Archive - 2013

Speaking after the release of the financial results, CEO of Kumba Iron Ore, Norman Mbazima stressed that it’s important for the mining industry to make a difference in the lives of all our stakeholders and share the wealth created, especially with staff and host communities.

“Our long-term profitable growth is linked intrinsically to our ability to deliver on our social and environmental objectives. Kumba has worked to deliver a meaningful impact on South Africa that goes beyond its corporate contribution to the mining industry. We continue to strive for job creation, skills development and a new standard of safety and operational excellence in our work. However, in addition to all of this, we seek to achieve real transformation in our workforce and within the communities around our mines.”

STAKEHOLDER EMPOWERMENT HIGHLIGHTS

• R3.6 billion paid to the South African Government in taxes and royalties.
• Returned over R5 billion to shareholders: R4 billion to Kumba shareholders and R1.1 billion to Sishen Iron Ore Company (S IOC) BEE shareholders.
• SIOC in its interim dividend for 2013 will return R2.3 billion to its empowerment shareholders, bringing the total returned since listing to over R19 billion.
• The SIOC Community Development Trust, which holds an unencumbered 3% interest in SIOC, valued at over R6 billion, will receive R262 million for its community development projects.
• In the first quarter of this year, the SIOC Community Development Trust used its dividends on 140 projects, which include 31 new approved projects this year, benefitting 361 000 people in the communities around our mines.
• R310 million spent on housing in 1H13; R2.2 billion spent since 2006.
• R77 million on education, early childhood development, skills development, health and welfare, enterprise and infrastructure development – in line with government’s objectives and priorities.

“Envision, our broad based success story, which we at Kumba are immensely proud of, continues to add significant value to employees. They continue to share the benefits of SIOC’s performance through dividends. With this dividend, Envision will receive R271 million, of which R95 million will flow to almost 6 600 employees, around R12 000 each, after dividend withholding tax,” Mbazima continued.

Kumba remains the largest private sector employer in the Northern Cape with the vast majority of staff coming from local communities.

Mbazima said that the employee relations environment in the mining industry remains difficult.

“We will continue to actively engage with our employees and their representatives in this coming period. We are pleased that following the unprotected strike last year, our labour environment at Kumba stabilised in the first six months and we were fortunate not to have been affected by the labour unrest seen in the mining industry this year. We concluded a two year wage agreement in July 2012 and will therefore not be negotiating remuneration this year.”

“With markets and our operations permitting, we will be able to continue our work of empowering our employees, their families and broader community groups,” Mbazima concluded.