Lonmin Corporate Accountability Report 2003 by sdsdfqw21


									                                         Lonmin Plc
           2003 Corporate Accountability Report
                                     03 February 2004

                   2003 Corporate Accountability Report

                                          Peter Ledger
               Director, Lonmin Plc, and Managing Director, Lonmin Platinum

I.     Introduction
Good morning, ladies and gentlemen, and welcome to our second such presentation of our fourth
report on sustainability. A number of people are sharing the platform with me today. We intend to
commence with the presentation of the key issues contained in our 2003 CAR report, whilst also
touching on some of the very real challenges that still face us on the road to socially responsible
investment. Following the presentation, the team will take questions, and will do their very best to
answer them.

II.    Introduction to Panel Members
I would like to firstly welcome our Chief Executive, Ed Haslam. Welcome also to John Robinson,
our Finance Director. Rob Bellhouse is our Company Secretary, and is a fairly new addition to the
Lonmin plc team. He joined us as Company Secretary last year. He has had 15 years of company
secretarial work in four plcs, and was with Greene King for almost five years. He is very qualified
to be the Company Secretary of a mining plc, having started life as a geologist.

Ricus Grimbeek is fairly new to the Lonmin Platinum team in South Africa. He is our
General Manager with Corporate Responsibility. We employed Ricus last year. He is a mining
engineer by training, but he has special training and skills in rock engineering, occupational health
hygiene, mine ventilation, environmental management, which is very important to us, and risk and
business management. He comes to us with 14-15 years’ mining experience as well. He looks
after, and is a major contributor to, the compilation of the corporate accountability report. He
manages our divisional environmental, health, safety and community development trust and
stakeholder communication departments.

Ed Goushé is a mining engineer, with nearly 40 years’ experience in the mining industry. He is a
director of Western and Eastern Platinum in South Africa, and he really is responsible for the
production of the CAR report. He looks after mechanisation and automation, group security, group
human resources and training, and housing.

Dr Mel Mentz is a medical doctor with a lot of experience in the mining industry. He is in charge
of all our medical services on the mine. He has been the main driver, deviser and implementer of
our HIV/AIDS programme. He has 13 years’ experience in healthcare in the mining industry.
2003 Corporate Accountability Report                                                            Lonmin

Charles Kendall comes from a human resources background. He is the manager of our
Community Development Trust in South Africa, and also looks after all of our housing. His main
responsibilities are to develop and establish the Lonmin Community Development Trust, which
really is a holding vehicle for most of our CSR programmes. Charles has 18 years’ experience in
the mining industry, and 15 years in the human resources management field. Our team here today
are experienced and knowledgeable.

My name is Peter Ledger, and I am the Managing Director of Lonmin Platinum in South Africa. I
am also a mining engineer by background, with 30 odd years in the industry. I am also an
executive director of Lonmin plc, having been appointed in November 2002.

III.    Pressures and Expectations
In recent findings, the World Economic Forum has reported that business leaders in all industry
sectors throughout the world today face unprecedented economic pressures, political uncertainty,
and increasing stakeholder expectations. Indeed, it goes on to say that geopolitical uncertainty
shows few signs of abating, and non-traditional business risks, from international terrorism to
climate change and HIV/AIDS, continue to grow in quantity and complexity. At the same time,
failures in corporate governance and ethics still dominate the headlines, and trust in business and its
leaders remains low.

In Lonmin, we are not immune to these pressures and expectations, with our operations currently
centred in South Africa, and our most senior leaders based here in London. Indeed, the
ever-changing political climate in southern Africa, the plethora of new legislation in our republic,
the increasing prevalence of HIV/AIDS and the heightened frustrations of our black population,
with their perceived lack of delivery on basic needs, such as electricity, water, sanitation and
healthcare, present us perhaps with more than our fair share of these challenges and expectations.

The question that we need to answer for you is: are we, at Lonmin, up to meeting these challenges?
I hope, in the brief time that we have together today, that we can assure you that we are, and that
we are well on the road to ensuring tomorrow today, which is the title of our CAR report this year.

IV.     Ensuring Tomorrow Today
We believe this motto – ‘ensuring tomorrow today’ – describes the vision integrated into all that we
are doing in the fields of health, safety, environment and social management at Lonmin. We do
what we do today to make sure that the business will be here tomorrow, by securing our licence to
operate. What we do today will impact on our future – socially, environmentally and
economically. To ensure a sustainable business, we need a licence to operate from employees,
local communities, regulators and shareholders. To attain our licence we have to integrate
sustainability into everything that we do. One such challenge is the changes in the legislative
environment in South Africa, of which are many. There are something like 1,000 new laws that
have been promulgated in South Africa since 1994, many of which affect us in the mining industry.

At Lonmin, we believe that compliance with legislation is a minimum requirement, and we will
implement practices, and achieve performance that is in line with best practice internationally.
Other challenges will be to foster communication and partnerships with our stakeholders, to pursue
our CSR programme, and adopt the philosophy of eco-efficiency in natural resource consumption,
that will not only benefit the environment, but will save costs.

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2003 Corporate Accountability Report                                                           Lonmin

With regard to communication, those of you who have read our report will see that Lonmin was
honoured this year when we won the Best Board Communication award for
non-FTSE 100 companies at the Investor Relations Magazine UK awards. We believe that, by
integrating sustainable development into our business practices, we have now moved from a once
short-term focus to a more holistic, longer term approach, ensuring that, tomorrow, the future will
be a good one for our mining industry, despite the myriad challenges facing us.

What I have said was summed up recently, very appropriately, by Vernon J Ellis, the international
chairman of Accenture. He said, ‘good corporate citizenship can clearly lead to improved business
performance, but focusing only on a direct business case is, perhaps, too narrow. It is about
building and maintaining the intangibles, such as reputation, trust, employee pride and morale, that
represent an increasing part of the value of a company.’

V.      People
People are our most important asset. The people we affect are, amongst others, our employees, the
communities where we operate and, ultimately, our shareholders. We strongly believe that, by
fostering relationships that are built on trust and mutual respect for each other, we will continue to
operate in a social environment that values our citizenship. We regard CSR as part of our overall
business ethos, and aim to invest in developments that are both sustainable today and for future
generations. That means that our emphasis is not only on investing money, but rather on
opportunities that will create and build economic and social wealth and, in the long term, empower
our communities to be self-sustaining.

I would like to break at this point, to show you some things we are doing on CSR, and to give you
some more insight into that.

