ZAC's good corporate governance is balancing entrepreneurship with control and risk management. It implies organising our businesses and activities for growth and long-term sustainable success, while effectively keeping sight of and managing the risks that come with that growth. The ZAC Board has a crucial leadership role in guiding ZAC to success through responsible and efficient decision-making in the face of dilemmas encountered during the course of its development. Good governance is also about the contribution of every employee at all levels of the company. All employees in their daily work environment must aim to achieve an optimum balance between performance, risk and control.
Corporate governance is a subject that has been at the core of a continual stream of new laws, regulations and best-practice guidance in different countries, and at the level of international organisations and institutions. ZAC is a South African Company to which the South African Codes of Corporate Governance (King Report on Corporate Governance for South Africa – March 2010 (King III Report) apply. At ZAC, however, corporate governance means more than simply complying with a code. As a resources and trading company, we believe that a strong culture of corporate governance and ethical behaviour and decision-making is fundamental to the way we do business. We, therefore, keep a very close eye on best practices and we constantly develop and improve our own governance framework in accordance with best practices.
This Governance Statement describes governance at ZAC. We are confident that creating a clearly defined framework for corporate governance will help us to communicate better with all our stakeholders.
The South African labour market does not produce enough of the skills required by the mining industry. ZAC agrees to work together in addressing this skills gap in the following manner:
Through the standing consultative arrangements, ZAC will interface with statutory bodies such as the Mines Qualifications Authority (MQA), in the formulation of comprehensive skills development strategies that include a skills audit;
By interfacing with the education authorities and providing scholarships to promote mining related educational advancement, especially in the fields of mathematics and science at the school level;
By undertaking to ensure the provision of scholarships and that the number of registered leadership in the mining industry will rise.
Through the MQA shall undertake to provide skills training opportunities to miners during their employment in order to improve their income earning capacity after mine closure.
To offer every employee the opportunity to become functionally literate and numerate in consultation with labour;
To implement career paths to provide opportunities to their HDSA employees to progress in their chosen careers; and
To develop systems through which empowerment groups can be mentored as a means of capacity building.
ZAC’s employment equity plan achieves and subscribes to the following:
Establishing targets for employment equity, particularly in the junior and senior management categories. ZAC agrees to spell out its plans for employment equity at the management level. The stakeholders aspire to a baseline of 40 percent HDSA participation in management within 5-years;
South African subsidiaries of our multinational companies and South African companies, where possible, will focus their overseas placement and/or training programmes on historically disadvantaged South Africans;
Identification of a talent pool and fast tracking it. This fast tracking includes high-quality operational exposure;
Ensuring higher levels of inclusiveness and advancement of women. The stakeholders aspire to a baseline of 10 percent of women participation in the mining industry within 5-years; and
Setting and publishing targets and achievements.
Procurement can be broken down into three levels, namely: capital goods; services; and consumables.
ZAC undertakes to give HDSA’s a preferred supplier status, where possible, in all three levels of procurement. To this end, ZAC undertakes to:
Identify current levels of procurement from HDSA companies;
Commit to a progression of procurement from HDSA companies over a 3 to 5-year time frame reflecting the genuine value added by the HDSA provider;
Encourage existing suppliers to form partnerships with HDSA companies, where no HDSA company tenders to supply goods or services; and
ZAC commits to helping develop HDSA procurement capacity and access Department of Trade and Industry (DTI) assistance programmes to achieve this.
ZAC AGREES TO:
Identify its current level of beneficiation.
Indicate to what extent she can grow the baseline level of beneficiation.