| Thu 10 Oct 2002, 17:45 | | Kumba Resources Limited - Kumba Endorses New Empow |
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Kumba Resources Limited - Kumba Endorses New Empowerment Charter
Kumba Resources Limited
Press Release
KUMBA ENDORSES NEW EMPOWERMENT CHARTER
Dr Con Fauconnier, Chief Executive of Kumba Resources Limited (`Kumba`),
describes the Mineral and Petroleum Resources Development Act and its associated
socio-economic empowerment charter as a definite milestone and a bold move that
is set to change the face of the South African mining and metals industry.
`What I regard as extremely positive was the spirit of trust and commitment in
which industry, government and labour negotiated issues of critical importance
to our country`s economic empowerment ideals and the requirements of
international competitiveness," he said.
He also came out strongly in favour of the flexibility built into the system,
which will not only allow for offsets and credits, but will also recognise
previous empowerment initiatives by mining companies.
According to Fauconnier, much of what is contained in the charter has already
been addressed in Kumba`s prelisting statement issued last year when Kumba was
created. The company outlined its strategy to include black empowerment partners
in all areas of its business and its view of empowerment as a fundamental
prerequisite for the long-term development and sustainability of the South
African economy.
Kumba has been intent on building a solid empowerment base by aggressively
searching for local empowerment partners, both at the corporate level - where it
facilitated the entry of the Tiso-Kgalagadi Consortium with an initial 5% stake
- and in individual operations. An example of the latter is the negotiations
currently taking place with Eyesizwe Mining to jointly develop projects for the
coal export market.
The Tiso-Kgalagadi Consortium is a broad-based empowerment group representative
of various strategic empowerment interests in natural resources, women-led
groupings and Northern Cape development initiatives. As Kumba`s long-term
preferred empowerment partner, the Consortium is to play a major role in the
Sishen South iron-ore project, which is to be developed into a mine with a
capacity of 10 million tons annually, as well as in the development of other
projects.
Human resource development is another important focus - Kumba currently spends
6,2% of its total salary bill on training. Of the current 62 graduates-in-
training and 123 bursars in engineering and geology, the majority are from the
historically disadvantaged categories.
The Kumba Bridging School assists historically disadvantaged students to upgrade
their matric results. Since its inception in 1995, more than 150 students have
received training in mathematics and science, as well as subjects such as
technical drawing and computer literacy.
As part of its five-year equity plan, Kumba has set individual targets for each
of the five years of the plan. This has proved successful, particularly in
training, where there are more equity candidates than required in the plan, and
in the advancement of women where the company virtually already complies with
the 5-year stated target of 10% women in the work force.
In its preferential procurement strategy, successful current contracts with BEE
partners include those with Masingita Mining for waste stripping at Kumba mines,
a Namibian BEE consortium for joint prospecting operations in that country, and
Kusasa, for logistics arrangements in getting heavy mineral products to
customers and harbour facilities, as well as the construction of these
facilities.
Fauconnier said he envisaged that Kumba would continue to play a meaningful role
in achieving the objectives outlined in the Mineral and Petroleum Resources
Development Act and its associated charter. "It could only benefit our industry
and economy if we make sure that we draw on the very best talent available in
our country," he said.
ends
Note
Kumba Resources Ltd, one of the largest South African-based mining companies
listed on the JSE Securities Exchange, is a focused metals and mining company
with a diverse commodity portfolio consisting of iron ore, heavy minerals, coal,
base metals and industrial minerals. www.kumbaresources.com
Contact:
Dr Con Fauconnier
Chief Executive, Kumba Resources
Tel +27 (12) 307 4312
Telephone : + 27 (12) 307 4561 P.O. Box 9229
Telefax : + 27 (12) 307 4080 PRETORIA 0001
2002-10-10
Date: 10/10/2002 05:22:00 PM Produced by the JSE SENS Department