[Start of video presentation]

VI.     Lonmin Community Development Trust
Lonmin – not just a global leader in platinum production, but an innovative trendsetter, with
ambitious, aggressive and sustainable corporate social investment programmes, all channelled
through the Lonmin Community Development Trust. Focus is clearly controlled through the trusts
for strategic divisions – housing development, skills development, business development, and rural
development.       Operating not only in the areas around our mines in South Africa’s
North West Province, the Trust is also active in other areas in southern Africa, such as
Mozambique, Lesotho, and the Eastern Cape, where our miners come from.

Developing sustainable accredited programmes through partnerships with Government and the
private sector, the Lonmin Development Trust aims to improve the quality of life for not just our
employees, but for everyone in the communities our people call ikaya - home. Many in these
communities suffer through poverty, poor infrastructure, or lack of relevant skills and knowledge.
In radical moves, which often set the very standards for others in the mining industry to follow, the
Lonmin Trust’s aim is to help eradicate poverty, create jobs, educate and train, and to provide

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2003 Corporate Accountability Report                                                               Lonmin

1.      Housing Development

It is in housing development that much of Lonmin’s US$15.8 million poured into corporate social
development, or CSR, in the three years since the new millennium started has been spent. In all,
more than US$8.9 million has been spent on housing, and our aim, well on the way now to being
realised, is to build 2,800 units in South Africa’s North West Province, close to our mines, by the
year 2005. Over 1,100 new homes, often the family’s first, have been handed over in the main
township, known locally as Boitumelo, which means ‘happiness’.

To help address the threat of AIDS, Lonmin’s Western Platinum mine has initiated the conversion
of hostels into family homes, with the aim of producing a stable, healthy and happy workforce.
The Lonmin Trust has also reached out to the community, by providing nearly US$635,000
towards the building of 650 more homes for local destitute people who are not employees of the
company. This project is a good example of the effective partnership which has been created
between the Rustenburg local municipality, the community and the Lonmin Trust.

Infrastructure in and around the Trust’s housing developments is being carefully nurtured by the
Trust. Small businesses are flourishing, removing the need for residents to go into faraway cities
for their needs. The theme running through Lonmin’s CSR programmes is ‘care and development’,
no more pronounced than at the Lighthouse Children’s Centre, a real home, in the proper sense of
the word, for babies and children orphaned by AIDS. The support Lonmin gives the shelter makes
it possible for the lives of these little local people to be filled with so much love that the shelter has
become world famous, with many of these kids finding adoptive parents as far away as Sweden and

2.      Skills Development

Through skills development, the Trust is providing for the future, sponsoring a crèche close to the
mines for 120 pre-school children, staffed by six accredited teachers. Many of the children
attending the crèche at the Kanya Salani Centre in the Eastern Cape are AIDS orphans, but by
providing good education, Lonmin is investing in a sustainable future, and eventually potentially
creating a more educated workforce. Confidential, impartial and free HIV and AIDS counselling is
also open to all here, and supported by the Trust. Lonmin has also helped make this complex into a
step down centre for company employees who cannot work anymore through injury or illness such
as AIDS. Those who need counselling to adjust to life back at home, possibly with a terminal
disease such as AIDS, are given the best possible assistance here, with care, support, and love.

Education and training on AIDS is also freely available at Lonmin’s Sedibeng Centre, situated in
the middle of one of the company’s housing projects, and initiated by Lonmin’s Karee mine, which
is right next door. Here, specialized confidential counselling is available without charge. The core
values of the Trust concerning skills development, education and training, have been brought to the
fore at the mine township of Boitumelo. The company is building a US$635,000 school to enable
local learners to receive a full and accredited education without travelling long distances. Nearby,
non-indigenous trees, which otherwise would be cut down and their wood thrown away, are being
turned into furniture in a Trust-supported, sustainable initiative. With local unemployment
reported to be as high as 80%, Furntrain is turning unemployed people into carpenters, so that they
can fend for themselves, turning the handicapped into arts and crafts teachers, so that they can
educate others how to make a living out of handicrafts.

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2003 Corporate Accountability Report                                                        Lonmin

3.      Business Development

One of the trust’s key phrases, ‘ensuring tomorrow today by delivering today’, motivates
everything we do in business development. In the North West, in partnership with the Bojanelo
District Council, the trust is creating sustainable projects, particularly for women, in the Botiki
Brickmaking Project. After just four weeks of operation, the formerly unemployed here are turning
out up to 4,000 bricks a day. The trust is also supporting chicken farming, to provide more jobs
and food for the community, and the company helped turned more land into fields to produce
chillies. The local soil is so good for this crop that whole truckloads of so-called ‘Lonmin’s
chillies’ are sold throughout South Africa, and there is no an ambitious project underway to create
a dynamic co-op scheme, to distribute local farmers’ produce nationally and internationally. At the
Itireleng Farming Project, run in partnership with the local tribal authority, the
Rand Afrikaans University, and the Eastern Platinum mine, with the Lonmin Trust, new jobs have
also been created, and booming sales of vegetables reported.

4.      Rural Development

We pour energy into our rural development division, because it is here, in miners’ home areas in
Mozambique, Lesotho and the Eastern Cape, that there is an urgent need to appreciate the value of
sustainability in projects, and to promote self-worth. The situation in Mozambique is typical.
‘Poverty, AIDS and water supply for the population is eventually a big problem that affects the
community around the areas where we operate.’

The Lonmin Development Trust tries, through our rural development division, to deliver a
sustainable future in all the projects we endorse, working in partnership in miners’ home areas,
with facilitators The Employment Bureau of Africa, known as TEBA, and Government. ‘We know
that our partner is improving the quality of life through our workers, through our Mozambican
people working in South Africa, and helping here relatives to have better conditions of life in
Mozambique’. ‘I share Lonmin’s ideals, and their goals and objectives, by saying that you actually
have to teach someone how to fish, and not to give him fish.’

In Mozambique the trust does not supply fish. We have provided hundreds of hoes and other
farming implements to better work the land. We have advised what crops grow best in particular
soil, and donated seeds and fertiliser. The trust, with its partners, has provided inspiration and
employment where, before, there was little hope, fewer jobs, and little food.

