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SUSTAINABILITY REPORT 2014
INDEX
03 WORKPLACE
04 FA NURTURES THE MANAGERS OF TOMORROW
06 THEMBA REACHES GREATNESS THROUGH SUPERVISOR DEVELOPMENT PROGRAMME
08 WYNAND LEADS CONSTRUCTIVELY
09 HEALTH AND SAFETY
10 COMMITTED TO ‘ZERO HARM’
11 PAVING THE WAY FOR BETTER SAFETY
12 PEER EDUCATOR HELPS HIV-POSITIVE RELATIVES FIND ACCEPTANCE
14 TSHEPISO HELPS POSITIVE COMMUNITY MEMBERS GAIN A HEALTHY MINDSET
15 RESPECT FOR HUMAN RIGHTS
16 FROM RURAL VILLAGE TO ROLE MODEL
18 JEANETTE SETS THE BAR IN MINERALS PROCESSING
19 THABELO’S CHANCE TO LEAD
20 OFFENTSE ENGAGES EMPLOYEES IN SITE MANAGEMENT
21 ETHICS
22 INTRODUCING A CODE OF ETHICS
23 STAKEHOLDER RELATIONS
24 MOBILE SPAZA INSPIRES BUSINESS VISION
26 MOBILE SPAZA MAKES LIFE EASY FOR PAPIKI
28 SOLAR PROJECT BRINGS OPTIMISM TO BAFOKENG VILLAGES
30 CORPORATE SOCIAL RESPONSIBILITY SPEND
31 RESPONSIBLE STEWARDSHIP
32 ACHIEVING ISO 14001CERTIFICATION
33 TRANSFORMATION
34 TRANSFORMATION REPORT
O
ur fourth Sustainability Report captures the ever-compassionate spirit and efficient
performance of our company. It also reflects our sincere, firm commitment to the
10 principles of sustainable development we are bound to as signatories of the UN
Global Compact.
The report covers a range of programmes we implement on an ongoing basis to put these
principles into action and colourfully presents the impact these programmes have had on the
lives of staff beneficiaries, their families and local communities.
The safety and health of our people is our number one priority. We aspire to a fatality-free
work environment and in FY2014 we achieved this objective across our divisions. We are grateful
that our people are showing dedication and commitment in mitigating our material risks. We
achieved a lost time injury (LTI) frequency of 0.89 injuries per million hours worked, slightly higher
than the 0.75 injuries per million hours maintained in 2013. This moderate decline in our safety
performance was due to an increase in security-related incidents in our Tailings division. We are
working with our clients to implement security initiatives to ensure that our employees are safe.
The continued growth in international demand for our services is driving us to concentrate
on our training initiatives to ensure that our employees are properly equipped to face the
challenges posed by our market. In fact, Fraser Alexander is known for excellence with regard to
the development of its staff. The Workplace section again features staff members who have been
trained and developed to confidently live up to the high standards of our brand.
One of our key policy documents is the Fraser Alexander Code of Ethics, which was developed
in 2014. ‘Working with integrity’ applies to every member of our work-force and is based on our
value of Earn Trust. It highlights how we care as much about how good results are obtained as
we do about delivering them.
Then, among the highlights of our 2014 Report, there’s the Human Rights section, which
includes the narratives of staff members who hail from humble backgrounds but have made
great professional strides, thanks to the support of our company. What is significant about their
progress is not only the fact that they have elevated themselves and their own quality of life but
that they have also shared their success with other people and brought about positive change in
the process.
Our commitment to spending four percent of net-profit after tax on community development
(1 % NPAT) and enterprise development (3 % NPAT) programmes remains and ensures that our
host communities continue to share in our success – both in the short and long term. Our
Stakeholder Relations section captures two of the cutting-edge initiatives that have come to
characterise our work in this area. It further shows how our heartfelt initiatives help people to
realise their business dreams and inspire community members who had lost hope of living a
productive life.
I would like to sincerely thank all our employees and
contractors for their commitment and efforts and for their
contribution to the success of Fraser Alexander.
I welcome any feedback you have in relation to this report and look forward to reporting
our progress on creating value for all our stakeholders next year.
Velile Nhlapo, CEO: Fraser Alexander
WELCOME
to Fraser Alexander’s
2014 Sustainability
Report
WORKPLACE
At Fraser Alexander, we endeavour to create an inspiring work environment where employees feel motivated, as this
forms the basis of employee performance and satisfaction. Our group also strives to be an employer of choice by
supporting employee career and personal development and helping our people to align with our values. Employee
turnover, absenteeism, mentorship engagement and training spend are used as indicators of trends in workplace
harmony and alignment.
MENTORSHIP
ENGAGEMENT
2012 2013 2014
TRAINING
SPEND
2012 2013 2014
EMPLOYEE
TURNOVER TOTAL
2012 2013 2014
EMPLOYEE TURNOVER
REGISTRATIONS
2012 2013 2014
04 WORKPLACE
FA nurtures the
MANAGERS OF
TOMORROW
A
number of promising and ambitious staff members
in our Tailings division, who completed our Tailings
Training School’s Supervisory Skills course in 2014,
have gained the skills and confidence to follow
in the large footsteps of their dynamic role models in the
division.
The staff members seized the opportunity to build their
management skills through the challenging course as Simon
Zwondane, senior site manager in Tanzania for Tailings, and
Philemon Jwili, area manager in Rustenburg, proved to them
that one can advance in the organisation through hard work
and training.
Both Zwondane and Jwili first joined the company as
general labourers and eventually attained the sought-after
management positions after completing management
development programmes through the company.
One of the students, Geoffrey Mashilo (31), says Simon
has been his inspiration and role model throughout his
career. Geoffrey had worked under Zwondane’s supervision
when he first joined Tailings as a general labourer and
had asked Zwondane to train as a machine
operator as he was aware of his
supervisor’s equally humble
beginnings with the company.
“I worked as a machine
operator under him for
four years. Eventually
I went to Simon and
told him ‘I need to
be an operations
supervisor like you
After completing the Supervisory Skills course through the Tailings Training
School, a number of our talented staff members have begun to follow in
the footsteps of the successful role models within our company.
– how do I achieve this?’ He pushed me and showed me
to do things the way he did,” reveals Geoffrey.
Commenting on Simon’s subsequent promotion to site
manager, he says: “We see our brother go up and we will
follow him next time.”
Geoffrey was transferred to the Rasimone site, where
he continued doing machine work. He told his superiors
on this site, too, that he wanted to be an operations
supervisor. They gave him the opportunity to act in this
role when the Rasimone site’s operations supervisor
was away. His good performance in this role led to the
opportunity to hone his skills in the Supervisory Skills
course.
Geoffrey was appointed operations supervisor at
our Impala site upon completion of the course – an
excellent example of the course’s serving its purpose. His
appointment at the large Impala tailings dam complex
means that he now carries great responsibility and faces
big challenges in the everyday running of the operation.
“To have great responsibility is not easy, but it’s nice,”
says Geoffrey. “At Impala, I have to think faster and solve
challenges.”
However, he indicates that he has been equipped to
meet these challenges head on: “Make a plan, set a goal,
absorb the pressure and meet the target,” Geoffrey says,
passionately describing how he makes our client happy.
The course has also given the 43-year-old Selby
Mokoele the career advancement he wanted for a long
time. He was promoted from team leader to supervisor
on the Union site in October 2014, after being equipped
to effectively manage staff and make good decisions on
site. His promotion followed four years of serving as team
leader on a site in Brits.
“I have learnt how to better communicate with staff on
the ground and how to deal with a range of staff issues,
such as motivating unhappy people to learn and grow.
“I know how to make them love their jobs,” says Selby.
He adds that while he did the course he was sent to
attend early-morning site meetings with the client. Selby
was then given the opportunity to make operational
decisions on site and gained the courage to make
suggestions to the site manager.
“The site manager trusted me and also learnt from me,”
he reveals.
“This course gave me what I needed in life; new
knowledge and a new challenge. But I still want to learn
more, in order to be someone like Simon Zwondane –
guys like him are the inspiration.”
“Can we do it? Be like them?” he asks.
“Yes, we can. We need only to focus on our jobs and
seize the training opportunities we are given.”
Geoffrey adds his voice: “It’s not a matter of money, but
a matter of growing; we need to have a better future.”
WORKPLACE 05
TAILINGS TRAINING SCHOOL
Fraser Alexander’s Tailings Training School, located at its Bleskop office in
Rustenburg, offers training fully accredited by the Mining Qualifications
Authority (MQA). The competencies our employees gain through the centre
are recognised nationally; staff obtain credits registered on the database
of the South African Qualifications Authority (SAQA). This gives our clients
the assurance that our employees are adequately trained, as the MQA is a
sector education training authority (SETA) for the mining and minerals sector.
The Tailings Training School is accredited to offer four courses, including
slimes reclamation, tailings dam operations, occupational health and safety
and a supervisory skills programme. It conducts all administration related
to training internally, from the start of a course to the stage where the MQA
issues certificates. We use the MQA-I-Share system to capture all information,
including names of learners and assessors, dates of training assessment, and
names of moderators. On completion of the training, the MQA verifies that all
requirements have been met and produces the certificates. The advantage of
offering our employees accredited training is that it empowers both our staff
and our company.
In 2014, a group of promising employees, from general labourers to acting
supervisors, was given the opportunity to complete our supervisory skills
programme. Of the 29 employees enrolled in the course, 20 were successful
and five were promoted to more responsible positions within the organisation.
The course had practical and theoretical elements and covered the following
modules: apply basic written and oral communication skills; perform one-on-
one training on the job; explain the individual’s role within the business; apply
self-management principles; and plan, organise, lead and control activities.
“It’s not a matter of money,
but a matter of growing; we need to have a
better future.”
06 WORKPLACE
MANAGEMENT
ADVANCEMENT
PROGRAMME (MAP)
The MAP programme, held at Fraser
Alexander’s Naauwpoort training
centre from February to July 2014,
equipped supervisors with the skills
and knowledge they need to be
successful managers — it introduced
them to basic labour legislation,
business management, client
relations and employee engagement.
The programme was offered to 27
supervisors in the division selected on
the basis of their excellent performance
in implementing the Bulk Mech
Operational Standards manual. The
delegates were required to spend two
days on each of the six modules in the
course and completed one module per
month. The MAP programme was the
culmination of a number of strategic
steps to identify and address gaps in
leadership capacity within Bulk Mech.
The division gave its best performing
supervisors this opportunity as they
are front-line managers who need to
work independently. MAP was also
part of an ongoing effort to grow our
management pool internally.
“Even when you learn a small thing,
it can take you to the next level;
it makes you big.”
WORKPLACE 07
“
Before I did the supervisor development programme,
I was reporting to my site manager and following his
instructions. But since I have been better equipped by
the course, I work directly with the client who tells me
what needs to be accomplished on site. I give my team of
operators instructions and when they have completed the
work, I merely inform my site manager of what we have
achieved.
“I am now in charge of my team and all the activities on
site,” says Themba Mkhonza, Bulk Mech supervisor on our
Koornfontein site, proudly.
Themba took responsibility for our materials handling
operations and his team of yellow machine operators,
after completing the supervisor development course at
our Naauwpoort Training Centre with a number of other
handpicked supervisors from our Bulk Mech division.
He says the course has essentially taught him to consider
the “bigger picture” in providing leadership on site. “I have
learnt what I must plan for, how to manage my team and to
always ensure that safety is in place,” he says confidently.
“At the start of the morning shift, I establish how many
machines we have available to operate and how many
activities we need machines for. We have 13 ADTs, 11 FEL’s
and a number of other equipment that we use in our discard
and materials handling operation.
“Then I monitor the volume of tonnes the trucks move
per hour. I have learnt how to manage my people to reach
the production targets, and it is important to work safe. We
need higher productivity, but we don’t need more accidents,”
explains Themba.
THEMBA REACHES
GREATNESS
through supervisor
development programme
Supervisor Themba Mkhonza has been trained to lead his team
of operators to higher productivity.
He maintains and improves production by closely
monitoring his team of operators every day, ensuring
that they perform their jobs effectively. “If I notice that an
operator doesn’t know what to do, I stop him and show him
how to operate. Our job is to handle all the products and
discard on the premises, so the mine runs uninterruptedly.”
Themba explains passionately how the training has
invigorated his approach to supervising: “I feel inspired;
training refreshes your mind. It helps you to find new and
better ways of doing things.”
“I am able to make bigger profits for the
company now — I know what’s right
and what’s wrong and I do things
accordingly,” he enthuses.
“If you learn, you grow.
If you don’t learn, you
‘stay in one place
forever’. Even
when you learn
a small thing, it
can take you to
the next level;
it makes you
big.”
08 WORKPLACE
T
his comes as the programme has revealed to him his
strengths and weaknesses as a manager and presented
him with the formal qualification that he lacked for
further career growth.
Wynand says the programmed has shown him that he mainly
relied on his own insight to solve challenges in the past and
that he was very involved in the details of operational decisions
of sites that reported to him. He also found it challenging
to manage people of different ages and backgrounds and
understand their abilities and limitations.
However, as he got to know himself better through the
programme, he overcame his shortcomings in managing people
by drawing on his strengths. Wynand has adapted his coaching
style to manage each person in accordance with the staff
member’s own strengths and weaknesses and now encourages
others to give more input during meetings.
“I have learnt to consider the people who report to me, as well
as those I report to, and I know how to get the best out of each
of them,” says Wynand. “You can only succeed with the support
of others.”
He explains that his communication skills have improved and
that this is key to getting each staff member to perform to the
best of his or her ability. As a contracts manager, Wynand liaises
with senior people, unions, communities and staff members on
a daily basis, so effective communication skills stand him and the
company in good stead.
One example of how this has improved his relationships with
stakeholders is the fact that he now has considerable access to
union shop stewards who willingly facilitate meetings with tribal
heads in his business area.
Wynand’s understanding of teamwork has also deepened
to the extent that he has come to see all staff members as one
instrument. He incorporates the games that were played as part
of the programme on site to identify which role a particular staff
member should assume.
“When staff members play denga they build a block tower and
individual employees are then tasked with extracting blocks from
it. Some of them simply go ahead and remove a block, while
others make sure that they consult the rest of the group before
they act,” says Wynand.
He applies what he has learnt on the programme by
delegating more tasks and recognising staff for a job well done.
This new management approach has invited feedback from site
managers, who experience his leadership as more constructive.
Furthermore, the programme has given Wynand a new lease
on life in general: “I was scared of challenges in the past; scared
of doing new things. One of the reasons may have been that I
never completed school. So when I received the opportunity to
do the management development programme, I told myself that
I should try to complete it in order to have a formal qualification
behind my name.
“Halfway through the course, I realised it was the best
thing the company has introduced yet. And now that I have
completed the challenging programme, I have a qualification
higher than a matric certificate.
“In future, this experience and qualification will open doors for
me. But what is important for me right now is that I am a better
manager.”
Wynand learns to
LEAD CONSTRUCTIVELY
MANAGEMENT
DEVELOPMENT PROGRAMME
In 2014, Fraser Alexander gave another group of
supervisors and middle managers in the Tailings division
the opportunity to complete either a Higher Certificate
or Certificate in Management Development through the
Maccauvlei Learning Academy.
The courses essentially offer leadership development,
which includes building competence in a range of skills,
including the development and evaluation of operational
strategies, performance monitoring and measuring,
innovative improvement interventions, leading a team of
first-line managers and building relationships. It further
offers training in the development of teams, application
of risk principles, financial and knowledge management
and business ethics within internal and external
regulatory frameworks.
Importantly, the programme also works on the
attitudes and values of our managers, ensuring that they
are fully equipped to lead the company. The Certificate
in Management Development is equivalent to a National
Qualifications Level (NQF) Level 4 qualification and
the Higher Certificate to an NQF Level 5. In 2014,
nine learners from the Tailings division successfully
completed the Higher Certificate and five learners
gained the Certificate in Management Development.
Our management development programme has transformed contracts manager Wynand Coetzee’s
management style and revitalised his outlook on life.
“You can only succeed
with the support of others.”
HEALTH AND
SAFETY
The health and safety of our employees and communities is of paramount importance to us. We aim for zero harm
to employees and third parties and proactively support employee health and personal security. Being a caring
organisation also makes good business sense as performance is directly related to a secure environment and quality
of life. Safety related statistics, sick leave per employee and training of employees in personal safety and first aid are
tracked as indicators of our performance.
