we celebrate the outstanding PeoPle oF KuMba iron ... - Words' Worth
we celebrate the outstanding PeoPle oF KuMba iron ... - Words' Worth
we celebrate the outstanding PeoPle oF KuMba iron ... - Words' Worth
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category:<br />
Sustainability<br />
category:<br />
Sustainability SAFEty<br />
<strong>we</strong> <strong>celebrate</strong><br />
african achievers<br />
SAFETY<br />
What <strong>the</strong> judges looked for:<br />
• The measurable difference that <strong>the</strong> person or team has made to improving safety where <strong>the</strong>y work.<br />
• Improvements must be firmly embedded and can be sustained over <strong>the</strong> long term.<br />
Speech by Chris Griffith, Chief Executive of Kumba Iron Ore, at <strong>the</strong> annual<br />
Laurel Awards evening on 22 June 2011.<br />
At Kumba’s annual Laurel Awards evening <strong>we</strong> honour those<br />
among us who have set <strong>the</strong> pace in <strong>the</strong> previous calendar<br />
year. The Laurel Awards are a celebration of our best efforts<br />
as individuals and as teams – specifically in <strong>the</strong> fields of<br />
safety, sustainability, innovation, and partnership. Ho<strong>we</strong>ver,<br />
<strong>we</strong> do not limit ourselves to <strong>the</strong>se categories only, but also<br />
recognise <strong>the</strong> efforts of exceptional achievers in o<strong>the</strong>r fields.<br />
inception meant that <strong>the</strong> Trust could pay off its debt six years<br />
earlier than originally envisaged. This will free up hundreds<br />
of millions of Rand for development projects in our host<br />
communities and our labour-sending areas in coming years.<br />
Over and above this, Kumba has invested R134 million in<br />
<strong>the</strong> last year in <strong>the</strong> social and economic development of <strong>the</strong><br />
communities in which <strong>we</strong> operate.<br />
In his speech Chris Griffith, CEO of Kumba,<br />
honoured people making a difference, in a<br />
company making a difference.<br />
Highlights<br />
Last year, I said that 2009 was probably Kumba’s best year<br />
ever. History has since proven me wrong, as 2010 was in<br />
many respects an even better year judging from <strong>the</strong> following<br />
achievements:<br />
l At year-end <strong>we</strong> recorded 3,3 million lost time injury (LTI)-<br />
free man-hours at Sishen Mine, and <strong>the</strong> mine <strong>we</strong>nt on to<br />
set a new LTI- free record of more than six million manhours.<br />
l Over <strong>the</strong> same period <strong>the</strong> Kolomela Project recorded a<br />
massive 8,6 million LTI-free man-hours and <strong>the</strong> Kolomela<br />
Mine also worked for <strong>the</strong> whole year without any LTI,<br />
which is an excellent performance for a new crew on a<br />
new mine. Remarkably, <strong>the</strong> Project is still going strong and<br />
is about to pass <strong>the</strong> 13 million LTI-free mark. Well done to<br />
you all.<br />
l We also more than doubled our headline earnings in 2010<br />
to R14,3 billion (106% up on 2009);<br />
l We grew production at Sishen Mine by 5% to 41,3Mt;<br />
l We achieved a 6% increase in export sales volumes to<br />
36,1Mt;<br />
l We kept <strong>the</strong> increase in unit cash costs to 15%; and<br />
l We saved R340 million by optimising <strong>the</strong> use and size<br />
of our fleet, through our mining maintenance project and<br />
enhancements to drilling and blasting processes.<br />
Dividends<br />
Kumba paid a final cash dividend of R6,8 billion (R21 a<br />
share), which benefited our shareholders, our employees and<br />
<strong>the</strong> communities in which <strong>we</strong> operate. We are particularly<br />
proud of <strong>the</strong> R341 million in dividends <strong>we</strong> paid to Envision<br />
from <strong>the</strong> final 2010 SIOC dividend – and I am sure <strong>the</strong><br />
members are looking forward to a healthy boost to <strong>the</strong>ir<br />
finances later this year when <strong>the</strong> scheme matures.<br />
Exceptionally, <strong>the</strong> R989 million in dividends <strong>we</strong> have<br />
paid to <strong>the</strong> SIOC Community Development Trust since its<br />
Kolomela<br />
Ano<strong>the</strong>r highlight was that <strong>we</strong> managed to keep <strong>the</strong><br />
Kolomela Mine development on schedule and within<br />
budget, stripping 18,6Mt of waste material during 2010 and<br />
achieving a half-yearly run rate of 10,4Mt.<br />
Awards<br />
These achievements and o<strong>the</strong>rs are reflected in <strong>the</strong> numerous<br />
awards <strong>we</strong> received last year. These included Best Mining<br />
Company to Work for in <strong>the</strong> Deloitte Best Company to Work<br />
