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					SO C IA L A N D E N V I RO N M E N TA L R EP OR T




Introduction                                                      Foskor, the ore contains magnetite,uranium,
Palabora Mining Company (Palabora) commenced                      zirconium, gold,silver, platinum,palladium and
operations in 1964 and is a member of the                         nickel.The smelting process also yields
worldwide Rio Tinto group. Palabora is located near               significant quantities of sulphuric acid. Palabora
the town of Phalaborwa in the Northern Province                   supplies copper rod to the local market and the
of the Republic of South Africa,and shares a border               rest is exported in the form of copper cathode.
with the world-famous Kruger National Park game                         Vermiculite occurs in a separate orebody
reserve.                                                          that is in the same geological complex as the
     The company mines and produces copper and                    copper orebody, and Palabora is a market leader
by-products from a large open-pit mine.Since the                  in the production and sale of vermiculite.
first anodes were cast in 1966, a total of 3 775 603                    The Company makes a significant
tons of copper has been extracted.In 2002,open                    contribution to economic development and
pit mining will cease and Palabora will focus on                  employment in the area. In the five year period
underground mining.                                               from 1995 to 2000 Palabora paid R1 422 million
     One of the features of Palabora is the variety               in direct salaries, wages and benefits to
of by-products that are released in the copper                    employees, R5 096 million in local services
recovery process.Apart from phosphate,which is                    (contractors,suppliers, water, power) and R573
supplied to the neighbouring phosphate producer                   million in corporate taxes.




Our SHEQ management system                              5   Teacher upgrade, mathematics olympiads
Safety                                                 5    and science expositions                                           27

Health                                                 11   School governance                                                 27

Environmental management                               15   Library project                                                   28

Air pollution                                          15   Business development                                              28

Water management                                       17   Co-operatives                                                     29

Ecology and land                                       18   Adult technical skills training                                   29

Radiation                                              19   Community projects                                                31

Energy and Waste                                       19   Disaster relief fund                                              31

Socio-economic issues in the company’s                      Targeted projects 2001                                            32
area of operation                                      23   Community environment initiatives                                 32
Education                                              23   Kruger National Park project                                      32
Early childhood education                              24   Eco Clubs                                                         32
Mathematics and science                                24   Conclusion                                                        32
Master mathematics                                     24   Recognition of partnership arrangements                           32
Programme for technological careers                    25


                                                                  PA L A B O R A M I N I N G C O M PA N Y L I M I TE D • PA G E 1
     safety at
André Grundling
General
Manager SHEQ




Left. Industrial theatre staged underground to promote safety
awareness.
Ceiling                  Performance      Ceiling
2000                     2000             2001
Fatalities               Fatalities       Fatalities
Zero                     2                Zero
LTIR                     LTIR             LTIR
0.28                     0.42             0.19




       Thin electroplated copper sheets are being
       separated from their titanium “starter sheets” in
       the tank house.
SO C I A L A N D E N V I RO N ME N TA L R E P OR T
continued




OUR SHEQ
MANAGEMENT SYSTEM



Palabora's large and complex operations and its unique
location present significant challenges which require
an innovative and pro-active approach to safety,
health,environment and quality management. In
response to these challenges, the company has
successfully developed and implemented an integrated
Palabora Safety, Health,Environment and Quality
(SHEQ) management system based on the Rio Tinto
minimum requirements, ISO 14001 environmental
management system and ISO 9002 control system.
                                                         Pa l a b o ra
SAFETY
The safety of employees and contractors,above
production,costs and schedules, remains the foremost
business priority during the year. The goal of the
Company is zero injuries. Palabora fully accepts the
moral and legal responsibility for the safety of its
employees and contractors and promotes the
imperative that all must work in such a manner as to
                                 safeguard themselves
                                 and their fellow
                                 employees.
                                       Palabora has
                                 developed a
comprehensive and highly effective system over the
years,which includes extensive training of
management,supervisors, safety representatives and
workers.
       As an equal opportunity employer, the company
established a variety of participative structures on
issues that affect employees.Agreements with the
National Union of Mineworkers (NUM) and the
National Employees Trade Union (NETU),make
                                                         Top. Wearing prescribed safety equipment during a fire-drill.
provision for participation and representation of all
                                                         Bottom. All employees and contractors are subject to Palabora’s
workers in the Palabora safety system.                   safety and quality standards.



                                                                PA L A B O R A M I N I N G C O MP A N Y L I M I T E D • P A G E 5
S OC I A L A N D E N VI R ON M E N TA L R EP O RT
continued




                                                                                                         The rescue and fire
                                                                                                         team burning alien
                                                                                                         vegetation
                                                                                                         eradicated from the
                                                                                                         mine property.




                                                                        To lower both the rate of on- and off-the-job
                                                                safety incidents, Palabora has identified a need for a
                                                                culture change towards safety. To facilitate the drive in
                                                                achieving this and the goal of zero injuries,an
                                                                intensive programme has been developed with a focus
                                                                on: -
                                                                • placing safety and health first in all business
                                                                   activities,
                                                                • zero tolerance for unsafe acts and,
                                                                • team effort,with the involvement of all.


