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130 January 2014 |
JAMES CAMPBELL, CEO
JANUARY 2014
CREATING AND MANAGING A SOCIAL LICENSE TO
OPERATE A MINING COMPANY IN SOUTH AFRICA:
PERSPECTIVES FROM ROCKWELL DIAMONDS
230 January 2014 |
THE SOCIAL LICENSE TO OPERATE
“The aims of this group (De Beers) have been - and will remain - to earn profits, but to
earn them in such a way as to make a real and permanent contribution to the well-
being of the people and to the development of Southern Africa.”
Ernest Oppenheimer
“ A good head and good heart are always a formidable combination. But when you
add to that a literate tongue or pen , then you have something very special.”
Nelson Mandela
330 January 2014 |
THE SOCIAL LICENSE TO OPERATE
“To gain the social license to operate a mining company in South Africa, one needs to
go beyond what is required by law. Rockwell Diamonds’ has gone a long way down
this road by creating a culture which embraces transformation, not only in its
operations, but also as it relates to its people and all other stakeholders. ”
“Making a meaningful contribution to transformation in South Africa
requires a disciplined and long term approach. This cannot be
addressed through quick fixes and tokenism, but rather needs to be
measured and balanced.”
Mark Bristow, Chairman
430 January 2014 |
INTRODUCTION:
EARNING THE SOCIAL LICENSE TO OPERATE
Rockwell’s objective: Create a growth-oriented mid-tier diamond mining and
development company
♦ Delivering positive shareholder returns without harming stakeholders
♦ Symbiosis with environment, communities and regulators
♦ Importance of job creation and wellbeing of local communities
Holistic approach to sustainability
♦ Commitment to all stakeholders, including employees and people affected by operations
Despite historic and financial challenges, Rockwell did not compromise on its triple
bottom line commitments
♦ Never lost sight that people are at the core of the business
Having the right policies in place is not enough: Entrenching practices into daily
operations is imperative
530 January 2014 |
GOVERNMENT STANCE:
ENVIRONMENTAL, SAFETY AND SOCIAL ISSUES IN MINING
Critical high level requirements from an MPRDA & MHSA perspective?
♦ SA’s Minerals & Petroleum Resources Development Act (MPRDA) outlines requirements for black economic empowerment at shareholder,
management and procurement level
Impacts for mining companies
♦ Heightened vigilence required by companies to deal with Mining Charter, royalties, health and safety, environmental laws and the
controversial Expropriation Bill
♦ Prescribes company involvement in social and community development not core business for Mining companies
♦ Royalties (introduced in 2009) led to higher costs: Exacerbated soaring global input prices, volatile commodity markets and turmoil in
financial sector with resulting difficulties in raising capital
♦ Safety under increased scrutiny in SA: Government proposing amendments to Mine Health & Safety Act (MHSA), designed to force
behaviour change
Possible negative industry-wide implications
♦ Ineffective management of a permit system, due to inadequate administration and management, will lead to delays and major concomitant
losses to employers and the country
♦ Potential to negatively affect international competitiveness of South African mining industry due to more red tape and potential for
considerable delays
♦ Regulatory environment regarded with suspicion by offshore investors and affecting investment decisions
♦ Increased scrutiny on safety and higher penalties for non-compliance could impair viabilitiy of small-scale mining companies
SA has a democratically elected ANC government: Active engagement towards social license to operate must be within spirit and
rule of the law
630 January 2014 |
PRIVATE SECTOR REALITY
Strengths
• Significant progress in terms
of safety goals
• Global demand for the
resources produced by SA
mining sector
Weaknesses
• Impact of widespread
corruption
• Lack of meaningful / broad
based BEE
• Lack of risk capital available
for junior miners
Opportunities
• Uniting stakeholders to
improve productivity and
address rising costs
• MPRDA amendments
Threats
• Continued labour unrest
• Rigid labour legislation
• Remuneration differential
INDUSTRY GAP:
Ease of launching new trade unions
vs. capital intensive nature of mining
industry
GOVERNMENT CHALLENGE:
Foster innovation and assist job
creation: adopt Canadian model of
flow through shares?
730 January 2014 |
AN ENABLING CULTURE:
KEY TO BUILDING A SUSTAINABLE LEGACY
Rockwell’s values
ROCKWELL LEARNING: Creating an enabling culture underpins all we do: Provides platform for delivery
Integrating our corporate culture and strategic objectives
♦ Build a successful and profitable diamond mining company
♦ Also making a real contribution to the wellbeing of employees, local communities
and economic development in South Africa
Rockwell’s values guide the behaviors of all employees
♦ Represent Rockwell’s ideal work ethic and culture
Groupwide diversity training initiative rolled out
♦ Develop better understanding of differences among employees to develop better
relationships
Building the Rockwell Family
♦ Quarterly CEO breakfasts: Employees invited to discuss questions and issues
face-to-face
♦ Such as visits by HR personnel to families of employees when injured or
deceased
830 January 2014 |
ROCKWELL VALUES IN ACTION:
AFTER ATTENDING DIVERSITY TRAINING, OUR PEOPLE SAID…
“I learned the importance of not judging
and understand other people’s way of
thinking and personalities. That
everything bad/good works together for
good. That working together despite our
differences -white/black, we can achieve
more on our personal/work place. Always
keep an open mind, talk less and listen
more. That it does not matter where you
begin but what matters is how you finish.
That we need to materialize our thoughts
and learn as we go from mistakes.”