Pumped irrigated water and better managed fields helps now to feed 5,000 in Chabuto and gives
miners’ families pride. Near Marokwena, the trust has provided more farming tools to a communal
banana farm, so massive that it stretches to the horizon. Productivity has radically increased.
These bananas are sought after in markets through Mozambique, and the project supports 8,000
people. Irrigation is provided by the Trust through multiple pumps such as ones in Lesotho. Here,
a past harvest yielded just over US$100 income. In just three months, the Trust and its partners
have helped change that to more than US$6,000, and the next crop will be even more profitable.
Everything growing here has already been sold while it is still in the seen. ‘Tonight, when I close
my eyes in my bed, I can go on my knees and say “Thank you, Lord, I made a difference today”. I
know there are people that were going to bed hungry last night. Tonight the whole family has been

In the Eastern Cape, this former miner says he used to struggle with a small plot. Now the Trust
has provided sufficient irrigation for this farmer to grow crops on a field the size of two soccer
pitches. 500 families participate in Lesotho home garden schemes, guided by the Trust and its

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2003 Corporate Accountability Report                                                             Lonmin

partners, benefiting an estimated 2,500 people, and providing food for sale the whole year round.
In the Eastern Cape, just a year ago, the Trust installed electricity for an irrigation pump at a stream
at Tabankulu to help on land worked solely by young people. Now, the local municipality has
entered into partnership with the Trust to provide high-tech greenhouses which feed off the pumped

Helping to provide an answer to the question of the future for workers who leave the mines, the
Trust supports 2,000 Lesotho sheep farmers, all of them former farmers. With inoculation assisted
by us, lamb mortality has dropped from more than 80% to less than 2%. The Trust helps care for
35,000 robust sheep, and it is projected that that number will double by the end of 2004. Here,
South African farmers cross the border regularly to transfer their agricultural skills to their Lesotho
colleagues. It is an emotional moment when the South Africans applaud these ex-miners’
achievements with their prize livestock. The trust even helps farmers find buyers for their wool.
This farmer says this scheme has helped him by teaching him to look after his animals, and by
assisting him in selling wool, so that he can live.

At Manyisa in Mozambique, we have assisted in upgrading over 30 village water boreholes.
Village secretary Alberto Mambane says life has changed as a result. He adds, ‘we used to have to
carry water from more than 6km away from here.’ In Lesotho, the rural development division
supports a mobile repair shop for boreholes and, with it, a scheme through which villagers are
trained to maintain boreholes themselves. Chief Tanes Matiso-Kobete needs know encouragement
to ululate with delight, as fresh water is returned to her area.

South Africa’s Eastern Cape is a dry region. For most people, access to clean water is an
unaffordable luxury, but look closely. On the top of a remote mountain, the Trust is at work. We
have placed mist catchment nets at several schools which previously had no water. At this school,
at Kwakene, previously learners had to climb more than 1km down a mountain to drink from a
stream, and share it with pigs and other animals. Now, ingeniously, more than 400 litres a day of
water is literally caught out of the humid air in our nets. Simply using gravity, the water runs
through a sand filter, and provides irrigation for crops, and drinking water for the region’s largest
future asset – our children.

In Lesotho, the Trust has brought electricity 14km to four schools and a clinic. Teaching by
satellite, and fresh water, have become a reality in this remote area. We have installed proper
sanitation facilities at 15 schools in the Eastern Cape. Here at the Etheridge Junior Secondary
School in Bizana, parents are using supplies donated by the Trust to assist in building even a toilet
facility for handicapped children. More than 1,000km from Lonmin’s mines, our Trust is providing
water, the source of life, to children.

In Lesotho, this is the toilet a handicapped former miner had to try to access. Now, the trust has
provided ramps and special ablution facilities. In each home area, now matter how remote, the
Trust works in partnership with TEBA to provide home-based care for the terminally sick. This
former Lonmin miner is suffering from HIV/AIDS. He is visited regularly and continuously at his
mountainside home, and he is provided with medication, advice, and fellowship. In many cases,
this type of care is so successful that patients are turned back from the brink of life, to a point
where some can even go back into the working community at home. The Lonmin Trust is driving
forward in partnership with Government Integrated Development Plans – IDPs - and donor
organisations, always taking into account community needs and stakeholders’ interests. The
Trust’s guiding principles are sustainability, empowerment, that projects should be
environmentally-friendly, that education projects should be accredited, that every project should be

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2003 Corporate Accountability Report                                                          Lonmin

designed to create social upliftment, and that everything the Trust is involved in should be
enhanced through partnerships.

‘The biggest asset we can offer partners who wish to come onboard with us is good corporate
governance.’ Mining companies in South Africa can no longer ignore the need for meaningful
corporate social investment. Lonmin has been delivering on its investment into its communities for
more than a decade, long before the relatively recent prospect of prescriptive legislation. The
bottom line is that it makes good business sense, while ensuring our licence to operate. In
everything we do, we are ensuring tomorrow today, by delivering today.

[End of video presentation]

Peter Ledger

I think the messages speak for themselves. Most of us take it for granted that, when we wake up in
the morning, we can turn our tap on, turn the light switch on, and have a bath and use the toilet.
Many people in our country and in the surrounding areas do not have that. If every company in
South Africa did their bit along the same kind of lines as we are trying to, we would end up making
a huge difference in a very short time.

V.      People

1.      Adult Basic Education & Training (ABET)

We envisage creating and sustaining a learning culture within our organisation, with the intention
of developing our employees to achieve excellence and global competitiveness, individually and
collectively. In addition, the newly adopted mining charter in South Africa clearly states that every
employee should be given an opportunity to be literate and numerate within the next five years.
Our current low literacy levels, however, encumber this vision, and we have had to review and
change our strategy to effectively increase that portion of our workforce that is categorized as
functionally literate. We define functionally literate as a candidate in possession of a recognised
ABET level three or grade seven, or other equivalent general and further education and training
qualification - I believe, in England, that would be the end of your primary school – which has
equipped the learner with the ability to communicate in English and use mathematics in real-life

This definition implies that 66% of our employees are not functionally literate. A revised ABET
strategy supports the South African national education imperatives, including the requirements of
the mining charter. Our strategy is strongly founded on the principle ABET to an employee’s
career path, and since we have introduced this new approach, we have literally been inundated with
volunteers for ABET enrolment. Our target is to train 50% of our employees to be functionally
literate by the end of 2007, and clearly to continue beyond that, trying to get us, ultimately, to

In order to achieve this, we have to educate 16%, or approximately 3,200 of our employees over
the next four years, at a rate of about 800 per annum. This is comparative with the number of
students that have enrolled both full-time and part-time in the ABET programme over the past
three years. The focus for the next four years will be on part-time students, because we want to
integrate the ABET programme with their career paths, and make it easy for anyone to attend a
course without causing major upset to their normal routines.