PA L A B O R A M I NI NG C O M PA N Y L I M IT E D • PA G E 6
SOCIAL AND ENVIRONMENTAL REPORT
continued




        Integral to the success of this programme is the    of 50% in the safety performance of 2000. In order to
direct involvement of management in the daily               meet this,once again, tremendous challenge, a set of
application of The-Safety-Talk-Process (STP),the            safety standards recognised throughout Rio Tinto has
development of personal safety plans for everyone,and       been introduced.These standards are amongst the
the recognition of good safety performance by               highest in the industry. The concept of zero-tolerance
employees and contractors.The same standards and            will enhance the application of the minimum
procedures apply to employees and contractors alike.        standards at Palabora.
        Strong leadership commitment, centralised                 Targets for 2001 reflect the firm commitment
training and employee involvement will assist in            towards achieving this culture change and meeting the
bringing about this culture change.This is facilitated      challenge of eliminating injuries at work altogether.
through hazard identification and risk assessment
(HIRA), increased participation by health and safety
representatives, and greater individual and group
recognition for outstanding performance.
                                                                                            Palabora’s commitment to
        The year 2000 started off with a firm commitment                                    safety is constantly
to improve the overall safety performance of 1999 by                                        monitored throughout the
                                                                                            mine.
50%.This posed a tremendous challenge
to management and employees considering the
continuous efforts to move to a smaller Palabora.
Management of safety through the principles described
above had to be supported with various initiatives to
ensure sustainable progress.Initiatives with regard to
mobile machinery, general awareness and off-the-job
                                safety were implemented
                                in phases to maintain the
                                momentum of culture
                                change.Industrial theatre
                                played a major role in         Apprentice
conveying the message in each division.The industrial        boiler-maker
                                                                Frederick
plays were developed to be customised for each part of
                                                            Mashile wears
the "total" operation and enabled employees to              correct (PPE)
                                                                 Personal
associate the hazards portrayed in the play, with their
                                                               Protection
own work situations.                                          Equipment.

        With reference to the lost time injury graph, the
50% improvement is illustrated in the number of lost
time injuries suffered in 2000 compared to 1999.The
objective for 2001 is again set at achieving a reduction




                                                                    PA L A B O R A M I N I N G C O M PA N Y L I M IT E D • PA G E 7
  health at




Left. A patient undergoes an ECG (electrocardiogram) in the
Palabora Mining Clinic.
Target 2000          Performance          Target
2000                 2000                 2001
To intensify the     • Aids steering      Maintain high
AIDS awareness         committee          level of AIDS
programme.             created            awareness
                       awareness.         among
                     • Home safety        employees and
                       and aids           community.
                       awareness play
                       presented to
                       employees and
                       community.
                     • Peer education
                       group created..
                     • Participated in
                       World Aids Day.
To enhance the       Occupational         Focus on
Occupational         Health Strategy      reduction of
Health Strategy      was reviewed,        occupational
for Palabora.        approved and         hearing loss.
                     implemented.

To enhance the       New employees        Implement drug
alcohol policy to    are tested for       policy.
include drugs.       drug misuse.
                     The inclusion of
                     drugs in the
                     alcohol policy is
                     still under
                     negotiation with
                     the unions.


A staff member undergoes rehabilitation under the strict
supervision of nursing staff at the Palabora Mining Clinic.
S O CI AL A N D E N VI R O N ME N TA L R E PO R T
continued




A pro-active and responsible health management
programme is a pre-requisite to an efficient and
profitable mining operation. Palabora is firmly
committed to providing suitable health care and offers
employees and their families preventative,curative and
rehabilitative medical facilities.
        A fully equipped clinic rendering a 24-hour
service on the mine is staffed by a full time medical
doctor, radiographer, professional nurses and a




                                                              Pa l a b o ra
laboratory technician.A day clinic at Namakgale
operates primarily as a family health care centre.
Health education, with a strong focus on AIDS
awareness, is undertaken by the medical department.
Fully trained emergency teams are on 24 hour standby,
to assist with emergencies such as accidents, fire and
chemical spills on and off-site.
        All employees and contractors are required to
undergo medical examinations upon joining the
company and furthermore, to undergo regular medical
examinations throughout their employment with
Palabora.Medical examinations are also carried out
when an employee leaves the company.
                                     Potential occupational
                             hygiene and health hazards
                             are monitored by a team of
                             environmental health
                             specialists. Levels of
temperature,ventilation,noise, illumination,dust,
hazardous substances, gases and radiation are
governed by various Acts such as the Mine Health and
Safety Act and the Occupational Health and Safety
Act. Palabora conducts regular surveys, tests and audits
to ensure relevant compliance with Palabora,South
African and International standards.
        Employees are provided with suitable personnel
protection equipment (PPE) to minimise the risk of            Top. Sister Ewald uses the latest equipment to measure the lung
                                                              functions of Fanios Phoekane. Bottom. Nurse Peter Legodi of Palabora’ s
working in potentially high exposure areas.
                                                              Occupational Health Division checks the eye sight of contractor Ronny
                                                              Sondiane.



