Sustainability review

Please note this report covers safety and health from October 2015 to March 2016, except where otherwise stated.
  • 13 of 18 South African sites and seven of 10 international sites record zero lost-time injury frequency rate (LTIFR). Six sites exceed one million lost-time injury-free hours, with PPC Bulawayo and PPC Riebeeck at over 2,5 million hours
  • Solid safety performance at established PPC operations with only three lost-time injuries (LTIs) compared to five in the prior six-month period (March to September 2015)
  • Pronto and Safika now included in PPC group safety and health programme
  • Significant reduction in malaria prevalence at our DRC project and adjacent villages after introducing a comprehensive prevention programme.
  • Two fatalities (Slurry and Mooiplaas)
  • Ten LTIs in 2016
  • Speed of implementing safety and health standards at some projects and acquired operations.

PPC health and safety (revised March 2016)
PPC is committed to protecting the occupational health and safety of employees, contractors and visitors in the workplace and, where appropriate, other stakeholders. The PPC group demonstrates this commitment through its occupational health and safety management system that is entrenched in all organisational activities and conforms to recognised occupational and railway health and safety standards and legal frameworks.

We will establish clear accountability for leading occupational health and safety standards in the company and although legal compliance is the foundation of the PPC health and safety management system, we will also monitor emerging issues, technological innovations and stakeholder interests to ensure effective and sustainable solutions to health and safety challenges. Accordingly, the health and safety policy will be periodically reviewed and revised.

To achieve best-in-class occupational health and safety performance, we are committed to:
  • Building, through engagement and empowerment, a proactive, high-reliability health and safety culture at individual, leadership and organisational levels
  • Providing the necessary resources and implementing formal systems and structures to ensure an effective health and safety management system for the group to achieve related objectives
  • Maintaining a specialised health and safety function for an informed view of associated risks arising from our business activities
  • Continuously identifying and controlling occupational health and safety risks to eliminate or minimise related hazards in the workplace and, where appropriate, our neighbouring communities
  • Establishing meaningful metrics to monitor our health and safety performance, and using these to set goals for continual improvement
  • Reporting and investigating health and safety incidents and actively sharing best practices and lessons
  • Educating, training and developing employees and other stakeholders, where appropriate, to ensure each person is able to act in a way conducive to health and safety
  • Maintaining open and transparent relations with all our stakeholders on occupational health and safety matters
  • Actively involving employee representatives in managing health and safety.
It is the responsibility of our leaders to ensure this policy is understood and effectively communicated and implemented throughout the PPC group. All employees are responsible for understanding the impacts of this policy on their day-to-day work practices and are expected to apply and support these principles.

Supporting our international expansion strategy, the latest revision of our health and safety policy ensures alignment with the requirements of the World Bank, recognises the extent of railway- related activities on our sites and facilitates appropriate accountability for safety at all levels in the organisation.

Safety performance
PPC uses management control as the guiding principle in determining whether safety statistics are reported as part of group figures or separately:
  • Where PPC has a majority share in the business, completes a financial consolidation and therefore has effective management control, safety statistics are included as part of group data 

  • Where PPC does not consolidate the financials (ie does not have majority shareholding) or have effective management control, statistics are reported separately.
Under this definition:

  • Safika (91%) and Pronto (100%) health and safety statistics are included
  • Habesha (31%) is excluded and has been reported separately from PPC group statistics.
Tragically, we recorded two fatalities at our South African operations in the reporting period. In October 2015, a contractor worker at Slurry (North West), was fatally injured in a conveyor belt tail-pulley incident. A PPC employee at Mooiplaas (Gauteng), was struck by a front-end loader in March 2016. Our deepest condolences go to the families, colleagues and friends affected by these events. PPC confirms its commitment to the safety and health of all our team members and other stakeholders. These tragic incidents will further strengthen our resolve to continuously improve our safety performance. As with all other significant incidents, full investigations were carried out and corrective steps implemented throughout the group.

PPC prides itself on excellent safety systems and has achieved considerable success in recent years. Despite our solid LTIFR record, the number of fatalities is a grave concern. After a relatively good record over 2012 to 2015 (one fatality), two fatalities in the reporting period has led PPC to critically examine its approach to safety. The focus areas identified for 2017 and other initiatives will strive for a zero-harm environment and culture over the next few years.

The group LTIFR was stable over the past five years, despite acquiring several new businesses and embarking on a major expansion drive. The increased number of contractors, projects and start-up businesses contributes to a higher risk profile. PPC recorded 10 LTIs, excluding the noted fatalities, in the review period: six were PPC employees and four were contractors. Three of the LTIs occurred at established South African operations, three at CIMERWA (Rwanda), three at Project Barnet (DRC) and one at the Slurry SK9 project. Focus areas for the coming year have therefore been developed to address the changed risk profile. The target for 2017 includes all these operations, recognises that safety interventions do take time to gain significant traction but also indicates our commitment to succeed in the short term.

The severity of incidents, reflected partially in days lost to LTIs, shows a steady decline from previous years and indicates that LTIs generally are not leading to long-term impacts. PPC developed and implemented a structured incident-analysis tool which is being used for all significant incidents. Lessons are shared to eliminate similar incidents group-wide.

Two of three administrative notices served followed the fatalities at Slurry and Mooiplaas, while the third was for a minor mobile equipment-related issue at Slurry. Further details are provided under authority visits.

Project Habesha – Ethiopia
The Habesha project recorded no LTIs in the reporting period. PPC and Habesha management have agreed to establish acceptable safety standards at the project and are cooperating to implement these. The critical role of leadership in this process cannot be overemphasised. PPC assists Habesha where necessary with all health and safety matters and strives to implement standards similar to those in other PPC international operation.

In the period October 2015 to March 2016, established sites recorded five LTIs and new sites seven LTIs.

Direct comparisons for different reporting periods (six months versus 12 months) do not necessarily represent developing trends. PPC did record two fatalities in this period, however, compared to zero in the preceding period. An apparent increase in injuries is attributed to the critical phases of certain projects where construction activities are peaking (projects Barnet and Msasa) and one new project where contractors established site (Slurry SK9) in the review period. In addition, the new CIMERWA plant was commissioned and began operating in this reporting period (new personnel, unfamiliar with equipment). As a result, we have carefully evaluated the operational readiness process followed for CIMERWA and incorporated the learning points in operational readiness processes for projects Barnet and Msasa. We are also working on integrating Pronto and Safika into group health and safety best practices.

Comparing new sites and established sites with past years is not meaningful given the phasing of projects and acquisitions in each year.

PPC recognises the important roles played by the Department of Mineral Resources (DMR) and Department of Labour (DOL) in South Africa in improving safety and health at our sites and we continue to support officials in this work. Similarly, we look forward to jointly strengthening cooperation and the legal framework in all our international operations.