SAFETY
PERFORMANCE
2012 2013 2014
SICK LEAVE
PER EMPLOYEE
2012 2013 2014
10 HEALTH AND SAFETY
Middle management in turn encourages the workforce
to report incidents to ensure that the necessary learning can
happen and that sustainable measures be put in place to
prevent any repeats.
Our company also goes to great lengths to ensure it
understands the real issues that impact on the safety of
our employees: interaction among the various levels of
management and the workforce are encouraged through
behavioural observations, visible felt leadership and frequent
audits.
Finally, we instill our safety beliefs in our staff through
good communication and continuous awareness-making.
SHEQ systems
Our company regularly measures the performance of its
SHEQ systems.
Two full audits are carried out at each site every year and
findings are raised against non-conformances. Deviation
audits are carried out in between these two annual audits
to measure progress on findings raised against non-
conformances and to ensure that the corrective action taken
is sustainable.
Audits are attended by senior site personnel so they can
be recognised for good performance and take ownership for
addressing shortcomings.
The effectiveness of the SHEQ systems are also discussed
amongst our company divisions at monthly meetings. Here,
the various divisions raise issues that need to be changed.
This helps us to improve our systems and, once changes
have been implemented, our staff provides us with feedback
on the effectiveness of the changes.
The SHEQ manager of each division is also a member of
the Fraser Alexander Sustainability Forum that meets every
third month. This forum compares the SHEQ results of the
different divisions against the objectives and targets of our
quarterly SHEQ programme and launches new initiatives to
improve overall SHEQ performance.
This forum also provides our SHEQ managers with the
opportunity to share best practice with their colleagues,
which contributes to better overall SHEQ systems and
programmes in Fraser Alexander. This sharing of best
practice is vital as Fraser Alexander has a big footprint in the
industry and needs to be able to respond to all the SHEQ
requirements posed by the industry.
Fraser Alexander facilitates the building of a trusting
relationship between our SHEQ employees as this assists
them to share and learn freely from each other – and
ultimately enables the company to deliver quality solutions
on time and within budget to the client’s doorstep.
Committed to
‘ZERO HARM’
F
raser Alexander has dedicated itself to committing
‘zero harm’ to employees in all its business activities.
Our leadership team has undertaken to create a safe
working environment where competent employees
can perform their duties without injuring themselves or
others.
The company also sets safety goals and measures
compliance with the main objective to ensure that we
continuously improve. We have systems and processes
in place that regulate how people go about their duties in
their particular work environments and how they use the
specified equipment. Before any work starts, employees
have to identify all risks to themselves, others and
equipment, and put mitigating actions in place to ensure that
work is carried out in a safe manner.
Fraser Alexander expects our leadership to be outspoken
about safety and to understand how safety systems must be
implemented to be effective. Our leadership is tasked with
encouraging middle management to thoroughly investigate
incidents and establish mitigating actions to prevent similar
occurrences.
HEALTH AND SAFETY 11
F
raser Alexander achieved a Lost Time Injury Frequency Rate (LTIFR) of 0.89 per million
hours in 2014, slightly higher than the rate of 0.75 per million hours of 2013. The
moderate decline in our safety performance was due to an increase in security-related
incidents in our Tailings division.
Our Bulk Mech and Construction divisions achieved a good safety performance at the end
of the reporting period, with Bulk Mech reaching 5 591 421 LTIF hours and Construction 3
957 585 LTIF hours respectively.
Bulk Mech’s exemplary safety performance can be attributed to the work done in
strengthening relationships between the operational and safety teams, allowing for a more
focused and united approach when resolving safety challenges. The working relationship
between the two teams further improved the efficiency of the internal safety auditing
programme, enabling them to swiftly resolve findings. The Construction team’s equally good
safety performance followed as a result of the successful implementation and certification
according to OHSAS 18001.
Looking at the other companies within our group, our Minerals Processing division
succeeded in improving its safety performance in 2014, compared to 2013. This
improvement was brought about by the continued implementation of their site-ownership
model through the constant development and growth of employee skills.
The safety performance of our Tailings division showed a moderate decline, due to an
increase in security-related incidents occurring in this division. However, we are negotiating
with our clients to improve overall safety and security at tailings storage facilities.
Improving safety and safety systems
More focus was placed on learning from past incidents in 2014, in order to improve general
safety performance. Safety incidents were reported in a more standardised manner, by
making use of company-developed software that enabled us to extract better lessons from
past incidents to improve the quality of preventative action across the group. This effort
has generally been successful, with the main challenge being the limited connectivity of
employees working at remote operating sites.
Fraser Alexander also made strides in bolstering our safety systems in 2014. We overhauled
our MANCO (management committee) safety audits by enhancing the quality of questions
before rolling out the audits in all functional areas of the business. The outcomes of
the audits were discussed across the business, which contributed significantly to raising
performance.
Other activities undertaken to improve safety across our group included the review and
simplification of our systems to reduce the pressure on resources to effectively run our safety
systems. This process also led to the sharing of experiences and lessons amongst safety
professionals.
We are also stepping up our training initiatives to better equip middle management to
manage safety risks. The mining industry is constantly growing its knowledge base and
understanding in many areas that impact on employee safety and this drives our safety team
to constantly improve the Fraser Alexander safety system.
Safe culture and performance
The range of initiatives that Fraser Alexander continued to implement in 2014 to promote a
safe culture in the organisation helped some of our sites to exceed targets and expectations,
while others are still performing below par.
However, overall progress was acceptable and in line with our planning for the period. We
remain focused on improving our safety performance and look forward to the day when we
will be able to achieve zero harm.
Paving the way for
BETTER SAFETY
Source
Engineering news - SA mine fatality at all-time low, sets positive outlook for 2015
(Published 21 Jan 2015, Author: Natasha Odendaal)
Injury Frequency Rate 2013 per million hours
Gold mining Platinum mining Coal mining
4.27 1.48 3.41
Fraser Alexander
0.65
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
SEP OCT NOV DECJAN FEB MAR APR MAY JUN JUL AUG
January 2014 to December 2014
LostTimeInjuryFrequencyRate(LTIFR)
Fraser Alexander improved safety systems and training in managing SHEQ risk assessment in 2014 to
promote our culture of putting safety first.
Group LTIFR performance based on 12MMA and 200 000h
What is FA’s Lost Time Injury Frequency Rate (LTIFR)
and how does it compare to the industry average?
12 HEALTH AND SAFETY
HIV/AIDS PEER-EDUCATION
PROGRAMME
Fraser Alexander adds value to the lives of its employees,
the people they interact with and the community at
large through our HIV/AIDS peer-education programme.
As an organisation, we also benefit from the 36-week
programme of the Education Training and Counselling
(ETC) organisation, as it is aimed at creating awareness
of the HIV/AIDS pandemic, educating employees on
how to prevent infection, how to live healthy and long
lives if infected and how to support people affected by
HIV/AIDS. The programme is implemented by Fraser
Alexander Tailings division.
Because we believe that a healthy workforce is a
productive workforce, our aim is to reach all of our
tailings employees through the programme.
In 2014, the programme continued to be rolled out
across Fraser Alexander Tailings, with particular emphasis
on the South African sites managed by the African
Business Unit (ABU). An additional 10 peer educators
were trained and found to be competent during this
year, and they were deployed in the operational areas to
present the HIV/AIDS peer-education programme. Staff
members based in the rest of Africa attend the HIV/AIDS
peer-education programmes presented by our clients.
The programme reached an average of 50% of staff
during the reporting period. We achieved this good
result after setting ourselves a target of educating 20%
of our employees with the roll-out of every 36-week
programme. This realistic target we set ourselves ensures
that all the employees in the Tailings division receive
refresher training in a cycle not exceeding five years.
Encouragingly, 90% of the peer educators who have
qualified since the initial roll-out of the programme
continue to present HIV/AIDS training to their peers. Our
employees who are given the opportunity to qualify
as HIV/AIDS peer educators are passionate about the
subject and often also partake in community-awareness
activities.
Although we are not able to quantify the impact of our
peer-education programme, due to the confidentiality
of test results and a person’s status, there has been a
general decline in employee deaths due to ‘medical
reasons or conditions’. In addition, the number of
employees who go for voluntary testing, as well as
employees who confide in their management teams
with regard to their status, has increased. This enables
our management to better assist and support affected
employees.
Fraser Alexander participates in the voluntary testing
campaigns of its clients, who invite all staff members
and contractors to test on a regular basis. Anonymity
of testing results is always guaranteed, and if a person
tests positive, he or she is provided with the necessary
medical assistance and support.
HEALTH AND SAFETY 13
F
raser Alexander’s peer-education programme has
developed two of our peer-educator staff members
into staunch advocates for quality of life for those
living with HIV/Aids in their disadvantaged home
communities.
Team leader Ananias Malepe (37) has helped two of his
HIV-positive family members, who live in a rural village near
Burgersfort, to not only effectively manage the disease, but
to live in harmony with their relatives, who initially rejected
and abused them for their status. Ananias credits our peer-
education programme for helping him improving their
quality of life.
“When I first learnt that they were positive in 2002, I was
scared,” Ananias says, recounting the experience. “I didn’t
want to lose either of them to the disease.”
Although Ananias had limited understanding and
information about the disease at the time, he was wise
enough to encourage his relatives to visit the doctor and
clinic to obtain sound medical advice. He also urged them
not to pay attention to the family members who abused
them or did not want to see them anymore, and to rather
concentrate on their own well-being.
“I told them that it was not the end of their lives, and that
I would help them by getting them more information about
HIV/Aids and how to fight it,” he says.
Ananias joined Fraser Alexander in 2006 and it was then
that an opportunity to fulfil his promise to his relatives
presented itself. The company invited employees to become
voluntary peer educators on sites across the Tailings division,
so he immediately put himself forward for the training.
“The peer-education training course helped me to
support my family members better than before, as I could
Peer educator helps
HIV-POSITIVE RELATIVES
find acceptance
Ananias Malepe gains peace of mind assisting HIV-positive
family members to live a quality life.
“The peer-education training course helped me to support my
family members better than before.”
advise them on what to eat and how to take
their medication. I also helped them to find
caregivers who see them through every
day,” he says. “Managing the disease is
very challenging. You need the support of
someone who is constantly there for you.”
Ananias also succeeded in curbing the
rejection by family members who did not
want to live with, or visit, the two HIV-
positive relatives for years by showing his
family that they all needed each other. One
of the HIV-negative family members had a
baby who would not stop crying, despite the
fact that Ananias’ mother had performed a
cultural ritual to relieve the child’s discomfort.
Ananias recruited one of the HIV-positive
relatives, a sangoma-in-training, to conduct
the ritual for a second time. The baby was finally
soothed and the family came together again.
Ananias reflects on how the lives of his HIV-positive
family members have changed: “They are now able to
manage the challenge. Where they were previously very
concerned about their health and didn’t know what to do,
they are now far better equipped. The family members who
were at odds with each other also live together in the village
again. They often say, ‘Without you, we were lost. Thanks for
being there for us’,” reveals Ananias.
For him, the greatest reward of being trained as a peer
educator and applying his knowledge and skills outside
the work environment is the fact that his feeling of deep
concern for his family members has changed to one of
lightness.
14 HEALTH AND SAFETY
T
shepiso Moila (34) is another one of our HIV/AIDS Peer
educators who has grown into an agent of change in
the community. He has been inspired and equipped
to bring hope and new life where HIV/AIDS has sown
hopelessness and despair.
In his case, the good work started when he became a peer
educator within Fraser Alexander in 2013. He was still living in his
family home in Soweto when he learnt that children on his street
had been orphaned by HIV/AIDS and was struggling to cope
with everyday life.
Tshepiso felt compelled to reach out to the children by taking
them food and second-hand clothes as his peer education
training had sensitised him to the ramifications of the disease.
“The children were living with relatives, but were lost, they didn’t
know what to do and where to go every day,” says Tshepiso.
Our peer educator gained their trust through his regular
visits and learnt that two of the girls, aged about 14 and 16,
were HIV-positive. Tshepiso also learnt that they did not have
birth certificates which they obviously required to apply for
the government social grants available to HIV/AIDS orphans.
However, he felt there was something that could be done and
reported the problem to a local councillor who helped the
children to obtain the necessary documents and the social grants.
Tshepiso subsequently moved from Soweto to Daveyton to
be near his work, so he put the children in touch with a social
caregiver, who ensured that they received two balanced meals a
day and took the correct medication.
He went back home to Soweto in 2014 and witnessed the
fruit of his caring actions: one of the girls was still living on the
same street and experienced an abundance of happiness and
health in her life.
Tshepiso helps positive
community members gain
A HEALTHY MINDSET
“The whole point of peer education is that it can
change people’s lives, whether it is the life of a
colleague or that of a community member,” he says
resolutely.
Where he currently lives in Daveyton on the East
Rand of Johannesburg, Tshepiso is still dedicated
to helping HIV-positive people thrive. He regularly
attends a local clinic, which only serves HIV-positive
people, to learn more about issues such as nutrition, a
healthy CD4 count and social acceptance.
He eagerly shares this knowledge with his colleagues
and community members wherever he goes — even a
taxi ride often proves to be the opportune moment to
reach out to people who behave irresponsibly or who have
negative thoughts.
“When you know your status, you typically think that
people are laughing at you and judging you. This is the reason
why counselling is given after testing – a person’s feelings of
rejection could even lead to suicide,” reveals Tshepiso.
He explains wisely that the objective is to take distressed
HIV-positive people out of an emotionally isolated place and
get them to consider their options, without thinking too much
about what people are saying.
“We tell people not to stress about others who might be
ridiculing them, and only to focus on their status; there are many
other people who still love them.”
Tshepiso reveals that ultimately, the HIV/AIDS Peer education
helps the infected person to gain the right mindset: “It is not
the end of the road, but a beginning. Because your body has
changed, you can start living positively.”
“It is not the end of the road, but a beginning.
Because your body has changed, you can start living positively.”
Peer educator Tshepiso Moila knows from experience that peer
education can change the lives of employees and community
members for the better.
RESPECT FOR
HUMAN RIGHTS
Workplace diversity, equal opportunity and respect for others are the fundamentals of the motivating climate we
strive to attain. These principles help to create an environment in which people can participate and contribute to the
best of their abilities. We have set targets for gender balance and employment equity and will measure our progress
towards our goal against these indicators.
MANAGEMENT
EMPLOYMENT EQUITY
2012 2013 2014
GENDER
EMPLOYMENT EQUITY
2012 2013 2014
16 RESPECT FOR HUMAN RIGHTS
T
errence Hlongwane’s brave journey to leading site
agent at Fraser Alexander Construction has brought
equality home to a poor family in Giyani village,
Limpopo.
The fifth child in a big family of thirteen headed by illiterate
parents, Terrence dreamt big dreams behind his school desk,
intending to follow a professional career and live a prosperous
life. While his father worked away from home to put his 13
children through school, Terrence diligently worked at his
academic school subjects and devoted his free time to
herding the family’s goats and cattle.
In his final school year, Terrence successfully
applied to TAFSA for a loan to study civil engineering
at the former Northern Gauteng Technikon in
Pretoria (now Tshwane University of Technology).
He enrolled for a national diploma, but his loan
covered only his class fees, so he lived off-campus
with a family member and travelled to school by
taxi every day. Back home, his retired father sold
beverages from a small fridge and his mother
peddled vegetables in a wheelbarrow, from village
to village, in order to raise money for his food and
transport costs.
“It was a challenging period for me and my
family,” says Terrence. “I often had to stay late on
campus to participate in practical course assignments
and my parents had to cover many unforeseen
expenses.” However, both Terrence and his
parents persevered throughout his
study years so that he could
become the first graduate in the family, in 1999.
His parents were elated. Terrence immediately went on to
clinch his first job as technician with Bafokeng Civil Works in
Rustenburg, which only enhanced their joy. “We come from
a challenging background – both my parents are still illiterate
today,” explains Terrence. “Seeing one of their kids ‘making it’
like that was a very big milestone for them.”
Terrence had the good fortune of working on large concrete
structures such as reservoirs, bridges, bulk water supply systems
and roads during his employment with Bafokeng Civil Works.
He credits the company with providing good training and
mentorship. This role also led to his employment with Fraser
Alexander as our Construction division recruited some of the
company’s skilled workers when it closed down.
