Empowering communities JSE: R162.37 -3.24% NYSE:$8.95 -2.08% GOLD:$2 659/oz +0.41% GOLD:R1 526 685/kg +0.35% USD:ZARR17.86 -0.04% At 11:09am, 16 Dec 2024 Home » Sustainability » Social » Empowering communities We help our host communities build resilience for posterity by supporting employees, businesses, municipalities and national socio-economic development goals through our programmes and local economic development initiatives. Acknowledging the constitutional rights of indigenous people in our host countries, Harmony’s socio-economic impact and investments exceed compliance at every operation. At minimum, we implement legislated local economic development initiatives. In South Africa, these initiatives are outlined in SLPs attached to our mining rights. In Papua New Guinea, our commitments are set out in Hidden Valley’s MoA between government, landowners and Harmony. For the Wafi-Golpu Project, which is in permitting stage, we support a range of voluntary health and local economic development programmes, with particular focus on agribusiness. Our Approach We strategically 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. Harmony’s approach aims to: Enhance broad-based economic empowerment and enterprise development through wages, taxes and royalties, contributing to the growth of local economies and country GDPs. Build relationships of trust through transparent dialogue and delivering on our commitments. FY23 PERFORMANCE AND FOCUS AREAS SOCIO-ECONOMIC DEVELOPMENT IMPACT Total group spend R16.3 billion (US$917.8 million) (FY22: R13.7 billion/US$900.7 million) South Africa R14.1 billion (US$793.9 million) (FY22: R11.3 billion/US$743 million) Community development commitments R114 million (US$6.4 million)(FY22:R93 million/US$6.1 million) Preferential local procurement R14.0 billion (US$788 million)(FY22: R11.2 billion/US$736 million) Corporate citizenship R15 million (US$0.9 million)(FY22: R11 million/US$0.7 million) Papua New Guinea R2.2 billion (US$123.9 million) (FY22: R2.4 billion/US$157.7 million) Community development commitments R63 million (US$3.5 million)(FY22: R46 million/US$3.0 million)1 Preferential local procurement R2.1 billion (US$117 million)(FY22: R2.3 billion/US$153 million) Corporate citizenship R12 million (US$0.7 million)(FY22: R9 million/US$0.6 million)1 1 Restated due to changes from Papua New Guinea. Corporate social investment Over and above the regulated requirements for community development, we implement Corporate Social Investment (CSI) initiatives through established partnerships with government and Non-Profit Organisations (NPOs) operating within host communities. These initiatives are informed by varying socio-economic challenges within host communities. The following strategic pillars (aimed at achieving SDGs) guide our focus areas in South Africa, Papua New Guinea and Australia: Quality education and youth development Reduction of poverty and hunger Health and wellbeing Environment and safety Sports, arts, culture, and tradition South Africa Most Harmony Gold CSI initiatives are designed to empower the youth through education, skills development, and sport. For the past three years, we have facilitated access to tertiary education through our “missing middle” programme, funding 90 eligible students who otherwise will not access tertiary education, as they cannot secure bursaries or do not qualify for the National Student Financial Aid Scheme. We also help nurture an enabling environment within communities by facilitating social cohesion and supporting efforts to combat crime, gender-based violence and inequality. In FY23, we invested R26 million (US$1.5 million) (FY22: R18 million/US$1.2 million) in CSI projects with positive impacts on the lives of almost 38 000 people in our host communities. This spend includes ad hoc donations from the Harmony Gold Community Trust and R5 million on strategic collaborations with NPOs: Enactus South Africa addresses unemployment, poverty and inequality with entrepreneurial skills development at the tertiary education level Harmony has been the main sponsor of the South African Agency for Science and Technology Advancement (SAASTA) secondary school National Science Olympiad for the past 14 years. The company also provides for the rental of non-residential properties to qualifying community development entities in host communities at nominal rental rates. These leases are categorised as “social leases”. In FY23, 30 properties were leased through this programme mostly by NPOs and education-related institutions (early childhood development centres, schools and libraries, among others). The social lease benefit provided through this programme in FY23 amounted to R8 million. Papua New Guinea We deliver CSI programmes for Wafi-Golpu host communities and supplement our MoA programmes at Hidden Valley with ad hoc assistance as special needs arise, like emergency medical transport, food, and monetary support for bereaved families, and food donations to community events. Employees can also apply for school fees assistance for their dependents. In FY23, we invested R12 million (US$0.7 million) (FY22: R9 million/US$0.6 million) with positive impacts on the lives of an estimated 20 500 people. Significant projects and programmes in Papua New Guinea during FY23 included: School fees programme benefiting 517 children of 300 Hidden Valley Mine employees The Cocoa partnership programme assisted 2060 farmers from the Babuaf Farmers’, Lower Watut, Labuta, Wabubu and Nasuapum cooperatives to generate income from cocoa farming and sales New water supply systems delivered for 450 residents and school students in Papas and Wongkins communities The Solar Streetlights programme established 61 lights in 42 village locations in proximity to the Wafi-Golpu Project footprint, with a combined population of 20 000 people. FUTURE FOCUS AREAS In South Africa, we will focus on creating a solid pipeline of businesses owned by black women and youths through our incubation programme so that we exceed our mining charter targets. At the same time, we will ensure the sustainability of existing empowered suppliers by funding OEM partnerships. We will also continue to go beyond compliance to address food security, water supply and sanitation, quality education, and health and wellbeing in our host communities through our CSI programme. In Papua New Guinea, we will continue long-standing contracts with local suppliers to Hidden Valley; while advancement of the Wafi-Golpu Project will afford further opportunities for local business development and new partnerships in Morobe Province. In Australia, we will be finalising a local capability assessment report for Eva Copper, which will make recommendations and guide local content business engagement and related capacity-building social investment as the project advances. CASE STUDIES 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… Read more: Empowering communities to combat crime 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 Local economic development: Broad-based livelihoods programme Since early 2019, Harmony has supported the broad-based livelihoods programme, designed and implemented by partners Umsizi Sustainable Social Solutions and Socio-Technical Interfacing. Read more: Local economic development: Broad-based livelihoods programme Committed to partnerships for youth training and development Our skills development, education and training programmes for unemployed youth prepare and equip them for the working world and income-generating opportunities. Read more: Committed to partnerships for youth training and development Honey processing plant cooperative designed to boost Eastern Cape economy In partnership with the Ngqushwa local municipality , we are establishing a honey processing plant as a sustainable income-generating project. Read more: Honey processing plant cooperative designed to boost Eastern Cape economy Hidden Valley Mine strategy for safer community roads Hidden Valley has a four-year strategy to enhance the safety of community roads, improving them to a standard that can be more effectively maintained. Read more: Hidden Valley Mine strategy for safer community roads Achieving meaningful and sustainable socio-economic development through agricultural programmes In Papua New Guinea, stimulating non-mine related business is important to the ongoing socio-economic wellbeing of local communities. Read more: Achieving meaningful and sustainable socio-economic development through agricultural programmes Collaboration is key for a win-win solution to water scarcity Harmony works closely with municipalities to improve the quality of water, sanitation and hygiene (WaSH) in our host communities and address issues like cholera. Read more: Collaboration is key for a win-win solution to water scarcity Further information See discussions on our approach to empowering communities and the fostering of socio-economic development. ESG Report 2023 ESG data tables 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)