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2003 Corporate Accountability Report                                                          Lonmin

2.      HIV/AIDS

We are extremely committed to the effective management of the incidence and impact of
HIV/AIDS. We believe that we now understand, better than most, the real and serious threat that
HIV/AIDS poses to South African society at large. 154 of our employees died due to HIV/AIDS
last year, with a further loss of about 115 employees due to AIDS incapacity. These are employees
who are no longer fit to work due to the progression of the disease. Regrettably, the number of
deaths due to HIV/AIDS, compared to other causes, forms a very large percentage of the whole.

To ensure that our intervention efforts are sustainable in the longer term, last year we conducted a
comprehensive financial modelling exercise. This was done after we conducted a very large,
anonymous and voluntary HIV prevalence survey. Approximately 11,000 employees, representing
60% of our workforce, participated, and the results projected a 25% prevalence in our company.
We believe this was one of the largest surveys of its kind undertaken by a company anywhere in
the world. To achieve a 60% voluntary turnout for an exercise of this kind was considered,
previously, impossible to do.

We took that very accurate model, where we now knew our prevalence, and we put it into a
well-tried and tested financial model, developed by the Actuarial Society of South Africa over a
number of years, and used extensively in South Africa for modelling. One of the things that has
grabbed shareholders’ attention is that there has been a perception that HIV/AIDS could lead to a
Doomsday scenario in the company, and to financial ruin. I think that the financial modelling that
we have done proves that we do not really have to worry from that point of view. We do not have a
Doomsday scenario, although it is very serious. Our model showed that HIV prevalence will peak,
around 2006, at 26%, and that AIDS deaths will peak around 2011, if we do not supply
anti-retrovirals, and 2016 if we do provide anti-retrovirals. The long time lag in between is the
result of the delay between HIV infection and the onset of sickness and death. It also showed that
prevalence will drop again, below 20%, once again around 2011, as a result of the extensive
interventions that we have put into place over the last five or six years, and which now includes the
supply of anti-retroviral therapy.

The additional costs, going forward, and as predicted by this model, including the provision of
anti-retroviral therapy, we have estimated to peak at around $6 per PGM oz in 2011. Even if we
have this horribly wrong, and we are two or three times out, it does not show us a Doomsday

We have worked very hard at our HIV/AIDS programme, and our efforts were rewarded on
3 December last year, when Lonmin Platinum was announced the overall winner of the
National HIV/AIDS Awards for 2003, hosted by the African Heritage Foundation Trust. These
awards are presented in recognition of the contribution made by individuals and organisations
towards the fight against HIV/AIDS.

3.      Safety

We have no other target than to aim for zero fatalities. Unfortunately, last year, we still had six
fatalities, relative to 11 in 2002, which can be seen as a major improvement, but we have to reach
zero. On the positive side, we remain well below the platinum industry fatality rate. One of our
mines, for the very first time, last year, went fatal-free for the full year. In fact, it went on to
achieve over 3 million fatality-free shifts, and one of our other mines, the Eastern Platinum, also
achieved double-millionaire status during the year. Safety will remain a major focus area for us,
and we remain committed to achieving zero fatalities.

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2003 Corporate Accountability Report                                                          Lonmin

4.      Employment Equity

This is a cornerstone of the new mining charter in South Africa, and a cornerstone of improving the
overall standard of training and education in our workforce. We have to do that with previously
disadvantaged South Africans who lack training. We have made very good progress toward our
employment equity targets, and we are achieving these targets results partly from a strong drive
towards legislative compliance, and hence our licence to operate, but we firmly believe in
promoting human diversity, providing the equal opportunities without discrimination, and
empowering our employees, as we clearly state in our charter and our employment equity policy.

A major challenge that faces the male-dominated mining industry is to meet the target of 10% of
females in our mining operation by 2006, as required by the charter. On a positive note, although
we only have 2.3% of our workforce at the moment constituted by women, our middle and senior
management have 6% women in them.

VI.     Prosperity

1.      Wealth Distribution

We support the socio-economic transformation of South Africa, and espouse the associated
legislative changes. The requirements of the South African broad-based black economic
empowerment bill that was promulgated in 2003 proposes a legislative framework for promotion of
economic transformation, that seeks to empower rural and local communities, develop employees,
and reduce income inequalities. We have progressed well towards meeting the requirements, and
we are well on the way to the transfer of equity to HDSA partners.

We address the economic dimension of our sustainability performance in terms of the value we
have added, the financial health of the company and the management of financial risks to ensure
sustainable growth in the future.

2.      Procurement

Procurement is a vital part of the transfer of wealth within South Africa to previously
disadvantaged people. Part of that drive is to ensure that historically disadvantaged individuals and
companies are effectively included in our supplier base. This year we placed approximately 24%
of our total procurement with companies meeting the BEE criteria. Black-owned companies have
more than 50.1% ownership, black empowered companies have more than 26%, and black
influenced companies have 5-25% ownership. We are trying to move and encourage our suppliers
to be more orientated towards black-owned companies.

VII. Our Planet
We are proud to announce that all our units in Lonmin Platinum are now ISO 14001 certificated.

1.      Eco-Efficiency

Total water consumption, excluding water supplied to local communities, increased by 18% year
on year, to 9.4 million cubic metres, mainly due to the higher demand resulting from production

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2003 Corporate Accountability Report                                                            Lonmin

increases. The intensity rate, or cubic metres of water used per PGM oz produced, decreased from
5.5 to 5.3 last year. We are aiming to reduce that number as we go forward.

Water in the North West Province of South Africa, where our Lonmin Platinum operations are
based, is a scarce commodity, and we have set targets for this year to develop detailed water
management plans that will include the setting of targets for source management, efficient use, and
waste load control. We have also set an overall company reduction target of 10% per PGM oz by

2.      Energy Consumption

Total energy consumed increased by 38% in 2003, compared with the previous year, whilst the
intensity rate, unfortunately, also increased by 14%, to 3.2 GWhr per PGM oz. This is a number
we intend to look at and do something vigorously with this year. We all know that this is a major
contributor to greenhouse gases, with energy consumption in South Africa through a lot of
coal-burning, and diesel and petrol fuels.

3.      Pollution

We commissioned the SO2 fixation plant in July 2003, at a cost of some US$24 million. Suffice it
to say that a very large improvement has occurred since we commissioned that plant. We continue
to have some teething problems. You always build these plants based on what you see elsewhere,
and there are always some unanticipated problems that you have to change afterwards. We need a
97% availability of this plant, and one of the reasons we have not really achieved that to date is
mainly due to unexpected wear and tear in the plant, which we are busy addressing.