Fraser Alexander’s operations director Ian Seddon says he
initially set out to employ only concrete hands, shutter hands
and steel fixers but, when these staff members revealed how
supportive Terrence was of them, he summarily interviewed
Terrence for a job, too.
“I help the team where help is needed and I am always part
of the team that does the work,” Terrence says of his approach
to management on site.
On joining Fraser Alexander as a technician in 2002,
Terrence recognised that the company offered good career
opportunities: building tailings deposition dams and drains
involves the construction of roads, pipelines, dams, earthworks
and other concrete structures ‘all-in-one’.
“It was clear that the company offered good opportunities.
I only had to ‘grab the Fraser philosophy and way with both
hands’ [to be successful in the company],” he says passionately.
Terrence’s strong resolve paid off when he was promoted
to junior site agent after a year with the company. He started
running small sites such as Rasimone and Optimum with the
support of our site managers and was again promoted within a
year – Terrence became the first black site manager within our
Construction division in 2005.
The personable man has since gone from strength to
strength: his tenacious work on the challenging DMO water
management project and seamless delivery of the massive
Lions tailings and slag dam project are but two of many career
milestones accomplished with Fraser Alexander.
“I am confident that I can tackle any project that comes my
way,” says Terrence.
Terrence is evidently making the most of his talents and life
chances, despite the fact that he hails from an isolated area and
belongs to a historically disadvantaged group.
In doing so, he has become a good role model for the
children of Giyani – Terrence is often invited to give inspirational
talks at his former village school and happily obliges, showing
the children they “can become something, even if they are poor
and come from such an extremely rural place”.
From rural village to
ROLE MODEL
Site manager Terrence Hlongwane is living proof that Fraser
Alexander provides equal opportunities to our staff to advance in
the organisation — regardless of their backgrounds.
RESPECT FOR HUMAN RIGHTS 17
“We come from a challenging
background – both my parents are
still illiterate today. Seeing one of
their kids ‘making it’ like that was
a very big milestone for them.”
18 RESPECT FOR HUMAN RIGHTS
T
he well-composed and dynamic manager
has gained the vision and confidence
to undertake innovation projects across
our Group, since she has been highly
successful in rolling out innovative process-
improvement projects on the Leeuwpan site.
Under Jeanette’s leadership, the Leeuwpan
team not only clinched the Minerals Processing
division’s Innovator of the Year Award in 2013,
but also a quarterly innovation award for process
improvement in 2014.
“I have grown a lot over the past few years,” says
Jeanette. “I have found my niche in the project
management of innovation. I have proved myself as
a person who supports new ideas.”
Jeanette was appointed as site manager within
our Minerals Processing division after she joined our
company as site manager-in-training in 2009. After
fulfilling this function at the Smokey Hills platinum
plant, she went on to work as a metallurgist on a
platinum plant in Burgersfort under the mentorship
of Phildré Lotter, operations and project manager
with Minerals Processing.
In this role, she felt that she needed to prove
herself, so she offered to take on the responsibilities
of production foreman, in addition to her normal
duties, while the plant was being commissioned.
“The production foreman needs to see that
targets are met, work is done safely and costs
are controlled. If you succeed in doing this,
you essentially prove that you are a competent
manager,” explains Jeanette.
Jeanette sets the bar in
MINERALS
PROCESSING
The experience Jeanette Malele has gained as site manager of the
Leeuwpan coal-processing plant over the past three and a half years
has prepared her for even greater responsibility.
Jeanette’s performance at Burgersfort led to her
acting as site manager at the Impala Rustenburg site
in the site manager’s absence. Her good performance
led to her appointment as the Minerals Processing
division’s first female site manager in 2012.
In her neat, well-organised office on the Leeuwpan
site, she cuts a striking, authoritative figure. “Because
of the great opportunities I have been given within
the company, I give the team members who show
potential good opportunities to grow and develop
too,” says Jeanette.
“One plant assistant here was always working,
always checking that the plant was running smoothly.
So I gave him the opportunity to act as supervisor and
eventually promoted him to this position.”
“Kobus (Smuts), the engineering foreman, was an
electrician when I became site manager here. Now
he is the best engineering foreman there is. Thabang
Lehlehla, who was a plant operator, is now the
assistant site manager at Douglas — and he is the best,”
Jeanette continues.
She reveals that she has developed her team into
a high-flying one by showing her appreciation for
what they do and leading by example. Our Leeuwpan
team has made history by reaching a production
record of 88 108t per month, compared to an average
of 70 000t of coal treated when the plant was
commissioned in 2009.
The team also frequently achieves the highest
score in internal and external safety and housekeeping
audits among all the contractors on site, leading the
mine manager to instruct other plant managers to use
Jeanette’s operation as a blueprint.
The site manager proudly attributes her team’s
performance to good communication on site. She
adds lightly that women are good communicators: “I
often talk to the employees about safety. If we don’t
communicate, the same incident may occur again.
Staff members need to be made aware of hazards.”
Her open and approachable leadership style is
confirmed by supervisor Sibusiso Matshalinga, who
says, “Jeanette talks to us and makes us laugh. When
we do something good she appreciates us. That’s
what motivates us to go on — a sms from her thanking
us for the good work.”
The remarkable Jeanette is the most senior female
site manager in our Minerals Processing division and a
pioneer of sorts for women in the division.
She is also very supportive of Dikeledi Leboge,
our woman site manager at Mashala coal site and
Thabelo Ramateletse, the operations support specialist
(assistant site manager) at Welgemeend, in the
sense that she offers them advice on maintenance
systems and assists them with the selection of training
modules. “I would like to see our woman managers
setting the bar in minerals processing,” she says
enthusiastically.
But Jeanette acknowledges that their achievements
are only possible through the support of the entire
Minerals Processing team: “Fraser Alexander Minerals
Processing (FAMP) support us more than 100%.
From the maintenance to engineering staff, they are
simply the best. They make it possible to grow and
develop within FAMP — it is simply up to us to use our
chances.”
“Because of the great opportunities I have been given
within the company, I give the team members who show potential
good opportunities to grow and develop too.”
RESPECT FOR HUMAN RIGHTS 19
T
habelo Ramateletse is one of the driven, competent
women in our Mineral Processing division who
adds to the gender diversity in our management
ranks.
She was appointed operations support specialist at
our Welgemeend site in Mpumlanaga in 2015, after our
company gave her the opportunity to earn the necessary
advanced coal prep qualification for this role.
The appointment represented breakthrough for Thabelo
who had aspired to fulfill a site management role for a
previous employer, but was turned down on the basis of
allegedly not having the physical strength to manage a plant.
She fulfilled the role of plant training officer for her
previous employer and had experience of working as
production foreman. When her dreams of managing the
plant were squashed, she did not give up, but enrolled
herself for a basic coal prep course with her annual bonus in
2011, to widen her career prospects.
Thabelo subsequently joined Fraser Alexander’s Minerals
Processing division in a training role and pursued her career
dream when an assistant site manager role was advertised
within the division in 2013. She was initially unsuccessful
because she lacked the necessary coal beneficiary
experience, but she took heart in the fact that the company
noticed her management potential and offered her the
chance to qualify for the role.
“It was a bit of a setback when my application wasn’t
successful at first. But I did not lose hope as the company
noticed that I was interested in a management role and that
I had management skills,” says the vibrant operations support
specialist.
She relays enthusiastically that she learnt and grew a great
deal in the advanced coal prep course. The course includes
a practical element, which saw her tackling a project to
optimise the use and handling of oversize material at our
Douglas coal processing plant.
“This optimisation project was very demanding,” says
Thabelo. “I had to produce a presentation, findings and
conclusion, but I was able to do this with the full support
of my mentor, Phildré Lotter, and operations director Jaco
Scholtz. “The project ultimately taught me to consider our
coal processing plants from a management perspective.”
Also a wife and a mother, Thabelo reveals that she was
able to balance her studies and family life with the support of
her husband and by managing her time well.
On site at Welgemeend, she has overcome any possible
bias towards woman managers by treating staff members
with respect. She affirms that she receives the same respect
she shows our team and that they follow her instructions
without question.
What is more, is that her promotion is serving as
encouragement to other women in our organisation whom
have noticed her advancement on the production side of
the business.
“A number of women in our organisation have
approached me and asked whether they will be selected for
learnerships. Women in the roles of plant attendant, senior
buyer and electrical aids have their hearts set on growing
and becoming managers.”
Thabelo feels optimistic about the prospects of these and
other women in the organisation: “What I have experienced
is that the company notices when you work hard; it identifies
and develops your potential.”
Thabelo’s chance
TO LEAD
“What I have experienced is that the company
notices when you work hard;
it identifies and develops your potential.”
20 RESPECT FOR HUMAN RIGHTS
S
he has realised the Vanggatfontein site’s annual
profit target and has led her team to clinch
an additional contract for re-mining at the
operation by engaging with staff and showing
them respect.
“The only way to manage an operation successfully
is to consult the operators who are doing the actual
work in the field,” says Ofentse. “I give everyone a
chance to speak their minds and they know they are
always welcome to come and talk to me in my office.”
Her approach of involving staff and treating them
respectfully is appreciated by her staff who say that
Ofentse interacts with and treats all staff members
equally. “Our site manager is very professional and
addresses issues in a straightforward manner,” says site
clerk Precious Mahlangu.
Risk Officer Jennifer Ndhlovu says that Ofentse
takes an interest in all of her work relating to the safety
of loading and hauling activities. “I don’t have to do
anything by myself, Ofentse is part of all the safety
decisions,” she explains.
“When I compile an operational safety procedure,
she lends her operational perspective to the process
so that we obtain a balanced picture of what is
required for the procedure.”
Ofentse was appointed site manager in May
2014 after giving a first-rate performance as senior
supervisor on our Bulk Mech division’s Sasol site where
Fraser Alexander was responsible for handling coal
discard.
One of the events at Sasol that tested her
management abilities was an instruction by the client
to take over the handling of the run of the mine in
an additional section of the plant in less than a week.
Ofense tackled this job with only a few machines,
but managed to mobilise and motivate her team
of operators so well that they moved 700 000t of
Ofentse
ENGAGES EMPLOYEES
in site management
materials in six weeks, enabling the mine to keep its
factory running seamlessly. Fraser Alexander Bulk Mech
was also awarded Service Supplier of the Year 2014.
“The experience I gained at Sasol prepared me for
the position of site manager. As senior supervisor, the
operators reported to me, I had to discipline staff and
work with the client,” she says.
Ofentse joined the company as an intern on a
site in Meyerton through our full-time experiential
programme in 2011 and was absorbed permanently by
Fraser Alexander Bulk Mech as acting supervisor within
a short period. Soon she was fulfilling the full-time role
which led to her appointment as production assistant
supervising the screens and crushers.
After Ofentse excelled in this role, she was appointed
as sub agent on the Sasol site in May 2012. Her two
years of leadership on this site was characterised
by the high standards and professionalism that she
learnt from her area manager and resulted in her
appointment as site manager, which did her mentor
proud.
“My mentor was very strict and wanted every task
done perfectly. I also learnt to be assertive from him. As
a woman manager on site, it is important to lay down
the ground rules from the start.
“I am used to being in a male-dominated
environment, as I studied metallurgical engineering,
but not all men are used to taking instructions from a
woman, and men who belong to some cultures often
need to change their mindsets.”
It is clear that Ofentse’s inclusive approach ultimately
drives her team to perform: “There are men here on
site who have done hard physical work for years and
years — you need to respect and recognise them by
listening what they have to say.
“When they feel heard, the team starts being
productive and targets are met.”
Ofentse Koffman, woman site manager on the Vanggatfontein site for our Bulk Mech division, is proving
that the democratic management style associated with female managers contributes to the company’s
bottom line.
“My mentor was very strict and wanted every task done perfectly. He encouraged me to
work hard by saying that I might become site manager if I did.”
ETHICS
Unyielding integrity is one of our most important values. The reason for this is that conducting business with
integrity enables us to build trust relationships with all our stakeholders. Our group has implemented an ethics
hotline to formalise the reporting of unethical and corrupt behaviour and will measure incidences of unethical
practices.
22 ETHICS
Introducing a
CODE OF ETHICS
F
raser Alexander aspires to maintaining
the highest ethical standards in all our
business activities and relationships.
To support this objective, the
company developed a Code of Ethics
in 2014 that serves as a guide for ethical
behaviour within the company.
The code covers the issues of conflict of
interest, confidential information, corporate
image, gifts and hospitality, bribery and
corruption and a duty to report fraud,
unethical behaviour, theft and misconduct.
It was introduced to staff via our intranet
during the reporting period and all new staff
members are made aware of the code at
induction sessions.
Fraser Alexander further encourages
compliance with the code at our annual
ethics awareness campaign day, held
in December each year. At this event,
staff members are encouraged to sign
a document comprising our Code of
Ethics to show that they are committed to
these principles. Laminated copies of the
document are placed on the noticeboards
of operating sites to remind them of their
commitment to this high ethical standard.
The ethics awareness campaign day
also promotes the Group Fraud Hotline
instituted in the company in 2010. The
hotline is operated by KPMG and allows
staff to anonymously report any unethical
behaviour via telephone, fax or email. It is
part of a broader ‘fraud framework’ within
the company that allows staff to report fraud
and corruption via internal channels. Every
report of alleged misconduct that is made
via either the hotline or internal mechanisms
is lodged, investigated and acted on before
feedback is given to the whistleblower.
In 2014, the majority of reports of
alleged fraud and unethical behaviour
were made via the hotline. A total of 21
calls were logged for alleged incidences
of misconduct and all these reports were
handled in the stipulated manner.
Fraser Alexander continues to work on
preventing fraud and corruption by instilling
a value-based culture in the company. Our
values of Show Care, Have Passion, Earn
Trust and Be Brave must ultimately inform
all that we do.
STAKEHOLDER
RELATIONS
Our aim is to be a valued member of the communities in which we operate. To this end, we strive to have a positive
impact on all our shareholders by contributing to the social and economic development of local communities,
developing local enterprises or being a valued business partner to our clients. In order to asses the impact of our
partnering initiatives, we measure corporate responsibility spend and undertake satisfaction surveys.
CLIENT
SATISFACTION
2012 2013 2014
CSI SPEND
GROUP
2012 2013 2014
24 STAKEHOLDER RELATIONS
Fraser Alexander’s approach to enterprise
development, corporate social investment,
and the social and economic development
of communities is not only driven by legal
requirements and risk mitigation, but primarily
by the company’s guiding philosophy, which
is that we must do what is right.
The enterprises we select for development,
through intensive coaching, mentoring and
financial support, are firstly selected on the
basis of the value they add to society. We
believe that they must add value to business
as well as the community, and we always
apply this criteria in selecting organisations to
support.
In 2014, our support of enterprises was also
influenced by the challenges that followed
the Marikana tragedy. The debt-counselling
company that we supported launched a pilot
project in the Royal Bafokeng, Rustenburg
to address the financial difficulties that some
mine workers find themselves in; and the
spaza bike hawker initiative shows the local
community that mines operating in the area
are investing in small enterprises. This initiative
was rolled out under the auspices of the Royal
Bafokeng Enterprise Development (RBED).
Our approach to enterprise development
is to not duplicate existing structures and
efforts, but to work with other companies
and organisations in order to be impactful.
Therefore, in rolling out the mobile
spaza initiative, we enrolled the hawker
beneficiaries of the project in the National
Youth Development Agency’s (NYDA) existing
business training course.
The pilot solar-power project we rolled
out across the villages of Royal Bafokeng
contributes to the social and economic
development of the area, as the solar-power
systems give poor families access to lights
and hot water at a significantly reduced cost.
The improvement these systems made to the
lives of the families that were beneficiaries also
boosted their morale — some of the jobless
beneficiaries indicated that the solar-power
installations have renewed their hope overall.
Fraser Alexander uses enterprise
development as a business tool, in the sense
that some of the enterprises we select for
development are turned into company
suppliers. One of the enterprises we supported
in 2013, for instance, Opinionated Trading
Enterprise, provides us with BEE certificates.
We also contributed to the Ekurhuleni Business
Facilitation Network (EBFN) during the reporting
period, which supports entrepreneurs on
the East Rand, with a view of tapping into its
infrastructure to identity suppliers.
In 2014, our social and economic
development work included the financial
support of cultural organisations, such as
the Bafokeng Arts Theatre, a group of artists
from the Royal Bafokeng that is dedicated to
preserving Tswana dance and culture.
A highlight for our enterprise development
team in 2014 was the invitation by Anglo
American to exhibit our achievements at its
annual enterprise-development conference.