                                                                      PA L A B O R A M I N I N G CO MP A N Y L I M I T E D • P A G E 1 1
    e nv i ro n -
        ment
              at




Left. A waterbuck oblivious to its surroundings casually walks
across a main road that leads to the heart of the mine.
 Target 2000                  Performance     Target
 2000                         2000            2001
 SO2 at Station 2
 <20ppb                       21 ppb          <20ppb
 Sulphur Capture
 >75%                         68%             >77.5%
 Raw Water
 Consumption
 <48Ml                        43 Ml           <47 Ml
 Personal Radiation
 Exposure
 <15mSv                       14.8 mSv        <13 mSv
 ISO 14001
 Retain certification         Certification   Retain
 certification                retained        certification
 ISO 9002
 Retain certification         Certification   Retain
 certification                retained        certification




          Warthogs feeding on the Hans Merensky
          golf club course.




An elephant happily negotiates its path around the offices
at the Cleveland management complex.
S O CI AL A N D E N VI R O N ME N TA L R E PO R T
continued




Environmental Management
Palabora is a neighbour to South Africa’s biggest eco-
tourist attraction, the Kruger National Park.The impact
of the company’s operations on the surrounding
environment is closely scrutinised by government,
environmental groups,the National Parks Board and
the local community.
        The nature of the company’s complex operations
impact on the surrounding environment to various




                                                          Pa l a b o ra
degrees. For this reason Palabora has a progressive and
pro-active environmental management system that
commits the Company to undertaking mining activities
in an environmentally caring manner.
        In 1998 Palabora became one of the first mining
companies in South Africa to comply with the
requirements of the ISO 14001 environmental
management system.During 2000, Palabora was
audited twice by the South African Bureau of
Standards (SABS), and continued to comply with this
management system.
        Significant environmental issues monitored and
controlled by Palabora include air pollution, water
pollution and consumption,land disturbance and
                             radiation. Due to the
                             complex nature of the
                             operations,only the most
                             important impacts are
                             discussed,including air
pollution, water pollution and consumption, land
disturbance and waste management,more information
on other significant impacts can be obtained from the
mine.


Air pollution
The most obvious environmental impact occurs as a
result of the copper smelting process. The copper
concentrate contains sulphur and in the process of        Top. Looking across mine property into the Kruger National Park.
smelting, sulphur dioxide (SO 2) gas is released.         Bottom. Hippos in the Olifants River which adjoins the mine.



                                                                 PA L A B O R A M I N I N G CO M PA N Y L I M I T E D • P A G E 1 5
      S OC IA L A N D E N VI RON M E NTA L R EP ORT
      continued




                                                                         Right. A converter
                                                                         furnace with newly
                                                                         fitted primary and
                                                                         secondary extractor
                                                                         hoods for the removal
                                                                         of fumes.
                                                                         Bottom. Magnetite
                                                                         slurry being pumped
                                                                         into a magnetite dam.




Air quality specialist,                                                               reductions in SO 2 emissions largely result from the
Lance Moodley, of the
environmental division                                                                upgrade of the acid plant in 1998 and 1999 and the
checks an intake                                                                      reduction of smelting operations when climatic
manifold of a gas
analyser at one of the
                                                                                      conditions create high ground level SO 2 concentrations
monitoring stations.                        One of the several monitoring             in urban areas.
                                            stations that continuously
                                                                                               The installation of new water-cooled primary
                                            monitors environmental and
                                            atmospheric conditions around             hoods over the three converter furnaces during 2000, at
                                            the mine.
                                                                                      a cost of R29 million was delayed due to design faults.
      To reduce the SO2 emissions to the atmosphere,                                  This was the main contributing factor in not achieving
      Palabora operates an acid plant that converts SO2 to                            a ground level concentration of 20ppb.
      sulphuric acid.This is sold as a by-product to the local                        The new hoods will now be installed during early 2001
      industry, thus creating more jobs.                                              and will decrease the amount of fugitive emissions
                  Palabora continuously monitors SO 2 emissions                       substantially when completed.
      from its stacks and ground level SO 2 concentrations in                                  Greenhouse gas emissions are a global
      nearby urban areas.The latest computer modelling                                environmental issue.At Palabora these emissions,in
      technology allows environmental specialists to predict                          the form of CO 2, arise from coal burning in the smelter
      SO2 concentrations in residential areas.This system is                          furnace.More significant, however, is the company’s
      used as a pro-active management tool to minimise                                indirect contribution to such emissions through
      exceedences by reducing smelting operations until the                           electricity consumption.A slight increase in indirect
      cause of the exceedence can be ascertained and                                  CO2 emissions is anticipated between 2000 and 2002,
      corrected.                                                                      as a result of ramping up of underground mining
                  The company’s performance in reducing its SO 2                      activities in addition to existing surface operations.This
      emissions is measured against the national annual                               is expected to drop again once the open pit and other
      guideline limit of 30 parts per billion (ppb),as well as                        identified surface operations cease.
      Palabora’s internal target of 20ppb for 2000.Recent                                      With the extension of the life of the mine, a
                                                                                      decommissioned magnetite stockpile (magnetite is an


