As the Anglo American Group marks a century of operating in South Africa, the last five years have arguably been the most challenging for the platinum mining sector, therefore affecting its platinum business unit, Anglo American Platinum. Marked by the longest labour strike in history at the start of 2014 and a 25% reduction in commodity prices, due to unrealised growth in the automotive industry, Anglo American Platinum (Amplats) has had to act swiftly to reassure stakeholders and restructure the business for future resilience.
As the Anglo American Group marks a century of operating in South Africa, the last five years have arguably been the most challenging for the platinum mining sector, therefore affecting its platinum business unit, Anglo American Platinum. Marked by the longest labour strike in history at the start of 2014 and a 25% reduction in commodity prices, due to unrealised growth in the automotive industry, Anglo American Platinum (Amplats) has had to act swiftly to reassure stakeholders and restructure the business for future resilience.
Amplats’ response has been to shift from a growth-driven to a more value-driven strategy that involves developing the entire value chain, beneficiating raw materials, and creating stability through sustainable development in its host communities. This has meant selling off assets that were capital-intensive in some cases, and purposefully diluting its market share of the South African platinum sector to allow for transformation and local empowerment to prosper.
At the close of 2016, Amplats supported 28 250 jobs and had invested R331 million in community development. With operations concentrated across the platinum belt in the North West and Limpopo, Amplats currently mines about 37% of the global reserves at up to eight underground mines and one open pit mine across Thabazimbi, Mokopane and Polokwane, while retaining two smelters and a single refinery in Rustenburg.
Since Amplats forms part of a mining conglomerate that has diverse interests in South Africa, it is worth noting that Anglo American’s collective mining operations that span diamonds, platinum, iron ore and thermal coal, have invested R3.2 billion in their host communities, over the last five years. Community spending is, however, the combined result of mandatory social labour plans required by the Mining Charter that typically consider broader infrastructure deficits undertaken in partnership with local government and voluntary corporate social investment that aims to be more responsive to local community needs.
Maintaining social licence
Amplats is committed to maintaining its social licence to operate through inclusive stakeholder engagement, where social imperatives are agreed in collaboration with host communities while balancing the needs of local stakeholders such as government to create long-term value. In light of the increasingly challenging economic climate that has seen an escalation in civil protests, the company has taken a position to be more transparent with community stakeholders.
Investing in responsible citizenship
Amplats has invested in infrastructure, teacher training, curriculum support, maths and science, as well as school feeding schemes, and remains committed to investing in education and skills development as the main driver for overturning systemic poverty. It also consistently looks at ways of building responsible citizenship.
Local non-profit organisation Lighting Tomorrow is a breakthrough educational programme that applies sound behavioural science methodology, in conjunction with highly experiential and participatory methods, to help youth develop self-awareness and become ambassadors for ubuntu in their schools, communities and home environments. In partnership with Lighting Tomorrow, Amplats invests in an after-school programme that aims to strengthen leadership competencies and equips learners, teachers and parents with social skills that will lead to more respectful relationships within the community. The programme currently accommodates 540 learners from 10 schools, from grade R to high school. The programme has also created employment opportunities for youth as tutors.
Solar energy contributes to community safety
In an effort to combat high rates of crime which ravaged communities at night, Amplats worked in close collaboration with stakeholders such as the local community policing forums, to prioritise communal lighting and village electrification. Rustenburg communities where Amplats previously operated were the first to benefit from high-mast lighting. After numerous efforts to connect the lights to the energy grid, the company began looking at alternative energy sources.
Solar high-mast lights were found to be three times more affordable than standard electrical fittings. The previous cost of R35 million to electrify one village could now be undertaken at a cost of R5 million. The project was not only an opportunity to link these remote communities to the green economy, but to also create jobs for unemployed youth who have since been trained on maintenance to ensure that the programme remains sustainable.
The electrification programme that started in June 2016 has since reached eight communities where Amplats operates. As a result of the deep consultation undertaken with the communities on the technology and rollout, communities have safeguarded the solar panels in every village, confirming that the engagement was effective and that the residents have taken real ownership of this vital infrastructure. While data is still to be collected on whether incidents of crime have decreased, the overwhelming feedback from communities is that they feel safe and that their quality of life has improved.
