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BHP BILLITON DEVELOPMENT TRUST - ELLEN PAPCIAK-ROSE

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<strong>BHP</strong> <strong>BILLITON</strong> <strong>DEVELOPMENT</strong> <strong>TRUST</strong><br />

CORPORATE SOCIAL INVOLVEMENT REPORT


A capacity building permaculture farming<br />

project for rural Mpumalanga women, a<br />

partnership with Technikon Pretoria<br />

MISSION<br />

The <strong>BHP</strong> Billiton Development Trust (BBDT) implements sustainable community development<br />

projects to make sure that <strong>BHP</strong> Billiton (and its associate companies and operations) is a<br />

preferred business partner and a corporate citizen valued by all stakeholders.<br />

“...we are earning acceptance and legitimacy in our local communities...”


CONTENTS<br />

<strong>BHP</strong> Billiton Development Trust (BBDT) - An Overview.....2<br />

The People of the BBDT.....3<br />

Education Initiatives.....6<br />

Government Initiatives.....8<br />

HIV & AIDS.....10<br />

Job Creation.....12<br />

Victim Empowerment.....15<br />

Tertiary Education Initiatives.....16<br />

Financial Summary.....18<br />

Contacts.....20<br />

A craftswoman at the Little Elephant / Indlovu Encane Project<br />

1


<strong>BHP</strong> <strong>BILLITON</strong> <strong>DEVELOPMENT</strong><br />

<strong>TRUST</strong> (BBDT) - AN OVERVIEW<br />

In supporting socio-economic development in South Africa, the <strong>BHP</strong> Billiton<br />

Development Trust (BBDT) implements, co-ordinates and manages the sustainable<br />

development initiatives of <strong>BHP</strong> Billiton and <strong>BHP</strong> Billiton companies and operations<br />

such as Samancor Chrome, Samancor Manganese, Ingwe Collieries Limited and <strong>BHP</strong><br />

Billiton Aluminium, which participate in the Trust.<br />

The Trust is overseen by a board of trustees, which approves the strategic direction<br />

and policies of the BBDT in consultation with the Trust’s management team, whose<br />

members are responsible for the execution of policy, strategy and management of the<br />

day-to-day administration of the Trust’s affairs. The BBDT management consists of<br />

representatives from the <strong>BHP</strong> Billiton companies.<br />

“The strategy of the BBDT is to focus on specific areas of prevailing concern<br />

in South Africa today, where we believe we can make a tangible difference<br />

Mike Salamon, the BBDT chairperson<br />

through community development. These include health, sustainable job creation,<br />

empowerment through skills development, capacity building and educational<br />

upliftment,” says the BBDT chairperson Mike Salamon.<br />

“The BBDT does this through sustained partnerships, joint ventures, the establishment of mutually beneficial relationships with<br />

key stakeholders, such as the government and early involvement of the communities relevant to various projects. As a result of this<br />

approach, we are earning acceptance and legitimacy in local communities.<br />

While the BBDT’s focus is on key themes with which <strong>BHP</strong> Billiton can identify, we have found that there is enough opportunity for<br />

flexibility to work in other appropriate areas,” adds Salamon.<br />

THE BBDT FUNDING CRITERIA<br />

The projects, which emerge from various quarters, must meet the BBDT’s funding requirements before assistance is given.<br />

A holistic and integrated approach is followed that focuses on initiatives that:<br />

1. Create capacity in an organisation, community or government department to ensure the benefit of our contribution continues after<br />

our support is given.<br />

2. Become self-sustainable as soon as possible. They should have clear plans in place, with a sunset clause, so that the BBDT can<br />

move away from a project after it has become self-sustainable. Support is also given to pilot projects which can be replicated by<br />

government or other stakeholders.<br />

The BBDT endeavours to form partnerships with other stakeholders to maximise impact and leverage government funding and to use<br />

other available resources. Relevant stakeholders in this regard include all levels of government, Non Governmental Organisations<br />

(NGOs), private sector partners, communities and <strong>BHP</strong> Billiton employees and representatives.<br />

Funding of initiatives at tertiary education institutions is an important part of the BBDT’s activities. Generally, the objective is to<br />

support fewer institutions, in a substantial way. This support spans a number of years, if necessary.<br />

Some of the more specific criteria for funding are listed below:<br />

• Support is given to programmes aimed at advancing socio-economic development<br />

• Research projects that benefit the mining industry and community in general<br />

• Improvement of teaching levels of mathematics, science, English and technology<br />

• Projects aimed at the improvement/facilitation of academic performance<br />

• Projects that deal with transformation of tertiary institutions<br />

This publication is evidence of the successful application of the approach, principles and activities of the BBDT, according to four<br />

broad areas - education and training, capacity building, socio-economic development and health care.<br />

2


THE PEOPLE OF THE BBDT<br />

The BBDT is comprised of a dedicated management team who strive towards achieving the<br />

objectives of the Trust through the inception, management and implementation of the various<br />

projects and activities highlighted in this publication. They are supported by a team of seven<br />

administrators.<br />

SAM SEEPEI<br />

Sam Seepei, senior manager of the BBDT, heads up the Trust and is therefore<br />

accountable for reporting back to both <strong>BHP</strong> Billiton management and stakeholders on<br />

the Trust’s activities. He is responsible for the strategic direction of the department,<br />

financial control, producing the annual business plan and ensuring there is delivery<br />

on the business plan.<br />

Sam joined <strong>BHP</strong> Billiton in January 1985 as a personnel clerk. He has held a<br />

number of positions at the company in its various guises, including industrial relations<br />

officer and manager of the Samancor Foundation.<br />

He is also tasked with relationship building with stakeholders of interest, as well<br />

as partnering with relevant parties in other organisations and the government.<br />