This honour showed to us by a major mining
company serves as recognition that we are
distinguishing ourselves in this sector.
STAKEHOLDER RELATIONS 25
B
efore she became a beneficiary of the innovative Spaza Bike Initiative, Sharron Motepe
of Tlapa Village near Marikana, says she lived an almost goal-less life of peddling sweets
to the village community.
“I have always been interested in running my own business, but I spent my days
listlessly selling sweets as I didn’t have the means to realise my vision,” says Sharron. “However,
my life has truly changed since Fraser Alexander and the Royal Bafokeng Enterprise
Development (RBED) helped me to upgrade my business through its mobile spaza
programme.”
Sharron’s polished mobile spaza shop is parked in her large, wire-fenced yard, situated
next to the wide gravel road running through the village. The bike shelves are filled to the
brim with the bunny chow, bread, cheese, polony, atchar, chicken, energy drinks and sweets
she is set to serve her regular lunch customers.
As she pushes it into the shade of one of the big trees beside the yard, she reveals: “I
was so excited when I first received the brand-new spaza bike, along with a large stock of
wanted goods, I didn’t know how to say thank you. It was a big business injection as I could
sell the stock and replace it with some of the money I made.”
As a result of the business training she and the other mobile spaza bike beneficiaries
received, Sharron was able to locate good suppliers for her business. She proudly proclaims
that she is the only hawker in the area who sells pieces of chicken. In doing so, she delivers a
good service to the local community as they no longer have to make the long, expensive trip to
Marikana Power Trade to buy their meat.
A group of young people on their way home from a training course with the local
Department of Social Development arrives. They gather around the spaza bike, buy chicken,
polony, bread, fresh atchar and soft drinks, and sit down on the grass under the trees to enjoy
their lunch.
“Sharron’s spaza shop has been very helpful since we started our course in January,” says
Lerato Mosisi (34). “The shop is too far from here and her prices are good.”
Lerato adds that unemployment is rife in the area and that some members of the community
feel that the mines operating here can do more to help the jobless. “This initiative is making
a start,” she adds on a more positive note.
Sharron counts the day’s earnings and puts it away safely in her purse. “My life
has changed since I started trading with the spaza bike,” she says. “Previously,
we ‘ate’ all the profits I made from selling the sweets. I now have savings, and
it grows by R50 to R100 every week.” She is able to offer this positive report
only because the business training the hawkers received taught them the
importance of saving their business profits.
Sharron’s upgraded business has helped her set further goals: She
says she wants to further expand her ‘tuck shop’ by introducing more
products, such as maize meal and sugar, to her goods in the near
future.
“I think I am going somewhere with my little business,” she
says optimistically. “In fact, I promise you that when you visit
me here again next year, you will find my mobile spaza parked
outside my big shop — only to be used for deliveries.”
MOBILE SPAZA
inspires business vision
The mobile spaza initiative has filled Sharron Motepe with optimism that she will become a fully-fledged
business woman serving Tlapa Village.
26 STAKEHOLDER RELATIONS
“Since I received the spaza bike, my life has
become a lot easier, I am not short of anything and my
business is coming ‘all right’.
STAKEHOLDER RELATIONS 27
with tourists whose shiny cars are brought
to a halt by the four-way stop sign. Next to
Papiki, another hawker shows off a nifty 4x4
vehicle crafted from wood. A third sits under
the shade of a canopy erected on the paved
sidewalk and guards his ingenious galvanized-
wire egg beaters that go for a steal, at only
R100 each. Across the road, a herd of cattle
charges through an open field.
One of the traders at the intersection
turns out to be Papiki’s young uncle, Godwin
Morobe (36), who is full of appreciation for
T
he intersection between the R510
and R556 in North West is a lively,
informal entrepreneurial hub
where spirited hawkers from the
surrounding villages sell bags of fresh oranges,
soft drinks, wooden crafts and inventive
galvanized-wire goods to motorists travelling
to and from Sun City, as well as miners on
the road between Rustenburg and the area’s
platinum operations.
One of the hopeful hawkers who pulls out
all the stops to sell their goods throughout
the day, is 24-year-old Papiki Morobe from
Tsitsing village, one of the select beneficiaries
of the spaza bike initiative.
Papiki reveals that business has improved
greatly since he received the spaza bike with
a generously stocked cooler from Fraser
Alexander. It has enabled him to start selling
expensive energy drinks, such as Play, Monster
and Red Bull, which are popular with all his
customers.
“Since I received the spaza bike, my life has
become a lot easier,” says Papiki. “I am not
short of anything and my business is coming
‘all right’. I take the money to the bank and
buy products that I don’t have. I bank about
R150 every week.”
He explains that business is not the same
every day, but that he always has money in his
pocket nowadays, which makes him happy.
Today, he carries R380 on his person, which
he will use to buy flour, porridge and all the
other groceries he needs when he cycles to
Rustenburg on his spaza bike later.
A large, heavy truck pulls off onto the
shoulder of the road and its driver signals
that he wants nuts. Papiki grabs a bag from
his spaza bike and energetically runs across
the road to swiftly conclude the transaction
through the driver’s window.
He immediately returns to the side of the
R510, and continues to cheerfully haggle
One of the hawkers who has received a mobile spaza from Fraser Alexander tells how the gift has enthused
him to grow his trade and save money.
the change ‘Papiki’s mobile tuck shop’ has
brought to his nephew’s life.
“He cycles from home and parks here for
the day, as this is a busy road. There is a lot of
business here. It is keeping him busy, making
him a good person — not one that steals
or drinks beers. He is here from Monday to
Monday,” enthuses Godwin.
Has the mobile spaza initiative made a
positive impact to Papiki as well as his family?
“More than the words you are saying,” is
Godwin’s heartfelt reply.
MOBILE SPAZA
makes life easy for Papiki
28 STAKEHOLDER RELATIONS
T
he project, undertaken in conjunction
with the Royal Bafokeng Enterprise
Development (RBED) and technology
supplier Fortune CP, supplied about
51 disadvantaged homes in semi-rural areas
with solar-power systems. The result is that
households that never had geysers before
now have hot water and lights, and save a
significant amount in monthly electricity costs.
Fraser Alexander and the RBED
conceptualised and initiated the project
Pilot solar project
BRINGS OPTIMISM
to Bafokeng villages
before selecting a small local enterprise, DD
Installations, to implement it.
Our choice fell on DD Installations as owner
Martin Motuku not only has installation work
and film-production experience, but also has a
keen interest in environmental matters. Motuku
was given the opportunity to complete SETA-
accredited training in hot-water cleaning at
Clean Heat before he launched the project with
the support of Fraser Alexander and the RBED.
On completion of the pilot phase, Martin
reported that he found the joint planning
phase of the project very useful as he learnt a
great deal more about this aspect of project
management.
The implementation phase also offered a
steep learning curve. Martin learnt that one has
to make provision for unforeseen expenses,
and work beyond the planned scope of work,
when one works in a disadvantaged area:
“we were working in 29 villages all over the
Bafokeng region. Because the homes were
disadvantaged, we sometimes had to buy more
material and sometimes had to wire the whole
house, which was outside the scope of work.
And the plumbing work as well… we had to do
more than we bargained for,” he revealed in
our 2014 enterprise development publication,
Hope Inspires Dreams.
Martin trained and employed young people
from the area to assist him with the installation
of the solar-power systems, which were
specifically designed for the village homes by
Fortune CP. The systems cost about R20 000
each, and have the capacity to power a geyser,
One of the most remarkable enterprise-development projects Fraser Alexander carried out in 2014 was the
far-reaching pilot solar-power project we rolled out across 29 villages in the Royal Bafokeng, Rustenburg.
Sinah, who lives with her three children
and their grandmother in a large brick house
down the road from the Royal Bafokeng
administration, explained excitedly: “The
problem before was that we had no lights…
now I even have a charged cellphone, television,
radio and hot water. Every day there is light in
my house, and we wash with warm water!”
lights, television and other small household
appliances in a village home.
“We installed a solar panel and water geyser
on the roof and an inverter, controller and
plugs in the house,” said Martin, who admitted
that the greatest challenge he faced during the
implementation phase of the solar project was
to master all the technical aspects of the job
and motivate some of the young people on
his team.
However, the most rewarding aspect of the
project for him was bringing solar power to
poor people who had never had geysers in
their homes before, and were not aware that
radiation from the sun could be turned into
energy.
In addition, the pilot project has empowered
Martin and his company to supply solar power
on a commercial basis, should the opportunity
arise.
“I had never done any construction work
before, but this puts me right there in terms of
powering buildings and households. I never
thought that I would do plumbing in my life,
and now I’m a plumber,” Martin reflected with
a smile.
The impact of the pilot solar project can also
be measured in terms of the significant saving
in electricity costs and improvement in quality
of living it brings about for its beneficiaries.
One beneficiary, 40-year-old mother
Sinah Kwinda, reported that the system she
received relieves the financial pressure on the
household by reducing her monthly electricity
expenses from R350 to R100.
STAKEHOLDER RELATIONS 29
Every day there is light
in my house, and we wash with
warm water!”
30 STAKEHOLDER RELATIONS
2014 Budget Spend Allocation
SED Amount ED (Enterprise Development) Amount
Bafokeng Arts Theatre Grahamstown R40 000.00 Terisano Ventures (Solar Panels) R267 083.00
JSA Softball R5 500.00 Tshedime Trading & Projects (Mobile Spaza) R262 076.00
Keaton Mining (T-shirts) R22 800.00 Thabang Logistics (Mango Pickles Manufacturing) R541 076.00
Thaba Legae Guest Lodge R15 333.00 Ingwapele Technology (Pilot of SMME’s) R95 000.00
Ya Hina Management Consulting R87 500.00 Opinionated (RBH BEE Scorecard) R110 000.00
Kuruman Soccer Team (Michael Loses) R19 475.00 Tricor Signs R17 400.00
Mocha Mana’s Catering (Mandela Day) R5 000.00 Makoya Spice ‘n Mor R148 850.00
Mmapheto Food Delights R36 500.00 Vuka Lova Organic Farming R147 400.00
The Shine Trust (Argus 2015 entries) R11 410.00 Creative Space - ED Conference R32 977.00
Royal Bafokeng Administration Suite Rental (Soccer) R11 700.00 Mecure Inn - ED Conference Accommodation R6 647.00
City Living Boutique R735.00 Mmamothofela Solutions R38 877.40
Lead Young R20 000.00 Malapalama Park R103 000.00
Grocoat R47 767.00 Tswelopele Partnership (Antaletse) R41 000.00
Letsama La Kotulo R49 541.00 Patio Warehouse R31 801.00
TOTAL R373 261.00 TOTAL R1 843 187.40
Corporate Social Responsibility Spend
Total budget allocated: R2 350 000.00
Total SED: R373 261.00 Total ED: R1 843 187.40
Total (SED & ED): R2 216 448.40
Available: R133 551.60
Total Spend: R2 350 000.00
RESPONSIBLE
STEWARDSHIP
We aim to systematically manage and reduce our environmental footprint through reducing resource consumption,
waste production and our carbon footprint.
DIRECT
EMISSIONS
2012 2013 2014
INDIRECT
EMISSIONS
2012 2013 2014
OTHER
INDIRECT
2012 2013 2014
32 RESPONSIBLE STEWARDSHIP
O
ur Construction division reached the
milestone of obtaining 14 001 certification
for its environmental-management
system in 2014, after embarking on a
rigorous process of designing and implementing an
environmental-management system for the division
over two years.
The certification signifies that the division not only
complies with environmental legislation, but also meets
the highest environmental standards prescribed by the
ISO 14 001 benchmark. In layman’s terms, it signifies that
we have systems in place that help us to consider the
environment in all our activities.
We first embarked on the road to certification in 2012,
when our management made a firm commitment to
formalise our construction division’s environmental-
management system.
A management policy with environmental targets
and objectives was put in place, and a legal register with
legal requirements was drawn up before operational
procedures were established. The operational
procedures stipulate exactly how the range of our
construction activities should be carried out legally - for
example, the disposal of waste.
In the implementation phase that followed, each
staff member’s responsibilities were defined, and
awareness and competency training was conducted
in collaboration with Potchefstroom University.
Internal communications played an important role in
implementing the system; staff was further informed
about working in an environmentally friendly way during
toolbox talks.
Achieving
ISO 14 001
CERTIFICATION
The system includes proper control of documents,
which stipulate operational controls such as managing
waste and water, and covers the monitoring and
measuring of environmental performance against the
standards contained in the system.
It also prescribes an annual management review,
which scrutinises the functioning of the system and
makes recommendations with regards to addressing
any weaknesses. This follows internal audits that are
conducted every second month to establish trends in
our environmental performance.
For Fraser Alexander, the achievement in obtaining
ISO certification lies in the fact that the ISO standard is
merely a guideline and that we tailor-made it to suit the
nature of our business.
Since the system is still in its infancy, Fraser Alexander
Construction concentrated on measuring staff
members’ understanding of the system, and their role in
implementing it in 2014.
TRANSFORMATION
OWNERSHIP 2012 2013 2014
MANAGEMENT
CONTROL
2012 2013 2014
EMPLOYMENT
EQUITY
2012 2013 2014
SKILLS
DEVELOPMENT
2012 2013 2014
PREFERENTIAL
PROCUREMENT
2012 2013 2014
ENTERPRISE
DEVELOPMENT
2012 2013 2014
SOCIO-ECONOMIC
DEVELOPMENT
2012 2013 2014
34 TRANSFORMATION
For Fraser Alexander,
transformation is both a
philosophical tenet and a
practical imperative that
drives the company’s
business strategy and
culture. It helps us to foster
environmental sustainability,
social justice and cultural
change while we pursue
our economic and business
objectives.
Our commitment to transformation in the context of
the South African socio-economic and socio-political
environment is fraught with challenges due to our
legacy of exclusion. In responding to these challenges,
Fraser Alexander has resolved to embrace and realise
the broad transformation agenda enshrined in Chapter
2 of the Constitution (the Bill of Rights), as well as the
transformation goals behind the B-BBEE Act.
Fraser Alexander’s B-BBEE performance has improved
steadily since the advent of the B-BBEE Codes. This is
largely due to our ability to collaborate and partner with
relevant players and stakeholders, and a sincere effort
by the company to bring our culture, values, vision and
business strategy in alignment with each other.
Transformation
REPORT
TRANSFORMATION 35
Ownership
The fact that Fraser Alexander is wholly owned by the Royal Bafokeng Nation places an even larger onus on the company to score well in the ownership
element of the B-BBEE codes. The company has consistently scored full points in the three years running to 2014. There was a slight dip in the points
earned for this element in 2013, but we recovered the points by making a ‘substance over form’ submission in the New Entrants criteria, based on the ever-
growing Bafokeng population.
Management Control
The race and gender composition of the company’s board and top management structure improved significantly from a low score to 4.33 points in 2010,
then rose slightly to 5.88 in 2011, before soaring to the full 10 points − following the reconstitution of the board and the appointment of two black female
executives. The score slid back to 6.51 points in 2014, but Fraser Alexander continues to strive to achieve a representative top management structure,
including both executive and non-executive members.
Employment Equity
Our employment-equity rating has declined from 5.38 in 2013 to 3.69 in 2014, as a result of staff turnover and new staff appointments. Fraser Alexander
therefore still faces the challenge of transforming the demographic profile of our workforce to reflect that of South Africa’s economically active population.
The company is constantly monitoring its employment equity compliance and is implementing measures such as organisational culture assessments,
targeted recruitment and accelerated training and development, to establish a pool of employment-equity employees ready to assume middle- and senior-
management roles. We deliberately avoid tokenism by ensuring that new recruits and staff who are promoted are suitably qualified for their positions.
Skills Development
Fraser Alexander continues to invest resources in the training and development of staff. This is part of our business imperative to supply the company with
well-trained, productive employees, including highly-trained and skilled employees from previously disadvantaged backgrounds. Because we operate with
a nearly unique technical skills set, we conduct most of our training in-house, with the help of highly experienced internal resources who act as coaches
and mentors. Further, Fraser Alexander continuously increases the number of learnerships in the company, which has improved the company’s score in the
skills-development element from 8 in 2013 to 12 in 2014.
