Aquarius is the fourth largest primary PGM producer in the world with assets in South Africa and Zimbabwe. In South Africa, in terms of the Mineral and Petroleum Resources Development Act and the Mining Charter, Aquarius’ operating subsidiary, Aquarius Platinum South Africa (Pty) Ltd (AQPSA), has been awarded full conversion of its mining rights. The company reports annually to the Department of Mineral Resources on its Social and Labour Plans.

The company’s black economic empowerment (BEE) partner, the Savannah Resource Consortium, has a holding of 13.7% at the group level, equivalent to more than 30% at the AQPSA operational level, which exceeds legislative requirements.

In terms of procurement, preference is given to BEE companies and those which have strong associations with historically disadvantaged South Africans (HDSAs).

While Aquarius is committed to operating efficiently and profitably, the company simultaneously makes every effort to ensure the well-being of all its employees, be they employed directly or indirectly through contractors. The Company engages with and is considerate of the communities in the areas in which it operates, and every effort is made to preserve and conserve the environment of which it is a custodian. The consumption of scarce resources, such as water and power, is monitored and measured, and Aquarius participates in discussions around and the response to the global challenge of climate change.

A principal focus at all Aquarius operations is ensuring the safety of all employees, be they directly or indirectly employed. To achieve this, it is essential to develop and entrench a culture and awareness of safety among all, as well as to reinforce behaviour with positive safety outcomes. Allied to this is the promotion of the shared responsibility for safety among all employees, from the most senior to the most junior.

Most regrettably, there were eight fatalities across Aquarius group operations in FY2011 (FY2010: three): five at Marikana, one at Kroondal, one at Mimosa and one at Blue Ridge.

Despite the increase in the number of fatalities, overall safety performance improved with a decline in the group disabling injury incidence rate (DIIR) to 0.50 per 200,000 hours worked from 0.55 in FY2010.

Aquarius is committed to providing decent work and the implementation of fair employment practices, whether directly or through its contractor companies.

In South Africa, Aquarius maintains a small core corporate office while mine management and specialist services are employed directly by AQPSA. Mining and processing operations are outsourced to three primary contractors: for mining operations, Murray & Roberts Cementation (MRC) and MCC Contractors, and for the running of plants, Mineral Operations Executive (Pty) Ltd (Minopex).

As at 30 June 2011, Aquarius employed 10,024 people (1,738 employees and 8,286 contractor employees) (100% basis), a decrease of 9% on the previous year (FY2010: 11,072). This was largely a result of the cessation of operations at Blue Ridge during the course of the year, although the numbers employed declined at most operations. The exception was Everest where employment increased as that operation continued its ramp up.

In all, 8,228 people were employed at the South African operations (AQPSA) and 1,796 at Mimosa in Zimbabwe (FY2010: 9,270 and 1,802 respectively).

In terms of corporate social responsibility and local economic development, Aquarius recognises that it has a responsibility to the communities in which it operates to:

• provide, in the short and medium term, meaningful development, financial technical and other support to improving the lives of members of these communities;
• eliminate or minimise any negative impacts that mining may have on the community; and
• make a lasting contribution, in the medium to long term, to the sustainable economic development of communities that extends beyond the life of the mining operations.

A total of R7.5 million was spent on corporate social responsibility (local economic development initiatives and corporate social investments) by AQPSA in FY2011, largely in the areas of formalising and improving informal settlements (infrastructural development) and education.

Aquarius acknowledges that its mining and processing operations could have a negative impact on the natural environments in which it operates and is mindful of its obligation to mitigate the risk of these impacts and to address any negative impacts that may occur.

Environmental management and compliance are governed by the SHERQ policy and code of ethics which apply equally to the Company’s management, its employees and its contractors.

They address issues such as compliance, prevention of pollution, training, and education, as well as management principles and the setting of targets.

The three most important environmental risks at Aquarius are:

• Availability of clean water and in particular the potential to contaminate clean water resources and failing to optimise the consumption of dirty water.
• Energy supply and carbon emissions (the extent of our carbon footprint).
• Adequate land rehabilitation.

All Aquarius mining operations and processing plants either received their ISO 9001 and 14001 certification in FY2011 or are working towards this.