Extractive to Additive. The Story We Mine. Sustainability Report

Transcription

1 Extractive to Additive. The Story We Mine. Sustainability Report

2 Our Vision Black Mountain Mining strives to be world-class, driven by a professional team that is trustworthy and passionate about sustainable mining for the benefit of all stakeholders. In practice, this vision means: Creating a performance and sustainability culture amongst our people Debottlenecking the production processes Cost Leadership to get into Q1/2 of the C1 Curve by moving from 8ktpa to 12ktpa metal output Optimising the life of the mine reserve and resources Ensuring highest governance of the business Improving public image both regionally and nationally Our Mission We are committed to excellence in all aspects of our business and dedicate ourselves to our vision through: Sound safety, health and environmental practices Development of people, knowledge management and skills potential Nurturing mutually beneficial relationships with all our stakeholders Ensuring attractive returns on investment for our shareholders Maximising output from mining and processing operations Heightened technological and production practices Responsible and sustainable life of mine strategies Values We abide by the Vedanta plc Code of Business Conduct and Ethics. Production and profits will not compromise safety, health or the environment. We promote fairness, transparent communication, dignity and trust. Co-operation and teamwork form the cornerstone of our operation. We encourage individuals to develop and strive for excellence. We expect and recognise superior performance. Sustainability Report

3 ABOUT THIS REPORT This is the first sustainability report of Black Mountain Mining Pty Ltd (BMM), as per the international guidelines of Global Reporting Initiative (GRI), an organisational sustainability report that discloses our economic, environmental, social and governance performance. Through this sustainability report, BMM aims to present its activities, issues and practices of the past year, while sharing its plans for the future. Sustainable development is an integral part of our business practices, long-term strategy and overall ethos and we have attempted through this report to reflect our triple bottomline approach. While creating this report, the guiding principle was to be as clear and transparent as possible. BMM has been part of the sustainability reports of our parent company Vedanta Resources plc. The economic, environmental and social information has been taken into account and covered regularly in Vedanta s annual sustainability reports, which have been independently audited and certified by DNV GL. This report covers the reporting period from April 1st, 213 to March 31st, 214 and we intend to make sustainability reporting a practice and report annually henceforth. This report is based on the GRI ver 3.1 Guidelines and GRI s Mining and Metals Sector Supplement (MMSS), and we have aimed to report on all relevant core and additional indicators, complying with application level A. The data points reported cover economic, environmental and social performance indicators as per the GRI G3.1 Guidelines (see page 56 for the GRI Content Index). This report covers all operations related to Black Mountain Mining (Pty.) Ltd. It covers the Black Mountain Mine consisting of the two ore bodies - Broken Hill Deeps and Swartberg. This report does not cover the Gamsberg Project as it is currently in the pre-feasibility stage and is scheduled to be ramped up in first quarter of 215. We have no other subsidiaries or joint ventures. The data presented in this report has been collated from and reported by various departments within the organisation for the period of April 1st, 213 to March 31st, 214. The data and figures in the report are actual numbers based on the methodology and standard management systems followed by our Health, Safety, Environment, Corporate Social Responsibility and other departments, in line with industry practices. Our performance will be be reported henceforth on a year-on-year (YoY) basis and forthcoming performances will be compared with the current year s performance; therefore targets for the coming years will be set and reported as and where applicable. The report is organised into broad dimensions of the Company s sustainability performance and the content is based on the concerns voiced by our stakeholders, both internal and external. We follow a structured process to collect inputs for our report. Our stakeholder and materiality sections outline critical issues, as well as our focus areas for the forthcoming years. We value the feedback of our stakeholders and welcome any suggestions and comments on this report or any aspect of our approach to sustainability reporting. Please to: [email protected] or [email protected] No. Company SD Report ISO 141 OHSAS 181 Operations covered for Black Mountain Mining (Pty.) Ltd. for the SD report Black Mountain Mine Covered Certified Certified 2 Gamsberg Project Not covered - Pre-feasibility stage 2 Black Mountain Mining

4 CONTENTS Vision and Mission Our Vision Our Mission Values About this report Statement from the Management Kishore Kumar - Chief Executive Officer of Base Metals (Africa, Ireland and Australia) Anton Lubbe - Chief Operating Officer of Vedanta Zinc International André Trystman - General Manager, Black Mountain Mining The Story we Mine Organisation Structure Approach to Sustainability Stakeholders and Materiality Economic Performance Ethics and Human Rights Mining Human Potential Human Resource Management Diversity and Equal Opportunity Training Health and Safety The Environment Story Energy Water Biodiversity Waste Product Repsonsibility Community The Partnerships We Mine Need-based Interventions Other Initiatives Glossary GRI Index Sustainability Report

5 STATEMENT FROM THE MANAGEMENT Dear Stakeholder, I take pride in presenting to you the first ever sustainability report of Black Mountain Mining, developed as per GRI G3.1 guidelines. We believe this report will help you understand our sustainability journey and strategy. KISHORE KUMAR Chief Executive Officer of Base Metals (Africa, Ireland and Australia) The Story We Mine Extractive is always looked down upon as an industry which takes away rather than gives back. Which is precisely why, in this report, we want to tell you about The Story We Mine. How we strive to leave a positive impact on society and the environment even at the time of foreclosure of our mines. In this report our effort therefore would be to share with you our strategy, processes and outcomes, which will leave you in no doubt that extractives can become additives and add value to society at large. A New Sustainable World We believe any growth, especially in the developing world and especially South Africa, should come only if it helps build a new world with sustainable opportunities for all stakeholders. Extractives to additives - the journey needs to undergo a process of empowering the individual, society and the community. The specific tasks that emerge are: Make the workforce feel empowered to take business decisions Empower the local community Build trust in people and society Manage the surrounding physical environment in a responsible manner Growth and Expansion With the acquisition of mines, there are always a few known and unknown challenges and issues. As a company focused on delivering stakeholder growth, we like to foresee risks and plan accordingly. In fact we are known to take challenges in our stride and turnaround companies. As a step in the same direction is the revival of the Swartberg Mine project and the development of the Gamsberg Project. Empowering Employees The key to high productivity and long-term success of any organisation is building the competence of the workforce and creating an environment where employees are motivated and empowered. At Black Mountain Mining, the Manage my career initiative gives individuals the platform to look at their careers and be responsible for them as individuals, thereby empowering them to attain their professional goals. 4 Black Mountain Mining

