Corporate Responsibility Report 2008 - Impala Platinum

Corporate Responsibility Report 2008

Report profileAnnual ReportCorporateResponsibility ReportMineral Resourceand Mineral ReserveStatementOnline reports – at www.implats.co.zaThis Corporate Responsibility Report is for the2008 financial year, from 1 July 2007 to 30 June2008, although both historical and forwardlookingdata are provided for informationpurposes. The report is produced on an annualbasis and the report for the prior period (FY2007)is available on the website. Information in thisreport is with respect to FY2008 unless otherwisestated and information is provided in SouthAfrican rand. Where dollar amounts areprovided, this is for the sake of convenience andrefers to US dollars ($).For the purpose of corporate responsibilityreporting, the company has provided statistics forthose operations over which it has managementcontrol or significant influence. Where relevant,information relating to operations in which thecompany has an interest is provided. There wereno significant changes in the organisationalstructure, during the year, other than the sale ofImplats’ stake in Aquarius Platinum Limited. (Referto the Annual Report for further details.)The production of this report has been undertakenin line with the Global Reporting Initiative’s (GRI)G3 guidelines. An index indicating which GRIindicators have been reported on, and whereinformation may be found, is available on page77. GRI’s reporting principles for defining thereport content, quality and boundary setting havebeen used as guidelines.Implats has during the year indicated itssubscription to the principles of the UN GlobalCompact (UNGC) and has applied to becomea signatory. An indication of its reporting in linewith the UNGC may be found on page 81.Selected indicators have been independentlyassured by a third party assurance provider. Theindicators selected and the independentstatement of assurance may be found on page14. In accordance with the GRI guidelines,Implats has declared a B+ level of reporting.In addition to this report, the company hasproduced:• The annual report, which includes theaudited annual financial statements. This isalso available in a web-based format.• A report on Mineral Resources and MineralReserves.• A web-based corporate responsibility reportwhich, in addition to the informationprovided in this printed document, includesseveral case studies illustrating the company’sapproach to sustainability reporting.Copies of the other documents may be found on thecompany’s website (www.implats.co.za) orobtained from the contact person listed below.Responsible person:The person responsible for the compilation of thisreport and to whom all queries should beaddressed is:Cindy MogotsiSustainable Development Manager,Group ReportingTel: +27 11 731 9074Email: Cindy.Mogotsi@implats.co.zaCorporate Responsibility Report 08

ContentsVision and values 2Key features for the year 3Corporate profile 4Our sustainable development footprint 6Message from the CEO, David Brown 8Engaging with stakeholders 12Independent statement of assurance 14Economic performance 16Social performance 26Human capital 28Human rights 34Safety and health 36HIV/AIDS 45Socio-economic development 48Product responsibility 57Environmental performance 58Reporting in line with GRI 76Application level 76Index 77Mining Charter compliance 79Reporting in line with the UN Global Compact 81Glossary of terms and acronyms 82Contact details and administration 84Corporate Responsibility Report 081

Vision and valuesImplats’ visionTo be the world’s best platinum producing company, delivering superior returnsto shareholders relative to our peersImplats’ values• Safeguarding the health and safety of our employees, and caring for theenvironment in which we operate• Acting with integrity and openness in all that we do and fostering a workplacein which honest and open communication thrives• Promoting and rewarding teamwork, innovation, continuous improvement andthe application of best practice by being a responsible employer, developingpeople to the best of their abilities and fostering a culture of mutual respectamong employees• Being accountable and responsible for our actions as a company and asindividuals• Being a good corporate citizen in the communities in which we live and workMarula2 Corporate Responsibility Report 08

Key features of the yearHighlights of the year• Solid operational performance that delivered sound economic benefits• Significant investment in capital development with good progress achievedtoward growth goals• Extensive job creation, directly and indirectly• Further improvement in safety performance statistics• Record number of employees on ART• Mineral rights conversions for Marula, Leeuwkop and Impala (post year-end) achieved,signifying acceptance by the DME of the company’s Social and Labour Plans andEnvironmental Management Plans for these operations• Good progress on transformation – HDSA and women in mining statistics improved• Appointment of a group safety, health and environmental executive, a positioncreated for the first time• Admission again into the JSE SRI index and submission of the group’s response to theCarbon Disclosure Project• Establishment of the Impala Bafokeng Trust (IBT), with the first joint projectshaving been funded during the yearDisappointments• Regrettably 12 employees lost their lives• Worsening socio-political situation in Zimbabwe, delaying further investment andexpansion, hampering operational performance and causing hardship for employees• Significant power shortages which resulted, in the short term, in lost production and will,in the longer term, delay expansions• Delays in environmental permitting owing to the lack of capacity in regulatory structures• High levels of turnover, exacerbated by artisanal skills shortagesChallenges• Eliminating accidents at work and progressing towards our goal of zero harm• Ongoing implementation of appropriate measures to prevent NIHL and TB• Continued proactive management of HIV and AIDS, and the continued roll-out of ART,to minimise the impact on individuals, the company and the community as a whole• Managing costs in a high inflationary environment• Attainment of all necessary environmental permitsCorporate Responsibility Report 083

Corporate profileImpala Platinum Holdings Limited (Implats), aleading global producer of platinum, produced1.9Moz of platinum (approximately 25% ofglobal supply) and 3.6Moz of platinum groupmetals (PGMs) for the 2008 financial year.Implats’ mining interests are located on the twomost significant known PGM-bearing orebodiesin the world: the Bushveld Complex in SouthAfrica and the Great Dyke in Zimbabwe:• In South Africa, these are located on the westernlimb of the Bushveld Complex (Impala Platinumand the Leeuwkop project) and on the easternlimb (Marula Platinum and Two Rivers Platinum).Impala and Marula are managed by Implats,while the Two Rivers joint venture is operatedby Implats’ partner, African Rainbow Minerals(ARM). Impala Platinum comprises ImpalaRustenburg (mining and smelting operations)and Impala Springs (precious and basemetals refining).• In Zimbabwe, Implats operates ZimplatsHoldings and has a joint venture with AquariusPlatinum in Mimosa Platinum. Zimplats is listedon the Australian Securities Exchange (ASX).Impala Refining Services uses Impala Platinum’sexcess smelting and refining capacity to process theconcentrate and matte produced by the variousmine-to-market operations, as well as materialpurchased from other companies. Toll-refining is alsoundertaken on behalf of other companies. Implats isone of the largest autocatalyst recyclers in the world.Implats has a primary listing on the JSE (IMP) anda secondary listing on the LSE (IPLA). The companymay also be traded via a sponsored level 1 ADRprogramme (IMPUY) in the United States. Thegroup’s head office is located in Johannesburg,South Africa.Namibia2 ZimplatsZimbabweBulawayoHarareMimosa 3MozambiqueBotswana16ImpalaRustenburgLeeuwkopRustenburgJohannesburgPolokwaneImpalaSpringsMarula 4BurgersfortTwo Rivers 57South AfricaDurbanBushveld ComplexThe Great DykeOperations/projectsCape Town4 Corporate Responsibility Report 08

1. Impala (100%)• a 14-shaft mining system, with three newshafts under development• Mineral Processes, which incorporates theconcentrating and smelting plants• Refineries, which houses the base metals andprecious metals refineries• 44 838 employees (including contractors)2. Zimplats (86.9%)• Opencast and underground mines at Ngezi• Selous Metallurgical Complex (SMC)– concentrator and smelter• 5 882 employees (including contractors)3. Mimosa (50%) JV with Aquarius Platinum• Semi-mechanised shallow underground mine• Mill and concentrator plant• 1 796 employees (including contractors)(100% of employees)4. Marula (73%)• Balance of 27% held by BEE interests• Two on-reef decline shafts, Driekop and Clapham,and an off-reef conventional decline• Concentrator• 3 586 employees (including contractors)5. Two Rivers (45%) JV with ARM• Two declineso opencast operationo concentrator• 2 148 employees (including contractors)6. Leeuwkop (74%)• Balance of 26% held by BEE interest• Twin-shaft system to be developed• Concentrator to be constructed7. Impala Refining Services (100%)• Houses Implats’ smelting and refining services• Activities undertaken at both Impala Springs andImpala Rustenburg• Provision of smelting and refining services tomine-to-market producers with which it enters intoofftake agreements, as well as toll-refiningCorporate Responsibility Report 085

Our sustainable development footprintImplats’ operations cover the full spectrum of the PGMs process pipeline, from exploration and developmentto mining, concentrating, smelting, refining and marketing of the end product to customers.The processThe diagram below provides an indication of the processes in which the company is engaged.ImplatsLeeuwkop projectImpalaRefiningServices(IRS)Impala SpringsMimosaMetal sold byImplats or IRS6 Corporate Responsibility Report 08

The metalsImplats is one of the world’s largest producers of PGMs and nickel. Of the PGMs, platinum, palladium andrhodium – the so-called ‘green metals’ – are the most significant.PlatinumPlatinum, a silvery-white metal, is one of the most common and widely used of thePGMs. It is ideally suited to advanced technical applications, being one of the densestand heaviest metals known to man, as well as extremely durable. While very malleableand ductile, platinum also has a very high melting point (1 772°C) and is stable atexceptionally high temperatures. Platinum is primarily used in the jewellery andautomotive industries, with the latter making use of its excellent catalytic properties.PalladiumPalladium, like its sister metal, platinum, has a natural white lustre and is moreabundant than any of the other PGMs. Its most remarkable property is its ability toabsorb enormous amounts of hydrogen at room temperature, making it an efficientand safe medium for the storage of hydrogen and as a purifier. Given its catalyticqualities, it has a vital role in catalytic converters and in air purification equipment.Palladium is most frequently used in alloys or as a catalyst and can be used as asubstitute for platinum in jewellery, electrical contacts and catalysts.RhodiumRhodium is also a silvery-white metal and is a major component of industrial catalyticsystems. Its primary use is in the automotive industry for the reduction of NOx tonitrogen. Rhodium alloyed with other PGMs is also used for furnace windings,thermocouple elements, fibre glass production, electrodes for aircraft spark plugs andlaboratory crucibles.NickelNickel is a hard, silvery-white metal that is highly resistant to corrosion. It is usedextensively in coins and is a vital ingredient in the production of stainless steel. Thestainless steel industry consumes approximately two thirds of nickel supply with thebalance being used either in alloys or for electroplating.Governance and risk managementAn extensive review of the corporate governanceprocess and structures in place within the companymay be found in the Corporate Governancesection of the annual report, and a review of thecompany’s risk management process and identifiedrisk factors may be found in the Risk Managementsection of the Annual Report.Safety, health and environmentIssues relating to safety, health, environment, andHIV/AIDS are considered by operation-basedmanagement, management/union and executivecommittees. A group executive responsible forsafety, health and environment was appointedduring the year. A board committee, the Safety,Health, Environment and Quality (SHEQ) AuditCommittee, has been designated by the board toguide group policies and monitor performance andprogress. This committee meets on a quarterly basisand is chaired by a non-executive director. Furtherinformation on the functioning of this committeemay be found in the Annual Report.TransformationTransformation committees at all South Africanoperations were involved in the formulation of thegroup’s Employment Equity Plan and they monitorprogress on a monthly basis. These committees arebroad-based, comprising employees, unionrepresentatives, BEE partners and management.The Transformation Committee (appointed by theBoard) oversees group policies and practicesrelating to the Mining Charter.Corporate Responsibility Report 087

Message from the CEO, David BrownIn our Corporate Responsibility Report for the 2008 financial year wehave tried to address those broader economic, social and environmentalimpacts that our business has on our employees, our communities and awide range of stakeholders.Having the maxim “One team, one vision, with pride”, we realise thatas company we need to live up to the vision and values we have setourselves and this needs to be visible. Only then can we expect ouremployees to do the same. And we realise too, that our actions willindeed speak louder than words, and that the acceptance and respectof the communities in which we reside needs to be earned.David Brown, CEO, addressing employees at Impala Rustenburg8 Corporate Responsibility Report 08

GRI reportingAs was the case in 2007, this report has beencompiled in line with the GRI G3 guidelines andthis year, for the first time, we have declared aB+ level of reporting, which has been confirmedby our external auditors. This indicates both anincrease in the extent of our reporting, which wasone of our stated objectives, and the fact thatcertain key parameters in this report have againbeen independently assured.We are also very pleased to report that we,as a company, have sought to become asignatory to the UN Global Compact, whoseprinciples we support and report against furtherin this report.Challenges and successesWe had failures and successes during FY2008.These are discussed below.• Twelve people died at our operations duringthe year. While our safety indicators haveimproved, the fact that colleagues lost theirlives is something that all the members of ourteam find unacceptable. We extend oursincere condolences to the families and friendsof those who have died. Our zero harminitiative is founded on the fundamental beliefthat we can and will reach a time when ouroperations are incident free. See thediscussion on safety on page 36.• The energy crisis earlier this year presented asignificant operational challenge. While wehave long been involved in energy efficiencyprogrammes, the sudden and unexpectedinability of the energy utility to meet contractualobligations had a substantial effect on ourbusiness and managing this issue must befactored into our future plans. Our efforts toconserve energy have intensified and we willreport on this further in the year ahead.• Allied to this energy conservation is thedevelopment of our understanding of climatechange and the potential impact of globalwarming. This matter has been considered ata senior level within the group and we havedeveloped a sound baseline from which toboth understand and measure ourperformance in reducing carbon emissions.Again this year we participated in the CarbonDisclosure Project’s global survey.• Another issue that has been of particularconcern during the year has been the skillsshortage in our country as a whole and in themining industry in particular. This has had atremendous impact on skills retention within thecompany and, consequently, on costs. Labourturnover also has had an effect on safety andhealth, as well as productivity and morale. Theskills shortage has not only affected the privatesector – its impact on the public sector hasbeen to delay various regulatory processesand permitting, all to the detriment of theindustry.• An important milestone was reached duringthe year when we were granted our mineralrights conversion for Marula, as well as themining right for the Leeuwkop project. Postyear-end, in August 2008, approval was alsogranted by the DME of Impala’s mining right.This indicated a clear acceptance of our BEEcredentials, our Environmental ManagementPlans (EMPs) and the Social and Labour Plans(SLPs) by the South African Department ofMinerals and Energy (DME).• This was also the first year of operation of theImpala Bafokeng Trust (IBT), which was jointlyestablished by Implats and the Royal BafokengNation as part of our BEE transaction in 2006.The IBT has already established a sound baseand will bring great benefits to theBojanala region. During the year, the ImpalaCommunity Development Trust (ICDT)contributed R42 million towards socioeconomicdevelopment initiatives (includingthe R6 million contribution via the IBT).Corporate Responsibility Report 089

