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ENHANCING THE DEVELOPMENT IMPACT OF RESOURCE INDUSTRIES THROUGH THE EFFECTIVE USE OF REVENUES AND CORPORATE SOCIAL RESPONSIBILITY INVESTMENTS. Sponsored by The Government of Mozambique, the World Bank, and the Governments of Australia and Norway March 25 – 26, 2009. Bridgette Radebe.

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  1. ENHANCING THE DEVELOPMENT IMPACT OF RESOURCE INDUSTRIES THROUGH THE EFFECTIVE USE OF REVENUES AND CORPORATE SOCIAL RESPONSIBILITY INVESTMENTS Sponsored by The Government of Mozambique, the World Bank, and the Governments of Australia and Norway March 25 – 26, 2009 Bridgette Radebe EXECUTIVE CHAIRPERSON: MMAKAU MINING PRESIDENT: SOUTH AFRICAN MINING DEVELOPMENT ASSOCIATION (VICE CHAIRPERSON OF MINERALS, MINING AND DEVELOPMENT BOARD)

  2. Post 1994: Legislative Transformation Major contributor towards Economic Upliftmentof the Majority: Creation of a Developmental State: • Need for legislative change recognized: • Minerals and Petroleum Resources Development Act at No. 28 of 2002 • State becomes the Custodian of mineral rights • Mining Charter • Monopolistic culture of the mining industry addressed • Rural communities, Foreign investors and all Stakeholders have access • Fair Labour Laws South African Parliament

  3. SA Mining Charter – the Establishment of a Social Contract: Scorecard for the Broad Based Socio Economic Empowerment Charter, for South African Mining Industry 2004: • Ownership • 26% equity participation • Human Resource Development • 40% black managers within 5 years • 10% women participation within 5 years • Employment Equity • 100% literacy within 5 years • Procurements • BEE procurement • Beneficiation • Social and Labour Plan • Migrant Labour • Mining Community and Rural Development

  4. Mining Realities and Extractive Industries Regarding Social Corporate Responsibility: • Need for social license to operate: • Granting of mining licenses – Broad-Based Socio-Economic Charter • (Mining Charter) and Broad-Based Black Economic Empowerment • Scorecard (BBBEE) • SA Government engages in a Social Contract with Mining Investors: • Spatial management, Land Use Management Schemes • Land acquisition and housing • Public infrastructure and services • Institutional, technical, administrative & political capacity • Transformation Obligations: • Social & Labour Plan (SLP’s - an advanced form of Corporate Social Responsibility) • Public Private Partnership Projects Promotes Sustainability in the rural areas

  5. Uplifting Rural Communities through Producers forums and Integrated Resources Management Models: Focus on Sustainable Rural Economic Development: SLP – Social Labour Plan LED – Local Economic Development

  6. The Integrated Solution Model: The Integrated Solution Model: PMU - Project Management Units

  7. Mining Companies involved in Rural Upliftment Partnership Models through Producers Forums: • Modikwa Platinum Mine Joint Venture • MTC Minerals • Northam Platinum Limited • Pan Palladium South Africa (Pty) Limited • Plateau Resources (Pty) Limited • Platreef Resource (Pty) Limited • Rustenburg Platinum Mines (Pty) Limited • (Eastern Limb Development) • Samancor Chrome Limited • Sishen Iron Ore Company (Pty) Limited • Two Rivers Platinum (Pty) Limited • UmnothoweSizwe Investment Holdings Limited • Veremo Holdings Limited • Westen Platinum Limited (On behalf of Messina • Platinum Mines Limited) • Xstrata South Africa (Pty) Limited • Akanani Mining (Pty) Limited • Anglo Operations Limited • Anglo Platinum • ARM Platinum (Pty) Limited • ASA Metals (Pyt) Limited • Assmang Limited (Dwarsrivier Mine) • Barplats Mines Limited (Rhodium Reefs) • Boynton Investments (Pty) Limited • Chromex Mining (Pty) Limited • Corridor Mining Resource (Pty) Limited • Eastern Platinum Limited • Impala Platinum Limited • Lebowa Platinum • Marula Platinum

  8. Public Private Partnership Funds Invested in creating a Sustainable Rural Economy:

  9. The Mining Industry to Graduate from the following Historic Mining Investment Model: Explore + Extract + Exploit + Export = Ghost Towns + Resource Curse Exploited Mining Environment Sustainable Mining Environment Massacres and Ethnic Cleansing Rape as a Weapon of war Conflict Diamonds the Root of all Evil

  10. Mining continues to Uplift Rural Communities: • Marula Platinum is an example of a useful multi-community equity investment model: • Dividends fund the sustainable futures of these rural communities

  11. Uplifting Communities through Mining Equity:

  12. Procurement an Engine for Economic Growth: 65 000 suppliers (4500 Narrow Based HDSA suppliers) (12000 BBEE suppliers ) Total annual procurement budget – estimated at R85 billion 2 3 64 mining & supply operations across 6 provinces governments Approximately R9.5 billion to HDSA600 Buyers 4 • Develop BEE mining support industries 1 Source: Decti - 2008

  13. BEE Success Story – Royal Bafokeng Partners: RBN Partners, Anglo Plats, Implats, Xstrata Coal ect. RBN 100% Royal Bafokeng Holding (PTY) LTD • Most mines situated in rural areas • Mining is a catalysts for rural development • Royal Bafokeng Partners, a excellent role model: • Market cap: 33.5 billion • Dividends invested in rural renewal projects • In past 10yrs over R2 billion invested in clinics, education, public utilities • Great mentorship to other rural communities. Management Services RBH contracting entity eg. Leases, employment contracts Resources Industrial Services Financial 83.11m Shares (13.4%) In Impala Platinum Holdings Ltd 27.03m shares (20%) In Astrapak Ltd 31.93m shares (17.6%) In Senwes Ltd 1.22m shares (10%) In Zurich Insurance Company South Africa 51% of Bafokeng Conor Technicrete 26% interest In Metuba JV 720.16m shares (32.1%) In Merafe Resources Ltd 27% of Pasco Risk Holdings (Pty) Ltd 18.95m shares (12.5%) In Metair Investments Ltd 50% of Bakokeng Rasimone Platinum Mine JV Royal Bafokeng Sports Operating Company 65% of South African Coal Mining Ltd 100% of Fraser Alexander Holdings (Pty) Ltd Platinum and granite Licences/rights Royal Bafokeng Capital 51% of Hardrock Engineering 17.6% of DHL Express SA 55% of MB Technologies (Pty) Ltd 25.01% of M-Tech (Pty) Ltd 30% of Zaptronix Limited Source RBN financial report: April 2008 30% stake in Praxima Africa Payroll Systems

  14. Enhancing the Development Impact of Resource Industries through Integrated Resources Management Models: • A Developmental State created by Effective Minerals Legislation • Integrated Resources Management Developed by producers forums and • Local, Regional and National Government. • Mining Investors, Communities and Government Partners in the creation of a • Sustainable Mining Economy • Social and Labour Plan is an Advance Model of Corporate Social investment • Compassionate Capitalism to be practiced in all Developing Countries      14

  15. This land must be healed This land, the whole land Will be healed, must be healed These brazen cities, the swollen mines The mineral of our sweat The teeming ghetto, the dormitory cells In towns and squalid squatter camps Where hope smothers in a tyre These furnaces of human indifference must incinerate With all the heat of a healing fire Those were the dark ages of mining And now the winds of change are blowing A brighter new future our way- A future of Global Mining Transformation A future of the paradigm shift This land, the whole land Will be healed, must be healed - Don Matera 15

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