6 An enterprising group of our young leadership team visited the Zincgruven Mine, Sweden to study the best practices at the mine and use these as a benchmark for enhancing and improving practices at BMM. The team came back with a renewed focus on benchmarking specific areas of improvement at BMM, namely Manpower and Productivity, Cost of Production, Use of ERP systems, and SHEQ practices. Mine Revivals and Longevity Our strategic focus is on increasing the mine life of assets through LOM extension methods and continued exploration. Our keen efforts have already seen results with the revival of the Swartberg Mine, seen as one of the most strategic assets of the Black Mountain Mining as it extends the life-of-mine by another 15-2 years. Further, we have invested up to USD 9 mn since 212 in exploration and drilling to extend the life of mine. Currently, the feasibility study of Gamsberg is underway and we are in the process of evaluating technical and financial options. Health and Safety of Our People Health and safety is of paramount importance to us, and we remain dedicated to providing a safe workplace for our employees. Fall of Ground (FoG) remains one of the biggest challenges in safety faced by underground mining operations. Whilst our endeavour has been to mitigate this risk, we lost a precious life unfortunately due to FoG in the reporting period. Extending our deepest condolences and full support to the aggrieved family, the regretful incident has made us determined to ensure an even more rigorous safety management system. With a view to avoid such incidents recurring, we upgraded our engineering and administrative controls, and put in place a FoG management system. Further, Black Mountain Mining is also a part of Northern Cape Safety Tripartite forum that meets on a quarterly basis. This forum consists of Safety representatives from the Northern Cape Mines, the Unions and the Department of Mineral Resources. This forum discusses and deliberates issues involving improvement of Safety in the province through sharing of lessons learned from accidents and incidents. Ecological Sustainability Mining is not without its challenges. However, we believe in seeking sustainable solutions for the challenges solutions which would leave a positive legacy. Our operations at BMM are in the bio-diversity hotspot zone of Bushmanland and we have endeavoured to ensure minimal impact of our operations on the sensitive ecosystems by implementing a sustainable Biodiversity Management Plan. We have therefore collaborated with International Union for Conservation of Nature (IUCN) to develop a Sustainable Biodiversity Management System in the Namaqualand Region. Water management is a key challenge for the mining industry. Since BMM is located in the dry, arid hotspots of Bushmanland, preservation of the source of water - Orange River also plays an important role. Social Responsibility Social upliftment of society through education, health initiatives and local empowerment is very important. As we are located in an intensive sun radiation zone, we organised a corneal transplant surgery for about 4 patients in the Khai-Ma region during the reporting period. In addition to that, we have several programmes and initiatives in place to comply with our commitment of Social and Labour Plan. Doing the Right Thing for Today and Tomorrow Accountability and transparency are key issues that our top leadership directly gets involved with and it s one of the principle pillars of the sustainability strategy at BMM. This being our first sustainability report, I personally seek your valuable feedback, as you are one of our key stakeholders. Your inputs and analysis will help us to improve and enhance our sustainability performance further. Looking forward to interacting with you on a regular basis through this annual publication on Sustainability. Sustainability Report

7 STATEMENT FROM THE MANAGEMENT Dear Stakeholder, I am pleased to present to you the first sustainability report of Black Mountain Mining, which adheres to the international guidelines of Global Reporting Initiative G3.1. This report discloses the performance of our operations in an honest and transparent manner, whilst following the Vedanta Group s sustainable values. ANTON LUBBE Chief Operating Officer of Vedanta Zinc International Additives from Extractives Our business focus remains on extension strategies for the life of mines. It s with this intent that completion of the feasibility studies of the same are currently in progress for the Gamsberg project and and we are planning to extend the life of mine for another 15-2 years with the revival of the Swartberg Mine. Safe Work Culture Despite our best efforts to ensure a safe and secure workplace for our employees, it was unfortunate and regretful to have lost a precious life during the reporting period due to Fall of Ground (FoG). The fatality highlights the fact that there can be no scope for complacency in safety management and the need for us to be vigilant every second in everything we do. Determined to avoid recurrence of serious and fatal incidents, we have upgraded the system with the enforcement of Trigger Action Response Plan (TARP) system, mandating the use of scalers for loose rock, safety orientation and refresher of workers amongst other things. We have tightened our safety systems with a no compromise attitude at the management level. A Sustainability Committee headed by the COO oversees the policy, implementation, audit and review of safety standards. Aligning the safety initiatives with social and specific behavioural attitudes, we have launched a customised behavioural approach program - Zero Incident Process (ZIP). ZIP is based on psychological understanding to change the way an employee thinks and behaves by enabling change in the attitude and thereby perception towards safety. Employee Wellness The life of a mine is finite and our responsibility towards our employees - an integral part of our operations - is to ensure that they have the best learning and development environment, giving them the opportunity to upgrade their skill sets and learn life-skills. At BMM, we have initiated a Future Forum programme to ensure that our employees are equipped to handle life after mine closure. Future Forum aims to address the impact of the loss of jobs and other issues associated with mine closure, well in advance of them occurring, should no additional resource be identified that may increase the current life of mine. Employee health is tracked regularly through a medical surveillance and a hygiene environment management programme. This programme seeks to create awareness amongst employees on their health state, diseases like diabetes and heart conditions and encourage them to imbibe a healthy lifestyle. We encourage employees to participate in sports and all our operations therefore are equipped with sports and recreational facilities. 6 Black Mountain Mining

8 Social Responsibility Community is amongst our foremost stakeholders and there can be no sustainable mining project that can ignore the community. Creating sustainable economies around our mining projects is a part of our long term CSR strategy especially in lieu of the mine closure in future. At Black Mountain Mining, we have reviewed existing Social and Labour Plans and are soon moving the same to a broader business aligned Social Plan. Environmental Responsibility We are using technological advances and innovations to initiate a pilot project of producing magnetite concentrate at BMM, which will result in us reducing our tailings storage and thereby create a multitude of opportunities. For Gamsberg project we have institutionalised a mitigation hierarchy in the project design to minimise the environmental footprint and have developed an offset plan for all residual impacts. I welcome all our stakeholders to write back to us with their suggestions, which will help us to improve and enhance our sustainability performance. Sustainability Report

9 STATEMENT FROM THE MANAGEMENT Dear Stakeholder, I take pride in presenting our first sustainability report as per the international Global Reporting Initiative guidelines version G3.1 of Black Mountain Mining (BMM). This report highlights our performance and our focus on enhancing the economic, environmental and social performance of the Company. ANDRÉ TRYTSMAN General Manager, Black Mountain Mining The Story We Mine In a true business sense, sustainability for mining is the Life of Mine as mines have a finite life. The story of mining thus revolves around extending life of mine by near mine and exploration techniques, the story of our strong economic development, our human potential, our relationship with the community and the Khai-Ma region. This reports talks about some of the successes that we have had and performed in the economic, environment and social areas. The Economic Story The economy of the mine as well as the socio-economic situation of the Khai-Ma region depends on the sustainability of our operations, with the current Deeps mine expected to wind up and close within the next six years. However, our thrust on engaging new techniques and exploratory methods for extending the life of mine has borne fruit with the revival of the Swartberg Mine. At the time of this report, the Swartberg Mine, with operations commencing by 216, is on its way being opened, extending the life of mine for another 15 years and creating 3 more jobs. Our strategy is also to keep the cost structure robust with low cost operations, without compromising on the quality and safety of employees, through a change in mining techniques. The Swartberg Mine will be developed as an open pit operation that will later evolve into an underground operation, producing 3,, tonnes of ore per annum initially and ramping up to 2.4 million tonnes per annum when it reaches full underground capacity after six years. The Safety Story Safety of our employees continues to be of utmost importance to us, focussing on continual improvement of our safety statistics and pursuing the highest standards on safety management systems including OHSAS 181. However, despite our best efforts, it aggrieves me to report a loss of life of one of our employees due to a fatal accident when a Fall of Ground (FoG) took place in the mine. This tragic loss of life has endeavoured us to double our efforts in ensuring more rigorous safety mechanisms in place. FoG being one of the biggest risks and challenges in underground mining, we are determined to avoid incidents of FoG again. We have upgraded our systems with the enforcement of Trigger Action Response Plan (TARP), as a measure of mitigating another loss of precious life. Through the system, we have mandated the use of scalers for loose rock, forming specific Rock Engineering focus groups to continue to create awareness of stress planes and possible intersections of these planes with other contacts in the working place. We also recognise that safety is more to be practised than inculcated and hence, we have introduced a behavioural safety programme, Zero Incident Process (ZIP) to set the values of safety right. 8 Black Mountain Mining