For the review period, PPC received three notices from the DMR and zero from the DOL on health and safety issues. We are focused on aligning our operations with the requirements of the authorities. There were no visits from authorities in other countries in the review period.

Occupational health
All contractors and employees undergo health and safety induction before starting work.

In addition to entry, annual and exit medical examinations for all PPC employees and contractors, we continued conducting extensive pre- deployment health evaluations for expatriate workers (including all employees and contractors travelling for international assignments). These include medical assessments, fitness to work and/or travel, individual travel health assessments, vaccination requirements and malaria prophylaxis.

All legal health and medical reporting requirements of the DMR or DOL (as applicable) have been met. In addition, under the mining charter scorecard, PPC reports on HIV/Aids and tuberculosis programmes run by clinics at group operations. Prevalence is low for both diseases. No cases of silicosis were reported during the period and the incidence is extremely low in PPC with sites reporting zero silicosis cases over the last 10 years.

Due to the heavy industrial environment, noise-induced hearing loss is a specific hazard in PPC. Several years ago, we introduced the use of personalised hearing protection in all our established operations. New acquisitions and start-up operations will adopt this approach as appropriate. At all projects, we use disposable hearing protection due to the turnover of construction personnel. Hearing-conservation programmes are in place at most sites and will be rolled out to new operations.

PPC has implemented a malaria-control programme at project Barnet in the DRC which includes malaria awareness induction, insect repellent, issuing malaria test kits and extensive malaria vector spraying at construction and accommodation sites, and adjacent villages.

We had the opportunity to test our medical emergency evacuation procedure when an expatriate worker in the DRC developed malaria with complications. He was successfully evacuated and hospitalised in Johannesburg, and subsequently made a full recovery.

PPC remains active in Chamber of Mines structures to interact, obtain information and add value on compliance with various elements of the mining charter. The related scorecard for all SA mining sites was also completed and submitted in March 2016

All South African manufacturing sites remain certified to the OHSAS 18001 standard.

Our strategy to double our business every 10 years entails expanding existing operations; constructing, commissioning (both greenfield and brownfield projects) and operating new sites; and diversifying into a number of other materials and services businesses. The safety and health risk profile of each of these initiatives differs vastly and although PPC is guided by its overall health and safety policy, implementation methodology and processes need to consider in- country dynamics. As the operation in CIMERWA ramps up production, and with the construction completion and commissioning of the DRC, Zimbabwe and Ethiopia projects scheduled for late calendar 2016/early 2017, the challenges on building and maintaining robust safety and health systems will be significant. Simultaneously, we recognise that we need to strengthen the base in our established operations.

Focus areas for 2017
For existing and well-established PPC operations (South Africa, Zimbabwe and Botswana), our main focus for the year ahead is to provide refresher training at all levels based on individual roles and responsibilities (eg safety fundamentals, risk assessment, accident investigation and, in particular, focus on supervisor safety competence). In addition, we will strive to ensure safety and health systems are standardised across the group and, where necessary, appropriate software tools are provided to effectively manage these matters. We are also concentrating on management and reporting processes for occupational health.

PPC has developed a detailed operational readiness plan for project Barnet in the DRC and project Msasa in Zimbabwe. Extensive health and safety training will be provided to key leadership and all personnel will undergo a health and safety induction to ensure personnel are ready for the operational phases.

In line with the increased risk profile stemming from our expansion strategy, PPC has defined three overarching focus areas for 2017, primarily based on integrating the principles of a high-reliability organisation into all our businesses. The need for a new safety management software tool to meet our expanding requirements has been identified and full scoping for this system will be completed in 2016.

The three main focus areas for the group for 2017 are:
  • Enacting mindful leadership The role of leaders in safety management is as skilled facilitators able to motivate, collaborate and engage people, without losing sight of the goal. PPC leaders at various levels will be enlisted and equipped to enable them to inspire and enact a culture of safety – a prerequisite to becoming a resilient and safe operation. The role of leadership among contractors at our various construction projects will be critical and appropriate actions to ensure their commitment will be implemented
  • Developing safety competence Competence in health and safety is a critical component of workplace activities. Safety competence can be described as the combination of a person’s training, skills, experience and knowledge and the ability to apply these to perform a task safely. PPC will invest in building the safety capacity of all team members, focusing on our start-up business, projects and new acquisitions. Tailored in-country solutions, based on the PPC safety and health policy, will be developed
  • PPC occupational health and safety management standards Effective occupational health and safety (OHS) management will always form the foundation of acceptable performance in this area. Given the level of legal and reputational exposures of our different operations, this is an integral and critical part of the strategy. Our objectives include revising PPC’s safety and health management standards and structure to improve the quality of OHS management and ensure an appropriate solution for all operations.

  • Substantive negotiations with all respective unions concluded within mandate and without work stoppages.
  • Extended our Dinaledi bursary scheme to include children of PPC employees, with eight additional students supported
  • All mining rights have now been converted from old-order to new-order rights 

  • High rate of recruiting new senior executives to meet business requirements
  • High success rate of artisans qualifying from our accredited Technical Skills Academy – all seven employees who wrote their trade test passed 

  • Two successful intakes of community learners on the basic equipment and hand tools programme in DRC
  • Over 170 employee housing transactions completed in South Africa and Zimbabwe
  • Launched employee volunteer programme
  • Slight increase in number of high-potential employees leaving the company in the last six months
  • Talent management process not yet embedded.

Managing our people
PPC operations are supported by a diligent and dedicated team of 3 304 employees across five countries. We believe that better business decisions and stronger performance are driven by competent, high-calibre individuals operating in a diverse environment with the right skills, experience and passion. Their determination continues to drive our progress in executing our strategy.

Employee engagement is the very fibre of who we are as an organisation and our Kambuku philosophy, which has been an integral part of our people processes for many years, is still being applied to ensure high-engagement levels. To assess the current status and identify areas where we need to improve, we conducted a climate survey in the review period

Given the changing competitive landscape and company strategy, we have revised our business approach to achieve our strategic aspiration of sustainable competitive returns for all stakeholders by focusing on five key business pillars:
  • World-class excellence in all we do
  • Provider of materials and solutions
  • Creating an innovative culture

  • Taking a strategic approach
  • Doubling our business every ten years

In tandem, we initiated a robust change management approach that focuses on delivering results and driving a high-performance culture. Work is ongoing to ensure that our goals are achieved through the #IGNITE change initiative.

