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12mm<br />

12mm<br />

6mm<br />

6mm<br />

12mm<br />

UNDER CONSTRUCTION<br />

Turn to page 2<br />

LTI-free<br />

SAFE DAYS<br />

6 1<br />

Congratulations to Reductants<br />

for achieving 61 “Safe Days” since<br />

reaching its target on 16 August 2012<br />

– making it the <strong>Waterberg</strong> Region’s<br />

top performer as at end of September.<br />

A publication for<br />

Exxaro’s people in the <strong>Waterberg</strong> Region issue 3 october 2012<br />

High performance<br />

under pressure<br />

Coal keeps feeding the<br />

furnaces – strong half-year results<br />

Turn the page for more<br />

18mm<br />

IN THIS ISSUE – 2 Message from Grootegeluk mine manager; 3 A top-notch half-year performance; 4 Our women miners<br />

– from strength to strength; 6 365 days of safety; Message from BU manager, Reductants; 7 All about community; 8 A High 5<br />

lunch for <strong>Waterberg</strong>’s hard workers; 10 PITs awarded; Exxaro achieves RTMS accreditation; 11 A tree in time...; 12 Supporting<br />

Lephalale development; 13 Long-service employees saluted; 14 Fun for all at the Bosveld Festival; 15 Casual Day cheer;<br />