10 The Employee Story Being one of the largest employers of the Namaqua region, employees are an integral part of our Company. Over 8% of our workforce is from the local region of Khai-Ma. With BMM located in an isolated region, our responsibility is not just with employees, but also the families and the town of Aggeneys, established to service the mine. Our people practices emphasise training and development of our employees and we also award bursaries in the specific disciplines in the regional universities and institutions, encouraging higher education in the region. At the same time, it helps BMM in case of a need or shortage of qualified people. As a progressive measure to help our employees in developing life skills for their future after their jobs, we have launched a Future Forum programme, ensuring that our employees are equipped to handle life after mine closure. Future Forum aims to address the impact of the loss of jobs and other issues associated with mine closure, well in advance of it occurring, should no additional resource be identified that may increase the current life of mine. The Community Story Creating sustainable economies around the mine is a key focus for us at Black Mountain Mining, and we continue our support to the communities around our mine in areas of education, health and sustainable livelihood amongst other need-based initiatives. We are one of the key sponsors of the ischool Africa initiative and have donated ipads to 4 primary schools at the rate of 2 each for use by all learners. This initiative has seen more and more children excited by the reality of engaging in e-learning as part of this digital age. The Namaqua region being one of the most radiation intense regions, eyesight-related issues are high amongst the population. BMM contributes towards a zero cataract in the Northern Cape, by supporting cataract surgeries in the area. We have set a target of 4 cataract surgeries at the start of the 214 financial year. We aim to develop alternate livelihoods for the communities so as to balance their dependence on the mine. As a major step towards this, we funded the training and mentorship programme for 45 Small, Micro, Medium Enterprises (SMMEs) in the Khai-ma Local and Namaqua District areas. We established and funded a brick-making project in community of Pella. This project has already secured contracts to supply the bricks for 6 RDP houses in the municipal area. Environmental Responsibility The Namaqua region is considered as one of the Biodiversity hotspots, and we make every attempt to manage the biodiversity and ensure that our operations have minimal impact on it. BMM is in a formal partnership with International Union for Conservation of Nature and Natural Resources (IUCN) that aims to ensure a sustainable biodiversity management system and to enhance and diversify rural livelihoods in and around the BMM properties. For the Gamsberg project, we have institutionalised a mitigation hierarchy in the design of the project to minimise the environmental footprint and have developed an offset plan for all residual impacts. We have initiated a pilot plant and tested the viability of producing marketable magnetite concentrate, with over 1, tons of concentrate produced and sold. The success of this experiment will not only enable us to reduce and manage our tailings, but also add a 5th product to our already existing product portfolio. We believe that in the story we mine, we should have a moral of the positive imprint we leave behind. I welcome all our stakeholders to write back to us with their suggestions, which will help us to improve and enhance our sustainability performance. Sustainability Report

11 THE STORY WE MINE Located in the Northern Cape Province of South Africa, Black Mountain Mining (Pty) Ltd. (BMM) is the largest employer in the Bushmanland and Namaqua region and has been in production for the past three decades. BMM is a base metal company chiefly comprised of the Black Mountain Mine, with operations in Exploration, Development, Production and sale of zinc, lead, copper and silver. It comprises of the Black Mountain Mine and the Gamsberg Project. While the Gamsberg Project is in the pre-feasibility stage, the operation Black Mountain Mining (BMM) has the potential to be operational for another twenty years. The Black Mountain Mining is an operation of Zinc International, which is a group of the Zinc assets in Africa and Ireland of Vedanta Resources plc. Vedanta Resources plc is a diversified natural resources group, with a market capitalisation of over US$1 billion that produces aluminium, copper, zinc, lead, silver, iron ore, power, including oil and gas. The Group has the world's largest zinc and lead mines, is one of the leading producers of copper and aluminium, is the largest private sector iron ore exporter from India, and is also involved in commercial thermal and wind power generation projects, with plans to double power generation within the next three years. The primary products of BMM are zinc, lead, copper and silver with mining around the town of Aggeneys in the Northern Cape Province of South Africa. Year Milestone Phelps Dodge entered into a prospecting agreement with David Graaf Interests Exploration drilling by Phelps Dodge at Swartberg Mine, Broken Hill and Big Syncline Underground bulk sampling started at Broken Hill Phelps Dodge commissioned a feasibility study at Broken Hill Phelps Dodge and Gold Fields of SA partnership (49%:51%) Official opening of mine on April 22nd, 198 Prospect mining started at Swartberg Mine, followed by feasibility study Deeps orebody discovered Anglo American acquired Black Mountain Mining and Gamsberg (1% interest) Feasibility study on the Deeps project commenced Approval of Deeps project in May 2 Deeps Main and Ventilation Shaft completed Mining at Broken Hill and Swartberg Mine discontinued BEE deal between Anglo American and Exxaro concluded Black Mountain Mining and Gamsberg 26% owned by Exxaro Vedanta acquired Anglo share in Black Mountain Mining (74% of Black Mountain) An underground Polymetallic mine in the Northern Cape region of South Africa, the core products of BMM are: Zinc concentrate - 35, MT Lead concentrate - 47, MT Copper concentrate - 4, MT Silver in Zinc/Lead/Copper concentrate Million Tr Oz 1 Black Mountain Mining

12 Awards Black Mountain Mining was awarded the Best Company to Work For title in 212 by Deloitte. BMM stood 22nd out of 36 medium size companies. In the mining category, BMM took 3rd place out of 4 companies who participated. Organisation Structure Vedanta Resources Sesa Sterlite 58.3% 1% 74% 1% Lisheen (Ireland) BMM (South Africa) Skorpion (Namibia) The remaining 26% in BMM is owned by Exxaro. The Vedanta Zinc International Management Structure CEO - Kishore Kumar S L Bajaj Advisory Board GM Finance Vijay Murthy VP - HR Braen Migogo COO Anton Lubbe 3 GMs VP Projects Satish Kumar GM Exploration Markus Schaefer GM Bus. Devpt. Marco Nyoni GM - Skorpion Prasad Suryarao GM - Lisheen Alan Buckley GM - BMM A Trystman Manager - SSD Lovish Ahuja The BMM Management team Name André Trytsman Brendan Jales Andre Basson Septimus Holtzhausen Mario Wendell Cloete VS Ganesh Pieter David Venter George van Greunen Sean Jenniker Designation General Manager HR Head, South Africa Mining Manager Metallurgical Manager Engineering Manager Finance Manager Safety and Sustainability Manager Mining Manager Swartberg Mine Mineral Resource Manager Sustainability Report