4.      Rehabilitation

Closure liability is a discipline and field that continues to attract attention. We completed our first
closure cost estimate in 2001 that then indicated our closure cost to be in the region of
US$20 million. This was based on a number of assumptions that were sound at the time, but we
recognise that we have to take another very close look at this number. We have revised it on a
number of occasions, but Ricus is bringing us some additional skills in that regard, and we are
going to look very closely at that this year, to make sure we are providing adequately for final

5.      Biodiversity

This is another area where we have looked long and hard at what we have done in the past, which is
not a lot. We have realized that if we do spend time and effort on concepts such as biodiversity,
then we must not only enhance our knowledge on the subject, but it must make business sense, and
it must be something that all our employees can understand, and see where it fits into our business.
We initiated a research and development project around the Middelkraal Dam, on
Western Platinum mine, called the Middelkraal Dam Conservancy. Many of the trees there are
alien species which we aim to remove, as part of the biodiversity project, and we will probably
have them chopped into fine wood shavings and placed on top of the dam, to ultimately turn into
compost and prevent windblown dust off the dam. That will become a research and development
area for biodiversity.

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2003 Corporate Accountability Report                                                             Lonmin

VIII. Probity

1.      Corporate Governance

The principles of good corporate governance are now well-known. However, the challenge to be
met is ever-increasing, and focus is now placed on addressing non-traditional issues, a few of
which I will touch on now.

2.      Transparency

There      must    be    transparency    on     Government      payments,      covered     by   the
Extractive Industries’ Transparency Initiative, or EITI. Lonmin fully supports the aims of this
initiative, and we will be honest and transparent about all our dealings with Government, both
central and local. We will continue to comply with all the requirements of best practice, both here
in the UK, and in South Africa. Processes and policies are only as strong as the culture in which
they operate. During the year, we have adopted a code of ethics, and also introduced the
Lonmin Charter, which includes integrity and honesty as the first of our corporate values.

Human rights is the bedrock on which everything rests. Our policies have been drafted in fully
accordance with the UN Declaration on Human Rights, especially important in connection with our
security operations. During the year, we had to comply with many of these changes on human
rights, to retain our FTSE For Good accreditation listing, and we did that successfully. The right
balance has to be struck between preserving the right to life and dignity, to which we are all
entitled, whilst enabling us to protect our shareholders’ assets in a fair and reasonable manner.

3.      Good governance

Good governance starts in the boardroom if it is going to succeed. We have designed our approach
to governance on a cascade basis, with each party having a material part to play. The board cannot
devise policies in the level of detail needed to meet everyday operational needs; however they can
set broad frameworks in the context in which we operate – a moral tone, if you like. The role of
senior management is to set out and train into our business policies and standards, to which
everyone must aspire. More than this, the role of management is to live these policies themselves,
and lead by example. Operational management must develop working procedures and cultivate
practices which ensure that the broader vision can be realised.

4.      Policy Framework

Our policy framework sets out the hierarchy of responsibilities I have just described. The charter
is, in many ways, the least prescriptive, but most important aspect of the entire framework. From
the broad statement of visions and values, all of the increasingly detailed the levels of policy and
procedure are derived. This is not to say that the charter is perfect - it is a document that will never
be finished, as it will always need to evolve with the changing business climate in which we

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5.      Charter

The charter governs our vision, and identifies the values that we are committed to. These values
encompass integrity and honesty, trust, respect for each other, valued citizenship, performance,
safety, health, and environmental excellence.

6.      Human Rights

We have taken positive action to ensure compliance with the UN Declaration. Recognising and
respecting the basic human rights of our employees, contractors, and the communities in which we
operate, is one of the values that we commit to in the Lonmin Charter. We feel that we have
managed successfully to address a fundamental issue, and are delighted that this has been
recognised through continued membership of the FTSE For Good index.

IX.     Future Developments
We have embarked on an ambitious programme to develop safer production methods, and
technology to take us into the future. The equipment is designed to suit our specific and unique
conditions, and will assist in taking employees out of higher risk occupational health and safety
areas of the mining process during the normal production process. This links with our theme, for
the presentation of ensuring tomorrow today, and illustrates how we have integrated the philosophy
of sustainability into everything we do. The equipment development is best illustrated if you can
see the equipment in action, and we will therefore play a very short video to illustrate what we are

[Start of video presentation]

1.      ARM1100

This is the ARM1100, a machine which cuts through hard rock, and which is one of the new pieces
of equipment at the centre of Lonmin’s mechanisation and automation, or M&A, strategy. The
company is continuously and aggressively looking at ways to reduce the level of exposure of our
employees to hard, arduous and dangerous work practices. We are also driven by the need to seek
alternative mining methods, and to try to manage the loss of skills and manpower caused by the
HIV/AIDS pandemic. Lonmin is also looking at ways to attract young, talented people back into
the mining industry, as well as bringing our working practices into line with international
benchmarked standards of practice.

The ARM1100 assists in achieving all of these objectives, as well as helping us change operations
from performing cyclic drill and blasting techniques, to the preferred fully-operational, non-cyclic
continuous mining situation. Proven coal cutting technology has been used in the development of
the ARM1100. Components have been innovatively re-engineered to suit the narrow hard rock
platinum reefs, often less than 1.1m high. The machine is operated by remote control, by an cross-
skilled employee with both engineering and mining skills. The operator is removed from the
immediate rock face, away from potential danger, and has vast communications at his disposal

The system used here to extricate platinum, namely cut hanging wall conditions, is far superior to
hose based on traditional blasting. Detailed comparison of these issues is ongoing at this time. The
cut rock from the face is transferred into a mechanical loader. The ARM1100’s design and

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operating procedures are aligned to Lonmin’s M&A strategy, and transfer into a safer and more
efficient workplace.

2.      Drill Loco

The drill loco is another example of adapting proven technology in an innovative manner. The loco
uses battery power to move along existing tracks in our mines, and does away with the need to use
costly and inefficient pneumatic-driven components, by using electro-hydraulic techniques for
drilling. Again, the drill loco both removes the operator from the potential danger of the rock face,
and makes the miner’s job easier.

3.      ULP Equipment

The ultra-low profile, or ULP, fleet of equipment is a world first, progressively produced through a
partnership between Lonmin and manufacturer, Sandvik. ULP machines are uniquely developed to
fit the narrow hard rock platinum reefs. Our fleet of ULP machines includes a roof bolter. With it,
the operator remotely drills a hole, and the machine mechanically torques the roof support to the
correct rating. The ULP face drill also enables the operator to work by remote control a safe
distance from the rock face. The ULP machine delivers consistently higher hole accuracy,
resulting in greater productivity and improved safety.