GERALD MASHININI<br />

Gerald Mashinini, manager of finance and administration at the BBDT, started his<br />

working life with <strong>BHP</strong> Billiton in 1980 as a student trainee. He joined the company in a<br />

permanent capacity in December 1981. Gerald’s responsibilities include control of the<br />

Trust’s budget, compliance with corporate governance issues and the production of<br />

monthly financial statements.<br />

During his career at <strong>BHP</strong> Billiton, he has been a creditors clerk, a sub accountant,<br />

a financial accountant and then group accountant. He then moved to the company’s<br />

manganese division, where he held the position of management accountant,<br />

following which he was appointed to his current post at the BBDT.<br />

He was a trustee of the Samancor Group Provident Fund and is a director of the<br />

Kotulong Community Centre in Meyerton.<br />

3


LULU KHUMALO<br />

Lulu Khumalo, manager of communication and education for the BBDT, joined the<br />

company in April 2002. Her responsibilities include communicating the projects of the<br />

BBDT to stakeholders and other interested parties, as well as managing the education<br />

portfolio for the Trust.<br />

Prior to joining the BBDT, Lulu was chief executive officer of the Arts & Culture<br />

Trust, a private sector initiative to fund the arts.<br />

Among her challenges, Khumalo lists the implementation of a R30 million, 29-<br />

school holistic whole school development programme that will create centres of<br />

excellence out of all these schools.<br />

LESELA (PATRICK) MABELANE<br />

Lesela Mabelane joined <strong>BHP</strong> Billiton SA in September 1999 as manager of the<br />

Samancor Foundation, part of the BBDT. His duties include co-ordination of the<br />

company’s Corporate Social Involvement (CSI) activities with Samancor business<br />

units, forging and maintaining public private partnerships (PPPs) at provincial and<br />

local government level, ensuring compliance with recommended project management<br />

procedures, budgeting for CSI, preparing monthly reports on strategic projects and<br />

preparing and compiling quarterly reports for both the BBDT and the Samancor<br />

Foundation trustee board meetings.<br />

Lesela is a trustee of the Samancor Foundation and the Education Development<br />

Trusts of the Mpumalanga, Northern Cape, Limpopo and North West provinces. He is<br />

also a director of the Green Village Housing Association and an associate member of<br />

the Association of Mine Financial and Administrative Managers.<br />

BONGANI MQAISE<br />

Bongani Mqaise joined the BBDT in March 2002 as manager, CSI, <strong>BHP</strong> Billiton<br />

Aluminium SA. His responsibilities include ensuring that the CSI programmes<br />

implemented by the company’s Hillside and Bayside Smelters in Richards Bay align<br />

with the CSI strategy of the BBDT. These must, in turn, be in line with the company’s<br />

Health, Safety, Environment & Community (HSEC) Charter and management ethos.<br />

He is the local chairperson of the Black Management Forum (BMF). Bongani’s<br />

community projects have won two presidential awards and <strong>BHP</strong> Billiton’s global HSEC<br />

awards. He is also a director and trustee of four organisations.<br />

4


CHRISTIAN PETER<br />

Christian Peter is the CSI manager for Ingwe Collieries Limited, part of <strong>BHP</strong> Billiton<br />

and was appointed to his current position in 1997. His responsibilities include<br />

analysing, monitoring and ensuring projects are implemented in line with the BBDT<br />

initiatives; building and maintaining relationships with government departments,<br />

NGOs and small business development.<br />

He works closely with local economic development forums in the areas in which<br />

Ingwe operates. He is also a member of the Black Management Forum (BMF), the<br />

South African Board for Personnel Practice (SABPP) and the Institute for People<br />

Management (IPM).<br />

PHANUEL RAMALIWA<br />

Phanuel Ramaliwa, project administration officer for the BBDT, began his working life<br />

with the Trust as a trainee project manager in 1998. In 2000 he was appointed to a<br />

permanent position. His responsibilities entail the monitoring of the implementation<br />

of all CSI projects being undertaken by the BBDT, in conjunction with the managers<br />

responsible for the various divisions.<br />

NORAH SEGOATI<br />

Norah Segoati, health manager for the BBDT, develops health and social model<br />

programmes for the company and implements these in communities. She also<br />

develops, implements and monitors the BBDT’s HIV & AIDS policy.<br />

Norah joined the Trust in May 2002. She was previously the deputy director for<br />

youth and adolescent health at the National Department of Health.<br />

Norah’s duties include liaising with relevant stakeholders and forming<br />

partnerships with them to implement health programmes. She also liaises with<br />

international NGOs to forge partnerships with them for the designed programmes.<br />

5


EDUCATION INITIATIVES<br />

GRANTLEY COLLEGE<br />

Every learner deserves the chance to succeed, to fly! Grantley College, a small private school in Parktown, was established in 1964 to<br />

create a structured, caring and creative environment for children with learning disabilities.<br />

When writing standardised tests that assess reading, writing and mathematics skills, these children perform substantially below<br />

the level expected of their age and intellectual ability. Through entrance tests and psycho-educational assessments, the college<br />

establishes which kind of interventions are needed for their further education.<br />

Grantley College offers a fully remedial grade 7 and assisted education in grades 8 and 9. It also runs two very successful careeroriented<br />