930 January 2014 |
287 carats Saxendrift Extension November 2013
EARNING OUR SOCIAL LICENSE TO OPERATE:
REVIEW OF ROCKWELL’S SOCIAL, ENVIRONMENTAL AND COMMUNITY INITIATIVES
1030 January 2014 |
MANAGING OUR ENVIRONMENTAL IMPACTS
ROCKWELL LEARNING: Economic benefits of proactive environmental initiatives
Good understanding of top environmental risks and impacts
♦ Geology and Topography, Land capability and land use, Fauna and flora, Soil and water, Air
quality and Noise, Visual impact and Archeological and cultural sites
Measurement through EIA’s with bi-annual performance assessments in terms of MPRDA
Continuous rehabilitation: Concurrent with mining where possible
♦ Re-vegetation of rehabilitated areas: Two to three growth seasons to reach initial
predetermined land use
♦ 155ha of land rehabilitated across Rockwell’s properties in fiscal 2013
♦ Additional benefit: lower financial provision requirements while ensuring legal compliance
Rockwell commitment: Establishing at least two indigenous trees for removal of one protected tree
♦ Protected species: Boscia albitrunca (Shepherd’s tree) grows on many MOR mining blocks
♦ DoAFF approval required for removal while mining blocks of diamond bearing gravels
♦ Rockwell decision to mine around trees >2m rather instead of removal Mining around a Shepherd’s
Tree
1130 January 2014 |
MONITORING OUR SOCIAL IMPACTS:
JOB CREATION
Mines located in regions affected by high unemployment and poverty
♦ Jobs created by Rockwell provide economic stability to employees and their
families
Focus on job creation
♦ >100 new jobs created at new Saxendrift Hill Complex mine
Support of Women in Mining
♦ 13% of total workforce vs 22% senior and 30% middle management
Improving Middle Management employment equity
♦ Attracting young HDSA geologists and metallurgists in plant supervisory roles
♦ Up from four in 2012 to 19 HDSAs in 2013
Focus on job retention
♦ 220 employees relocated to Niewejaarskraal after Klipdam disposal
African
male
51%
African
female
5%
Coloured
male
26%
Coloured
female
4%
Caucasian
male
11%
Caucasian
female
3%
DSA employment
INDUSTRY CHALLENGE: Job creation in poverty nodes + real transformation not tokenism
1230 January 2014 |
ROCKWELL VALUES IN ACTION:
OPPORTUNITIES FOR OUR EMERGING LEADERS TO SHARE THEIR KNOWLEDGE
SAIMM’s Fifth Diamond Conference: March 2013
♦ Rockwell demonstrated leadership in alluvial diamond mining: The only company to deliver three high quality research papers
♦ Presented by three ladies showing real commitment to Women in Mining
INDUSTRY CHALLENGE: Provide opportunities for emerging technical professionals to present their knowledge
Forthcoming attraction: SAIMM’s Young Professionals Conference: March 2014
The role of subsidence in diamond preservation in the karst diamond
deposit of the Tirisano mine
Petronella Mohale
Mine Geologist
The impact of bottom cut-off on diamond mine recovery efficiencies
Carole Ringane
Data Analyst
A study of the variation in the Rooikoppie gravels in the Lower Vaal
area
Mulalo Ndwammbi
Mining Manager
Bulk X-ray sorting technology vs. Conventional diamond processing
plants
Christophe Briers
Junior Engineer
Efficiency testing of Diamond processing plants Malthus Nenzhelele
Metallurgist
Impact of Geological mapping on alluvial diamond deposits Petronella Mohale
Mine Geologist
The use of Geological definition and controls in the development of a
sustainable Mine plan
Gary Dorkin
Mine Geologist
Legal Implications Versus The Social Imperatives to be Considered
Under the Transfer of Employees To NJK – A Unique Rockwell Story
Naledia Kau
HR Officer
Opportunities for our emerging leaders
to share their knowledge
1330 January 2014 |
ROCKWELL VALUES IN ACTION:
RELOCATION OF KLIPDAM WORKFORCE POST DISPOSAL
Opportunistic offer to sell Klipdam accepted in March 2013
♦ Short remaining life of mine and poor financial performance
High level study at Niewejaarskraal
♦ Rapid board approval to reinvest proceeds to build new mine
Innovative approach to retain skills:
♦ 220 employees relocated to Niewejaarskraal: Eight accepted retrenchment
♦ Rockwell retained knowledge and experience
♦ Minimal retrenchment costs incurred
♦ Eliminated need for significant training costs for new workforce
Challenge
♦ Rapid development of new mine by technical team
ROCKWELL LEARNING: Key skills retained and retrenchment costs avoided
New Niewejaarskraal processing plant
1430 January 2014 |
MONITORING OUR SOCIAL IMPACTS:
SKILLS DEVELOPMENT
Dedicated training and development capability
♦ Training and transformation committee oversight with Union
representation
Work skills plan including:
♦ Learnerships: Eight employees (boilermaking, fitting, electrical and
mechanical)
♦ Accredited internal training programmes aligned with NQF
♦ Statutory ABET programmes
♦ Young Professionals Mentorship and CEO Development
programmes
♦ Specific focus on Women in Mining
HCVW
Training
Budget
36%
Mentorship
plan
1%ABET
Training
Centre
11%
Portable
skills:
welding,
bricklaying,
driver's
license
5%
Internal
Learnerships
42%
Other
Technical
Support
Programmes
2%
Women in
Mining
3%
Current training budget allocation
INDUSTRY CHALLENGE: Focus on training and providing career progression
1530 January 2014 |
MONITORING OUR SOCIAL IMPACTS:
WOMEN IN MINING
Objective to increase particiation of Women in Mining: Current 6% with 5yr target of 10%
Demonstrate range of jobs available in non-traditional disciplines: Environmental science,
Social science and Occupational Health and Safety
Establish comprehensive tertiary based program to promote vacation opportunities in the
sector and establish a cooperative arrangement for extended work experience
Provide a gender-inclusive work environment: Professional and operational roles
Provide structured mentoring and training
Collaborate MQA and DMR
INDUSTRY CHALLENGE: Women in Mining to bolster specialist technical skills
Supporting Women in Mining
1630 January 2014 |
MONITORING OUR SOCIAL IMPACTS:
CORPORATE SOCIAL INVESTMENT
Rockwell has consistently supported various CSI initiatives, even while in a lossmaking position
Focus on supporting education of future generations of South Africans
Initiatives include:
♦ Financial support at Jannie Roux Home in Barkly West (place of safety for 75 children)
› Fixed monthly stipend towards overhead and catering costs + Ad hoc assistance + Annual Children’s Christmas
party
♦ Refurbished Vaal River School (+ hostel facilities) in partnership with Department of Education
› Sponsors three meals a day for 70 students
♦ Provided computer centers to three schools in Barkly West + covers cost of internet access
♦ Sponsors several sport development projects at three local schools + Annual rugby and soccer tournament
♦ Provides three meals a week to 140 senior citizens and people living with HIV/Aids in Gong-Gong near Barkly West
♦ Refurbished and extended Prieska School hostel
INDUSTRY CHALLENGE: Continual community investment: not just in the good times
Annual Christmas Party for children from Jannie Roux Home in Barkley West
1730 January 2014 |
ROCKWELL VALUES IN ACTION:
CSI SYNERGIES WITH LOCAL COMMUNITIES
Support of local municipal IDP projects with non-financial
assistance
Objective to exceed regulated SLP compliance
♦ Seeking synergies with local municipalities to provide “in
kind”
assistance
♦ Direct engagement with local communities
♦ Partnership on specific opportunities allied with their IDPs
♦ Maintain cognisance of Rockwell’s cash constraints
♦ Donated 1x loader and a 30t ADT to Douglas municipality
to fulfill need regarding waste removal in IDP
