Social - Salungano Group

People

Salungano Group has transformed into a black-owned and black-run company attracting quality talent. Transformation and diversity are evident through our diverse workforce, supplier development objectives and Supplier Development and Localisation (SDL) programmes. Women are also increasingly well-represented in every aspect of the company’s activities.

We maintain a valuable, value-driven and collaborative workforce by providing safe, rewarding and connected work experiences.

Our business success is linked to human capital resources, and people are critical to delivering shareholder and stakeholder value. By providing standards, guidance and support around health and safety and people-focused deliverables, we are investing in long term value-driven partnerships.

As corporate citizens in South Africa, we have a moral and legal duty to address the critical issues of equality and transformation in the workplace. For us, transformation extends beyond the employment boundary to our key mining contractor stakeholders – the extension of our workforce family and enabling part of our ESG strategy.

Transformation

Transformation is embedded in the Salungano Group’s strategic outlook as a value creation philosophy. In line with the strategic outlook of creating value through growth and transformation, We have partnered with Innovators Resources Proprietary Limited (“IR”) to acquire from Exxaro Coal Mpumulanga Proprietary Limited (“ECM”) the assets, liabilities and employees of the Arnot Coal Mine in Mpumulanga.

As outlined in Mining Charter III, Arnot is a truly broad-based empowerment transaction that will secure employment and provide employees and communities around the mine with equity participation.

Communities

We value our communities’ needs, rights, and circumstances and work collaboratively towards shared-value objectives.

Environmental and social impacts from mining include water pollution, air and soil and the disruption of farming activities and community life. Salungano’s policies and practices around pollution, dust and noise have been developed in collaboration with our communities.

Apart from acquiring mining rights, we have an obligation to consult with communities, inform them of their individual and collective rights, and work with them to build trust, reduce and mitigate impacts in the community. Our programs help to develop skills, infrastructure, and small enterprises to position communities for economic sustainability. The Social and Labour Plan (SLP) agreements with communities are honoured and guided by our ethics code of conduct. Through our Social and Labour Plans, our Supplier Development and Localisation programmes and our B-BBEE commitments, we provide tangible opportunities to community-based businesses at our operations.

Value Chain

We maintain and deliver significant value in customer and supplier propositions and experiences. Corporate sustainability emphasises the importance of ESG strategies that influence the impacts of suppliers and customers. While our customers are responsible for coal combustion, we still have a duty to influence our customers and suppliers to reduce and mitigate impacts and collaborate toward sustainable and alternative business models. We believe that an ESG leadership role is fundamental to that value offering.

Influence starts with leading by example. Healthy platforms for communication and engagement are essential enablers.

Our ESG strategy indicates what we should be seeking to influence and control our supply chain. We intend to guide and support those we work with, having reasonable expectations of progress.

Stakeholders

We engage, respond and demonstrate leadership in our dealings with key stakeholders.

Our stakeholders are the entities or individuals significantly affected by the organisation’s activities, products, and services or whose actions can reasonably be expected to affect the ability of the organisation to implement its strategies and achieve its objectives. By engaging with them, we create opportunities to further align business practices with societal needs and expectations, helping to drive long-term sustainability and shareholder value.

Human Rights

Salungano believes that our employees should be treated with respect and dignity and work in an environment free from harassment and unlawful discrimination.

Salungano Group (Including its operating subsidiaries, Wescoal Mining and Wescoal Trading) believes that being a responsible employer means being socially and morally accountable to our stakeholders, which also include the Constitution of the Republic of South Africa and international conventions to which the Republic is bound and in so far as they apply to us and we can advance their objectives.

Our employees have access to an Ethics Hotline (Whistle-blowers), through which concerns, questions and grievances can be raised and resolved effectively. Employees are strongly encouraged to submit ethics, discrimination or harassment matters and report suspected violations of applicable laws, regulations and policies. Retaliation for raising these concerns in good faith is prohibited.

Our Human Rights Policy and Pledge

There is no forced, bonded or involuntary prison labour on Salungano Group sites.

Freedom of association and the right to collective bargaining are respected.

A safe and hygienic working environment shall be provided, bearing in mind the industry’s general knowledge and specific hazards.

There shall be no new recruitment of child labour. Children and young persons under the age of 18 shall not be employed at night or in hazardous conditions on any Salungano Group sites.

Remuneration and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher.

Working hours will comply with national laws, collective agreements, and the Basic Conditions of Employment Act, as amended from time to time.

No discrimination is practised based on employment, remuneration, access to training, promotion, termination, retirement, race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.

Regular employment is provided on the basis of recognised employment relationships established through national law and practice.

No harsh or inhumane treatment is allowed. Any form of abuse, harassment or intimidation is prohibited.

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