Socio-economic development

Social and labour plans (South Africa)

Social and labour plans (SLPs) embody PPC's commitment to community development across several aspects:

OUR APPROACH TO SLPs

Our aspiration is "we help people experience a better quality of life". We therefore focus on projects that straddle societal spheres, including: education, health, job creation, business development and youth development.

Mine community development encompasses the infrastructure and poverty-eradication projects our mine would undertake in line with the municipal integrated development plan (IDP) for the area, and other relevant frameworks under which the mine operates, as well as major labour-sending areas.

PPC has completed a number of its obligations under the second round of SLPs that ends in September 2018. These projects were carefully selected in collaboration with affected communities in municipalities and regions where PPC mines. The key for project selection is the impact created directly and/or indirectly by our activity in relation to the SLP.

Highlights
Dwaalboom-Koedoeskop road construction

In partnership with Limpopo Roads Agency and the North West Department of Public Works and Roads, PPC contributed over R67 million towards constructing an 83km road from Dwaalboom to Koedoeskop. This has already benefited local residents through job creation and entrepreneurial opportunities. When completed, the road will provide an all-weather dust-free route as well as improved and safe access to major destinations, including work and town. The project is estimated to end in October 2018.

Porterville Path Out of Poverty (POP) youth centre handover

PPC financed building and running costs totalling R2,6 million for the POP youth centre in PortervillePorterville, near our De Hoek plant. The centre is run by an experienced NGO, Goedgedacht Trust, and aims to transform communities by offering children the opportunity to become, healthy; self-confident and educated. It also gives young people the opportunity to take leadership roles in their communities.

Through an integrated and holistic programme, the POP centre provides a safe environment for children from a young age until they are ready to enter the world of employment. We believe this is one mechanism to break the cycle of poverty and let young people enter adulthood as educated, healthy and confident individuals, equipped with the tools they need to live purposefully.

Opening of the Porterville POP centre

Opening of the Porterville POP centre

From left: General manager De Hoek, Johan Voster; DMR social and labour plan directorate, Nwabisa Mgcotyelwa; DMR minister, Gwede Mantashe; PPC MD SA cement and materials, Njombo Lekula; PPC group manager stakeholder relations, Constance Netshifhefhe; DMR, Nhlapo Tsolo

PPC Lime – refurbishing electrical network

In 2017, PPC spent some R619 000 on construction and refurbishment of the network that provides electricity to the communities of Kgatelopele, in line with the municipal electrical master plan.

In addition, PPC contributed over R216 000 towards road markings, pharmacy renovations and mobile clinic equipment as part of joint projects.

Port Elizabeth Grass Ridge

PPC in collaboration with the local mining forum and a private sector partner honoured its full financial commitment for a small business development centre, Emmanuel Haven and Hydroponics, in Motherwell.

In progress
Mobile clinics for Mooiplaas and Laezonia

In line with pressing needs to improve the health system in South Africa, PPC has signed a memorandum of understanding to implement mobile clinics in the cities of Tshwane and Johannesburg. Both clinics will be handed over to the municipalities by September 2018.

Dwaalboom electrical switchgear project

Thabazimbi municipality faces many challenges in supplying electricity services to its jurisdiction. PPC committed to installing related switchgear and repairing the municipal mini substation as a priority project to benefit the community and municipality.

PPC and the Thabazimbi local municipality have finalised a memorandum of understanding for the installation and repair of infrastructure services that fulfil the electricity needs of all domestic, industrial, business and institutional consumers.

Lowlights
Slurry SLP – Matsatseng informal settlement

Implementation of the Slurry SLP in Matsatseng remains unresolved. PPC continues to engage the local municipality, Department of Rural Development and DMR on an effective process to acquire land to develop appropriate housing in Matsatseng. Due to changes in leadership, the housing project has been delayed beyond phase 2 of the SLP.

Mount Steward SLP – Klipplaat

With the help of the community, PPC recently shortlisted four projects, ahead of the required feasibility study. We believe involving the communities, Ikwezi municipality and the DMR will be a catalyst to implement the most relevant project in calendar 2018.

SLP reporting

An SLP is a compliance element under regulation 46 of the MPRDA. More importantly, we believe these plans support meaningful transformation in South Africa. We also believe that structured reporting on our progress or challenges in implementing SLPs will help our stakeholders make an informed assessment of the impact of these projects.

BBBEE status

PPC Ltd and its subsidiaries are classified as a level 3 contributor to BBBEE on the amended codes – generic scorecard.