16 Services need-to-knows.


We have faced a myriad of challenges<br />

throughout the year, especially on the safety front,<br />

culminating in the tragic loss of our colleague,<br />

Shadrack Moroka. On 19 October I apologised<br />

to the Moroka family for not being able to return<br />

Shadrack home safely. As a leader responsible<br />

for ensuring employee safety, I wish to never<br />

experience this again.<br />

Many of our processes were expedited<br />

to reduce the Moroka family’s burden during<br />

this difficult time and personal support was<br />

provided to ensure that their needs were met. On<br />

30 October, we visited the family again to assess<br />

their situation. We will remain in contact with<br />

them.<br />

I am pleased to inform you that Andre van<br />

der Merwe who survived the accident, has been<br />

released from hospital. We are providing the<br />

necessary support for Andre to return to work as<br />

soon as he is fit and wish him a speedy recovery.<br />

The internal inquiry into the incident has<br />

commenced. Thank you to all involved for the<br />

work that has led to its current status. We hope<br />

that the outcome will help us to understand<br />

what happened and learn from it. The external<br />

investigation, chaired by the Department<br />

of Mineral Resources’ (DMR) inspectors, is<br />

scheduled for the end of November.<br />

“Rise to the challenge<br />

and forge ahead”<br />

From Mervin Govender, Grootegeluk mine manager<br />

Grootegeluk suffers a fatality<br />

Grootegeluk regrets to report that one of the mine’s employees<br />

died following an accident on 19 October. A preliminary<br />

investigation revealed that Shadrack Moroka, aged 57,<br />

sustained fatal injuries when a Haulpak truck collided with<br />

an LDV bakkie of which he was an occupant. Together with<br />

the Department of Minerals and Energy, a full investigation is<br />

currently underway to determine the cause of the accident and<br />

prevent similar occurrences.<br />

Mxolisi Mgojo, executive general manager, Coal, extended<br />

sincere condolences to the family, friends and colleagues of<br />

the deceased. “We recently announced a 12-month period<br />

without any fatalities,” he said. “Safety remains a top priority<br />

for Exxaro and we will continue to strive to achieve Zero<br />

Harm at our operations. On behalf of management and all<br />

employees, I convey our deepest sympathy.”<br />

The Section 54 was lifted successfully<br />

and operations restarted. We are picking up<br />

momentum in our operations. Powerstation<br />

dispatches remain a priority as we strive to “keep<br />

the nation’s lights on”. Every non-production day<br />

has serious implications on Exxaro reaching its<br />

targets, and therefore also on employee bonuses.<br />

As we work towards restoring operational<br />

performance, I am concerned about the<br />

continued rise in damage incidents. This is a very<br />

disturbing trend. I encourage you to please take<br />

extra care in the execution of your duties and<br />

look out for one another, so that we may all return<br />

home safely after every shift. Not only do we care<br />

about you but Exxaro also needs you. You are the<br />

secret ingredient in our organisation’s success<br />

and we cannot afford any injuries or losses.<br />

The Marapong water problem was brought<br />

to our attention and we consulted the local<br />

authorities to rectify the situation. We will<br />

continue to engage until the service is restored to<br />

acceptable levels.<br />

In times like these, we need to stand together<br />

as a united front. Our strength as a team has<br />

been tested – let’s rise to the challenge and<br />

forge ahead. We need to ensure the survival of<br />

our mine for ourselves and for our families and<br />

communities. Finger-pointing and blame will only<br />

delay progress and undermine our efforts towards<br />

a better future. Feel free to raise any concerns<br />

you may have with management so that we can<br />

address them timeously.<br />

If you require counselling services, contact<br />

the CareWays employee assistance programme<br />

on 0800 004 770 or speak to someone you feel<br />

comfortable with. Do not wait to address issues<br />

affecting your wellbeing – take action now!<br />

Take note<br />

We don’t have a message from<br />

<strong>Waterberg</strong> Regional General Manager,<br />

Johan Wepener. Our thoughts and<br />

prayers are with him as he recovers<br />

after surgery. We look forward to his<br />

return and hearing from him in our<br />

next edition.<br />

WATCH THIS SPACE!<br />

Thank you for submitting your entries for the<br />

newsletter’s naming competition. The winner<br />

will be announced in our next edition.<br />

Send your suggestions, photographs or articles to one of the<br />

following members of the <strong>Waterberg</strong> newsletter’s editorial team:<br />

