August 2023 #TakingUpSpace Digging Deeper Page 12 Celebrating strong women Page 16 Healthy Living Page 8 Interim results highlights KUMBA IRON ORE Kolomela Mine
We want to know what’s going on in your part of Kolomela mine. Send us your stories and letters for consideration in the Digging Deeper! Don’t worry if you feel you cannot write the article yourself, just email us the details and we will write it for you: [email protected] Editorial contact details Communications Section, Kolomela mine T (053) 313 9036 E [email protected] WhatsApp/SMS: 063 257 0512 Digging Deeper is created for the people of Kolomela mine by the Corporate Affairs Department. AngloAmericanZA AngloAmericanZA YourVoice: Your independent whistleblowing service. Call 087 232 5426, or visit www.yourvoice.angloamerican.com Kolomela critical contact numbers Emergency numbers: 053 313 9111 / 071 744 2354 Security Reception: 053 313 9232 Covid-19 Support Centre: 081 032 3161 Communication tips – Be aware of the silent ques Rea Connecta! WhatsApp "Hi" to +27 76 719 0151 Talk to Us: Call, SMS or WhatsApp: 066 489 1107 You can also answer the questionnaire on the Engage App at: https://engage.datafree.co/ddf Communication is a complex skill but if you spend time to learn the cues, you will be surprised how it can help you to improve your engagement with your colleagues as well as improve your management skills. Communicating is a science that can help you to be a great leader. Take time to watch, listen and observe, you might just remove several obstacles in one go. Source: Pointpark online university Eye contact Women use eye contact as a way to connect with a speaker, showing they are engaged and listening. Men may avoid it altogether or listen with eyes closed as the other person speaks. Touch Women use touch to reassure or to build a connection, such as touching an arm to support someone who is speaking. Men use touch more as a show of dominance, including pats, back slaps, and shoulder touches. Physical space Men prefer speaking face-to-face and will stand closer to women than they will to men. Women are just as comfortable speaking side-by-side (such as in a car) and are more comfortable being close to other women. Paralanguage This includes areas such as tone, pitch, and speaking speed. Women use paralanguage to express meaning far more than men. Facial expressions Men use fewer of the thousands of available facial expressions than women do. That includes smiling less. Research in how men and women differ in the way they communicate only started about 50 years ago, but already we can identify a few interesting traits: 2 DIGGING DEEPER AUGUST 2023 DID YOU KNOW? Together, we are shaping a better future. Introducing our new WhatsApp community platform, Rea Connecta! Making information easily accessible for your friends, family and umakhelwana. From steps on how to become a supplier and finding current vacancies, to accessing documentation from Zimele and even 1-on-1 live chat. We have developed a platform that provides support, instant access to opportunities, collaboration with the business and meaningful impact at your fingertips. Connect your family, friends, and umakhelwana with Rea Connecta today, and let’s make a difference together. makes a difference. Meet
DIGGING DEEPER AUGUST 2023 3 MESSAGE FROM THE GM Bokamoso Collectively building a better future As we celebrated Women’s Month, we acknowledge the contributions, achievements, and rights of women throughout history and the present. We must acknowledge our joint responsibility in creating a safe environment for women to express themselves and prosper. On the other hand, we cannot ignore the shadow that demands our unwavering attention, which is GenderBased Violence (GBV), one of the issues women face daily. Reflecting on a month of empowering women Safety is still our top priority Our well-being and success as a team depend on our working conditions, and safety is fundamental. I want to emphasise that safety isn't just a rule to follow; it's a mindset we must collectively cultivate. We are working hard to create a safe working environment by having a conducive situation for our employees to report safety incidents and concerns, including unsafe conditions and behaviours. We are unapologetic in creating a psychologically safe working environment where our colleagues won't fear Bullying, harassment or victimisation. Let's commit ourselves to creating a culture of safety that extends beyond these walls and into our daily lives. I want to remind our colleagues that I am part of the GM cohort that took a stand against GBV last year and take this commitment seriously. As men, we should stand together as advocates for women's rights and as allies against a scourge that affects every corner of society. We must understand that GBV is not just a women's issue; it's a human rights issue that affects us all. GBV affects our mothers, sisters, daughters, friends, colleagues, and everyone who identifies as female. This Women's Month, we will celebrate women's achievements and use it as a call to action against Gender-Based Violence. Together, let us envision a world where every person can live without fear, every woman can achieve her full potential, and every voice is heard and respected. Well done on the amazing recovery We have witnessed a well-earned recovery in our cost management and production processes compared to last year, which deserves to be celebrated. The results happened through your unwavering dedication, resilience, and innovation; thank you. As we celebrate this incredible achievement, let us not forget the lessons we have learned. Let us continue to embrace innovation, challenge the status quo, and invest in the skills and capabilities that have brought us to this point. We must continue thinking like owners because the business is ours to manage. Our journey is far from over; there are still new heights to conquer and new frontiers to explore. The H2 will be difficult as we balance our production to match the reduced Rail capacity. This means we must go beyond ownership as we try to reduce costs. This road ahead will be demanding but also brimming with opportunities for us to exploit. Let our mantra be, "We can still do it again." Let's harness the momentum of our recent achievements and channel it into a brighter and more impactful future. Our potential is limitless, and together, there is no goal beyond our reach.