Message from the CEO, David Brown (continued)• The socio-economic situation in Zimbabwecontinues to be of grave concern, not only inthe way that it hampers our business and limitsthe benefits that Zimbabwe as a nation reapsfrom the current buoyancy in the PGMs market,but also in the way in which this has affectedour employees and their communities. Wehave a clear responsibility to our Zimbabweanemployees, not only to provide jobs, but toprovide support in terms of food, security,housing and education. We are doing ourbest to meet these commitments.Corporate responsibilityIn a review such as this one, it is often thenegative that we focus on rather than thepositive.I could say much about the value added bythe group, the provision of jobs to some55 000 people, the corporate social investmentand local economic development initiatives thatreached more than 42 000 beneficiaries andthe ingenuity and innovation that has beenshown by employees in ensuring that we remainthe pre-eminent PGM-producing company.What I will say though is this: we at Implats takeour responsibility to corporate citizenship veryseriously and the matters considered in this reporthave the attention of those at the highest levels ofgovernance in the company. In many of theareas covered we have made great strides incompiling group information for the first time aswe continue to develop and harmonise oursystems. In this regard, we have appointed, forthe first time, a group safety, health andenvironment executive who will co-ordinatematters in a more holistic way.Feedback welcomeI trust that the readers of this report will find theinformation that they are looking for as we haveendeavoured to cover those matters that are mostmaterial to us. We welcome feedback on ourreport and suggestions for ways in which we canimprove it in the future. The contact details forfeedback are on the inside front cover.David BrownChief Executive Officer28 August 200810 Corporate Responsibility Report 08

Impala Rustenburg

Engaging with stakeholdersImplats engages extensively with its stakeholders on a regular and ongoing basis depending on therelationship and the matters on hand. Initial steps have been taken to develop a formal stakeholderengagement programme and to ensure that a more formal and rigorous process of stakeholderidentification and engagement is developed. A stakeholder engagement specialist was appointedduring the year. The table below illustrates some of the company’s engagements with key stakeholdergroups during the year under review.Stakeholders Method of engagement ConsequenceInvestors and Annual report, quarterly and monthly Implats maintains good relationships withshareholders updates, website, fact sheets, annual its shareholders through the regular,roadshows, presentations/one-on-one structured provision of information.conferences.Employees Social economic development Employees are key to Implats’ success.(SED) committee. Health, safety and Attracting, retaining and encouragingenvironment steering committee and employees is thus a vital area of focus.other mine-based committees.One team, one vision, with prideprogramme. Group in-house publications,other brochures, reports, presentations/roadshows and newsletters as required.Trade unions SED programmes, collective bargaining, Management and unions work togetherand operational forums and ongoing closely in the day to day operation of thecommunication, particularly in respect company and in respect of longer termof safety and health, and transformation. objectives. While the relationship recognisesthat each has its own agenda, there is aclear recognition of common goals andinterdependence.Customers Implats has a representative office in Stable long term relationships have beenTokyo. Relationships are maintained built up over a period of time for thewith key long-term customers through development and maintenance of longpersonal visits, quality control, and term contracts.regular meetings.Suppliers Suppliers’ forums, equipment forums, Implats is fully committed to the transformationpresentations and workshops; and of its supplier base and in the developmentmentorship and business training for of local (especially broad-based blacksmall, medium and micro enterprises economic empowerment) SMMEs and(SMMEs) and co-operatives.co-operatives.Producers Steelpoort Valley Producers’ Forum, Implats co-operates with other producers inRustenburg Producers’ Forum;developing strategies in respect of commonChambers of Mines in South Africa issues.and Zimbabwe, responses to nationalissues relating to legislative and policyinteractions. South African MiningDevelopment Association (SAMDA)12 Corporate Responsibility Report 08

Stakeholders Method of engagement ConsequenceBEE partners Board meetings, Community Trusts, Implats engages actively with its BEETransformation Committee: Group partners to ensure their active involvementlocal and steering committees. Partners in the company and in the transformationare RBN, Tubatse, Bakwenaprocess.Ba Mogopa and Mmakau.Communities, North West Air Pollution Control Forum, Implats promotes active engagement ofNGOs, CBOs community liaison forums, Marula communities and welcomes interaction on aCommunity Trust, Marula Working regular or ad hoc basis.Committee, public open days on mines,Impala Bafokeng Trust, environmentalhotline, community liaison offices,publications, Envirotalk, relevantmine-based committees, e.g. water,waste etc. SHE reports; website andChamber of Mines Environmental Forum.Benchmarks Foundation.Government Close liaison with, and reporting to, Relationships have been developed withrelevant affected governmentgovernment at national regional and localdepartments, district municipalities levels.and local municipalities.Traditional leaders Magoshi/Dikgosi (Limpopo and A working relationship exists with traditionalNorth West provinces).authorities. Attention is being paid tobuilding structured and more frequentinteractions at high level to match the workbeing done at operational level.Media Electronic; print; radio and television. Implats works closely with mediastakeholders.MarulaCorporate Responsibility Report 0813

Independent statement of assuranceTo the Board and stakeholders ofImplats:Implats commissioned Trialogue Assurance Services(‘Trialogue’) to provide independent assurance overthe content of this 2008 Corporate ResponsibilityReport, the ‘Report’ (covering the period 1 July2007 to 30 June 2008). Our assurance teamcomprised individuals with experience inenvironmental and social performancemeasurement. The team has collectively undertakenover 40 assurance engagements in variouscountries over the past nine years.IndependenceTrialogue was not responsible for the preparation ofany part of this Report and has not undertaken anycommissions for Implats in the reporting period thatwould compromise our independence. Trialogue’sresponsibility in performing its assurance activities isto the management of Implats alone and inaccordance with the terms of reference agreedwith them. The assurance team comprisedindividuals with experience in environmental andsocial performance measurement.Assurance objectivesThe objectives of the assurance process were to:• provide stakeholders of Implats with anindependent, ‘Limited Assurance’, opinion onthe consistency, completeness and accuracy ofthe sustainability performance informationpresented in the Report; and• determine the degree to which the Report isconsistent with the reporting requirements ofthe Global Reporting Initiative’s (GRI) G3Guidelines (hereafter, ‘GRI G3 Guidelines’).Scope of work performedSustainability performance indicatorsThe environmental, safety and social performanceindicators selected for assurance were determinedjointly with Implats, following a review of Implats’key sustainability risks, the identification ofindicators considered relevant to stakeholders andmanagement, as well as our experience of the risksassociated with reporting sustainabilityperformance and the systems and processes inplace to mitigate those risks.The indicators subject to review were:Energy consumption; water consumption; directcarbon dioxide (CO 2 ) emissions; indirect CO 2emissions; sulphur dioxide (SO 2 ) emissions;number of new cases of Noise Induced HearingLoss (NIHL); Lost Time Injury Frequency Rate(LTIFR); Fatality Injury Frequency Rate (FIFR);number of employees on Antiretroviral Treatment(ART); employee Voluntary Counselling andTesting (VCT) uptake; number of new cases ofTuberculosis (TB); number of employees on AdultBasic Education and Training (ABET); HistoricallyDisadvantaged South African (HDSA) personsemployed at a management level; number ofwomen in mining; HDSA procurement as apercentage of total procurement; and SocioeconomicDevelopment (SED) spend.GRI G3 complianceThe Report was reviewed to determine thedegree to which it was consistent with the GRIG3 guidelines.Assurance methodologySustainability performance indicatorsThe process used in arriving at this assurancestatement is based on the GRI’s G3 guidanceand other best practice in sustainability reportingassurance. Our approach to assurance includedthe following:• a review of Implats’ measurement and reportingprocedures, background documentation anddata collection procedures;• a review of the reported data for anysignificant anomalies;• a series of interviews with key personnelresponsible for collating and writing variousparts of the Report in order to ensure selectedclaims were reported and substantiated; and• the examination of the aggregation and/orderivation of, and underlying evidence for, theindicators under review and statements madein the Report.GRI complianceIn determining the GRI G3 ‘Application Level’ ofthe Report, we performed the following exercises:• a review of the process used to define thecontent of the Report by looking at materialityof issues included in the Report, stakeholder14 Corporate Responsibility Report 08

engagement response to stakeholder issuesidentified, determination of sustainabilitycontext and coverage of material issues;• a review of the approach of management toaddressing topics discussed in the Report; and• a confirmation that the requisite number ofperformance indicators had been covered inthe Report.FindingsSustainability performance indicatorsIn general, the company’s environmental andsocial reporting processes are adequate.However, it was found that:• while the application of corporate reportingdefinitions and criteria has improved over thereporting period, some sites were still applyinginconsistent approaches to data managementwhich required rectification prior to reporting; and• although formal periodic, internal verificationprocesses are being instituted across theGroup, some sites still require improved on-sitemonitoring systems to allow for the identificationand resolution of data errors or anomalies.GRI complianceBased on our review of the Report, as well as theprocesses employed to collect and collateinformation reported herein, it is our assertion thatthis Report meets the GRI G3’s requirements forApplication Level B. However, it was found that:• stakeholder engagement continues to requirefurther improvement. While some stakeholderengagement occurs in the active sense forthose issues identified as ‘most material’, themajority of stakeholders appear to only bepassively engaged through newsletters andmedia statements; and• the reporting of performance against some GRIG3 indicators continues to require further detailin disclosure.OpinionSustainability performance indicatorsIn all cases where data errors were identifiedduring our assessment, Implats initiated immediateremedial efforts to address our concerns prior tofinalising the data reviewed. As a result, webelieve that the environmental, safety and socialdata in the Report gives a fair representation ofImplats’ environmental and safety performance.GRI complianceAlthough the quality or quantity of data of someGRI G3 indicators can continue to be improved,and based on Trialogue’s assurance review, thisReport appears to meet the GRI G3’srequirements for Application Level B.RecommendationsSustainability performance indicators• Prior to the next reporting cycle, ensure that alloperations are providing data for externalreporting according to guidance provided bythe Corporate Office;• Continue to improve formal procedures forgathering, collating and reporting allquantitative data that appears in the report,including an internal control process;• Initiate no less than a semi-annual internalreview process to test the accuracy,consistency and reliability all sustainabilitydata; and• Expand the scope of assurance to includeappropriate stakeholder engagement.GRI complianceHaving addressed the requirements of GRI G3Application Level B for the second time, it is ourrecommendation that Implats review the processfollowed in compiling the Report and, whilemaking further improvements on the quality andquantity of data required for Application Level B,begin addressing the requirements of ApplicationLevel A.ConclusionBased on the information reviewed, Trialogue isconfident that this report provides a comprehensiveand balanced account of the environmental, safetyand social performance of Implats during theperiod under review. The data presented is basedon a systematic process and we are satisfied thatthe reported performance data accuratelyrepresents the current environmental, safety andsocial performance of Implats.Trialogue Assurance Services28 August 2008Corporate Responsibility Report 0815

Economic performanceImpala RustenburgKey features• Production levels maintained• Capital investment of some R30 billion• Significant value added during the year,with R5.1 billion paid to employees andR5.1 billion to be paid in direct taxes• Significant dividends – R6 billion paid toshareholders.• Mining rights conversions achieved forImpala, Marula and Leeuwkop• R2 billion spent with vendors that had aHDSA/BEE ownership of more than 25%Based in southern Africa, with operations andprojects in South Africa and Zimbabwe, Implatsis a leading global producer of PGMs. Thegroup’s economic impact is far-reaching.• In FY2008, the group produced 1.9Moz ofplatinum, amounting to around 25% ofestimated global supply, for use largely injewellery and autocatalysts.• The group employed 54 991 people inFY2008 (employees and contractors), makingit one of the largest single employers in themining industry in southern Africa.• Its capital investment programme – someR30 billion planned over five years –represents a significant investment in the sectorand the region.• Implats has shareholders around the world,including more than 28 000 employees whobenefit from the group’s Employee ShareOwnership Programme (ESOP).• The group’s contributions to the communitiesaround its operations, both directly and indirectly,are significant and include infrastructuredevelopment, local economic development,indirect job creation, corporate social investment,skills development and other initiatives.Detailed information relating to the operationaland financial performance of the group isavailable in the Annual Report. Our value-addedstatement (page 18) reflects the significanteconomic value generated by Implats during theyear, largely as a result of extremely favourablemetals prices. It also indicates the value disbursedby the company to employees, to shareholdersand providers of capital, to suppliers, to the state(in the form of taxes) and to communities by wayof corporate social investment.16 Corporate Responsibility Report 08

Impala Rustenburg, 16 Shaft

Economic performance (continued)for the year ending 30 JuneR million FY2008 FY2007 % changeSales 37 619 31 482 19.5Net cost of products and services (14 077) (14 570) 3.4Value added by operations 23 542 16 912 39.2Income from investments and interest 6 198 1 030 501.7Total value added 29 740 17 942 65.8Applied as follows to:Employees as salaries, wages and fringe benefits 5 137 4 094 25.5The state as direct taxes 5 112 3 895 31.2Royalty recipients 648 1 703 (61.9)Providers of capital 6 299 3 265 92.9Financing costs 135 60 125.0Non-controlling interest 109 93 17.2Dividends 6 055 3 112 94.5Total value distributed 17 196 12 957 32.7Re-invested in the group 12 544 4 985 151.6Amortisation 1 013 865 17.1Reserves retained 11 541 4 120 180.129 740 17 942 65.8Total value distribution(FY2007)Employee costs 32%Taxation 30%Capital providers 25%Royalties 13%Total value distribution(FY2008)Employee costs 30%Taxation 30%Capital providers 36%Royalties 4%Significant investmentImplats is and has been a significant investor in the PGMs industry, bothin developing new and existing operations and in expanding its smeltingand refining operations. The group has continued to collaborate withemerging producers as part of its global exploration programme.In FY2008, Implats spent R5.4 billion on capital to maintain and growits production. These include four major projects currently beingundertaken:• at Impala in Rustenburg (including 16, 17 and 20 shafts) –R3.4 billion• Zimplats expansion – R1.3 billion• Marula’s UG2 operations – R345 million• Development of Leeuwkop – R145 million• Mimosa expansion – R144 million.Over the coming five years (FY2009 to FY2013) Implats has alreadycommitted R20.6 billion in capital, R19.6 billion in South Africa andR1 billion in Zimbabwe, to maintain and grow production. Our originaltarget for annual platinum production of 2.5Moz by FY2012 has beenimpacted by delays to the Leeuwkop and Marula Merensky projects.Annual production 2.5Moz of platinum is now expected in FY2015.TransformationImplats recognises and understands its responsibility towardstransformation of the broader socio-economic landscape in both South18 Corporate Responsibility Report 08

Africa and Zimbabwe and much has been donein this regard. A board committee, theTransformation Committee, is responsible foroversight of objectives and performance in thisarea. Broadly, the company’s impact can bedirected through three mechanisms.Black economic empowerment (BEE)ownershipImplats has endeavoured to ensure that its BEEpartners are drawn from a wide range of groupsand, as far as this is possible, to ensure that theyare representative of local communities andbusiness interests. Implats’ BEE partners andshareholders are set out below.– The Royal Bafokeng Nation (RBN),representing more than 300 000 peopleresident in North West Province, hold a 13.4%stake in the Implats group, making that nationthe group’s largest single shareholder.The nation is the historical owner of the land onwhich a large part of Impala’s operations islocated, and the fortunes of both the nation andImplats are intertwined. Together, Implats andthe RBN have set up one of the largest privatesector corporate social investment vehicles,the Impala Bafokeng Trust (IBT), as an additionalbenefit to the people residing around ImpalaRustenburg.– Some 28,000 Implats employees (representingabout 98% of the workforce) hold a 3% stakein the Implats group through the Employee ShareOwnership Programme (ESOP). The ESOP hasalready delivered significant value to employeeshareholders through share price appreciation.– Based on the company’s share price at theend of June 2008, the value of the shares heldby the ESOP has doubled: from R2.6 billionat inception to R5.2 billion. For the individualemployee this represented a rise (as at30 June 2008) in value from R90 000 toR182 000. While the share price decreaseddramatically in the period post year end, thiswas in line with the company’s peers and isexpected to recover.– Mmakau Mining, a black-owned miningcompany, Tubatse Platinum, representing localbusiness interests and the Marula CommunityTrusts, comprising the communities mostaffected by Marula’s mining operations,together own 27% of Marula Platinum.– The Bakwena Ba Mogopa TraditionalCommunity hold a 26% interest in theLeeuwkop project.– Implats’ partner in the Two Rivers project,ARM Platinum, is one of South Africa’s leadingBEE companies.– Implats was instrumental in the establishmentof Incwala Resources, a BEE platinumcompany, that acquired from Implats its entire27.1% share in Lonmin’s Western and EasternPlatinum mines.Implats recognises that there is a transformationimperative in Zimbabwe, and is working closelywith government in determining the optimal levelof local ownership that will still facilitateinvestment (see page 20).Gross annual platinum production(000oz)2 5002 0001 5001 000500Revenue(R billion)403224168Annual group capitalexpenditure (R million)60005000400030002000100004 05 06 07 0804 05 06 07 08 04 05 06 07 08Corporate Responsibility Report 0819