      PA L AB O R A MI N I N G C O M P AN Y L IM I TE D • P AG E 1 6
SOCIAL AND ENVIRONMENTAL REPORT
continued




Iron Oxide ore which constitutes approximately 30%        Palabora has put in place a well-defined water
of the mined ore) has been re-activated to supply         management programme.The water management
storage capacity till end of mine life. Palabora was      programme was compiled taking cognisance of wider
unable to effectively keep the beach area of this re-     catchment issues including the expectations of the
activated dam wet due to the high evaporation rate,       community, industry and downstream users of water.
and when hot days have been followed with high                    The company is committed to reducing its fresh
wind conditions,this has resulted in dust being blown     water intake requirements by placing greater
from the beach areas.This dust has not only been a        emphasis on using recycled, lower quality water where
concern on the property but also off the site and         possible. During 2000, water intake was 43 Ml/day,
members of the community have complained about            well below the internal ceiling of 48 Ml/day.
magnetite dust fall-out on their property. A number of            Palabora normally maintains a closed water
immediate actions were taken to pr event this spread      circuit. Due to the heavy rainfall (1 in 100 year rainfall
of magnetite dust, these include:                         event) experienced early in 2000, Palabora were placed
• Flooding the beach area of the dam using standby        in a water positive situation. With the approval of the
    water lines and water carts during high winds.        Department of Water Affairs and Forestry and in
• 8.5 km of windbrakes was installed on open              compliance with a release permit that was issued to
    beaches that liberate dust.

                                                                                                Top. Hippo in one of the
                                                                                                tailings dams. Bottom. The
                                                                                                return water dam with the
                                                                                                mine in the background.




                                                          The
                                                          Loole
                                                          weir.


• Dry areas on beaches and access roads were
    sprayed with a binding agent.
• The capping of an inactive part of the beach, which
    has been scheduled for 2001, has been brought
    forward.


Water management
Effective water resource management is a critical issue
for South Africa. Due to the semi-arid location,
Palabora is particularly aware of the value of this
scarce and precious natural resource. To this end


                                                                  PA L A B O RA M I N I N G CO MPA N Y L I M IT E D • PA G E 1 7
SO C IA L A N D E N VI R ON M E N TA L R EP O RT
continued




            Scene from the top of vegetated waste rock dump.




                                                                                                                     A herd of buffalo
                                                                                                                     leaping over the
                                                                                                                     main return water
                                                                                                                     pipe used to return
                                                                                                                     recycled water back
                                                                                                                     to the process.


                                                                    Vultures feed in the
                                                                    Cleveland Nature
the mine,excess water was released to the Olifants
                                                                    Reserve.                A vervet monkey resting with her
River, which was in flood during the time. No                                               baby.
detrimental effect on the environment was detected.
        An extensive groundwater monitoring system has                 and allow these facilities to blend, as far as possible,
been developed across the mine and computer                            into the surrounding landscape. A self-sustaining
groundwater models are used to assess the impact of                    indigenous vegetation cover on the waste rock dumps,
seepage on the groundwater system. In 1998 a 4,2km                     tailings dams and other disturbed areas is Palabora’s
long seepage collection trench was constructed on the                  ultimate land rehabilitation objective.
eastern perimeter of the tailings dam facility to                              During 2000 rehabilitation work focused on the
intercept shallow seepage and return it to the process                 repair of damage caused by the flood event earlier in
water stream.                                                          the year. All the damage was successfully repaired.It is
        During 2000 an average of 4 Ml/day was                         planned to rehabilitate 10 hectares in 2001.
recovered in the trench. Due to the re-activation of the                       Closure is an inevitability faced by all mines and
magnetite dam, the existing trench is to be extended by                Palabora has developed a detailed closure plan.
approximately 500 meters to the north around the                       The purpose of this plan is to achieve Palabora’s
existing dam during 2001.This will increase the                        environmental management objectives and to obtain
amount of captured seepage.                                            final closure approval for the entire mine site in an
                                                                       environmentally and socio-economically responsible
Ecology and land                                                       manner. That the final closure of the mine will entail
Palabora is concerned with its natural environment                     significant costs,is well realised.A decommissioning
and the living organisms within it.The rehabilitation                  fund is in place to cater for this requirement and
 of polluted and/or disturbed land to a condition                      Palabora contributed R3 748 711 during 2000 to this
as close to that which existed before operations                       fund.
started,is fundamental to the environmental                                    During October, Palabora, in partnership with
management system.                                                     Birdlife International and their local representatives –
       The revegetation of waste rock and tailings dams                the Phalaborwa Birdclub – participated in a local
is an ongoing operation,intended to minimise erosion                   birdwatching event.Employees, their families and


PA L A B O R A M I N I N G C O MP A N Y L IM I TE D • P A G E 1 8
SOCIAL AND ENVIRONMENTAL REPORT
continued




                         Yellow billed
                                   crane




Equipment is decontaminated
at the decontamination facility.




                                                                Impala and a lone baboon share the greens on the golf course.




                                                           constructing radiation shields,preventing a build up of
                                                           radioactive scale in pipes and equipment, ensuring
                                                           adequate ventilation and removing dust sources.
                                                           Operational initiatives such as employee rotation
                                                           rosters, access control and safe work procedures are in
                                                           place to minimise the risk of workplace exposure.

members of the birdclub identified 168 bird species on
the mine during the event with a total of 218 identified   Energy and waste

during the year.                                                Palabora addresses energy consumption through
                                                           its operational procedures, to optimise cost and

Radiation                                                  environmental impacts.