#IGNITE is establishing the foundation for a one-team PPC culture that will support our strategic goals by focusing on five broad elements:
  • Leadership effectiveness

  • Aligning the business behind the strategy
  • Head office effectiveness and value add
  • Development of “One Team” PPC culture
  • Talent management

Various initiatives within the different elements have been developed and implemented. Key roleplayers, who act as change igniters, have been identified across the business to drive and support these initiatives. The human resources team is also focused on revamping and embedding world-class talent management strategies and processes in the business.

Delivering business success through high performance
For PPC to achieve its objectives, all employees must be aligned to its strategic direction (page 5). This is cascaded throughout the organisation to drive functional, team and individual performance. Performance management and development are therefore important steps to enable staff to contribute to the success of PPC. The process is fair and robust, with employees identifying and agreeing personal development plans.

The performance management process comprises:
  • Scorecard alignment and agreement on key performance areas
  • Objective and subjective measures
  • Clear understanding of expectations/delivery by both parties
  • Progress reviews and performance coaching
Our people management system
Aligned to our business and HR functional strategies, our people management systems form an integrated link between strategy, performance management, remuneration and succession planning.

Talent reviews and succession management
Our succession management process aims to safeguard critical business positions by effectively managing vacancy risks, particularly at leadership level and in positions identified as critical to the success of our business. The goal is to identify, develop and retain highly talented and diverse individuals for a continuous supply of potential successors in key leadership and critical positions.

In the review period, we completed our second cross-functional talent board reviews across the business. The aim of these reviews is to identify key people who will take the business to the next level while effectively supporting and managing line employees. Feedback from these reviews is used as input to succession management.

Housing initiative
The PPC employee housing support scheme was introduced in 2012 to assist more than 300 employees to improve their living conditions over the next few years. Most eligible candidates do not qualify for a state-funded RDP house or a mortgage, and fall in the so-called gap market, making it virtually impossible for them to become homeowners without support.

To date, 471 South African employees have enrolled in the housing programme and are being helped to become homeowners. In total, 73 employees have moved into their new homes, upgraded an existing home or are awaiting title deeds before moving into their homes. Another 13 houses are in the transactional phase.

In 2015, we introduced a similar housing initiative for our Zimbabwe operations where lower-grade employees are given preference to purchase their existing home or any company high-density house at our Bulawayo or Colleen Bawn sites. To date, over 100 employees have capitalised on this opportunity and we are currently finalising the individual home ownership transfer process.

Empowering people
PPC’s relevant, empowered, actualised and lasting (REAL) transformation philosophy concentrates on maintaining a strong foundation to grow and empower employees. As part of this approach, the second phase of our BBBEE transaction in 2012 resulted in effective black ownership of PPC’s South African operations increasing to 26%. This transaction supported the conversion of our mining rights, and placed around 7% of the holding company’s ownership with South African employees.

In 2014, R100 million in shares from the 2008 BBBEE 1 transaction vested in the hands of employees. Allied to this transaction, the PPC Masakhane Employee Share Trust was created to allow all eligible employees to become shareholders of PPC. Since its launch, employee shareholders have received over 26 million shares and more than R23 million in dividends.

Employee participation and engagement
Our culture is founded on participation and engagement. We believe positive results are easily achieved when all employees are engaged, empowered and accountable. Active involvement and communication therefore occur frequently across PPC through established systems and processes, summarised below:

CEO town hall sessions
Monthly feedback on business performance and strategic issues. These are facilitated by Darryll and broadcast across all PPC sites by video link or recording. Employees can post questions or provide feedback on the PPC intranet.

CEO breakfast
The CEO held a series of breakfasts with groups of 10 to 12 head office employees over the last 18 months. These are designed to give employees an opportunity to engage with Darryll directly on any topic they choose, and feedback has been overwhelmingly positive.

Lunchtime talks
To ensure PPC employees stay abreast of developments in PPC and our business environment, a monthly lunch-time talk series was introduced in the review period. Speakers cover topics of interest, with the CEO addressing the inaugural session on PPC’s strategy. All sessions are recorded and distributed throughout the organisation.

Ask Darryll
A portal, Ask Darryll, was created on the PPC intranet as a platform for employees to submit questions to the CEO. Answers are posted on the webpage to benefit all employees. To date, 58 questions have been posted and answered.

Key leader summits
Regular team meetings at plant or site level, and across the business, involve all appointed, elected and informal leaders. The aim is to inform employees about plant, site or business performance, strategic initiatives, challenges and opportunities. Robust and constructive communication takes place in an environment of mutual trust and cooperation, and the outcomes of each summit are communicated clearly and promptly to shop-floor level. Through this process, we maintain a clear purpose and common vision and direction throughout the company.

Daily structured team discussions take place at shop-floor level, weekly at sectional supervisory level, and monthly at departmental level. There are around 365 active and effective Invocoms operating across PPC. Through these Invocom engagement sessions, we communicate elements of PPC’s vision and objectives, evaluate team performance, analyse obstacles affecting performance, develop appropriate action plans, and ensure targets are achieved. Behavioural safety, educational topics and development are also discussed in these forums.

Climate survey
In 2015, we implemented a new climate survey approach which was conducted independently across PPC to assess morale and identify improvement areas. Covering all PPC operations in South Africa and internationally, the survey indicated that PPC is doing very well on six of nine elements, with an excellent/very positive score of 75%. Three elements scored positive/favourable. The results of this survey will become a baseline for future assessments.

Although all PPC operations are implementing specific initiatives to improve climate relative to their own and business trends, general areas for improvement across the group were identified as:
  • Effective management and development of talent
  • Effective succession planning in business units and across the organisation
  • Stronger focus on performance management and developing a high-performing organisation
  • Supervisory and foremen development in terms of people management and leadership
  • Create greater understanding and insight into PPC’s employee value proposition
  • Attracting and retaining employees.
Our targets for FY17 and FY18 are 76% and 77% respectively by focusing on the issues noted stated above. In future, this will also include focused training for supervisors on career development and performance management to facilitate meaningful discussions with their staff and better support their development.

Our recognition programme is an integrated approach between country/site and group level. The aim is to recognise and motivate employees towards continuous improvement, innovation and a high-performing culture.

Our prestigious Diamond Awards consist of six categories; rising talent, customer service excellence (internal and external), sales, production excellence, business support and safety. An additional category recognises the #IGNITE initiative. This is a CEO discretionary award. The next Diamond Awards ceremony will be held in the fourth quarter of this year.

Group workforce analysis

PPC’s total workforce for 2016 is 3 304 compared to 3 372 in 2015. This includes our subsidiaries, Pronto and Safika, with a total workforce of 266.

Employment equity status (SA operations only)
Our focus areas for employment equity are at professional and senior management levels. We have good representation at skilled and semi- skilled levels as well as learners.

Expatriates per country
PPC SA permanent employees have been seconded to its subsidiaries aligned with the talent board and succession management process.

