Mining Charter compliance

Progress against Mining Charter targets

Although the new Mining Charter is yet to be finalised, we at Harmony have continued to work towards fulfilling our commitments, in line with the underlying spirit of the 2014 Mining Charter and with our overall commitment to transformation.

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 is a summary of our performance against the targets for each of the Mining Charter’s nine pillars for the calendar year ended 31 December 2016.

 ElementMeasurementCompliance targetWeightingProgressScore
1 Reporting Has the company reported its level of compliance with the Charter for the calendar year Annually Yes Yes/no Yes Yes
2 Ownership Minimum target for effective ownership by historically disadvantaged South Africans Meaningful economic participation. Full shareholder rights 26% Yes/no Yes Yes
3 Housing and living conditions Conversion and upgrading of hostels to attain an occupancy rate of one person per room Occupancy rate of one person per room 100% Yes/no 100% Yes
    Conversion and upgrading of hostels into family units Family units established (included in mine community development) Yes Yes/no 0% No
4 Procurement and enterprise development Procurement spend with black economic empowered entities Capital goods 40% 5% 80% 5%
      Services 70% 5% 80% 5%
      Consumable goods 50% 2% 75% 2%
    Multinational suppliers contribution to a social fund Multinational supplier 0.5% 3% 0% 0%
5 Employment equity Diversification of the workplace to reflect the country’s demographics to attain competitiveness Top management (board, executive management) 40% 3% 59% 3%
      Senior management 40% 4% 45% 4%
      Middle management 40% 3% 50% 3%
      Junior management 40% 4% 63% 1%
      Core skills 40% 5% 67% 5%
6 Human resource development Diversification of requisite skills, including support for South African-based research and development initiatives intended to develop solutions in exploration, mining, processing, technology efficiency (energy and water use in mining), beneficiation as well as environmental conservation Human resources expenditure as a percentage of payroll 5% 25% 6% 25%
7 Mine community development Conduct ethnographic community consultative and collaborative processes to delineate community needs analysis Up to date project implementation 100% 15% 93% 14%
8 Sustainable development and growth Improvement of the industry’s environmental management Implementation of approved environmental management plans 100% 12%  95%  11%
    Improvement of the industry’s mine health and safety performance Implementation of tripartite action plans on health and safety 100% 12%  83%  10%
    Use of South African-based research facilities for analysis of samples across the mining value chain Percentage of samples in South African laboratories 100% 5%  100% 5%
  100%    93.29%