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In South Africa, Harmony’s commitments to its communities are implemented in two streams of activities. First, through the Corporate Social Responsibility Fund, Harmony undertakes corporate social responsibility (CSR) programmes that may not be operation-specific but that address needs in the broader community. For the most part the activities in this area are undertaken in conjunction with known, credible and well-established non-governmental organisations (NGOs) or partners with whom Harmony has a longer-term and enduring relationship.
Harmony’s main focus areas of its social responsibility programmes include education, particularly in mathematics development, education infrastructure, and science development. The emphasis of these CSR programmes is on their impact, the empowerment of Harmony’s mining communities as well as sustainability. In FY09, Harmony spent R16.9 million on CSR.
Second, the company has identified, through the SLPs, key local economic development (LED) programmes in the areas in which it operates and in labour-sending regions (communities from which the company draws its employees). These programmes have largely been identified in collaboration with local municipalities, and approved by the DMR. Emphasis remains on aligning Harmony’s initiatives with national socio-economic development priorities, provincial economic growth and developmental strategies, and district and local municipalities integrated development plans (IDPs). Of critical importance in South Africa is also the participation in the formulation, implementation, and review of the IDPs of local and district municipalities in the communities where Harmony’s operations are located (mining communities) and the labour-sending communities. In FY09, Harmony spent R10.7 million on LED and this brings the total spend on both CSR and LED to R27.6 million, a substantial increase compared with the R19.6 million spent in FY08.
In FY09, Harmony was involved with a number of CSR programmes. Some of these are discussed below.
Student in Free Enterprise (SIFE), South Africa is a global programme is to empower students from tertiary institutions to teach others to create economic opportunities through enterprise development programmes. As at 30 June 2009, 26 leading tertiary education institutions in South Africa participated in SIFE, making this a truly inclusive programme. In addition to the social benefits, SIFE provides Harmony with access to a talent pool for recruitment in the future. Harmony is one of a number of business organisations and government agencies that contribute financially to SIFE, and as one of the major supporters, the company is represented on the SIFE South Africa Board. Harmony has been involved with SIFE for four years, and contributed R2 million in FY09. There were 1 062 students involved in the SIFE programme in FY09. See the Student in Free Enterprise (SIFE) case study for further information.
The South African Mathematics Foundation (SAMF) initiative oversees the South African Mathematics Olympiad and mathematics teacher training programmes across all schools in South Africa. Also, through the foundation, Harmony supports the promotion of mathematics in 15 schools in Harmony’s mining communities. Harmony is also represented on the SAMF board. R2.5 million was allocated by Harmony to SAMF in FY09. See the South African Mathematics Foundation case study for further information.
The Alfred Nzo District Municipality Agricultural Development Project, Eastern Cape is a partnership project between the government (the Alfred Nzo district D Municipality) and Harmony, which is co-funded on a rand-to-rand basis to develop agricultural programmes. Harmony’s annual contribution to the programme is R1 million. The purpose of the programme is to alleviate poverty and unemployment in the Eastern Cape Province of South Africa, one of Harmony’s major labour sending regions. The project is implemented through Teba Development, and Harmony has board representation in this NGO. At the end of June 2009, a total of 1 178 farmers were participating in the agricultural programme. Participants in the programme are trained in farming skills including conservation farming, sustainable food gardens (including soil preparation, trench beds, and mulching), irrigation and tunnel farming. Government departments such as the Department of Agriculture, the Department of Social Development and the Department of Water Affairs and Forestry are involved to ensure the success and long-term sustainability of the programme at both national and provincial levels.
Harmony has established a partnership with Student in Free Enterprise (SIFE), Swaziland to advance community development projects in Swaziland focusing on enterprise development. Again, Swaziland is one of Harmony’s labour sending communities. Harmony has been supporting SIFE Swaziland for two years. The SIFE Swaziland programme started in 2002 at the University of Swaziland. The University of Swaziland SIFE team was the winner of the 2009 national competition and will represent Swaziland in the SIFE World Cup to be held in Germany in October 2009.
The company has continued its support for Project AuTEK in collaboration with other gold mining companies in South Africa namely, Gold Fields Limited and AngloGold Ashanti Limited. In particular, Harmony’s support has been for the identification of new medical applications for gold. The project has so far achieved outstanding results, and further partnerships have been created within the Unites States of America and the European Union. Harmony is represented on the AuTEK Steering Committee. Harmony contributed R2.5 million to AuTEK in FY09. See the Project AuTEK case study for further information.
Mine Life Alliance is a collaboration of major mining companies in South Africa for various socio-economic development projects that form part of the SLPs as per the mining rights requirements. Harmony is represented on the Mine Life Alliance Steering Committee. A major breakthrough by Mine Life in FY09 was a partnership with Doc to Dock. This is an American-based non-profit organisation founded as a commitment to the Clinton Global Initiative dedicated to improving the health and lives of people in Africa by providing health care workers with the tools they require for health care provision. This partnership resulted in a shipment of much-needed medical supplies to four hospitals and eight clinics in Lesotho in May 2009.