Preferential Procurement
The company has scored slightly lower in this element − largely as a result of lower procurement spend and lower spend on companies with a B-BBEE
score of above Level 4. However, we are planning to streamline our vendor application and vetting processes to ensure that suppliers with a scorecard rating
of Level 4 or above gain preferential procurement opportunities from Fraser Alexander.
Fraser Alexander will also consider a more centralised procurement approach targeting Qualifying Small Enterprises (QSEs) and Exempt Micro Enterprises
(EMEs). Preferential procurement has become a key element of the new Codes, as it requires that companies commit to procuring from black-owned small
enterprises.
Enterprise Development
Both our annual enterprise-development publications, Trading in Hope and Hope Inspires Dreams, showcase the initiatives that Fraser Alexander undertook
in 2013 and 2014. In conjunction with the scorecard, these publications indicate that Fraser Alexander is performing extremely well in this element as
our achievements often invite accolades from stakeholders. Our company has further succeeded in driving and supporting local SMMEs through our
community-development office in Rustenburg.
Socio-Economic Development
As a company that is owned by a community, the Royal Bafokeng Nation, Fraser Alexander is acutely sensitive and attuned to community issues. We
constantly interact with communities and work closely with other local organisations to uplift them. Whether we make donations in cash or kind, or initiate
projects, such as feeding schemes or teacher training in Maths or Science, Fraser Alexander has consistently scored full points in this element and is proud of
this fact.
Fraser Alexander’s performance in each of the elements of the 2014
scorecard is reflected below:
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
Design and layout: Canned Creative • Primary photographer: Ryan Roux • Secondary photographer: Mary-Ann Palmer
Produced by Different Angles
Tel: +27 11 929 3600 • Telefax: +27 11 397 4607 • Email: fainfo@fraseralexander.co.za
1 Marlin Road, Jet Park, Boksburg, South Africa

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  • 3. INDEX 03 WORKPLACE 04 FA NURTURES THE MANAGERS OF TOMORROW 06 THEMBA REACHES GREATNESS THROUGH SUPERVISOR DEVELOPMENT PROGRAMME 08 WYNAND LEADS CONSTRUCTIVELY 09 HEALTH AND SAFETY 10 COMMITTED TO ‘ZERO HARM’ 11 PAVING THE WAY FOR BETTER SAFETY 12 PEER EDUCATOR HELPS HIV-POSITIVE RELATIVES FIND ACCEPTANCE 14 TSHEPISO HELPS POSITIVE COMMUNITY MEMBERS GAIN A HEALTHY MINDSET 15 RESPECT FOR HUMAN RIGHTS 16 FROM RURAL VILLAGE TO ROLE MODEL 18 JEANETTE SETS THE BAR IN MINERALS PROCESSING 19 THABELO’S CHANCE TO LEAD 20 OFFENTSE ENGAGES EMPLOYEES IN SITE MANAGEMENT 21 ETHICS 22 INTRODUCING A CODE OF ETHICS 23 STAKEHOLDER RELATIONS 24 MOBILE SPAZA INSPIRES BUSINESS VISION 26 MOBILE SPAZA MAKES LIFE EASY FOR PAPIKI 28 SOLAR PROJECT BRINGS OPTIMISM TO BAFOKENG VILLAGES 30 CORPORATE SOCIAL RESPONSIBILITY SPEND 31 RESPONSIBLE STEWARDSHIP 32 ACHIEVING ISO 14001CERTIFICATION 33 TRANSFORMATION 34 TRANSFORMATION REPORT
  • 4. O ur fourth Sustainability Report captures the ever-compassionate spirit and efficient performance of our company. It also reflects our sincere, firm commitment to the 10 principles of sustainable development we are bound to as signatories of the UN Global Compact. The report covers a range of programmes we implement on an ongoing basis to put these principles into action and colourfully presents the impact these programmes have had on the lives of staff beneficiaries, their families and local communities. The safety and health of our people is our number one priority. We aspire to a fatality-free work environment and in FY2014 we achieved this objective across our divisions. We are grateful that our people are showing dedication and commitment in mitigating our material risks. We achieved a lost time injury (LTI) frequency of 0.89 injuries per million hours worked, slightly higher than the 0.75 injuries per million hours maintained in 2013. This moderate decline in our safety performance was due to an increase in security-related incidents in our Tailings division. We are working with our clients to implement security initiatives to ensure that our employees are safe. The continued growth in international demand for our services is driving us to concentrate on our training initiatives to ensure that our employees are properly equipped to face the challenges posed by our market. In fact, Fraser Alexander is known for excellence with regard to the development of its staff. The Workplace section again features staff members who have been trained and developed to confidently live up to the high standards of our brand. One of our key policy documents is the Fraser Alexander Code of Ethics, which was developed in 2014. ‘Working with integrity’ applies to every member of our work-force and is based on our value of Earn Trust. It highlights how we care as much about how good results are obtained as we do about delivering them. Then, among the highlights of our 2014 Report, there’s the Human Rights section, which includes the narratives of staff members who hail from humble backgrounds but have made great professional strides, thanks to the support of our company. What is significant about their progress is not only the fact that they have elevated themselves and their own quality of life but that they have also shared their success with other people and brought about positive change in the process. Our commitment to spending four percent of net-profit after tax on community development (1 % NPAT) and enterprise development (3 % NPAT) programmes remains and ensures that our host communities continue to share in our success – both in the short and long term. Our Stakeholder Relations section captures two of the cutting-edge initiatives that have come to characterise our work in this area. It further shows how our heartfelt initiatives help people to realise their business dreams and inspire community members who had lost hope of living a productive life. I would like to sincerely thank all our employees and contractors for their commitment and efforts and for their contribution to the success of Fraser Alexander. I welcome any feedback you have in relation to this report and look forward to reporting our progress on creating value for all our stakeholders next year. Velile Nhlapo, CEO: Fraser Alexander WELCOME to Fraser Alexander’s 2014 Sustainability Report
  • 5. WORKPLACE At Fraser Alexander, we endeavour to create an inspiring work environment where employees feel motivated, as this forms the basis of employee performance and satisfaction. Our group also strives to be an employer of choice by supporting employee career and personal development and helping our people to align with our values. Employee turnover, absenteeism, mentorship engagement and training spend are used as indicators of trends in workplace harmony and alignment. MENTORSHIP ENGAGEMENT 2012 2013 2014 TRAINING SPEND 2012 2013 2014 EMPLOYEE TURNOVER TOTAL 2012 2013 2014 EMPLOYEE TURNOVER REGISTRATIONS 2012 2013 2014
  • 6. 04 WORKPLACE FA nurtures the MANAGERS OF TOMORROW A number of promising and ambitious staff members in our Tailings division, who completed our Tailings Training School’s Supervisory Skills course in 2014, have gained the skills and confidence to follow in the large footsteps of their dynamic role models in the division. The staff members seized the opportunity to build their management skills through the challenging course as Simon Zwondane, senior site manager in Tanzania for Tailings, and Philemon Jwili, area manager in Rustenburg, proved to them that one can advance in the organisation through hard work and training. Both Zwondane and Jwili first joined the company as general labourers and eventually attained the sought-after management positions after completing management development programmes through the company. One of the students, Geoffrey Mashilo (31), says Simon has been his inspiration and role model throughout his career. Geoffrey had worked under Zwondane’s supervision when he first joined Tailings as a general labourer and had asked Zwondane to train as a machine operator as he was aware of his supervisor’s equally humble beginnings with the company. “I worked as a machine operator under him for four years. Eventually I went to Simon and told him ‘I need to be an operations supervisor like you After completing the Supervisory Skills course through the Tailings Training School, a number of our talented staff members have begun to follow in the footsteps of the successful role models within our company. – how do I achieve this?’ He pushed me and showed me to do things the way he did,” reveals Geoffrey. Commenting on Simon’s subsequent promotion to site manager, he says: “We see our brother go up and we will follow him next time.” Geoffrey was transferred to the Rasimone site, where he continued doing machine work. He told his superiors on this site, too, that he wanted to be an operations supervisor. They gave him the opportunity to act in this role when the Rasimone site’s operations supervisor was away. His good performance in this role led to the opportunity to hone his skills in the Supervisory Skills course. Geoffrey was appointed operations supervisor at our Impala site upon completion of the course – an excellent example of the course’s serving its purpose. His appointment at the large Impala tailings dam complex means that he now carries great responsibility and faces big challenges in the everyday running of the operation. “To have great responsibility is not easy, but it’s nice,” says Geoffrey. “At Impala, I have to think faster and solve challenges.” However, he indicates that he has been equipped to meet these challenges head on: “Make a plan, set a goal, absorb the pressure and meet the target,” Geoffrey says, passionately describing how he makes our client happy. The course has also given the 43-year-old Selby Mokoele the career advancement he wanted for a long time. He was promoted from team leader to supervisor on the Union site in October 2014, after being equipped to effectively manage staff and make good decisions on site. His promotion followed four years of serving as team leader on a site in Brits. “I have learnt how to better communicate with staff on the ground and how to deal with a range of staff issues, such as motivating unhappy people to learn and grow. “I know how to make them love their jobs,” says Selby. He adds that while he did the course he was sent to attend early-morning site meetings with the client. Selby was then given the opportunity to make operational decisions on site and gained the courage to make suggestions to the site manager. “The site manager trusted me and also learnt from me,” he reveals. “This course gave me what I needed in life; new knowledge and a new challenge. But I still want to learn more, in order to be someone like Simon Zwondane – guys like him are the inspiration.” “Can we do it? Be like them?” he asks. “Yes, we can. We need only to focus on our jobs and seize the training opportunities we are given.” Geoffrey adds his voice: “It’s not a matter of money, but a matter of growing; we need to have a better future.”
  • 7. WORKPLACE 05 TAILINGS TRAINING SCHOOL Fraser Alexander’s Tailings Training School, located at its Bleskop office in Rustenburg, offers training fully accredited by the Mining Qualifications Authority (MQA). The competencies our employees gain through the centre are recognised nationally; staff obtain credits registered on the database of the South African Qualifications Authority (SAQA). This gives our clients the assurance that our employees are adequately trained, as the MQA is a sector education training authority (SETA) for the mining and minerals sector. The Tailings Training School is accredited to offer four courses, including slimes reclamation, tailings dam operations, occupational health and safety and a supervisory skills programme. It conducts all administration related to training internally, from the start of a course to the stage where the MQA issues certificates. We use the MQA-I-Share system to capture all information, including names of learners and assessors, dates of training assessment, and names of moderators. On completion of the training, the MQA verifies that all requirements have been met and produces the certificates. The advantage of offering our employees accredited training is that it empowers both our staff and our company. In 2014, a group of promising employees, from general labourers to acting supervisors, was given the opportunity to complete our supervisory skills programme. Of the 29 employees enrolled in the course, 20 were successful and five were promoted to more responsible positions within the organisation. The course had practical and theoretical elements and covered the following modules: apply basic written and oral communication skills; perform one-on- one training on the job; explain the individual’s role within the business; apply self-management principles; and plan, organise, lead and control activities. “It’s not a matter of money, but a matter of growing; we need to have a better future.”
  • 8. 06 WORKPLACE MANAGEMENT ADVANCEMENT PROGRAMME (MAP) The MAP programme, held at Fraser Alexander’s Naauwpoort training centre from February to July 2014, equipped supervisors with the skills and knowledge they need to be successful managers — it introduced them to basic labour legislation, business management, client relations and employee engagement. The programme was offered to 27 supervisors in the division selected on the basis of their excellent performance in implementing the Bulk Mech Operational Standards manual. The delegates were required to spend two days on each of the six modules in the course and completed one module per month. The MAP programme was the culmination of a number of strategic steps to identify and address gaps in leadership capacity within Bulk Mech. The division gave its best performing supervisors this opportunity as they are front-line managers who need to work independently. MAP was also part of an ongoing effort to grow our management pool internally. “Even when you learn a small thing, it can take you to the next level; it makes you big.”
  • 9. WORKPLACE 07 “ Before I did the supervisor development programme, I was reporting to my site manager and following his instructions. But since I have been better equipped by the course, I work directly with the client who tells me what needs to be accomplished on site. I give my team of operators instructions and when they have completed the work, I merely inform my site manager of what we have achieved. “I am now in charge of my team and all the activities on site,” says Themba Mkhonza, Bulk Mech supervisor on our Koornfontein site, proudly. Themba took responsibility for our materials handling operations and his team of yellow machine operators, after completing the supervisor development course at our Naauwpoort Training Centre with a number of other handpicked supervisors from our Bulk Mech division. He says the course has essentially taught him to consider the “bigger picture” in providing leadership on site. “I have learnt what I must plan for, how to manage my team and to always ensure that safety is in place,” he says confidently. “At the start of the morning shift, I establish how many machines we have available to operate and how many activities we need machines for. We have 13 ADTs, 11 FEL’s and a number of other equipment that we use in our discard and materials handling operation. “Then I monitor the volume of tonnes the trucks move per hour. I have learnt how to manage my people to reach the production targets, and it is important to work safe. We need higher productivity, but we don’t need more accidents,” explains Themba. THEMBA REACHES GREATNESS through supervisor development programme Supervisor Themba Mkhonza has been trained to lead his team of operators to higher productivity. He maintains and improves production by closely monitoring his team of operators every day, ensuring that they perform their jobs effectively. “If I notice that an operator doesn’t know what to do, I stop him and show him how to operate. Our job is to handle all the products and discard on the premises, so the mine runs uninterruptedly.” Themba explains passionately how the training has invigorated his approach to supervising: “I feel inspired; training refreshes your mind. It helps you to find new and better ways of doing things.” “I am able to make bigger profits for the company now — I know what’s right and what’s wrong and I do things accordingly,” he enthuses. “If you learn, you grow. If you don’t learn, you ‘stay in one place forever’. Even when you learn a small thing, it can take you to the next level; it makes you big.”
  • 10. 08 WORKPLACE T his comes as the programme has revealed to him his strengths and weaknesses as a manager and presented him with the formal qualification that he lacked for further career growth. Wynand says the programmed has shown him that he mainly relied on his own insight to solve challenges in the past and that he was very involved in the details of operational decisions of sites that reported to him. He also found it challenging to manage people of different ages and backgrounds and understand their abilities and limitations. However, as he got to know himself better through the programme, he overcame his shortcomings in managing people by drawing on his strengths. Wynand has adapted his coaching style to manage each person in accordance with the staff member’s own strengths and weaknesses and now encourages others to give more input during meetings. “I have learnt to consider the people who report to me, as well as those I report to, and I know how to get the best out of each of them,” says Wynand. “You can only succeed with the support of others.” He explains that his communication skills have improved and that this is key to getting each staff member to perform to the best of his or her ability. As a contracts manager, Wynand liaises with senior people, unions, communities and staff members on a daily basis, so effective communication skills stand him and the company in good stead. One example of how this has improved his relationships with stakeholders is the fact that he now has considerable access to union shop stewards who willingly facilitate meetings with tribal heads in his business area. Wynand’s understanding of teamwork has also deepened to the extent that he has come to see all staff members as one instrument. He incorporates the games that were played as part of the programme on site to identify which role a particular staff member should assume. “When staff members play denga they build a block tower and individual employees are then tasked with extracting blocks from it. Some of them simply go ahead and remove a block, while others make sure that they consult the rest of the group before they act,” says Wynand. He applies what he has learnt on the programme by delegating more tasks and recognising staff for a job well done. This new management approach has invited feedback from site managers, who experience his leadership as more constructive. Furthermore, the programme has given Wynand a new lease on life in general: “I was scared of challenges in the past; scared of doing new things. One of the reasons may have been that I never completed school. So when I received the opportunity to do the management development programme, I told myself that I should try to complete it in order to have a formal qualification behind my name. “Halfway through the course, I realised it was the best thing the company has introduced yet. And now that I have completed the challenging programme, I have a qualification higher than a matric certificate. “In future, this experience and qualification will open doors for me. But what is important for me right now is that I am a better manager.” Wynand learns to LEAD CONSTRUCTIVELY MANAGEMENT DEVELOPMENT PROGRAMME In 2014, Fraser Alexander gave another group of supervisors and middle managers in the Tailings division the opportunity to complete either a Higher Certificate or Certificate in Management Development through the Maccauvlei Learning Academy. The courses essentially offer leadership development, which includes building competence in a range of skills, including the development and evaluation of operational strategies, performance monitoring and measuring, innovative improvement interventions, leading a team of first-line managers and building relationships. It further offers training in the development of teams, application of risk principles, financial and knowledge management and business ethics within internal and external regulatory frameworks. Importantly, the programme also works on the attitudes and values of our managers, ensuring that they are fully equipped to lead the company. The Certificate in Management Development is equivalent to a National Qualifications Level (NQF) Level 4 qualification and the Higher Certificate to an NQF Level 5. In 2014, nine learners from the Tailings division successfully completed the Higher Certificate and five learners gained the Certificate in Management Development. Our management development programme has transformed contracts manager Wynand Coetzee’s management style and revitalised his outlook on life. “You can only succeed with the support of others.”