INDUSTRY CHALLENGE: Relevant local community support to solve real challenges
1830 January 2014 |
MONITORING OUR SAFETY IMPACTS
Multilateral approach to safety
♦ Collaboration with DMR, relevant trade unions and mine management to ensure safety
♦ Corporate Health and Safety Policy adapted to the specific needs of each operation
Objective per operation: Achieving 1,000,000 hours without any lost-time injury (LTIFH)
Building a proactive safety culture among employees
♦ Encouraged to take control of their own health and safety and that of their colleagues
♦ Trained to conduct mini risk assessments within job functions to manage operational
safety risks
Engaged with specialist consultancy to ensure world-class safety standards
♦ Streamlining and standardizing health and safety standards across operations
♦ Reviewing codes of practices, operating practices and policies
♦ Implemented recommended safety improvements
♦ Rolling out health and safety risk assessments and procedures
♦ Baseline risk assessments carried out at Saxendrift and Niewejaarskraal
♦ Issue based risk assessments conducted after any safety incident or introduction of new
equipment
ROCKWELL LEARNINGS: Safer work environment led by collaboration with all stakeholders
1930 January 2014 |
ROCKWELL VALUES IN ACTION:
GOING BEYOND NORMAL MINE SAFETY
November 2013:
♦ Saxendrift and Saxendrift Hill Complex (SHC) exceeded
1,000,000 LTIFH milestone
♦ Tirisano reached a 500,000 LTIFH
♦ Saxendrift previously achieved 1,000,000 LTIFH in October 2012
before SHC start up
Safety milestones achieved as Rockwell was exceeding its carat
production targets
♦ Achieved despite aging yellow fleet
♦ Working not only harder but smarter and safer
♦ Good safety practices integrated into daily work practices
♦ Achieved despite aging yellow fleet
Two new mines built with minimal lost time injuries
Privately owned royalty mining contractors operating to Rockwell’s listed
entity standards
♦ Five royalty mining contractors at Tirisano
2030 January 2014 |
MONITORING OUR HEALTH IMPACTS
Company sponsored HIV/Aids initiatives
♦ Voluntary HIV/Aids + TB testing offered quarterly at each operation
♦ Training provided to HIV/Aids peer educators
♦ Increasing uptake for HIV/Aids testing among employees
Primary health care from a mobile clinic in Barkly West
Annual employees medical screening
Illumination, dust, noise and bacterial levels tested on site by external occupational
hygienist
Remote location of mines necessitates on site accommodation for most staff
♦ Hostel accommodation recently upgraded: Two employees per room but effectively
single due to CONTOPS
♦ Continual review of menus to maintain a balanced nutritional quality with nutritional
supplements for overtime staff
Employee wellness programme launched
♦ Access to a qualified psychologist
♦ Legal and financial telephonic guidance
♦ Electronic e-Care service providing health and wellness-related information
Coping withstressStress is a normal part of life and one that is hard to avoid in our
ever-busy lives. Added to everyday stressors are the negative and
positive occurrences that can throw our lives into chaos, such as
moving house or extra tasks at work. It’s impossible to completely
avoid stress but you can learn to recognise stress triggers, evaluate
your reactio
n
s t o stress, and learn to better manage it.
Responses to stress include overeatin
g
, crying,
anger, pessimism (worst-case-scenario thinking),
depression, anxiety, insomnia, smoking, and
often unexplained pain – this from unconsciously
tensing the muscles in the shoulders and neck
which can lead to headaches, spasms, migraines,
back pain, and lack of sleep. Often people are not
aware that these responses are due to stress as
this can be an everyday part of life.
Tips for stressful daysManaging stress is about changing the stressful
situation
if you can, changing your reactio
n
if you
can’t, taking care of yourself, and making time
for
rest and relaxation
. There are many simple things
you can do to help alleviate the impact of stress.
• Build your defences. Living a healthy lifestyle
can help you reduce background stress levels
which will make you more resilient, and
means that you can cope with major stressors
more effectively. So make sure you eat well,
get enough sleep, and exercise regularly.
• Change your environment. Work out what
causes you to feel stressed and if possible,
avoid those situation
s, or at least limit the
amount of exposure to those situatio
n
s.
• Change your attit
u
de. Ask yourself: “Will this
matter in 2 weeks, 1 month, 1 year?” Remind
yourself: “I am in charge. I’m not going to let
this get to me.” Focus on your strengths and
the things you feel confid
e
n t about.
• Socialise. Isolation
has been linked to not
coping adequately with stress, heightened
vulnerability to illness, and even premature
death. So, get social.• Getridofanger.Itisthesinglemostdamaging
stress-related personality trait that precedes
a heart attack. Seek help if necessary.
• Set your prioritie
s
. Allocate tim
e
to your
loved ones and to your job. Be realistic about
how much you can achieve in a day. And plan
your time
at the end of the day so you can
start the next day on a good footing
.
• Be decisive. Indecision prevents you from
taking action
, causing a loss of sense of
control and thus intensifying stress.
• Get some sleep. Lack of adequate sleep can
make you moody, angry, and more vulnerable
to illness and the daily stressors that stalk
you.
• Encourage yourself. Those who accept
mishaps as normal parts of life have higher
self-esteem and much lower stress levels.
• Reward yourself. Doing something you enjoy
boosts your immune system for days.
Life skills
Copyright HealthInSite - www.healthinsite.net
Don’t look away,
act against abuseEstablished in 1991, 16 Days of Activ
i
sm against Gender Violence
is a United Nation
s campaign. The event takes place annually
between 25 November (International Day of No Violence against
Women) and 10 December (Internation al Human Rights Day). The
South African Government upholds the campaign and includes
issues relating t o violence against children.
This campaign focuses primarily on generating
an increased awareness of the negative impact
of violence on women and children and aims
to encourage individuals, organisation
s, and
businesses to take practical steps to help stop
violence against women and children.
What is the purpose of the campaign?
• To generate an increased level of awareness
amongst
South
Africans relating
to the
incidence of violence against women and
children, how it manifests itself within South
African society, and the negative impact on
these vulnerable groups.
• To challenge perpetrators of these offences
to change their behaviour.
• To enhance and increase partnerships
between government, the
private sector,
civil society, organised labour, sectoral
groups, faith-based organisation
s, the media
(electronic and print), and the diplomatic
communityinanefforttospreadthemessage.
• To raise funds for NGOs that work within the
sector, providing invaluable support to the
victim
s
and sur vivors of violence.
• To communicate through the most effective
and appropriate channels aiming to reach
the maximum number of people across the
country, partic
u
l arly women and children
residing in rural areas.• To engage actively with men and boys in
the discourse about combating
violence in
our homes, our communities , and in the
workplace.
• To highlight the stories of survivors of gender-
based
violence and child abuse, and the
impact that the campaign has had on their
lives.
