and I want to

thank and congratulate Blyvoor for showing a

168% increase in tonnes milled, a 116%

increase in kilograms produced, and a 47%

decrease in costs in Rand per kilogram terms –

all during a time when the mine is under

judicial management. This is a remarkable

achievement, and again demonstrates the

“never say die” attitude of our people.

Whilst ErgoGold has been very good at

delivering material to its plant right from the

outset, its gold recoveries are consistently

trending in the right direction.

Three years ago a new relationship with

Mintails enabled us, at a time when

DRDGOLD operations here in South Africa

had very limited resources, to launch the Ergo

project and expand our surface circuit to

create additional capacity and establish the

synergies that we believe will significantly

increase the life of our surface operations.

We recently established another new

relationship with Zondwa Mandela’s Aurora

Empowerment System, this time in respect of

our underground mine, Blyvoor. Aurora is, at

a time when our own resources had become

stretched, investing a substantial amount of

capital into the acceleration of underground

development at Blyvoor. I have every reason

to believe that this relationship will be as

beneficial to our company as the Mintails

relationship was when we launched Ergo, and

I urge every one of you to work hard at being

a good partner and doing your bit to ensure

that Aurora’s investment in Blyvoor is a

successful one.

Mining has pretty much been pushed off its

pedestal of preference in South Africa and now

has to handle what local and global economic

forces throws at it, just like every other

industry. Perhaps in some small way our

model of finding the right partner for the

right project may cause others to also

consider greater co-operation between mining

companies and thus help to restore our

industry as the dominant force in the

local economy.

The Americans have a tradition to give thanks

at the end of every year. Families all over

America come together to reflect on the things

they are be thankful for. It is a wonderful

tradition because it is so easy to wallow in the

everyday doom and gloom that life forces on

us, and we sometimes don’t notice that the sun

might be shining outside.

I want to conclude my message this year by

sharing with you the things that I am thankful

for. I am very thankful that, at the time of

writing this, no-one died during the course of

his work at our mines and operations this

year. I am thankful that we came through

some very tough times and that we are now

positioned to tackle the new year from a

much improved platform. I am thankful for

the hard work and perseverance of every

DRDGOLD employee in keeping things

together this year. I am especially grateful to

the families of every colleague who supported

and encouraged their spouses during the year.

Next year, I am confident that we will again

be able to give thanks for a safe and

prosperous year.

May I use this opportunity to wish you and

your families a happy and peaceful holiday

season. Let us start 2010 refreshed, re-focused

and encouraged by the many things with

which we continue to be blessed.

by Niël Pretorius, CEO, DRDGOLD

How we performed in the September quarterDRDGOLD’s gold production in the

September quarter was 1% lower than in the

June quarter, an increase in gold from surface

sources making up for lower underground

production.

Gold production from surface sources – 10%

higher at 38 870oz – comprised 68% of the

quarter’s total, and reflected a 181% increase in

ounces from ErgoGold; a 6% increase in ounces

from Crown; and a 35% increase in ounces from

ERPM, which is now a surface retreatment-only

operation.

Underground gold production – for which the

underground operations of Blyvoor are now the

only source - was 14% lower. This was due to:

the 11 production shifts lost because of NUM

strike action;

the continuing negative effect of the damage

caused by seismicity to high-grade panels

damaged by seismicity at Blyvoor in June; and

a shift in Main Reef mining from the eastern

side of Blyvoor’s No 5 Shaft to the western side.

DRDGOLD reported a loss of R63.3 million for

the September quarter compared with a profit of

R42.6 million in the June quarter. This was

because:

gold production was lower;

the gold price received for every kilogram of

gold produced was 2% lower at R239 098; and

costs rose by 3% due to the higher cost of

electricity and wage increases.

Pictured above is Blyvoor general manager, Owen O’Brien (centre left) and former production manager Jacques

Kleinsmith congratulating the team on its significant safety achievement

Page 2: DRDGOLD weathers the ‘perfect storm’ of challenges · DRDGOLD weathers the ‘perfect storm’ of challenges O n 10 June, Blyvoor achieved one million fatality-free shifts. In

In recognition of its role in the community, and topromote job creation and skills development, DRDGOLDhas launched a hydroponic vegetable growing project atBlyvoor during 2009.

