lonmin sustainability and key initiatives lonmin sustainability and key initiatives natascha...

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225

Table alternative highlight-light

Table alternative highlight-dark

Line chart colour 171

228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Lonmin Sustainability and Key Initiatives

Natascha Viljoen, EVP Processing July 2013

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


2

People

Profit

Sustain-ability

Planet

Ethics Stakeholders

Stakeholders

Stakeholders

Financial Value Proposition Resource efficiencies (Sources)

Procurement processes

Impact (Sinks)

Transformation

Migrant and local labour

Community Value Proposition

Efficiencies Recoveries

Structures and systems

Total cost of ownership

Community Empowerment

Community health

Safety & Health

Employee Value Proposition

Water Energy

Land

Emissions

Waste

GLC Development

Use of invested Capital

CO2e reduction

Eliminate waste

Stakeholders

Sustainability Model: An Integrated Strategy

Soci

al C

apit

al

Employee relations

Employee relations

Employee empowerment

Housing and Human settlement

Housing and Human settlement

Fin

anci

al C

apit

al

Natu

ral Cap

ital H

um

an C

apital

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Initial

• Sustainability a burden

• Minimal communication processes & channels

• Identify sustainability principles

Defined

• Establishing sustainability policies, principles, strategy

• Baseline sustainability performance known; corporate targets set

• Systems and reporting requirements defined

• Mapping of stakeholders

• Initiatives on a project by project basis

• Reactive to legislation

• No common goal or shared responsibility

• No staff buy in

Managed

•Roll out of policies & strategy

• Transition to act, not react, look for root causes

• Sustainability based on systemisation of existing practices without alignment and integration

• Decisions are based on a risk/reward basis

• Commitment towards tracking, achieving and managing performance on 3Ps for longer term

• Limited/ad hoc resourcing

• Driven by enthusiasts

• Limited staff buy in

Operationalised

• Strategy embedded

•Utilisation of opportunities presented in risk

• Interpersonal communication strategy selling sustainability

• People quality of life through investing in development of people

• Bigger picture longer term influences considered and included in strategies & everyday decision making

• Continuous learning & improvement

• Sustainability supporting processes integrated and optimised, pro-active

• Proactive stakeholder collaboration starts to be felt

• Employee involvement is built in

Transformed

• Sustainability thinking

• Benchmarking model

• Sustainable growth: experience the ROI

• Fully integrated into all aspects of business

• Business strategy driven by sustainability principles for people, plant, profit

• Sustainability part of DNA of Business

Leader

Performer

Follower

Laggard

Co

mpeti

tive

Adva

nta

ge

(People

, Pla

net,

Pro

fit)

Awareness Understanding Acceptance Commitment

Sustainable adoption (internal)

Sustainability Graph: Sustainability Maturity

3

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


• Defining sustainability for Lonmin

• Compliance and risk management

• Alignment and functional integration

• Mapping & building of a trusting relationship with stakeholders (incl employees, contractors and community)

• Rolling out of sustainability policies, procedures and principles

1st horizon Stakeholder engagement

• Energy, emissions, footprint, degradation mitigation

• Integrated reporting

• Effective SD communication

• Develop intellectual capital for the future

• Employee value proposition

• Climate change strategies

2nd horizon Operationalise

• Embedded, integrated sustainability

• Strategic lever for operational excellence and differentiation

• Innovation & regenerate natural capital

• SD as a personal value system

3rd horizon SD part of Lonmin

DNA

Sustainability Graph: 3 Horizons

4

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

Health

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Detail: Healthcare for our Employees and Communities

• Medical cover compulsory and comprehensive – Lonmin Medical Scheme

• Cover for Injuries on duty and Occupational diseases – Rand Mutual

• Occupational Health Department and Rehabilitation on site

• Comprehensive Company sponsored HIV and TB prevention and treatment programmes

• Community Health initiatives aligned with our SLP and Dept of Health strategy

• One site Hospital, Emergency unit, Ambulance base and three on-site clinics

• Focus on prevention, health awareness and education as well as treatment outcomes

6

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Detail: HIV/AIDS disease management programme

• Strategy overview

• Extensive HIV & TB treatment programme since 2006

• Access to voluntary counselling & testing

• Support through wellness programme

• Results over past 5 years

• More than 3000 patients on ART treatment – cost c. R700 per patient per month

• Treatment success rate and defaulting monitoring ongoing

• Established a HIV/AIDS and TB Steering Committee and have an HIV/AIDS policy in place

• Peer educator programme & home based care programme (extended to community)

• ART for life to employees (free of charge)

• Combination of education, adherence counselling and parading of employees to reduce