4.      ULP Scoop

The ULP scoop is ergonomically designed with a multi-skilled operator in mind. Safety levels
have been improved, with the ULP scoop in line with internationally accepted work practices. The
results created with the help of these machines are projected to be most dramatic. Our goal is to
radically change mining methods and improve working conditions by reducing the use of
traditional hand-held mining methods over the next decade.

[End of video presentation]

Peter Ledger

That concludes our presentation, and we will take questions.

                                  Questions and Answers

1.      Mike Tyrell, HSBC

I have a couple on the environmental side. Can you explain why the energy use is increasing? A
water management plan was one of your goals for 2003. It is now your goal for 2004. Can you
explain what did not happen in 2003, and why it is going to be different in 2004?

Ricus Grimbeek

I will deal with the second question first. The plans that were developed in 2003 mainly focused on
getting quantities of water per source, and we did that, and that is what we can report. The other

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2003 Corporate Accountability Report                                                            Lonmin

thing is we need to understand far better the type of sources that we use, and also recycling. We
have not done that today, and that is why the plan for 2004 will include water recycled as well.

The reason why the energy increased that much is, firstly, the production increase by 23%, so that
will have an effect on the electricity we consume, but secondly there was an understatement on the
diesel consumption in last year’s figures, and this year we included the diesel consumption for the
open cast, and that caused the diesel consumption to increase by about 1,000%, which is why the
38% is not really in line with the 23% production increase.

Peter Ledger

One of the big things we have found in trying to get our corporate accountability programmes on
the go was we really underestimated how long it would take us to get our database together. That
is starting to happen, and that is why, for instance, as Ricus said, you get a situation where you
understate the amount of diesel in one year relative to the next. We need a good and accurate,
reliable database, which we are starting to get together.

2.      Anna Krutikov, Isis Asset Management

Firstly, in the EITI, have you issued a statement of formal support for the principles? Secondly,
have you considered joining the membership of the ICMM?

Ricus Grimbeek

That is quite an easy answer. It is yes to both.

3.      Richard Stathers, Schroder Investment Management

I just want to pick up on the water management issues that Mike mentioned earlier. I was reading
in your report about the effluents, and how the Section 21 exemptions have expired in January, and
you are reapplying for them now. Could you say a bit more about what these exemptions are from,
and how they align with your participation in catchment management forums, and your future
water management strategy?

Ricus Grimbeek

The exemptions that we mentioned are not what you would normally think of as an exemption. It
was really the licences that we had to use water. That did expire at the end of January, but the
South African Department of Water Affairs have still not devised the latest version of what the new
licences should look like. We have some ongoing meetings with them to make sure that we are
proactive in that respect, so that we do not end up losing our water licences, and that is also part of
the water management programme, to make sure we comply with the latest thinking from the
Department of Water Affairs.

Ed Goushe

The exemption is from having a current water permit until such time as they issue us with the new

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2003 Corporate Accountability Report                                                              Lonmin

4.      Toby Belsom, Morley Fund Management

I wanted to ask you a black economic empowerment question. Could you explain how far you are
along the lines in terms of meeting the phase one and phase two targets in terms of equity
ownership, but also the diversity of employees and senior management, and particularly how the
deal you announced in early September on Lonplats fits into those targets?

Edward Haslam

The announcement that we made on the transaction [inaudible] in the solution, or the compliance of
the equity participation. You rightly identify that as being two stages. Phase One is 15% of the
equity to be in the hands of historically disadvantaged South Africans within five years, and 26%
within 10 years. For completion of background, the clock has not started yet on either the five or
the 10 year period. The law is promulgated, but it has not yet been gazetted, so the timeframe has
not actually started. Against that background, we are, with the Incwala deal, there is no absolute
certainty as to what percentage of equity we could expect from that, or indeed Impala could expect
from that. All I can say to you is that, upon completion of the transaction, which is still expected
around the end of February, Lonplats will, de facto, have an 18% HDSA partner, and therefore, de
facto, will comply with the requirement if it started at that time. It is all about the application for a
new order mining licence, which we will be required to do within five years of the starting time,
and I have no doubts at all that we will conform to those requirements within that five year period.

Peter Ledger

There are three other cornerstones to the charter. One is education, training and development of
previously disadvantaged South Africans, and we are required, in the charter, to have at least 50%
of our management coming from previously disadvantaged groups within five years of
promulgation. We will easily do that. On page 35 of the report, you will see that we are already at
those targets. We want to improve our percentage in the middle and senior management ranks, but
we are already there at the 50%. We will easily comply with that, and we want to comply with it.

The other one is procurement. As you heard earlier, about 24% of our purchases last year went to
black owned or partly black owned companies. We have a plan to improve that fairly dramatically
over the next three years, and we are pretty confident we will comply with the charter in every

With regard to our corporate social programmes, I think we gave you enough information today to
convince you that we are very proactive in this field. We do not believe that we are lagging any
other mining houses in this regard, and in fact we think we are leaders.                        The
Department of Minerals and Energy holds us up, very often, as a benchmark in the industry. For
instance, our training centres are regarded as a benchmark in the industry. I think we were the first
mining company in South Africa to have accredited trainers. We are utterly confident that we will
comply pretty easily with the requirements to renew our licence.

5.      Rob Lake, Henderson Global Investors

I would like to go back to safety. The final video you showed is clearly a response to some of the
safety challenges which you referred to in the presentation, but, as we heard on the commentary,
that is a 10-year investment programme in new capital equipment. In the mean time, could you go
into more detail on some of the other training or awareness raising or whatever other programmes

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you are putting in place to address those lost-time injury frequency and fatality figures which you

Ricus Grimbeek

Firstly, if you look at the basic elements of the safety management system, we are in the process of
implementing internationally recognised standards OHSAS 18000 at all our operations. A number
of operations are already certified to that standard. If you really want to achieve zero fatalities and
zero incidents, you have to focus on the behavioural side of the process, and that will be one of the
focus areas in the next year or two, through visible leadership and a very much focused approach
on behaviour- understanding why people do things, and re-designing our systems around that.

6.      Rob Lake, Henderson Global Investors

So this is something that is under development at the moment, rather than being fully in place with
targets and formal plans for that dimension of it?