The project is situated right next to the R501 on a section of land which has been cleared and allocatedto farming activities; in addition, D R D G O L D h a scontributed R1 million towards initial start-up costs andwill continue to support the project until it has reached alevel of self-sustainability.

The project is currently equipped with five hydroponictunnels measuring 30 metres by 10 metres each and willsupply the mine hostels and the surrounding Merafong Citycommunity with reasonably priced seasonal vegetablesincluding tomatoes, cucumbers and sweet peppers.

Merafong City councillors have been actively involved inthe development process and will continue to visit the siteon a monthly basis to promote active communityparticipation.

“The project currently employs 11 community members,who have all received theoretical and practical training inhydroponic and plant production at the DICLA trainingcentre, located just outside of Mogale City. Theparticipating community members have been equippedwith the necessary skills to operate and maintain irrigationsystems and maintain the basic water quality, as well asperform basic routine operations in a defined hydroponicscontext during the different vegetable growing periods.

“We are implementing plans to ensure that the projectcontinues to develop into a self-sustaining venture. Once

the hydroponic farming has been fully established, we will

embark on open field cabbage and spinach farming,”

explains head of the properties division at DRDGOLD,

Louis Lamsley, who is overseeing the project.

The first vegetable seeds are to 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.

“Even though the 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 seed,”

concludes Louis.

Supporting Ekurhuleni’s HIV- and AIDS-affected

DRDGOLD has supported the Khotso-Caritas Hospice, whichprovides care and assistance to employees and members of thecommunity infected and affected by HIV/AIDS, since 2002. TheHospice, established by Dr Khotso Ncholo, currently runs threeprogrammes which include: palliative care to terminally illpatients, anti-retroviral treatment (ART) and a children’s daycare centre which provides care to 66 children between the agesof three and six from the surrounding communities.

Situated approximately five kilometres from Carnival City onthe R554 road, the Khotso-Caritas Hospice operates frompremises donated and recently renovated by ERPM. DRDGOLDalso covers the cost of utilities which include water andelectricity and maintenance costs on a monthly basis.

Through support from the Aurum Institute, which is funded byThe United States President’s Emergency Plan for Aids Relief(PEPFAR), the Hospice is able to provide anti-retroviraltreatment to all who require it at no cost.

Realising that HIV/AIDS does not discriminate against itsvictims, the Khotso-Caritas Hospice has established achildren’s day care centre, which provides care to childreninfected and affected by HIV/AIDS. Children between the agesof three and six are collected from their homes every morningand returned in the afternoon once their caregivers returnhome from their workplaces. The centre provides them withART, education and three nutritious meals a day. Once thechildren graduate from the day care centre, they continue toreceive treatment and their wellbeing is monitored on aregular basis.

In total, the Khotso-Caritas Hospice employs 36 people. Atpresent, Dr Ncholo is assisted by two part-time doctors, anursing staff of 14, four counsellors, four caregivers and 16 employees responsible for preparing meals, administrationand maintenance duties.

In May 2009, the Khotso-Caritas Hospice appointed a board ofrepresentatives to oversee and assist with the activities of the

hospice. Buti Biloane, human resources manager at ERPM and

Ergo, was appointed as chairman of the board. “The hospice

survives by means of donations from various organisations.

With the various skills and talent of the people serving on the

board and Dr Ncholo’s vast experience, we hope to ensure that

the Khotso-Caritas Hospice achieves its strategic objectives,”

says Buti.

The Khotso-Caritas Hospice is growing stronger every year in

terms of skills and capacity, but its challenges grow each year as

well. “Having worked in public hospitals and having experienced

the lack of resources, I now believe that we cannot turn a blind

eye to the current situation. As a non-profit organisation, we are

dependent on the generosity of donors in the private sector and

we also rely greatly on the assistance of volunteers because we

provide our service to the community free of charge. I do,

however, believe that we are making a significant contribution,”

says Dr Ncholo.

Nelio Monjane - destined for excellence

CGR employeesorganise transport

I-DRDGOLD iye yaxhasa i-Khotso-Caritas Hospice, ebinikela ngenkathalo noncedo kubasebenzi nabahlali abosulelwenabachatshazelwe yi-HIV/AIDS ukususela ngo-2002. I-Hospice, eyasungulwa ngu-Gqr Khotso Ncholo, iqhuba iinkquboezintathu eziquka: inkathalo yokuthomalalisa iintlungu kubaguli abagulela ukufa, unyango lwe-anti-retroviral (ART) kunyenendawo yokunyamekela abantwana ebudeni bemini enyamekela abantwana abangama-66 abakubudala obuphakathikweminyaka emithathu ukuya kwemithandathu abasuka elumelwaneni.

