African Rainbow Minerals Integrated annual report 2022

  • ARM in 2022
  • Our business
  • Governance
  • Creating, protecting
    and preserving value

Integrated annual report suite 2022

Stakeholders – hot topics in F2022

Our ability to achieve our strategic goals depends on the value we create for others. Equally, the sustainability of our operations requires that we balance stakeholder needs, interests and expectations with those of the company.

Key stakeholder topics and our responses

Shareholders, potential shareholders, analysts and other investors

Topics raised
  • Capital allocation
  • Dividends
  • Perceived discount in trading value
  • Growth
  • ESG matters
  • Project execution risk, particularly related to the Bokoni Mine development.
Response
  • Focus on operating assets efficiently
  • Focus on disciplined allocation of capital
  • ARM’s investor relations department communicates continually with institutional shareholders, potential investors, research analysts and the media in a timely, comprehensive and efficient manner
  • Discussions with management, the board and JV partners to raise awareness of the concerns and expectations of research analysts and institutional fund managers
  • Summaries of decisions taken at shareholders meetings are disclosed on our website after each meeting
  • Transparent and comprehensive disclosures on ESG matters.

Bankers and insurers

Topics raised
  • Merger and acquisition opportunities (bankers)
  • Funding (bankers)
  • Insurance cover and costs (with particular focus on cybersecurity, SASRIA and tailings storage facility cover) (insurers).
Response
  • Responsible management of our financial position to enable ARM to pursue value-enhancing growth opportunities
  • Comprehensive risk financing and transfer programme.
  Refer to page 42 of the ESG report for detailed disclosure on stakeholder engagement and management.

Joint-venture partners

Topics raised
  • Operational strategy and performance
  • Financial performance
  • Environmental, social and performance matters
  • Governance.
Response
  • ARM holds itself to the highest ethical and governance standards in dealing with all stakeholders, including joint-venture partners
  • Continuous and open engagement on operational, financial and ESG matters with joint-venture partners
  • Exco committees and boards include representatives from joint-venture shareholders.

Employees and organised labour

Topics raised
  • Health and safety
  • Safe working conditions
  • Training
  • Remuneration
  • Transformation.
Response
  • Human resources strategies aim to make ARM an employer of choice, including maintaining good relationships with trade unions
  • Commitment to fair treatment and remuneration of employees
  • Focus on skills development and career-planning programmes to assist employees to develop their full potential
  • Recognition agreements with unions where the required representation levels are reached
  • Investing in building a talent pipeline.

Communities, civil society and non-governmental organisations

Topics raised
  • Community needs, including socio-economic development, infrastructure development, employment, support and opportunities for local businesses
  • Status of social projects, operational changes and expansions
  • Environmental issues affecting communities
  • Employment of local community members
  • Service-delivery challenges
  • Transformation.
Response
  • Engaging with communities at specialised discussions/meetings to understand their specific concerns
  • Attendance registers and minutes of engagement meetings
  • Community open days support information sharing and relationship building
  • The ARM BBEE Trust invests in uplifting rural communities across South Africa by partnering with traditional and other community leaders
  • Changes or expansions to our current operations require engaging with interested and affected parties through stakeholder consultation as prescribed by NEMA and other relevant legislation
  • Coordinated industry-level and direct community support during Covid-19.

Government

Topics raised
  • Social investment
  • Health and safety
  • Environmental management
  • Transformation
  • Compliance with governing regulations
  • Regular progress reports and updates
  • Support for government Covid-19 priorities, including the vaccination roll-out.
Response
  • Implementation and monitoring of local economic development (LED) projects
  • Compliance with the relevant safety and environmental legislation
  • Engaging with national government on policy matters as required
  • Regular reports submitted by the operations on social labour plans (SLP) projects
  • Annual mining charter scorecard reports submitted to the DMRE by each mine
  • Coordinated industry-level and direct support for employees, communities and government during Covid-19
  • Vaccinations against Covid-19 continue to be rolled out at five of ARM’s operations.

Industry associations*

Topics raised
  • Sustainable development
  • Labour issues
  • Implementation of best practice
  • Industry-specific issues
  • Changes in legislation
  • Coordinated response to industry-related matters.
Response
  • Representation in various executive and other roles in industry associations to engage and give input on industry issues and communicate with industry and government stakeholders
  • Coordinated industry-level and direct support for employees, communities and government.

* Includes the Minerals Council South Africa, International Council on Mining and Metals, World Economic Forum, Ferro Alloy Producers’ Association, Association of Mine Managers of South Africa, Association of Resident Engineers, Business Unity South Africa, Water User Associations and the Energy Intensive Users Group, among others.


Customers

Topics raised
  • Product quality
  • Sustainability issues.
Response
  • Processes are in place to ensure consistent product quality
  • ARM follows global good practice in managing sustainability matters and is committed to transparent and comprehensive reporting to stakeholders.

Suppliers and local businesses

Topics raised
  • Local economic development
  • Industry issues
  • Fair payment terms
  • Fair treatment
  • Valid BEE certification
  • Ethics
  • Sustainability issues.
Response
  • Support for local enterprise development through CSR initiatives
  • Payment terms align with industry standards
  • ARM operates ethically and does not tolerate unfair discrimination
  • ARM requires valid BBBEE certificates to support transformation in its supply chain.

Media

Topics raised
  • Operational, financial and ESG performance raised during results presentations
  • Plans for Bokoni Mine
  • Impact of operational challenges of Transnet on ARM.
Response
  • ARM’s investor relations department communicates with the investment community and media, facilitating access to information and management where possible.

Next section

Summarised Mineral Resources and Mineral Reserves report

Extracting optimal value from the Mineral Resources and Mineral Reserves in our portfolio is fully aligned to ARM’s purpose of delivering competitive returns and creating sustainable value for all our shareholders through its strategic objectives.

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