Minerals Education Training Fund (METF) is a project with a membership of 31 mining companies in South Africa, with the aim of promoting and supporting tertiary education to meet the skills needs of the South African minerals industry. The focus is on the attraction and retention of educators in mining engineering, metallurgical engineering, chemical engineering and geology. In FY09, Harmony contributed R1.3 million to the METF and is represented on the METF Board. See the Minerals Education Trust Fund case study for further information.
The Harmony Sports Academy was started in 2003 with the main objective of developing and promoting sport, specifically rugby and soccer in the Free State province. FY09 has been the most successful period in the history of the academy, with both soccer teams, U/16 and U/19, qualifying for the national finals in every competition they entered. The academy is also the main contributor for provincial rugby players in the northern Free State in South Africa. The sports academy is recognised by the DMR in South Africa as a key socio-economic development project that will contribute to retaining the company’s mining rights. In addition, the academy provides life skill development to assist young sportsmen to develop as soccer and rugby players of excellence. The programme enables players to participate at provincial and national team level, while creating opportunities for them to follow sports careers. In FY09, a total of 70 students were enrolled in this programme – 36 for rugby and 34 for soccer. Harmony contributed R4.5 million to the Harmony Sports Academy in FY09.
The main objective of Harmony’s Jewellery School is to provide education and skills in jewellery design and manufacturing. The school’s key programme is the three year diploma run by the Central University of Technology (CUT). In FY09, 39 students were enrolled. The school has partnerships with various stakeholders including CUT, the South African Department of Trade and Industry (DTI), the MQA, and the Goldfields Further Education and Training (FET) College. The MQA provides bursaries to students while the Gold Fields FET offers the learnership programme. Harmony contributed R900 000 to the Harmony Jewellery School in FY09. Through the Harmony Jewellery School, the company promotes beneficiation in South Africa, a requirement of the South African Mining Charter.
The Southern Africa HIV Therapeutic Vaccine Project is supported by a syndicate of companies, mainly in the minerals sector, to develop a vaccine for HIV & AIDS. The consortium consists of: Anvil Mining, Gold Fields, Nippon, African Rainbow Minerals, Harmony, Paladin Energy, Assmang, Longman Plc, Rio Tinto, BHP Billiton, Mitsubishi and Sumitomo. The clinical trial of the project, which commenced in October 2008, involves recruiting 140 HIV positive participants (to obtain 108 evaluable participants) from four well established HIV & AIDS clinics across four provinces in South Africa. At the end of June 2009 there were 80 participants enrolled in the trial with 13 participants undergoing screening. Of the enrolled subjects, 35 had completed allial visits and three participants had discontinued the trial. Harmony contributed R5.7 million towards this project in FY09.
Another initiative is the research into mining community socio-economic development programmes. The purpose of the study is to identify top socio-economic development programmes in each of the Harmony mining communities and indicate the extent to which these programmes align with the relevant IDPs, if at all. The survey also includes consultations with local stakeholders and the NGOs/CBOs delivering the programmes. The findings are used as input for local economic development and CSR projects. During FY09, Harmony spent R500 000 on this project which is due to be completed in FY10.
LED programmes are undertaken by various Harmony operations as part of the requirements of the various SLPs for the benefit of Harmony’s mining and labour-sending communities, in line with the relevant municipalities.
The project for internships at Harmony’s operations caters for industry-related practical skills acquisition by students who require industry experience. In FY09, the implementation plan and roll-out covered interns from Harmony’s mining communities, focusing on the disciplines of mining, engineering, geology and finance. During FY09, 30 interns were recruited and placed at various operations for training and development as well as to gain practical work experience.
The objective of the community skills development, Gauteng project is to increase skills levels and employment in the mining communities. At the Doornkop operation mining community portable skills training commenced in FY09 focusing on construction, bricklaying, plastering, carpentry and plumbing. In FY09, a total of 100 beneficiaries participated in the project and R500 000 was spent.
The purpose of ABET in mining communities is to increase literacy in the mining communities for job creation and poverty eradication. In FY09, 130 learners from the company’s mining communities commenced with ABET classes. These are not Harmony’s employees.
The mining community bursary fund’s main objective is to uplift the education levels in the mining communities in key study areas such as engineering, technology, mining, geology, finance and metallurgy, which will contribute to sustainable local economic development. The programme focuses on providing financial assistance for tertiary education to students from mining communities. In FY09, 20 students from the mining communities in the Free State and two students from Soweto in Gauteng were awarded bursaries at various tertiary education institutions.
The health infrastructure development programme is focused on the improvement of the security and ablution facilities for the oncology unit of Universitas Hospital in Bloemfontein. The oncology unit services the communities of Lesotho, and the South African provinces of Eastern Cape, North West and the Free State. The total budget for the project is R971 000 of which Harmony contributed R571 000 to the hospital board towards phases 1 and 2.
In FY09, Harmony received the Professional Management Review Award and has been rated highest in the business sector category: mining companies in operation in the Free State province of South Africa, with regard to companies/institutions that have done the most to enhance the economic growth and development in the province.
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