National Senior Certificate courses: Food Services and Art and Design. The courses last for two years, and are the equivalent<br />

of a Standard Grade Matric, allowing learners to proceed to a technikon to pursue a tertiary education. More academically inclined<br />

learners write a Gauteng Department of Education (GDE) Matric. In the past few years, the college has consistently achieved a 100%<br />

pass rate.<br />

Independent schools no longer qualify for financial assistance if the fees exceed R10 000 a year. This has serious consequences<br />

for schools such as Grantley College, where the caring, assisted education programme has a learner/educator ratio of 10:1.<br />

Inevitably, fees are high - currently they stand at just under R30 000 per learner per year.<br />

Since this makes the educational service offered unaffordable to learners from disadvantaged communities, it is vital that<br />

assisted funding bursaries be made available. To this end, the BBDT has made a grant of R100 000 available.<br />

INGWE SATURDAY SCHOOL PROJECT<br />

The Ingwe Saturday School Project, which provides tuition in Mathematics, Physical Science, English and Accountancy, began with<br />

750 learners in 2001. The Project was initiated by Ingwe Collieries Limited, and initially was housed in the Ingwe Learning Centre. It<br />

was so popular, though, that the number of learners increased tremendously, which necessitated its relocation to Allendale College.<br />

At this venue, the Project has attracted learners from as far afield as the Carolina and Belfast districts.<br />

The classes are handled by senior markers in Mpumalanga, who know exactly how to prepare learners for examinations. This is<br />

reflected by a 12% improvement in the pass rate of the subjects taught.<br />

A number of educators in the province are also attending the Saturday classes, to assist them to prepare learners at their own<br />

schools for examinations. A number of requests have been received from other regions in Mpumalanga to replicate the Project and<br />

this is being considered.<br />

HOSTEL AT DEBEN<br />

The first day of August 2002 was a special day for the learners of the Northern Cape town of Deben. This was the day on which their<br />

brand new, R7 million hostel was opened by former president Nelson Mandela. The building challenge was taken up by <strong>BHP</strong> Billiton in<br />

partnership with Kumba Resources (previously part of Iscor). A third partner, the Northern Cape Department of Education, provided<br />

the necessary equipment and furniture and will maintain the 320-bed hostel.<br />

Deben, about 40km southwest of Kathu, has the largest primary school in the district. Children from the far-flung farming<br />

community around this town were under great pressure. Until the hostel was built, they could either travel vast distances to and from<br />

school, or they could lodge under poor conditions in private homes in Deben.<br />

Work at the hostel was done through the Northern Cape Education Development Trust, an initiative of concerned corporations<br />

wanting to assist government in addressing the backlog in education.<br />

The BBDT sees education in its broader sense of community development addressing social problems. In this way a world view of<br />

caring and accountability is inculcated in our youth.<br />

6


E-LEARNING CENTRES<br />

The BBDT’s R750 000 investment in<br />

three e-learning centres provided a<br />

welcome boost to the underdeveloped<br />

communities of Sharpeville, Kagiso and<br />

Steelpoort.<br />

Facilities at the centres include video machines and computers with CD-ROMs. Students can make use of these facilities to<br />

develop their communications skills, life skills, HIV & AIDS awareness and environmental knowledge. They can also access online<br />

training for the International Computer Driving Licence (ICDL).<br />

The Sharpeville and Kagiso e-learning centres form part of the municipal libraries while the Steelpoort e-learning centre is set<br />

up at the Winterveld Mine Training Centre outside Steelpoort. Students and learners from surrounding communities have been<br />

benefiting from these resources.<br />

FREDDY MOKGABUDI<br />

SCHOOL PROJECT<br />

The learners of Freddy Mokgabudi<br />

School at Jane Furse in Limpopo were<br />

once taught in shacks, with no ablution<br />

facilities. All that has changed since<br />

the school received a cash injection of<br />

R600 000 from the BBDT and R400 000<br />

provided by the Samancor Foundation for<br />

the construction of eight new classrooms,<br />

fencing and water storage facilities. A<br />

committed labour force drawn from the<br />

local community was responsible for the<br />

construction work.<br />

The BBDT was instrumental in the<br />

establishment of Education Development<br />

Trusts in seven of South Africa’s nine<br />

provinces. The Freddy Mokgabudi School<br />

Project is another example of the delivery<br />

of one of the provincial Education<br />

Development Trusts, through which it<br />

was implemented.<br />

These Trusts have succeeded in mobilising resources by forging partnerships with private sector stakeholders. The Education<br />

Development Trusts are models that can be replicated by other government departments.<br />

7


GOVERNMENT INITIATIVES<br />

TECHNOLOGY FOR WOMEN IN BUSINESS (TWIB)<br />

TWIB is a national programme that facilitates access to and recognition for women in science and technology. In 2002, the BBDT<br />

sponsored the TWIB conference in Durban.<br />

The conference targets existing and aspiring businesswomen in order to accelerate business growth through partnerships,<br />

education, training and mentoring. The strategic objectives of the TWIB programme are to:<br />

• Provide women-owned Small Medium Micro Enterprises (SMMEs) with access to a science and technology support base to help<br />

them become innovative, effective and profitable<br />

• Encourage and influence young women and girls to choose careers in science and technology<br />

• Give recognition to institutions that support women in business<br />

• Promote cooperation between SMMEs, large businesses, parastatals and science councils<br />