Why is this an important campaign?
Therightsofwomenandchildrenarefundamental
human rights entrenched in and protected by the
Constitu t ion
.Gender-based and child violence,
in all its different forms, devalues human dignity
and the self-worth of the person and must be
stopped in our society.How can you support this campaign?
South Africans arecalled tosupport thecampaign
bywearingawhiteribbontoshowtheirsolidarity.
By wearing these ribbons for the duration
of
the 16-day period, you will be stating
that you
support the campaign and will encourage others
to do the same, and in so doing, create greater
awareness.
Awareness
Copyright HealthInSite - www.healthinsite.net
Movember:changing theface of men’shealthDuring November each year, ‘Movember’ (derived from the slang word for
moustache ‘Mo’ and the month of ‘November’) is responsible for the sproutin
g
of moustaches on thousands of men’s faces around the world. The aim is to raise
funds and awareness for men’s health.
How does Movember work?On ‘Movember’ 1st, men are encouraged to
register at Movember.com with a clean-shaven
face and then for the rest of the month, groom,
trim, and wax their way into the archives of fine
moustachery. Women who register to support
the men in their lives, raise funds by seeking
sponsorship for these Mo-growing efforts.
Men embracing the
Movember initiative
effectively become billboards during November
and will raise awareness by prompting private
and public conversation around the often ignored
issue of men’s health.Movember: a global movement
Since its humble beginnings in Melbourne,
Australia, Movember has grown to become a truly
global movement inspiring more than 1.1 million
people to participate, with formal campaigns in
Australia, New Zealand, the US, Canada, the UK,
Finland, the Netherlands, South Africa, Ireland,
Denmark, Norway, Belgium, and the
Czech
Republic.
No matter the
country or city, Movember
continuestoworktochangeestablishedhabitsand
attitudes men have about their health, to educate
men about the health risks they face, getting them
to act on that knowledge thereby increasing the
chancesofearlydetection,diagnosis,andeffective
treatment. As a result, big steps have been taken
towards changing attitudes and habits relating to
men’s health around the world.
The Movember effectThe funds raised in South Africa support the
number one and two male-specific cancers –
prostate and testicular cancer. The funds raised
aredirectedtoprogrammesrunbyMovemberand
the Cancer Association of South Africa (CANSA).
Together, these channels work together to ensure
that Movember funds are supporting a broad
range of innovative, world-class programmes in
line with the areas of awareness and education,
survivorship, and research.In South Africa, almost R2 000 000 has been
raised by this initiative to date. Via the moustache,
Movember aims to fulfil its vision of having an
everlasting impact on the face of men’s health,
by continuing to spark conversation and spread
awareness of men’s health each year.
For more information on the programmes that are
funded through this campaign, visit the Cancer
Association of South Africa (CANSA).
Awareness
Copyright HealthInSite - www.healthinsite.net
2130 January 2014 |
LOCAL ECONOMIC DEVELOPMENT
Rockwell invested R2m to start Bokamoso, a small business managed and
operated by women
♦ Manufactures and supplies bricks in Northern Cape
♦ Subsequent expansion into civil construction in mining
♦ Low cost renovations in local communities
Carried out civil construction on Rockwell’s Northern Cape mines
♦ >R1.5m goods and services procured from Bokamoso in fiscal 2013
Brickmaking facility being handed back to community:
♦ Mentorship to ensure successful handover
Civil construction divisions continues as enterprise development initiative
Primary channel for Rockwell’s enterprise development initiatives
INDUSTRY CHALLENGE: Mentorship with ED creates long term opportunities at grass roots level
2230 January 2014 |
LOCAL ECONOMIC BENEFICIATION
Local diamond beneficiation impacted by dwindling diamond cutting skills
base
♦ Number of diamond cutters in South Africa down to ±500: from some
5,000 to 10,000 15 years ago
Commitment to job creation extends from mines into diamond value chain in
South Africa
♦ Up to 10% of run of mine production sold to State Diamond Trader in
support of its commitment to sell these to local diamond cutters
♦ Sale of rough diamonds to Steinmetz Diamonds’ black economic
empowerment cutting and polishing facility
♦ Direct supply to 100% black-owned manufacturing facilities in South
Africa
More than 85% of Rockwell’s diamond production is beneficiated within
South Africa’s borders
♦ Led to creation of more than 20 jobs for specialized diamond cutters in
South Africa
INDUSTRY CHALLENGE: Enabling regulatory environment to support job creation
2330 January 2014 |
BLACK ECONOMIC EMPOWERMENT
Three tier strategy:
♦ Build a truly South African company
♦ Ensure BEE equity Participation and ownership as prescribed
♦ Proactive Workplace Empowerment incorporating employees, women, and
community development through cultural diversity
Middle Orange River Operations
♦ Unwinding of previous BEE partnership completed (final conditions precedent being
fulfilled)
♦ New partnership announced: Long established black investment company acquired
30%
♦ New partner’s approach is to strategically engage investee companies to unlock
value
♦ Expanding footprint in the MOR and perhaps in Northern Cape
Tirisano
♦ Bakwena Ba Mogopa Trust holds a 26% effective shareholding in Tirisano mine in
compliance with South African Mining Charter
♦ Partner unable to contribute their share of funding and liabilities: Tirisano mine fully
funded by Rockwell to date
♦ Unstable environment requires serious management time
2430 January 2014 |
CONCLUDING THOUGHTS
Social license to operate: The key to unlocking sustainable and broad based value creation in Mining sector
Crucial role by government: Ensuring an enabling legislative environment to attract private sector investment in mining
Rockwell’s continues to strengthen its social license to operate:
• Embracing a culture of inclusivity and accountability throughout operations
• True transformation of the workforce supported by mentorship based on merit
• Demonstrable commitment to limiting our environmental impacts
• Job creation in poverty stricken regions of South Africa
• 85% local beneficiation of rough diamond production
• Significant progress on safety practices: 1,000,000 LTIFH achieved group wide in January 2014
• Training and development initiatives across all job grades
Call to action: All mining houses “walking the talk” could unlock significant triple bottom line value
Long term success cannot be counted purely on economic profits: Equally important is contributing to broader economic and social
development
2530 January 2014 |
…ENCAPSULATED BY A JOURNALIST AFTER A VISIT TO OUR OPERATIONS
“…I spent two days visiting Rockwell Diamonds’ alluvial properties along the Middle
Orange River…’
“Not only did I discover the wonderful gems this company is recovering, but the real
gems that are making it happen – Rockwell’s employees. It didn’t take me long to
realise how devoted they are to their diamonds and doing what needs to be
done…”
“ … alluvial diamond mining … largely comprises juniors with limited cash …. They
need to find innovative solutions to problems. This makes determination,
dedication, and commitment essential prerequisites … and Rockwell has those in
abundance …”
“…the true beauty of a diamond lies in the hearts and souls of those who persevere
and pledge allegiance to their mine, giving it their all to make it work.”