U-Buti Biloane, umanejala we-human resources e-ERPM kunye nase-Ergo, uye wamiselwa njengomhlali-ngaphambilikwibhodi. “I-hospice iqhubekeka ikhona ngenxa yeminikelo evela kwimibutho eyahluka-hlukeneyo. Ngenxa yobuchule kunyeneetalente ezahluka-hlukeneyo ezikwibhodi kunye namava ayintabalala ka-Gqr Khotso, sinqwenela ukuqinisekisa ukuba i-Khotso-Caritas Hospice iyakukuphumeza oko ikucebileyo.”

Blyvoor: planting for the future

As part of the Graduate Development Programme implemented atDRDGOLD in accordance with the company’s Social and Labour Plancommitments, of the 10 learners selected, one would receive a bursary toassist him/her to obtain a tertiary qualification in a relevant miningdiscipline. Of the group of hopefuls, Nelio Monjane was selected as the bestcandidate to receive a bursary from Blyvoor to further his studies in the fieldof mining engineering.

Nelio comes from a family with lineage rooted firmly in the mining industry.However, this is not the reason why he chose this very challenging career path.

As part of Nelio’s bursary, he receives a bursary which covers his tuition fees,accommodation expenses and an allowance which covers his basic day-to-day

needs. In return, Nelio has to work at Blyvoor during semester holidays,affording him the opportunity to gain valuable work experience whilecompleting his studies.

Nelio is currently studying towards his National Diploma in MiningEngineering through UNISA and hopes to complete the S4 level, whichcomprises six months’ theoretical training, by the end of this year.

In his free time, Nelio is a communications lecturer at the ABET centre atBlyvoor. “I believe that you can achieve anything if you work hard enough. Iwant to inspire people by my actions and through my actions; I believe that Ican make a difference,” he concluded.

“Nelio has the passion to succeed in a tough environment such as the miningindustry. He has an open mind and has managed to build strong ties with hisfellow colleagues. I believe that he is on his way to a bright future,” says humanresources manager at Blyvoor, Colin Goodwin.

I“I want to make a difference wherever I may findmyself; what better environment to do so than withinthe mining industry?” asks Nelio.

Five hydroponic tunnels, measuring 30 metres by 10 metres, will seetheir first organic vegetable harvest in September

Nelio Monjane, who received a bursaryfrom Blyvoor to study mining engineering,believes that you can achieve anything ifyou work hard enough

Crown has sponsored the three vehicles which transport shift employees to and from work

Enthusiastic pre-school students attending the Khotso-Caritas day care centre

During the 2007/2008 wage negotiations, DRDGOLD and labour agreed thatthe employees of Crown Gold Recoveries (CGR) would form a committee tolook into providing transport to and from the three CGR plants (Knights,Crown, and City Deep) for shift workers. Accordingly, employees haveformed the Crown Logistics Co-operative, and membership is voluntary.

The co-operative has been providing transport services to shift employeessince 14 May 2009, and the initiative is being well received, according to CGRshop steward Charles Ryan.

The current contract is for a period of three years, and it is the intention thatthe co-operative be run according to sustainable business principles.

Said Jeevan Uren, human resources manager at CGR: “This has been aninitiative run entirely by employees; empowerment is the cornerstone of thisagreement and it is encouraging to see employees taking joint responsibility for an element such as transport. It would be great if the Crown Logistics Co-operative could extend its services beyond CGR to other companies in thesurrounding areas.”.

Ukuxhasa abachatshazelwe yi-HIV ne-AIDSbase-Ekurhuleni

Page 3: DRDGOLD weathers the ‘perfect storm’ of challenges · DRDGOLD weathers the ‘perfect storm’ of challenges O n 10 June, Blyvoor achieved one million fatality-free shifts. In

Qualified radiographer Madelein Felix pictured next to the brand new X-ray machine at the nearly renovated BlyvoorOccupational Health Centre

Blyvoor extends an invitation to all employees and their family members to visit the Occupational Health Care Centre.