Economic performance (continued)Ngezi, ZimplatsIndigenisation in ZimbabweEmpowerment (indigenisation) legislation in Zimbabwe requires that 51% of foreign-ownedcompanies be locally held. New legislation to this effect was passed on 2 November 2007 andwas endorsed by the President of Zimbabwe on 7 March 2008. However, the enablingregulations that will accompany the legislation have still to be passed into law.Implats has plans in place to deal with this change and has specific agreements that will be takeninto account once overall compliance with this legislation is reviewed.In this regard, on 31 May 2006, Zimplats entered into an agreement with the government ofZimbabwe in respect of the release of 36% of the group’s mineral resource base in exchange fora combination of empowerment credits of 19.5% and $51 million in cash, or equity in a jointventure, or credits of 29.25% if no cash is received. In return, the company received security oftenure in terms of a special mining lease which will allow for operations of at least 1Moz ofplatinum per year over a 50 year life-of-mine. Credits for infrastructure development and corporatesocial investment will also be received.In line with Zimbabwe’s indigenisation programme, Implats anticipates that a 15% shareholdingin Zimplats will be set aside for local ownership.Preferential procurementImplats’ procurement policy assists in identifying accredited historically disadvantaged South Africans(HDSA)/BEE suppliers to encourage their development and to ensure that they enjoy preferential status.20 Corporate Responsibility Report 08

Impala Rustenburg, MinproBasic tenets of Implats’ procurement philosophy• To secure the most competitive total cost package for the company’s goods and services, givingdue consideration to regulatory requirements, quality standards, compliance with commitments,acceptable performance and continuity of supply.• To promote meaningful supplier relationships through ongoing communication, courtesy,fairness and impartiality regarding all aspects of the procurement cycle.• To continuously seek, identify, develop and promote historically disadvantaged enterprises andindividuals through sustainable procurement programmes without detracting from or adverselyaffecting stakeholder interest.• To train and develop procurement personnel continuously and to ensure ethical and transparentdealings with the company.Local procurement as a percentage of total procurement (all suppliers)FY2006 FY2007 FY2008Impala Rustenburg 47% 56% 55%Impala Springs 81% 96% 99%Marula 5% 5% 12%Total South African operations 47% 56% 58%Local procurement as apercentage of total procurement(all suppliers) (%)60504030201006 07 08Total procurement by the group’s South Africanoperations was R9.5 billion in FY2008, up by38% on the FY2007 total procurement figure ofR6.9 billion. However, total discretionaryprocurement amounted to R7 billion, up by 29%on the R5.4 billion spent the previous year. Theratio of discretionary procurement to totalprocurement declined from 79% to 74%, mainlyas a result of higher pass-through payments madeto legal firms working on the group’s housingestate acquisitions. Discretionary procurement isdefined as total procurement less procurement frompublic sector vendors (rates, taxes), utility serviceproviders (electricity), academic institutions, passthroughpayments (medical aid contributions, legalfees) and sponsorship vendors.Corporate Responsibility Report 0821

Mimosa

HDSA/BEE procurement (HDSA/BEE ownership > 25%) per commodity as a percentageof each commodity type procured at the South African operationsFY2007 FY2008Capital 39% 42%Consumables 33% 35%Services 32% 45%Total South African operations 38% 41%HDSA/BEE procurement (HDSA/BEE ownership > 25%) as a percentage of discretionaryprocurement at the South African operationsFY2006 FY2007 FY2008Capital 8% 13% 19%Consumables 10% 10% 9%Services 9% 14% 13%Total South African operations 27% 38% 41%In total, R2.9 billion or 41% (FY2007: 38%) ofdiscretionary procurement was spent on vendorswith HDSA/BEE ownership of more than 25%.Further, 50% (FY2007:47%) was spent onvendors with HDSA/BEE ownership of greaterthan 5%.Where possible, efforts are made to procuregoods and services locally, that is, within theprovince of operation. Local procurement reflecteda continuing rising trend, at 58% of totalprocurement (FY2007: 56%).The number of vendors with HDSA/BEE ownershipof more than 25% with which Implats does businessrose again – to 657 from 649 in the previous year.For the group as a whole, the most significantincrease in procurement with HDSA/BEE supplierswas recorded in the area of services, whereHDSA/BEE procurement as a percentage ofservices procurement (vendors with more than 25%HDSA/BEE ownership) rose from 32% in FY2007to 45% in FY2008.Internal transformationThis relates to the recruitment, education andtraining, and development of HDSAs and womenin particular and is dealt with on page 31.Corruption and fraudImplats expects its employees and agents tomaintain the highest levels of integrity and ethics.The group has a ‘zero tolerance’ approach todishonesty, fraud, corruption, theft or misconduct.The group’s fraud policy is supported by a detailedcode of ethics, both of which are available on thewebsite at www.implats.co.za. Both comply fullywith the Prevention and Combating of CorruptActivities Act of 2004.The implementation of these policies and theircollective procedures rests with executive and linemanagement. The forensic wing of the InternalAudit function, which is an independent assuranceactivity, handles all fraud-related issues, while thesecurity function deals with theft and corruption.Corporate Responsibility Report 0823

Economic performance (continued)There is regular communication regarding Implats’fraud prevention strategy, with specific emphasis onthe role played by employees in reportingmisconduct, criminal activities or suspectedcorruption; and fraud awareness forms part of thegroup’s training initiatives. Workshops areconducted with senior management to discuss antifraudstrategies with a view to introducing the bestpractices to combat fraudulent activities andbehaviour throughout the organisation.Employees, contractors, suppliers and customersaffiliated to South African operations areencouraged to report incidents of fraud andcorruption to Whistle Blowers, an external,independent service. All calls made to its 24-hourcall centre are fielded by multi-lingual operatorswho are trained to recognise real issues and toobtain relevant information from the informant withthe guarantee of confidentiality. The cases arecategorised and reported to the chairman and theCEO at the same time. Most are forwarded toInternal Audit, the rest are handled by the CEOhimself or sent to line managers for attention. Allreports received by Internal Audit are investigatedand reports submitted to the executive in whosearea of responsibility the incident occurred. Theaction taken by management is summarised for theAudit Committee.In Zimbabwe, employers, suppliers and otherstakeholders have access to the externalindependent services of Tip Offs Anonymous forconfidential reporting on fraud, theft, conflict ofinterest, corruption and any other forms of unethicalbehaviour. All allegations are reported to executivemanagement and appropriate investigations areundertaken.Political donationsWhile the group is supportive of the freedom ofassociation, it is also of the view that it is not therole of the company to involve itself in politics.Implats’ stated policy is that no political donationswill be made by the company, either directly or inkind, and this policy was adhered to duringthe year.Legal issuesThere are no significant legal issues either inprogress or pending against the group.There was one case during the year where anemployee received a final written warning inrespect of alleged corruption and one contract witha supplier was not renewed related to corruptionrelatedviolations.24 Corporate Responsibility Report 08

Impala Rustenburg

SocialperformanceMarula

Human capitalKey features• Increase in total number of peopleemployed• Good progress with women in mining andemployment equityImplats is a significant employer in the PGMs sector inboth South Africa and Zimbabwe. A notable featureof the year was the significant number of contractorsemployed on major capital projects and recruitmentrelated to expansions at Marula and Zimplats,thereby creating additional job opportunities in theareas in which the company operates.The group employed a total of 54 991 peopleduring the year of whom, 63% were permanentemployees and 37% contractors. The increase inpeople employed in FY2008 was mainlyattributable to the new capital projects started in theyear. The significant number of contractors employedon major capital projects and recruitment for theMarula ramp-up and Zimplats expansion, createdadditional job opportunities at Implats.Number of employees and contractors30 June 2007 30 June 2008Employees Contractors Total Employees Contractors TotalImpala Rustenburg* 27 627 10 200 37 827 28 453* 14 206 42 659Impala Springs 992 257 1,249 1 007 1 172 2 179Marula 2 094 917 3,011 2 493 1 098 3 591Zimplats 1 128 2 275 3 403 1 584 3 998 5 582Mimosa** 752 65 817 771 126 897Corporate 61 4 65 73 10 83Group 32 654 13 718 46 372 34 381 20 610 54 991*12 permanent Leeuwkop employees are reported under Impala Rustenburg.** 50% of Mimosa’s employees are reported.A key feature of industry in southern Africa is theserious shortage of skilled personnel. This isparticularly so in the mining industry and is anunderlying factor in the continued high turnoverlevels experienced by the group during the year.Turnover levels at Marula (13%) and Mimosa (12%)were highest, with the overall group turnover at8.9%. This compares with an estimated averageturnover for the industry of around 18%. AsEmployee numbers(employees and contractors) (000)605040discussed below, efforts to improve the retention ofemployees implemented at the beginning of theyear were moderately successful.Attracting and retaining talentAttracting and retaining talented individuals whosubscribe to the vision of the company continues tobe an important driver of our group’s humanresource management strategy. ParticularTurnover levels by operation(%)14121030201004 05 06 07 08864218 Impala Rustenburg19 Impala Springs13 Marula11 Zimplats12 Mimosa15 Corporate office19 Group28 Corporate Responsibility Report 08

Impala Rustenburg

Human capital (continued)cognisance is taken of the need to attract and retainwomen and employees who have been historicallydisadvantaged. Efforts to attract talent include thefollowing:• Housing: Implats has endeavoured over timeto reduce the provision of hostel-styleaccommodation. Mining companies areincreasingly becoming involved in the provision ofhousing in their areas of operation as the regionexperiences housing shortages. The provision ofhousing is also an attractive recruitment andretention strategy, and has many positive socialbenefits, as it improves the quality of life ofemployees, their health and well-being as well asthat of their families. During the past financialyear, the group has spent R307 million on theprovision of housing for employees in both SouthAfrica and Zimbabwe, with R350 millionallocated to this in FY2009.• ESOP: The group’s ESOP implemented in 2006has provided some 28 000 employees (about98% of all South African permanent employees)with a material stake in the growth of the company.See page 19 for comment on the economicappreciation of the ESOP during the year.• The company undertook a communications driveto explain the process, allocation and benefits ofthe ESOP to all beneficiaries through briefs,presentations, printed material, posters and avideo. It is unfortunate, however, that the conceptof the ESOP – and particularly the time it takes forthe investment to mature – is not well understoodby all those it is meant to benefit, and an extensiveongoing education programme has beennecessary to explain the value of remaining withthe scheme. This is exacerbated by the lack of aculture of saving and the impact of the highinflationaryenvironment in South Africa.• Reward schemes: The Ama-Ching-Ching BonusScheme, implemented towards the end of the2007 financial year to improve productivity andgenerate wealth for employees, also had aninitial and visible positive impact. The benefits, interms of improved production and productivity,were not as long lasting as had been hoped,largely as a result of the industry skills shortagewhere many jobs (with rewards unrelated toperformance) are available.• The short- and long-term employee incentiveschemes were reviewed to ensure that theirvariable costs to the organisation were controlledand to limit their effect on fixed costs. Theeffectiveness of the group’s retention schemes andfixed remuneration principles as related to middleand senior management and critical skills werealso reviewed. Several retention mechanisms wereimplemented to retain specific critical and scarcesupervisory and technically skilled employees.Quarterly benchmark audits ensure marketcompetitiveness and internal equity relating to bothfixed and variable rewards.• Other initiatives: The talent managementprogramme and graduate recruitment strategywere implemented throughout the group.HDSAs in managementFY2008Total Total % HDSA Targetemployees HDSA* FY2009/members (%)Board 13 8 62 40Senior management 97 26 27 40Middle management 590 279 47 40*Total employees/members in service as at June 2008 at South African operations. The table includesnine non-executive board members. HDSA numbers include white females.30 Corporate Responsibility Report 08

high-potential employees focus on attraction andretention. Talent management focuses on careerprogression, individual development, mentoringand succession planning.The scarcity of skills in the industry precludes thecompany from adopting a policy of hiring onlylocal employees. Where possible, however, effortsare made to recruit locally and, all else beingequal, preference is given to local applicants.Employment equityImplats aims to provide satisfactory careers andcareer development plans for all employees. InSouth Africa, particular attention is paid to theattraction, training and development, promotionand retention of HDSAs. Specific mechanismshave been implemented to meet the HDSAmanagement targets specified in the MiningCharter and include programmes related to skillstransfer, preferential recruitment, acceleratedtraining and a bursary scheme.A talent management programme – undertakenat a cost of some R24 million in FY2008(FY2007: R20 million) – is run for the South Africanoperations. The programme, which was initiated in2005, identifies internal and external individualswith promise, and develops and advances them.Good progress was made towards achievingemployment equity targets. At the end of FY2008,33% of senior and middle management in SouthAfrica were HDSAs (FY2007: 29%). If whitewomen are included in this number, this rises to45% (FY2007:40%). The Mining Charter requiresthat 40% of managers are HDSAs (includingwomen) by 2009.Women in miningGood progress has also been made in achievingthe participation of women in mining andprogrammes include career development planning,individual development programmes, acceleratedtraining programmes, mentoring programmes andthe creation of promotional opportunities.At the end of June 2008, 8.3% of employeeswere women, while women made up 18% ofboard membership and senior and middlemanagement. In FY2007, these figures were5.8% and 16.5% respectively. The Charter requiresthat 10% of all employees are women by 2009.Specific policies and programmes have been putin place to facilitate the entrance of women tomining, including a pregnancy policy and asexual harassment policy. In addition, furthersurface change houses and undergroundablution facilities have been provided.Women in miningFY2008Total Total % women Targetemployees/ women FY2009members (%)Board 13 4 31 10Senior management 97 9 9 10Middle management 590 115 19 10Sub-total 700 128 18 10Skilled 3 929 336 9 10Non-skilled 27 406 2 032 7 10Total # 32 035 2 496 8 10*Note: The term HDSA refers to those employees as defined in terms of the MPRDA and the MiningCharter. This category is also referred to as Designated Employees in terms of the Employment Equity Actas having been historically disadvantaged and includes white women. Total employees in service as atJune 2008 at the South African operations. The table includes nine non-executive board membersCorporate Responsibility Report 0831

