Empowering Growth: Pan African Resources’ Community and Employee Investments

The “knowledge economy” – proprietary research, development and technology – has been essential to mining since its earliest days. From the evolution of alloying in Turkey 10,000 years ago to smelt copper and tin and alloy them to form bronze, to today’s use of robotics, miners with the ability to find new and better methods will always have a competitive edge.

Pan African’s goal is safe, sustainable, high-margin operations. To achieve this, it employs cutting-edge technology: surface mining expertise, BIOX® processing for optimal recoveries from refractory gold, and mechanization. By investing in its employees and communities, Pan African also aims to widen the pool of intellectual talent it needs to keep coming up with safe, innovative solutions so that it can mine sustainably for the long term.

In this article, we explore how Pan African combines its investment in intellectual capital with building stronger communities.

In its 2023 financial year, Pan African employed almost 7,000 people, of whom 16% were women. Its training and skills development interventions are aimed at ensuring all employees are equipped to execute the business strategy and leaders can provide an empowering work environment.

A strong emphasis on productivity is important, as is upskilling employees. There is continuous investment in employees’ skills development and training through initiatives such as technical assessments, structured development plans including leadership and career progression plans, and mentoring of local talent in schools. These are achieved through a combination of learning opportunities, bursaries, grants, portable skills and craft training, adult education and training, learnerships and other skills transfer programs

A retention program is being developed to ensure that the company does not lose scarce skills. In 2023, Pan African spent $2.2 million on skills and development training, and $1.4 million on safety initiatives. To encourage employee loyalty, there is an employee share ownership plan, which pays annual dividends.

As part of its current skills development strategy, Barberton Mines has implemented a fully-funded graduate development program for 11 students to facilitate succession planning for the mining department. It has also provided an engineering learnership program for one employee and given one intern workplace exposure in the finance department. Nine employees were introduced to the learner miner program.

Evander Mines has also provided engineering learnerships, and has signed up 17 mentees into a formal mentoring program in engineering, metallurgy, administration and support. The mine has given 15 university graduates workplace exposure, in both technical and support functions. It also assists employees to further their studies in different fields.

“Investing in our people’s development is crucial,” says CEO Cobus Loots. “It enhances our intellectual capital and drives innovation across our operations.”

Local procurement and supplier development are key mechanisms helping the mines to reduce operational costs, while enhancing control and flexibility across the supply chain. Investment in local procurement and supplier development also supports communities and stimulates economic

growth by facilitating job creation opportunities for locals and entrepreneurial development.

Pan African’s enterprise development program identifies local outsourcing opportunities within the supply chain of the mine and promotes business opportunities for small- and medium-sized enterprises (SMEs) owned by historically-disadvantaged suppliers. In 2023, Pan African sourced over 37% of its mining goods from SME suppliers controlled by historically-disadvantaged individuals.

At Barberton and Evander Mines, the enterprise and supplier development programs are designed to equip local suppliers with the skills and certifications they need to comply with mine safety and quality standards and assist them to stay in business. Enterprise development assistance is provided to historically-disadvantaged South Africans through business incubation structures that provide training, mentoring and support infrastructure. In 2022, Barberton celebrated the first anniversary of its enterprise supplier development program, through which 47 local entrepreneurs were enrolled.

An example of successful enterprise development is Evander-based Nosamukelo (Pty) Ltd. It is headed by Lydia Peterson, whose home-based sewing business had grown too large to fit into her premises. Evander Mines enrolled Lydia in its supplier development program, and helped her to find a bigger space in the local shopping center. Apart from having an outlet open to the public, she now makes some of the items needed by the mine’s supply chain.

In 2023, Pan African allocated $170,000 for full-time bursaries for 14 university students, with the goal of nurturing a new generation of leaders.

In January 2022, Barberton Mines launched a five-year pre-tertiary development/high school

scholarship program at Horskool Barberton (for learners between 13 and 18), where it awarded scholarships to 25 learners from the town and surrounding areas to study at the school. This was preceded by a rigorous selection process: learners had to demonstrate academic excellence (especially in mathematics, physical science and technology) and prove financial need. The scholarship covers expenses such as full school fees, boarding fees, school and sports uniforms, books and stationery, a smartphone (once-off), a monthly stipend and transport arrangements. Of that intake, 22 passed the 2022 academic year, five of whom garnered awards for outstanding achievement (above 80%).

Last year, Evander Mines completed the construction of computer and science laboratories at Thomas Nhlabathi High School in the adjacent Kinross township as part of its social and labor plan and has equipped it with furniture and equipment. A similar facility is being built at the Thistle Grove Combined School and will be completed in the 2024 financial year.

Pan African manages community expectations and assuages social unrest by investing in development projects and employment opportunities. It invested US$1.7 million in corporate social investment and local economic development initiatives and bursaries in 2023. Proactive stakeholder engagement between Barberton Mines and its host communities has significantly strengthened relationships, resulting in a noticeable decrease in community unrest incidents targeted at the mine.