Ammonium di-uranate (a uranium compound) is                     The smelting operation generates enough waste

recovered in the heavy minerals plant.This results in      heat to operate a power plant which produces

the concentration of radioactive minerals and the          4 megawatts (MW) of electricity, thereby reducing

occurrence of enhanced radiation levels in some            Palabora’s external electricity requirements. In addition,

process plants. Palabora is controlled by regulations,     the refinery generates steam via coal-fired boilers

set by the National Nuclear Regulator (NNR),which          which is used to heat the electrolytic cells.

ensure that employee and public exposure to radiation           In the process of ore benefaction, Palabora

is kept to within 50 millisieverts (mSv) per annum.        produces a large quantity of industrial waste including

In fact Palabora measures itself against the more          process tailings, waste rock,metallic scrap, domestic

demanding standard of 20 mSv set by the International      waste, sewerage and hazardous waste.

Commission on Radiation Protection (ICRP).                      Recyclable waste is returned to a dedicated facility

        A radiation protection monitoring programme        on the mine where items such as metals, glass,paper,

that monitors source levels and exposure doses of          oils and wood are sorted and recycled. Process wastes

employees in designated areas, is managed by qualified     such as tailings and waste rock are disposed of in

and trained personnel.Although radiation exposures to      engineered repositories under the daily management

employees have always been below the statutory limits      of the mine. Hazardous waste,mostly consisting of

prevailing at the time, the downward trend bears           non-recyclable oil sludges is drummed and disposed to

witness to Palabora’s dedication to continuously find      a nationally approved landfill operator. In total,

ways to further reduce radiation exposure levels.          Palabora disposed of 39 tonnes of non-recyclable

        Palabora has reduced exposure levels over the      hazardous waste during the year.

years by engineering out problems at source through


                                                                 PA L A B O RA M I N I N G CO MPA N Y L I M IT E D • PA G E 1 9
    socio-
economic
 issues at         We, the undersigned, representing
                   community stakeholders as
                   specified below, certify that the
                   following report is a fair reflection
                   of Palabora’s communities socio-
Hugh Rix
Director           economic initiatives in the period
Palabora
Foundation
                   under review.

Community                Name             Signature


Lulekani             E Ngobeni
                     Nafcoc
Makhushane           G Malatji
                     Deputy Chief
                     and Councillor
Masheke              M Malatji
                     CDC Secretary
Mashishimale         M Mphekgoane
                     Tribal Secretary
Majeje               J Machimau
                     Deputy Chief
Makhuva              B Mongwe
                     CDC Chairperson
Namakgale            I Masekwameng
                     Nafcoc
Phalaborwa           P Z Khomo
                     CEO Ba-Phalaborwa
                     TLC
Selwane              Bishop Malatji
                     Senior Tribal
                     Councillor


Left. This successful block and brick making project is part of the
Titirheleni Womens Project, funded by the Palabora Foundation.
The Titirheleni Garden Project teaches farming skills and
facilitates community gardens. Here villagers plant maize
at the Ben Farm Community garden after their crops were
destroyed in the devastating floods of early 2000.




Middle. Fridge magnets and brooches made from wood at
the Palabora Foundation. Bottom. A coping saw is used to
cut wooden animal figures, which will be sold at Tswelopole
Craft Centre.
S O CI AL A N D E N VI R O N ME N TA L R E PO R T
continued




Phalaborwa,like many remote towns in South Africa
has an extremely high rate of unemployment,
exacerbated by a growing population and reducing job
opportunities in the formal industrial sector.
        The Palabora Foundation is the socio-economic
operational unit of the Company that drives all
Company initiatives aimed at sustainable development
in the neighbouring communities. Palabora funds the
Foundation at the rate of three percent of net profit per




                                                            Pa l a b o ra
annum and in 2000 this amounted to R10 million.
        The principles of mutual respect, active
partnership and long-term commitment permeate all
relations between the Company and neighbouring
communities. For this reason consultation with
neighbouring communities is key in deciding
programmes or projects to be implemented.
                             Programmes and projects
                             fall into the following
                             categories:
                                  Education, business
                             development,skills
development, community-based projects including
health and environmental issues.


EDUCATION
One of the legacies of apartheid is poor education
amongst the majority of the citizens of the country.
This translates into a devastating impediment for the
development of technical skills which a mine like
Palabora relies on.
        The Company is addressing the situation in
partnership with the Northern Province Education
Department. The primary focus of Foundation
programmes is to improve teaching skills and
educational performance from pre-school to high
school. Interventions are aimed at creating a pool of       Top. Everyday scenes at the Iketleng Early Learning Centre, another
                                                            successful project of the Palabora Foundation. Bottom. Applying
students with the potential to pursue technical careers.
                                                            water based colours to calico, which will be made up into cushion
                                                            covers at the Tswelopole Craft Centre.



                                                                   PA L A B O R A M I N I N G CO M PA N Y L I M I T E D • P A G E 2 3
SO C IA L A N D E N VI R ON M E N TA L R EP O RT
continued




Early childhood education                                               MATHEMATICS AND SCIENCE
                                                                        Master mathematics
Target 2000             Performance 2000         Target 2001
                                                                        High school students attend extra lessons in
To provide              850 children             To operate
pre-school              attended eight           eight schools
                                                                        Mathematics at three computerised Master
education               pre-schools              catering for 800       Mathematics centres.The programme is competency
for 800 children        operated by the          pupils in line
                                                                        based and students are able to progress at their own
at eight                Foundation.              with revised
pre-schools.                                     government policy.
                                                                        pace with the assistance of qualified tutors.

