PROFILE

t was in 2010 that Palabora Mining Company (PMC) founded Palabora Copper, a

new fi rm of which 26%wasgiven

to !oca!communities,employees and blackentrepreneurs. How­

ever,the company'sBEE game pian goes

much furtherthan just 'ownership'.

'Pa labora Copper has prioritised skills training and development for our staff membersthrough the so-called Wo rkplace Skills Pian,'says Keith Mathole, genera! manager ofthe Palabora Copper corporate affairsdepartment. 'We focuson the training in, a nd development of, priority skillsthat

are in high de mandwithin the mi ni ngindus­

try. These include engineering, rockdrilling, and artisan tra in ing.'

Mathole notesthat this is good fo rthe

company and itspe rsonnel, as well asthe community. 'We operate in Phalaborwa, a remote area ofLimpopo, faraway from

the usual businesshubssuc hasCapeTown and Gauteng. In this part ofthe world, unemploymentish igh and the skills gap

ve ry large.'

Asma ll m in ing town inMo pani District, halfway up alo ng the Kruger National Park'sweste rn border, Phalaborwa

- and itssurro unds- are severely affected by rampant poverty andjoblessness. Census

20llshows thatLimpopo hasthe lowest

average a nnua!ho usehold in co me of th e whole of SA (R57 000 peryear), compa red to Rl56 000 in Gaute ng. At 38.9%, Limpopo province hasthe highest unemployme nt rate nationwide.

Besidessti mu lati ng black own ership

a nd boostin gskills developme nt trai ni ng, Pa labo ra Coppers' empowerme nt approach is, to a large exte nt, drive n by preferential procu reme nt. 'We have a prefe rential procu reme nt policy i n piace th at hasthe

o bjective of ensuring compliance and proper

governanee on the company's part, as well as on that of our suppliers and partne rs,' says Mathole.

'We basically try to e ncourage our larger suppl iersto partner up and create joi nt ventureswith smaller, !oca!e ntities fro m the area. Thise nables the transfer of core skills to !oca!businesses. This empowers them and allows the m to grow.'

'Because we have bee n operating in

Ph alaborwa for such a long ti me-si nce

1956 -we know the !oca!companiesin the area,what they do, and what thei r strengths a re,' he says. 'Th is puts us i n a position

to li nk these smaller entitiesto busi ness

oppo rtunities and give them access to the mi ni ng supply chai n.'

T he ultimate goal would be for these smal ler compan iesto start c reating employment o ppo rtu nities. In a region where more than 35% of the workforce a re une mployed, job creation is crucial.

'So fa r,some 600 jobs including 200 indirect work opportun ities have bee n

c reated due to our and o ursta keholders'

eff orts,'says Mathole. 'This might not seem many, b utone has to remember that every person who h asfound wo rk issuppo rting a nu mber of dependents who are benef iting too.'

13ecause we have been operating in Phalaborwa since 195 we know the local companies in the areawhat they doand what their strengths are

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PROFILE

Palabora Coppers CSR initiatives touch the lives of5 000 to 8 000 people

Census 2011shows that the average household in Mopani District comprises
3.6 individuals, so the 600 extrajobs that Palabora Copper has helped create are touchingthe lives of nearly 2 200 people.
Mathole stresses that the concept of
BEE is very important to Palabora Copper.
'It is vit al, both from a humanitarian and a business point ofview,'he says. 'The humanitarian aspect revolves around redressing the impact and aftermath of the inhumane apartheid system while providing the majority of South Africans with proper education, skills andjobs. Itis imperative for our business to focus on BEE, because
by doing so we choose to manage the risks
p osed by p overty and unemployment while meeting our customers' demand.'
Economie empowerment objectives aside, Palabora Copper has given way to an elaborate and ambitious Corporate Social Responsibility (CSR) programme. 'When it comes to CSR, we have an impressive track record. In 1986, PMC established the
Palabora Foundation, which has focus ed on
four spheres since: education, community health, skills and community development, and economie development,'says Mathole.
'Our education strategy is divided into
early childhood, primary and high school,' he says, notingthat Palabora Copper's educational support to various primary
and high schools in the area has paid off.
'When you look at the matric p ass rates obtained at the schools we support, you will see that 95% ofmatriculants pass their final exams. Apart from that, 99% ofthese youngsters leave high school with
university-entrance grades. Our schools are
outperformingmany others in Limpopo as well as in other provinces. In other words, our educational achievements are not just about quantity, but also about quality.'
These are significant achievements
- Limpopo has the highest proportions of people aged 20 years and older with no schooling (17.3% in the 2011census).

'We are notjust focusing on helping children

and youngsters toimprove their academic achievements,'says Mathole. 'We are sup­ porting theirteachers too, for instance, in helping them better their skills in thefields ofmaths and science.'
Community health is another important focus of Palabora Copper's CSRprogramme. While the company's health policies used
to focus mainly on H IV prevention and
awareness, there have been changes over time. 'Today, we offer comprehensive health s ervic es to our staff and community members which are not just aimed at H IV,' s ays Mathole. 'Our third pillar, skills
development, has the objective ofteaching communitymembers skills that c an help them make a living. We currently focus predominantly on bricklaying, carpentry,
s owing, and food preparation!
Palabora Copper's CSRinitiatives
touch thelives of5 OOOto 8000 people, says Mathole. CSRis of great import ance to his employer. 'We see the suec ess of our business intertwined with the success of our commu­ nity.A developed community goes hand in hand with a vibrant environment in which people are skilled and have resources.
This provides us as a company with a viable
and buoyant business environment. Our immediate community is an important part ofwhowe are as a company. Thismeans we can't stand idle when it comes to extending

our goodwill to the community! m

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