13 APPROACH TO SUSTAINABILITY We have implemented and adapted world-class management processes and standards to integrate sustainability into our business. BMM adheres to the highest standards of ISO 141 in environment management and OSHAS 181 in Health and Safety. As part of the Vedanta Group, we also are committed to following the Vedanta Sustainability Model comprising of the three pillars: Responsible Stewardship, Building Strong Relationships and Adding and Sharing Value. We also follow the Vedanta Sustainability Framework that has been developed based on the Vedanta Sustainability Model. The Framework provides a clear, structured guidance to manage our business sustainably. It comprises of a full set of policies, technical and management standards and supporting guidance notes aligned to international standards like IFC, ICMM and OECD guidelines. By using the Vedanta Sustainability Assurance Programme (VSAP), all the Group companies ensure compliance of the Framework, through an audit of our business and processes. A gap analysis was conducted to identify the gaps between our existing management systems and the Framework, basis which we implemented additional requirements needed to match the Framework. Value will help us to maintain a licence to operate Adding and Sharing Value Responsible Stewardship Long-term sustainability Relationships enable us to contribute to wider society Building Strong Relationships Reponsible governance supports relationship building Stakeholders and Materiality We believe that stakeholders are key to the success of any business. Therefore we constantly strive to understand our stakeholders' needs and engage with them effectively to make a positive impact to both our business and their needs. Our key stakeholders are listed below. We aim at working with our stakeholders towards achieving a common goal. The modes of engagement and concerns and what BMM has done to address them are listed in the table below as well. Stakeholder and Significance Mode of Engagement Key Sustainability Concerns Vedanta Resources Plc EXCO Meetings, Annual Reports Profits through sustainable business Government Regulatory Bodies and Policy Makers Employees Regular meetings and structured communication on key parameters a. economic; b. environment, health and safety; c. social issues; and d. regulatory trends Communication, Workshops & Training, Performance Appraisal, Township Regulatory Compliances and Community Interest, Environmental Management Plan, Social Labour Plan, BEE Policy Future Forum Health and Safety Employee Development Bursaries IDP 12 Black Mountain Mining

14 Stakeholder and Significance Mode of Engagement Key Sustainability Concerns Community Need-based discussions/written communications; Economic development Livelihood Employment Community Welfare & Relations Suppliers Formal communication through letters & online web updates on policies and practices SMME programme Policies & Practices related to Suppliers SMME programme HDSA/BEE Policy Materiality Material Issues A materiality determination exercise was conducted to identify the most material issues to Black Mountain Mining, adhering to the principles of GRI. The issues were identified by following the steps below: 1. Organisational Perspective 2. Stakeholder Engagement 3. Industry Analysis Based on these interactions and assessment, material issues were identified. These issues were then discussed in a pan-department materiality assessment session, based on which the first 7 were identified to be priorities. Community Development Safety Life of Mine Water Biodiversity Business/Economic Performance Energy Waste Emissions Sustainability Report

15 Corporate Governance We follow the Vedanta corporate governance systems and have extensive internal audit systems as well as external audits. Our EXCO committee consisting of the GM and other senior management report to the CEO Vedanta Zinc International and Vedanta Base Metals, Africa, Ireland and Australia. The organisational structure and governance framework at the Group level ensure a strong system of authority and accountability to operational management, within the purview of the business strategy, policy guidelines and standards laid down by the Board of Directors. The executive team, constituting the operational (divisions and units) management and other corporate functions, ensures the Company s sustainability development standards are maintained and operations are aligned to these standards. The structured internal review process consists of the following committees, other than the statutory committess for works, safety and welfare. Executive Committee (at the Vedanta group level) Zinc International Management Group Operations Review Committee Compliance Committee Sustainability Core Committee For all the Zinc International Operations, remuneration is linked to sustainability performance. The Remuneration Committee of the Board of Directors reviews the performance of each operation on the dimensions of safety, business, financial and other sustainable development parameters. This is used as the basis for setting the annual performance payments and incentives for the senior management. The variable performance system for executives is linked to Company and unit performance on profits, safety performance and other key drivers of performance. Safety performance is also a factor applied to individual performance in the evaluation and reward of final incentive. Name of the Director R. Kishore Kumar S L Bajaj A Lubbe A Trytsman P A Koppeschaar J C Badenhorts V J Murthy Category CEO Exxaro COO GM Black Mountain Mining Exxaro Exxaro GM Finance Code of Conduct We have adopted our parent company, Vedanta Resources Code of Conduct for all our employees, including the senior management. The Code of Conduct covers aspects like conflict of interest, human rights, bribery, insider trading, whistleblowing, gifts, confidentiality, etc. All our employees are required to reiterate their adherence to the Code of Conduct. Whistleblower Policy BMM broadly follows Vedanta Group s Whistle Blower Policy. In that we are committed to the highest standard of transparency, accountability and openness in all our dealings with stakeholders in line with good corporate governance principles. Our Whistleblowing Policy has been adopted to govern receipt, retention and treatment of complaints, and to protect the confidential, anonymous reporting of the same. These policies and procedures apply to and are available to all employees of the Company, its subsidiaries and all external stakeholders. The whistleblowing legislation provides protection to stakeholders for any disclosures made in good faith. 14 Black Mountain Mining

16 Economic Performance Black Mountain Mining brings considerable economic benefits to the local community and contributes indirectly and directly to the Khai-Ma and the Namaqualand region as a whole. Aggeneys being a dedicated mining town, most municipal services in the town are currently provided and funded by the Company. There has been a decline in the production of Zinc for the reporting period of , mainly impacted by the falling grades of the ore from Deeps. The production was also affected by an accident caused at BMM. During the financial year March 214, BMM's profit was million USD. Production - MT / Year Zinc production - MT 31,769 38,577 28,999 Lead Production - MT 53,578 48,883 37,574 Copper Production - MT 2,79 3,799 6,88 Silver Production - MT Turnover (US$m) Sales performance in MT 46 Zinc Lead ,929 25,198 Zinc Sales Lead Sales Copper Silver ,941 Copper Sales Silver Sales (in USD) Direct Economic Value Generated (A) Revenue (through core business segments) 171,946, ,887, ,535,738.7 Other Income (through other sources) 2, , ,796,37.51 Total 172,146, ,262, ,332,19.21 Economic Value Distributed (B) Operating cost 8,94, ,13, ,383, Personnel expenses (wages+benefits) 31,252, ,522, ,25,713.7 Interest Charges 27, , , Taxes and royalties (given to various govt. wherever business units are located) 23,86, ,524, ,26, Dividends (payments to capital providers) 27,188, ,433, Donations (political parties/politicians) 7, , , Community development/csr investments 473, , ,754.8 Total 162,92, ,164, ,261, Economic value added (A-B) 9,243, ,98, ,7, Sustainability Report