Safety update Bongani Mashaba, SHE Manager Safety achievements July 2023 0 Fatality 2 Consecutive LTI free days 1 Consecutive HPI free days 5 Safe days 25 Zero Harm days Think about it Talk about it Act on it Let’s Talk Safety ZERO HARM At Anglo American we are committed to conducting our business in a way that is consistent with our Values and Code of Conduct. Following our Code of Conduct, living our Values and choosing to do the right thing are the responsibility of every one of us. When we act with Integrity, we always do the right thing for safety, our teams, business, families, communities, and external partners. It is our right and our responsibility to call out unsafe acts and practices and refuse to do unsafe work. The behaviours that support our Integrity Value help ensure that we remain unconditional about safety: • I hold myself accountable for doing what I say and being clear about my motives. • I do the right thing and speak up if it is not right, even when something is uncomfortable. • I listen to and respect peoples’ concerns without pre-judging and resolve them positively. • I never take shortcuts that could compromise the principles by which we behave. • I do my part to help create a workplace where people do not hesitate to challenge and call out what is wrong. Living and working with integrity will keep you safe. Living our Value of Integrity to stay safe 4 DIGGING DEEPER AUGUST 2023
Processing update Hansie Esterhuizen, processing manager July was a good production month for both Plants and railings as we closed the month 3% and 7.7% above OMS target, respectively. Well done! Many thanks to all teams for the great performance. We remain resolute in delivery of safe and stable production! Mining update Rico van Staden, Mining Manager Upon reflecting on the July results, it is clear that we have not achieved what we set out to achieve. Numerous safety incidents occurred, including some repeat incidents around hand and finger injuries and damages to equipment. There can be no doubt that the incidents coupled with inefficiencies in our process impacted our production effort. As at the end of July waste mining lost further ground, eroding away some of the gains we made in H1. As a result, after achieving 4.40Mt, waste mining is now only 1.4Mt ahead of year to date targets. The latter is based on updated forecasts as indicated by OMS6. Ore mining remains on track and is virtually on target for the year. It is clear that we cannot continue down this path we are on. To earn the right to continue mining we need to consider our efficiencies, costs, and processes. Numerous group sessions aim to find ideas to improve on our position - especially finances and the associated efficiency challenges we have been experiencing will be addressed. We are in a position where we are given the opportunity to show what we can deliver in these difficult times. It is up to us to grab these opportunities and make our voices heard to turn back to positive results. 0 2000000 4000000 6000000 8000000 10000000 12000000 14000000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tonnes Kolomela Mine: Ex-pit Ore: 2023 Progressive Budget Progressive Actual Budget Forecast OMS 5 Adjusted 0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tonnes Kolomela Mine: Waste Stripping: 2023 Progressive Budget Progressive Actual Budget Forecast OMS 6 Adjusted KOLOMELA MINE: EX-PIT ORE: 2023 LEEUWFONTEIN + KAPSTEVEL I + KLIPBANKFONTEIN KOLOMELA MINE: WASTE STRIPPING: 2023 LEEUWFONTEIN + KAPSTEVEL + KLIPBANKFONTEIN 1 Classification: Personal data JULY PROCESSING UPDATE Saleable Production Railings 946 975 881 949 +3,0% 7,7% July was a good production month for both Plants and railings as we closed the month 3% and 7.7% above OMS target, respectively. Well done! Many thanks to all teams for the great performance. We remain resolute in delivery of safe and stable production! Production & Railings OMS07 Actual BOKAMOSO DIGGING DEEPER AUGUST 2023 5
Planned Work 35% of the bonus Effective & Efficient 40% of the bonus Work Execution 25% of the bonus Shift A 3.2 Shift B 3.0 Kolomela Championship League 2023 Annual Performance (Journey to KCL Recognition) 6 DIGGING DEEPER AUGUST 2023 PERFORMANCE Performance results Mining Performance Results – July 2023 Mining Performance Results – YTD 2023 Plant Performance Results – July 2023 Plant Performance Results – YTD 2023 [OFFICIAL] KUMBA IRON ORE 5,249,368 4,404,879 Budget Actual Tonnes (t) 1,176,696 1,284,609 Budget Actual Tonnes (t) 6,426,064 5,689,488 Budget Actual Tonnes (t) [OFFICIAL] KUMBA IRON ORE 33,647,835 35,052,868 Budget Actual Tonnes (t) 6,687,165 6,681,115 Budget Actual Tonnes (t) 40,335,000 41,733,983 Budget Actual Tonnes (t) [OFFICIAL] KUMBA IRON ORE 881,434 904,310 Budget Actual Tonnes (t) 65,000 70,690 Budget Actual Tonnes (t) 946,434 975,000 Budget Actual Tonnes (t) [OFFICIAL] KUMBA IRON ORE 5,713,510 6,297,274 Budget Actual Tonnes (t) 279,816 547,987 Budget Actual Tonnes (t) 5,993,326 6,845,261 Budget Actual Tonnes (t)