To provide an           56 schools formed        To continue our
                                                                        Target 2000            Performance 2000        Target 2001
Outreach                part of the              intervention at
                                                                        To increase the        Enrolment               To expand two
programme               Foundation               at 56 pre-schools.
                                                                        enrolment of           targets were met.       centres so that
for 50 schools in       Outreach Project.
                                                                        students from                                  enrolment can
rural areas.
                                                                        225 to 250 at                                  reach 275.
To train at least       60 rural women           To train 50 rural      three centres
50 rural women          were trained as          women in aspects       operated
teachers in how to      pre-school               of pre-school          by the
run a pre-school.       teachers.                education.
                                                                        Foundation.
To build a              Funds were               To obtain outside
                                                                        To improve the         The pass rate of        To improve pass
pre-school for a        obtained from            funding to build
                                                                        pass rate of pupils    pupils improved         rates of participants
rural                   donors to build two      an additional
                                                                        on the programme       by 56% in               by 25% in
community.              rural schools in the     two pre-schools
                                                                        significantly.         all grades.             comparison
                        community and the        in the rural
                                                                                                                       to results obtained
                        schools were built.      community.
                                                                                                                       in 2000.




                                          The Stepping Stones Early
                                          Learning Centre, one of the
                                          many projects of the
                                          Palabora Foundation.




                                                                        A student utilising the Master Maths facilities.




PA L A B O R A M I N I N G C O MP A N Y L IM I TE D • P A G E 2 4
SOCIAL AND ENVIRONMENTAL REPORT
continued




                                                            Programme for technological careers
                                                            The programme provides for intensive additional
                                                            tuition in English, Mathematics and Science to prepare
              Students learning technological subjects as
                           part of the Protec Programme.    students for careers in technological fields.


                                                            Target 2000               Performance 2000        Target 2001
                                                            To enrol                  145 pupils qualified    To enrol
                                                            150 pupils                for admission to        150 pupils on
                                                            on the programme.         the programme.          the programme.

                                                            To ensure that            PROTEC students         To ensure that
                                                            the results of            pass rates              pass rates in 2001
                                                            participants              improved by             improve by
                                                            improved by 25%           56.9% in                25%.
                                                            compared to 1999.         mathematics and
                                                                                      and 34.5% in
                                                                                      Science

                                                            To ensure that            48 Grade 11             To arrange
                                                            Grade 11 pupils           pupils attended a        for all Grade
                                                            attend a leadership       leadership training     11 pupils to attend
                                                            training                  programme at            a leadership
                                                            programme.                Schoemansdal             training
                                                                                      Training Centre.        programme.

                                                            To ensure that at         70 pupils attended      To ensure that
                                                            least 60 pupils in        visits to               75 pupils attend
                                                            Grades 11 and 12          industrial sites.       industrial site
                                                            visit industrial                                  visits during 2001.
                                                            sites during the
                                                            holidays.

                                   Students                 To arrange a              A Winter School         To run two
                                   progress at              Winter School             was held in July        programmes in
                                   their own pace
                                   with the                 in the July               and a revision          school holidays to
                                   assistance of            school holidays           session was held in     help pupils prepare
                                   qualified
                                   tutors.                  for Grade 12              September for            for final exams.
                                                            pupils.                   Grade 12 pupils.

                                                            To facilitate the         9 pupils from            To ensure that
                                                            provision of              PROTEC will receive     deserving pupils
                                                            bursaries                 bursaries for 2001.     obtain bursaries
                                                            for university                                    to further their
                                                            entrance.                                         studies at university.




                                                                       PA L A B O R A M I N I N G C O M PA N Y L I M IT E D • PA G E 25
SOCIAL AND ENVIRONMENTAL REPORT
continued




Teacher upgrade, mathematics olympiads and                             School governance
science expositions                                                    The management of schools in the area leaves much to
The programme aims to improve teacher methodology                      be desired and the Foundation is working with the
and to encourage pupils to undertake projects where                    Department of Education to improve standards of
the theoretical knowledge they acquire can be put into                 school administration.
practice.

                                                                       Target 2000             Performance 2000          Target 2001
Target 2000           Performance 2000       Target 2001
                                                                       To train school         Objectives                To ensure that
To present            260 teachers           To present in-house
                                                                       managers in the         set were achieved.        the training given
in-house training.    attended in-house      training for
                                                                       fields of school                                  during 2000 is
to 200 teachers       training               250 teachers and to
                                                                       finance and the                                   implemented at
                      programmes.            concentrate our
                                                                       role of School                                    the relevant schools.
                                             efforts on 26 schools
                                                                       Management                                        – To provide School
                                             in the areas
                                                                       Committees and                                    Governance training
                                             surrounding
                                                                       to train Learner                                  for a further
                                             Phalaborwa.
                                                                       Representative                                    14 schools.
To increase the       131 projects           To increase the           Councils in the role
number of             were entered in        number of projects        that they need to
projects entered      the local Science      submitted to the local    play in successful
in the local          Exposition.            Science Exposition to     schools.
Science               24 of these projects   150 and to obtain
Exposition            were selected to       10 medals at the
from 84 to 100.       compete at the         National Science                                                  Numerous school projects are
                      National Science       Exposition.                                                            encouraged at an early age.
                      Exposition and five
                      received medals.