Human capital (continued)Impala RustenburgTraining, education anddevelopmentSignificant emphasis is placed on training andeducation at all levels within the company.A particular area of focus in South Africa isthe provision of Adult Basic Education andTraining (ABET) given the low levels of literacy(estimated at around 31%, at Impala Rustenburg).All employees at the Zimbabwean operations areliterate, with literacy levels at corporate office,Marula Platinum and Impala Refineries rangingfrom 74% to 89%. In FY2008, 2 005 employees(FY2007: 1 031 employees) participated in ABETclasses in South Africa at a cost to the group ofsome R26 million.Total training expenditure within the group inFY2008 was approximately R215 million(FY2007: R174 million) with employees receivingon average between 70 and 84 hours of trainingduring the year. A wide variety of training isoffered, from technical training and safetytraining, to supervisor and managementdevelopment.There were 56 Implats bursary holders at the end ofFY2008, studying at tertiary education institutions inSouth Africa in key mining and metallurgy relateddisciplines. These bursaries were provided at a costto the company of around R3.2 million. Of thebursars, 95% are HDSAs.In addition, the group provided 116 scholarships and246 learnerships at a cost of some R15.8 million. Ofthe latter , 76% were HDSAs.Employee relationsEmployee relations in South Africa are governed by,among others, the Labour Relations Act, theEmployment Equity Act, the Mine Health and SafetyAct, the MPRDA and the Mining Charter.The employer/employee relationship is alsoinfluenced by the constitution of the countriesin which the group operates, and by certaininternational regulations and conventions, includingvarious International Labour Organization(ILO) declarations.Specialist human resources, training and industrialrelations personnel support line management inthe management and development of humancapital, and ensure compliance with legislation.Formal employee relations are largely governedby collective bargaining processes andrecognition agreements, underpinned by thelabour legislation of the countries of operation.Aspects that are covered include salaries andsalary reviews, conditions of service, noticeperiods for operational changes, participation byemployees or unions in various decision-makingforums, among others.Around 97.4% of the total South Africanworkforce is unionised, or subject to a collective32 Corporate Responsibility Report 08

argaining agreement. The two major unionsrecognised at the South African operations arethe National Union of Mineworkers (NUM)(representing 62.4% of employees) and theUnited Association of South Africa (UASA)(6.0% of employees).Labour relations in Zimbabwe are governed bythe National Labour Act and by the collectivebargaining agreement negotiated at an industrylevel by the National Employment Council for theMining Industry. About 86% of the Zimbabweanworkforce are covered by collective bargainingagreements. Workers’ committees are involved inoperation-based interaction with management.A two-year wage agreement entered into in July2007 between South African unions and thecompany provided for an increase of 10% from1 July 2008. The two-year wage agreement wassubject to the prevailing annual rate of CPIX,which for June 2008 was 11.6%.Wage negotiations were not undertaken inZimbabwe during the year under review. However,owing to hyperinflation in the country, employeewages are reviewed continuously and significantincreases have been granted at all levels.A day’s production was lost at Marula in July 2007owing to an unprotected strike action byemployees regarding the annual bonus paid toofficials. This was successfully resolved at the time.A further 14 days of production were lost at Marulain October 2007 following unprotected strikeaction by employees who demanded the removalof senior management. Constructive engagementensued and the dispute was finally resolved inFebruary 2008 when the NUM retracted itsallegations. The dispute had a negative impact onlabour relations during the period.A one-day industry-wide protest related to safetywas called by the NUM on 4 December 2007,resulting in a full day’s lost production. A singledaystoppage at the Ngezi trackless mine atZimplats related to an employee demand forpayments in non-Zimbabwean currency occurredduring the year. Once employees understood thatthis was not legal, normal work resumed.In addition to basic salaries, a wide range ofbenefits are provided to employees. Theseinclude medical aid, long- and short-termincentive schemes, share ownership and theESOP programme, retirement funding, group lifeinsurance, regional allowances, homeownership schemes, assistance with school fees(at Mimosa and Zimplats), and family funeralassistance scheme (at Mimosa), among others.The company’s practice is to appraise employees’performance against a set of predeterminedtargets. This takes place at various intervals, but atleast annually for middle and senior managementas part of skills management and thedevelopment of human capital. Performanceappraisals for employees at middle and seniormanagement levels are used in determiningannual performance-based increases.The group’s policy is to ensure that there is nodiscrimination between the payments made tomen or women, or those for members of differentrace groups. Its practice is to remunerateemployees equally based on position, value tothe organisation, market-related remunerationand the experience and expertise brought to thecompany. Annual reports on employment equityare submitted to the South African Departmentof Labour.Provision is made for lifelong learning andsupport is given for external education andtraining and the granting of sabbatical periodswith a guaranteed return to employment, as wellas the retraining of employees in the event ofrestructuring as required by the SLPs and in linewith recognition agreements.Corporate Responsibility Report 0833

Human rightsProvisions for human rights and the elimination ofdiscrimination are entrenched in the Constitutionof South Africa, and in legislation (LabourRelations Act, Employment Equity Act) andImplats’ own policies, contracts and agreementswith unions.Implats recognises:• the right to freedom of association andcollective bargaining;• the prevention of child labour;• the prevention of forced or compulsorylabour and• the equality of all individuals, irrespective ofrace, sex and physical ability.Collective bargaining and union activity is avibrant part of the company’s operating activitiesand is reported on page 32 of this report. It is ofconcern to the company that, although freedom ofassociation is enshrined within the constitution ofZimbabwe, strikes are not permitted.Implats expects its contractors to act in the samemanner in which the company and its employeesbehave, including the respect for human rights.All major contracts and contractors are vetted forpotential and historical human rights abuse.While contractor agreements do not specificallycontain human rights clauses, contractors areexpected to adhere to the South Africanconstitution and law.A number of incidents of racial discriminationand sexual harassment were reported at theoperations during the year. All incidents wereinvestigated, the necessary hearings were heldand outcomes dealt with appropriately.Impala Rustenburg, Minpro34 Corporate Responsibility Report 08

Impala Rustenburg, Minpro

Safety and healthKey featuresSafety• Overall, safety improved across the group• FIFR improved by 21%, LTIFR by16% andMTC by 26%• Impala Refineries’ excellent safetyperformance continuedHealth• More than 75 000 occupational healthscreening examinations undertaken• NIHL, TB statistics down• No cases of heat stress or biologicalcontaminationSafetySafety managementA key strategic objective is the achievement of‘Zero harm’. The group safety policy, which isbased on the key resolutions adopted at thegroup safety summit held in February 2006,entrenches the belief that mining, andunderground mining in particular, can beundertaken without causing injury and harm.All Implats’ operations in both South Africa andZimbabwe have aligned their operational safetystrategies and plans with those of the group. On apractical level, the implementation of ‘visible, feltleadership’ is showing positive results. Supervisorsand management ensure that safety is notcompromised in any circumstances by takingresponsibility for employee safety, leading byexample, encouraging positive safety behaviourand discouraging negative behaviour.Allied to this is the intolerance of nonconformanceand non-compliance with Implats’safety standards and procedures, which areenshrined in operation-specific Platinum Rules.To achieve the group’s long-term goal of zeroharm, an intermediate goal has been set toachieve 12 consecutive months free of lost-timeinjuries by FY2012. This is a significant target butone which the group believes is achievable.At board level, a committee, the SHEQ AuditCommittee, has oversight of both safetyperformance and goal setting. Further details of thiscommittee are provided in the corporategovernance section of the Annual Report.A key feature of the year was the appointment ofan executive responsible for safety, health andenvironment at a group level who will drive goalsetting,strategy development, performancemanagement and reporting. While safetymanagement is the responsibility of linemanagement, specialist safety staff assist with themanagement and monitoring of safety issues.Impala Rustenburg36 Corporate Responsibility Report 08

Employee involvementThe involvement of employees and unions in safetyissues is a key imperative of the group, as is thetaking of direct accountability for safety actions byall employees. Legislation and recognitionagreements in both South Africa and Zimbabweprovide for the establishment of formal safetycommittees. These committees most commonlycomprise joint management/union participationand meet at least monthly. In addition, safetyrepresentatives have been elected at all operations:40 full time and 2000 part-time at ImpalaRustenburg, 48 at Impala Springs, 104 at Marula,82 at Mimosa and 80 at Zimplats.Safety committees in placeImpalaRustenburg Steering committees (2)Branch committees (4)Mining sectional committees (20)Services sectional committees (6)Minpro sectional committees (3)Impala Springs Steering committeePlant and services committees (6)Marula Steering committeeShaft committeeMimosa Steering committeeDepartmental SHE committeeSectional committeeSHE representative committeeZimplats Steering committeeBy virtue of the collective bargaining agreementsin place in South Africa and the worker committeesin Zimbabwe, all employees are represented atthese safety and health forums at an operationallevel. As with safety, issues relating tooccupational health are dealt with at board levelby the SHEQ Audit Committee and by the groupexecutive committee, and at an operational levelby the operational management committees andthe safety and health committees.The functioning of these committees is regulated bythe health and safety agreements entered into withthe representative trade unions. These agreementsdeal with a broad range of safety issues, includingthe election of full-time health and safetyrepresentatives and safety stewards, procedures foremployees to exercise their rights to withdraw fromcircumstances that they perceive to be dangerous;training; procedures for the resolution of disputesrelating to safety and health; participation inincident investigations; and any other issuesrelating to safety and health which may arise.PerformanceOverall, safety performance at Implats improved inFY2008.Regrettably, there were 12 fatalities at Implatsmanaged operations (FY2007: 13 fatalities) – fiveat Impala Rustenburg, three at Marula, three atZimplats and one at Mimosa. There was also onefatality at the non-managed operation, Two Rivers.The group fatal injury frequency rate (FIFR) was0. 10 per million hours worked (FY2007: 0.12),an improvement of 21% on the previous year.The group lost time injury frequency rate (LTIFR) was2.92 per million hours worked (FY2007: 3.48),an improvement of 16% and the best annualperformance achieved by Implats to date. The LTIFRimproved at all operations other than Zimplats.A significant improvement of 26% was alsorecorded in respect of Medical Treatment Cases(MTC). An MTC involves the one-time treatmentand subsequent observation of minor injuries, butnever involves the loss of one or more calendar dayafter the injury, regardless of the injured person’snext rostered shift.The causes of the fatalities were primarily falls ofground (50%), explosives (26%), fall from hight(8%), electrocution (8%) and mobile equipment(8%). Specific, detailed action plans werecompiled and implemented that included makingworking areas safe and identifying high-risk fall ofground conditions and sub-standard barringpractices. These initiatives have played animportant part in reducing the incidence of fatalaccidents, particularly as a result of falls of ground.A relatively high turnover of staff, especially atsupervisory level, and the subsequent employmentof less experienced members of staff, also had aCorporate Responsibility Report 0837

Safety and health (continued)deleterious effect on efforts to maintain safety and achieve targets. As a consequence, particularly atZimplats and Marula, greater emphasis was placed on the frequency and intensity of training.FIFR (per million hours worked)Operation FY2007 FY2008Impala Rustenburg 0.11 0.06Impala Refineries 0.00 0.00Marula 0.14 0.37Zimplats 0.00 0.19Mimosa 0.48 0.13Group 0.12 0.10FIFR(per million hours worked)0.120.100.080.060.040.0204 05 06 07 08LTIFR (per million hours worked)Operation FY2007 FY2008Impala Rustenburg 4.36 3.80Impala Refineries 0.68 0.21Marula 1.63 1.24Zimplats 0.28 0.69Mimosa 1.74 0.88Group 3.48 2.92LTIFR(per million hours worked)5.04.03.02.01.004 05 06 07 08MTC (per million hours worked)Operation FY2007 FY2008Impala Rustenburg 18.72 12.30Impala Refineries 27.94 24.10Marula 36.71 43.85Zimplats 8.60 9.00Mimosa 13.48 6.64Group 19.01 14.08MTC(per million hours worked)04 05 06 07 08Note: LTI is expected to rise in the following reporting period as restricted work cases will be included in this statistic.25201510538 Corporate Responsibility Report 08

In memoriamThese are the names of the people who lost their lives at work at Implats’ operations during the year.Our sympathies are extended to their families and colleagues.Name Operation Date HomeBernard Ntjamotho Impala Rustenburg, 2 July 2007 Mapakising, Qachanek,Lehlonono 14 Shaft LesothoLesang Jonas Morweng Impala Rustenburg, 17 July 2007 Rustenburg,1 Shaft South AfricaGabatlhompe Phadisa Impala Rustenburg, 10 August 2007 Chadire, Botswana1 ShaftJohan van Wyk Impala Rustenburg, 4 October 2007 Rustenburg, South AfricaMineral ProcessesPrince Potsotso Marula 23 October 2007 Driekop, South AfricaChristiaan du Plessis Marula 23 October 2007 Burgersfort, South AfricaMosetseng Elson Mahlake Marula 22 November 2007 Hazyview, South AfricaRaymond Muzenda Zimplats 17 December 2007 Ngezi, ZimbabweKonani Nkomazana Mimosa 27 January 2008 Hwange Town, ZimbabweTinashe Chirove Zimplats 4 April 2008 Norton Zimba, ZimbabweDaniel Nake Impala Rustenburg, 17 June 2008 Rustenburg, South Africa7 ShaftThomas Musoro Zimplats 30 June 2008 Ngezi, ZimbabweCauses of fatal accidents(FY2008)No of fatal accidents(FY2008)6543Fall of ground 50%Explosion 26%Fall from height 8%Electrocution 8%Mobile equipment 8%21Impala RustenburgMarulaMimosaZimplatsReview of safety measures by operationImpala Rustenburg: While safety performanceimproved, particularly regarding falls of ground,such incidents remain the most significant safetyrisk. The fall of ground safety campaign wasreinforced and involves a newly developedworkplace entry examination procedure,including improved barring techniques, ongoingrisk assessments of ground conditions and regularcommunication with supervisors.Impala Springs: Just one lost-time injury wasrecorded in FY2008. The focus has been oncontractor safety given the expansions currentlytaking place.Corporate Responsibility Report 0839

Safety and health (continued)Marula: Supervisors received instruction onapplying a policy of zero tolerance to noncompliancewith safety standards and the constantdemonstration of visible, felt leadership. Allemployees received refresher training on the safedisposal of explosives and the safe parking of LHDs.Zimplats: The deterioration in safety follows twofatality-free years and was a consequence of thehigh staff turnover where the lack of experienceresulted in inadequate assessments of pre-taskrisks. Management introduced the visible, feltleadership programme, extended the length ofinduction training, and adopted OHSAS 18001.Mimosa: Increased effort was made to improvebehaviour-based training and a policy of zerotoleranceto sub-standard safety practices wasenforced. In addition, the risk assessment systemwas improved. The fitting of canopies to LHDs, theenforcement of the mining cycle, adherence tosafety standards, and a campaign to prevent fallsof ground were implemented.Legal complianceSafety audits were undertaken by the DME atall Implats’ mining operations during the yearas part of a national Presidential SafetyAudit. Constructive engagement with the DMEformed part of this process. During the year,13 instructions were received from the DME interms of Section 54 of the Mine Health andSafety Act which resulted in work stoppages for23 production days at various Impala shafts.Also, two Section 54 instructions were receivedat Marula, resulting in a total of six days of lostproduction.Recognition and awardsImpala Rustenburg 1,12 and 14 shafts achieved 1 million fatality-free shifts10 and 11 shafts achieved 2 million fatality-free shiftsThe Rustenburg Utilities and Services division achieved 5 million fatality-free shiftsThe Rustenburg operations as a whole achieved 6.5 million fatality-free shiftswhich is an all-time best achievement(the previous best performance was 3 million fatality-free shifts).Impala - Refineries Refineries had 13 construction-related inspections done by the Department ofLabour inspectorate for the period under review. There were no findingsagainst it.MimosaMimosa came first in the Southern Regional Mine Rescue competitions andsecond in the National Mine Rescue competitions.Ngezi, Zimplats40 Corporate Responsibility Report 08