DIGGING DEEPER AUGUST 2023 7 OUR COMMUNITIES Introducing Site Induced Migration SIM can significantly change the site’s external context. Many of these changes can be positive, if managed effectively by all relevant internal and external stakeholders. Potential benefits from in-migration may include economic growth, public and private investments in local services and products, the development of small and medium enterprises, increased government revenue, skill transfers and cultural exchange and refinement. Mavis Kolberg, Manager Corporate Affairs and Social Performance New Anglo Social Way Requirement scoped in for Kolomela Please contact Keaobaka Matilo (Requirement owner) for further clarity – [email protected] Site-Induced Migration (SIM) is defined as the movement of people into or out of an area in anticipation of, or in response to, real or perceived opportunities associated with a site. People moving into the area (i.e. in-migrants) look to benefit in terms of (direct and indirect) employment, community development initiatives and other site activities, including resettlement. People moving out of the area (i.e. out-migrants) typically do so in response to site closure or care and maintenance. A site cannot and is not responsible for managing SIM alone. Strong partnerships and coordination, particularly with local authorities, are critical in managing SIM. SIM-related direct and indirect impacts on communities are attributable to a site’s presence and activities. Sites therefore have a responsibility to help prevent and manage SIMrelated impacts on external stakeholders. If left unmitigated, SIM may contribute to significant negative social and environmental impacts. This ultimately can lead to an unstable operating context, affecting operational cost, schedule, and reputation. DIGGING DEEPER AUGUST 2023 7
8 DIGGING DEEPER AUGUST 2023 OUR PERFORMANCE Interim results highlights Our refreshed strategy will ensure we remain focused on maintaining our competitive position as we unlock the full potential of our core and position Kumba for a sustainable future and the green transition that is driving demand for our premium ore. This is a credit to you, our teams, and demonstrates our continued focus on driving safe and stable production, cost efficiencies and delivering value to all our stakeholders, including our communities. Mpumi Zikalala, Chief Executive Officer of Kumba Iron Ore said: "Kumba recorded a solid operational and financial performance in the first six months while continuing to drive for zero harm and the elimination of fatalities. Production increased by 6% driven by Kolomela's 22% increase and stable performance from Sishen resulting in an improved C1 unit cost of US$39/wmt. As a result, we are pleased to declare a dividend of R7.3 billion or R22.60 per share. We are pleased to declare a total dividend of R9.7 billion of which our empowerment partners, including the SIOC development trust and employees through Semela, will receive R2.4 billion. Our waste handled increased by 16% and saleable production increased by 6% relative to 2022, primarily underpinned by Kolomela's recovery following last year's operational challenges. Sishen's performance continues to be stable, and we have seen improved productivity at both mines. We extended our employee share option scheme, Semela, to middle management to support empowerment more broadly. We successfully concluded a threeyear wage agreement with the majority of our unionised employees. This will underpin operational stability and business sustainability by ensuring our people are rewarded for their work and that we can continue to deliver enduring stakeholder value. Our decarbonisation plans are progressing well, and we have now received environmental authorisation to construct a 68 MW solar plant at Sishen and major earthworks commenced in July 2023. We will continue to focus on delivering value over volume and maximising our product premium. Beyond this, we need to ensure that our business is well positioned to deliver a sustainable future and support the green steel transition that is driving demand for our premium ore.