17 Growth BMM, with a life expectancy at 22 and beyond, has been a profit driven project, with a total production of 78,23 million Tons of ore in The success at BMM has been its ability to mine at very low costs. A new initiative, the pilot project of treatment of tailings to produce magnetite, is expected to independently sustain the mine. The success of this project would demonstrate efficient resource recovery whilst adding a 5th product to our existing product portfolio. Our Swartberg Mine project is expected to provide more opportunities for growth since the Life of Mine has been extended beyond 15 years. Our Gamsberg project is undergoing a series of feasibility studies and the ramp up is likely in the first quarter of 215. The feasibility study conducted by Eskom in 29 established that the mine's life is expected to be more than 2 years. The Tier 1 deposit at the mine looks promising with a possible yield of 4ktpa to 53ktpa of SHG zinc metal. Indirect Economic Impact BMM is one of the largest private employers in the Namaqua region with about 8% of employees being locals. 62% of these local employees come from the Namaqua, Khai-Ma and Nama Khoi municipal areas. Aggeneys, the town established to accommodate the employees of BMM, indirectly is responsible for ancillary services such as housekeeping staff and local businesses such as shops, restaurants, etc. These businesses and clubs are directly or indirectly supported by Black Mountain Mine, providing additional employment with non-mine skills development and therefore economic benefit to the area. We also support the local community with several developmental initiatives including supply of potable water to farmers in Pofadder, Pella, Aggeneys; construction and maintenance of infrastructure for public convenience such as roads (gravel road of 16 km from the N14 to Loop 1 railroad siding is maintained by BMM). The extended life of our Swartberg Mine is likely to create approximately 3 new job opportunities when it starts operation in 216. Our Gamsberg project is expected to cater the growing demand for zinc in South Africa and generate foreign exchange earnings for the nation. Mining Closure Provisions Black Mountain Mining has established an Environmental Rehabilitation Trust to take care of decommissioning of the mines, restoration and environmental rehabilitation liabilities. The funds in this trust are kept for rehabilitation purposes in the event of default on its rehabilitation liabilities. The funds will only be available after obtaining a closure certificate for the mining areas. The income of the trust is kept in the trust account. To further strengthen our commitment towards environmental restoration and rehabilitation, Rand Merchant Bank, a division of First Rand Bank Limited, has issued a guarantee for USD Million in favour of the Department of Mineral Resources, as assurance that BMM will honour its environmental obligations at the end of life of the mine, which for BMM is expected to be March 31st, Black Mountain Mining

18 The story of our progress in the reporting period Objectives and targets Status Performance FY Objectives and targets FY Achieve zero fatal accidents Health and safety There was one fatal accident in May 213. Achieve zero fatal accidents Zero lost time injuries We recorded seven lost time injuries Four lost time injuries Zero occupational health diseases Improve incident reporting Vedanta Sustainability Framework There were no cases of occupational health diseases recorded Target improved reporting by Safety Reps base reporting of 6% of Safety Reps submitting reports in time. This was increased to 95% Achieved 74% against a target of 8% Zero occupational health diseases Improve reporting of near miss incidents Improve compliance to Vedanta Sustainability Framework. Achieve 5% improvement on the new format of the framework template ZIP / Behaviour based Safety Programme Roll out ZIP to all production supervisors and managers. Target achieved and also included non-production supervisors Environment Roll out ZIP to all mining employees by March 215 Achieve Zero Cat 4 & 5 environmental incidents Cat 4 & 5 environmental incidents Achieve Zero Category 4 and 5 environmental incidents Waste Management recycling Progress Closure Resource Consumption Develop feasibility of composting project at BMM instead of landfill disposal Increase recycling by including plastic recycling Water Intensity target achieved at.89m3/t against target of.98m3/t Energy Intensity target.38gj/t achieved against a target of.41gj/t CSR Composting project implemented by December 214 Recycling contract finalised with BRL December 214 Update closure liability estimate to increase accuracy Complete Plaatjiesvlei rehabilitation studies Reduce Energy and Water consumption Achieve a water intensity figure of 1m3/t (based on new product i.e. magnetite) Achieve an Energy Intensity figure of.35gj/t SLP LED Project implementation Projects implemented on time within budget Leverage support for projects for 214/18 Sound Community and Local Government Relations Achieved more than scheduled contact sessions with Stakeholders mainly because of sessions relating to the Gamsberg Project. Sustain good relationships and aim to improve on same. Eye Clinic Programme Exceeded on target of 4 for financial year Sustain performance for 214/15 Financial year. Key Risks and Mitigation We have an effective risk assessment process to identify, analyse, evaluate and mitigate possible events or risks that might impact the business. In order to minimise the risk, we respect the precautionary principle. Risks both financial and non-financial related to the business are identified and rated as per a well-defined Risk Matrix to establish financial and non-financial impacts and their likelihood of occurrence on a scale of Extreme, High, Medium and Low. The current controls to mitigate the risk are then reviewed to enable the development of a prioritised risk management plan. A risk management committee including the management and EXCOs review the risk matrix. The committee reviews the risks, changes in the nature and extent of the major risks since the last assessment, controls and action plans. Sustainability Report

19 Our top key risks and and mitigation plans for the reporting period are encapsulated here: Underground Safety and Fall of Ground (FoG): Fall of Ground (FoG) remains one of the most important risks and challenges of underground mining. To avoid further fatalities and injuries, a Trigger Action Response Plan (TARP) system has been implemented and geotechnical engineers have been employed with training and scaling authorised for all underground employees. A Code of Practice on ground support has been implemented, and safety signage upgraded in remote areas. Underground employees are trained on TARP. Safety Officers regularly conduct Inspect Safe Declaration of UG workings & Access ways. Annual quality check on support installations is also undertaken. Declining Production: Our strategic focus is on increasing the mine life of assets through LOM extension at the Swartberg Mine and Gamsberg projects. Exploration in the region around the mine is also taking place. Our keen efforts have already seen results with the revival of the Swartberg Mine, seen as one of the most strategic assets of the Black Mountain Mine as it extends the life-of-mine by another 15-2 years. Further, we have invested up to 29 Million USD since 212 in exploration and drilling investments for the Gamsberg project. Currently, the feasibility study of Gamsberg is underway and we are in the process of evaluating technical and financial options. Commodity Pricing and Financial Exposure: Commodity prices, prolonged poor metal prices and poor metal price outcomes have an impact on the profitability of the business. Cost and production controls are in place to offset the commodity pricing. Change Management Deeps to Gamsberg and Swartberg Mine: Change always creates some discomfort. As we move from Deeps to Gamsberg and Swartberg Mine, we are trying to make significant strides made in projects impacting deployment of key employees / resources to operations vs. project work. This will ensure that we are able to close the potential skill gaps for the new projects. Swartberg Mine Economic Viability: We are attempting to engage new techniques and exploratory methods for extending the life of mine. At the time of this report, the Swartberg Mine, with operations commencing by 218, is on its way to be opened extending the life of mine for another 15 years and will be used to provide continuous employment for the current Deeps employees. Threat of Business Interruption due to SA Industrial Relations/Unions: Stakeholder dialogue is the key in any industrial relations scenario. We therefore have put structured systems in place to interact amicably with unions. Organisational climate and relationship management always go a long way in thwarting the threat of business interruptions due to industrial relations. We are currently evaluating an ESOP Scheme to be looked at on an industry wide level. 18 Black Mountain Mining

