Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 38 PERFORMANCE Social capital and stakeholder responsiveness (continued) Procurement In terms of the discretionary procurement targets set in the Mining Charter Scorecard, the Venture performed well as can be seen in the table below: Total procurement spend R Non- discretionary spend R Discretionary spend R BEE spend R Impact % Capital 1 770 623 857.44 1 131 535.56 1 769 492 321.88 1 134 819 041.31 64.13 Services 10 638 933 480.66 6 352 929 321.94 4 286 004 158.72 3 586 402 095.40 83.68 Consumables 4 684 491 874.74 1 254.00 4 684 490 620.74 3 622 855 505.55 77.34 Total 17 094 049 212.84 6 354 062 111.50 10 739 987 101.34 8 344 076 642.26 Multinational capital spend 49 606 032.28 Total procurement spend (including MNC) 17 143 655 245.12 Public health and HIV and Aids The Venture favours a united approach to public health, whereby we collaborate with government, international organisations and NGOs to make the most impact at community level. The public-private partnerships formed by the Venture provide communities access to prevention, treatment and care for HIV and Aids as well as other communicable and associated diseases. The Venture supports the government’s HIV counselling and treatment ("HCT") campaign by providing funding and testing sites. It has also funded health clinics and hospices in the communities in which it operates, including an HIV and Aids clinic in Lydenburg in Mpumalanga province. There is also a health clinic at the Lion ferrochrome plant in Limpopo province. Respecting the rights of communities Neither Merafe nor the Venture tolerates any form of discrimination and our policies clearly state that we do not tolerate any form of discrimination and that all our employees and stakeholders are to be treated with dignity and in a manner that is culturally appropriate, irrespective of gender, background or race. Human rights and ethics Merafe subscribes to the fundamental principles of human rights as enshrined in our country’s Constitution and Bill of Rights. Our policies and practices have been aligned with both to ensure that all our employees and stakeholders are treated with dignity and in a manner that is culturally appropriate, irrespective of gender background or race. Further, Glencore is a signatory to and has accepted the Voluntary Principles of Security and Human Rights. Ethics The Merafe Code of Ethics governs the way we do business and the way our directors and employees engage with our stakeholders. The Code, which is binding on our directors, employees and contractors, provides guidelines for behaviour which is above reproach. Stakeholder responsiveness Merafe and the Venture address material issues we have identified that could impact negatively or positively on our key stakeholders. These stakeholders include national, provincial and local government in their roles as regulators and partners; the trade unions in their role as representatives of the Venture’s employees who are from local communities; and our investors and business partners who are affected by all aspects of our business. The impact of our most material issues in regard to human, natural and social and manufactured capital on our stakeholders, together with our responsiveness on these issues, is outlined in this report. While Merafe has direct relationships with certain key stakeholders in connection with community matters, we also have indirect relationships through our partnership with Glencore in the Venture. As managers of the Venture’s day-to-day operations, Glencore takes responsibility for engaging with the Venture’s stakeholders. All the Venture’s operations and projects are expected to review the stakeholder engagement plans every year. The Venture’s operations held formal community stakeholder meetings during the year. In 2015 the Venture focused on identifying issues material to communities and stakeholders that will assist with preparing its social and labour plans for the five-year period from 2015 to 2020. See the stakeholder engagement table on our website for details of the Venture’s engagement and Merafe’s engagement during 2018. See our online Integrated Annual Report for 2018 for information on the Venture’s approach to human rights and ethics and the externally developed principles, charters and initiatives to which Merafe and the Venture subscribe.