DIGGING DEEPER AUGUST 2023 9 OUR PERFORMANCE Key features Committed to safe and sustainable mining Relentless focus on zero harm and elimination of fatalities Zero occupational diseases Over eight years without any level 3-5 environmental incidents R28.5 billion of shared value created Continued value delivery Continued value delivery Attributable free cash flow* R7.9 billion Average realised FOB export price of US$106/wmt 4% above benchmark ROCE of 77% EBITDA* margin of 52% Interim cash dividend of R22.60 per share Cost savings of ~R900 million Closing net cash* of R13.8 billion *EBITDA, attributable free cashflow and net cash constitutes pro-forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation.
BREAKTHROUGH LEADERSHIP Manager Mine Technical Services for Kolomela Mine Matodzi Magwabeni Matodzi Magwabeni the previous Principal Operational Planning for Kumba Corporate Office was appointed as Manager Mine Technical Services (MTS) for Kolomela Mine. Prior to joining Kumba, Matodzi occupied various roles in the mining industry including Technical Services Manager and Mine Manager positions at Seriti Klipspruit Colliery and South32 Wolvekrans Colliery. Matodzi holds a Bachelor of Science Honours in Mining Engineering from the University of the Witwatersrand and a Post Graduate Diploma in Management Practice from the University of Cape Town. She also holds a Mine Managers’ Certificate of Competency from DMRE (Underground and Surface Blasting) and completed an Emerging Leaders Programme from the University of Cape Town Centre for coaching. Manager Mining for Kolomela Mine Rico van Staden We are pleased to announce the appointment of Rico van Staden as the new Manager Mining for Kolomela Mine. Rico is a seasoned Mining Engineer with more than 25 years’ experience in the industry. He has held multiple operational, technical, and leadership roles, including Director at Agnomix, Operations Manager, Manager Mining at Exxaro Resources, Business Unit Manager at DMC Mining Services (Republic of the Congo – Brazzaville) and Pit Superintendent at Kumba Resources. Rico is no stranger to iron ore mining, he was part of the start-up of a new iron ore mine (Mayoko in the RoC/ DRC) where his role included being a member of the Owners’ team to ensure operational readiness. Rico holds a Bachelor of Engineering in Mining and a Masters of Engineering in Project Management, both from the University of Pretoria. Rico completed his Mine Managers Certificate of Competency from DMRE. He also holds a Master of Business Administration as well as a Post Graduate Diploma in Future Studies from the University of Stellenbosch. Please join us in welcoming Rico! Manager SHE for Kolomela Mine Bongani Mashaba We are delighted to announce the appointment of Bongani Mashaba as Manager Safety, Health and Environment for Kolomela Mine. Bongani has a wealth of experience within the safety management field in multiple commodities. Prior to joining Kumba, he held various roles including Group Health & Safety Manager at Universal Coal Energy Holdings, SHEQ Manager at Tronox KZN Sands, Group Health & Safety Manager at HCI Coal and Head SHEC at Exxaro Resources Inyanda Coal in Emalahleni. Bongani holds a National Diploma in Safety Management from the Vaal University of Technology, a B-Tech in Safety Management from the University of South Africa and he is currently studying towards a Post Graduate Diploma in Business Administration. Please join us in welcoming Bongani to Kumba! 10 DIGGING DEEPER AUGUST 2023 OUR PEOPLE Leadership Appointments at Kolomela 10 DIGGING DEEPER AUGUST 2023
We would like to congratulate our CFO, Bothwell Mazarura on being appointed as the new International Women In Mining (IWiM) Board Member. Congratulations “I’m really excited to be joining this organisation and to contribute to the pursuit of gender equity and promoting women’s voices, access to opportunities and leadership in mining,” said Bothwell. Happy Women’s Month AUGUST 2023 We are #TakingUpSpace by making a difference with charities in our communities. We are taking pride in making an impact and creating enduring value. Join us while we are creating space for everyone. Raylene van Wyk, P&O Manager DIGGING DEEPER AUGUST 2023 11
We are celebrating the strong women of Kolomela August is women’s month and we focus on the amazing women on our mine and the contributions they are making to our success. Betty Maqoma-Smith Being a woman in mining means embracing challenges, proving that we are just as capable of excelling in physically demanding tasks, mastering complex machinery, and collaborating seamlessly with our male counterparts. Our presence is a reminder that diversity enriches any field, bringing fresh perspectives and innovative solutions to the table. To my fellow women in mining, remember that you are a force to be reckoned with. Your dedication, passion, and resilience are shaping the future of this industry. Keep breaking barriers, keep chasing your dreams, and keep shining brightly. Puseletso Mogorosi I am who I am because of the women that came before me, and I strive to become a better version of myself for those who will come after me. I will always be my sister’s keeper. Ranine Pedro Women are the most powerful being on Earth. Our strength lies in our ability to transform vulnerability into a catalyst for growth and connection. Our strength lies in our ability to rise, to uplift others, and to stand firm in the face of uncertainty. The setbacks we've encountered have only fueled our determination to prove that we're not defined by our circumstances but by our ability to adapt, learn, and thrive in the face of adversity. 12 DIGGING DEEPER AUGUST 2023 OUR PEOPLE
