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Sustainability

Mining Charter compliance

Progress against Mining Charter targets

The Mining Charter serves as a guide to the industry, focusing the transformation journey on nine key elements. A template designed by the Department of Mineral Resources enables mining companies to provide the information necessary to assess their success in achieving key Mining Charter targets.

The following table provides a synopsis of our performance against the targets for each of the Mining Charter's nine pillars for the calendar year ended 31 December 2015.

1. Reporting

We are required to report the level of compliance with the Mining Charter by calendar year
Target Compliance as at 31 December 2015
Annually

2. Ownership

We are required to transfer 26% of Harmony's equity to historically disadvantaged South African entities. Beneficiaries could include entrepreneurs, employees and community trusts.
Target Compliance as at 31 December 2015
26% More than 26%

3. Housing and living conditions

Mining companies housing employees in hostels are required to provide single-person rooms, as well as family units.
Target Compliance as at 31 December 2015
Occupancy rate of one room per person 100%
Family units established

Hostels have been upgraded to allow for one person per room, converting some hostels into family units and establishing home ownership programmes which include the construction of houses. Harmony is working in partnership with the Department of Human Settlements to convert old hostels into family units. Masimong has been completed while Merriespruit is in progress. A key challenge was to comply fully regarding the Doornkop mining licence.
For more information, please refer to the Employees and Communities section.

4. Procurement and enterprise development

We are required to achieve a certain level of procurement spending with black-owned entities in order to encourage the economic empowerment and development of such suppliers.
Target Compliance as at 31 December 2015
Capital goods: 40% Capital goods: 83%
Services: 70% Services: 81%
Consumer goods: 50% Consumer goods: 77%
Annual contribution by multinational suppliers to socio-economic development: 0.5% of the value of any supply contract Harmony engages with all its multinational suppliers urging them to contribute to socio-economic development, as prescribed by the Mining Charter. Harmony is also exploring the potential of a Harmony-supported fund for this same purpose, which will allow for proper monitoring of contributions made by our suppliers.

Harmony has done much to empower and develop black-owned suppliers and/or to encourage ownership transformation of supplier companies. For more details, see Procurement in the Employees and Communities section.

5. Employment equity

Workplace diversity and equitable representation by historically disadvantaged South Africans at all levels with the company are seen as catalysts for social cohesion, transformation and competitiveness. Representation by historically disadvantaged South Africans:
Target Compliance as at 31 December 2015
Board: 40% Board: 57%
Senior management (executive committee): 40% Senior management (executive committee): 45%
Middle management: 40% Middle management: 46%
Junior management: 40% Junior management: 61%
Core skills: 40% Core skills: 66%
Specific emphasis is placed on demographic representation and of that by women in particular. Although all group-wide employment equity targets have been met, further efforts are being made to ensure we are fully transformed at an operational level as well.

6. Human resource development

Employee skills development is integral to social transformation in the workplace and to sustainable growth. We are required to contribute to the development of the requisite skills and to support South African-based research and development initiatives intended to develop solutions to exploration, mining, processing, technology efficiency, beneficiation and environmental conservation challenges.
Target Compliance as at 31 December 2015

Percentage of total payroll to be invested: 5%

Percentage of payroll invested: 6.1%

7. Mine community development

To achieve our social licence to operate, we need to make meaningful contributions towards community development, particularly in communities close to the mines and in labour-sending areas. Development programmes must be based on a clear assessment of development needs, in line with local Integrated Development Plans.
Target Compliance as at 31 December 2015

Plan implementation as at
30 December 2015

90%

8. Sustainable development and growth

Given that mineral resources are non-renewable, it is important to balance the economic benefits of mining with the social and environmental needs of our communities and thus we are required to meet specific obligations in respect of health, safety and environmental management. As one of the most-regulated industries in South Africa, the mining industry has highly developed health, safety and environmental strategies in place to improve the industry's management and performance in this regard.
Target Compliance as at 31 December 2015
Implementation of approved Implementation of approved Environmental Management Programmes: 100%
Environmental Management Programmes: 100% Refer to the Environmental Performance section for more details.

Use of South African-based research facilities for the analysis of samples: 100%

Percentage of samples analysed at South African research facilities: 100%

9. Beneficiation

The Mining Charter encourages South African mining companies to beneficiate the minerals they mine. As an incentive, beneficiation advances may be used to offset black economic empowerment ownership requirements. We benefit from our shareholding in Rand Refinery (Pty) Limited. All our gold is fully refined and beneficiated to final product within South Africa for sale to customers. In addition, Harmony beneficiates the gold it produces at its jewellery school in Welkom. The first commercial outlets supplied by the school were opened in April 2015.

Total score: 88%

Investor brief

Harmony Investor brief, May 2016
Harmony Investor brief -
May/July 2016

(PDF - 1.7MB)

Annual report

Integrated annual report 2016
Integrated annual report 2016

(HTML & PDFs)

Contact us

Kindly visit the contacts page in this section for a full list of the sustainability contacts at Harmony. Read more

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