Please contact Lucinda Marx at 082 470 6119 should you requirefurther information.

U-Charles Ryan no-Johannes Ngakanebaxhoma umgangathoSuku ngalunye lwahlukile kwii-shopsteward ezingu-Johannes Ngakanekunye no-Charles Ryan. Ababameli be-NUM bobabini abasebenza e-CrownGold Recoveries (CGR), basebenzanzima bezama ukwakha ubuhloboobuhle phakathi kwabaqeshi kunyenabasebenzi.

Ii-shopsteward ezifana no-Charleskunye no-Johannes, abonyulweyimibutho yomanyano lwabasebenziengokwedemokhrasi, banoxanduvaolungaphaya kwemisebenzi yaboyantsuku-zonke. “Sililizwi labasebenzi,xanduva olo esingalweyiyo,” ucacisaatsho u-Charles.

“I-DRDGOLD yenza izinto ezininzikakuhle, yaye amaxesha amaninziphantse lenkampani ibe inentlonizokuthetha ngoko ikwenzayo,” utsho u-Charles.

Charles Ryan andJohannes Ngakaneset the bar highFor shopstewards Johannes Ngakaneand Charles Ryan, no two days are everthe same. Both employed at Crown GoldRecoveries (CGR), these two NUMrepresentatives work tirelessly to try toforge a healthy relationship betweenemployer and employees.

Elected through democratic unionstructures, shopstewards such as Charlesand Johannes have a responsibilitybeyond their immediate jobs.“We are thevoice of the employees, a responsibilitywe don’t take lightly,” explains Charles.

“It is not easy being an elected leader.You are seldom popular. But we aren’there for the popularity, we are here toserve our members as best we knowhow,” adds Johannes.

Charles and Johannes believe that ifmanagement and unions continue towork collaboratively, many benefits canbe reaped going forward. “DRDGOLDis doing many things very well, andquite often the company is almost shy totalk about what it’s doing,” Charles says.“But it is important for employees toknow and understand that the companyis doing the best it can in the currenteconomic climate to accommodatelabour’s requests and demands.”

“There are many successes, most recentlythe successful transport initiative rununder the auspices of Crown Logisticscc. And if we continue to engage andseek solutions for ageing resources suchas those at CGR, we will certainly securea brighter future for our members,”concludes Johannes.

Leonard Nxumalo, a geologist at Blyvoor, receivedthe best student award for the Junior LeadershipProgramme, no mean feat when working full-time. Leonard’s impact project looked atreducing the unit costs per metre drilled in thediamond drilling programme. His project hasrevolutionised the manner in which diamonddrilling is scheduled and conducted, and to datehas saved the company in excess of R150 000.

‘The entire course was most valuable,” Leonardsays,“but my best module was personal productivity– it made me become more effective as anindividual, a more effective team member andmost importantly, an effective leader. It alsoimproved my personal life in a very amazing way!”

Simon Eccles, chief security officer at Crown andCity Deep gold plants, was awarded mostimproved student. His impact project focused on

the sale of reclaimed copper cable. He explains,“Salvaged cable is stored in a cable yard and issupposed to be re-used wherever possible in orderto save costs. However, since the cable in the yardwas not stored in an orderly manner, it was verydifficult to locate a specific cable. The electricianswould therefore use new cable without firstchecking to see if a suitable reclaimed cable couldbe found. I proposed we sell the cable and generatecash from a depreciating asset; the cable was soldfor nearly R150 000.”

For Tessa Wilkins, an assistant financial accountantat ERPM, the JLP course culminated in herreceiving the award for the best impact project.Tessa’s project entailed detailed scrutiny of currentliving out allowances paid by the mine tocontractors who provide hostel accommodationon behalf of the mine. Allowances were verified bythe payroll department after physical counts wereconducted to more accurately reflect the correctamounts owed to the contractor, and the project’sreturn on investment, which was around R100 000over a three-month period, is escalating monthly.

Tessa feels the benefits of the course were several.“Itgave me the ability to deal more effectively withchange, to work more assertively, to unite a diverseteam, to manage my time more effectively and todelegate and prioritise. I have become morefocused, and understand that goal setting is crucialto success. Achieving that goal is an award in itself,”concludes Tessa.

