Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 2 Our business We are listed on the JSE in the General Mining sector under the share code MRF. Our business is the 20.5% participation through our wholly owned subsidiary, Merafe Ferrochrome, in the earnings before interest, tax, depreciation and amortisation (EBITDA) of the Glencore-Merafe Chrome Venture (the Venture), in which Glencore Operations South Africa Proprietary Limited (Glencore) has a 79.5% participation. Our major shareholders are Glencore (Netherlands) B.V. (Glencore BV) and the Industrial Development Corporation Limited (Industrial Development Corporation). (See page 63 for more detailed shareholder information.) The Merafe Group and Glencore (formerly Xstrata) formed the Venture in July 2004 when we pooled our chrome operations to create the largest ferrochrome producer in the world. Glencore’s merger with Xstrata took place in May 2013. Stakeholder relationships We believe our commitment and achievements in terms of empowerment, sustainability and good governance have allowed us to establish sound relationships with our stakeholders. A diagram setting out the stakeholders that Merafe and the Venture have identified, together with the issues we have identified that could have a material impact on our stakeholders, can be found on page 4. Our shareholders 36% 29% 13% 22% Glencore BV SA free float Industrial Development Corporation Offshore free float Governance and sustainability Our commitment to good governance and sustainability is reflected in our inclusion in the JSE Socially Responsible Investment (SRI) Index since its inception in 2003. Since 2014 the SRI Index assessment was applied to the top 100 companies on the JSE by market capitalisation and therefore excluded small capitalisation companies. However, Merafe continues to apply the principles of King IV and the SRI Index reporting criteria in its business. Our material issues Our material issues and our materiality determination process are set out on pages 8 and 9. ORGANISATIONAL OVERVIEW For more information on the assets we pooled, of which we have retained ownership, and the additional assets we have invested in since participating in the Venture, see the tables on pages 21 and 60. Empowerment at 31 December 2018 of our Board members are female of all our employees are female 50% 57% of our Board members are black of all our employees are black 88% 85% OUR GROUP STRUCTURE 20.5% 100% 100% Glencore-Merafe Chrome Venture formed 1 July 2004 Merafe Chrome and Alloys Proprietary Limited Merafe Resources Limited Merafe Ferrochrome and Mining Proprietary Limited OUR APPROACH TO RISK We recognise that risk is inevitable in business and that it goes hand in hand with opportunity. We have established a risk management system that allows us to pursue business opportunities and grow shareholder value, monitor risk in our investments and develop and protect our people, the environment in which the Venture operates and our reputation. Our approach to risk management is discussed in the Transparency and accountability section of this report on page 58.