Marula

HealthHealth managementOccupational health screening and medicaltreatment in support of the group strategy aredelivered through company-based clinics, ownand contracted occupational health centres andhospital and contracted specialists. Primary andcurative care is provided at company medicalfacilities and through a range of medical schemeswhich are available to our employees and theirdependents.Implats’ strategy in respect of non-occupationalhealth is to improve access to affordable andappropriate health care for employees and theirfamilies. All employees have access to a medicalaid facility.Occupational health surveillanceAll employees and contractors undergo preplacement,annual and exit examinations toensure that they are fit for work in their specificwork environments and that any occupationaldisease is detected at an early stage to ensureearly treatment.These examinations also detect non-occupationalillness, such as hypertension and diabetes. Newcases of occupational and non-occupationaldisease are referred to appropriate on-site orexternal facilities. No pre-employment testing forHIV is undertaken and all HIV tests are undertakenvoluntarily.More than 75 000 occupational screeningexaminations were performed across the groupin FY2008.PerformanceThe two primary occupational health risks arenoise-induced hearing loss (NIHL) and pulmonarytuberculosis (TB). Heat stress and potentialexposure to heavy metals are risks in certainoccupations.Medical surveillance – occupational health screening examinations (FY2008)Operation Pre-placement Annual ExitImpala Rustenburg 15 148 41 492 7 375Impala Springs 2 210 2 022 88Marula 1 614 1 781 796Mimosa 1 161 271 69Zimplats 746 370 11Group 20 879 45 936 8 339New pulmonary TB casestreated at Implats facilities(FY2008)Incidence of TB at ImpalaRustenburg1 2001 000800600Impala Rustenburg 286Impala springs 3Marula 12Mimosa 22Zimplats 640020004 05 06 07 0842 Corporate Responsibility Report 08

Pulmonary TBIn South Africa, pulmonary TB is considered anoccupational illness if it is associated with dustexposure. All cases of pulmonary TB aresubmitted for independent assessment to theMedical Bureau of Occupational Diseases(MBOD) for possible compensation.In total, 329 new cases of pulmonary TB werediagnosed during the year, and treatment wasinitiated in all cases (Y2007: 348). This is anincidence rate of 1 079 per 100 000 employees(FY2007: 1 181). Employees identified as havingTB are encouraged to receive treatment fromcompany facilities which adhere strictly to WorldHealth Organization (WHO) recommendedregimes and directly observed treatmentsupervision (DOTS). The emergence of strains ofdrug-resistant TB – multi-drug resistant TB (MDR-TB)and extremely drug-resistant TB (XDR-TB) – in SouthAfrica is a cause for concern. Two cases of MDRTB were identified at Impala Platinum’sRustenburg operations during the year.The HIV/AIDS pandemic continues to have asignificant impact on TB rates. Around 60% ofnewly diagnosed TB patients are HIV-positive.Noise-induced hearing loss (NIHL)Comprehensive hearing conservation programmesare in place at all operations to reduce the riskof employees developing NIHL. In South Africa,these programmes are aimed at reducing noiselevels at source to below 110dBA, in line withthe South African Mine Health and SafetyCouncil (MHSC) targets, and to providepersonal hearing protection devices, (eithercustom-made noise clippers or disposableearplugs), to employees and permanentcontractors who work in high-risk areas. Afundamental challenge remains the need tomuffle rockdrills to noise levels below 110dBA.The hearing protection devices available toemployees will attenuate noise to below 85dBA(the targeted level) if worn correctly.Education of employees regarding NIHL and theuse of hearing protection devices continues, asindividual non-compliance remains one of the mostsignificant challenges, although this is improving.In FY2008, 31 new cases of NIHL (FY2007:54)were identified and submitted for compensationin line with legislation. All of these were atImpala Rustenburg.MarulaCorporate Responsibility Report 0843

Safety and health (continued)All employees exposed to noise have undergoneaudiometric baseline examinations and aremonitored with follow-up annual audiometric testsfor early signs of hearing loss.Heat stressA thermal stress management programme is inplace at Impala’s mining operation because ofthe higher temperatures prevailing in the deeperunderground workings. Every undergroundemployee working in heat undergoes heattolerance screening which is followed by closelysupervised self-acclimatisation shifts in a hotunderground environment. High temperaturesexperienced underground are associated withthe increased occurrence of heat stroke. Nocases of heat stroke were reported during theperiod under review.Biological monitoringBiological monitoring of specific employees whomay be exposed to chromium, arsenic, carbondisulphide, nickel, cadmium and lead isundertaken. All employees who underwentbiological monitoring had results within thenormal range.Summary of performance per operationSpecific performance and developments atoperations in terms of occupational health aredetailed below.Impala Rustenburg – A centralised facility forissuing noise clippers was commissioned duringthe year and has significantly improved thedistribution and use of hearing protection devices.Impala Refineries – As with safety management,the significant number of contractors on site provedto be a challenge. Contractors are included in thecompany’s medical surveillance programme.Marula – Historically occupational health screeningand treatment has been provided by externalservice providers. During the year the focus was onimproving Marula’s facilities and staffing. The onminemedical capacity was improved by theappointment of part-time doctors and an additionalprofessional nurse.Mimosa – An occupational health centre is beingconstructed on the mine to undertake medicalsurveillance and occupational health treatmentand to reduce the reliance on state services.Privately outsources medical services wereparticularly problematic during the year.Zimplats – Zimplats too, has strengthened itsin-house occupational health capacity, with newstaff appointments and the purchase of a newX-ray unit and audiometer. The mine is now lessreliant on external service providers, whoseservice levels deteriorated during the year. Theheavy rains in Zimbabwe resulted in an increasedfocus on malaria identification and testing. Of thefour cases of malaria identified during the year, allwere contracted away from the mine.Mimosa44 Corporate Responsibility Report 08

HIV/AIDSImpala RustenburgKey features• 3 609 HIV tests were conducted atcompany facilities during the year• 2 734 people (employees and dependents)participated in the company’s wellnessprogramme• 708 people received ART through companyhealth facilities, a significant rise fromFY2007• Medical costs incurred related to HIV/AIDSamounted to some R16.1 million in FY2008at Impala RustenburgHIV/AIDS managementHIV/AIDS continues to be a major concern atboth the South African and Zimbabweanoperations. Not only is there a direct significantcost to the company in terms of medical care andprevention programmes, but there is also asignificant impact on productivity in theworkplace and on the replacement of skills in anindustry where skills are in short supply. The mostsignificant impact, however, is on the well-beingof employees and their families.All employees and their dependents have access toexternal medical care and some employees makeuse of state-owned facilities. The statistics reportedbelow reflect only those that can be gathered whenemployees make use of direct company facilities.Under-reporting is therefore likely.Based on estimates and independent analysisand limited testing, it is estimated that theprevalence levels among the company’sworkforce is an average of 20%. Increasingresistance to testing has been noted during theyear, particularly at Impala Platinum.Higher levels of staff turnover have, over time,resulted in high HIV prevalence levels within thegroup, and particularly at Impala Rustenburg,where new recruits are drawn from communitiesthat have historically had a higher HIV/AIDSprevalence level than that of the company’s ownworkforce. In addition, the recruitment of morewomen – who are an at-risk group within thebroader population – may have an impact on theoverall prevalence levels.Employee involvementAgreements are in place with major unions inrespect of the management of HIV/AIDS at theSouth African operations. The effectiveness of theImpala Rustenburg committee remains a factor ofCorporate Responsibility Report 0845

HIV/AIDS (continued)concern, although subsequent to the union electionprocess in May 2008, some improvement hasbeen evident. The functioning of this committee willbe a focus area in the year ahead.PerformanceThe focus during the year under review wastwo-fold:• first, to prevent the disease through educationprogrammes and, in particular, the use of peereducators; and• second, to increase registration and compliancewith the company’s wellness programme,including participation in the antiretroviraltreatment (ART) programme.Voluntary counselling and testing (VCT) isavailable at all of the company’s operations,although uptake during the year was verydisappointing. Only 3 609 employees underwenttesting during the year, (FY2007: 6 805 tests).Employees who are HIV-positive are encouragedto participate in the wellness programmesavailable through the company or through thevarious medical aid schemes. As at the end ofFY2008, 2 734 new patients were enrolled inthe group’s wellness programme.ART is available to all employees and theirdependents through the group’s medicalschemes. In FY2008, 307 new patients startedon the ART programme with a total of708 employees (FY2007: 396) taking theirtreatment through the group’s medical facilities.The exact number of employees taking ARTthrough external medical schemes is not known.Maintaining compliance with the ARTprogramme remains a challenge andprofessional nurses and peer educators havebeen specifically allocated to encourage andensure compliance.The impact of the pandemic remains severe.The company is aware of 105 patients whodied in service as a result of AIDS-relatedillnesses during the year and a further165 people who left the company’s employ asa result of HIV-related medical issues (FY2007:113 and 363 respectively).46 Corporate Responsibility Report 08

Implats is involved in a number of initiativesproviding care to employees and others aroundits operations and in labour-sending areas.The total cost to the group of the HIV/AIDSeducation and medical programme for employeeswas approximately R16.1 million in FY2008(FY2007: R18.5 million) at Impala Rustenburg.No of people on ART atcompany facilities80060040020004 05 06 07 08HIV/AIDS statisticsVCT Number Number of Cumulative Known, Medicalon wellness new patients number of AIDS-related separationsprogramme on ART patients deaths known toon ARTbe AIDSrelatedImpala Rustenburg 2 808 2 336 272 631 87 146Impala Springs 74 12 0 6 1 0Marula 291 277 1 12 8 1Mimosa 92 24 15 25 8 18Zimplats 344 85 19 34 1 0Group 3 609 2 734 307 708 105 165Impala RustenburgCorporate Responsibility Report 0847

Socio-economic developmentManagement of socio-economicdevelopmentImplats takes its responsibility as a corporate citizenseriously, ensuring that its activities and actionshave a positive impact on the communities in whichthe company operates and from which itsemployees are drawn. Its approach is a holisticone and encompasses procurement andemployment practices, training, engagement withlocal authorities, establishment of infrastructure andsocio-economic development. In this respect, socioeconomicdevelopment includes the identificationof opportunities for improving the livelihoods, wellbeingand prospects of a broad cross-section ofthe community.Implats’ socio-economic development activities inSouth Africa are managed under the auspices ofthe Impala Community Development Trust (ICDT),which was formed by the group in 1998 and theImpala Bafokeng Trust, which was set up inSeptember 2007 as part of the group’s BEEtransaction with the Royal Bafokeng Nation (RBN). Inaddition, as part of its SLP commitments, the group isundertaking extensive local economic development(LED) programmes in all the communities in whichit operates.The ICDTThe ICDT aims to be a facilitator of socialdevelopment and encourages meaningful andsustainable interventions, always in partnership withlocal communities and often in partnership withother donors. This collaborative approach facilitatesownership (and therefore legitimacy) of projects,and assists in attracting investment from other donorsand support from governmental agencies, nongovernmentalorganisations (NGOs), communitybasedorganisations (CBOs) and others.The ICDTThe ICDT aims to:• align social upliftment activities with the goals and objectives of local, provincial and nationalgovernment development programmes;• build capacity within community structures (co-operatives, NGOs and CBOs) operating in areasof interest; and• encourage self-reliance and minimise dependence on welfare in targeted communities.The ICDT has eight areas of focus.• Education, which includes the teaching of mathematics, physical science and English at teacher andlearner level; post-matric mathematics and physical science; capacity-building and school governance;the development of learning support materials and equipment; and infrastructural development.• Health, which includes primary and secondary health care, and TB and HIV/AIDS home-based care.• Welfare, which includes orphanages and day-care support.• Environment, which includes the provision of water and sanitation, environmental awarenesscampaigns, community environmental rehabilitation projects and public participation initiatives.• Safety and security, including support for Business Against Crime and infrastructure developmentand training for the South African Police Services (SAPS).• Supporting income-generating projects through the establishment of co-operatives(and facilitating financial and other support for these co-operatives), NGOs, CBOs,capacity-building programmes and business linkage centres (in Springs).• Sports development, which includes support for soccer, rugby, netball and cricket at local level.• Government support, which includes assistance with the establishment of district and localmunicipalities in the areas where Implats operates to enhance infrastructure delivery and localeconomic development.48 Corporate Responsibility Report 08

Ngezi, Zimplats

Socio-economic development (continued)Guided by its Corporate Social Affairs Policy (see thewebsite at www.implats.co.za), the group aims toensure that it makes a positive contribution topoverty alleviation, community development (byestablishing infrastructure and empoweringcommunity structures) and enabling governmentto facilitate improved service delivery and localeconomic development. Although the ICDT’soverriding goal is the empowerment of a broadrange of stakeholders, it places a specificemphasis on black youth, women and peopleliving with disabilities.Social development officers based at theoperations identify possible projects or reviewthe various applications they receive and submitthese for approval. Applications to the ICDT areevaluated internally prior to consideration by theICDT Board of Trustees. Group CEO DavidBrown is the chairman of this board.During FY2008, the ICDT spent R41.6 million(including R6 million contributed to the ImpalaBafokeng Trust) on socio-economic developmentprojects in South Africa (FY2007: R31.8 million).This figure includes an administration charge ofR5.1 million to manage the funds.In FY2008, there were more than 5 194 directand 42 102 indirect beneficiaries of thisexpenditure (FY2007: 14 195 and 11 599,respectively) (Note: the significant decrease indirect beneficiaries reported is due to improvedgovernance measures implemented in capturingbeneficiary details and a more strict definition usedfor direct beneficiaries.)The IBTThe IBT started formal operations in 2008.Implats and the RBN entered into an agreementfor the formation of the trust to facilitate andcontribute to the social and economicdevelopment of the people residing in theBojanala District of the North West Province. InFY2008, both parties contributed R6 million tothe IBT, of which R10.4 million was allocated toprojects and R1.6 million spent on administration.In fulfilling its mission, the IBT will partner withrelevant stakeholders in the region to facilitate theadvancement of the people living and working inthe area, and specifically to support education,health, income generation, sports andinstitutional capacity development initiatives thataddress the most urgent social and economicchallenges being faced by these communities.The IBT will also focus on the advancement andempowerment of women through these activities.In terms of its mandate the IBT will focus on theRBN villages and communities where ImpalaRustenburg operates (40%), the Bojanala District(excluding Rustenburg and RBN villages) (25%),Rustenburg (25%), and North West Province ingeneral, excluding the Bojanala District (10%).ICDT expenditure(R million)Programmatic focus of the IBT(FY2008)45352515504 05 06 07 08Education 22%Health 22%Sports development 16%Income generation 11%Institutional capacity 10%Discretionary 4%IBT administration 15%50 Corporate Responsibility Report 08