DRDGOLD, as part of the company’s vision to bea respected employer which invests in theempowerment and training of its staff, ran a pilotJunior Leadership Programme (JLP) during 2009.Andrew Weir, executive officer: human resourcesfor the DRDGOLD group, explains: “Weembarked on this project in an effort to teachthose attending about finance, management, anddecision-making and lastly, to create somethingthat will help chosen candidates grow in theircurrent positions.”

While 25 candidates enrolled when the coursestarted in April 2008, 13 people finished. PietPistorius, group training consultant, explains thatsome candidates from the local community inEkurhuleni chose to leave the course, while othersfound the commitment required in terms of timeaway from the office too demanding, and thereforehad to withdraw as well. Comprising boththeoretical and practical study, candidates were alsorequired to submit an impact project at the end ofthe course. Of the 13 students who completed thecourse, 11 submitted impact projects.

Candidates had to present their impact projects to

senior management and key individualsassociated with the JLP training, after which themost outstanding projects and candidates wererevealed at a dinner on 24 June 2009. Piet said:“Winners were judged on a number of criteria,such as the quality of their presentation, thefinancial impact of their projects, their overallperformance throughout the course and theincorporation of project key performance areas(KPAs).”

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 cashflow in respect of living outallowances paid to contractors and VAT at ERPM

• Maintaining a constant oxygen supplyinto the elution process to dramaticallyimprove extraction efficiencies.

Andrew concludes: “This all-encompassingprogramme has been well received, fromboth students and the company. We look

forward to welcoming the next set of learners andhope that they can implement as efficient andsustainable projects as their predecessors.”

Three learners have been nominated to enrol forthe Unisa Management Development Programme(MDP).

The course comprised five modules:Module 1: Personal productivityModule 2: LeadershipModule 3: Fundamentals of managementModule 4: Fundamental principles of

economics and business financeModule 5: Introduction to project

management

And here’s what some of the JLP achievers had to say…

Health care at Blyvoor gets a boost

Members of the Junior Leadership Programme were delighted to have completed the course. Pictured here standing from leftto right are: Leonard Nxumalo, Rick Simon, Simon Eccles, Bart Coetzee, Katlego Thekiso, Rampedi Mothapo and in thefront row from left to right: Geraldine Land, Niël Pretorius, Tessa Wilkins, Piet Pistorius, Neo Molokane

I“The outstanding thing about a course suchas this is that the impact projects presentedrepresent a total saving of around R1.4 millionper month for DRDGOLD. When you considerthat the cost of the training amounted to amere R400 000 in total, this is a significantsaving for the company,” explains Piet.

Junior Leadership Programmesaves company money

As reported in Issue 12 of Asikhulume,Blyvoor together with serviceprovider Healthshare which managesBlyvoor’s primary and secondary

health care, is in the process of improving thestandard of health care given to employees.

The second phase of the renovation process ofthe Blyvoor Occupational Health Centre iscurrently taking place and is expected to befinalised by the end of September.

As part of phase two, Blyvoor has installed an X-ray machine and employed Madelein Felix,a fully qualified radiographer who joinedHealthshare contracts executive CarolineGreen and her team of 12 occupational healthprofessionals during June 2009. “Theutilisation of the medical facilities at Blyvoorhas made it much easier for patients to haveaccess to the medical care they require and has

significantly reduced travelling expenses,”says Madelein.

Since December 2008, the utilisation of theclinic has increased substantially, which hascontributed towards the prevention ofunnecessary hospitalisation.

The centre offers the full spectrum of primaryhealth care including an HIV/AIDS programme.In support of this programme, Healthshare hasappointed a wellness co-coordinator which hasresulted in an increased number of employeesreceiving voluntary counselling and testing(VCT) on the mine. Other health servicesavailable on site include audiology, lung functiontests, TB X-rays and the admission of directlyobserved therapies. As part of DRDGOLD’sEmployee Assistance Programme (EAP),employees now also receive trauma counsellingand marital guidance by means of referral to thenearby Leslie Williams Hospital.

Page 4: DRDGOLD weathers the ‘perfect storm’ of challenges · DRDGOLD weathers the ‘perfect storm’ of challenges O n 10 June, Blyvoor achieved one million fatality-free shifts. In

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Two bright young Crown apprentices, Jan

Mogapi and Vincent Mndaweni, completed their

full-trade learnerships in boiler-making during

October this year.