  • 11. HEALTH AND SAFETY The health and safety of our employees and communities is of paramount importance to us. We aim for zero harm to employees and third parties and proactively support employee health and personal security. Being a caring organisation also makes good business sense as performance is directly related to a secure environment and quality of life. Safety related statistics, sick leave per employee and training of employees in personal safety and first aid are tracked as indicators of our performance. SAFETY PERFORMANCE 2012 2013 2014 SICK LEAVE PER EMPLOYEE 2012 2013 2014
  • 12. 10 HEALTH AND SAFETY Middle management in turn encourages the workforce to report incidents to ensure that the necessary learning can happen and that sustainable measures be put in place to prevent any repeats. Our company also goes to great lengths to ensure it understands the real issues that impact on the safety of our employees: interaction among the various levels of management and the workforce are encouraged through behavioural observations, visible felt leadership and frequent audits. Finally, we instill our safety beliefs in our staff through good communication and continuous awareness-making. SHEQ systems Our company regularly measures the performance of its SHEQ systems. Two full audits are carried out at each site every year and findings are raised against non-conformances. Deviation audits are carried out in between these two annual audits to measure progress on findings raised against non- conformances and to ensure that the corrective action taken is sustainable. Audits are attended by senior site personnel so they can be recognised for good performance and take ownership for addressing shortcomings. The effectiveness of the SHEQ systems are also discussed amongst our company divisions at monthly meetings. Here, the various divisions raise issues that need to be changed. This helps us to improve our systems and, once changes have been implemented, our staff provides us with feedback on the effectiveness of the changes. The SHEQ manager of each division is also a member of the Fraser Alexander Sustainability Forum that meets every third month. This forum compares the SHEQ results of the different divisions against the objectives and targets of our quarterly SHEQ programme and launches new initiatives to improve overall SHEQ performance. This forum also provides our SHEQ managers with the opportunity to share best practice with their colleagues, which contributes to better overall SHEQ systems and programmes in Fraser Alexander. This sharing of best practice is vital as Fraser Alexander has a big footprint in the industry and needs to be able to respond to all the SHEQ requirements posed by the industry. Fraser Alexander facilitates the building of a trusting relationship between our SHEQ employees as this assists them to share and learn freely from each other – and ultimately enables the company to deliver quality solutions on time and within budget to the client’s doorstep. Committed to ‘ZERO HARM’ F raser Alexander has dedicated itself to committing ‘zero harm’ to employees in all its business activities. Our leadership team has undertaken to create a safe working environment where competent employees can perform their duties without injuring themselves or others. The company also sets safety goals and measures compliance with the main objective to ensure that we continuously improve. We have systems and processes in place that regulate how people go about their duties in their particular work environments and how they use the specified equipment. Before any work starts, employees have to identify all risks to themselves, others and equipment, and put mitigating actions in place to ensure that work is carried out in a safe manner. Fraser Alexander expects our leadership to be outspoken about safety and to understand how safety systems must be implemented to be effective. Our leadership is tasked with encouraging middle management to thoroughly investigate incidents and establish mitigating actions to prevent similar occurrences.
  • 13. HEALTH AND SAFETY 11 F raser Alexander achieved a Lost Time Injury Frequency Rate (LTIFR) of 0.89 per million hours in 2014, slightly higher than the rate of 0.75 per million hours of 2013. The moderate decline in our safety performance was due to an increase in security-related incidents in our Tailings division. Our Bulk Mech and Construction divisions achieved a good safety performance at the end of the reporting period, with Bulk Mech reaching 5 591 421 LTIF hours and Construction 3 957 585 LTIF hours respectively. Bulk Mech’s exemplary safety performance can be attributed to the work done in strengthening relationships between the operational and safety teams, allowing for a more focused and united approach when resolving safety challenges. The working relationship between the two teams further improved the efficiency of the internal safety auditing programme, enabling them to swiftly resolve findings. The Construction team’s equally good safety performance followed as a result of the successful implementation and certification according to OHSAS 18001. Looking at the other companies within our group, our Minerals Processing division succeeded in improving its safety performance in 2014, compared to 2013. This improvement was brought about by the continued implementation of their site-ownership model through the constant development and growth of employee skills. The safety performance of our Tailings division showed a moderate decline, due to an increase in security-related incidents occurring in this division. However, we are negotiating with our clients to improve overall safety and security at tailings storage facilities. Improving safety and safety systems More focus was placed on learning from past incidents in 2014, in order to improve general safety performance. Safety incidents were reported in a more standardised manner, by making use of company-developed software that enabled us to extract better lessons from past incidents to improve the quality of preventative action across the group. This effort has generally been successful, with the main challenge being the limited connectivity of employees working at remote operating sites. Fraser Alexander also made strides in bolstering our safety systems in 2014. We overhauled our MANCO (management committee) safety audits by enhancing the quality of questions before rolling out the audits in all functional areas of the business. The outcomes of the audits were discussed across the business, which contributed significantly to raising performance. Other activities undertaken to improve safety across our group included the review and simplification of our systems to reduce the pressure on resources to effectively run our safety systems. This process also led to the sharing of experiences and lessons amongst safety professionals. We are also stepping up our training initiatives to better equip middle management to manage safety risks. The mining industry is constantly growing its knowledge base and understanding in many areas that impact on employee safety and this drives our safety team to constantly improve the Fraser Alexander safety system. Safe culture and performance The range of initiatives that Fraser Alexander continued to implement in 2014 to promote a safe culture in the organisation helped some of our sites to exceed targets and expectations, while others are still performing below par. However, overall progress was acceptable and in line with our planning for the period. We remain focused on improving our safety performance and look forward to the day when we will be able to achieve zero harm. Paving the way for BETTER SAFETY Source Engineering news - SA mine fatality at all-time low, sets positive outlook for 2015 (Published 21 Jan 2015, Author: Natasha Odendaal) Injury Frequency Rate 2013 per million hours Gold mining Platinum mining Coal mining 4.27 1.48 3.41 Fraser Alexander 0.65 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 SEP OCT NOV DECJAN FEB MAR APR MAY JUN JUL AUG January 2014 to December 2014 LostTimeInjuryFrequencyRate(LTIFR) Fraser Alexander improved safety systems and training in managing SHEQ risk assessment in 2014 to promote our culture of putting safety first. Group LTIFR performance based on 12MMA and 200 000h What is FA’s Lost Time Injury Frequency Rate (LTIFR) and how does it compare to the industry average?
  • 14. 12 HEALTH AND SAFETY HIV/AIDS PEER-EDUCATION PROGRAMME Fraser Alexander adds value to the lives of its employees, the people they interact with and the community at large through our HIV/AIDS peer-education programme. As an organisation, we also benefit from the 36-week programme of the Education Training and Counselling (ETC) organisation, as it is aimed at creating awareness of the HIV/AIDS pandemic, educating employees on how to prevent infection, how to live healthy and long lives if infected and how to support people affected by HIV/AIDS. The programme is implemented by Fraser Alexander Tailings division. Because we believe that a healthy workforce is a productive workforce, our aim is to reach all of our tailings employees through the programme. In 2014, the programme continued to be rolled out across Fraser Alexander Tailings, with particular emphasis on the South African sites managed by the African Business Unit (ABU). An additional 10 peer educators were trained and found to be competent during this year, and they were deployed in the operational areas to present the HIV/AIDS peer-education programme. Staff members based in the rest of Africa attend the HIV/AIDS peer-education programmes presented by our clients. The programme reached an average of 50% of staff during the reporting period. We achieved this good result after setting ourselves a target of educating 20% of our employees with the roll-out of every 36-week programme. This realistic target we set ourselves ensures that all the employees in the Tailings division receive refresher training in a cycle not exceeding five years. Encouragingly, 90% of the peer educators who have qualified since the initial roll-out of the programme continue to present HIV/AIDS training to their peers. Our employees who are given the opportunity to qualify as HIV/AIDS peer educators are passionate about the subject and often also partake in community-awareness activities. Although we are not able to quantify the impact of our peer-education programme, due to the confidentiality of test results and a person’s status, there has been a general decline in employee deaths due to ‘medical reasons or conditions’. In addition, the number of employees who go for voluntary testing, as well as employees who confide in their management teams with regard to their status, has increased. This enables our management to better assist and support affected employees. Fraser Alexander participates in the voluntary testing campaigns of its clients, who invite all staff members and contractors to test on a regular basis. Anonymity of testing results is always guaranteed, and if a person tests positive, he or she is provided with the necessary medical assistance and support.
  • 15. HEALTH AND SAFETY 13 F raser Alexander’s peer-education programme has developed two of our peer-educator staff members into staunch advocates for quality of life for those living with HIV/Aids in their disadvantaged home communities. Team leader Ananias Malepe (37) has helped two of his HIV-positive family members, who live in a rural village near Burgersfort, to not only effectively manage the disease, but to live in harmony with their relatives, who initially rejected and abused them for their status. Ananias credits our peer- education programme for helping him improving their quality of life. “When I first learnt that they were positive in 2002, I was scared,” Ananias says, recounting the experience. “I didn’t want to lose either of them to the disease.” Although Ananias had limited understanding and information about the disease at the time, he was wise enough to encourage his relatives to visit the doctor and clinic to obtain sound medical advice. He also urged them not to pay attention to the family members who abused them or did not want to see them anymore, and to rather concentrate on their own well-being. “I told them that it was not the end of their lives, and that I would help them by getting them more information about HIV/Aids and how to fight it,” he says. Ananias joined Fraser Alexander in 2006 and it was then that an opportunity to fulfil his promise to his relatives presented itself. The company invited employees to become voluntary peer educators on sites across the Tailings division, so he immediately put himself forward for the training. “The peer-education training course helped me to support my family members better than before, as I could Peer educator helps HIV-POSITIVE RELATIVES find acceptance Ananias Malepe gains peace of mind assisting HIV-positive family members to live a quality life. “The peer-education training course helped me to support my family members better than before.” advise them on what to eat and how to take their medication. I also helped them to find caregivers who see them through every day,” he says. “Managing the disease is very challenging. You need the support of someone who is constantly there for you.” Ananias also succeeded in curbing the rejection by family members who did not want to live with, or visit, the two HIV- positive relatives for years by showing his family that they all needed each other. One of the HIV-negative family members had a baby who would not stop crying, despite the fact that Ananias’ mother had performed a cultural ritual to relieve the child’s discomfort. Ananias recruited one of the HIV-positive relatives, a sangoma-in-training, to conduct the ritual for a second time. The baby was finally soothed and the family came together again. Ananias reflects on how the lives of his HIV-positive family members have changed: “They are now able to manage the challenge. Where they were previously very concerned about their health and didn’t know what to do, they are now far better equipped. The family members who were at odds with each other also live together in the village again. They often say, ‘Without you, we were lost. Thanks for being there for us’,” reveals Ananias. For him, the greatest reward of being trained as a peer educator and applying his knowledge and skills outside the work environment is the fact that his feeling of deep concern for his family members has changed to one of lightness.
  • 16. 14 HEALTH AND SAFETY T shepiso Moila (34) is another one of our HIV/AIDS Peer educators who has grown into an agent of change in the community. He has been inspired and equipped to bring hope and new life where HIV/AIDS has sown hopelessness and despair. In his case, the good work started when he became a peer educator within Fraser Alexander in 2013. He was still living in his family home in Soweto when he learnt that children on his street had been orphaned by HIV/AIDS and was struggling to cope with everyday life. Tshepiso felt compelled to reach out to the children by taking them food and second-hand clothes as his peer education training had sensitised him to the ramifications of the disease. “The children were living with relatives, but were lost, they didn’t know what to do and where to go every day,” says Tshepiso. Our peer educator gained their trust through his regular visits and learnt that two of the girls, aged about 14 and 16, were HIV-positive. Tshepiso also learnt that they did not have birth certificates which they obviously required to apply for the government social grants available to HIV/AIDS orphans. However, he felt there was something that could be done and reported the problem to a local councillor who helped the children to obtain the necessary documents and the social grants. Tshepiso subsequently moved from Soweto to Daveyton to be near his work, so he put the children in touch with a social caregiver, who ensured that they received two balanced meals a day and took the correct medication. He went back home to Soweto in 2014 and witnessed the fruit of his caring actions: one of the girls was still living on the same street and experienced an abundance of happiness and health in her life. Tshepiso helps positive community members gain A HEALTHY MINDSET “The whole point of peer education is that it can change people’s lives, whether it is the life of a colleague or that of a community member,” he says resolutely. Where he currently lives in Daveyton on the East Rand of Johannesburg, Tshepiso is still dedicated to helping HIV-positive people thrive. He regularly attends a local clinic, which only serves HIV-positive people, to learn more about issues such as nutrition, a healthy CD4 count and social acceptance. He eagerly shares this knowledge with his colleagues and community members wherever he goes — even a taxi ride often proves to be the opportune moment to reach out to people who behave irresponsibly or who have negative thoughts. “When you know your status, you typically think that people are laughing at you and judging you. This is the reason why counselling is given after testing – a person’s feelings of rejection could even lead to suicide,” reveals Tshepiso. He explains wisely that the objective is to take distressed HIV-positive people out of an emotionally isolated place and get them to consider their options, without thinking too much about what people are saying. “We tell people not to stress about others who might be ridiculing them, and only to focus on their status; there are many other people who still love them.” Tshepiso reveals that ultimately, the HIV/AIDS Peer education helps the infected person to gain the right mindset: “It is not the end of the road, but a beginning. Because your body has changed, you can start living positively.” “It is not the end of the road, but a beginning. Because your body has changed, you can start living positively.” Peer educator Tshepiso Moila knows from experience that peer education can change the lives of employees and community members for the better.
  • 17. RESPECT FOR HUMAN RIGHTS Workplace diversity, equal opportunity and respect for others are the fundamentals of the motivating climate we strive to attain. These principles help to create an environment in which people can participate and contribute to the best of their abilities. We have set targets for gender balance and employment equity and will measure our progress towards our goal against these indicators. MANAGEMENT EMPLOYMENT EQUITY 2012 2013 2014 GENDER EMPLOYMENT EQUITY 2012 2013 2014
  • 18. 16 RESPECT FOR HUMAN RIGHTS T errence Hlongwane’s brave journey to leading site agent at Fraser Alexander Construction has brought equality home to a poor family in Giyani village, Limpopo. The fifth child in a big family of thirteen headed by illiterate parents, Terrence dreamt big dreams behind his school desk, intending to follow a professional career and live a prosperous life. While his father worked away from home to put his 13 children through school, Terrence diligently worked at his academic school subjects and devoted his free time to herding the family’s goats and cattle. In his final school year, Terrence successfully applied to TAFSA for a loan to study civil engineering at the former Northern Gauteng Technikon in Pretoria (now Tshwane University of Technology). He enrolled for a national diploma, but his loan covered only his class fees, so he lived off-campus with a family member and travelled to school by taxi every day. Back home, his retired father sold beverages from a small fridge and his mother peddled vegetables in a wheelbarrow, from village to village, in order to raise money for his food and transport costs. “It was a challenging period for me and my family,” says Terrence. “I often had to stay late on campus to participate in practical course assignments and my parents had to cover many unforeseen expenses.” However, both Terrence and his parents persevered throughout his study years so that he could become the first graduate in the family, in 1999. His parents were elated. Terrence immediately went on to clinch his first job as technician with Bafokeng Civil Works in Rustenburg, which only enhanced their joy. “We come from a challenging background – both my parents are still illiterate today,” explains Terrence. “Seeing one of their kids ‘making it’ like that was a very big milestone for them.” Terrence had the good fortune of working on large concrete structures such as reservoirs, bridges, bulk water supply systems and roads during his employment with Bafokeng Civil Works. He credits the company with providing good training and mentorship. This role also led to his employment with Fraser Alexander as our Construction division recruited some of the company’s skilled workers when it closed down. Fraser Alexander’s operations director Ian Seddon says he initially set out to employ only concrete hands, shutter hands and steel fixers but, when these staff members revealed how supportive Terrence was of them, he summarily interviewed Terrence for a job, too. “I help the team where help is needed and I am always part of the team that does the work,” Terrence says of his approach to management on site. On joining Fraser Alexander as a technician in 2002, Terrence recognised that the company offered good career opportunities: building tailings deposition dams and drains involves the construction of roads, pipelines, dams, earthworks and other concrete structures ‘all-in-one’. “It was clear that the company offered good opportunities. I only had to ‘grab the Fraser philosophy and way with both hands’ [to be successful in the company],” he says passionately. Terrence’s strong resolve paid off when he was promoted to junior site agent after a year with the company. He started running small sites such as Rasimone and Optimum with the support of our site managers and was again promoted within a year – Terrence became the first black site manager within our Construction division in 2005. The personable man has since gone from strength to strength: his tenacious work on the challenging DMO water management project and seamless delivery of the massive Lions tailings and slag dam project are but two of many career milestones accomplished with Fraser Alexander. “I am confident that I can tackle any project that comes my way,” says Terrence. Terrence is evidently making the most of his talents and life chances, despite the fact that he hails from an isolated area and belongs to a historically disadvantaged group. In doing so, he has become a good role model for the children of Giyani – Terrence is often invited to give inspirational talks at his former village school and happily obliges, showing the children they “can become something, even if they are poor and come from such an extremely rural place”. From rural village to ROLE MODEL Site manager Terrence Hlongwane is living proof that Fraser Alexander provides equal opportunities to our staff to advance in the organisation — regardless of their backgrounds.