Apart from the enterprise and schools investments already mentioned, some of the community engagement initiatives are less formal. For example, a running club at Barberton Mines was introduced as a health and wellness initiative to encourage fitness and wellbeing, by providing professional fitness coaches and encouraging participation in sporting events, including by members of the communities.

Another example is a performing arts program launched in 2016. In 2023, Pan African partnered with Elangeni Generations Outreach, a renowned film-making institution that provides technical support for the performing arts. On 4 June 2023, the first Pan African-funded movie series was broadcast on national television. The program has yielded three films, predominantly in the SiSwati language.

Blueberry Farm

In 2020, Pan African approved a project to start a blueberry farm on land owned by Barberton Mines. This corporate social investment venture was launched because the mines are one of the largest sources of employment around Barberton and the company recognises the importance of playing a role in developing secondary economic activities that can support and sustain host communities now and in the future. Blueberry farming is a labor-intensive business and the crop is well suited to Barberton’s climate.

The farm is situated on 15 hectares, with 96,000 blueberry plants under shade net and a state-of-the-art irrigation and fertigation system. Over time, as funding becomes available, second and third phases of development will take place, with the ultimate goal of making this a 45 hectare commercial farm.

It produced its first commercial harvest of 120t in 2022. In 2023, the second harvest improved slightly as the plants matured. A harvest of about 220 tons is expected for the 2024 season, with offtake agreements secured for export (30% of production) and the balance being sold to high-end local retailers. In its 2023 financial year, Pan African earned $306,000 in revenue from the farm. Its success has enabled reinvestment in a packhouse and frost mitigation equipment.

To date, the project has created 25 permanent jobs and 272 seasonal jobs, and paid $300,000 in salaries and wages. It contributes to the sustainability and development of small businesses in the adjoining townships and to raising living standards.

The farm has been highly successful in providing jobs – in some cases, to youth who have never had jobs before – and supporting Pan African’s social license to operate. It has grown community support and buy-in for the stability of its mining operations, which means Pan African benefits from the help of local residents in combating illegal mining.

Pan African works together with communities, local government and suppliers to deliver education and health services. Recognising that basic schooling is fundamental to later achievement, Barberton Mines has funded the construction and renovation of the Sheba and Ngwena Primary Schools in the town, which were handed over to the Department of Basic Education on completion. This will benefit at least 1,100 learners and over 40 educators immediately, and future generations will benefit from being able to access better-quality facilities, thus encouraging attendance and preventing youth delinquency. In addition, 35 local contractors were involved in the construction, which created 285 temporary jobs and developed accredited skills that could be deployed in other businesses.

Currently, the company operates primary health clinics at each of its operations, to provide medical care and monitoring of employees. The company has also spent $2 million on community health projects, which includes supporting local healthcare infrastructure, and identifying community health and hygiene risks to improve health and living standards.

Pan African knows that whatever support it provides to its local communities and employees must be the result of engaging constructively to understand needs and building consensus. A top-down approach never works. Each of the operations holds regular community engagement forums and has developed stakeholder engagement and communication strategies, as well as implementation plans focused on maintaining the mines’ social license to operate. The engagement forums ensure transparency and that communities and other local stakeholders are kept informed about issues such as operational processes and challenges, employment opportunities, environmental matters, community development programs and projects, available community bursaries and health and safety campaigns.

There are feedback mechanisms to help the operations to understand and address their impacts on communities. Community grievance management is a critical element in community relations. These feedback mechanisms encourage and enable community members to express their concerns, and mine management is required to address these grievances in a formalized and transparent manner.

As a result of these engagements and awareness campaigns, including through social media, Barberton and Evander have seen a significant improvement in the ongoing engagements with their communities.

Pan African’s numerous  initiatives to improve the skills of its own employees, give financial assistance and work experience to young people, and reach out to its local communities with enterprise support and procurement are helping to create more resilient and sustainable communities. It prioritizes programs that deliver long-term benefits as it strives to contribute to the United Nations Sustainable Development Goals (UNSDGs). Each of its programs has a strong business case and Pan African’s stakeholders recognise that investing in sustainability initiatives will deliver long-term gains and a competitive advantage.

Pan African recognises its employees are its most valuable resource, given the company’s need for productive, highly-skilled people to maintain competitive mining operations as a result of the labor-intensive nature of its operations. Like any other resource, employees benefit from investment and development. Their career journey starts at school, with good basic education, which is why Pan African continually invests thousands of dollars in upgrading local schools and facilities. Bursaries and work experience are the next steps towards a career in mining.

Even where local communities are not working for Pan African directly, they are able to benefit from the company’s investments in local procurement and supplier development, the successful blueberry farm, as well as the various outreaches in health and sports that help to nurture closer ties.

Open dialogue through regular and transparent engagement is essential to maintain the relationship between Pan African and its communities, and the various stakeholder forums and opportunities for communities to express grievances have proved highly effective.

Today, mines have to prioritize sustainable development and social responsibility or they will find it very difficult to sustain and grow their business. Pan African acknowledges its responsibility, and is deeply committed to fulfilling it.

Learn more about Pan African Resources’ initiatives or explore partnership opportunities here.