                       The Leboneng Public library offers individual
                                                      work stations.




Left. Science teacher Philip Pare demonstrates distillation to Grade
11 Protec students at the Leboneng Education Centre.



                                                                               PA L A B O R A M I N I N G C O M PA N Y L I M IT E D • PA G E 27
S OC I A L A N D E N VI R ON M E N TA L R EP O RT
continued




Library project                                                             BUSINESS DEVELOPMENT
(library in this context means a well equipped air-                         This programme aims to increase the value of goods
conditioned facility where students from crowded,                           and services supplied to major employers in the area
often non-electrified homes can study and have access                       by black empowerment companies.The programme is
to relevant books)                                                          funded by Palabora, Foskor and Fedmis.
            Communities in remote areas do not have library
facilities funded by the government. To address this                        Target 2000               Performance 2000       Target 2001

issue the Foundation operates two community                                 To secure                 Business to the        To increase the value
                                                                            R25 million               value of R34 million   of business placed
libraries,which serve the needs of both adults and
                                                                            of business for           placed with black      with black companies
school going children in the area.                                          previously                companies –            to R50 million.
                                                                            disadvantaged             75 jobs created.       – To establish

Target 2000                Performance 2000       Target 2001               entrepreneurs                                    10 incubator

To continue to             1,600 people           To increase library       and to create                                    manufacturing units

provide library           registered as library   membership by 20%         100 new jobs                                     in partnership with

facilities for the         users and average      in 2001 and to            in the area.                                     the government.

communities of             attendance at the      increase average                                                           – To identify and

Lulekani and              libraries increased     attendance at libraries                                                    reserve certain

Namakgale and             to 75 users per da y.   by 20%.                                                                    contracts for exclusive

to ensure that                                                                                                               allocation to black

the facilities                                                                                                               business.

are utilised                                                                                                                 – To create 100 new

by communities.                                                                                                              jobs in the area.


To increase the            As a result of         To obtain an
supply of library         Foundation efforts      additional
books to the two           5,000 new books        5,000 books for
libraries.                were donated to         the libraries.
                                                                                           This thriving block and brick making
                           libraries.
                                                                                           project was established by the
To sponsor and             A public speaking      To arrange the                           Palabora Foundation.

administer a               competition was        annual public
public speaking            held under the         speaking competition
competition               auspices of             for Phalaborwa
for Phalaborwa            the Foundation.         schools.
schools.




    Windy Malatji, (with green
hat), successfully tendered to
   build the Foundation’s new
               Mashishimale rural
   community clinic. Windy is
    seen with her construction
             team of local people.




PAL A B O R A M I N I N G C O M PA N Y L IM I TE D • PA G E 2 8
SOCIAL AND ENVIRONMENTAL REPORT
continued

                                                                                                                      The Palabora Foundation
                                                                                                                      built a village market in
                       Trainee builder Jonas Nkoane laying bricks at the Skills
                                                                                                                      Lulekani, which was
                                                                Training Centre.
                                                                                                                      donated to the community.
                                                                                                                      Here the Foundation’s
                                                                                                                      Calvin Mashakeng buys
                                                                                                                      fresh produce from one of
                                                                                                                      the vendors.


                                                                                                                      Below. Animal figures being
                                                                                                                      painted by a member of the
                                                                                                                      Tswelopele Craft Co-operative.




            Presentation award
            to Peggy Mkhonto,
                 leader of the
                    Titirheleni
                      Project.




Co-operatives                                                                      Adult technical skills training
The aim of this project is to provide women who are                                The aim of the programme is to train unemployed
unemployed with training in the manufacture of crafts                              people in building and carpentry skills to enable them
and business training so that they can run their own                               to earn a living.
businesses.
                                                                                   Target 2000            Performance 2000        Target 2001
Target 2000                Performance 2000      Target 2001                       To train 100 people    70 carpenters and       To train 100 carpenters
To develop the             Co-operatives have    To relocate three                 in carpentry and       40 bricklayers          and bricklayers and to
technical and              been developed        co-operatives to                  bricklaying skills     were trained.           obtain employment
entrepreneurial            to the point where    their own premises.               and to ensure that     67 carpenters           for 60% of those
skills of                  they can operate                                        50% of them            and bricklayers         trained.
co-operative               with less                                               gained permanent       obtained work           – To offer graduates a
members to                 supervision                                             or temporary           on a full time          course in basic
a point where              than previously.                                        employment on          or part time basis      business skills as part
they can become                                                                    graduation.            on completion           of the programme
independent of                                                                                            of the course.          so that they can start
the Foundation                                                                                                                    their own small
on a phased basis.                                                                                                                businesses.
                                                                                                                                  – Provide specific
To increase the            Turnover increased     To reduce day-to-day
                                                                                                                                  training to an
turnover of the            from R420,000         supervision thereby
                                                                                                                                  additional 50 people
co-operatives              to R570,000.           encouraging
                                                                                                                                  from the community in
from R420,000 to                                 co-operatives to take
                                                                                                                                  bricklaying skills to
R500,000.                                         full responsibility
                                                                                                                                  help them construct
                                                  for daily production.
                                                                                                                                  their houses in terms
                                                 – To increase turnover
                                                                                                                                  of a proposed
                                                  from R570,000 to
                                                                                                                                  government training
                                                  R650,000 per annum.
                                                                                                                                  scheme for the area.