Laura Cornish, Editor, Mining Review Africa, October 2013
2630 January 2014 |
THANK YOU!
116 carats SHC August 2013

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Creating and managing the social license to operate a mining company in South Africa

  • 1. 130 January 2014 | JAMES CAMPBELL, CEO JANUARY 2014 CREATING AND MANAGING A SOCIAL LICENSE TO OPERATE A MINING COMPANY IN SOUTH AFRICA: PERSPECTIVES FROM ROCKWELL DIAMONDS
  • 2. 230 January 2014 | THE SOCIAL LICENSE TO OPERATE “The aims of this group (De Beers) have been - and will remain - to earn profits, but to earn them in such a way as to make a real and permanent contribution to the well- being of the people and to the development of Southern Africa.” Ernest Oppenheimer “ A good head and good heart are always a formidable combination. But when you add to that a literate tongue or pen , then you have something very special.” Nelson Mandela
  • 3. 330 January 2014 | THE SOCIAL LICENSE TO OPERATE “To gain the social license to operate a mining company in South Africa, one needs to go beyond what is required by law. Rockwell Diamonds’ has gone a long way down this road by creating a culture which embraces transformation, not only in its operations, but also as it relates to its people and all other stakeholders. ” “Making a meaningful contribution to transformation in South Africa requires a disciplined and long term approach. This cannot be addressed through quick fixes and tokenism, but rather needs to be measured and balanced.” Mark Bristow, Chairman
  • 4. 430 January 2014 | INTRODUCTION: EARNING THE SOCIAL LICENSE TO OPERATE Rockwell’s objective: Create a growth-oriented mid-tier diamond mining and development company ♦ Delivering positive shareholder returns without harming stakeholders ♦ Symbiosis with environment, communities and regulators ♦ Importance of job creation and wellbeing of local communities Holistic approach to sustainability ♦ Commitment to all stakeholders, including employees and people affected by operations Despite historic and financial challenges, Rockwell did not compromise on its triple bottom line commitments ♦ Never lost sight that people are at the core of the business Having the right policies in place is not enough: Entrenching practices into daily operations is imperative
  • 5. 530 January 2014 | GOVERNMENT STANCE: ENVIRONMENTAL, SAFETY AND SOCIAL ISSUES IN MINING Critical high level requirements from an MPRDA & MHSA perspective? ♦ SA’s Minerals & Petroleum Resources Development Act (MPRDA) outlines requirements for black economic empowerment at shareholder, management and procurement level Impacts for mining companies ♦ Heightened vigilence required by companies to deal with Mining Charter, royalties, health and safety, environmental laws and the controversial Expropriation Bill ♦ Prescribes company involvement in social and community development not core business for Mining companies ♦ Royalties (introduced in 2009) led to higher costs: Exacerbated soaring global input prices, volatile commodity markets and turmoil in financial sector with resulting difficulties in raising capital ♦ Safety under increased scrutiny in SA: Government proposing amendments to Mine Health & Safety Act (MHSA), designed to force behaviour change Possible negative industry-wide implications ♦ Ineffective management of a permit system, due to inadequate administration and management, will lead to delays and major concomitant losses to employers and the country ♦ Potential to negatively affect international competitiveness of South African mining industry due to more red tape and potential for considerable delays ♦ Regulatory environment regarded with suspicion by offshore investors and affecting investment decisions ♦ Increased scrutiny on safety and higher penalties for non-compliance could impair viabilitiy of small-scale mining companies SA has a democratically elected ANC government: Active engagement towards social license to operate must be within spirit and rule of the law
  • 6. 630 January 2014 | PRIVATE SECTOR REALITY Strengths • Significant progress in terms of safety goals • Global demand for the resources produced by SA mining sector Weaknesses • Impact of widespread corruption • Lack of meaningful / broad based BEE • Lack of risk capital available for junior miners Opportunities • Uniting stakeholders to improve productivity and address rising costs • MPRDA amendments Threats • Continued labour unrest • Rigid labour legislation • Remuneration differential INDUSTRY GAP: Ease of launching new trade unions vs. capital intensive nature of mining industry GOVERNMENT CHALLENGE: Foster innovation and assist job creation: adopt Canadian model of flow through shares?
  • 7. 730 January 2014 | AN ENABLING CULTURE: KEY TO BUILDING A SUSTAINABLE LEGACY Rockwell’s values ROCKWELL LEARNING: Creating an enabling culture underpins all we do: Provides platform for delivery Integrating our corporate culture and strategic objectives ♦ Build a successful and profitable diamond mining company ♦ Also making a real contribution to the wellbeing of employees, local communities and economic development in South Africa Rockwell’s values guide the behaviors of all employees ♦ Represent Rockwell’s ideal work ethic and culture Groupwide diversity training initiative rolled out ♦ Develop better understanding of differences among employees to develop better relationships Building the Rockwell Family ♦ Quarterly CEO breakfasts: Employees invited to discuss questions and issues face-to-face ♦ Such as visits by HR personnel to families of employees when injured or deceased
  • 8. 830 January 2014 | ROCKWELL VALUES IN ACTION: AFTER ATTENDING DIVERSITY TRAINING, OUR PEOPLE SAID… “I learned the importance of not judging and understand other people’s way of thinking and personalities. That everything bad/good works together for good. That working together despite our differences -white/black, we can achieve more on our personal/work place. Always keep an open mind, talk less and listen more. That it does not matter where you begin but what matters is how you finish. That we need to materialize our thoughts and learn as we go from mistakes.”