• Promote public and private sector support to SMMEs owned and/or led by women<br />

The project is in line with <strong>BHP</strong> Billiton’s Health, Safety, Environment and Community (HSEC) management standards in that it is aimed<br />

at capacity building for women, particularly black women, who were previously marginalised. This project helps to bring women into<br />

full participation in the mainstream economy and, since science and technology are the backbone of all <strong>BHP</strong> Billiton operations, this<br />

project, through its strategic objectives of influencing women to pursue studies and careers in science and technology, also helps to<br />

expand the future skills base for the company.<br />

TWIB is championed by the honourable ministers Phumzile Mlambo-Ngcuka, of the Department of Minerals and Energy (DME), and<br />

Lindiwe Hendricks of the Department of Trade and Industry (DTI). Women of the Ministers’ Forum are also patrons of the TWIB projects.<br />

WSSD ESSAY AND ART CHALLENGE<br />

Art competition winner, Jade Changepar<br />

As part of a multi-faceted R500 000 campaign in the education sector<br />

to ensure that the World Summit on Sustainable Development (WSSD)<br />

would have a lasting impact on young people’s lives, the Department<br />

of Environmental Affairs and Tourism, with support from the BBDT,<br />

conducted an exciting art and essay challenge on a national scale.<br />

The aim of the campaign was not only to create awareness about the<br />

summit, but also to galvanise participation from learners, educators and<br />

parents.<br />

The essay challenge targeted grade 9 learners, and was called How<br />

Does My Career Contribute to Sustainable Development? The winner<br />

of the first prize, Mfundo Malangeni, is a learner at the Centre for Science<br />

and Technology in Mitchells Plain. He received a R100 000 tertiary<br />

education bursary. The second and third prizes were R50 000 and R25 000<br />

respectively.<br />

In the art component of the competition, the nation’s 10-year-old<br />

learners were asked to present their visual interpretation of sustainable<br />

development in a challenge entitled The World Through My Eyes.<br />

10-year-olds were targeted because they were born at the time of the<br />

last World Summit, and their interpretations would go far in illustrating<br />

what the world has achieved in the last decade in educating people and<br />

what it has put in place for sustainable development to be realised. The<br />

prizes ranged from R5 000 to R15 000 and each winner’s school received<br />

a computer.<br />

8


THE URBAN GREENING FUND (UGF)<br />

In the past 12 years, Food & Trees for Africa (FTFA) has distributed over 1,5 million<br />

trees to disadvantaged communities in barren and degraded areas of the country.<br />

FTFA’s main activities are permaculture, urban greening and environmental awareness<br />

and education.<br />

The UGF was established in 2001, after FTFA asked the Department of Water and<br />

Forestry Affairs (DWAF) to respond to the increasing demand for help to “green”<br />

urban areas. DWAF made R1,2 million available to set up the UGF. In 2001, the BBDT<br />

contributed R100 000 to the fund.<br />

The UGF helps NGOs and Community Based Organisations (CBOs) in cross-sectoral<br />

partnerships to implement urban greening projects. It also undertakes research into<br />

the processes of urban greening.<br />

BBDT EMTHONJENI PERMACULTURE PROJECT<br />

The permaculture Project at Emthonjeni Youth Correctional Facilities in Baviaanspoort,<br />

outside Tshwane, should have long-term impact on the wellbeing and morale of the<br />

people in the prison.<br />

Before this Project was introduced, the diet at Emthonjeni was largely limited to<br />

pork and cabbage, resulting in malnutrition among inmates and staff. The prevalence<br />

of HIV & AIDS in prisons necessitates a good, nutritious diet that can boost the immune<br />

systems of HIV positive inmates as much as possible.<br />

After an appeal by Emthonjeni to the UGF, the R100 000 made available by the<br />

BBDT was utilised to start the Project to improve this situation and to provide skills<br />

training for the young inmates.<br />

The 30 participants were each allocated a piece of land on which to grow<br />

vegetables and fruit. They are also developing flower and herb beds and a mini park.<br />

In time they will showcase their permaculture model, as well as simple techniques of<br />

propagation and companion planting, as an appropriate technology to train others. The<br />

Project has been so successful that the prison has allocated more land to extend it, and<br />

the youths have created beds and contributed to the landscaping of the prison gardens.<br />

The Project has the potential to improve the diet and wellbeing at Emthonjeni,<br />

boost morale and create a sense of civic pride among the young inmates. The<br />

vegetables yielded by the Project are being sold, donated to HIV homes and used by the<br />

prison as part of a healthy diet. Through the Project, inmates learn new skills that they<br />

can apply once they have left the facility.<br />

This Project serves as an example that can be replicated to develop awareness<br />

among the entire prison community of the benefits of greening, food security and<br />

sustainable natural resource use.<br />

9


HIV<br />

&<br />

AIDS<br />

KHULISA PROGRAMME<br />

The Khulisa Programme has an extraordinary impact on all<br />

who participate in it.<br />

Khulisa, managed by the social entrepreneurial company Corrective Action Holdings,<br />

combines storytelling and life skills activities to restore self-respect and a sense of<br />

responsibility among young people at risk and in conflict with the law. Its ultimate aim<br />

is to foster crime reduction and prevention in this country.<br />

In 2000, the Munsieville Assertive Youth Group participated in a 13-week Khulisa<br />

Programme, facilitated by Dr Johann Broodryk, founder of the Ubuntu School of<br />