Element Weighting Points
achieved
Score
%
 
Overall BBBEE score 109 90,18
Equity ownership 25 16,15 64,62  
Management control 19 13,56 71,35  
Skills development 20 15,65 78,24  
Enterprise and supplier development – preferential procurement 25 22,82 91,29  
Enterprise and supplier development 15 15,00 100,00  
Bonus points 0 2,00 100,00  
Socio-economic development 5 5,00 100,00  
BBBEE status level Level 3
Black ownership 17,27% black ownership; 7,98% black women ownership
Discounting principle applied No
Empowering supplier Yes
BEE procurement recognition 110%
 

Corporate social investment

Highlights
Overview

The importance of engaging and collaborating with communities in which we operate is guided by our corporate citizenship principles. We are committed to playing a meaningful role in community development across our areas of operation.

Our corporate social investment (CSI) strategy is underpinned by the philosophy of shared value. This allows for sustainable and continuous growth in communities while making business sense for key stakeholders in those communities, government and PPC.

Building on our rich 126-year legacy, we remain committed to creating value for our stakeholders. Accordingly, our CSI philosophy is designed across specific pillars: community infrastructure investment, regional socio-economic develop-ment and education – each aimed at benefiting South Africa and our African markets.

Investments in the review period were aligned to the United Nations sustainable development goals, our business goals and, most importantly, local community needs identified through community engagement forums at various sites.

We regard our social investment responsibilities as effective drivers of socio-economic development in countries where we operate. By drawing on the power of capital, we help to advance business models and entrepreneurs who intentionally create and combine social, environmental and financial value.

Key projects are summarised as follows:

Science laboratory project (South Africa)

Strengthening public secondary schools to produce growing numbers of black learners with quality maths and physical science passes remains a key priority for the group. In 2018, we increased this investment significantly, spending R5,2 million supporting 20 schools (2017: R2,6 million and 12 respectively) across eight provinces in South Africa and introducing information and communications technology (ICT) into the classrooms.

In addressing the socio-economic needs of these public schools, we donated portable science laboratories that support the South African curriculum. We also provided the software to enhance both teaching and learning experiences.

Our support to learners included psychometric testing to help with subject choices and career decisions for senior learners.

Science laboratory project (South Africa)

Learners undergoing psychometric testing to assist with subject choices across 20 schools in South Africa

Early childhood development
Early childhood development

Our philosophy on education is to support learners from cradle to career. In line with the national focus on early childhood development (ECD), during the year we hosted a pilot programme for 10 ECD facilitators near our Slurry operations in Mahikeng. Our aim was to capacitate local facilitators in creating sustainable environments for learners. During 2018, the same project will be rolled out in Dwaalboom.

Initial results indicate that our pilot ECD programme significantly improves the lives we have touched. The holistic model supports learners' cognitive development as well as physical and emotional well-being. The programme will be rolled out at Dwaalboom in the new financial year.


Mandela Day

Mandela Day

As a responsible and contributing corporate citizen, PPC committed to improving the lives of South Africans on Mandela Day 2017 by participating in the Growing Up Africa Mandela Day Challenge.

As part of the challenge, staff members, including the PPC executive team, filled bags with sifted sand which were then packed into the cavity walls of the Devland Soweto education campus building.

In keeping with the "67 minutes for Mandela" theme, PPC also contributed R67 as donation for every bag we filled on the day and challenged other project partners to match or beat its contribution – benefiting the surrounding community.

The challenge drew over 300 enthusiastic volunteers: within three hours, 15 000 bags, donated by Carletonville-based company, StitchWise, had been filled.

Learner focus week

In partnership with the Department of Mineral Resources and other mining houses, PPC was an anchor sponsor of the learner focus week. Learners across South Africa entered a mining science-related project and winners attended the finals in Limpopo. This initiative made a significant impact on the lives of learners in rural communities.

In South Africa, we also continued to support Crystal House, Thandulwazi Maths and Science Trust, Learn to Earn Project, Star Schools and Growing up Africa.

Ulula Ash science lab project feeds into learnership programme
Ulula Ash science lab project feeds into learnership programme

A recent pilot project with two schools from the PPC/Ulula Ash mobile science laboratory initiative identified learners with strong engineering aptitude at the Kriel and Sibongamandla high schools. These learners completed a Mining Qualifications Authority (MQA) accredited skills development course in basic engineering at our group Technical Skills Academy, gaining valuable exposure to the engineering world. After that, they were supported at the local artisan training college, supplemented by on-the-job training at Ulula Ash's Kriel plant.

Employee volunteerism programme

The spirit of employee volunteerism remains well entrenched across our business. Our volunteer programme supports employees across South Africa, matching their contributions in time or money with corporate donations. We have also supported NGOs where our team members volunteer through the community change igniters programme.