20 ETHICS & HUMAN RIGHTS Ethics BMM follows the Group Company Vedanta Resources' Code on Business Conduct and policies on ethics and transparency, and is committed to the highest standards of business integrity, ethical values and professionalism in all its activities. We do not accept or endorse any activities within our companies that would affect our good reputation, and the reputations of our employees. All employees are trained on the Code of Conduct and ethics policies. All new employees, as a part of the induction process, need to be aware, read, appraise themselves and formally acknowledge that they will adhere to these policies when they join us. Bribery And Corruption We have a confidential hotline process in place for reporting incidents of corruption. We have not yet provided any specific training on anti-corruption policies. Our bribery and corruption policies follow that of the Vedanta Group's policies based on the UK Bribery Act of 21. All the business units including BMM were taken into consideration for assessing risks related to corruption. All executives of our Company have been briefed on the Company guidelines against bribery and corruption and all of them are signatories to these guidelines, having read and understood them as a part of their conduct rules. Management self-certification for compliance has been obtained and all staff self-certification is in progress. The Sign Off on Coverage of Annual Code of Conduct by the management is completed and the Declaration of Conflict of Interest and UK Bribery Act is signed off by the management on an annual basis. However, we regularly analyse our business unit for organisational risks related to corruption. We have an internal auditor and SOX auditor onsite regularly who are vigilant about such risks. During the reporting period, no substantiated incidents of corruption have been reported. Human Rights We have a detailed social policy that strives for protection of human rights. The annual induction modules include specific training on human rights for employees and security personnel. During the reporting period , 1353 employees were in the induction process with human rights covered during the induction. We currently have 45 security officers,who have been trained on human rights. Human rights training is also an integral part of the Vedanta Sustainability Framework implementation, for which all employees received training in Our Code of Conduct includes clear expectations of behaviours that respect human rights. Our Security Policy is incorporated bearing in mind specific security and human rights issues with regard to the Security Officers, employees and communities. All our employees, including the security personnel, need to adhere to this policy. The Vedanta Sustainability Committee, in , undertook internal reviews related to human rights and child labour risk assessment, amongst all the business units of Vedanta group including BMM. The objective of the review was to confirm that all Vedanta Group companies meet all applicable national and international guidelines and conventions on human rights with special reference to the UN Universal Declaration of Human Rights. The assessment confirms that the human rights policy is being implemented by all units. Sustainability Report

21 We oblige our contractors and suppliers to support our approach, and our contract terms and conditions insist on compliance with respect to regulations on minimum wages, contract labour, worker compensation and other similar requirements in the countries in which we operate. However, we do ensure that we do not employ or engage any child labour. We also have a specific policy for prohibiting forced labour. There are no indigenous communities living in the vicinity of the mine and therefore there are no incidents of violations involving rights of indigenous people. In addition, BMM also has a HDSA/BEE procurement policy and we encourage and support HDSA/BEE SMME companies for our procurement needs. Grievance Redressal At BMM, we provide our employees with a readily accessible procedure for addressing any problems or concerns they may have at work. By mode of an exclusive Grievance policy, we try and ensure a fair, expedient and equitable treatment of all employees and provide a mechanism for the acceptable solution of problems. The policy is also aimed at minimising potential causes of employee dissatisfaction. The implementation of the policy is done at three levels. It is initiated at an informal level with interaction with the employee to resolve by mutual discussion. The next level involves a four stage formal procedure for intervening into the case and paving a working pathway. The final level includes a joint forum discussion, which acts a common platform to address the issue of a particular employee and also as well as seek opinion of the masses for the same. Interestingly, we had no grievances reported in the last one year. Women-Led BEE deal BMM has signed a Memorandum of Understanding with Africa Rising Womenled Group, led by Ms. Mmule Lebeloane, to conclude a BEE deal through the formation of a joint venture logistics company. Africa Rising Women will, together with BMM employees and community beneficiaries, form a BEE consortium, and set up an integrated logistics company that will distribute the magnetite concentrate. Ms. Lebeloane described being women participants in mining logistics and value chain as pleasing yet demanding, a challenge. She further expressed the need to ensure that women in the region benefitted from the venture. Our Business Partners Our business partners suppliers, contractors and vendors form an integral part of our business and hence, we have a stringent selection mode for them. At the beginning of any business interaction, the suppliers are required to submit a declaration consisting of an extensive checklist of criteria based on their credibility, bribery & corruption issues, licensing and permitting, insurance, supply chain, subcontracting, sustainability management, environment, health and safety, child and forced labour, human rights and other social issues. New suppliers, contractors and vendors are compulsorily required to fill a checklist as an undertaking that they are not engaged or involved in any activity/ies that have any significant impact or pose a risk to the sustainability performance of Vedanta Resources Plc or its group companies. This checklist is to be filled in by them during the time of registration with BMM. If it is found that the information provided in the checklist is false or misleading, it will lead to cancellation of those contracts. This checklist includes questions on bribery and corruption, supply chain/product stewardship, sustainability management systems, environment, health and safety, child labour and human rights, among others. Contractual labour age is verified and documents maintained to prevent employment of child labour. We have not noticed any curtailment of freedom of collective bargaining at our suppliers. We also ensure that after this initial screening, our suppliers also meet the code of conduct laid down by Vedanta Resources Plc. The code of conduct clearly indicates that all suppliers should ensure compliance to all local and international norms on statutory compliances such as environment protection, child labour, minimum wages, anti bribery, corruption, health and safety, etc. Further, they should follow all environmental health and safety operational policies for smooth functioning of the system. Our procurement processes also reinforce our commitment to human rights, related to minimum wages and child / forced labour, ethical behaviour to mention a few. 2 Black Mountain Mining

22 Local Buying Our foresight for sustainable and responsible mining involves local procurement of goods and services. This helps us achieve our long term vision of a resilient supply chain for economic and social development of the community in which we operate. It also plays a key role in securing and maintaining our right to mine, developing thriving and healthy host communities, creating efficiencies in our supply chain and ensuring reliable access to critical supplies. We therefore have two policies, namely, Local Procurement Policy and HDSA/BEE Procurement Policy, in place. They provide us with a general framework for procurement across the supply chain. They enable access by local businesses and HDSA/BEE to supply chain opportunities that arise from the presence of our projects and operations. BMM's Procurement Policy applies to all Black Mountain Mining employees, including temporary employees, contractors and business partners. It is aligned to various charters and principles, including the Anglo American Good Citizenship Principles, the One Anglo approach currently being developed by Anglo American Plc and the Anglo Base Metals Pillars of Good Practice, to which the management is also committed. The management is also committed to the continual improvement of the efficiency of the Supply Chain, to enforcing and adhering to all Black Mountain Mining Policies and Standard Operating Procedures with due diligence and to ensuring workforce competence and responsibility at all levels through selection, retention, education and training in the Procurement Section. Historically Disadvantanged South Africans and Black Economic Empowerment BMM adheres to the HDSA/BEE Procurement Policy, with the vision to being sustainable and responsible in HDSA/BEE procurement, not only meeting the requirements of the Mining Charter, but positively contributing to a resilient supply chain and the economic and social development of the previously disadvantaged. Category Capital Services Consumables BEE % Spend 36% 73% 58% DMR Target 213 3% 6% 4% DMR Target 214 4% 7% 5% The objective of the HDSA/BEE Procurement Policy is to secure and maintain our right to mine, develop thriving and healthy HDSA/BEE businesses, create efficient supply chain and ensure reliable access to critical supplies. BMM's Senior and Line management have also put down their commitment to our HDSA/BEE Procurement Policy. Commitment towards supporting the development of commercially viable HDSA/BEE businesses, which also meet BMM's requirements, to encourage our non HDSA/BEE suppliers to attain recognised HDSA/BEE status among other policies to support HDSA/BEE businesses. For the reporting period of , our total procurement spend was USD.12 billion. Of the total spends, we maintained the target set by the South African Authorities for procurement of goods and services from HDSA and BEE. We also endeavour to encourage local sourcing within the municipality of Khai-Ma. The total spend for BEE for the reporting year is USD 36,276, Sustainability Report