7

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Graph: Employees on ART

989 962

1,349

2,022

2,510

2,979 2,763 2,788 2,829 2,870 2,937

2,979

324

994

571

872

264 24 48 43 52 59 74

0

500

1,000

1,500

2,000

2,500

3,000

FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 Oct-12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13

Nu

mb

er o

f Pa

tien

ts o

n A

RT

Pro

gram

me

Actual ART Patients YTD ART Defaulters Actual ART Defaulters Target ART Patients

8

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Graph: ART Treatment Success Rate

66.0% 68% 69% 69% 69% 68% 68% 68.3% 0%

10%

20%

30%

40%

50%

60%

70%

80%


AR

T Tr

eatm

ent

Succ

ess

Rat

e

Actual ARV treatment success rate Actual ARV treatment control rate Target ARV treatment success rate

9

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Graph: Disease Management – TB Programme

• Strategy overview

• Awareness

• Early diagnoses

• Managing treatment defaulting

• Results over past 5 years

• Awareness

• Monthly talk topics, wellness onsite awareness campaigns and quarterly discussions at the HIV/AIDS Tuberculosis Steering Committee

• Early diagnoses

• On-site regular screening of employees/contractors for Tuberculosis

• Perform contact tracing

• Managing treatment defaulting

• Enrol HIV positive employees on INH prophylaxis to prevent TB infections

• Educate and provide counselling to those employees defaulting treatment

10

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


11

533

472

547 545 527

227

19 11 19 11 8

54

42

25

38 34 34

1 3 0 2

0 2

16.6 14.6 14.4

13.1

0

10

20

30

40

50

60

70

0

100

200

300

400

500

600

700


Mo

nth

ly D

iagn

ose

d C

ases

of

Tub

ercu

losi

s

An

nu

al D

iagn

ose

d C

ases

of

Tub

ercu

losi

s

Total TB Cases for Year/ YTD EPL new TB cases

WPL new TB cases Karee new TB cases

Sustainability: Health Performance Graph: Disease Management – TB Cases

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


12

Sustainability: Health Performance Graph: Disease Management – TB Cure Rate

80.4%

78.3%

83.5% 87.6%

85.0% 87.4% 86.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


% T

B t

reat

me

nt

com

ple

tio

n a

nd

cu

re r

ate

Karee % TB treatment completion and cure rate WPL % TB treatment completion and cure rate

EPL % TB treatment completion and cure rate Target % TB treatment completion and cure rate

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Graph: Occupational Health - Noise Induced Hearing Loss

Hearing conservation programme is aimed to reduce the risk of noise induced hearing loss through engineering and administrative controls, training of staff, provision of personal protective equipment and medical surveillance

Since 2008 NIHL reduced year-on-year. Continue the rock drill silencing programme and all noise areas are demarcated

31

3 7 8

13 17

20

42

5

12 16 17

18

24

0

5 7

4 1 1

6

33

0 1 2 4

9 11

0

5

10

15

20

25

30

35

40

45

50

FY 2012 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Mar '13

Nu

mb

er

of

Emp

loye

es

Accumulative Target Accumulative Total

13

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241

More colours Main colours Sustainability: Health Performance Detail: Community Health SLP Projects

Nutrition programme progressed to establishment of food gardens

Training in premaculture food gardening Home based care givers to provide special

care to about 1,300 orphaned and vulnerable children

Two clinic extensions Two new clinics constructed Three staff houses Extension of a lodger/mother facility Two mobile clinics and obstetric ambulance Refurbished four community clinics

Training for School Governing Bodies to equip them to assist learners in challenges such as rape, abuse, HIV and teen pregnancy

Health promotion campaigns to reduce teen pregnancies initial improvement 23.4% - 17%

Community Health Infrastructure development HIV/AIDS care Nutritional support Health promotion

HIV/AIDS in communities Both peer educators and home based care

givers in community Visit about 1,320 patients regularly

14

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

Environmental Performance

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


• Integrated Water Balance

• Integrated water use licence awarded in October 2012

• Monitoring

• Effective and regular surface, and groundwater monitoring and reporting

• Integrated Water Management Plan

• Comprising a set of action plans to manage the demand, use, conservation and storage of water at operations and to facilitate maximum re-use and recycling of process water through closed system reticulation

• Performance

• Since 2007 an overall decrease of 27% in fresh water consumption

• Storm water management plans include lining of dams and separating of clean & dirty water