Omphile Sebogodi Being a woman is a gift. We are flowers, nurturers and beautiful. Beauty in our imperfections, the shades, or the challenges. We lead, we flow, we are love, we conquer, and we are capable of anything we put our minds to. We are mothers of the nation; we raise all children. You are appreciated. Anna Elida Manala and Miena Bessies We are not just strong women, we are architects of change, warriors of progress, and embodiments of the fierce determination that continues to shape the world. Let us be unapologetically ambitious, boldly pursuing our dreams and blazing trails for those who will follow in our footsteps. Brenda Myekwa and Cecilia Makoloboto As strong women, we embody the power of unity and sisterhood. We know that empowering one another does not diminish our own strength, instead, it amplifies it. When we lift each other up, we create a powerful network of support that transcends generations, cultures, and backgrounds. Let us remember that being a strong woman means embracing our worth, standing tall, and demanding the respect and equality we rightfully deserve. DIGGING DEEPER AUGUST 2023 13 OUR PEOPLE
Women in Mining is taking up space in our communities Kolomela Women in Mining in partnership with the Real You Allies (members of the LGBTQI+ community) and MTS colleagues, made an impact in our community by preparing a delicious warm meal for the children of Forever Little Stars, a creche in Marantheng within the Tsantsabane community on Women’s Day. We are proud that we can take what we have to help make a small difference in the lives of the vulnerable. Feeding the vulnerable is not just an act of charity, it's an act of humanity. It's about recognising the inherent dignity of every person and ensuring that no one is left behind. It is important to remember that your circumstances can change in an instant, finding ourselves in need one day. Making a difference when you are able to, can change a child’s life one day at a time. 14 DIGGING DEEPER AUGUST 2023 OUR COMMUNITIES
DIGGING DEEPER AUGUST 2023 15 PARTICIPATION Get instant access to information on Anglo American resources available in your community. Find out about the latest youth and entrepreneurship programmes, job opportunities, and more. Connect to our new WhatsApp community platform ... Rea Connecta. Meet the face that makes a difference WhatsApp "Hi" to +27 76 719 0151 +27 76 719 0151 • Become a vendor • Tips and documents • Job opportunities • Community noticeboard • 1-on-1 live chats Winner announcement • Top three winners per month • Announced every second week of the month • First announcement July 2023 • Last announcement January 2024 Safety recognition competition Congratualtions to the winners of our Section 23 safety competition Keep entering the competition until 31 December 2023. Use the tool, apply the rule and SAVE A LIFE! You can stand a chance to win a Sunbeam Oven Stove, an Air Fryer or a two plate gas stove.
OUR ENVIRONMENT HEALTHY LIVING You are not alone Employee wellness support Wellness Support for all employees and contractors is available from our Life Employee Health Solutions (Careways) and Summit team on site. All interventions are confidential and support is available on various wellness matters. Contact options Kolomela Care Hub: Old UGM Clinic (Next to BI Building) - 053 313 9238 SMS line: 31581 Toll Free number: 0800 872 233 Email address: [email protected] Engage App: https://engage.datafree.co/care We are there to support you so you can function optimally. Living With Dignity Hub Complaint Processes Living With Dignity Hub Complaint Processes Friday Fram s I’mPoss 24 7 The Living with Dignity Hub responds to complaints and provides support to victims. This Complaint Process and Procedures Framework covers SHGBV and It applies to employees at all of Anglo American's business units in South Africa, guiding our interactions with everyone we work with. The Living with Dignity Hub responds to complaints and provides support to victims. This Complaint Process and Procedures Framework covers SHGBV and BHV which can occur in a work environment. It applies to employees at all of Anglo American's business units in South Africa, guiding our interactions with everyone we work with. Whether you are an employee, contractor, visitor, or a supplier to Anglo American... …there are clear guidelines in place on how you should respect and value everyone. Bullying, harassment, and sexual misconduct are not tolerated. 16 DIGGING DEEPER AUGUST 2023