Ricus Grimbeek

It is definitely in place, and I am sure that if you look at our compliance to international standards
such as OHSAS 18000, the company will be fully compliant within the next year or two. On the
behavioural side, there is no tick box to say you have done it all. It is very much an education
process and a leadership issue

7.      Katie Gordon, Cazenove Fund Management

If your use of energy is increasing, what are you doing about looking at sourcing energy from
cleaner energies, such as solar energy? Going back to the water question, when are you planning to
have the database completed? What are you doing to motivate other South African companies to
follow your examples with relation to the BEE charter?

Ed Goushé

Unfortunately, the national grid is locked into a source of power that uses fossil fuels. We have
spent some time looking at alternative power sources, and we would be supporting a professor at
Accra University who has come up with a very cheap way of manufacturing solar panels. We
would be looking at that in terms of equipping all of our housing and village needs with that type of
energy source. We were also somewhat amazed to see, at the Centre for Alternative Technology,
in Wales, that there were numerous examples that we could put to good use within our operations;
for instance, the Pelton wheel, where we deliver, off the top of a fairly high mountain down to our
operations, a large volume of water. We could put that to good use as well.. We will be
investigating all of this. Wind is certainly something that we will have a look at in South Africa,
because we have fairly high hills in and around our operations. We would certainly look at putting
something up there. This is all fairly long term, other than the solar panels. South Africa is blessed
with lots of sunshine. We are certainly hoping that that will pay dividends.

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Ricus Grimbeek

On the water management database, I am glad to say we have already done the first quarter of
information for this current financial year. We are in the process of auditing that to make sure the
data is of good quality. Definitely by the end of this financial year, we will be able to give you
some good information on water.

Peter Ledger

We have a full-time job motivating within. We deal a lot with, and talk a lot to, other mining
companies. We are constantly sharing ideas, and it is an ongoing process. For instance, Mel has an
ongoing relationship with Anglo Platinum and Impala on our HIV/AIDS programmes. There is
much overlap and sharing of information there, and motivating each other in terms of doing
something that you see them doing. It is an ongoing process.

8.      Jane Henshaw, Legal & General Investment Management

Following on from what Katie was saying, you mentioned earlier that if every company did the
kind of corporate social investment things that you are doing, they could make a bigger difference.
You mentioned motivating other companies and them motivating you, but would there be any
scope for formal or informal partnerships in any area of corporate social investment within South
Africa?    Secondly, on HIV/AIDS, your corporate accountability report talks about wellness
management programmes and voluntary testing. Could you say more about that?                   What
percentage of your employees take up that voluntary testing, and what proportion of infected
employees enrol on wellness management courses? What kind of effect is that having?

Charles Kendall

On the CSR, you will recall that one of our guiding principles is partnerships. It is a major drive
within the Trust to get partnerships. We are in the process of talking to people such as Xstrata and
Samancor - these are companies in our area – to form synergies. They are also very positive and
we believe that, together, we can make a bigger difference than what we can do on our own.

Peter Ledger

There is one very ambitious project we are looking at at the moment, which, if it comes off, will be
a partnership. You saw earlier some of the agricultural projects we have on the go. If this one
comes off, it will be a massive project. We have the land, and the people that will be our partner
have the technology. They are an Israeli organisation, and we think there is massive potential for a
very prosperous, large farming project in that area. However, it is still in the process of being
developed, and we hope to bring it off.

Charles Kendall

There are already a number of existing programmes and partnerships with Government. You have
seen the schools. There are numerous projects with Government – the housing projects, under the
Adjustment of Destitute People initiative, where Lonmin got involved with Government to build
those 650 houses, which are for destitute people in the community, not our employees.

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Dr Mel Mentz

On the employee wellness programme, there is probably two sides to it. One side is awareness
about HIV/AIDS, and encouraging people to have voluntary and testing, and we offer these
facilities. A good indicator there would be the number of employees presenting themselves for
HIV testing. The second part would be the wellness management, or medical management, of
those employees who we already know are HIV+. That really stretches from emotional support
through to anti-retroviral treatment, which is quite an intensive medical treatment programme.

9.      Katie Gordon, Cazenove Fund Management

I wondered if you had noticed whether there had been a positive effect from those employees who
have enrolled on wellness management programmes, and whether it has extended their productive
life and had a good effect on the company. What proportion of infected employees is enrolling? Is
it something that people are willing to be involved in, or is there a stigma attached to it?

Dr Mel Mentz

It is still early days. We have certainly seen changes in patients. I do not think we are able yet to
assess the impact of this on the company, but certainly on individuals, even with anti-retroviral
therapy within Lonmin and within the industry, the drugs have proven themselves to make a huge
difference, but most companies are only starting these programmes. We will learn with time, but I
am sure it will have a beneficial effect, not only on individuals, but on the company per se.

10.     Rory Adams, Standard Life Investments

To what extent has the achievement of health, safety, social and environmental internal targets is
reflected in management remuneration?

Peter Ledger

Safety is reflected in remuneration targets for all management. We have an annual bonus system
on our mines, and safety is one of the core targets in that system. On the environmental area, the
attainment and retention of ISO 14001 is a target every single year, and has been. It was a target to
achieve it, and it is now a requirement to maintain it.

Rory Adams

Is that an interim remuneration?

Peter Ledger

It is part of the bonus system.

Rory Adams

Is your social and community work measured in any way?

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Peter Ledger

Employment equity was a target from last year, and is a target again this year. Each and every one
of our units has a detailed employment equity plan, year by year, and those plans were made some
years ago. They are refined every single year, and each unit is expected to attain those targets in
the year. We normally do it on a negative basis. In other words, it is seen as a requirement to
achieve it. If you achieve it, you do not get more bonus, but if you do not achieve it, we take away
from the bonus you have earned.

11.     Richard Stathers, Schroder Investment Management

I would like to continue on the remuneration. I notice that safety performance comes under the
operational side of your remuneration package, and environmental and other performance issues
come under the strategic side, which you list as subjective assessments. Firstly, what are the
indicators you use on the safety side of things – is it fatalities or lost-time injury frequency rates?
Now that you have quantitative indicators on some of the environmental issues, can you shift that
into the operational side of the remuneration package? Also, just to clear my mind, I was working
out the employees’ salary, and I noticed it has increased by 90% from 2002 to 2003. Has my maths
gone wrong, or could you explain that?

Peter Ledger

In terms of the increase in salary, it is a number of items. Firstly, the South African rand
strengthened considerably, so that had a major impact on the conversion to dollars. We have had a
larger number of employees in service this year. We have had salary increases during the year.
Finally, we had a very good bonus payout last year for the achievements well above our targets in
our division. As an example, we had a target last year to do 870,000 oz of platinum, and we did
930,000. We also did pretty well on the costs.