Thandeka Mchunu at thandeka.mchunu@exxaro.com<br />

Phone: 014 763 9089 Fax: 086 210 9048<br />

Cora du Plooy at cora.duplooy@exxaro.com<br />

Phone: 014 763 9343 Fax: 012 307 5602<br />

Thank you to all who contributed to this edition.<br />

We look forward to receiving more news from you.<br />

Keeping up excellence<br />

In August, the group released its interim<br />

financial results and declared a gross cash<br />

dividend of 350 cents per share for the sixmonth<br />

period ended 30 June 2012, payable to<br />

shareholders of ordinary shares. Employees at<br />

BUs in the <strong>Waterberg</strong> Region also qualified for<br />

tier one of the short-term incentive scheme and<br />

received bonuses.<br />

Exxaro’s consolidated revenue increased<br />

marginally by 3% to R9,8 billion, mainly as a result<br />

of higher mineral sands prices at lower volumes,<br />

a weaker local currency and lower coal volumes<br />

at lower export prices. However, attributable<br />

earnings, inclusive of the group’s equity<br />

accounted investment in associates, amounted to<br />

R9,05 billion or 2 555 cents per share – up 177%<br />

from 2011’s 921 cents per share.<br />

Announcing the results to Exxaro’s <strong>Waterberg</strong><br />

Region, executive general manager, Coal, Mxolisi<br />

Mgojo, said “the improvement of our portfolio<br />

remains a priority and years of focusing on this<br />

pillar led to various corporate activities during the<br />

first half of 2012. As one of our main sources of<br />

income, the coal portfolio has to be continuously<br />

reassessed. We hereby ensure that Exxaro<br />

strikes a balance between tied and commercial<br />

mines, different products and qualities, and local<br />

and export markets. In line with the strategy<br />

to improve our portfolio, we are constantly<br />

considering options and opportunities to improve<br />

our coal assets. This is the only way we will be<br />

able to achieve the coal strategy objectives and,<br />

as a result, have direct influence on the overall<br />

group strategy.”<br />

Coal revenue remained stable at R5,83 billion,<br />

mainly due to higher average domestic prices,<br />

partially offset by lower export prices and<br />

volumes. The slight increase in revenue was not<br />

enough to counter inflationary cost increases<br />

which resulted in a decrease in net operating profit<br />

to R1,35 billion at an operating margin of 23%.<br />

“With regards to projects in the <strong>Waterberg</strong><br />

Region, we are delighted to announce that the<br />

Grootegeluk Medupi Expansion Project (GMEP)<br />

is on track with its first coal already delivered to<br />

Coal’s revenue of R5,825bn<br />

equates to about 60% of<br />

Exxaro’s R9,756bn total<br />

revenue earned for the half<br />

year period.<br />

Zero fatalities,<br />

a 42% increase in core<br />

net profit and a rise in<br />

headline earnings to<br />

11% per share – these<br />

were only some of the<br />

highlights of the first six<br />

months. We take a look<br />

at Exxaro’s half-year<br />

financial results.<br />

Eskom,” Mxolisi said. “We are also excited by<br />

the prospects offered by Moranbah South as we<br />

complete the pre-feasibility study towards the<br />

end of this year. Plans are in place to start the<br />

bankable feasibility study in early 2013 and we<br />

eagerly await approval for the Thabametsi Mining<br />

Right.”<br />

Commenting on safety performance, Mxolisi<br />

said “safety is first and foremost to our business.<br />

We are therefore grateful to report that we not only<br />

experienced a fatality-free first half of the year but<br />

also a 12-month fatality-free period on 12 July. This<br />

occurrence is rare in our industry and although we<br />

are pleased and thankful, we need to consistently<br />

guard against complacency. I am exceptionally<br />

proud of our employees and contractors who<br />

proved their commitment to safety.<br />

“Unfortunately, this good performance<br />

slipped somewhat during the last six months<br />

and our Lost-Time Injury Frequency Rate<br />

(LTIFR) increased to 0,26. Rest assured that the<br />

reduction of our LTIFR is Exco’s top priority and<br />

relevant actions have been implemented to bring<br />

down the number of incidents at all levels.”<br />

Mxolisi also shared remarkable prospects<br />

regarding Exxaro’s iron ore and energy projects.<br />

“After the successful acquisition of African Iron<br />

Limited, Exxaro is embarking on a detailed review<br />

of its iron ore assets in the Republic of Congo.<br />

We are very excited about the development of<br />

Mayoko as it promises to form a significant part<br />

of our future business. Early indications show that<br />

we should be able to develop a mine delivering<br />

at least 10Mtpa of high-grade iron ore within<br />

five years and a number of fast-tracking options<br />

R5,83bn<br />

coal revenue remains<br />

stable<br />

177%<br />

increase in attributable<br />

earnings from 2011<br />

0,26<br />

LTIFR as at end June<br />

are being investigated to get operations started<br />

as soon as possible. We are fortunate to enjoy<br />

strong support from the Congo government.<br />

“As part of Exxaro’s commitment to protect<br />

energy sources and reduce its carbon footprint,<br />

we are engaged in various initiatives, including our<br />

recent formation of the Cennergi Joint Venture<br />

(JV) with Tata Power. Cennergi has already been<br />

awarded two projects, the Tsitsikamma and<br />

Amakhala Emoyeni wind farms, which will be the<br />

immediate focus while the JV establishes itself<br />

in the cleaner energy domain. We are also busy<br />

building the first co-generation plant at Namakwa<br />

Sands with installed capacity of 13,6MW,<br />

scheduled for hot commissioning by 2013,”<br />

Mxolisi said.<br />

Well done to every employee for contributing<br />

to Exxaro’s solid performance and thank you for<br />

continuously working towards excellence.<br />

2<br />

issue 3 october 2012<br />

issue 3 october 2012 3


Powering possibility for women<br />

Janine van Rooyen,<br />

one of the event’s<br />

speakers who<br />

discussed sexual<br />

harassment.<br />

Below – Attendees<br />

enjoying the<br />

inaugural WiM<br />

seminar in the<br />

<strong>Waterberg</strong>.<br />

Female employees from Exxaro’s <strong>Waterberg</strong> operations<br />

were treated to the inaugural Women in Mining (WiM)<br />

seminar in August. In support and celebration of the<br />

advancement of women in the mining industry, it was a day<br />

filled with knowledge sharing, motivation and inspiration.<br />

Above – Thirosha Govender (left), spouse<br />