  • 9. 930 January 2014 | 287 carats Saxendrift Extension November 2013 EARNING OUR SOCIAL LICENSE TO OPERATE: REVIEW OF ROCKWELL’S SOCIAL, ENVIRONMENTAL AND COMMUNITY INITIATIVES
  • 10. 1030 January 2014 | MANAGING OUR ENVIRONMENTAL IMPACTS ROCKWELL LEARNING: Economic benefits of proactive environmental initiatives Good understanding of top environmental risks and impacts ♦ Geology and Topography, Land capability and land use, Fauna and flora, Soil and water, Air quality and Noise, Visual impact and Archeological and cultural sites Measurement through EIA’s with bi-annual performance assessments in terms of MPRDA Continuous rehabilitation: Concurrent with mining where possible ♦ Re-vegetation of rehabilitated areas: Two to three growth seasons to reach initial predetermined land use ♦ 155ha of land rehabilitated across Rockwell’s properties in fiscal 2013 ♦ Additional benefit: lower financial provision requirements while ensuring legal compliance Rockwell commitment: Establishing at least two indigenous trees for removal of one protected tree ♦ Protected species: Boscia albitrunca (Shepherd’s tree) grows on many MOR mining blocks ♦ DoAFF approval required for removal while mining blocks of diamond bearing gravels ♦ Rockwell decision to mine around trees >2m rather instead of removal Mining around a Shepherd’s Tree
  • 11. 1130 January 2014 | MONITORING OUR SOCIAL IMPACTS: JOB CREATION Mines located in regions affected by high unemployment and poverty ♦ Jobs created by Rockwell provide economic stability to employees and their families Focus on job creation ♦ >100 new jobs created at new Saxendrift Hill Complex mine Support of Women in Mining ♦ 13% of total workforce vs 22% senior and 30% middle management Improving Middle Management employment equity ♦ Attracting young HDSA geologists and metallurgists in plant supervisory roles ♦ Up from four in 2012 to 19 HDSAs in 2013 Focus on job retention ♦ 220 employees relocated to Niewejaarskraal after Klipdam disposal African male 51% African female 5% Coloured male 26% Coloured female 4% Caucasian male 11% Caucasian female 3% DSA employment INDUSTRY CHALLENGE: Job creation in poverty nodes + real transformation not tokenism
  • 12. 1230 January 2014 | ROCKWELL VALUES IN ACTION: OPPORTUNITIES FOR OUR EMERGING LEADERS TO SHARE THEIR KNOWLEDGE SAIMM’s Fifth Diamond Conference: March 2013 ♦ Rockwell demonstrated leadership in alluvial diamond mining: The only company to deliver three high quality research papers ♦ Presented by three ladies showing real commitment to Women in Mining INDUSTRY CHALLENGE: Provide opportunities for emerging technical professionals to present their knowledge Forthcoming attraction: SAIMM’s Young Professionals Conference: March 2014 The role of subsidence in diamond preservation in the karst diamond deposit of the Tirisano mine Petronella Mohale Mine Geologist The impact of bottom cut-off on diamond mine recovery efficiencies Carole Ringane Data Analyst A study of the variation in the Rooikoppie gravels in the Lower Vaal area Mulalo Ndwammbi Mining Manager Bulk X-ray sorting technology vs. Conventional diamond processing plants Christophe Briers Junior Engineer Efficiency testing of Diamond processing plants Malthus Nenzhelele Metallurgist Impact of Geological mapping on alluvial diamond deposits Petronella Mohale Mine Geologist The use of Geological definition and controls in the development of a sustainable Mine plan Gary Dorkin Mine Geologist Legal Implications Versus The Social Imperatives to be Considered Under the Transfer of Employees To NJK – A Unique Rockwell Story Naledia Kau HR Officer Opportunities for our emerging leaders to share their knowledge
  • 13. 1330 January 2014 | ROCKWELL VALUES IN ACTION: RELOCATION OF KLIPDAM WORKFORCE POST DISPOSAL Opportunistic offer to sell Klipdam accepted in March 2013 ♦ Short remaining life of mine and poor financial performance High level study at Niewejaarskraal ♦ Rapid board approval to reinvest proceeds to build new mine Innovative approach to retain skills: ♦ 220 employees relocated to Niewejaarskraal: Eight accepted retrenchment ♦ Rockwell retained knowledge and experience ♦ Minimal retrenchment costs incurred ♦ Eliminated need for significant training costs for new workforce Challenge ♦ Rapid development of new mine by technical team ROCKWELL LEARNING: Key skills retained and retrenchment costs avoided New Niewejaarskraal processing plant
  • 14. 1430 January 2014 | MONITORING OUR SOCIAL IMPACTS: SKILLS DEVELOPMENT Dedicated training and development capability ♦ Training and transformation committee oversight with Union representation Work skills plan including: ♦ Learnerships: Eight employees (boilermaking, fitting, electrical and mechanical) ♦ Accredited internal training programmes aligned with NQF ♦ Statutory ABET programmes ♦ Young Professionals Mentorship and CEO Development programmes ♦ Specific focus on Women in Mining HCVW Training Budget 36% Mentorship plan 1%ABET Training Centre 11% Portable skills: welding, bricklaying, driver's license 5% Internal Learnerships 42% Other Technical Support Programmes 2% Women in Mining 3% Current training budget allocation INDUSTRY CHALLENGE: Focus on training and providing career progression
  • 15. 1530 January 2014 | MONITORING OUR SOCIAL IMPACTS: WOMEN IN MINING Objective to increase particiation of Women in Mining: Current 6% with 5yr target of 10% Demonstrate range of jobs available in non-traditional disciplines: Environmental science, Social science and Occupational Health and Safety Establish comprehensive tertiary based program to promote vacation opportunities in the sector and establish a cooperative arrangement for extended work experience Provide a gender-inclusive work environment: Professional and operational roles Provide structured mentoring and training Collaborate MQA and DMR INDUSTRY CHALLENGE: Women in Mining to bolster specialist technical skills Supporting Women in Mining
  • 16. 1630 January 2014 | MONITORING OUR SOCIAL IMPACTS: CORPORATE SOCIAL INVESTMENT Rockwell has consistently supported various CSI initiatives, even while in a lossmaking position Focus on supporting education of future generations of South Africans Initiatives include: ♦ Financial support at Jannie Roux Home in Barkly West (place of safety for 75 children) › Fixed monthly stipend towards overhead and catering costs + Ad hoc assistance + Annual Children’s Christmas party ♦ Refurbished Vaal River School (+ hostel facilities) in partnership with Department of Education › Sponsors three meals a day for 70 students ♦ Provided computer centers to three schools in Barkly West + covers cost of internet access ♦ Sponsors several sport development projects at three local schools + Annual rugby and soccer tournament ♦ Provides three meals a week to 140 senior citizens and people living with HIV/Aids in Gong-Gong near Barkly West ♦ Refurbished and extended Prieska School hostel INDUSTRY CHALLENGE: Continual community investment: not just in the good times Annual Christmas Party for children from Jannie Roux Home in Barkley West
  • 17. 1730 January 2014 | ROCKWELL VALUES IN ACTION: CSI SYNERGIES WITH LOCAL COMMUNITIES Support of local municipal IDP projects with non-financial assistance Objective to exceed regulated SLP compliance ♦ Seeking synergies with local municipalities to provide “in kind” assistance ♦ Direct engagement with local communities ♦ Partnership on specific opportunities allied with their IDPs ♦ Maintain cognisance of Rockwell’s cash constraints ♦ Donated 1x loader and a 30t ADT to Douglas municipality to fulfill need regarding waste removal in IDP INDUSTRY CHALLENGE: Relevant local community support to solve real challenges