for survey; Top performing Company of <strong>the</strong> Year in <strong>the</strong> 8th<br />
Annual African Access National Business Awards; runner-up<br />
for <strong>the</strong> second year in <strong>the</strong> Sunday Times Business Times Top<br />
100 companies survey; a Best Performer in <strong>the</strong> 2010 JSE<br />
Social Responsibility Index, and being ranked fifth in <strong>the</strong> Ernst<br />
& Young Excellence in Sustainability Reporting awards.<br />
While impressive, <strong>the</strong>se achievements do not tell <strong>the</strong> full<br />
story – <strong>the</strong>y paint <strong>the</strong> big picture, but do not adequately<br />
reflect <strong>the</strong> individual and team efforts of our people. That is<br />
why <strong>we</strong> have our Laurel Awards – in recognition of <strong>the</strong> fact<br />
that Kumba can only achieve through its people. You are<br />
truly people making a difference, in a company making a<br />
difference.<br />
A record number of 223 employees (compared to 193 in<br />
2010) are receiving Laurel Awards, fifteen individuals and<br />
<strong>the</strong> rest as members of 29 teams.<br />
Fourteen of <strong>the</strong>se awards (five individual awards and<br />
nine team awards) have also been nominated for <strong>the</strong> global<br />
Anglo American Applaud recognition scheme that will be<br />
adjudicated later this year.<br />
In true Kumba spirit, prizes to <strong>the</strong> value of R240 000 will<br />
be donated to a range of charities on behalf of <strong>the</strong> winners in<br />
<strong>the</strong> various categories. Each Gold, Silver and Bronze winner<br />
will have <strong>the</strong> opportunity tonight to draw <strong>the</strong> name of a<br />
charity, which will each receive R20 000 on his or her behalf.<br />
Thanks once again for all your efforts this past year.<br />
t<br />
Gold<br />
Contemporary heroes in <strong>the</strong> realm of safety<br />
Team: Pieter Rossouw, Hennie Kaltwasser, Willem Roux, Marthinus Engelbrecht, Mick de Pierres,<br />
Floyd Glen Botha, Wayne Kenneth Hibbert, Pieter Theron Walters, Cornelius Jacobus Höll<br />
During 2010 Kolomela (previously Sishen South Project) recorded a Kumba first by achieving 10 million LTI free man-hours. This<br />
record, which surpasses <strong>the</strong> previous record of 5,4 million LTI free man-hours, has truly raised <strong>the</strong> bar on safety company-wide.<br />
In addition to <strong>the</strong> obvious benefits of achieving Zero Harm for this length of time, <strong>the</strong> company also reaped significant financial<br />
benefits from this exceptional safety record.<br />
Team members attribute this milestone achievement to leader Pieter Rossouw’s exceptional leadership skills. Pieter<br />
displayed on a personal level what it meant to lead and visibly demonstrate <strong>the</strong> key value of safety to achieve Zero Harm.<br />
The systems and procedures developed by Pieter’s team have subsequently become <strong>the</strong> standard across all Kumba<br />
operations, paving <strong>the</strong> way to achieving Zero Harm. Their impact has also permeated <strong>the</strong> contractor community. Contractors<br />
and Kumba staff alike have been called upon to comply with a variety of safety initiatives rolled out by Anglo American and<br />
Kumba during <strong>the</strong> review period. While <strong>the</strong>se initiatives <strong>we</strong>re <strong>we</strong>ll supported by <strong>the</strong> project team, a special management<br />
approach was required to encourage contractors to buy-in and accept <strong>the</strong> additional workload required to comply. This required<br />
a substantial mind shift from conventional construction practices.<br />
Special mention must be made of <strong>the</strong> team’s contractor management manual, largely developed by Hennie Kaltwasser,<br />
which is expected to become a Best Practice reference document for all future contractor management on Kumba projects, as<br />
an element of <strong>the</strong> Safety Management System.<br />
The team’s achievement is particularly significant against a backdrop of unexpectedly losing some key members of <strong>the</strong><br />
management team during 2009. Pieter stepped up to <strong>the</strong> plate at this difficult time to reorganise and lead <strong>the</strong> project, not only<br />
to its milestone safety record, but also to come in ahead of schedule and under budget.<br />
Marthinus Engelbrecht, Willem Roux, Floyd<br />
Glen Botha, Mick de Pierres, Dina Kaltwasser<br />
(accepting on behalf of her husband, Hennie)<br />
and Pieter Rossouw.<br />
This project<br />
has also been<br />
nominated for<br />
Anglo American’s<br />
global recognition<br />
system, Applaud.<br />
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