GROUP SUSTAINABILITY REPORT

2019

Gathering
Momentum

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Underground Mining + Oil & Gas + Power & Water

Respond effectively to
local requirements

We create value for societies through our business activities, which provide employment and develop infrastructure which has a considerable positive impact on socioeconomic development. In addition, our commercial partnerships with and procurement from local businesses support enterprise development and the upliftment of communities located near our projects.

LOCAL PARTNERSHIPS

Cementation Canada

Cementation Canada has long-standing partnerships with indigenous communities, the longest being with the Kitikmoet Corporation – an indigenous company based in the Nunavut and Northwest Territories.

The partnership is based on the following principles:

  • Improving skills development and maximising employment opportunities in host communities.
  • Procuring goods and services from indigenous companies in the Kitikmoet region.
  • Expanding the understanding and awareness of mining in the community and encouraging young people to consider mining as a career.

The Kitikmeot Cementation Mining Development
JV is active on three of the Group’s projects.

Underground Mining
  • In rolling out its Africa strategy, Murray & Roberts Cementation has established partnerships with local companies for mining projects in Central Africa, South Africa and Zambia.
  • Cementation Canada has several partnerships and JVs with indigenous groups in Canada, and with local companies in South America and Mexico.
JV in Mongolia
  • Clough and RUC Cementation Mining have a JV agreement with local Mongolian company, Gobi Infrastructure Partners LLC, at Rio Tinto’s Oyu Tolgoi mine project.
Oil & Gas
  • Developing indigenous subcontracting and supply chain opportunities, with AU$142 250 spent in FY2019 with over 12 indigenous-owned businesses.
  • Clough’s projects in PNG benefit local communities through the local procurement of goods and services, business development and improved local infrastructure, utilities and services.
Power & Water
  • Established JVs with black-owned companies in South Africa.
  • Developing local partnerships in East and West Africa.

Diversity and inclusion for information on local skills development

 

BBBEE IN SOUTH AFRICA

We achieved a Level 2 BBBEE rating in FY2019. The economic interests held by black shareholders in our South African operations was 89% with black women holding 33%.

Targeted interventions identify and assist small, medium and micro enterprises (“SMMEs”) which are central to job creation and economic growth in South Africa. Other initiatives include early payment for SMME suppliers, preferential credit terms for buyers and administration support for certain service providers, suppliers and clients. More broadly, preference is given to BBBEE-compliant vendors.

TRANSFORMATION PROGRESS AT PLATFORM LEVEL

Murray & Roberts Cementation achieved a Level 2 BBBEE rating and has developed seven black suppliers across various projects.

The Department of Minerals and Energy recently published the Mining Charter III, the legal framework for BBBEE in the sector. The most material impact on Murray & Roberts Cementation is that it will be contractually obliged to meet the local employment and procurement targets required of its clients. For singleasset junior companies, Murray & Roberts Cementation provides the only means for them to meet their charter obligations.

Power & Water has established BBBEE partnerships in power maintenance, transmission and distribution services and water solutions.

Murray & Roberts Power & Energy (“MRPE”) achieved a Level 3 BBBEE rating and is targeting a Level 2 rating for FY2020, with improvements to be achieved in its preferential procurement, skills development and socioeconomic development pillars.

The Murray & Roberts Khula Nathi Enterprise and Supplier Development Experience, in partnership with Raizcorp, invests in developing talented entrepreneurs. The programme assists them to grow successful businesses, create employment and develop their capacity to participate in MRPE’s supply chain.

BBBEE SCORE

97.72%

FY2018: 91%

26.07%

OF TOTAL PROCUREMENT SPEND WITH SMMES.

FY2018: 30.2%

TOTAL VALUE OF ENTERPRISE AND SUPPLIER DEVELOPMENT INITIATIVES

R3,9 MILLION

FY2018: R5 million

BBBEE scorecard

ACHIEVED FULL POINTS ON THE BBBEE SCORECARD FOR THE SOCIOECONOMIC DEVELOPMENT PILLAR.

BBBEE scorecard and preferential procurement in the key data table