Empowering communities JSE: R185.38 +6.27% NYSE:$9.68 +2.54% GOLD:$2 689/oz +0.46% GOLD:R1 622 062/kg -0.38% USD:ZARR18.76 -0.85% At 16:29pm, 15 Jan 2025 Home » Sustainability » Social » Empowering communities By partnering to address socio-economic challenges facing the countries in which we operate, we create more resilient and empowered communities and achieve broader impact with our contributions to the SDGs. Our FY24 performance was driven by collaboration with strategic partners, proactive risk management and stakeholder engagement during project planning and implementation. In FY24: We spent R19.9 billion on empowering our communities Of this investment, R14.8 billion was spent in South Africa, R2.8 billion in Papua New Guinea, and R2.3 billion in Australia Our approach Our commitments to community development arise from voluntary corporate social investment across all regions, regulation in our host countries and region-specific formal agreements in Papua New Guinea and Australia. Implementation of our socio-economic development initiatives are underpinned by stakeholder partnerships and collaboration, and a deep respect for the culture and heritage of the communities in our host countries. Community development initiatives We implement socio-economic development initiatives aligned with national job creation and poverty alleviation imperatives. Our projects promote and support community empowerment, sustainable development and human dignity. Corporate Social Investment (CSI) beyond compliance CSI reflects our company’s commitment to responsible stewardship and our social licence to operate. Our CSI programme targets key challenges such as poverty, unemployment and inequality in the communities where we operate. Preferential procurement, local procurement, and enterprise and supplier development In each of our host countries, we have regulatory or agreement-based commitments designed to encourage and create opportunities for local industries and communities to benefit from our presence through the provision of goods and services. Regional performance South Africa In South Africa, community development was driven by both regulatory requirements (through our Social and Labour Plans) and CSI initiatives. We spent R80 million on mine community development programmes, focusing on agriculture, water infrastructure, SMME, skills development and other initiatives. Notable projects included agricultural initiatives in areas like Wedela, Doornkop and Rietvallei, helping develop emerging farmers who now sell produce to Food Lover’s Market and local communities. The Virginia Sports Academy, celebrating 21 years, continued to identify and develop sporting talent while providing education support. Infrastructure development included significant investment in wastewater treatment plants and water supply systems. In education, the region supported various initiatives including building classrooms, providing ablution facilities, and equipping science laboratories. The region’s CSI programme invested R20 million, positively impacting over 700 000 people in host communities. Projects included education support, crime prevention initiatives, and health and welfare programmes. A significant achievement was the partnership with the Safer South Africa Foundation to deliver community justice programmes, reaching 1 048 youth in five schools and four communities. In terms of preferential procurement, the region spent R14.7 billion on black-owned vendors, with 64% of discretionary spend on suppliers with more than 50% black ownership. The enterprise and supplier development programme supported 209 entrepreneurs through incubation and 218 businesses through development initiatives. Notable success stories included Tailor Made Trading and Projects and Glorificar Trading, which created multiple job opportunities through Harmony’s support. Our performance in FY24 was as follows: Total preferential procurement spend awarded to black-owned vendors was R10.6 billion (US$567 million) (FY23: R8.6 billion/US$506 million). 