Joint chair statement

This year has been a challenging year for the Company and for the industry as a whole. Our commitment to safe and ethical working practices remains non-negotiable.

Any fatality is intolerable, and we wish to convey our condolences to the families and friends of Mr Zilindile Ndumela, Mr Goodman Mangisa, Mr Fanelekile Giyama and Mr Siphilo Makhende who suffered fatal accidents during the reporting year. The four fatalities have been a regrettable setback in achieving our aim of Zero Harm despite the improvement during the period in Lonmin’s lost time injury frequency rate.

Our dedication to sustainability goes beyond compliance – whether it be safety, health and environmental standards or the commitments within the Social and Labour Plans which include Lonmin’s transformation goals.

During the year the SET Committee reviewed the strategic plans for transformation. Good progress has been made on the Company’s journey of transformation in respect of the Mining Charter and the Broad-Based Black Economic Empowerment Act.

Improvement in employee housing is a key focus area, and it is pleasing to note that the infill apartment housing project is continuing as planned. We note the update made by the Presidency on the steps taken to implement the Farlam Commission recommendation of 2015. The Company’s revised housing plan was submitted to the Department of Mineral Resources in October 2014 as part of the Company’s Social and Labour Plans. Following engagements with and direction provided by the Department of Mineral Resources in September 2016 requiring certain revisions to Lonmin’s housing plan, the Company is currently reviewing its plan and is confident that it will submit a plan that is compliant. Various community projects have been implemented such as the upgrade of roads and education school infrastructure projects.

Lonmin is reinvigorating the ethics programme, including a refresh of the Ethics Policy. Human rights, specifically Lonmin’s Human Rights Policy and procedural framework, have been an area of particular focus.

The health and wellness programmes showed good results with an increased number of patients receiving treatment for HIV/Aids and a reduction in Aids-related deaths. Lonmin remains focused on improving the controls to prevent noise-induced hearing loss, an ongoing area of concern for the Company.

The Company continues to improve its environmental performance, and remains committed to meeting the changing environmental requirements and regulations. Plans have been put in place to improve the efficient use of water, and Lonmin is monitoring developments regarding carbon tax legislation to ensure continued compliance.

If we could project ourselves five years into the future, we would like to see Lonmin being the undisputed safest underground miner, both in terms of work-related and non-work-related fatalities and injuries. We will continue to strive to achieve the vision of Zero Harm.

Social and economic sustainability provide the Company with its licence to operate. A thriving business is what makes everything possible, and Lonmin is doing everything in its power to manage what we can control. Working together with all our stakeholders will ensure we create a positive legacy that benefits future generations.

Len Konar
Chairman of the SET Committee
25 January 2017

Jonathan Leslie
Chairman of the SHE Committee
25 January 2017