to Grootegeluk mine manager, Mervin<br />

Govender, with Retha Piater, keynote speaker<br />

and executive general manager for Human<br />

Resources; Dipuo Mokone, WiM chairperson;<br />

and Tebogo Leepile, Grootegeluk Human<br />

Resources manager.<br />

“We hope this event will serve as a platform<br />

for you to acknowledge the vital contribution<br />

you make to our business, to celebrate your<br />

achievements and to highlight the progress made<br />

in terms of recruiting, training and developing<br />

women within Exxaro,” said Grootegeluk mine<br />

manager, Mervin Govender, in his opening<br />

address. “We recognise and appreciate your<br />

unique input and the value you add at every level<br />

of our organisation.<br />

“The advancement of women in the mining<br />

“Growing up destitute did not<br />

deter me from dreaming and<br />

ensuring that I realised my<br />

dreams of a better life. If you<br />

set your mind to a goal,<br />

you can achieve it.”<br />

Humbulani Motsotsoana,<br />

production manager at NCC<br />

Grootegeluk Human<br />

Resources manager,<br />

Tebogo Leepile (far<br />

left), and some of the<br />

seminar’s speakers.<br />

From the left are<br />

Rosemary Mthunywa,<br />

Sharon Marimuthoo,<br />

Humbulani<br />

Motsotsoana, Hanlie<br />

van Zyl and Dipuo<br />

Mokone.<br />

“As a woman in mining and a<br />

mother, there are two verbs<br />

that I apply in my daily life: learn<br />

and do. Learn from experience<br />

and others, always do your<br />

best and follow your dreams.”<br />

Hanlie van Zyl,<br />

mine planner at Grootegeluk<br />

industry is a focus area of the Mining Charter.<br />

In line with this requirement and to achieve our<br />

20/20 vision, we need a skilled and diverse<br />

workforce to grow and expand our business.<br />

This holds great prospects for Exxaro’s female<br />

employees. Embrace career development<br />

opportunities, for it is imperative that you<br />

prepare yourselves and be well equipped with<br />

the necessary education and skills to make a<br />

success of strategic or senior positions that may<br />

become available,” Mervin said.<br />

Keynote speaker and executive general<br />

manager for Human Resources, Retha Piater,<br />

inspired the audience with her career journey and<br />

explained Exxaro’s stance on advancing women<br />

in the organisation. “Exxaro wants to leverage<br />

the uniqueness of women in this business and<br />

increase the value added through diversity. We<br />

therefore have programmes in place to attract,<br />

develop and retain women at all levels of the<br />

organisation,” she said.<br />

Dipuo Mokone, WiM Forum chairperson,<br />

shared strategic initiatives linked to the forum’s<br />

roll out plan. In terms of recruitment, the<br />

committee is investigating ways to attract<br />

women and provide on-the-job training, while the<br />

retention leg focuses on aspects such as facilities,<br />

policies, recognition and support networks. To<br />

enable growth, the forum is examining individual<br />

development plans, mentoring and coaching<br />

programmes and identifying high performers for<br />

leadership development opportunities.<br />

Motivational speaker, Sharon Marimuthoo,<br />

discussed how introspection aids in discovering<br />

true potential and the importance of not only<br />

surrounding yourself with supportive people but<br />

also providing support to those around you.<br />

Another presenter, Janine van Rooyen, educated<br />

the ladies on sexual harassment. “It is of the<br />

utmost importance to know your rights, especially<br />

in the workplace,” she said. “Do not be afraid to<br />

make yourselves count and your voices heard.”<br />

Since May this year, the Women in<br />

Mining (WiM) schools visit programme has<br />

reached nearly 2 000 learners in Lephalale and<br />

its surrounding areas. The initiative provides<br />

education about careers in mining while<br />

aiming to spark interest in the industry and to<br />

encourage scholars to work hard in preparation<br />

for their tertiary studies. Focussing only on<br />

grades 11 and 12 at first, the programme was<br />

extended to cover all high school learners from<br />

Grade 9 upwards in order to reach scholars<br />

before they make subject choices.<br />

In August, the forum participated in the<br />

national science week programme at Phegelo<br />

High School in Marapong. The programme<br />

aims to inform and attract learners to careers<br />

in science and technology. WiM presenters<br />

from Exxaro’s various operational areas gave<br />

learners an overview of the required training,<br />

qualifications, study timelines, institution<br />

options, daily activities and approximate salaries<br />

relating to various work disciplines.<br />

Excited learners from Phegelo<br />

High School during a recent<br />

visit by the WiM forum.<br />

Women in Mining<br />

has learners in the know<br />

The WiM programme mainly focuses on<br />

mining careers in core operational areas,<br />

such as geology, metallurgy, surveying,<br />

and mechanical, mining, civil, industrial and<br />

electrical engineering. The forum also provides<br />

information on bursaries and other skills<br />

development programmes.<br />

The WiM male presenters who are involved<br />

in the forum’s schools visit programme. From<br />

left are Owen Poo, Willie van Schalkwyk and<br />

Jandré Marais.<br />

Grootegeluk ladies see the bigger picture<br />

Many of the female administration employees at Grootegeluk have spent<br />

years working at the mine without ever visiting the pit. With the use of terms<br />

such as “toktokkie” and “kiosk” around the office often leaving the ladies<br />

puzzled, an educational tour was long overdue.<br />

Wynand van Straaten, mining development manager, guided the women<br />

on a tour of the open face coal pit and answered questions as the enthusiastic<br />

ladies improved their understanding of the mine’s operations. They saw the<br />

giant “toktokkie” crushing tool and colossal hauling trucks at work, which prior<br />

to the excursion, many of them have only seen in photos.<br />

“It was absolutely eye-opening!” said Ulinda Viljoen (pictured left), a personal<br />

assistant working in the mining department. “I never knew the pit is so big<br />

and that we use such massive equipment. We continue our daily tasks in our<br />

offices, oblivious to the activities taking place around us. We really appreciate<br />

the experience. Seeing the bigger picture will surely add value to our work.”<br />

4<br />

issue 3 october 2012<br />

issue 3 october 2012 5

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