Programmatic focus of the ICDT(FY2008)Programmatic focus of the ICDT(FY2008)Head office 19.9%Labour sending area-– NW Province 6.2%Labour sending area– Outside NW Province 9.4%Mine lease and Rustenburg 50%Springs – Gauteng Areas 16.0%Marula 6.7%Leeuwkop 1.4%Black male 7%Black female 16%Black youth male 36%Black youth female 36%Other 4%Disabled 1%Impala RustenburgKey principles guiding the IBTThe IBT seeks to support strategic initiatives that are complementary to those being implementedby government, government agencies, private companies, CBOs and NGOs. In addition, theIBT will take the following key principles into consideration when reviewing and engaging inselected projects or programmes:• compliance in terms of the legislative environment, particularly the areas falling under the DMEand the Department of Trade and Industry;• local and municipal initiatives, including alignment with the Integrated Development Plans (IDPs)of local government and engaging with their projects and programmes;• level of visibility and impact to ensure that the contributions of the IBT are seen in the communityin terms of real social and economic change for the better;• acknowledgement of partners and mutual understanding, respect, trust, responsibility andaccountability in the knowledge that social and economic transformation is beyond the scopeof donors alone; and• championing accountability and professionalism both internally and externally.ZimbabweIn Zimbabwe, corporate social investment expenditure is focused primarily on the areas ofeducation and health. Zimplats spent in the region of $400 000 and Mimosa some $265 000.Corporate Responsibility Report 0851

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Impala Rustenburg’s local economic development projectsAs part of Impala’s commitment to its SLP, the company has initiated a number of projects in theare of operation, in the Bojanala, Taung, Ganyesa regions and Eastern Cape, an area fromwhich many employees are drawn. Some of these projects include:Mine area and Bojanala• Macharora Hydroponic Tomato Project – Identified by the community of Macharora, afeasibility study has indicated that it is not viable. R1 125 000 has been allocated to anagricultural project to be identified.• Serutube Mafika Piggery Project – Initiated by members of the community, this project has alsobeen supported by the Royal Bafokeng Administration, which is providing a portion of land forthe project. R736 000 has been allocated to this project.• The Reach Project, the Post Matric Project, Ambulance and clinic facility donation andVuk’uzenzele Primary School are discussed on page 56.Taung• Reivilo Bakery – A feasibility study has indicated that this project could be sustainable.R1 450 000 has been allocated to this project.• Learnerships and bursaries programme discussed on page 56.Ganyesa• Sports For All Franchise – Undertaken in conjunction with the Kagisano Local Municipality at acost of R550 000, this project provides children with access to sport in a safe environmentand has created employment and a sustainable black-owned business.Eastern Cape• The Libraries Project in Lusikisiki and Flagstaff, at a cost of R519 367. Undertaken inconjunction with and co-funded by the OR Tambo district municipality, the project aims toimprove literacy levels and to improve the quality of life;• Bursaries and learnerships discussed on page 56;• Construction of additional buildings at the Mbadango School in Umthatha at a cost ofR559 000. The project was identified by the Department of Education and is being jointlyfunded. The extensions include four new classrooms, an ablution block and administrationfacilities;• Planning for the construction of a new school at Ngcubeni Junior Secondary School inUmthatha in a a joint venture with the Department of Education;• The Essential Oils project in Umthatha originally initiated by the DME. This project is in thebusiness plan phase and will commence once proved to be viable;• Rehabilitation of quarries in Umthatha, a project identified by SAWIMA (South African Womenin Mining Association). A feasibility study has been undertaken; and• A poultry project in Lusikisiki, in collaboration with the OR Tambo district municipality.R500 000 has been spent to date.Corporate Responsibility Report 0853

Socio-economic development (continued)MarulaLocal economic development projects at MarulaMarula Platinum has engaged extensively with stakeholders around the mine in identifying andinitiating local economic development projects around the mine. Five key projects wereprogressed during the year, namely:• The company had committed R3 million for infrastructure development at the Makgamathu andMohlalamorudi Secondary Schools. The project is currently on hold as the community still needsto approve these schools recommended by the Limpopo Department of Education.• An agriculture project (poultry and piggery) to support poor women in the greater TubatseMunicipality. A feasibility study indicated that this project would not be feasible, however, anda new project is being identified;• Water and electricity supply in the Greater Tubatse Municipality to 1 900 households over aperiod of five years at a cost of some R30.7 million;• Community sports initiative which involves the provision of sporting facilities on the Marula farms(at Winnaarshoek, Driekop, Clapham, Mashishi, Kgwete and Magabaneng) at a cost ofR1.6 million; and• The identification and support of a business partner to assist the local community in extractingand marketing chrome from tailings.54 Corporate Responsibility Report 08

Impala local economic development projectsImpala Springs supported a number of the LED projects during FY2008. These are some ofthe projects:Zivuseni Poultry FarmingThis co-operative started to operate in August2005. It was formed by 11 black unemployedyouths, four male and seven female. The main focusis to engage youth in agriculture and provide themwith technical specialised management training.The youth will attend business management coursesand the department of agriculture will assist withfarming skills and training.Community Skills Development ProjectThe Community Skills Development Project issituated in Ward 72, an informal settlement behindImpala Refineries. The project provides training inplumbing, bricklaying, carpentry and other skillsthat will provide the learners with the knowledge toempower themselves and earn a living.Nokuphila Community ServicesNokuphila Community Services provides care andsupport for people infected and affected byHIV/AIDS in the community of Kwa-Thema,Springs. The centre also provides relief services toorphans and vulnerable children as a result of thedisease. A contribution of R450 000 was madetowards the renovations of the day care centre.Nigel Caring CommunityNigel Caring Community was formed in 1999due to the serious need for professional help forpeople living with HIV/AIDS in the area. It wasestablished as a home-based care centre and hasevolved to provide for the needs of the peoplesuffering from this pandemic.New Image Rover CrewNew Image Rover Crew (NIRC) in Kwa-Thema isa non-profit organisation that was established in1997 with the aim of providing HIV/AIDSawareness and prevention campaigns. The projectis targeted at primary and secondary schools,tertiary institutions, corporate organisations,prisons, churches and the community at large.NIRC’s focus is providing professional home-basedcare to terminally ill people living with HIV/AIDSand other chronic illnesses in partnership with thehealth department.Oasis Rover CrewOasis Rover Crew is an initiative started by youngpeople living in Kwa-Thema in response to theHIV/AIDS pandemic affecting this community,particularly the youth and young adults. Thepurpose of the organization is to addressHIV/AIDS prevention programmes, STIs, TB andhome-based care. Oasis Rover Crew started adrop-in centre two years ago to assist the youthmostly who are at primary school level with theirhomework.Our NestOur Nest is a stimulation centre for the severelymentally disabled children in Springs. Implatsdonated a computer, office equipment, a washingmachine, fixed the carport and painted thefencing around the home.Katlego Ka TshepoKatlego Ka Tshepo is an NGO which providesday care for the orphaned and vulnerablechildren, home-based care and support groupservices. Katlego‘s day care centre for toddlershad a park home which was destroyed by thestrong winds in December 2007. Implats donatedanother park home to the centre for over 80children accommodated by the centre.Bakerton Abet CentreOver the past few years, Bakerton Abet Centrehas focused on providing skills training to thecommunity of the previously disadvantaged adultswho never had the opportunity to go to school. Atotal of 13 facilitators are temporarily employedby the centre.Môrester Primary SchoolMôrester Primary School, on the border of Benoniand Springs, has approximately 833 learnerswhich come from informal settlements in the areaas well as in the townships of Daveyton, Kwa-Thema and Tsakane. Impala donated money forthe renovation of the primary school’s mediacentre, as well as a scanner and some books.Corporate Responsibility Report 0855

Socio-economic development (continued)ProjectsSome of the projects that Implats has sponsoredduring the year under review are reported as casestudies on the website at www.implats.co.za.These are:Mafaseng - Formed in 2007 to outsource theconstruction and maintenance section of theUtilities and Technical Services Department atImpala Rustenburg, responsible for carpentry,painting, plumbing and glazing services.Badirammogo – Formed after the decision tooutsource kitchen services, responsible for cleaningand providing refreshments for Minpro visitors.Serole Cleaning Services – Formed to managethe change houses at Impala.Ithabeleng Food Services – An empowermentcompany responsible for the effective running ofthe canteens at Impala’s Rustenburg operations.Luka multi-purpose sports facility – A sportsfacility established for the Rustenburgcommunities where Implats operates.Ambulance and clinic facility donations – Anambulance was donated to the Kanana communitynear Impala’s 16 shaft. Clinic equipment includingan ambulance was donated to Kanana and Lukaclinics to the value of R500 000.Learnership and bursary programme – Socialand Labour Plan commitment to sponsor studentsevery year from the areas from which Implatssources its labour.Reach project – Support programme for schoolsin historically disadvantaged communitiesaround Impala. The project assists learners whoperform well in Maths, Science and English togain access to related higher education andcareers.Post matric project – The programme is designedto support engineering- and science-orientatedmatric students to progress to higher educationand succeed at tertiary level.Woodchips project – Woodchips are remnantsof the timber packs used as support inunderground mining operations. The project aimsto create employment for the locals and care forthe environment by using waste product for aneconomic purpose.Vuk’uzenzele Primary School – Situated next toImpala Platinum’s 9 shaft hostel in Freedom Park,Rustenburg. Impala Platinum and the North WestDepartment of Education made available the sumof R10 million for the construction ofVuk’uzenzele Primary School.Impala Rustenburg56 Corporate Responsibility Report 08

Product responsibilityImplats primary products are PGMs and nickel,which are produced in a variety of forms, frombars to powder. In addition, sulphuric acid isproduced as a by-product.All products are provided to customers from thePrecious Metals and Base Metals Refineries,based in Springs in South Africa. The products areprovided to both end users and intermediaries.A systematic effort has been made to address thesafety, health and environmental issues at allstages of the life cycle of the product and specificinterventions to protect the health and safety ofthose involved in using or delivering theseproducts are in place. Procedures for assessingand improving product health and safety are inplace during conceptual development; researchand development; product certification;manufacturing and production; marketing andpromotion; storage distribution and supply; useand service; and disposal, use or re-cycling.During FY2008, there were 24 incidents of noncompliancewith regulations largely concerningproduct labelling. All of these were resolved tothe customers’ satisfaction.The majority of the materials and productsdispatched from the group’s operations do not poseany health or safety risk. The exception is sulphuricacid, which is transported by road from MineralProcesses at Impala Rustenburg to the ImpalaRefineries in Springs. Protocols governing thetransportation of hazardous materials are adheredto, including comprehensive labelling withinformation relating to the content of the containers,safe use of the product and its safe disposal. Noincidents were reported during the year.Extensive product safety protocols are publishedon the Implats website at www.implats.co.za.Contribution to revenue by metal(FY2008)Platinum 53%Rhodium 29%Nickel 7%Palladium 6%Other 5%Corporate Responsibility Report 0857

Environmental performanceKey features• Impala Rustenburg and Springs,Mimosa and Zimplats maintainedISO14001 certification• No significant incidents or fines• Emission of SO 2 rose by 39%• Total water consumption rose by 36%to 45 million kl• Total water withdrawn rose by 19.5% to26 million kl• Total energy consumption rose by 3%ManagementImplats is mindful of the potential impact thatits prospecting, mining, smelting and refiningoperations may have on the environment inwhich it operates and, as a minimum, ensureslegislative compliance.The SHEQ Audit Committee of the Boardoversees the direction of environmental issues,and environmental performance is reported tothis committee on a quarterly basis. During theyear, a group executive to oversee safety, healthand environmental issues was appointed. This isa significant step forward for the group in theintegrated management of environmental issues.The group is committed to achieving zero harmto the environment, with compliance withlegislation as a minimum objective.Environmental management plans (EMPs) are inplace and are being implemented at alloperations and were reviewed and updatedduring the year. Implats is committed to seekingcontinual improvement and an environmentalmanagement system, based on ISO14001 is inplace and forms the basis of this.A total of 66 internal audits and 13 externalaudits were undertaken during the year.Impala’s Rustenburg and Springs operations,Mimosa and Zimplats have all maintained theirISO14001 certification. Marula will begin itscertification process in FY2009.ISO14001 certificationOperation Date of certification Re-certification FY2008surveillance auditImpala Rustenburg May 2003, recertified in June 2006 June 2009 May 2008Impala Springs May 2000. Last recertified in August 2006 April 2009 April 2008MarulaImplementation on an ISO14001-based EMS under way, with certificationplanned for FY2009Mimosa May 2007 September 2010 December 2007Zimplats SMC – October 2004 November 2008 September 2008Ngezi – November 2005 November 2008 September 200858 Corporate Responsibility Report 08

Impala Rustenburg

Environmental performance (continued)ComplianceThere were no significant breaches ofenvironmental laws, regulations or standardswithin the group during FY2008, and no fineswere imposed. A legal compliance audit wasundertaken at Zimplats. No major areas of noncompliancewere recorded.In respect of environmental authorisations, thefollowing is reported:• Despite having submitted all applications, littleprogress has been made towards concludingwater use licences at Impala Rustenburg,Marula and Leeuwkop. This situation reflectsthe capacity shortages experienced by theregulatory authorities and Implats’ experienceis shared by other producers in all sectors.• An Environmental Impact Report (EIR) and EMP forthe smelter expansion were submitted to the NorthWest Department of Agriculture, Conservationand Environment (NW DACE) and the DMEduring the year. A Record of Decision (ROD) wasreceived from NW DACE in July 2008.• Approval by the DME for the Marula MerenskyProject EMP was received during the year, aswas the EMP for the Leeuwkop Project.• DEDET (Department of Economic DevelopmentEnvironment and Tourism) issued a positiveRecord of Decision (ROD) for the MarulaMerensky project.Incident reporting systems have been implemented atall operations although there are some operationalvariations for the categorisation of incidents. As theoverall management platform is developed in thecoming year, so the various systems will beharmonised. Typically, environmental incidents arecategorised into four levels depending on thenature of their impact, namely critical, high,moderate and low. There were no critical impactincidents during the year.The following new key legislation is beingconsidered and plans to ensure compliance arebeing drawn up and implemented by the SouthAfrican operations:• National Environmental Management: AirQuality Act of 2004• National Environmental Management: WasteManagement Bill (expected to be promulgatedin 2008)• New Environmental Impact Assessmentregulations.In Zimbabwe, attention is being given to theimplementation of new regulations and statutoryinstruments under the Environmental ManagementAct, in particular the recently promulgated statutoryinstrument of Atmospheric Pollution Control thatwill require the application for emission licencesand compliance with set emission standards fordust, smoke, gases and fumes.Two Rivers60 Corporate Responsibility Report 08