Philosophy.<br />

Phase ONE was aimed at boosting self-respect and social responsibility among<br />

participants. Phase TWO was an income-generating entrepreneurial training<br />

programme entitled Walking My Path. This was primarily a self-guided process with<br />

weekly facilitated group discussions. Two of the outcomes were the establishment of<br />

a community based website, and a youth co-operative to buy essential items direct<br />

from manufacturers at below cost price, for sale to members of the community. Other<br />

income-generating schemes were also initiated.<br />

Later on, the Programme was sponsored by the Department of Social Services to<br />

hold a goodwill campaign during which cultural programmes were taken to youth at<br />

risk and in conflict with the law, as well as to the frail and the aged.<br />

With R302 000 funding from the BBDT, 30 juvenile inmates participated in the<br />

first 12-month Khulisa Programme at Krugersdorp Juvenile Prison in 2001. The aim<br />

was to create a process of change, self-awareness and self-sustainability to facilitate<br />

participants’ reintegration into the community on their release.<br />

Several members of the Munsieville Assertive Youth Group were involved in this<br />

Programme. It included AIDS awareness training and a simulated business programme.<br />

An organic farming project, designed to provide prisoners with an opportunity to enter<br />

the labour market successfully on their release, was run in partnership with a local<br />

NGO.<br />

At the end of the Programme, participants became facilitators, each<br />

working with a group of five prisoners in the re-introduction of the Khulisa<br />

Programme the following year.<br />

After the remarkable success of the same Programme at Leeuwkop<br />

Prison, Corrective Action Holdings established a reintegration centre,<br />

dedicated to the rehabilitation and reintegration of young offenders. A<br />

chain of such facilities will eventually be created across the country.<br />

The philosophy of Khulisa is that the majority of juvenile offenders<br />

can only be taken out of criminal activity by rehabilitation combined with<br />

reintegration. Given the facilities, an estimated 80% success rate can be<br />

produced, compared with the system’s current 80% failure rate. Community<br />

support work involved will also contribute to poverty alleviation and therefore<br />

crime reduction.<br />

A Khulisa recruitment unit has been established, specifically for<br />

identifying income-generating opportunities for offenders, during and after<br />

their incarceration. This joint initiative by Corrective Action Holdings and<br />

a recruitment agency will provide a specialist service to facilitate the<br />

placement of ex-prisoners.<br />

10


KOTULONG<br />

COMMUNITY<br />

CENTRE PROJECT<br />

The Kotulong Project has<br />

seen the conversion of<br />

rudimentary, single-sex<br />

dormitories that once<br />

housed migrant workers<br />

into a vibrant community<br />

development centre.<br />

After restructuring at Metalloys (a<br />

division of Samancor Manganese<br />

which is part of <strong>BHP</strong> Billiton) in 2000,<br />

it was decided that an initiative to<br />

facilitate community empowerment<br />

and upliftment was needed.<br />

The community was mobilised to<br />

identify their needs, and a feasibility<br />

study was conducted. Government<br />

expressed the need to establish a<br />

development centre, due to high<br />

unemployment and the lack of skills<br />

within local communities.<br />

The conversion of the hostels into<br />

a multipurpose community centre<br />

started in earnest in February 2003.<br />

The aim of the Centre is to add quality<br />

to the lives of people who are povertystricken,<br />

unemployed, abused and<br />

affected and infected by HIV & AIDS,<br />

by providing support, encouragement<br />

and development opportunities.<br />

The facility, funded by the BBDT<br />

for just under R7 million, will include<br />

a hospice for terminally ill patients,<br />

residential units for orphans and<br />

vulnerable children, a central kitchen<br />

and dining/multipurpose hall, a<br />

resource library and administration<br />

and service facilities. There will also<br />

be sport and recreation areas and<br />

permaculture gardens.<br />

Different partners, including<br />

government and other stakeholders,<br />

visited the Centre while the<br />

conversion was taking place and were<br />

all excited with the model.<br />

11


JOB CREATION<br />

LITTLE ELEPHANT / INDLOVU<br />

ENCANE PROJECT<br />

The Little Elephant / Indlovu Encane Arts and Crafts Market<br />

near the Midway Inn in Middelburg, Mpumalanga, aims to<br />

create 300 or more job opportunities in the tourism sector.<br />

The market currently consists of 15 thatched stalls where<br />

entrepreneurs sell arts and crafts. Nine more stalls will be built<br />

when more funds become available.<br />

An Ndebele hut at the market is also used as a shop by<br />

entrepreneurs. Tsonga, Bapedi and Zulu huts will also be built<br />

in the future. The market also boasts a pottery studio and<br />

workshops. A sunken amphitheatre for cultural performances is<br />

being built.<br />

More than 160 crafters sell their crafts through the Project.<br />

Entrepreneurs form co-operatives, so that a number of peoples’<br />

work can be sold through each stall. A group of 10 cultural<br />

performers entertain visiting tourists.<br />

Beneficiaries of the Project receive extensive training<br />

in fields such as literacy, business skills, marketing and<br />

quality control and are also helped to make their businesses<br />

sustainable.<br />

To date, the Project has been funded primarily by<br />

Middelburg Ferrochrome, the Samancor Foundation and<br />

Ingwe Collieries Limited, all part of <strong>BHP</strong> Billiton, as well as<br />