Both Jan and Vincent were enrolled in the

DRDGOLD learnership programme in 2007 and

after three challenging years, have now

completed their training at the Goldfields

Academy. Their training comprised surface

metalliferous and underground training at the

academy, as well as on-the-job training at

Crown.

The learnership programme, initiated by

DRDGOLD in 2006, aims to address the skills

shortage both within the Group and the mining

industry as a whole, and gives employees the

opportunity to further their careers in the

industry.

The first intake of apprentices from Crown

comprised a group of six learners, two of which

were trained as electricians, two as fitters and

two as boilermakers. Jan and Vincent, the first to

complete their trade tests, are very excited about

their future prospects.

“I am very pleased about the progress we have

made so far. I know that all the hard work and

studying wasn’t just a waste of time and money

for either me or DRDGOLD, and I’m ready to

prove it!” said Jan.

Vincent echoes Jan’s sentiment: “I’m ready for

any challenge and my aim ultimately is to

become an engineer.”

“This achievement by Jan and Vincent is

evidence of DRDGOLD’s commitment towards

the development of its employees, especially

historically disadvantaged individuals. Not only

have these two employees demonstrated their

willingness to further their own development,

but they have also set a shining example to

others,” said Crown human resources manager

Jeevan Uren.

Stephanie Meyer, personal assistant to both DRDGOLD CEO Niël Pretorius and CFOCraig Barnes, displayed great courage when she decided to bite the bullet and overcomethree of her greatest fears: a fear of heights, a fear of small aircraft and claustrophobia. Shejumped 10 000 feet from an aircraft at the Johannesburg Skydiving Club in Carletonvilleon Saturday 11 July.

Stephanie, a proud grandmother of two, also keeps CEO Niël Pretorius and CFO Craig

Barnes on their toes by co-ordinating their daily schedules and making sure that they are

on time for all their appointments.

Even though Stephanie spends most of her time at Corporate Office in Johannesburg, she

is no stranger to the DRDGOLD operations as her job description includes assisting

DRDGOLD risk manager Hannes Botes with the compilation of the quarterly risk reviews

which entails identifying and rating risks according to significance.

During her maiden flight, Stephanie had a birds’ eye view of Blyvoor. “Even though I had

my eyes closed for a bit during the free fall, I was able to see the slimes dams at Blyvoor very

clearly,” she says.

Super Stephanie!

Crown’s latest qualified tradesmen, Vincent Mndaweni (left) and Jan Mogapi. Both have completed their training as boilermakers through DRDGOLD’s learnership programme

Jan and Vincent ‘blaze the trail’ at Crown

Crown commendscommitment

Ke basebetsi ba seng ka tlase ho ba 23 ba Crown ba ileng ba tlotlwa bakeng sa ho sebetsa dilemo tse25 kaofela khampaning, moketjaneng wa kabo ya dikgau tsa tshebeletso ya nako e telele o neng otshwaretswe mane Crown Recreational Club ka Motsheanong.

Charles Symons, mohlanka wa phethahatso wa: surface operations o ne a le teng moketjaneng oommoho le Henry Gouws, motsamaisi kakaretso wa: Crown mmoho le ditho tse ding tsa bolaodi bophahameng.

Pele a ka fana ka ditifikeiti tse kentsweng diforeiming, Henry o ile a leboha bao ba neng ba le tengbakeng sa botshepehi le maikemisetso a bona ho Crown, mme a re, “ke ka baka la lona re kgonneng hoaha khampani ena. Le ha ho le jwalo, ke rata hape le ho leboha basadi le ba malapa a bohle baamohetseng ditifikeiti bakeng sa tshehetso yohle eo ba bileng le yona ho bao ba ba ratang.”

Crown e tlotla bao ba bontshitsengbotshepehi le maikemisetso

A delighted 23 Crown employees were recognised for 25 years’ service at a long-service awardceremony held at the Crown Recreational Club in May.

Charles Symons, executive officer: surface operations, was in attendance along with Henry Gouws,general manager: Crown and other members of senior management.

Before handing out framed certificates Henry thanked the attendees for their loyalty and commitment toCrown saying, “It is through your dedication and hard work that we have been able to build thiscompany, I must thank the wives and families of the recipients for all the support you’ve shown to yourloved ones during the 25 years that they have tirelessly served the company.”