MimosaStakeholder engagementAn important environmental managementobjective is the establishment and maintenanceof open and constructive relationships with allstakeholders in respect of environmentalperformance. Hotlines, open days, newslettersand community liaison forums all form an integralpart of the communication with stakeholders.PerformanceWhile environmental priorities and the potentialfor environmental risk vary from site to site, thepriorities broadly are focused on preventingpollution (air and water), improving resourceusage (water and energy), good practice inrespect of waste management and landmanagement.Material consumptionThe efficient use of raw and input materials ispromoted both from a cost and environmentalconservation perspective.Primary resources used are water and energywhich are discussed in detail below. Othersignificant raw materials consumed are explosives,oils, grease and grinding media (steel balls) andconsumption is monitored. Cyanide is not used inthe PGMs recovery process.Air quality managementSulphur dioxide (SO 2 ) emissions are the major airquality issue for the group’s smelting and refiningoperations, Impala Rustenburg, Impala Springsand Zimplats.The Rustenburg Smelters’ emission reductionstrategy is based on the management of threecritical components: meeting ambient air qualitystandards, limiting visual emissions and preventingoccupational exposures.Significant capital expenditure has been investedin plant and equipment to limit these emissions,particularly as Impala Rustenburg’s smelterexpansion progresses. The commissioning of thenew installations, as discussed in the previousyear’s report, is on schedule and expected to bein place at the end of calendar 2008. The targetfor the smelting complex, once the new emissionabatement equipment has been commissioned,is less than16t of SO 2 per day.Good progress has been achieved in recentyears in reducing SO 2 emissions at theRustenburg operations, largely owing to thecommissioning of the company’s Sulfacid Plant in2003 and improvements in the availabilities andefficiencies of both the conventional Acid andSulfacid Plants.In FY2008, total SO 2 emissions for the groupamounted to 26 476t, an increase of 39% on theprevious year.The availability of the SO 2 abatement equipmentat the Rustenburg Smelter was good, with anaverage availability of 99.9% at theconventional Acid Plant and 94.7% at theSulfacid Plant. The increase in the total sulphurdioxide emissions is as a result of the increaseddesulphurisation across the furnaces operation.Since the start-up of the third furnace, theresidence time (of material within the furnace) hasincreased, resulting in more SO 2 being releasedby the furnace operations. As a result, more SO 2reported to the Sulfacid Plant, which has a lowersulphur conversion efficiency, resulting in higherCorporate Responsibility Report 0861

Environmental performance (continued)Direct SO 2 emissionsTotal SO 2 emitted/Pt ozTotal kg SO 2 emitted/Pt ozFY2006 FY2007 FY2008 FY2006 FY2007 FY2008Impala Rustenburg 10 863 10 990 18 184 5.79 5.33Impala Springs 637 475 342Zimplats 4 587 7 820 7 951 50.7 81.8Group 16 321 19 053 26 476 8.95 9.49 13.9sulphur emissions. However, gas capture andtreatment over the furnace section will improvesignificantly as part of the smelter upgrade project.Ambient air quality monitoring was upgraded atboth the Impala Rustenburg and Springs operations.The ambient monitoring network at ImpalaRustenburg consists of three ambient monitoringstations that measure meteorological conditions,SO 2 and PM10 (particulate matter smaller than10 microns). In addition to the ambient stations,a comprehensive total dust fallout network isalso maintained.Impala Rustenburg SO 2 emissions(kg SO2/Pt oz)1098765432106 07 08 09 10ActualForecastRustenburg Smelter – Total SO2 Fixated and emitted (July 2006 - June 2008)250200150100500Jul 06Aug 06Sept 06Oct 06Nov 06Dec 06Jan 07Feb 07Mar 07Apr 07May 07Jun 07Jul 07Aug 07Sept 07Oct 07Nov 07Dec 07Jan 08Feb 08Mar 08Tons SO2 emitted/day SO2 Inputs fixated /day Permit target/day (permit)Apr 08May 08Jun 08Current PermitAir emissions (other than SO 2 ) (t)FY2007FY2008Chlorine (Refineries) 1.5 0.1Ammonia (Refineries) 107 268NOx (from electricity consumed by the group) 11 011 11 72962 Corporate Responsibility Report 08

Impala Rustenburg

Environmental performance (continued)The dust fallout network was expanded from 18units to a total of 40 units to include all theoperations as required by the EMP. The threeambient monitoring stations were recommissionedin October 2007 and the graphalongside shows the measured daily SO 2 levelsin the Luka community which is the closestcommunity to the Rustenburg Smelter. Ambientconditions are affected by the cumulative effectof all sources of emissions, not only industrialsources. Monitoring of ambient conditions is oneof the management tools that can be used toidentify and investigate trends. In the case of theone measured daily average above the NationalAmbient Standard, no extraordinary plantcondition was found and therefore the source ofthis spike is probably not the Impala RustenburgSmelter. In addition to this, there was noevidence of a spike at the other two ambientstations so this occurrence was probably due toa very localised emission within the Lukacommunity.Ambient SO2 (ppb) measured in Luka (October 2007 to June 2008)100806040200LukaDaily standard (48 ppb)Ambient air monitoring in the vicinity of theRefineries indicates only minor and infrequentexceedances against permits. The PM10 andNO x levels, for example are lower in adjacentareas than those recorded in the centre ofSprings, the closest city centre. Two further onlinemonitors are being installed, to supplement theonline stack monitoring that was implementedin FY2006.At Marula, the PM10 analysis of the fall-out dustin the vicinity of the mine is well below thestandards set by the authorities. The majorgenerators of dust are the tailings dam and dirtroads leading to the shafts and in the vicinity ofthe shafts.Climate change and greenhouse gasemissionsClimate change and global warming have beenconsidered by various bodies within Implats,specifically the SHEQ Audit Committee and theSHEQ Executive Committee. The focus of thisinitiative has been on understanding andreducing the impact of Implats' own greenhousegas (GHG) emissions and carbon footprint,rather than on external impacts arising fromclimate change and global warming on thegroup.As Implats operations are based in South Africaand Zimbabwe, the group currently has limitedexposure to legislation regulating GHGemissions. However, South Africa, by virtue of itsdependence on electricity generated from fossilfuels, is a significant global emitter of carbondioxide and the DME has begun theimplementation of an energy efficiency strategy.Implats is a signatory to this strategy and includestargets pertaining to the environment andclimate change.The primary risks that the group faces as a result ofclimate change in future include physical risks suchas water shortages (and hence increased costs)and electricity supply shortages and rising costsassociated with cleaner electricity or alternativeenergy (where users pay for cleaner fuel).64 Corporate Responsibility Report 08

Climate change indicatorsFY2007FY2008Direct CO 2 emissions (t)* 396 252 414 132Indirect CO 2 emissions (t) 2 716 235 2 808 766MWh of indirect energy(electricity purchased) 2 777 336 2 931 906Direct energy (GJ) 5 661 377 5 579 858Indirect energy (GJ) 9 998 410 10 554 861Total energy (GJ) 15 659 787 16 134 719* Direct CO 2 emissions as a result of burning fuel (coal, diesel, petrol, IBO, natural gas)** CO 2 emissions from energy purchasedThe group also anticipates that there will beopportunities that will present as the globaldemand for cleaner technology, especially fuelcells, will be of benefit to the platinum industry. Afocus on smaller, more energy efficient dieselvehicles to meet legislative requirements, will seethe demand for PGMs in autocatalysts increasing.During the year Implats submitted a response to theCarbon Disclosure Project (CDP) in respect of theCDP6 Greenhouse Gas Emissions Questionnaire.This response will be published on the CDP’swebsite in due course.Integral to Implats strategy to reduce its GHGemissions, is the group’s strategy to reduce andoptimise its energy usage and energy efficiency.(See discussion below). While the projects andplans that the company is putting in place may notbe directly aimed at reducing GHG emissions, itcertainly will be a beneficial consequence.Key climate change indicators appear in the tablebelow. Total direct CO 2 emissions (as a result ofburning fuel such as coal, diesel, petrol andgases) amounted to 414 132t, 4.5% higher thanthe previous year. Total indirect CO 2 emissionswere 2 808 766t, 3.4% higher than in FY2007.The increase in electricity consumption is as aresult of commissioning of the third furnace atImpala Rustenburg, the fact that the deeperoperations require more ventilation and newshaft developments.A group policy is currently being developed and,once finalised, will be made available on thecompany’s website.Energy managementEnergy management has always been of primeconcern to the group, but became a critical oneduring FY2008 during the national energy crisisin the first half of calendar 2008.Total direct CO2 emissions(000)450350250Total indirect CO2 emissions(000)3 0002 5002 0001 500Sources of direct CO2 emissions(FY2008)1505004 05 06 07 081 00050004 05 06 07 08Petrol 0.7%Diesel 18.5%Coal 78.4%LPG/Sasol gas 0.7%IBO 1.7%Corporate Responsibility Report 0865

Environmental performance (continued)the short-term 10% reduction in electricity orindirect usage and the medium-term 15%reduction in total energy.Direct34.6%7.0%0.3%0.6%0.4%26.3%Indirect65.4%Implats is a signatory to the DME’s EfficiencyAccord in terms of which the company pledgeda 15% decline in total (direct and indirect)energy demand from the 2000 baseline to2015. In early 2008, Eskom, the nationalpower utility, imposed a 5% permanent reductionin electrical (indirect) energy allocation. Giventhe group’s expansion plans, this has seriouslong-term implications.The group has established an internal workingcommittee to develop and implement an energyand load management programme that will meetTotal energy consumption (which includes directand indirect energy) rose by 3% to 16.14 millionGJ in FY2008. Energy consumption per ounce ofplatinum produced was 8.5GJ, an increase of9.5% per platinum ounce produced.Water managementImplats recognises that water is a scarce andvaluable resource, and pressure on supply may befurther exacerbated by the effects of climatechange. The company’s strategy involves thereduction of water consumption, the optimisationof recycling and the mitigation of any negativeimpacts of its operations on local and regionalwater resources.Water usageTo optimise water usage and minimise freshwater consumption at the Rustenburg operations,water conservation programmes includemaximising the recycling of water within thecompany’s operations and by drawing treatedeffluent into the processing facilities from theRustenburg Services Trust. The recycling of waterfrom the tailings operation will further improvewith additional stormwater storage dams at thetailings and UG2 operation which are going tobe constructed in FY2009.Total water used by the group in FY2008 was45 million kl, an increase of 35.6% on theprevious year. Total water withdrawn amountedto 26 million kl, an increase of 19.5% onFY2007. On a product basis, this was anincrease of 27% to 13.6 kl per platinum ounce.However, fresh water consumption by the groupdecreased by 23.2%.66 Corporate Responsibility Report 08

Total energy consumed (000GJ)FY2007FY2008Impala Rustenburg 10 441 10 875Impala Springs 2 789 2 520Marula 472 613Zimplats 1 468 1 587Mimosa 491 540Group 15 660 16 135Impala RustenburgCorporate Responsibility Report 0867

Environmental performance (continued)Total water consumption (1 000kl)*FY2007FY2008Impala Rustenburg 24 608 29 530Impala Springs 1 310 1 186Marula 2 310** 4 611Zimplats 2 078 6 502Mimosa 2 972 3 286Group 33 278 45 115* 1. Total water consumed includes various sources of water and recycled water* 2. As from 2008 calculation of various water usages was slightly changed to comply with the GRI reporting requirements, thus notall figures are directly comparable with previous years’ data.** Figures updated after reporting period.Recycled water used(000kl and % of total water consumed)Kl recycled% total consumptionFY2007 FY2008 FY2007 FY2008Impala Rustenburg* 7 893 9 719 32 33Impala Springs 457 433 35 37Marula 1 227 3 610 53 78Mimosa 834 1 267 39 39Zimplats 1 148 4 116 40 63Group 11 559 19 145 34 42*Only includes internally recycled water (tailings return and Impala sewage treated effluent)The percentage of water recycled at the Refineries – at 37% – was the highest recorded by thisoperation and reflects the increased management focus on this area of operation. The total waterconsumption at the Rustenburg, Marula, Zimplats and Mimosa operation increased as a result of moreaccurate water balances.68 Corporate Responsibility Report 08

Impala Rustenburg

Environmental performance (continued)At Mimosa, the construction of a second returnwater dam is in progress to reduce spillages andto ensure the availability and use of return water,thereby improving the level of recycling andreducing fresh water usage.Surface and groundwater qualityThe primary concern in respect of water pollutionis the potential release of process watercontaining sulphates, chlorides and nitrates intoreceiving water bodies. None of Implats’operations are associated with acid drainage.Groundwater and surface sampling is regularlyundertaken at all operations. A regionalgroundwater model developed in 2003 for theRustenburg operations is updated regularly andis being used as a management tool forgroundwater problem identification and pollutionmitigation design should this become necessary.See box on page 71.The construction of pollution control dams atImpala Rustenburg’s UG2 Concentrator complex,and the No 3/4 tailings dams, which forms partof the water strategy’s objective of improvingwater quality in receiving water bodies, byminimising discharges, will be completed inFY2009.Capital expenditure of R60 million has beenallocated for water-related projects to beimplemented over the next three years.As part of the expansion at the refineries, anadditional pond will be constructed at ImpalaSprings, to manage effluent and prevent anyspillages into water courses. Applications for thenecessary permits were submitted to theauthorities for this during the year.At Marula, the monitoring of the surface waterby means of chemical analysis is continuing ona monthly basis.Land and biodiversity managementThe group has significant areas of land undermanagement, some 94 022ha excludingLeeuwkop and prospecting activities.Closure plans have been developed for ImpalaRustenburg and Zimplats.During the year, a number of houses immediatelyadjacent to the Impala Refineries were purchasedand demolished to create a “green belt”.RehabilitationPhysical rehabilitation activities continued during theyear at Impala Rustenburg, Marula, Mimosa andZimplats. Opencast mining areas at ImpalaRustenburg and at Zimplats are also beingrehabilitated as mining progresses. During FY2008,a total area of 68.4ha was rehabilitated.During FY2008, the Rustenburg operationsstarted the rehabilitation of historical waste sites.The identified sites (five in total) will berehabilitated by the end of FY2009 at anapproximate cost of R8 million covering acombined area of 29ha.An overall group rehabilitation strategy is beingdeveloped.Biodiversity managementApart from the Ngezi mine, none of the group’soperations are located in protected areas or inareas of high biodiversity value. The Ngezi mineis located in a national park. Red data speciesare located in the vicinity of the Marulaoperations and are catered for in Marula’s EMP.Two endemic tree species were identified in theMarula area: Sekhukhune Elephant Root andRed-berry Grey Karee.A Biodiversity Action Plan is currently beingdeveloped for Impala Rustenburg. Theprogramme will identify any threatened speciesand habitats and is designed to protect and70 Corporate Responsibility Report 08

estore biological systems within the mining area.It will require a partnership with the localauthorities to work towards regional biodiversitytargets. The plan will be fully implemented byFY2011. See box on page 72.Impala Springs is a corporate trustee of theBlesbokspruit Environmental Centre, just outsideSprings. The centre, which providesenvironmental education to schools andcommunities, is located near a wetland site.Impala RustenburgGroundwater model provides valuable insightIn 2003, Impala Rustenburg commissioned the development of a comprehensive regionalgroundwater model for the extent of its operations to:• Determine potential, current and future impacts on groundwater quality and levels.• Identify problem areas and design mitigation measures when required.• Improve and refine existing monitoring networks.This model is reviewed and updated regularly, based on borehole water levels and quality datagenerated on an ongoing basis. It has allowed Impala to implement a more effective ground andsurface water management programme as areas with a potential impact could be identified andcontrol measures proactively put into place. It is possible to design effective mitigation measuresas the impact is better understood.Corporate Responsibility Report 0871

Environmental performance (continued)Impala RustenburgBiodiversity Action Plan under development for ImpalaImpala Platinum’s Rustenburg operation has begun the development of a Biodiversity Action Plan(BAP), which will be compiled over a four-year period. As an adjunct to this, will be thedevelopment of a Heritage Action Plan, which will begin in 2009.A BAP is an internationally recognised programme addressing threatened species and habitatsand is designed to protect and restore biological systems. The original impetus for these plansderives from the 1992 Convention on Biological Diversity (CBD) which, by 2006, 188 countries(including South Africa) had ratified.Developing the BAPA crucial element of any BAP is that while it consists of the action plan for a specific area, it isprimarily a partnership with government, that works together toward achieving biodiversity targetscommitted to by the government. This then enables government to develop policy, target prioritiesand access funding for biodiversity conservation action steps.A BAP includes:• preparing inventories of biological information for selected species or habitats;• assessing the conservation status of species within specified ecosystems;• creation of targets for conservation and restoration; and• establishing budgets, timelines and institutional partnerships for implementing the BAP.72 Corporate Responsibility Report 08