64% of our discretionary spend was on >50% black ownership suppliers (FY23: 59%). In quarter four, 605 vendors transitioned from <25% black ownership to >25%. This significant shift can be attributed to the proactive and continuous efforts made to ensure that BEE certificates are consistently updated. Total BEE procurement spend was R14.7 billion (US$786 million) (FY23: R14.0 billion/US$736 million). R2.7 billion (US$144 million) was spent on black women-owned businesses (FY23: R2.0 billion/ US$92 million) R10.6 billion (US$567 million) was spent on black-owned businesses (FY23: R8.6 billion/US$484 million). Total discretionary spend was R17.6 billion (US$941 million)(FY23: R16.5 billion/US$929 million). Of this, we spent: 83% on preferential procurement (FY23: 85%) 60% on black-owned SMMEs (FY23: 32%) 16% on black women-owned enterprises (FY23: 12%). Papua New Guinea In Papua New Guinea, community development was primarily guided by the Hidden Valley Memorandum of Agreement (MoA). The region spent R15 million on MoA programmes and R12 million into the Hidden Valley Mine Trust. Significant initiatives included a community health outreach programme benefiting 1 314 residents, infrastructure projects such as road maintenance and bridge construction, and agricultural development programmes supporting coffee growers and farmers. The region’s education support programme assisted 468 students through the Employee Dependent’s School Fees Programme and awarded scholarships to eight tertiary students. We maintained a strong commitment to local procurement, with R2.7 billion spent on suppliers based in Papua New Guinea. Of this, 22% was spent on landowner companies, and 68% on suppliers based in Morobe Province. Major contracts with landowner companies included civil works, construction, transport, maintenance services and drilling services. Australia In Australia, community development efforts centred on establishing relationships with First Nation Australians, particularly the Kalkadoon People and Mitakoodi and Mayi People. The region created an interim social investment framework addressing obligations under the Native Title Agreement and broader community investment initiatives. The framework included a community grants programme supporting SDGs 1, 2 and 4, events and sponsorships celebrating local traditions, and active citizenship from the Eva Copper project team. We implemented various community support initiatives, including contributions to local schools, sporting clubs, and cultural activities. Under the Australian Jobs Act 2013, the region established processes to provide full, fair and reasonable opportunities for Australian businesses to participate in the project’s supply chain. Cultural heritage management was a key focus, with extensive pre-clearance surveys conducted and the development of cultural heritage induction programmes for employees and contractors. FUTURE FOCUS AREAS Harmony is committed to continue delivering on our socio-economic development and preferential and local procurement commitments while fostering mutually beneficial partnerships and contributing to the upliftment of our host communities. CASE STUDIES Promoting decent work and economic growth Through its support, Harmony has enabled two local enterprises, Tailor Made and Glorificar Trading, to create 49 job opportunities. Read more: Promoting decent work and economic growth Empowering communities to combat crime South Africa’s crime rate is among the highest in the world, with its economic cost estimated at around 10% of the country’s GDP annually in recent years. Read more: Empowering communities to combat crime Promoting and supporting education in Papua New Guinea Access to education remains a significant issue in Papua New Guinea, particularly in remote and rural areas. Read more: Promoting and supporting education in Papua New Guinea Celebrating 21 years of the Harmony Virginia Sports Academy The Harmony Sports Academy, the only youth programme of its kind in South Africa, opened its doors in January 2003 Read more: Celebrating 21 years of the Harmony Virginia Sports Academy Working with supply chain partners for inclusive local entrepreneur participation We are making steady progress towards fully inclusive participation of emerging black-owned businesses in Harmony’s supply chain. Read more: Working with supply chain partners for inclusive local entrepreneur participation Partnering to future-proof our host communities Harmony goes beyond compliance to ensure our host communities are empowered today and resilient enough to adapt to rapid digital transformation in the future. Read more: Partnering to future-proof our host communities Further information See discussions on our approach to empowering communities and the fostering of socio-economic development. ESG Report 2024 ESG data tables 2024 Social and Labour Plans Bambanani SLP 2018 -2022 (English) Bambanani SLP 2018 -2022 (SeSotho) Doornkop SLP 2018 -2022 (English) Joel SLP 2018 -2022 (English) Joel SLP 2018 – 2022 (SeSotho) Kusasalethu SLP 2018 -2022 (English) Kusasalethu SLP 2018 – 2022 (SeTswana) Masimong/Unisel SLP 2018 -2022 (English) Masimong/Unisel SLP 2018 – 2022 (SeSotho) Mponeng SLP 2020 – 2024 (English) Moab Khotsong SLP 2018 -2022 (English) Moab Khotsong SLP 2018 – 2022 (SeTswana) Target 1 2018 – 2022 (English) Target 1 2018 – 2022 (SeSotho) Tshepong/Phakisa 2018 – 2022 (English) Tshepong/Phakisa 2018 – 2022 (SeSotho)