  • 18. 1830 January 2014 | MONITORING OUR SAFETY IMPACTS Multilateral approach to safety ♦ Collaboration with DMR, relevant trade unions and mine management to ensure safety ♦ Corporate Health and Safety Policy adapted to the specific needs of each operation Objective per operation: Achieving 1,000,000 hours without any lost-time injury (LTIFH) Building a proactive safety culture among employees ♦ Encouraged to take control of their own health and safety and that of their colleagues ♦ Trained to conduct mini risk assessments within job functions to manage operational safety risks Engaged with specialist consultancy to ensure world-class safety standards ♦ Streamlining and standardizing health and safety standards across operations ♦ Reviewing codes of practices, operating practices and policies ♦ Implemented recommended safety improvements ♦ Rolling out health and safety risk assessments and procedures ♦ Baseline risk assessments carried out at Saxendrift and Niewejaarskraal ♦ Issue based risk assessments conducted after any safety incident or introduction of new equipment ROCKWELL LEARNINGS: Safer work environment led by collaboration with all stakeholders
  • 19. 1930 January 2014 | ROCKWELL VALUES IN ACTION: GOING BEYOND NORMAL MINE SAFETY November 2013: ♦ Saxendrift and Saxendrift Hill Complex (SHC) exceeded 1,000,000 LTIFH milestone ♦ Tirisano reached a 500,000 LTIFH ♦ Saxendrift previously achieved 1,000,000 LTIFH in October 2012 before SHC start up Safety milestones achieved as Rockwell was exceeding its carat production targets ♦ Achieved despite aging yellow fleet ♦ Working not only harder but smarter and safer ♦ Good safety practices integrated into daily work practices ♦ Achieved despite aging yellow fleet Two new mines built with minimal lost time injuries Privately owned royalty mining contractors operating to Rockwell’s listed entity standards ♦ Five royalty mining contractors at Tirisano
  • 20. 2030 January 2014 | MONITORING OUR HEALTH IMPACTS Company sponsored HIV/Aids initiatives ♦ Voluntary HIV/Aids + TB testing offered quarterly at each operation ♦ Training provided to HIV/Aids peer educators ♦ Increasing uptake for HIV/Aids testing among employees Primary health care from a mobile clinic in Barkly West Annual employees medical screening Illumination, dust, noise and bacterial levels tested on site by external occupational hygienist Remote location of mines necessitates on site accommodation for most staff ♦ Hostel accommodation recently upgraded: Two employees per room but effectively single due to CONTOPS ♦ Continual review of menus to maintain a balanced nutritional quality with nutritional supplements for overtime staff Employee wellness programme launched ♦ Access to a qualified psychologist ♦ Legal and financial telephonic guidance ♦ Electronic e-Care service providing health and wellness-related information Coping withstressStress is a normal part of life and one that is hard to avoid in our ever-busy lives. Added to everyday stressors are the negative and positive occurrences that can throw our lives into chaos, such as moving house or extra tasks at work. It’s impossible to completely avoid stress but you can learn to recognise stress triggers, evaluate your reactio n s t o stress, and learn to better manage it. Responses to stress include overeatin g , crying, anger, pessimism (worst-case-scenario thinking), depression, anxiety, insomnia, smoking, and often unexplained pain – this from unconsciously tensing the muscles in the shoulders and neck which can lead to headaches, spasms, migraines, back pain, and lack of sleep. Often people are not aware that these responses are due to stress as this can be an everyday part of life. Tips for stressful daysManaging stress is about changing the stressful situation if you can, changing your reactio n if you can’t, taking care of yourself, and making time for rest and relaxation . There are many simple things you can do to help alleviate the impact of stress. • Build your defences. Living a healthy lifestyle can help you reduce background stress levels which will make you more resilient, and means that you can cope with major stressors more effectively. So make sure you eat well, get enough sleep, and exercise regularly. • Change your environment. Work out what causes you to feel stressed and if possible, avoid those situation s, or at least limit the amount of exposure to those situatio n s. • Change your attit u de. Ask yourself: “Will this matter in 2 weeks, 1 month, 1 year?” Remind yourself: “I am in charge. I’m not going to let this get to me.” Focus on your strengths and the things you feel confid e n t about. • Socialise. Isolation has been linked to not coping adequately with stress, heightened vulnerability to illness, and even premature death. So, get social.• Getridofanger.Itisthesinglemostdamaging stress-related personality trait that precedes a heart attack. Seek help if necessary. • Set your prioritie s . Allocate tim e to your loved ones and to your job. Be realistic about how much you can achieve in a day. And plan your time at the end of the day so you can start the next day on a good footing . • Be decisive. Indecision prevents you from taking action , causing a loss of sense of control and thus intensifying stress. • Get some sleep. Lack of adequate sleep can make you moody, angry, and more vulnerable to illness and the daily stressors that stalk you. • Encourage yourself. Those who accept mishaps as normal parts of life have higher self-esteem and much lower stress levels. • Reward yourself. Doing something you enjoy boosts your immune system for days. Life skills Copyright HealthInSite - www.healthinsite.net Don’t look away, act against abuseEstablished in 1991, 16 Days of Activ i sm against Gender Violence is a United Nation s campaign. The event takes place annually between 25 November (International Day of No Violence against Women) and 10 December (Internation al Human Rights Day). The South African Government upholds the campaign and includes issues relating t o violence against children. This campaign focuses primarily on generating an increased awareness of the negative impact of violence on women and children and aims to encourage individuals, organisation s, and businesses to take practical steps to help stop violence against women and children. What is the purpose of the campaign? • To generate an increased level of awareness amongst South Africans relating to the incidence of violence against women and children, how it manifests itself within South African society, and the negative impact on these vulnerable groups. • To challenge perpetrators of these offences to change their behaviour. • To enhance and increase partnerships between government, the private sector, civil society, organised labour, sectoral groups, faith-based organisation s, the media (electronic and print), and the diplomatic communityinanefforttospreadthemessage. • To raise funds for NGOs that work within the sector, providing invaluable support to the victim s and sur vivors of violence. • To communicate through the most effective and appropriate channels aiming to reach the maximum number of people across the country, partic u l arly women and children residing in rural areas.