Human Capital

To enable us to attract, develop and retain skilled, motivated and committed employees, we seek to build and maintain relationships with our employees which are based on trust, mutual respect and credibility. To achieve our strategic objectives, we focus on ensuring that we have the necessary skills, culture and employees in place.

2019 HUMAN CAPITAL HIGHLIGHTS AND CHALLENGES

Highlights

Safety programmes, motivational talks and other safety initiatives have been well received by all our employees at Barberton Mines and Evander Mines, leading to a clear improvement in safety

Challenges
Review of human resource policies to ensure that they are aligned to Mining Charter III
Ongoing community pressure and unrealistic employment expectations
Limited lower-level employee opportunities if they are not appropriately trained and provided with the requisite skills required to grow
Improve on training and talent management systems
Enabling safe operations through good leadership examples and effective line management strategies

Looking Ahead
Continue to offer motivational talks and other initiatives aimed at safety improvement
Community unrest in areas surrounding our mining operations. This is a particular problem at Barberton Mines due to communities being located close to the mining operations
Barberton Mines successfully concluded a three-year wage agreement during September 2018 to provide certainty of earnings and sustainable productivity

Why employees are material to Pan African Resources

Our people are fundamental to the sustainability of our business and long-term value creation in addition to being key enablers in the execution of our strategy. Our employees are key to our business success, which makes it imperative that they are part of an organisational culture that priorities safety, diversity, innovation and performance.

The board and remuneration committee mandated an independent remuneration expert to review the group’s remuneration policies, consult shareholders and recommend improvements, where necessary.

WHY EMPLOYEES ARE MATERIAL TO PAN AFRICAN RESOURCES

Our people are fundamental to the sustainability of our business and long-term value creation in addition to being key enablers in the execution of our strategy. Our employees are key to our business success, which makes it imperative that they are part of an organisational culture that prioritises safety, diversity, innovation and performance.

Management Approach

We believe that our people have the right to work in a safe and healthy environment. Mining operations present many risks to our people’s health and safety and we will continue to work towards an environment of zero harm.

Our employment policies and procedures are guided by and comply with labour legislation in South Africa. We review our human resources policies and procedures on an ongoing basis.

Our recruitment strategies are designed to focus on local communities in the areas in which we operate. We recruit employees outside of these areas only when the requisite skills or experience are not available locally.

We respect human rights and value equality and diversity. Pan African Resources does not tolerate any form of discrimination or harassment and we foster a work environment free from discrimination against gender, age, race, national origin, marital status, sexual orientation, religious beliefs, disability or any other personal characteristics protected by applicable law. No human rights-related grievances or proven incidents of discrimination were filed during the current financial year. Human rights are specifically addressed by our human rights policy which focuses on the human rights of our employees, people in the communities and in our supply chain.

Pan African Resources abides by the human rights conventions of the International Labour Organisation and South Africa’s Constitution. The leadership of each operation, as well as the group executive committee, report to the board in this regard. In the 2019 financial year, no operations or suppliers were found to be exposed to the risk of incidents relating to child, forced or compulsory labour.

Our employees and contractors have the right to freedom of association. Barberton Mines has recognition agreements in place with the National Union of Mineworkers (NUM) and the United Association of South Africa (UASA). NUM represents approximately 83% of the bargaining unit employees and UASA represents approximately 51% of officials, artisans and miners. Evander Mines employees currently do not belong to a union.

Group Progress

In terms of mining regulations, each operation has developed an SLP that must be approved by the DMR. During 2019, Barberton Mines submitted its SLP for the next 5 years to the DMR and is awaiting its approval. Evander Mines is currently in the process of revising its SLP in line with its reduced operational size, following the cessation of underground operations in the prior