  • 19. RESPECT FOR HUMAN RIGHTS 17 “We come from a challenging background – both my parents are still illiterate today. Seeing one of their kids ‘making it’ like that was a very big milestone for them.”
  • 20. 18 RESPECT FOR HUMAN RIGHTS T he well-composed and dynamic manager has gained the vision and confidence to undertake innovation projects across our Group, since she has been highly successful in rolling out innovative process- improvement projects on the Leeuwpan site. Under Jeanette’s leadership, the Leeuwpan team not only clinched the Minerals Processing division’s Innovator of the Year Award in 2013, but also a quarterly innovation award for process improvement in 2014. “I have grown a lot over the past few years,” says Jeanette. “I have found my niche in the project management of innovation. I have proved myself as a person who supports new ideas.” Jeanette was appointed as site manager within our Minerals Processing division after she joined our company as site manager-in-training in 2009. After fulfilling this function at the Smokey Hills platinum plant, she went on to work as a metallurgist on a platinum plant in Burgersfort under the mentorship of Phildré Lotter, operations and project manager with Minerals Processing. In this role, she felt that she needed to prove herself, so she offered to take on the responsibilities of production foreman, in addition to her normal duties, while the plant was being commissioned. “The production foreman needs to see that targets are met, work is done safely and costs are controlled. If you succeed in doing this, you essentially prove that you are a competent manager,” explains Jeanette. Jeanette sets the bar in MINERALS PROCESSING The experience Jeanette Malele has gained as site manager of the Leeuwpan coal-processing plant over the past three and a half years has prepared her for even greater responsibility. Jeanette’s performance at Burgersfort led to her acting as site manager at the Impala Rustenburg site in the site manager’s absence. Her good performance led to her appointment as the Minerals Processing division’s first female site manager in 2012. In her neat, well-organised office on the Leeuwpan site, she cuts a striking, authoritative figure. “Because of the great opportunities I have been given within the company, I give the team members who show potential good opportunities to grow and develop too,” says Jeanette. “One plant assistant here was always working, always checking that the plant was running smoothly. So I gave him the opportunity to act as supervisor and eventually promoted him to this position.” “Kobus (Smuts), the engineering foreman, was an electrician when I became site manager here. Now he is the best engineering foreman there is. Thabang Lehlehla, who was a plant operator, is now the assistant site manager at Douglas — and he is the best,” Jeanette continues. She reveals that she has developed her team into a high-flying one by showing her appreciation for what they do and leading by example. Our Leeuwpan team has made history by reaching a production record of 88 108t per month, compared to an average of 70 000t of coal treated when the plant was commissioned in 2009. The team also frequently achieves the highest score in internal and external safety and housekeeping audits among all the contractors on site, leading the mine manager to instruct other plant managers to use Jeanette’s operation as a blueprint. The site manager proudly attributes her team’s performance to good communication on site. She adds lightly that women are good communicators: “I often talk to the employees about safety. If we don’t communicate, the same incident may occur again. Staff members need to be made aware of hazards.” Her open and approachable leadership style is confirmed by supervisor Sibusiso Matshalinga, who says, “Jeanette talks to us and makes us laugh. When we do something good she appreciates us. That’s what motivates us to go on — a sms from her thanking us for the good work.” The remarkable Jeanette is the most senior female site manager in our Minerals Processing division and a pioneer of sorts for women in the division. She is also very supportive of Dikeledi Leboge, our woman site manager at Mashala coal site and Thabelo Ramateletse, the operations support specialist (assistant site manager) at Welgemeend, in the sense that she offers them advice on maintenance systems and assists them with the selection of training modules. “I would like to see our woman managers setting the bar in minerals processing,” she says enthusiastically. But Jeanette acknowledges that their achievements are only possible through the support of the entire Minerals Processing team: “Fraser Alexander Minerals Processing (FAMP) support us more than 100%. From the maintenance to engineering staff, they are simply the best. They make it possible to grow and develop within FAMP — it is simply up to us to use our chances.” “Because of the great opportunities I have been given within the company, I give the team members who show potential good opportunities to grow and develop too.”
  • 21. RESPECT FOR HUMAN RIGHTS 19 T habelo Ramateletse is one of the driven, competent women in our Mineral Processing division who adds to the gender diversity in our management ranks. She was appointed operations support specialist at our Welgemeend site in Mpumlanaga in 2015, after our company gave her the opportunity to earn the necessary advanced coal prep qualification for this role. The appointment represented breakthrough for Thabelo who had aspired to fulfill a site management role for a previous employer, but was turned down on the basis of allegedly not having the physical strength to manage a plant. She fulfilled the role of plant training officer for her previous employer and had experience of working as production foreman. When her dreams of managing the plant were squashed, she did not give up, but enrolled herself for a basic coal prep course with her annual bonus in 2011, to widen her career prospects. Thabelo subsequently joined Fraser Alexander’s Minerals Processing division in a training role and pursued her career dream when an assistant site manager role was advertised within the division in 2013. She was initially unsuccessful because she lacked the necessary coal beneficiary experience, but she took heart in the fact that the company noticed her management potential and offered her the chance to qualify for the role. “It was a bit of a setback when my application wasn’t successful at first. But I did not lose hope as the company noticed that I was interested in a management role and that I had management skills,” says the vibrant operations support specialist. She relays enthusiastically that she learnt and grew a great deal in the advanced coal prep course. The course includes a practical element, which saw her tackling a project to optimise the use and handling of oversize material at our Douglas coal processing plant. “This optimisation project was very demanding,” says Thabelo. “I had to produce a presentation, findings and conclusion, but I was able to do this with the full support of my mentor, Phildré Lotter, and operations director Jaco Scholtz. “The project ultimately taught me to consider our coal processing plants from a management perspective.” Also a wife and a mother, Thabelo reveals that she was able to balance her studies and family life with the support of her husband and by managing her time well. On site at Welgemeend, she has overcome any possible bias towards woman managers by treating staff members with respect. She affirms that she receives the same respect she shows our team and that they follow her instructions without question. What is more, is that her promotion is serving as encouragement to other women in our organisation whom have noticed her advancement on the production side of the business. “A number of women in our organisation have approached me and asked whether they will be selected for learnerships. Women in the roles of plant attendant, senior buyer and electrical aids have their hearts set on growing and becoming managers.” Thabelo feels optimistic about the prospects of these and other women in the organisation: “What I have experienced is that the company notices when you work hard; it identifies and develops your potential.” Thabelo’s chance TO LEAD “What I have experienced is that the company notices when you work hard; it identifies and develops your potential.”
  • 22. 20 RESPECT FOR HUMAN RIGHTS S he has realised the Vanggatfontein site’s annual profit target and has led her team to clinch an additional contract for re-mining at the operation by engaging with staff and showing them respect. “The only way to manage an operation successfully is to consult the operators who are doing the actual work in the field,” says Ofentse. “I give everyone a chance to speak their minds and they know they are always welcome to come and talk to me in my office.” Her approach of involving staff and treating them respectfully is appreciated by her staff who say that Ofentse interacts with and treats all staff members equally. “Our site manager is very professional and addresses issues in a straightforward manner,” says site clerk Precious Mahlangu. Risk Officer Jennifer Ndhlovu says that Ofentse takes an interest in all of her work relating to the safety of loading and hauling activities. “I don’t have to do anything by myself, Ofentse is part of all the safety decisions,” she explains. “When I compile an operational safety procedure, she lends her operational perspective to the process so that we obtain a balanced picture of what is required for the procedure.” Ofentse was appointed site manager in May 2014 after giving a first-rate performance as senior supervisor on our Bulk Mech division’s Sasol site where Fraser Alexander was responsible for handling coal discard. One of the events at Sasol that tested her management abilities was an instruction by the client to take over the handling of the run of the mine in an additional section of the plant in less than a week. Ofense tackled this job with only a few machines, but managed to mobilise and motivate her team of operators so well that they moved 700 000t of Ofentse ENGAGES EMPLOYEES in site management materials in six weeks, enabling the mine to keep its factory running seamlessly. Fraser Alexander Bulk Mech was also awarded Service Supplier of the Year 2014. “The experience I gained at Sasol prepared me for the position of site manager. As senior supervisor, the operators reported to me, I had to discipline staff and work with the client,” she says. Ofentse joined the company as an intern on a site in Meyerton through our full-time experiential programme in 2011 and was absorbed permanently by Fraser Alexander Bulk Mech as acting supervisor within a short period. Soon she was fulfilling the full-time role which led to her appointment as production assistant supervising the screens and crushers. After Ofentse excelled in this role, she was appointed as sub agent on the Sasol site in May 2012. Her two years of leadership on this site was characterised by the high standards and professionalism that she learnt from her area manager and resulted in her appointment as site manager, which did her mentor proud. “My mentor was very strict and wanted every task done perfectly. I also learnt to be assertive from him. As a woman manager on site, it is important to lay down the ground rules from the start. “I am used to being in a male-dominated environment, as I studied metallurgical engineering, but not all men are used to taking instructions from a woman, and men who belong to some cultures often need to change their mindsets.” It is clear that Ofentse’s inclusive approach ultimately drives her team to perform: “There are men here on site who have done hard physical work for years and years — you need to respect and recognise them by listening what they have to say. “When they feel heard, the team starts being productive and targets are met.” Ofentse Koffman, woman site manager on the Vanggatfontein site for our Bulk Mech division, is proving that the democratic management style associated with female managers contributes to the company’s bottom line. “My mentor was very strict and wanted every task done perfectly. He encouraged me to work hard by saying that I might become site manager if I did.”
  • 23. ETHICS Unyielding integrity is one of our most important values. The reason for this is that conducting business with integrity enables us to build trust relationships with all our stakeholders. Our group has implemented an ethics hotline to formalise the reporting of unethical and corrupt behaviour and will measure incidences of unethical practices.
  • 24. 22 ETHICS Introducing a CODE OF ETHICS F raser Alexander aspires to maintaining the highest ethical standards in all our business activities and relationships. To support this objective, the company developed a Code of Ethics in 2014 that serves as a guide for ethical behaviour within the company. The code covers the issues of conflict of interest, confidential information, corporate image, gifts and hospitality, bribery and corruption and a duty to report fraud, unethical behaviour, theft and misconduct. It was introduced to staff via our intranet during the reporting period and all new staff members are made aware of the code at induction sessions. Fraser Alexander further encourages compliance with the code at our annual ethics awareness campaign day, held in December each year. At this event, staff members are encouraged to sign a document comprising our Code of Ethics to show that they are committed to these principles. Laminated copies of the document are placed on the noticeboards of operating sites to remind them of their commitment to this high ethical standard. The ethics awareness campaign day also promotes the Group Fraud Hotline instituted in the company in 2010. The hotline is operated by KPMG and allows staff to anonymously report any unethical behaviour via telephone, fax or email. It is part of a broader ‘fraud framework’ within the company that allows staff to report fraud and corruption via internal channels. Every report of alleged misconduct that is made via either the hotline or internal mechanisms is lodged, investigated and acted on before feedback is given to the whistleblower. In 2014, the majority of reports of alleged fraud and unethical behaviour were made via the hotline. A total of 21 calls were logged for alleged incidences of misconduct and all these reports were handled in the stipulated manner. Fraser Alexander continues to work on preventing fraud and corruption by instilling a value-based culture in the company. Our values of Show Care, Have Passion, Earn Trust and Be Brave must ultimately inform all that we do.
  • 25. STAKEHOLDER RELATIONS Our aim is to be a valued member of the communities in which we operate. To this end, we strive to have a positive impact on all our shareholders by contributing to the social and economic development of local communities, developing local enterprises or being a valued business partner to our clients. In order to asses the impact of our partnering initiatives, we measure corporate responsibility spend and undertake satisfaction surveys. CLIENT SATISFACTION 2012 2013 2014 CSI SPEND GROUP 2012 2013 2014
  • 26. 24 STAKEHOLDER RELATIONS Fraser Alexander’s approach to enterprise development, corporate social investment, and the social and economic development of communities is not only driven by legal requirements and risk mitigation, but primarily by the company’s guiding philosophy, which is that we must do what is right. The enterprises we select for development, through intensive coaching, mentoring and financial support, are firstly selected on the basis of the value they add to society. We believe that they must add value to business as well as the community, and we always apply this criteria in selecting organisations to support. In 2014, our support of enterprises was also influenced by the challenges that followed the Marikana tragedy. The debt-counselling company that we supported launched a pilot project in the Royal Bafokeng, Rustenburg to address the financial difficulties that some mine workers find themselves in; and the spaza bike hawker initiative shows the local community that mines operating in the area are investing in small enterprises. This initiative was rolled out under the auspices of the Royal Bafokeng Enterprise Development (RBED). Our approach to enterprise development is to not duplicate existing structures and efforts, but to work with other companies and organisations in order to be impactful. Therefore, in rolling out the mobile spaza initiative, we enrolled the hawker beneficiaries of the project in the National Youth Development Agency’s (NYDA) existing business training course. The pilot solar-power project we rolled out across the villages of Royal Bafokeng contributes to the social and economic development of the area, as the solar-power systems give poor families access to lights and hot water at a significantly reduced cost. The improvement these systems made to the lives of the families that were beneficiaries also boosted their morale — some of the jobless beneficiaries indicated that the solar-power installations have renewed their hope overall. Fraser Alexander uses enterprise development as a business tool, in the sense that some of the enterprises we select for development are turned into company suppliers. One of the enterprises we supported in 2013, for instance, Opinionated Trading Enterprise, provides us with BEE certificates. We also contributed to the Ekurhuleni Business Facilitation Network (EBFN) during the reporting period, which supports entrepreneurs on the East Rand, with a view of tapping into its infrastructure to identity suppliers. In 2014, our social and economic development work included the financial support of cultural organisations, such as the Bafokeng Arts Theatre, a group of artists from the Royal Bafokeng that is dedicated to preserving Tswana dance and culture. A highlight for our enterprise development team in 2014 was the invitation by Anglo American to exhibit our achievements at its annual enterprise-development conference. This honour showed to us by a major mining company serves as recognition that we are distinguishing ourselves in this sector.