23 CREATING POSITIVE CHANGE FOR SMALL BLACK-OWNED BUSINESSES IN RURAL SOUTH AFRICA CASE STUDY In case of development of Small, Medium, Micro Enterprises (SMMEs), a gap exists with regard to local procurement, where very little mentoring is given to smaller, local contractors in terms of complying with the mine s safety and other business standards. A need was seen to develop their business skills so that these SMMEs improve their level of service offerings to Black Mountain Mining and other mines in the Northern Cape. Phase 1: Phase 2: Phase 3: Phase 4: Macro-level assessment Develop database of SMMEs Micro-level assessment Recruit SMMEs and prioritise training needs Training and mentoring Quality assurance and monitoring Macro-level - stakeholder engagement Assess progress Identifying next steps for a sustainable solution to grow SMMEs in the region The project followed a phased approach to developing SMMEs in the region: The first phase focused on gaining a greater understanding of stakeholders needs in the region, and after the assessment over 2 SMMEs were listed. Phase two focused on developing initial criteria for selection and contacting SMMEs on the database, through interviews and follow-up sessions, resulting in identifying 45 SMMEs to address their business needs and skills gaps. Phase three provided training and mentoring to develop 45 SMMEs. A team of trainers and mentors worked closely with SMMEs at the start of the programme to develop a SWOT (strengths, weaknesses, opportunities and threats) analysis and action plan for each business. Black Mountain Mining funded the training and mentorship programme for 45 SMMEs in the Khai-Ma Local and Namaqua District areas for a period of 6 months from April 213 November 213. The training component included the following topics: Module 1: Communication and Customer Care Module 2: Financial management Module 3: Tendering and stakeholder engagement Module 4: Growing the business - Business Planning Module 5: Human Resource Management and Marketing The impact of the training initiative is demonstrated by the fact that there was an increased SMME enthusiasm and various businesses gained competencies in a variety of fields. At the mentorship closing ceremony, all SMMEs expressed appreciation for the eye-opening experience brought about by this initiative. Some of the significant impacts and improvements were: An increase from two SMMEs who had knowledge of breakeven point before the training, to 4 SMMEs (38 more) who had this knowledge after the training. An increase from 16 SMMEs with marketing in place before the training, to 34 SMMEs with marketing in place after the training. An increase from 17 SMMEs with basic book keeping in place before the training, to 35 SMMEs with this in place after the training. An increase from 16 to 24 SMMEs with a business profile in place after the training. An increase from 1 SMMEs to 15 SMMEs with a business plan in place after the training. An increase from 21 SMMEs to 26 SMMEs in the availability of bank statements being available. During the programme, four SMMEs registered with SARS, three SMMEs received Tax Clearance Certificates and two SMMEs registered as entities. 22 Black Mountain Mining

24 Figure 1: Impact and improvement due to training and mentoring, showing increased competence In addition to the training and mentorship, Black Mountain Mining has leased and made available a building in Pofadder to serve as a one-stop SMME Centre for overall enterprise development. BMM envisions that in the coming months, the building will be used as a one-stop SMME and community support centre in conjunction with other roleplayers like the Small Enterprise Development Agency and the Industrial Development Corporation. Outbound & Inbound Logistics Copper, Lead and Zinc are extracted from the ore and concentrated to a final product, which is then transported to Loop 1 siding (approximately 16 km east of Aggeneys) by road and rail to the Port of Saldanha, via the Sishen-Saldanha railway line. Currently the outbound transport by rail and road is 8:2, whilst we are aiming to achieve 1% outbound transport by rail, thereby reducing the carbon emissions. Sustainability Report

25 MINING HUMAN POTENTIAL At Black Mountain Mining, being part of Vedanta Resources, we strive to be a high performing business where employees are empowered and engaged, leading to higher productivity and long-term success of the organisation Brendan Jales, Head of Human Resources Our People We have endeavoured to establish our people practices as a centre of excellence for our Human Capital Management. Being a mining company, we are constantly aware that most of our workers are subjected to harsh and dangerous conditions and their safety and welfare are high on our list of priorities. We believe strongly that a company's success lies in its workforce, and therefore we aim to provide them with the safest working conditions, with no scope for occupational injuries and illnesses. This helps us to pinpoint areas of improvement in terms of health and safety, which ensures a safe working environment. Training is highly prioritised and regular training and interaction between managers, workers and supervisors, assures that all employees are well trained and aware of all safety procedures which limits accidents from taking place. Human Resource Management Being located in an isolated area in the Northern Cape, our key focus and challenge is to attract the right talent, develop them and motivate them to be loyal employees. Our Human Resource processes focus on managing talent, by attracting the right calibre of people, developing them and retaining their skills. As on March 31st, 214, the workforce at BMM, in all its units and operations consisted of 719 permanent, 81 temporary and 648 contractual employees. Employee Categorisation Corporate M1 - M3: EXCO and Senior Management Male Female Total Male Female Total Male Female Total By Employee Category M4 - M7: Functional Managers, Engineers, Mine Overseers M8 & M9: Supervisors and Management Trainees Below M9: Bargaining Unit, Operators, Artisans, Clerks Fixed Term Employees Black Mountain Mining

26 Employee Categorisation Permanent (incl Corporate) Contract - gender data ratio to Black Mountain, no recording done Corporate Total no. of employees in FTEs Full Time Employees Contract Corporate Black Mountain Mining <3 3-5 >5 Total By Employee Contract By Employee Type By Region Black Mountain Mining By Age (Permanent Employees Only, no data on Contractors) Male Female Total Male Female Total Male Female Total BMM is focused on hiring promising individuals who are the right fit for the relevant jobs. Work performance is evaluated regularly and employees are compensated accordingly. We offer other benefits like accommodation, medical aid and retirement fund as part of our value proposition to prospective employees. We follow a talent management process with the purpose of growing our people, where employees performance and potential are acknowledged. We advertise in the local media and press for job postings and we embellish our value proposition by various development and training programmes for the youth and students studying in universities in the region through Bursaries and Graduate Training Programmes. Recruitment Talent attraction is a challenge due to our location in the deep interiors of the Northern Cape. Our strategic focus is on following a robust recruitment process, which includes an indepth interview process and psychometric assessments. Furthermore, we want to establish our brand in the region through specific marketing-led activities. Local Hiring BMM is located in the Northern Cape Province (Khai-Ma municipal region) of South Africa and most of our employees come from the region. A large percentage of our employees are housed in the town of Aggeneys. We also follow Equity requirements as per South African Legislation that promotes equitable practices for Race, Gender and Religion. In an effort to address employment and skills development needs in the local host communities, Black Mountain Mining has a policy of preferential recruitment from the four host communities collectively known as POPW. These areas are Pofadder, Onseepkans, Pella and Witbank. To address the low skill levels in these communities, the mine has developed initiatives to create opportunities for members of these communities to access the mine, through participation in community based skills development programmes. The main challenge is to increase the numbers drawn locally. Sustainability Report

