Pan African Resources PLC - Black Economic Empowerment

Broad Based Black Economic Empowerment (‘BBBEE’)

Pan African Resources is committed to the principles and objectives of BBBEE and reports on it’s achievements on BBBEE per pillar below:

Ownership
In August 2009 Shanduka exchanged its shareholding of 26% in Barberton Mines for 21% of Pan African Resources and in addition bought 5% from Metorex making Pan African Resources 26% owned by the Black owned and controlled Shanduka Resources. The board of the Company has been restructured to include representation from Shanduka Resources.

Overview
Vision & Strategy
Company Structure
Board of Directors
Management
Black Economic Empowerment

Human Resources Development and Employment Equity
The Company complies with the Employment Equity Act and the Skills Development Act and is on track to meet the mining charter scorecard of 40% Black representation at senior and top management at Barberton Mines.

Procurement and Enterprise Development
Pan African Resources supports the development of Small and Medium Enterprises that are Black owned. At Barberton Mines level in the past year 34% of the procurement budget was spent with Black enterprises.

Community Development and Corporate Social Investment
In the year under review a number of initiatives were embarked on at Barberton Mines:

Name

Description

Status

Beneficiaries

Verulam Life
Skills Centre

A centre that will focus on the development of life skills in
the community such as brickmaking, welding, cooking
etc. The centre will be run in collaboration with the local community and government

Site has been levelled
Consulting with contractors
to develop a site plan
Planned completion:
December 2009

The greater Umjindi and Verulam communities

Sinqobile Vegetable
Project

A community-run vegetable initiative. The project will be advanced in a phased manner
to full Cooperative status

Good sales of available produce: Farm Stall
Supplies the Soup Kitchen
at Royal Sechaba

The greater Umjindi and Verulam communities

Verulam Soup
Kitchen

Supplies Thandanani Drop-
Inn Centre in Emjindini with
food supplies on a weekly
basis

The feeding of mainly
aids orphans

Approximately 50
people daily

St John’s Care
Centre

The facility focuses mainly
on the care of AIDS patients
and orphans that are terminally
ill

Monthly payments of
R5,000 (£347)

Mainly orphans from
the Umjindi and Verulam
communities

Umjindi Jewellery
Project

A jewellery training facility in Barberton, which runs
learnership programmes with
the support of the Mining
Qualifications Authority

Monthly payments of
R20,000 (£1,390)

The greater Umjindi community

Other Welfare

Assistance given on an
ad hoc basis

Examples include:
Primary Schools
Churches
Department of Education
Department of health

UK (AIM): PAF | SA (JSE): PAN