Workforce demographics
PPC’s workforce is well balanced by age. Young and upcoming consistency talent (under 30) represents 17% of the workforce, while the age group normally associated with greater career stability accounts for 62%. The risk of losing intellectual capital and institutional experience is well managed. Only 21% of our employees are aged 50 and above.

Workforce turnover
The nature and purpose of fixed-term contracts for employees are of limited-duration types for relief-of-duty and short-term project requirements. These numbers are not a true reflection of avoidable exits, and we have therefore excluded them.

The annual turnover rate (calculated using GRI methods) for 2016 is 6% in South Africa, 1% in Zimbabwe and 3% in Botswana operations. We have recorded an overall increase in turnover for this reporting period. The turnover rate for our Rwanda operations is 3% and DRC operations is 2% for the reporting period*.
* Not verified by Deloitte & Touch for assurance.

Labour relations
In South Africa (excluding Pronto and Safika, which are not unionised), 30% of employees are members of a recognised trade union, 45% in Botswana and 65% in Zimbabwe. PPC supports freedom of association and relevant agreements between the company and various unions are in place.

People development
The development and growth of globally competitive people is a key principle of our HR strategy and culture. We believe in enriching our team members by ensuring they have the right skills and knowledge to reach their potential. Training programmes are designed to produce substantial benefits for both PPC and its employees.

Training hours recorded for 2016 reflect six months compared to 12 months in 2015. PPC is on par with industry trends of average hours per employee of 60 to 80.

PPC technical skills academy (TSA)
TSA provides training and trade tests as a decentralised trade test centre and is fully accredited by Merseta (sector education and training authority for manufacturing, engineering and related services). TSA again retained its Mining Qualifications Authority (MQA) accreditation and ISO 9001:2008 certification in the review period. It was also accredited under the new National Artisan Moderation Board (NAMB).

Since 2002, TSA has successfully trained 230 engineering learners. Employed and unemployed learners enrolled for engineering learnerships at TSA during the review period are shown below:

TSA is also accredited for learnerships in carbonate materials manufacturing processes and mining and surface excavations, both accredited by the MQA and registered with the South African Qualifications Authority (SAQA). Participation on these programmes is as follows:

  • Carbonate materials manufacturing processes National Qualifications Framework (NQF) level 4 learnership:
    To date, 90 employees have successfully completed this programme
  • Rock-breaking: surface excavations NQF level 3 learnership:
    To date, 51 employees have successfully completed the programme.

PPC leadership talent development programme
As part of our strategy to establish values-based leadership in PPC, we have initiated a leadership talent development programme in partnership with the Gordon Institute of Business (GIBS). The aim is to develop globally competitive leaders in support of our business and HR strategy by focusing on carefully selected desired outcomes, including:

The first intake of 24 potential leaders in PPC completed the programme in 2014, with candidates from South Africa, Botswana, DRC, Rwanda and Zimbabwe.

A second group of 23 candidates was identified and nominated through the talent board review process. This programme started in August 2015 and was concluded in November 2015. As part of this delegation, we included candidates from our South African subsidiaries, Pronto and Safika. The participation of women in this intake was 42% compared to 21% in the first intake.

Graduate development programme
The graduate development programme was implemented in 2008 to give our Dinaledi bursars the opportunity to gain two years’ relevant work experience and exposure. To date, 39 graduates have successfully completed the programme, with 24 permanently employed at our operations.

Bursary scheme
In support of PPC’s employee value proposition, we introduced a bursary scheme for children of employees. The purpose is to invest in developing South African human capital, particularly among the financially needy. The policy governing our bursary schemes is influenced by scarce and critical skills as defined by the company to meet its longer-term employment equity targets and future operational needs, and to contribute to the national skills pool.

We issued eight bursaries to children of employees during the period in the following disciplines:

Study assistance
As part of our strategy to develop globally competitive people, we annually support employees in furthering their qualifications. In 2016, 57 employees received study assistance, of which 10 were postgraduate degrees. Four of these employees are completing MBA degrees. Study assistance is granted in line with approved individual development plans.

Empowered ownership
  • Effective 26% black ownership (comprising broad-based trusts, employees and strategic business partners) of South African operations in line with mining charter requirements at transaction value of around R3,8 billion
  • Over R1 billion in dividends paid to BEE structures to date, of which some 90% was used to service the debt 

  • Net value of shares totalling R108 million have been transferred to PPC employees and PPC black non-executive directors
  • Our employees hold over 6% of PPC shares allocated under BBBEE and over 3% owned by broad-based trusts
  • Over R100 million in dividends paid to employees and BBBEE beneficiaries since inception
  • R294 million advanced to the broad-based trusts to assist with funding obligations.
  • PPC’s BBBEE score dropped to level 8 (from level 2) due to the revised codes of good practice

PPC continues to advance BBBEE in South Africa, recognising the importance of meaningful mainstream economic participation by black people in meeting the country’s socio-economic objectives.

The total transaction value of the combined BEE is some R3,8 billion (after our initial R2,7 billion BBBEE transaction seven years ago, the R1,1 billion second phase was introduced in 2012). Black beneficiaries in broad-based shareholder groupings, including employees and communities, now hold an effective 26% of PPC’s South African operations, meeting mining charter requirements.

During the period, we continued to engage with national and provincial government departments to align our broad-based socio- economic transformation objectives. Progress is guided by our relevant, empowering, actualised and lasting (REAL) transformation philosophy, the heart of all our social performance initiatives.

PPC external broad-based trusts
Combined, our broad-based trusts own over 3% of PPC, allocated in terms of BBBEE. As one example of how these trusts benefit our stakeholders directly and indirectly, the PPC Education Trust has completed a mathematics and science project at high schools near our operations. With a total investment of some R1,4 million, close to 250 pupils benefited from this much-needed initiative. This trust also ensured the successful completion of the artisan programme, with all graduating learners employed in the group. To date, the broad-based trusts have received some R39,6 million in dividends.

PPC internal staff trusts
In December 2013 and 2014, shares belonging to four employee trusts and the black non-executive directors’ trust vested. This facilitated the transfer of 3,5 million shares, valued at R108 million, directly to beneficiaries. This is in addition to dividends of over R37,3 million received by beneficiaries since 2008.

Under the PPC Masakhane Employee Share Trust, our second employee scheme, existing staff beneficiaries have received R23,2 million in dividends. To date, 92% of the 26,7 million shares allotted to the trust have been allocated to beneficiaries. After issuing participation rights to new employees for three years from inception in 2012, the trust is now closed to new entrants.