Our safety rate last year, expressed in terms of fatalities per million man hours worked, was
comparable with the 10-year Australian mining industry average. If you compared us only to the
underground mines in Australia, we were considerably better.

In terms of safety, we tend to focus on fatals, and the fatality rate. We believe that is the ultimate
expression of whether all you do in the safety field is working or not. We do not like working on
lost-time injury rates. People can work the system, whereas you cannot with fatals. It is very
difficult to hide a dead body, and excuse the expression. That is what we focus on, and that is the
most important measurement. If you are doing everything right, you will not have fatals.

12.     Richard Stathers, Schroder Investment Management

On the remuneration point, you say it is equally split between platinum production, production
costs control and mine safety performance, so if you missed your zero fatality target, then a third of
executive’s 65% remuneration package and a third of the senior managers’ 80% remuneration
package is not recognized.

Peter Ledger

Could you say that again?

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2003 Corporate Accountability Report                                                          Lonmin

Richard Stathers

Because the target was missed last year, you say there is equal weighting amongst the operational
side of the remuneration package to safety, platinum production -

Peter Ledger

I did not say equal weighting. They are all included in the bonus package. Safety, production and
costs are included amongst other things in the bonus package. The ultimate target and the absolute
ideal is to have zero fatalities. In a unit where you have 15,000 people underground at any one
time, we pay extremely good bonuses for any mine that achieves zero fatals. For instance,
Western Platinum last year scored very well on that, because they went a whole financial year
without a fatal. We also try to have a balance. If a mine has a fatal early in the year, we do not
want them to know that there is no chance of any bonus on safety for the rest of the year. We want
to keep them motivated. We have a graph in terms of fatals and fatal rate.

13.     Rob Lake, Henderson Global Investors

You report that your average number of creditor days for payment went up between 2002 and 2003
from 18 days to 27. Could you comment on how that fits within your overall procurement strategy
that you were talking about, and trying to move more towards black owned local suppliers, but at
the same time increasing the payment times to suppliers?

John Robinson

Disclosure in the statutory accounts is in relation to Lonmin plc, which is primarily the company in
London. That is not a statistic that relates to the payment terms that you are referring to, which is
the payments on the mine. Frankly, in a movement from 17 to 23, there is relatively little in the
way of expenses incurred in London. That movement would probably just have been one particular
creditor. Unfortunately, it does not give you the measure.

Rob Lake

(Narrative inaudible, but question relates to BEE procurement policy)

Ed Goushé

One has to understand, as well, that there is a huge capital programme ongoing on the mine. We
are sinking a large number of shafts which are very capital intensive. We have a number of
vendors who probably, when they come onto our vendor list initially, the payment probably is not
as prompt as we would like, or they would like, and I think that would go a long way to explaining
that. At this point in time, there is no distinction we can make between a black empowered
company that has become a vendor, and any late or early payment to them. They are treated
exactly the same as anybody else. We will try to make sure that our procurement policy is
followed in terms of making sure we move towards black empowered companies, and making sure
that, where we can, our procurement policies are given out to black empowered companies, or one
of the combination of black empowered companies that Peter mentioned earlier.

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14.     Simon Abrams, Jupiter Asset Management

What proportion of historically disadvantaged people you would have at middle and senior
management levels within Lonmin currently? Do you have a target to increase this? Is it at all

Charles Kendall

Currently 19% of our senior and middle management consist of previously disadvantaged people.

Simon Abrahams

Is there a target to increase that? What’s the internal management for that particular issue?

Charles Kendall

In terms of our employment equity programme, we are trying to achieve 50% over the next
five years. We are well on our way there. We are confident that we will achieve that.

Peter Ledger

Our plan is to grow, in middle management, from a current 20%, to over 30% by 2005, and in
senior management to go from about 6-7% now, to about 15% by the end of 2005. These are not
vague plans. We have the people in place, on development programmes, at universities, and at

Ed Goushé

Where we have a problem is on the requirement of having more than 10% of our employees being
women, and you will appreciate why.

15.     Katie Gordon, Cazenove Fund Management

Could you articulate what you, as a company, believe are you three most significant impacts, your
three most significant risks, and your three most significant opportunities that are arising out of
corporate social responsibility?

Edward Haslam

(Answer in audible, but Mr Haslam indicated that he would not be able to answer such a question
without careful consideration)

16.     Anna Krutikov, ISIS Asset Management

Could you comment on your biodiversity programme? Your report says that you are planning to
develop a set of guidelines on biodiversity in the coming year. Could you explain what the key
considerations for this would be, and specifically what your position is on your exposure to world
heritage protected areas, and how biodiversity is going to be implemented into the environmental

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management systems? Could you talk about things like training and responsibility for it within the
current structure?

Ricus Grimbeek

In the presentation we said that this year we are going to look at biodiversity slightly differently.
There is no sense in implementing these types of concepts if all the employees in the organisation
do not understand how it fits in or how relevant it is. On the one hand, we are quite lucky, because
we have no sensitive areas that we are mining on, but where we going to look at biodiversity in the
future is to integrate that into our rehabilitation programme, because we need to understand how we
are going to rehabilitate the areas that we disturbed in the open cast areas, and also the impact that
we have on watercourses, and how we are going to rehabilitate them in the future. The idea would
be a very practical approach. We showed you the area that we identified. We call it a conservancy,
but it is really a big research project where we are going to take out a lot of the alien trees. We
have some areas in that identified space that are disturbed areas, and we will carry out research to
understand how we are going to return the biodiversity to its original state in the future, in a
cost-effective way as well. On the training side, because it is so hands-on, we can take even
illiterate people to this site, and we can show them what the difference is between a disturbed area
and a rehabilitated area.

17.     Mike Tyrell, HSBC

Just to confirm that your exploration activities are covered under the same management system or

Peter Ledger


Mike Tyrell

Not covered by the CSR programme.

Peter Ledger

Are you talking about external to South Africa?

Mike Tyrell


Peter Ledger

They are so minor at the moment. They really are very much grass root programmes at the

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Ed Goushé

If they became anything major in the future, and perhaps had a lot to do with daily management,
then we would start to make our presence felt in terms of it. The question was a little bit
ambivalent at the moment, because they are very small projects at this stage.

Peter Ledger

Ladies and gentlemen, thank you very much for your attendance today, and for some very good
questions. If any of you would like to add to the questions, please direct them through Teresa
Heritage. Thank you very much.

    This Full Transcript was produced by Ubiqus Reporting (+44 (0) 20 7749 9100)

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