Rwanda

In Rwanda, we continue to support initiatives that focus on socio-economic development and job creation.

After CIMERWA identified the need to create employment opportunities around its factory, a project to train and empower local community members to start their own business was initiated in 2015. To date, several businesses have started up, benefiting community members and their dependants.

Rwanda

Cooperative members manufacturing overalls for CIMERWA

BotswanaBotswana
Tlamelong Rehabilitation Centre

Our continued support for this centre has ensured its sustainability. It supports people with disabilities, training beneficiaries in horticultural skills and house-building to make them self-reliant. In the review period, PPC officially handed over the project to the community.

PPC Botswana has invested BWP850 000 in the Molepolole project. Through our partnership with the Ministry of National Immigration and Gender Affairs, we have built and donated a sewing workshop that will generate income for 10 beneficiaries.

Zimbabwe

PPC Zimbabwe has made significant investments in local communities, including:

Zimbabwe
DRC

In line with our CSI philosophy of shared value, we have engaged extensively with communities around our operations in the DRC, leading to country-specific projects that include:

DRC
Going beyond

Our focus for the year ahead remains on sustainable projects with the hope of enhancing our SROI.

Procurement
How we procure

We have adopted the category-management methodology for procurement at PPC, particularly at group level. Category management is considered leading practice and entails grouping our expenditure with third parties to extract more value.

The primary objective is to aggregate internal demand and leverage economies of scale by contracting the most appropriate suppliers for a complete solution beyond the traditional procurement requirement of price, quality and on-time delivery.

Applying category management at PPC has contributed significantly to our cost-cutting programme through:

Priorities for 2019 and beyond

We will concentrate on entrenching category management across procurement functions in the group to further improve related processes.

How we work
Supplier engagement

The PPC procurement department was an early adopter of web-based supplier registration, establishing the group procurement portal in 2014.

This digital platform has increased the efficiency of procurement while promoting PPC's core values and increasing access to market for small, medium and micro-enterprises (SMMEs).

Understanding that our suppliers are a key stakeholder group, our portal adds value for suppliers:

Online tendering, requests and auctions

The portal has enabled PPC to migrate from the traditional paper-based approach of calling for tenders and proposals to a digital process where tenders are published and evaluated. We recently introduced reverse auctions through the portal.

A reverse auction is an event usually used as the last leg of sourcing and tendering to obtain the best price by encouraging competition among bidders on price. Its advantage is the fact that the process is very time efficient, open and transparent compared to the traditional tendering process.

The procurement portal has helped PPC improve its vendor master integrity and address specific regulatory issues.

Our supplier management process has deregistered non-compliant suppliers while increasing the number of black-owned and black women-owned enterprises.

Priorities for 2019 and beyond

We will identify collaborative opportunities with our supplier base, particularly strategic suppliers; to promote local procurement, transformation and capacity building.

We encourage black-owned and black women-owned suppliers to register on our portal to participate in mainstream procurement opportunities at PPC.

ownership12Year-on-year comparison (%)

Our competitive edge

PPC has made a significant contribution to enterprise and supplier development by supporting local SMMEs eligible to transact with our group. This is aligned to the national transformation agenda of reducing poverty, creating employment and shared economic growth.

We continuously encourage our suppliers to collaborate with us to achieve sustainable development objectives through various initiatives:

These initiatives will enable PPC to continue enhancing the competitiveness of our value chain.

Regulatory compliance

PPC scored well (99%) under the enterprise and supplier development (ESD) element of the dti's revised codes of good practice for its supplier-rotation approach in the value chain. We also achieved bonus points for creating jobs and graduating SMMEs in our ESD programme.

The procurement function's contribution to PPC's overall scorecard is summarised below:

Enterprise and supplier development Weight Score
%
Points  
Preferential procurement 25,00 91 22,86  
Supplier development 10,00 100 10,00  
Enterprise development 5,00 100 5,00  
Bonus points 4,00 2,00  
Total 40,00 38,86  

PPC achieved level 2 on this element, the highest in our industry for the review period. At group level, PPC was rated level 3.

Preferential procurement split

The weighted BEE procurement spend under the dti's revised codes of good practice constituted 90,54% (R4,3 billion) of the total measured procurement spend. PPC's overall expenditure and weighted BEE spend per supplier type is summarised below:

Priorities for 2019 and beyond

Priorities for 2019 and beyond

We aspire to achieve a level 1 rating under the ESD element. Accordingly, we will continue to invest in and develop qualifying suppliers and enterprises that are preferably black-owned and/or black woman-owned.