Impala RustenburgDeveloping the heritage action planThe plan also needs to be developed and consists of various specialist impact assessments whichare used to identify sites that are protected in terms of the National Heritage Resources Act andto assess the potential impact upon them.The information gathered is used to develop actions plans to mitigate and manage all identifiedsites of importance.Scope of the projectOwing to the size of the current mining area at Impala, as well as the fact that very littleinformation exists for the lease extension and prospecting areas, the scope will include allprospecting operations adjacent to the current mining area.To assist with the interpretation and implementation of the above-mentioned action plans, a GeographicInformation System (GIS) is being established. This is a computerised tool for managing geographicinformation and is currently widely used to assist with the implementation of these types of projects.ComplianceA Biodiversity Action Plan will not only ensure legal compliance with current environmentallegislation, but will also further align Impala with the concept of sustainable development. TheNational Heritage Resources Act also states that no site protected under this Act may be disturbedwithout a permit. It therefore requires a full assessment of the entire Rustenburg operations toidentify any possible significant sites and to assess the potential, current and future impact ofdevelopment on these areas.Corporate Responsibility Report 0873

Environmental performance (continued)Waste managementWaste management strategies have beenimplemented at all operations. A wastemanagement module is being implemented aspart of the SAP management programme, whichwill assist in the improved management andminimisation of waste. This was unfortunatelydelayed during FY2008 and will be an area offocus in FY2009.During the process of mining, significant amountsof ore (that is minerals-bearing material) andwaste rock are brought to surface and processedto extract the precious metals. Waste rock andtailings (the slurry left behind when the mineralsconcentrate is sent on for further processing) aredeposited on surface in waste rock dumps andtailings dams respectively.These dumps represent a potential source ofground and surface water contamination.Programmes which include landscaping andvegetation, as appropriate to the area ofoperation and designated land use are in placeto minimise this impact.Key production statisticsFY2007FY2008Ore milled (000t) 21 564 21 247Tailings disposed of ontailings dams (000t) 17 413 19 162Dump slag treated (000t) 302 365Furnace and converter slag generatedand treated (000t) 842 903Total slag treated (000t) 1 208 1 268Platinum produced (000oz) 2 026 1 865Marula74 Corporate Responsibility Report 08

Impala RustenburgWoodchips and sewage sludge from theRustenburg operations continue to be collected forthe manufacture of compost by Monontsha, acommunity-based business. This is then used in therehabilitation of the tailings dam slopes. An areaof 34,8ha was rehabilitated during the year.The Refineries in Springs generates two wastestreams that are disposed of in landfills: salt isgenerated by the Precious Metals Refinerycrystalliser which came into full operation inFebruary 2007. By the end of FY2008, a totalof 5 000t had been disposed of. Test work intoalternative means of disposal have continuedand expanded.Boiler ash is the largest waste stream, and waspreviously not accounted for. Some 27 000t wasproduced during the year, and was used forbrick manufacturing.Rehabilitation provisionsThe rehabilitation provisions and liabilities areindicated in the table below.Rehabilitation liabilities and provisions (R million)Rehabilitation liabilityRehabilitation provisionFY2007 FY2008 FY2007 FY2008Impala Rustenburg* 498.8 540.2 213.4 227.0Marula* 63.1 69.7 21.1 36.2Zimplats 102.2 121.9 87.3 51.2Mimosa 11.6 13.7 8.3 9.7Group 675.7 745.5 330.1 324.2* In line with financial requirementsNote: There no legislation in place to regulate rehabilitation liabilities and provisions for Impala Springs.Corporate Responsibility Report 0875

Reporting in line with the GRIApplication levelGRI requires that the company self-declares an application level ranging from C, B to A. Therequirements to these levels are indicated below. The + symbol indicates external assurance. Implatshas declared a B+ level of reporting and this has been verified by a third party assurance providerImplats has also indicated its intention to seek GRI confirmation of this level of reporting.GRI Reporting IndexReport Application LevelG3 profiledisclosuresCReport on:1.1, 2.1 – 2.10, 3.1 – 3.8,3.10 – 3.12, 4.1 – 4.4, 4.14 – 4.15G3 managementapproach disclosuresG3 performanceindicators and sectorsupplementperformance indicatorsNot requiredReport on a minimum of10 performance indicators,including one from each ofsocial, economic and environmentBReport on all criterialisted for level C plus:1.2, 3.9, 3.13, 4.5 – 4.13,4.16 – 4.17Management approach disclosuresfor each indicator categoryRespond on a minimum of 20performance indicators, includingone from each of economic,environment, human rights, labour,society, product responsibilitycategoriesASame as requirement for Level BManagement approach disclosuresfor each indicator categoryRespond on each core G3 andSector Supplement indicator withdue regard to the principal ofmateriality by either: a) reportingon the indicator or b) explaining thereason for this omission76 Corporate Responsibility Report 08

Vision & strategyStrategy and analysis1.1 IFC1.2 IFCOrganisational profile2.1 P42.2 P52.3 P42.4 P42.5 P42.6 P42.7 P72.8 P182.9 IFC2.10 P40Report profile3.1 IFC3.2 IFC3.3 IFC3.4 IFCReport scope and boundary3.5 IFC3.6 IFC3.7 IFC3.8 IFC3.9 Throughout the report3.10 Throughout the report3.11 IFCGRI content index3.12 P78Assurance3.13 P14Governance,commitmentsand engagement4.1 P74.2 AR4.3 AR4.4 AR4.5 AR4.6 AR4.7 AR4.8 P24.9 P7, AR4.10 ARCommitment to externalinitiatives4.11 NR4.12 NR4.13 NRStakeholder Engagement4.14 P12-134.15 P12-134.16 P12-134.17 P12-13EconomicCoreAdditionalEconomic PerformanceEC1P18EC2P64EC3NAEC4NAMarket PresenceEC6 P23 EC5EC7NRIndirect economic impactsEC8 P48 to P56 EC9 Throughout the reportEnvironmentalMaterialsEN1P61EN2NREnergyEN3 P66 EN5 NREN4 P66 EN6 NREN7 NRWaterEN8 P68 EN9 NREN10 P68BiodiversityEN11 P72 EN13 P72EN12 P72 EN14 P72EN15 P72Emissions, Effluents and WasteEN16 P65 EN18 P64EN17 NR EN24 NREN19 NR EN25 NREN20P64EN21NREN22NREN23P60Products and servicesEN26NREN27NRComplianceEN28P24TransportEN29NROverallEN30NRSocialEmploymentLA1 P28 LA3LA2P28Labour/management relationsLA4P32-P33LA5NROccupational health and safetyLA7 P36-P44 LA6 P37LA8 P45-P47 LA9 P37Corporate Responsibility Report 0877

Reporting in line with the GRI (continued)Social (continued)CoreTraining and educationAdditionalLA10 P32 LA11 P33Diversity and opportunityLA13P31LA14NRStrategy and managementLA12P33HR1 P34 HR3 NRHR2P34Non-discriminationHR4P34Freedom of association and collective bargainingHR5Child labourHR6P34P34Forced and compulsory labourHR7Security practicesIndigenous rightsCommunitySO1CorruptionSO2SO3SO4Public policyP34P48-P56NRNRP24HR8HR9SO5 P24 SO6Anti-competitive behaviourSO7ComplianceSO8P24P24Customer health and safetyPR1 P57 PR2 P57Products and servicesPR3 Website PR4 P57PR5NRMarketing communicationPR6 NA PR7 NACustomer privacyPR8CompliancePR9NAP24NRMining sector supplementMM1NRMM2NRMM3P70MM4NRMM5NRMM6NRMM7NRMM8NAMM9NRMM10NALegendIFC Inside front coverAR Annual ReportNA Not applicableNR Not reported78 Corporate Responsibility Report 08

Mining Charter complianceNo Description Compliance PageI1. Human resource developmentHas the company offered every employee the opportunity to be yes 32functionally literate and numerate by the year 2005 and areemployees being trained?Has the company implemented career paths for HDSA employees yes 32including skills development plansHas the company developed a system through which empowerment yes 32groups can be mentored?2. Employment equityHas the company published its employment equity plan and reported yes 31on its annual progress in meeting that plan?Has the company established a plan to achieve a target for HDSA yes 31participation in management of 40% within five years and is itimplementing the plan?Has the company identified a talent pool and is this being fast tracked? yes 31Has the company established a plan to achieve the target for the yes 31participation of women in mining of 10% within five years and is itimplementing the plan?3. Migrant labourHas the company subscribed to government and industry agreements to yes 32ensure non-discrimination against foreign migrant labour?4. Mine community and rural developmentHas the company co-operated in the formulation of integrated yes 48-56development plans and is the company co-operating with governmentin the implementation of these plans for communities where mining takesplace and for major labour-sending areas? Has there been effort on theside of the company to engage the local mine community andcommunities in major labour-sending areas?5. Housing and living conditionsFor company provided housing, has the mine, in consultation with yes 30stakeholders, established measures for improving the standard ofhousing, including the upgrading the hostels, conversion of hostels tofamily units and promoted ownership options for mine employees?Companies will be required to indicate what they have done to yes 30improve housing, show a plan to progress the issue of over time andwhether such a plan is being implemented?For company-provided nutrition, has the mine established measures for yesimproving the nutrition of mine employees? Companies will be requiredto indicate what they have done to improve nutrition and show a planto progress the issue over time and whether such a plan is beingimplementedCorporate Responsibility Report 0879

Mining Charter compliance (continued)No Description Compliance PageI6. ProcurementHas the mining company given HDSA preferred supplier status? yes 21Has the mining company identified current levels of procurement from yes 21HDSA companies in terms of capital goods, consumables and service?Has the mining company indicated a commitment to progress of yes 21procurement from HDSA companies over a three-year to five-yeartime frame in terms of capital goods, consumables and service and towhat extent has the commitment been implemented?7. Ownership and joint venturesHas the mining company achieved HDSA participation in terms of yes 19ownership for equity or attributable units of production of 15% HDSAhands within five years and 26% in 10 years?8. BeneficationHas the mining company identified its current level of benefication? yes 23Has the mining company established its baseline level of benefication yesand indicated the extent that this will have grown in order to qualify foran offset?9. ReportingHas the company reported on annual basis its progress towards yesachieving its commitments in its annual report?Impala Rustenburg80 Corporate Responsibility Report 08

Reporting in line with the UN Global CompactNo Principle Page1. Businesses should support and respect the protection 34of internationally,proclaimed human rights within theirsphere of influence;2. Make sure they are not complicit in human rights abuses. 343. Businesses should uphold the freedom of association and the 34effective recognition of the right to collective bargaining.4. Businesses should uphold the elimination of all forms of forced 34and compulsory labour5. Businesses should uphold the effective abolition of child labour 346. Businesses should uphold the elimination of discrimination in 34respect of employment and occupation.7. Businesses should support a precautionary approach to 58-75environmental challenges8. Businesses should undertake initiatives to promote greater 58-75environmental responsibility9. Businesses should encourage the development and diffusion of 61environmentally friendly technologies.10. Businesses should work against corruption in all its forms, including 24extortion and bribery.Impala RustenburgCorporate Responsibility Report 0881

Glossary of terms and acronymsABETAIDSARTBEECBOCO 2dB DecibelsDMEDWAFEIAEMPEMSESOPFIFRFOGFYGJGRIHDSAHIVIBTICDTIDPILOImpala PlatinumImplatsAdult Basic Education and TrainingAcquired immune deficiency syndromeAnti-retroviral therapyBlack economic empowermentCommunity-based organisationCarbon dioxideUnit of measurement for soundDepartment of Minerals and Energy, South AfricaDepartment of Water Affairs and Forestry, South AfricaEnvironmental Impact AssessmentEnvironmental Management ProgrammeEnvironmental Management SystemEmployee Share Ownership ProgrammeA rate expressed per million man hours of any Impala employee,contractor or contractor employee or visitor who is involved in anincident whilst performing his duties at work and who sustains terminalinjuries shall constitute a fatal accident. Any road related fatal accidentwhere the company is in full control of the vehicle, the driver andconditions related to the road injury of an employee shall constitute afatal. A fatal injury may occur when an employee is incapacitated for aperiod of time prior to expiration, thus requiring a revision of injury statusfrom LTI to fatality.Fall of groundFinancial year (to 30 June)Gigajoules – unit of measure for energyGlobal Reporting InitiativeHistorically disadvantaged South AfricanHuman immuno-deficiency virusImpala Bafokeng Trust, socio-economic development vehicle jointlyfunded by Implats and the RBNImpala Community Development Trust, vehicle for socio-economicdevelopmentIntegrated Development PlanInternational Labour OrganizationImpala Platinum Limited, comprising the Rustenburg operations andthe Refineries in SpringsImpala Platinum Holdings Limited82 Corporate Responsibility Report 08

ISOLTIFRMarulaMimosaMining CharterMPRDAMTCMWNGONIHLNUMPGMsppmSEDSETASHEQSLPSMMEsSO 2TBUASAVCTWHOInternational Organization for StandardisationA rate expressed per million man hours for a work-related injury thatresults in the employee being unable to attend work, at his/her place ofwork, performing his/her assigned duties, on the next calendar day(whether a scheduled work day or not) after the day of the injury. If theappointed medical professional advises that the injured person is unableto attend work on the next calendar day after the injury, regardless ofthe injured person's next rostered shift, a lost time injury is deemed tohave occurred. Lost time injuries include reportable and fatal injuries.Marula Platinum (Pty) LimitedMimosa Platinum (Private) LimitedBroad-based Socio-economic Empowerment CharterMineral and Petroleum Resources Development Act, 28 of 2002, whichcame into effect in South Africa on11 May 2004.A medical treatment case is defined as a one-time treatment andsubsequent observation of minor injuries by a physician, occupationalhealth practitioner or other medical professional. Such minor injuriesinclude the application of bandages, antiseptic, ointment, irrigation ofeye to remove non-embedded foreign objects or the removal of foreignobjects in a wound by using tweezers. MTCs may involve minor loss ofconsciousness, restriction of work or motion, but never involves a loss ofone or more calendar day after the injury, regardless of the injuredperson's next rostered shift.MegawattNon-governmental organisationNoise-induced hearing lossNational Union of Mineworkers, South AfricaPlatinum group metalsParts per millionSocio-economic developmentSector Education and Training AuthoritySafety, health, environment and qualitySocial and Labour PlanSmall, medium and micro enterprisesSulphur dioxidePulmonary tuberculosisUnited Association of South AfricaVoluntary counselling and testingWorld Health OrganizationCorporate Responsibility Report 0883

Details and administrationRegistered office and Secretary2 Fricker RoadIllovo, 2196Private Bag X18Northlands, 2116Telephone: +27(11) 731 9000Telefax: +27(11) 731 9254Website: www.implats.co.zaInvestor Relations QueriesInvestor queries may be directed to:investor@implats.co.zaSustainable Development QueriesSustainable development queries may bedirected to:cindy.mogotsi@implats.co.za84 Corporate Responsibility Report 08

Russell and Associates

www.implats.co.za