Transformation

The purpose of Broad Based Black Economic Empowerment (B-BBEE) is one of the strategic issues that focused at playing a meaningful role in South Africa’s Economic Transformation. It is a government initiative to promote economic transformation in order to enable meaningful participation in the economy, primarily by black people, and other historically disadvantaged South Africans. B-BBEE is aimed across the spectrum of stakeholders comprising shareholders (realign existing shareholding and directorships to include HDSA’s), customers (grow the customer base of HDSA’s), employees (grow HDSA management and other employee categories) suppliers (establish a significant B-BBEE supplier base) and communities (grow partnerships providing financial and other resources to HDSA enterprises and communities in order to enhance sustainability.

The Transformation Initiative in the South African mining sector is governed by the Mineral and Petroleum Resource Development Act 2002 (MPRDA), the Mining Charter and the Broad-Based Economic Empowerment Act 2007 (The Codes of Good Practice)issued by the Department of Trade and Industry.

The Economic downswing in the FY2009/2010 had an impact on the company. Cost saving and restructuring initiatives were implemented during the year to position the company to absorb the unpredicted economic meltdown. The transformation working group, however, maintained favourable targets in keeping with the transformation policy.