the government’s Poverty Alleviation Programme through the<br />

Department of Arts and Culture.<br />

12


RIETSPRUIT SOCIAL PLAN<br />

Ingwe Collieries Limited has embarked on a social plan strategy<br />

for mining operations that are closing down due to depleted<br />

reserves. When operations at Rietspruit Mine Services ceased<br />

in 2002, all stakeholders collaborated to identify a number of<br />

projects to ensure continued economic activity.<br />

The Zisize Mini Farming Project was identified as one of<br />

the projects that will assist the Rietspruit community. This<br />

is a partnership between Ingwe, the Provincial Department<br />

of Agriculture, Emalahleni Local Municipal Council and the<br />

community.<br />

The Project has generated employment for 32 people<br />

on land donated by the mine. Cabbage, spinach, tomatoes,<br />

beetroot, onions, green peppers and lettuce are being grown.<br />

A market has been secured from a local chain supermarket,<br />

community shops and produce markets in the neighbouring<br />

towns.<br />

The success of the Project has generated some interest from<br />

the neighbouring farms, other mining houses and the Provincial<br />

Department of Agriculture, Conservation and Environment. The<br />

local minister of this department has visited the Project and<br />

was enthusiastic about its progress. A few more hectares have<br />

been donated to expand the Project, which will create further<br />

employment opportunities.<br />

Another initiative in the Rietspruit mining community is Sizana<br />

Beads and Baskets. Ingwe donated a total of R193 000 towards<br />

the Project, which saw 40 people trained in the manufacture of<br />

upmarket beadwork and wire baskets.<br />

CADET SCHEME<br />

Job creation is one of the most critical issues facing South Africa today. If we do not face up to the challenge of creating more jobs,<br />

the unemployment crisis in this country can only accelerate in the years to come.<br />

The BBDT Cadet Scheme was established in 1998 to assist the many young graduates who face unemployment due to lack of<br />

experience.<br />

Initially, graduates were only placed within <strong>BHP</strong> Billiton’s operating companies. Now, while they are still contracted to the BBDT,<br />

graduates are able to receive on-the-job experience with various other organisations that have joined the Scheme. They are free to<br />

leave the Scheme when they find alternative employment.<br />

Through participating in the Scheme, many disadvantaged people have found full-time employment. Future employers have<br />

the assurance that they will be appointing graduates who have acquired practical skills to cope with the day-to-day realities of the<br />

workplace.<br />

13


DOWNSTREAM ALUMINIUM PILOT<br />

PROJECT (DAPP)<br />

DAPP, a new, combined initiative of <strong>BHP</strong> Billiton Aluminium<br />

SA and the Zululand Chamber of Business Foundation (ZCBF),<br />

shows that downstream industries capable of manufacturing<br />

products that are currently imported, can be a reality in South<br />

Africa.<br />

Since Phase ONE of DAPP began in July 2002, the Project<br />

has grown into an operational production and training facility,<br />

where mould making, casting and fettling take place daily.<br />

Phase TWO will provide incubator facilities, where trainees<br />

from Phase ONE who show real entrepreneurship potential will<br />

be able to access equipment and resources as an important<br />

part of their growth towards independence.<br />

The ultimate intention is to establish a cluster of SMMEs,<br />

which will produce items for the local and international<br />

markets using primary aluminium. Participants will attend<br />

entrepreneurship training with a recognised training provider.<br />

A common foundry will service the clusters.<br />

16 participants commenced their training in November 2002. They were soon confidently casting and finishing products,<br />

complying with all relevant safety and production requirements. Their training has included practical and theoretical facets, as well<br />

as auxiliary activities such as aluminium welding, technical draughting, and the use of hand tools. Their business acumen has been<br />

upgraded through extensive training in life and business skills and entrepreneurship.<br />

Soon Phase TWO, which takes place in partnership with the DTI, will be under way. The DTI has committed R12,5 million to the<br />

Project over the next five years.<br />

Planning has commenced to equip the incubator and customise a building to be made available to the Project in<br />

April 2004. Some equipment has already been purchased and used extensively in the foundry.<br />

Apart from a contribution of R380 000 from the KwaZulu-Natal Department of Economic Affairs and<br />

Tourism, the R3 million establishment cost of Phase ONE were borne by <strong>BHP</strong> Billiton’s Bayside and Hillside<br />

Aluminium Smelters. In addition, company employees have provided extensive managerial input,<br />

technical assistance, risk assessment and advice in the design of the Project. <strong>BHP</strong> Billiton Aluminium SA<br />

representatives continue to serve as members of the Project steering and management committees.<br />

A major achievement to date is that trainees have themselves been adding value to the Project by<br />

producing marketable products, as intended. Not only does this constitute downstream beneficiation of<br />

Bayside and Hillside Aluminium Smelter’s primary product, but the sale of these products could ensure<br />

the income generation necessary for the long-term sustainability of the Project. The Project also has the<br />

exciting potential to tap into big international markets, having an impact on the flow of foreign capital into<br />

the country.<br />

Through the Council for Science Industries Research (CSIR), and with the assistance of <strong>BHP</strong> Billiton<br />

Aluminium SA, aluminium foundry equipment has been developed that can be commissioned using<br />

different forms of energy. This equipment is applicable specifically to rural situations. Three-phase,<br />

single-phase electricity or gas power can be used to drive a small furnace, sand mixer and<br />

buffing machine, which will enable a trainee to operate a small foundry from any premises.<br />

Under constant guidance and mentorship of the foundry, these operators will then become<br />

independent. The first of these rural facilities was launched in July 2003 in Nseleni, near<br />