• 3D groundwater model is in progress

16

Lonmin Sustainability: Environment Detail: Water Management

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


17

0

2

4

6

8

10

12

14

16

18

20

0

500

1000

1500

2000

2500

3000

3500

4000

FY2

01

3

02

May

201

3

04

May

201

3

06

May

201

3

08

May

201

3

10

May

201

3

12

May

201

3

14

May

201

3

16

May

201

3

18

May

201

3

20

May

201

3

22

May

201

3

24

May

201

3

26

May

201

3

28

May

201

3

30

May

201

3

Nu

mb

er o

f ho

urly e

xcee

dan

ces (SFP

Stack) Dai

ly A

vera

ge S

O2 C

on

cen

trat

ion

in m

g/N

m3

SFP stack emissions overview

Frequency of exceedance of the hourly permissable emission rateDaily average SO2 emisison rate

10.17

13.54

9.30 8.71

10.63

12.37

7.23

10.65

8.92

0

10

20

30

40

50

60

70

80

90

100

0

5

10

15

20

25

30

35

40

45

FY 2

013

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-13

May

-13

Jun

-13

Jul-

13

Au

g-13

Sep

-13

SO2

Plan

t availability (%

)

Ave

rage

SO

2 E

mis

sio

n (

ton

ne

/day

)

& S

me

lte

r A

vera

ge P

rod

uct

ion

(to

nn

e/d

ay))

Emissions & APCE vs. production

Average SO2 emitted (t/d) Production Indicator

SO2 Plant Availablity Absorber Efficiency

Current permissible emission rate

2020 emission requirement

Emission Reduction Strategy

Lonmin Sustainability: Environment Graph: Smelter performance: Emissions and APCE

Targets: 17.9t/d Availability (97%) and Efficiency (96%) Emissions within Limits; reduction strategy 2020

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


18

Lonmin Sustainability: Environment Detail: Hazardous Waste Management

Performance • 16% on average below corporate limit for hazardous waste in FY2013 • Recycled 28% hazardous waste on average in FY2013

-200%

-180%

-160%

-140%

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,0008,5009,000

Tota

l Haz

ard

ou

s w

aste

sh

ow

ing

was

te s

tre

ams,

d

isp

ose

d t

o la

nd

fill

(To

nn

es)

CaSO3 Solid type Hazardous waste

Liquid effluent PMR Waste recycled/reused

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


19

Lonmin Sustainability: Environment Detail: Energy Management

Electricity is our most significant indirect energy source Lonmin partnered with Eskom on a range of initiatives equates to R150 million

Projects: • Air optimisation • Ventilation optimisation • Lighting (LED lights)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

Oct

-12

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Co

nsu

mp

tio

n (

MW

hrs

)

Actual Consumption (Total) (MWh) Monthly Consumption Target

Hot Water Generation (heat pumps) Renewable technologies (solar geysers and plan

solar plant) Anticipated saving of 1.06 GWh

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

Board Initiatives – ‘Catalyst for Change’

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


"The mining industry in South Africa is at a cross

roads. It is imperative that Lonmin does its part to

contribute to improved relations with its employees

both in and outside the workplace.

We are committing to a long-term process of

fundamental change."

Roger Phillimore – Chairman

A Long-term Process of Fundamental Change

21

“What the caterpillar

calls the end of the

world, the master calls

a butterfly” Richard Bach

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


• Employee relations

• Economic Empowerment

• Migrant and Local Labour

• Use of Invested Capital & Infrastructure

• Housing & Accommodation

Board’s Response to Key Issues Identified in 2012

Creates stakeholder value

• Employee Value Proposition

• Community Value Proposition

• Financial Value Proposition

Board responded to Issues with 5 Initiatives

• Corporate Story

• Renewal Plan

• Financial Performance

• Employee Engagement

• Economic

• Economic Footprint

• Economics of the Pt industry and possible options for the future

• Challenges of the migrant labour system and possible solutions

• Employees & Community

• Creating viable mining communities

• Creating Shared Value

22

Key issues identified last year

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


• Employee Relations

• Employee Empowerment

• Migrant and Local Labour

• Housing and Human Settlements

Employee Value Proposition

• Community empowerment

• Housing and Human Settlements

Community Value Proposition

• Use of invested capital and Infrastructure

• Operating model review

• Theory of Constraints

• Total Cost of ownership

Financial Value Proposition

23

5 Strategic Initiatives to Create Stakeholder Value

Stakeholder Engagement

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Conclusion

• For true Sustainability the balance between Financial and Social Value creation is an imperative

• We have identified the key strategic initiatives

• Have made progress

• Focus is on delivery

• Board level focus

• We are mindful of challenges

• Stakeholder engagement

• Geared to respond

24

lonmin sustainability and key initiatives lonmin sustainability and key initiatives natascha...

Documents