The mandate of the PPC Bafati Investment Trust, launched in the second phase of our BBBEE structure, is to contribute meaningfully and sustainably to enhancing the standard of living and improving the well-being of disadvantaged people, especially black women, in areas where we operate. It also aims to assist in their development and empowerment and to advance BBBEE in line with the spirit and purpose of the BEE Act, mining charter and codes. The trustees are in the final stages of appointing beneficiaries. The trust has 1,9 million shares to allocate across 100 women beneficiaries from communities in PPC’s operations.

PPC Botswana share scheme
The staff scheme (Sesigo) for permanent team members of PPC Botswana and Kgale quarries was introduced over four years ago.

Under the scheme, team members share in the profits and growth of PPC by receiving the same dividends as PPC shares listed on the JSE in South Africa. As Botswana’s requirements for localisation (or BEE) have not yet been defined, we could not award employees in Botswana shares in PPC Botswana Pty Limited in their own names. Until this legislation is finalised, Botswana employees will enjoy the same financial benefits as their South African colleagues. To date, 111 employee beneficiaries have received R225 980 in cash payments.

Social and labour plans
Socio-economic development initiatives in PPC encompass community development projects we support in communities surrounding our operations through our CSI projects as well as social and labour plans, which include local economic development funding over a five-year plan.

Social and labour plan highlights for 2015

– Potterville Path-Out-of-Poverty (POP) Centre – Western Cape
– Emmanuel Haven hydroponics farm – Port Elizabeth

– Instability in certain municipalities

Potterville POP Centre – Western Cape
PPC signed a memorandum of understanding with the Bergrivier Municipality in 2014 to develop a community POP centre. Through this three-way partnership, PPC will fund construction of the centre on land donated by the municipality while the Goedegedacht Trust will operate the centre and ensure its sustainability. The centre will adopt a multi-faceted approach, based on the premise that appropriate early intervention in education, healthcare, personal development and environmental awareness can transform rural communities.

PPC funded a similar centre in Riebeeck West in 2011 which operates seven days a week offering the community after-school care for children and homework support, a library and internet- connected computer lab, a trauma room used in partnership with the local social worker and police, and a meal a day for needy children. Training courses offered at the centre include life skills, youth leadership, health and tness, and cultural exchange programmes. In the review period, the exchange of land was nalised and construction is expected to begin in August 2016. The cost of the centre is estimated to be R3,5 million.

The Emmanuel Haven hydroponics’ farm is a high-tech commercial greenhouse operation producing tomatoes and cucumbers for commercial retail in Port Elizabeth. It also incorporates open- eld operations producing vegetables for consumption by Emmanuel Haven Wellness Centre clients and cash crops for sale to local hawkers for resale into the Motherwell community.

Emmanuel Haven speci cally responds to issues related to unemployment, especially in Motherwell, HIV and Aids, and food security. Its non-pro t organisation manages the project that currently employs 31 local workers from Motherwell. A memorandum of agreement between the Nelson Mandela Bay Municipality, DMR, PPC and the Mining Forum in Port Elizabeth was concluded to implement the project. Members of the Mining Forum, including PPC, will contribute nancially to the project in line with their social and labour plan commitments.
Going forward
In consultation with the DMR, PPC will align its budget forecasts for the new five-year plans to the expected profits of each mining licence. In continuous consultation with our host and surrounding municipalities, various projects are being discussed for possible funding once accepted and approved by the DMR.

  • In Thabazimbi Municipality, a feasibility study was concluded to establish a waste buyback centre
  • PPC remains committed to uplifting the community of Matsatseng, near our Slurry operation. We are working with the local municipality to secure land to formalise this settlement, after which the municipality will provide housing and basic services
  • In the Northern Cape, PPC will contribute to upgrading electrical systems and networks as outlined in the 2014 to 2018 infrastructure initiatives of the Kgatelopele Municipality’s integrated development plan.

Corporate social investment
  • Successful partnerships fostered with Growthpoint
  • Well-entrenched community engagement forums across the business
  • ocial-economic development strategy developed to align to business goals
  • Fragmented approach to CSI which we are nows treamlining
  • Desire to meet more needs 

Our corporate social investment (CSI) endeavours are central to our values of contributing to society, valuing diversity and respecting others, which underpins PPC’s aim of being a responsible corporate citizen.

The active involvement of our people, through volunteering, remains at the core of our social investment strategy. We have many well- established CSI partnerships that are supported by volunteering initiatives.

We also donate to charities in response to requests for assistance across all regions and business areas in the group. This allows us to allocate meaningful grants in areas where we operate.

We have always encouraged staff to volunteer. Experience has shown that far more can be achieved by deploying our knowledge, expertise and influence than limiting our contribution to cash grants.

We have formalised our employee volunteer programme with the launch of two initiatives: the PPC Community Change Igniters programme and the Sports for Change programme. The first is a partnership with employees who volunteer at non-governmental organisations or NGOs of their choice. PPC contributes R10 000 to NGOs where our team members are actively involved. Our Sports for Change programme matches funds raised by team members for charities of their choice.

PPC back-to-school campaign
PPC Cement, in partnership with Wits medical students’ community initiative and Gift of the Givers, spent time at the NET HIV/Aids centre in Grasmere. The centre houses 105 children of all ages and supports child-headed households in the local informal settlement. Each child received a backpack with stationery and a pair of school shoes for the new school year. Time for Change, a PPC-supported shelter for vulnerable women in Johannesburg, manufactured the backpacks using PPC bags.

PPC and Growthpoint partnership

In line with our strategy to provide materials and solutions, PPC and Pronto recently partnered with Growthpoint Properties to deliver readymix to Lerato Education Centre, which serves the local informal settlement and houses over 150 learners.

JP21 and PPC partnership

The PPC and Newlands stadium partnership was announced in October 2015 (page 50). In a related agreement, we have partnered with cricketer JP Duminy and his non-profit organisation, the JP21 Project, to build a number of concrete cricket pitches and practise nets in under-resourced primary schools in the Western Cape, with a view to some of these children playing for South Africa at PPC Newlands one day. Initial beneficiaries from this partnership are Parkhurst Primary, Eisleben Road Primary and Duneside Primary.

Our PPC Montague Gardens team supports Learn to Earn (LtE), which focuses on sustainability, empowerment and job creation, in line with the group focus for CSI partnerships. LtE is a non-profit organisation that provides skills training to the Khayelitsha community and the broader Western Cape community. PPC has been in partnership with LtE for six years, providing financial support for the training and development of unemployed, socially and economically disadvantaged people in the province.

Community benches
Cool capital: PPC public benches
en benches were commissioned and designed by artists from Pretoria, and placed in public spaces around the capital where the need for seating had been identified. The project included skills development and skills transfer through bench-design mentoring and manufacturing training. PPC received a BASA (Business and Arts South Africa) award for this project.