Richards Bay.<br />

14


VICTIM EMPOWERMENT<br />

BEE COURTWISE PROGRAMME<br />

The BBDT, in partnership with the NGO, Bee<br />

Courtwise, is committed to an important initiative<br />

aimed at reversing the negative trends of violence<br />

against women and children in this country. The<br />

Programme aims to create at least 20 court preparation<br />

programmes housed in courts specialising in sexual offences.<br />

The Bee Courtwise Programme is funded by the BBDT and run in partnership with the Department of Social Development and the<br />

Department of Justice. It aims to contribute towards victim empowerment initiatives through training and capacity building, research<br />

and advocacy and to alleviate the effects of violence through the provision of trauma counselling and management to adult and child<br />

survivors.<br />

The Programme empowers survivors to tell their story when appearing in court, at the same time as gaining a clearer<br />

understanding of procedures within the court environment.<br />

Survivors participating in the Programme are less likely to suffer from post-traumatic stress disorder. Participation also prevents<br />

victims from themselves later becoming perpetrators in an ongoing cycle of abuse. Thanks to this Programme, there has also been a<br />

dramatic increase in successful prosecution rates over the past few years.<br />

All services are rendered free of charge. Various professionals such as social workers, prosecutors, health workers, police services<br />

personnel, pastoral workers and volunteers are all specially trained to prepare witnesses for court. The Programme runs on a monthly<br />

block-booking basis, which includes legal personnel, social workers and voluntary counsellors. It also caters for emergency court<br />

preparation on a daily basis.<br />

A specially developed kit, containing puppets and other useful materials, is used by the intermediary in the special courtroom<br />

while a child testifies. The kit is a facilitating tool to identify a child’s cognitive, social, emotional, memory and credibility skills.<br />

This is vital to ensure that the child testifies in such a way that the accused can be prosecuted. Use of the kit also reduces secondary<br />

trauma by making the criminal justice system more accessible and less threatening.<br />

The Programme also has an outreach aspect, so that child survivors are more easily integrated back into their families and society<br />

at large.<br />

Another significant aspect of the Programme is the juvenile diversion programme, run at schools and government institutions.<br />

Children between nine and 14 years of age are sent to participate in camp diversion programmes where conflict resolution and teambuilding<br />

are fostered. A specialised camp for abused children is run once a year, with the aim of providing counselling, restoring<br />

participants’ trust and dignity and rebuilding their self-esteem.<br />

A peer education shuttle programme that takes place in schools and communities is used to educate children about prevention of<br />

child sexual abuse, HIV & AIDS and teenage pregnancy.<br />

Notably, the Bee Courtwise Programme<br />

won an award in <strong>BHP</strong> Billiton’s HSEC awards,<br />

an internal programme recognising projects<br />

throughout <strong>BHP</strong> Billiton’s international<br />

concerns, which make a difference in the<br />

community.<br />

15


TERTIARY EDUCATION<br />

INITIATIVES<br />

PROJECT TO ESTABLISH THE<br />

NATIONAL INSTITUTE FOR HIGHER<br />

EDUCATION (NIHE) - NORTHERN CAPE<br />

The establishment of the NIHE in Kimberley is evidence that<br />

private-public sector partnerships can bring about socioeconomic<br />

change, economic empowerment and social<br />

transformation in South Africa.<br />

The partnership between the BBDT and the Northern<br />

Cape government culminated in the establishment of the first<br />

university in post-apartheid South Africa, realised via the BBDT’s<br />

donation of R8 million to the Project.<br />

The NIHE was initiated at a time when the Minister of<br />

Education, Kader Asmal, was calling for the consolidation of<br />

universities around the country. Although the province has had<br />

the best matric exam results in the country for the past two<br />

years, matriculants could not study further in their own region<br />

due to a lack of tertiary institutions in the Northern Cape. A<br />

Premier’s Bursary Fund offered scholars the opportunity to<br />

attend universities in other areas. These factors resulted in a<br />

“migrant student” problem. Once people had left the province<br />

and obtained skills, it was difficult to attract them back, leading<br />

John Raubenheimer, President and CEO of Samancor, Manganese<br />

to a brain drain.<br />

and Professor Kader Asmal, National Minister of Education<br />

Not only does this Project align the Northern Cape with<br />

the overall goals of government, but it also gives the province<br />

a head start in the race to develop similar private-public<br />

partnerships with other vital economic sectors.<br />

The BBDT played a leadership role in the establishment of competent and accountable management and governance structures,<br />

policies and systems that meet the legal requirements for higher education institutions.<br />

There are currently 900 students registered with the NIHE, fully funded by the BBDT. Although the NIHE is not yet registered as<br />

a full university, it has alliances with prominent universities throughout the country, which allow it to offer degree courses in a wide<br />

range of disciplines.<br />

The NIHE is also playing a leading role in the establishment of the Science Foundation at the Southern African Large Telescope<br />

(SALT) project in Sutherland, which will result in the largest single telescope in the Southern Hemisphere. This flagship project aims<br />

to demonstrate that the frontiers of science are not reserved only for the developed world.<br />

