ENVIRONMENTAL , SOCIAL AND GOVERNANCE •

SM : In the panel discussion , the point was raised that communities have a responsibility and must show accountability when it comes to managing funds that are allocated by operations for the benefit of communities . What has Exxaro put in place to ensure that funds allocated to the community , do in fact reach the correct end destination and ‘ power better lives ’ for host communities ?

MM : The community benefit structure that Exxaro has is one that is still internally managed to make sure that the community benefits . Many other industry structures have community members being represented on trusts within those bodies . History has shown us that funds can sometimes be misappropriated in these instances and structures remain dormant and ineffective and the community does not necessarily benefit as it should do . This is why the Exxaro investment in the community is managed from within , however with the presence of an independent representative .

SM : It was also mentioned in the panel discussion that there is sometimes a blurred line between what the government is accountable for at community level and what mining companies are accountable for , and you spoke about your particular drive to talk to government to see where their need is , and then assist them to do what they should be doing . Do you get the right kind of feedback from that kind of interaction once you have invested ?

MM : Absolutely , government cannot do it all alone . What we ' re doing is engaging more than investing and one of the projects that we have proposed is at municipal level through a mentorship programme to provide skills through mentoring and learning on the job in key specialist areas such as finance and project management . This is not just about Exxaro and government in terms of the Waterberg municipal region where Grootegeluk is situated , but it also includes the different layers of government . COGTA is responsible for local government . We ' ve got the district municipality and the local municipality , but we also have other private sector participants nationally . So , the mentors and the mentees , and we ' ve got a great partnership with National Business Initiative ( NBI ) ¹ , who are actually managing this programme . This programme emerged out of the Jobs Summit , called Tamdev . ²

It is a business contribution in terms of specific initiatives to try and improve job creation . For job creation to happen , you need a government that is delivering on its services , and this in turn will inspire the private sector to invest . It is these partnerships that will ensure transparency in ESG , as the partnerships drive accountability .

To conclude , the bottom line is , transparent ESG reporting is a requirement for investors and ESG cannot just be a tick box exercise . It is in implementation at ground level in which the benefits of ESG initiatives must be seen . Transparency and accountability do not only lie with the mining companies , shared responsibility across government , community and the mining sector is vital .

References :

1 . National Business Initiative ( nbi . org . za ): The National Business Initiative ( NBI ) is a voluntary coalition of South African and multinational companies , working towards sustainable growth and development in South Africa and the shaping of a sustainable future through responsible business action , thereby demonstrating business action for sustainable growth .

2 . In July 2019 , the National Business Initiative ( NBI ) was officially appointed as the project champion for the Technical Assistance , Mentorship and Development ( TAMDEV ) Jobs Summit Programme . The overall goal of TAMDEV is to strengthen the capacity of the State , with the aim of improving service delivery and creating jobs . Progress is reported to the Presidency , through Business Unity SA ( BUSA ), on a monthly basis . •

Societal expectations can no longer be ignored , and the youth in particular , in Africa , and indeed globally , will no longer tolerate a lack of consideration for society and the environment .

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