                                                                                           PA L A B O RA M I N I N G C O M PA N Y L I M IT E D • PA G E 2 9
SO CIA L A N D E N VI R O NM E N TA L R EP O RT
continued




COMMUNITY PROJECTS
                                                                       Target 2000              Performance 2000
This initiative assists members of communities who                     Brick & Fence

have demonstrated their commitment to establish                        Making Project
                                                                       To increase the          Earning capacity of Brick and Fence Making
projects on their own. Foundation involvement is to
                                                                       earning capacity         Project increased by 30%. The Brick and
enhance the development of such projects.In line with                  of the Brick             Fence Making Project was identified as the

ensuring that effective consultation is achieved,the                   and Fence                best community project in the Northern
                                                                       Making Project           Provience by Sowetan/Eskom
Foundation held 3 community forum meetings during
                                                                       by 25%.                  Community Project Competition.
the year.
                                                                       Garden Project
                                                                       To increase the          Flood damage,which destroyed the Garden
Disaster relief fund                                                   production and           Project, was repaired and production
                                                                       earning capacity         has recommenced.
Phalaborwa communities suffered severe damage to
                                                                       of the Garden
buildings and properties at the beginning of the year.                 Project by 20%.
Companies in the area instituted a help programme
                                                                       Selwawe
through the Foundation.This was not a planned                          Pre-School
occurrence, but the fact that the Foundation was used                  To build a               The Selwane pre-school was built and
                                                                       pre-school               handed over to the community.
as a vehicle for the initiative, was given high
                                                                       in the Selwane
prominence by the local government, neighbouring                       rural community.
communities and the media.                                             Makhuva Library

Devastation is clearly evident as the floods rage in early 2000 and    To build a library       A community library was erected in the
training at the Titirheleni Garden Centre by the department of         in Makhuva.              Makhuva community and books and
Agriculture.                                                                                    furniture donated to establish library facilities
                                                                                                for the community.

                                                                       Clinics at Maseke
                                                                       and Mashishimale
                                                                       To establish clinics     Two clinics were built and handed over to
                                                                       at Maseke and            communities of Maseke and Mashishimale.
                                                                       Mashishimale.

                                                                       Vendor Market
                                                                       To reconstruct the       A vendor market was reconstructed and
                                                                       market at Lulekani.      handed over to Tribal Authorities in Lulekani.
                                                                                                The local vendors association has taken
                                                                                                charge of the market.

                                                                       HIV/AIDS
                                                                       Awareness
                                                                       Programme
                                                                       To launch an             Agreement with communities,local industry
                                                                       HIV/AIDS                 and the provincial government has been
                                                                       awareness                obtained for the launch of an HIV/AIDS
                                                                       programme in             awareness programme.Preparations are in
                                                                       neighbouring             place to implement plans.
                                                                       communities.
Left. Diamond mesh fence is manufactured and erected by this
productive division of the Titirheleni Womens Project, funded by the
Palabora Foundation.



                                                                                 PA L A B O RA M I N I N G C O M PA N Y L I M IT E D • PA G E 31
SOC IA L A N D E N V I RO N M E N TA L R EP OR T
continued




                                        Right. A collection of leaves from
                                        Namakgale Primary and a highly
                                    visual and interesting project on fish
                                                            (Fauna Park).
                                                                                                   Reading sets the foundation
                                                                                                   for all education.




                                                                             CONCLUSION
                                                                             The Foundation’s five-year plan has been drawn up
                                                                             and appropriate budgets are in place.In the past, the
TARGETED PROJECTS 2001                                                       Foundation was challenged to establish new projects.
Two medical visiting points will be constructed in the                       In future,however, focus may well be developing
remote areas.These visiting points will be used to drive                     community centres around the projects that have been
the AIDS awareness initiatives and provide primary                           put in place,e.g.where a pre-school has been erected,
health care to people who currently have to travel long                      it may be prudent to construct a clinic, a community
distances to receive care.                                                   garden,craft co-operatives and other community
       In addition to this,two other community projects                      enhancement programmes.
that will contribute to the socio-economic                                        Essentially what has to be achieved is growth
development of the area will be identified and                               through exploiting the infrastructure already in
implemented in partnership with the community.                               existence through the work of the Foundation.


COMMUNITY ENVIRONMENTAL                                                      RECOGNITION OF PARTNERSHIP
INITIATIVES                                                                  ARRANGEMENTS
Kruger National Park Project                                                 The Foundation has several partners, amongst them
In collaboration with the Kruger National Park, a                            the Northern Province Government, Non-
programme to eradicate alien weeds in Phalaborwa                             Governmental Organisations, Industrial and
will be implemented.This project will create 13 jobs for                     Commercial Corporations and individuals.
local communities.                                                                Sincere thanks are due to all those that help the
                                                                             Foundation succeed.
Eco Clubs
Eco Clubs have been established at some schools in
the area.Environmental education programmes will be
implemented in the new year at, at least 10 schools,in                       Z W Ntuli
partnership with the Department of Environmental                             Chairman of the Board of Trustees
Affairs and Tourism.                                                         25 January 2000


PA L A B O R A MI NI NG C O M P A NY L IM I T E D • P A G E 3 2
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