16


CIDA CITY CAMPUS<br />

In the 2002 budget speech, President Thabo Mbeki cited CIDA City<br />

Campus as one of the major initiatives effecting real transformation in<br />

South Africa. Over a four-year period, the BBDT is donating R4 million<br />

to CIDA to boost this vital process.<br />

CIDA City Campus is a non-profit higher education institution,<br />

providing free education to historically disadvantaged students.<br />

It is based in the old Investec building in central Johannesburg.<br />

By supporting the project, <strong>BHP</strong> Billiton puts its weight behind the<br />

campaign to regenerate the inner city.<br />

Of the 240 students who will benefit from the grant directly,<br />

120 will be drawn from the communities surrounding <strong>BHP</strong> Billiton’s<br />

operations, in support of the new Mveledzandivho programme,<br />

which develops schools near the company’s mines and works.<br />

CIDA City Campus offers one of the leading business degrees<br />

in South Africa. <strong>BHP</strong> Billiton’s involvement at CIDA will enhance the<br />

BBDT Cadet Scheme (read more about this under the Job Creation<br />

section), by providing a bigger pool of suitably educated candidates.<br />

It also means that <strong>BHP</strong> Billiton will be able to hand-pick employees<br />

from graduates that it has trained directly, who will be well qualified<br />

in appropriate areas including IT, finance, HR, leadership, operations<br />

management and marketing.<br />

A further bonus is that the CIDA project will directly benefit the community. Firstly, <strong>BHP</strong> Billiton will continue training<br />

entrepreneurs living in areas near its operations, to whom non-core services can be outsourced. Here, CIDA students can provide<br />

support through year-long mentoring programmes and specific products. Secondly, when CIDA students return home during<br />

the holidays, they will offer training in areas especially suited to the needs of their communities, such as HIV & AIDS awareness,<br />

sustainable development and entrepreneurship skills.<br />

SEDIBA PROJECT<br />

Lulu Khumalo, manager of communication and education for<br />

the BBDT and Professor JJA Smit, director of the Sediba Project<br />

Sediba is an innovative project aimed at upgrading the skills of<br />

historically disadvantaged maths and physical science educators<br />

in formal and informal educators’ training programmes. So<br />

far, about 120 000 learners in the North West province have<br />

benefited from their exposure to educators trained under<br />

Sediba.<br />

Sediba is based in the School of Science, Mathematics<br />

and Technology Education at Potchefstroom University. Since<br />

its inception in January 1996, the programmes have been<br />

successfully completed by 306 educators.<br />

The study programme runs part-time over two years. While<br />

training takes place in a high-tech environment, the courses<br />

equip educators to teach in schools where modern facilities are<br />

not available.<br />

In addition to this formal training, Sediba sends out a regular<br />

newsletter to schools and provides science and mathematics<br />

workshops for non-Sediba educators and subject advisors.<br />

Visits to the Sediba science garden, the computer centre and<br />

laboratories by science and mathematics learners are also<br />

arranged.<br />

Sediba is funded by the BBDT, in partnership with other<br />

businesses.<br />

17


FINANCIAL SUMMARY<br />

The <strong>BHP</strong> Billiton Development Trust (BBDT) implements, co-ordinates and manages the<br />

sustainable development initiatives of <strong>BHP</strong> Billiton and <strong>BHP</strong> Billiton companies and operations<br />

such as Samancor Chrome, Samancor Manganese, Ingwe Coal and <strong>BHP</strong> Billiton Aluminium,<br />

which participate in the Trust. <strong>BHP</strong> Billiton allocates 1% of pre-tax profits to corporate<br />

responsibility projects, based on a three-year rolling average. The actual expenditure on<br />

projects for the year ended June 2003 was R38.4 million and commitments amounted to an<br />

extra R31.6 million. Of this R24.1 million will be spent in the new financial year.<br />

Total expenditure by the BBDT on CSI projects for the year ended June 2003 amounted to R38.4 million and includes R1.7 million from<br />

the Samancor Foundation. The funds were applied on the four main expenditure themes, namely Education and Training, Capacity<br />

Building, Socio-Economic Development and Health Care. The allocation of funds is depicted on the graph below.<br />

18


Commitments on approved projects at the end of the year was R31.6 million of which R24.1 million will<br />

be spent in the new financial year. A comparison of expenditure by theme for the two financial years is<br />

shown below.<br />

19


CONTACTS<br />

<strong>BHP</strong> Billiton Development Trust<br />

Head Office<br />

Lulu Khumalo<br />

Telephone 011 376 2185<br />

Facsimile 011 376 2458<br />

Email lulu.khumalo@bhpbilliton.com<br />

<strong>BHP</strong> Billiton Aluminium SA CSI<br />

Bongani Mqaise<br />

Telephone 035 999 2090<br />

Facsimile 035 999 2710<br />

Email bongani.mqaise@bhpbilliton.com<br />

Ingwe Collieries Limited CSI<br />

Christian Peter<br />

Telephone 011 376 2122<br />

Facsimile 011 376 2458<br />

Email christian.peter@bhpbilliton.com<br />

Samancor Foundation<br />

Patrick Mabelane<br />

Telephone 011 376 3108<br />

Facsimile 011 376 2458<br />

Email patrick.mabelane@bhpbilliton.com<br />

Design & illustration: Ellen Papciak-Rose, Soweto Spaza cc, www.ellenpapciakrose.com<br />

Photography: Alex Daligand Photography, Telephone 011 442 8619<br />

Printing: Lebone Printers, Telephone 011 493 7921<br />

♻ Printed on recycled paper<br />

20


trust.bhpbilliton.com<br />

<strong>BHP</strong> Billiton Development Trust<br />

6th floor, 6 Hollard Street, Johannesburg, South Africa<br />

PO Box 61820, Marshalltown, 2107, South Africa<br />

Telephone +27 11 376 2185<br />

Facsimile +27 11 376 2458<br />

Email lulu.khumalo@bhpbilliton.com

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