The PPC Imaginarium awards, now in their second year, were built on the legacy of the Young Concrete Sculptors awards, which ran for over two decades. The PPC Imaginarium is now part of our CSI arts and culture initiatives.

Botswana Tlamelong Rehabilitation Centre
Tlamelong is a community project that caters for people with disabilities, training beneficiaries in horticultural skills and house- building to make them self-reliant. PPC Botswana’s support is aligned to one of the country’s Vision 2016 strategic pillars: a compassionate, just and caring nation.

With PPC Botswana’s assistance, the project now generates income to cover the school’s operational costs and creates employment for students when they graduate.

DRC In addition to establishing a technical skills training centre, PPC DRC has a number of other initiatives under way: –
  • Malaria vector control programme: regular spraying and fogging in surrounding villages
  • Improved sanitation at Malanga School
  • Improved water provision to local communities
  • Assisting local communities with ambulance services
CIMERWA is contributing to several initiatives in its local community: – Pro-femme/Twese Hamwe documentation centre fund-raising event. The beneficiaries of the Tuffblock project participated in this event
  • Upgrading clinic and school facilities
  • Providing purified water facilities
  • Socio-economic development focused on job creation:
  • Tuffblock manufacturing
  • Carpentry
  • Knitting
  • Poultry farming
  • Low-cost housing construction
  • Hydroform brick-making
PPC Zimbabwe supported:
  • Holiday classes for secondary school children, focused on maths and science
  • A disability centre
2016 and beyond
Changing legislation, a renewed focus on BBBEE, a drive for innovation in the social arena and increased expectations from all stakeholders in our areas of operation continue to shape the social investment landscape.

Our recent strategy alignment process highlighted a number of opportunities that will support our positioning, growth and impact in the social investment sector. It also made a number of recommendations in terms of how we are structured and how we can leverage our knowledge and expertise to support our strategic CSI intent of becoming the leader in community development. We have refined our CSI strategy and aligned it to the business strategy with a focus on areas of operations.

Preferential procurement
The weighted BBBEE procurement spend under the dti’s revised codes of good practice was over 81% (R3,3 billion) of our total measured procurement spend. Our expenditure with suppliers per BBBEE status level is shown below:

PPC has met and exceeded the revised dti compliance target of 80%. It has also met the definition of a level 5 contributor to BBBEE under enterprise and supplier development – preferential procurement requirements.

In terms of preferential spend against the mining charter, we met or exceeded all targets except for multinational contributions. We await finalisation of the broad-based economic empowerment charter for the mining and minerals industry (notice 450 Government Gazette 39933 of 15 April 2016), currently under public review.

Supplier assessments – societal impact in our areas of operation
PPC seeks to maximise procurement from black-owned and black women-owned companies to promote entrepreneurship and enterprise development in local communities at regional, provincial and national levels, aligned to our social and labour plan, as well as local economic development plan. We actively support the national agenda of promoting small, medium and micro-enterprise (SMME) sustainability, poverty reduction and employment creation. This includes shared economic growth by migrating procurement from non-transformed companies and bringing new participants into mainstream procurement opportunities without affecting our established value-for-money principles or society in any negative way.

PPC will implement enterprise and supplier development programmes aimed at suitably qualified existing and potential black- and black women-owned suppliers aligned to government programmes, eg black industrialists’ programme. These programmes will be commercially oriented and, as such, will be differentiated from any other socio-economic development programmes. For the duration of the enterprise and supplier development programme, the procurement team will, together with business, focus on identifying and selecting qualitative, reliable and cost-effective suppliers. It will also conduct annual performance assessments to establish the impact of these programmes to our areas of operation.

Supplier assessments – labour and human rights practices
PPC annually assesses its key suppliers through a structured questionnaire measuring the overall health of the supplier’s business across:

  • Commercial
  • Engineering and technical
  • Environmental
  • Finance
  • Preferential procurement
  • Health and safety
  • Human resources
  • Quality and business continuity
This process assists PPC to mitigate risk and ensures that, in addition to price and quality, the overall value proposition from suppliers is realised.

Supplier engagement
To ensure continuity in delivery, pricing and quality throughout the value chain, PPC evaluates the performance and progress of its supply base in implementing transformation programmes. Aspiring suppliers have the opportunity to engage PPC through our web- based procurement portal (, which is also a tool to assess the supplier’s compliance to labour and human rights practices, among others.

Easy access to information for supplier selection and rotation includes:
  • Early identification of enterprise and supplier development opportunities
  • Improving data integrity and security
  • Electronic tenders (e-tendering)
Kaap Agri
Supplier of the Year and winner of the hardware and building material category in a field of almost 800 suppliers
Rwandan Expo
PPC CIMERWA won the award forbest stand at the Expo
Concrete Society of Southern Africa (CSSA)
George Evans, Technical Specialist Technology,2015 Concrete Achiever of the Year
Conrete Society of Southern Africa
Hanlie Turner, Specialist: Technical Information Services,elected president of CSSA
Cool Capital Biennale
Special award forPPC’s public benches project
Build Zimbabwe, build your legacy promotion
PPC Zimbabwe won an award for the best competition
PMR. africa excellence awards
PPC won the highly acclaimed Diamond Arrow 2016 award in the category of cement supplier
Botswana policy development
Through PPC Botswana’s sponsorship, the construction regulatory layman’s bill was presented to the Minister of Infrastructure, Science and Technology.
If passed into law, the construction industry in that country will finally be regulated by an act, ensuring government and private projects are effectively regulated to meet budgets, schedules and the required quality standards
PPC Imaginarium
The PPC Imaginarium recognises innovation and design using Portland cement-based concrete as a primary inspiration or material across six disciplines: architecture, fashion, sculpture, jewellery, industrial design and film. The award is unique through its programmes that incentivise, reward, nurture, profile and assist emerging South African artists and designers in establishing their careers.

Building on the legacy of the 22-year-old Young Concrete Sculptors awards, the PPC Imaginarium is now one of South Africa’s largest creativity support and profiling platforms, and positions PPC as the champion of design and innovation in the cement and concrete field. The Imaginarium has grown remarkably, with 942 entries for 2015 versus 416 in 2014, its inception year. Last year, the Imaginarium exhibitions were seen by 87 000 people across six large exhibitions.

Digitally, the PPC Imaginarium is another first for our country. It offers uniquely interactive features with a strong and experimental emphasis on building online communities that encourage sharing, co-creation and online tutoring. The Imaginarium is digitally driven, mobi-biased with a strong and active presence on key social platforms. Its Facebook page has a reach of 74 600 with over 4 700 followers.