  • 27. STAKEHOLDER RELATIONS 25 B efore she became a beneficiary of the innovative Spaza Bike Initiative, Sharron Motepe of Tlapa Village near Marikana, says she lived an almost goal-less life of peddling sweets to the village community. “I have always been interested in running my own business, but I spent my days listlessly selling sweets as I didn’t have the means to realise my vision,” says Sharron. “However, my life has truly changed since Fraser Alexander and the Royal Bafokeng Enterprise Development (RBED) helped me to upgrade my business through its mobile spaza programme.” Sharron’s polished mobile spaza shop is parked in her large, wire-fenced yard, situated next to the wide gravel road running through the village. The bike shelves are filled to the brim with the bunny chow, bread, cheese, polony, atchar, chicken, energy drinks and sweets she is set to serve her regular lunch customers. As she pushes it into the shade of one of the big trees beside the yard, she reveals: “I was so excited when I first received the brand-new spaza bike, along with a large stock of wanted goods, I didn’t know how to say thank you. It was a big business injection as I could sell the stock and replace it with some of the money I made.” As a result of the business training she and the other mobile spaza bike beneficiaries received, Sharron was able to locate good suppliers for her business. She proudly proclaims that she is the only hawker in the area who sells pieces of chicken. In doing so, she delivers a good service to the local community as they no longer have to make the long, expensive trip to Marikana Power Trade to buy their meat. A group of young people on their way home from a training course with the local Department of Social Development arrives. They gather around the spaza bike, buy chicken, polony, bread, fresh atchar and soft drinks, and sit down on the grass under the trees to enjoy their lunch. “Sharron’s spaza shop has been very helpful since we started our course in January,” says Lerato Mosisi (34). “The shop is too far from here and her prices are good.” Lerato adds that unemployment is rife in the area and that some members of the community feel that the mines operating here can do more to help the jobless. “This initiative is making a start,” she adds on a more positive note. Sharron counts the day’s earnings and puts it away safely in her purse. “My life has changed since I started trading with the spaza bike,” she says. “Previously, we ‘ate’ all the profits I made from selling the sweets. I now have savings, and it grows by R50 to R100 every week.” She is able to offer this positive report only because the business training the hawkers received taught them the importance of saving their business profits. Sharron’s upgraded business has helped her set further goals: She says she wants to further expand her ‘tuck shop’ by introducing more products, such as maize meal and sugar, to her goods in the near future. “I think I am going somewhere with my little business,” she says optimistically. “In fact, I promise you that when you visit me here again next year, you will find my mobile spaza parked outside my big shop — only to be used for deliveries.” MOBILE SPAZA inspires business vision The mobile spaza initiative has filled Sharron Motepe with optimism that she will become a fully-fledged business woman serving Tlapa Village.
  • 28. 26 STAKEHOLDER RELATIONS “Since I received the spaza bike, my life has become a lot easier, I am not short of anything and my business is coming ‘all right’.
  • 29. STAKEHOLDER RELATIONS 27 with tourists whose shiny cars are brought to a halt by the four-way stop sign. Next to Papiki, another hawker shows off a nifty 4x4 vehicle crafted from wood. A third sits under the shade of a canopy erected on the paved sidewalk and guards his ingenious galvanized- wire egg beaters that go for a steal, at only R100 each. Across the road, a herd of cattle charges through an open field. One of the traders at the intersection turns out to be Papiki’s young uncle, Godwin Morobe (36), who is full of appreciation for T he intersection between the R510 and R556 in North West is a lively, informal entrepreneurial hub where spirited hawkers from the surrounding villages sell bags of fresh oranges, soft drinks, wooden crafts and inventive galvanized-wire goods to motorists travelling to and from Sun City, as well as miners on the road between Rustenburg and the area’s platinum operations. One of the hopeful hawkers who pulls out all the stops to sell their goods throughout the day, is 24-year-old Papiki Morobe from Tsitsing village, one of the select beneficiaries of the spaza bike initiative. Papiki reveals that business has improved greatly since he received the spaza bike with a generously stocked cooler from Fraser Alexander. It has enabled him to start selling expensive energy drinks, such as Play, Monster and Red Bull, which are popular with all his customers. “Since I received the spaza bike, my life has become a lot easier,” says Papiki. “I am not short of anything and my business is coming ‘all right’. I take the money to the bank and buy products that I don’t have. I bank about R150 every week.” He explains that business is not the same every day, but that he always has money in his pocket nowadays, which makes him happy. Today, he carries R380 on his person, which he will use to buy flour, porridge and all the other groceries he needs when he cycles to Rustenburg on his spaza bike later. A large, heavy truck pulls off onto the shoulder of the road and its driver signals that he wants nuts. Papiki grabs a bag from his spaza bike and energetically runs across the road to swiftly conclude the transaction through the driver’s window. He immediately returns to the side of the R510, and continues to cheerfully haggle One of the hawkers who has received a mobile spaza from Fraser Alexander tells how the gift has enthused him to grow his trade and save money. the change ‘Papiki’s mobile tuck shop’ has brought to his nephew’s life. “He cycles from home and parks here for the day, as this is a busy road. There is a lot of business here. It is keeping him busy, making him a good person — not one that steals or drinks beers. He is here from Monday to Monday,” enthuses Godwin. Has the mobile spaza initiative made a positive impact to Papiki as well as his family? “More than the words you are saying,” is Godwin’s heartfelt reply. MOBILE SPAZA makes life easy for Papiki
  • 30. 28 STAKEHOLDER RELATIONS T he project, undertaken in conjunction with the Royal Bafokeng Enterprise Development (RBED) and technology supplier Fortune CP, supplied about 51 disadvantaged homes in semi-rural areas with solar-power systems. The result is that households that never had geysers before now have hot water and lights, and save a significant amount in monthly electricity costs. Fraser Alexander and the RBED conceptualised and initiated the project Pilot solar project BRINGS OPTIMISM to Bafokeng villages before selecting a small local enterprise, DD Installations, to implement it. Our choice fell on DD Installations as owner Martin Motuku not only has installation work and film-production experience, but also has a keen interest in environmental matters. Motuku was given the opportunity to complete SETA- accredited training in hot-water cleaning at Clean Heat before he launched the project with the support of Fraser Alexander and the RBED. On completion of the pilot phase, Martin reported that he found the joint planning phase of the project very useful as he learnt a great deal more about this aspect of project management. The implementation phase also offered a steep learning curve. Martin learnt that one has to make provision for unforeseen expenses, and work beyond the planned scope of work, when one works in a disadvantaged area: “we were working in 29 villages all over the Bafokeng region. Because the homes were disadvantaged, we sometimes had to buy more material and sometimes had to wire the whole house, which was outside the scope of work. And the plumbing work as well… we had to do more than we bargained for,” he revealed in our 2014 enterprise development publication, Hope Inspires Dreams. Martin trained and employed young people from the area to assist him with the installation of the solar-power systems, which were specifically designed for the village homes by Fortune CP. The systems cost about R20 000 each, and have the capacity to power a geyser, One of the most remarkable enterprise-development projects Fraser Alexander carried out in 2014 was the far-reaching pilot solar-power project we rolled out across 29 villages in the Royal Bafokeng, Rustenburg. Sinah, who lives with her three children and their grandmother in a large brick house down the road from the Royal Bafokeng administration, explained excitedly: “The problem before was that we had no lights… now I even have a charged cellphone, television, radio and hot water. Every day there is light in my house, and we wash with warm water!” lights, television and other small household appliances in a village home. “We installed a solar panel and water geyser on the roof and an inverter, controller and plugs in the house,” said Martin, who admitted that the greatest challenge he faced during the implementation phase of the solar project was to master all the technical aspects of the job and motivate some of the young people on his team. However, the most rewarding aspect of the project for him was bringing solar power to poor people who had never had geysers in their homes before, and were not aware that radiation from the sun could be turned into energy. In addition, the pilot project has empowered Martin and his company to supply solar power on a commercial basis, should the opportunity arise. “I had never done any construction work before, but this puts me right there in terms of powering buildings and households. I never thought that I would do plumbing in my life, and now I’m a plumber,” Martin reflected with a smile. The impact of the pilot solar project can also be measured in terms of the significant saving in electricity costs and improvement in quality of living it brings about for its beneficiaries. One beneficiary, 40-year-old mother Sinah Kwinda, reported that the system she received relieves the financial pressure on the household by reducing her monthly electricity expenses from R350 to R100.
  • 31. STAKEHOLDER RELATIONS 29 Every day there is light in my house, and we wash with warm water!”
  • 32. 30 STAKEHOLDER RELATIONS 2014 Budget Spend Allocation SED Amount ED (Enterprise Development) Amount Bafokeng Arts Theatre Grahamstown R40 000.00 Terisano Ventures (Solar Panels) R267 083.00 JSA Softball R5 500.00 Tshedime Trading & Projects (Mobile Spaza) R262 076.00 Keaton Mining (T-shirts) R22 800.00 Thabang Logistics (Mango Pickles Manufacturing) R541 076.00 Thaba Legae Guest Lodge R15 333.00 Ingwapele Technology (Pilot of SMME’s) R95 000.00 Ya Hina Management Consulting R87 500.00 Opinionated (RBH BEE Scorecard) R110 000.00 Kuruman Soccer Team (Michael Loses) R19 475.00 Tricor Signs R17 400.00 Mocha Mana’s Catering (Mandela Day) R5 000.00 Makoya Spice ‘n Mor R148 850.00 Mmapheto Food Delights R36 500.00 Vuka Lova Organic Farming R147 400.00 The Shine Trust (Argus 2015 entries) R11 410.00 Creative Space - ED Conference R32 977.00 Royal Bafokeng Administration Suite Rental (Soccer) R11 700.00 Mecure Inn - ED Conference Accommodation R6 647.00 City Living Boutique R735.00 Mmamothofela Solutions R38 877.40 Lead Young R20 000.00 Malapalama Park R103 000.00 Grocoat R47 767.00 Tswelopele Partnership (Antaletse) R41 000.00 Letsama La Kotulo R49 541.00 Patio Warehouse R31 801.00 TOTAL R373 261.00 TOTAL R1 843 187.40 Corporate Social Responsibility Spend Total budget allocated: R2 350 000.00 Total SED: R373 261.00 Total ED: R1 843 187.40 Total (SED & ED): R2 216 448.40 Available: R133 551.60 Total Spend: R2 350 000.00
  • 33. RESPONSIBLE STEWARDSHIP We aim to systematically manage and reduce our environmental footprint through reducing resource consumption, waste production and our carbon footprint. DIRECT EMISSIONS 2012 2013 2014 INDIRECT EMISSIONS 2012 2013 2014 OTHER INDIRECT 2012 2013 2014
  • 34. 32 RESPONSIBLE STEWARDSHIP O ur Construction division reached the milestone of obtaining 14 001 certification for its environmental-management system in 2014, after embarking on a rigorous process of designing and implementing an environmental-management system for the division over two years. The certification signifies that the division not only complies with environmental legislation, but also meets the highest environmental standards prescribed by the ISO 14 001 benchmark. In layman’s terms, it signifies that we have systems in place that help us to consider the environment in all our activities. We first embarked on the road to certification in 2012, when our management made a firm commitment to formalise our construction division’s environmental- management system. A management policy with environmental targets and objectives was put in place, and a legal register with legal requirements was drawn up before operational procedures were established. The operational procedures stipulate exactly how the range of our construction activities should be carried out legally - for example, the disposal of waste. In the implementation phase that followed, each staff member’s responsibilities were defined, and awareness and competency training was conducted in collaboration with Potchefstroom University. Internal communications played an important role in implementing the system; staff was further informed about working in an environmentally friendly way during toolbox talks. Achieving ISO 14 001 CERTIFICATION The system includes proper control of documents, which stipulate operational controls such as managing waste and water, and covers the monitoring and measuring of environmental performance against the standards contained in the system. It also prescribes an annual management review, which scrutinises the functioning of the system and makes recommendations with regards to addressing any weaknesses. This follows internal audits that are conducted every second month to establish trends in our environmental performance. For Fraser Alexander, the achievement in obtaining ISO certification lies in the fact that the ISO standard is merely a guideline and that we tailor-made it to suit the nature of our business. Since the system is still in its infancy, Fraser Alexander Construction concentrated on measuring staff members’ understanding of the system, and their role in implementing it in 2014.
  • 35. TRANSFORMATION OWNERSHIP 2012 2013 2014 MANAGEMENT CONTROL 2012 2013 2014 EMPLOYMENT EQUITY 2012 2013 2014 SKILLS DEVELOPMENT 2012 2013 2014 PREFERENTIAL PROCUREMENT 2012 2013 2014 ENTERPRISE DEVELOPMENT 2012 2013 2014 SOCIO-ECONOMIC DEVELOPMENT 2012 2013 2014
  • 36. 34 TRANSFORMATION For Fraser Alexander, transformation is both a philosophical tenet and a practical imperative that drives the company’s business strategy and culture. It helps us to foster environmental sustainability, social justice and cultural change while we pursue our economic and business objectives. Our commitment to transformation in the context of the South African socio-economic and socio-political environment is fraught with challenges due to our legacy of exclusion. In responding to these challenges, Fraser Alexander has resolved to embrace and realise the broad transformation agenda enshrined in Chapter 2 of the Constitution (the Bill of Rights), as well as the transformation goals behind the B-BBEE Act. Fraser Alexander’s B-BBEE performance has improved steadily since the advent of the B-BBEE Codes. This is largely due to our ability to collaborate and partner with relevant players and stakeholders, and a sincere effort by the company to bring our culture, values, vision and business strategy in alignment with each other. Transformation REPORT
  • 37. TRANSFORMATION 35 Ownership The fact that Fraser Alexander is wholly owned by the Royal Bafokeng Nation places an even larger onus on the company to score well in the ownership element of the B-BBEE codes. The company has consistently scored full points in the three years running to 2014. There was a slight dip in the points earned for this element in 2013, but we recovered the points by making a ‘substance over form’ submission in the New Entrants criteria, based on the ever- growing Bafokeng population. Management Control The race and gender composition of the company’s board and top management structure improved significantly from a low score to 4.33 points in 2010, then rose slightly to 5.88 in 2011, before soaring to the full 10 points − following the reconstitution of the board and the appointment of two black female executives. The score slid back to 6.51 points in 2014, but Fraser Alexander continues to strive to achieve a representative top management structure, including both executive and non-executive members. Employment Equity Our employment-equity rating has declined from 5.38 in 2013 to 3.69 in 2014, as a result of staff turnover and new staff appointments. Fraser Alexander therefore still faces the challenge of transforming the demographic profile of our workforce to reflect that of South Africa’s economically active population. The company is constantly monitoring its employment equity compliance and is implementing measures such as organisational culture assessments, targeted recruitment and accelerated training and development, to establish a pool of employment-equity employees ready to assume middle- and senior- management roles. We deliberately avoid tokenism by ensuring that new recruits and staff who are promoted are suitably qualified for their positions. Skills Development Fraser Alexander continues to invest resources in the training and development of staff. This is part of our business imperative to supply the company with well-trained, productive employees, including highly-trained and skilled employees from previously disadvantaged backgrounds. Because we operate with a nearly unique technical skills set, we conduct most of our training in-house, with the help of highly experienced internal resources who act as coaches and mentors. Further, Fraser Alexander continuously increases the number of learnerships in the company, which has improved the company’s score in the skills-development element from 8 in 2013 to 12 in 2014. Preferential Procurement The company has scored slightly lower in this element − largely as a result of lower procurement spend and lower spend on companies with a B-BBEE score of above Level 4. However, we are planning to streamline our vendor application and vetting processes to ensure that suppliers with a scorecard rating of Level 4 or above gain preferential procurement opportunities from Fraser Alexander. Fraser Alexander will also consider a more centralised procurement approach targeting Qualifying Small Enterprises (QSEs) and Exempt Micro Enterprises (EMEs). Preferential procurement has become a key element of the new Codes, as it requires that companies commit to procuring from black-owned small enterprises. Enterprise Development Both our annual enterprise-development publications, Trading in Hope and Hope Inspires Dreams, showcase the initiatives that Fraser Alexander undertook in 2013 and 2014. In conjunction with the scorecard, these publications indicate that Fraser Alexander is performing extremely well in this element as our achievements often invite accolades from stakeholders. Our company has further succeeded in driving and supporting local SMMEs through our community-development office in Rustenburg. Socio-Economic Development As a company that is owned by a community, the Royal Bafokeng Nation, Fraser Alexander is acutely sensitive and attuned to community issues. We constantly interact with communities and work closely with other local organisations to uplift them. Whether we make donations in cash or kind, or initiate projects, such as feeding schemes or teacher training in Maths or Science, Fraser Alexander has consistently scored full points in this element and is proud of this fact. Fraser Alexander’s performance in each of the elements of the 2014 scorecard is reflected below: 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
  • 38. Design and layout: Canned Creative • Primary photographer: Ryan Roux • Secondary photographer: Mary-Ann Palmer Produced by Different Angles
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  • 40. Tel: +27 11 929 3600 • Telefax: +27 11 397 4607 • Email: fainfo@fraseralexander.co.za 1 Marlin Road, Jet Park, Boksburg, South Africa