• To engage actively with men and boys in the discourse about combating violence in our homes, our communities , and in the workplace. • To highlight the stories of survivors of gender- based violence and child abuse, and the impact that the campaign has had on their lives. Why is this an important campaign? Therightsofwomenandchildrenarefundamental human rights entrenched in and protected by the Constitu t ion .Gender-based and child violence, in all its different forms, devalues human dignity and the self-worth of the person and must be stopped in our society.How can you support this campaign? South Africans arecalled tosupport thecampaign bywearingawhiteribbontoshowtheirsolidarity. By wearing these ribbons for the duration of the 16-day period, you will be stating that you support the campaign and will encourage others to do the same, and in so doing, create greater awareness. Awareness Copyright HealthInSite - www.healthinsite.net Movember:changing theface of men’shealthDuring November each year, ‘Movember’ (derived from the slang word for moustache ‘Mo’ and the month of ‘November’) is responsible for the sproutin g of moustaches on thousands of men’s faces around the world. The aim is to raise funds and awareness for men’s health. How does Movember work?On ‘Movember’ 1st, men are encouraged to register at Movember.com with a clean-shaven face and then for the rest of the month, groom, trim, and wax their way into the archives of fine moustachery. Women who register to support the men in their lives, raise funds by seeking sponsorship for these Mo-growing efforts. Men embracing the Movember initiative effectively become billboards during November and will raise awareness by prompting private and public conversation around the often ignored issue of men’s health.Movember: a global movement Since its humble beginnings in Melbourne, Australia, Movember has grown to become a truly global movement inspiring more than 1.1 million people to participate, with formal campaigns in Australia, New Zealand, the US, Canada, the UK, Finland, the Netherlands, South Africa, Ireland, Denmark, Norway, Belgium, and the Czech Republic. No matter the country or city, Movember continuestoworktochangeestablishedhabitsand attitudes men have about their health, to educate men about the health risks they face, getting them to act on that knowledge thereby increasing the chancesofearlydetection,diagnosis,andeffective treatment. As a result, big steps have been taken towards changing attitudes and habits relating to men’s health around the world. The Movember effectThe funds raised in South Africa support the number one and two male-specific cancers – prostate and testicular cancer. The funds raised aredirectedtoprogrammesrunbyMovemberand the Cancer Association of South Africa (CANSA). Together, these channels work together to ensure that Movember funds are supporting a broad range of innovative, world-class programmes in line with the areas of awareness and education, survivorship, and research.In South Africa, almost R2 000 000 has been raised by this initiative to date. Via the moustache, Movember aims to fulfil its vision of having an everlasting impact on the face of men’s health, by continuing to spark conversation and spread awareness of men’s health each year. For more information on the programmes that are funded through this campaign, visit the Cancer Association of South Africa (CANSA). Awareness Copyright HealthInSite - www.healthinsite.net
  • 21. 2130 January 2014 | LOCAL ECONOMIC DEVELOPMENT Rockwell invested R2m to start Bokamoso, a small business managed and operated by women ♦ Manufactures and supplies bricks in Northern Cape ♦ Subsequent expansion into civil construction in mining ♦ Low cost renovations in local communities Carried out civil construction on Rockwell’s Northern Cape mines ♦ >R1.5m goods and services procured from Bokamoso in fiscal 2013 Brickmaking facility being handed back to community: ♦ Mentorship to ensure successful handover Civil construction divisions continues as enterprise development initiative Primary channel for Rockwell’s enterprise development initiatives INDUSTRY CHALLENGE: Mentorship with ED creates long term opportunities at grass roots level
  • 22. 2230 January 2014 | LOCAL ECONOMIC BENEFICIATION Local diamond beneficiation impacted by dwindling diamond cutting skills base ♦ Number of diamond cutters in South Africa down to ±500: from some 5,000 to 10,000 15 years ago Commitment to job creation extends from mines into diamond value chain in South Africa ♦ Up to 10% of run of mine production sold to State Diamond Trader in support of its commitment to sell these to local diamond cutters ♦ Sale of rough diamonds to Steinmetz Diamonds’ black economic empowerment cutting and polishing facility ♦ Direct supply to 100% black-owned manufacturing facilities in South Africa More than 85% of Rockwell’s diamond production is beneficiated within South Africa’s borders ♦ Led to creation of more than 20 jobs for specialized diamond cutters in South Africa INDUSTRY CHALLENGE: Enabling regulatory environment to support job creation
  • 23. 2330 January 2014 | BLACK ECONOMIC EMPOWERMENT Three tier strategy: ♦ Build a truly South African company ♦ Ensure BEE equity Participation and ownership as prescribed ♦ Proactive Workplace Empowerment incorporating employees, women, and community development through cultural diversity Middle Orange River Operations ♦ Unwinding of previous BEE partnership completed (final conditions precedent being fulfilled) ♦ New partnership announced: Long established black investment company acquired 30% ♦ New partner’s approach is to strategically engage investee companies to unlock value ♦ Expanding footprint in the MOR and perhaps in Northern Cape Tirisano ♦ Bakwena Ba Mogopa Trust holds a 26% effective shareholding in Tirisano mine in compliance with South African Mining Charter ♦ Partner unable to contribute their share of funding and liabilities: Tirisano mine fully funded by Rockwell to date ♦ Unstable environment requires serious management time
  • 24. 2430 January 2014 | CONCLUDING THOUGHTS Social license to operate: The key to unlocking sustainable and broad based value creation in Mining sector Crucial role by government: Ensuring an enabling legislative environment to attract private sector investment in mining Rockwell’s continues to strengthen its social license to operate: • Embracing a culture of inclusivity and accountability throughout operations • True transformation of the workforce supported by mentorship based on merit • Demonstrable commitment to limiting our environmental impacts • Job creation in poverty stricken regions of South Africa • 85% local beneficiation of rough diamond production • Significant progress on safety practices: 1,000,000 LTIFH achieved group wide in January 2014 • Training and development initiatives across all job grades Call to action: All mining houses “walking the talk” could unlock significant triple bottom line value Long term success cannot be counted purely on economic profits: Equally important is contributing to broader economic and social development
  • 25. 2530 January 2014 | …ENCAPSULATED BY A JOURNALIST AFTER A VISIT TO OUR OPERATIONS “…I spent two days visiting Rockwell Diamonds’ alluvial properties along the Middle Orange River…’ “Not only did I discover the wonderful gems this company is recovering, but the real gems that are making it happen – Rockwell’s employees. It didn’t take me long to realise how devoted they are to their diamonds and doing what needs to be done…” “ … alluvial diamond mining … largely comprises juniors with limited cash …. They need to find innovative solutions to problems. This makes determination, dedication, and commitment essential prerequisites … and Rockwell has those in abundance …” “…the true beauty of a diamond lies in the hearts and souls of those who persevere and pledge allegiance to their mine, giving it their all to make it work.” Laura Cornish, Editor, Mining Review Africa, October 2013
  • 26. 2630 January 2014 | THANK YOU! 116 carats SHC August 2013