The exposure and support received by finalists have enabled many to start their own businesses. One finalist has subsequently been profiled by Design Indaba as a South African fashion talent while another’s film, Lilith – Genesis One, was featured at the Phoenix Film Festival Melbourne 2015 and Tanzrauschen International Dance on Screen Festival. The Imaginarium itself was a finalist for both the Concrete Society of Southern Africa’s Fulton and Business and Arts South Africa 2015 awards.

  •  Construction of kiln 9 line is under way at Slurry. This upgrade is part of our commitments in the postponement application approved in 2015 by the Department of Environment Affairs (DEA). The new facility will comply with 2020 minimum emission standards 

  • PPC De Hoek finishing mill bag filter upgrade completed, with dust emissions below 10 mg/Nm3
  • PPC successfully submitted its emission data for 2015 to the National Emission Inventory System (NAEIS)
  • Fugitive dust-extraction system commissioned for clinker offloading at Bulawayo milling facility
  • Tree nursery established in DRC for rehabilitation of factory and mining site, with almost 3 000 trees planted on site
  • PPCPortElizabethgrantedauthorisationtoupgradefacility in line with postponement application to DEA
  • Successful fuel replacement programme using tyre-derived oil at Hercules plant.
  • Three National Environmental Management Act (NEMA) section 30 reports submitted to DEA: NOx emissions exceedance at Dwaalboom, dust emissions exceedance at PPC Lime, and flooding of vehicle garage at Hercules contaminating storm water.

PPC environmental vision and policy
PPC Ltd believes in operating a sustainable business and we are committed to reducing the environmental impact of our operations while continually improving environmental performance. We ensure that sustainability forms an integral part of our business strategy while we strive to minimise or eliminate negative impacts and maximise positive impacts.

We encourage all our customers, suppliers and business associates to meet similar environmental goals.

PPC is committed to:

  • Integrating environmental management into management practices throughout the group
  •  Implementing our environmental best practices to reduce adverse 
environmental impacts of our operations and, where practical, 
prevent pollution 

  • Achieve continual environmental improvement by identifying 
significant environmental aspects and setting objectives and targets while reviewing environmental performance of our workplace and surrounding environment 

  • Ensure compliance to environmental legislation and other requirements to which PPC subscribes 

  • Responsible stewardship by managing natural resources through efficient energy strategies and implementing waste reduction and recycling where possible 

  • Achieve effective and transparent communication with our stakeholders through internal communiqués and environmental management stakeholder forums 

  • Train and educate our employees in environmental responsibilities and build capacity among our stakeholders to identify, report and act on opportunities to minimise environmental impacts
  • Manage our land through concurrent rehabilitation and maintaining biodiversity
Employees and contractors working on PPC operations play a fundamental role in achieving environmental objectives through:
  • Taking ownership of, and participating in, environmental management programmes and initiatives

  • Integrating environmental concerns into everyday practice
Our group energy policy acknowledges that PPC is an energy- intensive business. We are committed to developing energy and carbon management programmes throughout the organisation, considering lifecycle costs in procurement and design, and setting energy-efficiency targets. PPC aims to source 10% of its energy requirements from renewable or alternative energy sources by 2017.

Significant environmental issues
Based on stakeholder engagement, internal and external factors that affect the company as well as legal obligations, PPC has identified its significant environmental issues for 2017.

The changing legislative framework and carbon tax
The global regulatory environment on climate-change mitigation is evolving. In South Africa, the government is developing carbon tax legislation, allocating carbon budgets and implementing other measures to transition to a lower-carbon economy. A process is under way to allocate appropriate carbon budgets to individual companies, which will be expected to develop pollution prevention plans to meet these budgets. Currently, the carbon-budgeting process is a voluntary initiative to which PPC has agreed and a budget proposal has been submitted to DEA for consideration.

The DEA published financial provision regulations in November 2015. PPC is evaluating these to understand the impact on its South Africa mining operations. Our international operations manage compliance against international standards in areas where legislation is not yet fully developed.

Compliance management
To ensure compliance across the group, we use a combination of targeted internal audits, legal registers, external legal auditing and external permit-compliance audits. PPC operations use the environmental management systems approach to identify operational risks and manage these to ensure continual improvement and environmental compliance.

All our South African cement operations are certified ISO 14001 by independent certification body, SABS, our lime facility is certified by Dekra and our aggregates facilities are affiliated to ASPASA (Aggregate and Sand Producer Association of South Africa) which follows the ISO 14001 framework. No major findings were recorded in the reporting period.

Our international operations are aligned to the requirements of the International Finance Corporation and other lender institutions and committed to implementing their environmental and social undertakings.

To track and maintain environmental compliance, we have developed environmental legal registers linked to environmental management systems. These are audited every two years. These systems are being extended to other international business.

To improve the effectiveness of environmental management practices across the business, PPC is developing a management framework that responds to the nature and scale of our various operations. The framework will be finalised in 2016 and implemented during 2017.

Air quality management
Point sources
Cement and lime manufacturing releases emissions such as dust, sulphur dioxide (SO2), and oxides of nitrogen (NOX). In our South African operations, all point sources are monitored continuously for these emissions, except at Port Elizabeth where kiln gases are monitored with a portable analyser. Our objective is to ensure that all operations, including international, are continuously monitored by 2017.

We monitor the year-on-year performance of our South African cement kilns, in line with our programme to comply with minimum emission standards. PPC Lime operations are now included in this report.

Direct comparisons for different reporting periods (six months versus 12 months) are not necessarily representative of developing trends; however, it seems that both dust and NOX emissions are lower while SO2 rose primarily due to higher emissions from PPC Lime and an increase in SO2 due to pyritic material in De Hoek’s new quarry.

Air quality upgrades
PPC completed its De Hoek finishing mill bag-filter upgrade, at a cost of R22 million, resulting in dust emissions of less than 10 mg/Nm3.

PPC Port Elizabeth has been granted authorisation to upgrade its kiln line and finishing mill to meet 2020 minimum emission standards. The finishing mill filter upgrade was completed in May 2016.

Environmental management inspectorate
PPC’s SA operations had no formal compliance inspections in the reporting period, but a number of ad hoc visits were undertaken by provincial and local authorities. At our DRC construction site, a number of inspections indicated non-compliance for rehabilitation provision and waste management. Appropriate plans were developed and communicated to the authorities and the financial provision non-compliance has already been successfully resolved.

Subsequent to the order issued by the Environmental Management Agency in Zimbabwe at our Bulawayo factory, PPC Zimbabwe has successfully installed and commissioned a fugitive dust-extraction system for clinker offloading.

Three NEMA section 30 incidents were reported to the authorities. At PPC Lime, we recorded excessive dust emissions after a premature failure of a large number of filter bags. At our Dwaalboom operation, DK2 nitrogen dioxide emissions exceeded the limit for more than two days, which is a reportable incident. At Hercules, water entered the washbay after a flash flood and contaminated the stormwater with hydrocarbons. The necessary clean-up was done and reports sent to the relevant authorities.

PPC’s mine rehabilitation is on track, with 95% of disturbed land restored. Areas with high potential for agriculture are leased to local farmers for commercial farming. The wind farm at Grassridge, owned by Innowind, provides for innovative sustainable end use of our mining property.
Case Study
PPC Barnet nursery project, DRC
PPC Barnet established an on-site nursery to propagate predominantly endangered tree species – Kambala (Melisia exalta) and Limba (Terminalia Superba) – to reforest disturbed areas. The nursery is also used as temporary storage for rare species relocated due to construction and mining activities.

The project site area has been degraded from its natural form as local communities have removed all sizeable wood and burned the grass each year. Surrounding areas are in the same condition and do not support any substantial grazing for domestic animals. There is also no significant wildlife present in the area. The aim is to reconstitute forest covers in and around the project site and protect biodiversity by creating a favourable environment with seeds collected in the field by local communities and germinated in the nursery.

Work on establishing the nursery started in October 2015 and the first seedlings were produced one month later. Cumulative production to date is around 10 000 seedlings (Kambala, Limba, Acacia and Flamboyant) with almost 3 000 planted, mainly around the project site.

Further community involvement is planned to expand the nursery project. Grass and fruit trees are also propagated and used to vegetate the staff village under construction.

Eskom integrated demand management (IDM) project
After implementing a load-shifting project in terms of Eskom’s IDM initiative, we have reduced the electricity cost at our Hercules and Jupiter operations by 2% over the past six months. We plan to use these systems to benefit more operations as there is still opportunity for improvement.

Carbon footprint
PPC has expanded the scope of reporting on indicators to include recently acquired businesses and other regions in Africa. Given the shortened reporting period, we did not achieve our goal of rolling out indicator reporting to all business units, which has been extended into the next financial year.

The carbon intensity of finished cement has reduced to 749 kg CO2 ton. This reflects PPC’s mega-plant strategy where, regionally, the most thermally efficient kilns are prioritised to meet demand as well as Safika Cement’s continued integration into our cement business. Safika produces highly extended cements with very low carbon intensities.

Resource conservation
PPC Dwaalboom – alternative corrective material
Cement clinker is produced from a raw material mix that contains mainly calcium oxide, silicon dioxide, aluminium oxide (alumina) and iron oxide in certain proportions. An alternative raw material has been introduced at Dwaalboom as a corrective material source. This is recovered from a blend of waste material from slag, then crushed, screened and blended into a useful material for PPC Dwaalboom to manufacture a more consistent quality clinker with improved process stability. Using alternative materials assists in diverting waste from landfill and supports our aim to achieve sustainable manufacturing practices and improve product quality.

Hercules energy replacement
Case study:
The hot gas generator at Hercules used to supply heat to the vertical roller mill was fired with diesel. As part of our search for renewable alternatives, we tested a number of recycled oils and fuel oil from tyre pyrolysis as possible energy substitutes. These trials were successful and Hercules has now converted the hot gas generator to use a blend of recycled oil and tyre pyrolysis oil. The alternatives have calorific values in the range of diesel and these oils are delivered to site.

This project has had a significant beneficial impact on energy costs for the Hercules operation and reduced the consumption of non-renewable resources (diesel).

Based on the World Business Council for Sustainable Development’s Cement Sustainability Initiative, this alternative fuel replacement project would result in an effective reduction of greenhouse gas emissions on a net emission basis.

Water management
Southern Africa is a water-stressed region and although the cement industry is not water-intensive, PPC has a number of water management programmes in place: raising awareness; monitoring and water balances; storm water management; and water use licensing processes.

As part of our water management programme, we identify opportunities to save water and reuse where possible. The comparable period-on-period increase in municipal water consumption reflects PPC Dwaalboom’s supply line being split to the neighbouring Holfontein community. The metering has not been realigned to exclude Holfontein.
Water use licensing process
PPC has obtained all necessary integrated water use licences, except for PPC Dwaalboom. Current water uses at this operation are lawful and awaiting transition into the water use licensing regime. PPC is working closely with the Department of Water and Sanitation (DWS) and the licence is expected to be issued within the next financial year.
Water management
Case study:
Slurry’s new zero-waste sewage plant
As part of the Slurry kiln 9 project, a new sewage treatment plant was built to accommodate the number of employees and contractors on site. This biological waste-water treatment plant produces no sludge and requires no permanent labour given its low maintenance requirements and very low electricity use. As an enclosed plant, it avoids unpleasant odours and offers no access for foreign material to enter the system. While its design means no waste is released, if any waste water does need to leave the system, the specifications ensure this meets the requirements of the DWS and any applicable environmental legislation.

Stormwater management at CIMERWA
Case study:
Through its various environmental programmes, CIMERWA is committed to implementing measures to manage its stormwater in line with industry good practice. In collaboration with the local government, CIMERWA identified an opportunity to use local women to construct stormwater management systems on the factory site. Formalised as a Tuffblock association, these women provide gardening services in addition to implementing the stormwater management system which involves making the Tuffblocks to prevent erosion and planting trees and grass to rehabilitate the area.

Stakeholder engagement
The South African Association of Cementitious Material Producers plays a pivotal role in the engagement process and ensures industry issues are addressed through legislative reform processes, for example carbon tax, desired emission reduction outcomes, carbon budgets, greenhouse gas emissions reporting and pollution prevention plans and financial provision.

PPC is committed to interacting with environmental stakeholders through various channels. We meet our stakeholders at least twice a year to update them on projects, emissions and address any issues of concern. This model has also effectively been implemented at our expansion projects (see case study below).

PPC takes sustainability to the people through stakeholder forums
Case study:
The purpose of the Club Ntemo in DRC is to address issues arising from the project, contribute to the implementation of the sustainable development plan and maximise the benefits of the project.

Club Ntemo comprises delegates from four villages in the project’s primary sphere of influence: Zamba, Nkumba, Malanga and Malanga Gare. Each village sends six people (including at least two women) designated by the chief of the village or the duke. Meetings are held once a month on rotation through the different villages. During the reporting period, six meetings were held.
Focus areas for 2017
  • We will continue to implement and maintain ISO14001 standards across our operations
  • We are developing an effective pollution-prevention plan for relevant sites
  • After completing the DeHoek (DK1) bag filter upgrade, ourfocus shifts to optimising the benefits
  • The Port Elizabeth finishing mill bag filter upgrade is expected to be complete by May 2016
  • We are compiling a group waste classification to support our strategy for managing waste.