27 BMM has set up an effective skills development approach to improve skills of mine employees to ensure their development. We strive to be a high performing business and we reward employees for performance excellence. Our rewards programme is aligned to our performance management system, which includes Individual Development Plans for personal growth. Women Employees At BMM, the ratio of basic salary of men to women in all staff categories across all locations is 1:1. We follow fair and equitable employer practices and there is no differentiation between the basic salaries of men and women employees. A basic salary plus additional allowances such as shift allowances, bonuses, medical and retirement benefit payments and overtime is paid to all employees. CHAMPIONING DIVERSITY WOMEN IN MINING CASE STUDY The story of Amelia Cloete Journey of a woman miner Amelia started working in Black Mountain Mining as an operator in 24. By 25, she was encouraged and motivated to climb up and become a full-time safety representative, an important task of ensuring safety vigilance by fellow co-workers. Recognising her talent and desire to grow up the ladder, BMM encouraged her and offered her several training initiatives to help develop her skills. In Amelia's own words; I never was made to feel that being a woman had limitations in working in the mine. In 27, I was made a learner miner and was given a 6 months training to receive my blasting ticket. I then became, perhaps, the first woman miner working in underground operations in the region, when I was given the opportunity to work in the Deep Shaft in April 28. There has never been a dearth of opportunities here, from operating HEMMs to working in mine and then in production in I have got a lot of exposure in a short period of time. So when I was asked if I would like to study for the Magazine Master licence, I didn't have any second thoughts. And here I am today, a magazine master, with the enormous responsibility of securing the mine and the blast explosives. BMM invests a lot in their people in training and development, and at the same time not compromising in sanitation and hygiene facilities. Health and Safety is given paramount importance and the conditions for a safe and secure work environment have vastly improved. As a woman, don't feel any less equal than men in the work. We also get treated with respect and equality by our male colleagues even in the Deeps. The top management at Vedanta empower us to make business decisions that not only motivate us to work passionately, but also embed a sense of pride in our working. I feel proud to be working at BMM - from an operator to a magazine master in a joyful journey of 8 years, makes me optimistic for the future there is no dearth of opportunities here. 26 Black Mountain Mining

28 12 13% 1 98 The number of women employees at BMM over the last three financial years is shown in the chart alongside: *Women employees represented 12.5 %,12.6% and 13% of the total workforce respectively for years 213/14, 212/13 and 211/ % 12.5% Women Employees Diversity and Equal Opportunity BMM is an equal opportunity employer and all employees will be treated with respect and dignity, and judged solely on their performance irrespective of their race, religion, gender, age, disability, HIV/AIDS status or any other characteristic. BMM is committed to Employment Equity legislation and pledges. We do not discriminate employees and potential employees in terms of race and gender or disabilities. Composition of Governance bodies (As on March 31st, 214) Governance Bodies <3 years 3-5 years Age group From Minority Group From Non-Minority group >5 years Male Female Male Female Board of Directors No incidence of discrimination has occurred during the reporting period. We follow equitable employer practices and do not discriminate in terms of our remuneration. We also comply with industry and market related benchmarks, and comfortably meet minimum wage and other statutory requirements. During the reporting period, the breakdown of male and female employees by age is as follows: (Please refer to the reference table for details of the categorisation: Employee Diversity (213-14) Employee Category <3 years 3-5 years >5 years Data shown only for SA nationals Employee from Minority Group Employee from Non-Minority Group Male Female Male Female Male Female Male Female Male Female Corporate M1 - M3: EXCO and Senior Management M4 - M7: Functional Managers, Engineers, Mine Overseers M8 & M9: Supervisors and Management Trainees Below M9: Bargaining Unit, Operators, Artisans, Clerks Fixed Term Employees Total Sustainability Report

29 Employee Categorisation M1 M2 M3 M4 Possible Roles VP GM HOD/EXCO Functional Managers/Engineers/Mine Overseers M5 M6 M7 M8 & M9 Below M9 Supervisors/Management Trainees Bargaining Unit/Operational Staff/Artisans The total number of disabled people in our workforce over the last financial year is as follows: Employee Details New employees (with disabilities) joining the workforce Total no. of employees with disabilities Employee Turnover The total number of new employees over the last three financial years by Gender is given in the following chart (excludes Corporate data): Male Female Total number of new employees over the last three financial years by Age is given in the following chart: <3 3-5 >5 28 Black Mountain Mining

30 Employee Retention Total Turnover of Employees by Category, Age and Gender Categorisation Corporate M1 - M3: EXCO and Senior Management Male Female Total Male Female Total Male Female Total By Employee Category M4 - M7: Functional Managers, Engineers, Mine Overseers M8 & M9: Superviors and Management Trainees Below M9: Bargaining Unit, Operators, Artisans, Clerks Fixed Term Employees By Region Corporate Black Mountain Mining (Excl Corporate) <3 3-5 >5 Total Black Mountain Mining By Age During the year , a total of 131 employees left the organisation, by resignation, termination or retirement Year Total Employees Total Attrition Male Female < 3 yrs 3 5 yrs >5 yrs Employee Representation 75% of our employees (546 out of 719) are in the bargaining unit and are covered by collective bargaining agreements. The Company does not prevent any employee from exercising the right to freedom of association. Formal agreements with trade unions also cover health and safety. The Management and the Union negotiate wages and other conditions of employment on an annual basis. Work site communication meetings and Community meetings are held to communicate matters of interest on a regular basis. There have been no incidents of strikes and lockouts exceeding a week during the reporting period. Training Training at BMM is undertaken to upgrade the skills of our employees that will allow them to operate effectively, as well as empower them with knowledge. Regular training sessions are conducted at BMM both annually and also when the requirement arises as per the various gaps identified by the performance management process. A training calendar is put together annually, and employees get an opportunity to plan and undergo necessary training. Enhancing the skillsets and knowledge of our employees is important to ensure that the performance of our business keeps pace with our growth, as well as empowering individuals. Sustainability Report

31 Average hours of training per year per employee, by gender, and by employee category Company Number of employees December 31st, 213 Total Number of Hours of Training Total Training Mandays Avg Hours of Training FTE -M FTE-F CL FTE -M & F CL FTE -M & F CL FTE -M & F CL BMM , *Note: The above training records are for a period of 5 months only (August to December 213) Over the course of the reporting period, 61,916 hours of training were imparted to employees at BMM. Training and Development Programmes Various trainings provided to our employees to enhance their skills are as follows: Frontline Leadership Programme (FLP): This programme commenced in 29 with the aim of empowering our frontline leaders with the requirements of their role as leaders in Vedanta. All our employees are trained in this programme. Graduate Development Programme: An in-house two-year programme to provide our employees with the required skills to help them grow in leadership roles. Learnerships/Apprenticeships: The mainstream of learnerships in Engineering is Fitting, Plater/Welder, Electrical, Instrumentation, Diesel Mechanic and Auto Electrical. We currently offer ten Engineering learnerships. Rock Breaking Certificates in Mining: Select employees are trained on site in Rock Breaking and are accredited by the Mining Qualifications Authority (MQA). Other Technical Trainings: External trainers and service providers are called in to train our workforce in various areas through ACT UP (Accelerated Competency Tracking & Upgradation Programme). ACT UP helps us identify potentially talented individuals who can then be trained to fill leadership positions. Our Manage my career initiative gives individuals the platform to look at their careers and be responsible for them as individuals and helps empower them to attain their professional goals. Bursaries Bursaries are offered to learners and employees who wish to study at recognised universities or technical colleges. Bursaries are awarded in the specific disciplines where there is a need or shortage of qualified persons within Black Mountain Mining and also South Africa. Black Mountain Mining's needs for certain primary skills drive its bursary programme in partnership with the local municipality, to ensure skills that are generated in the programme are useable in the community and the mine. This approach ensures sustainability for the local economy. It is therefore a win-win situation for both BMM and also learners and employees who want to upgrade their skills. As part of our 214 strategy regarding increasing safety awareness, we rolled out TARP (Trigger Action Response Plan) and ZIP (Zero Incident Programme) training programmes. Both of these training programmes focus primarily on safety management. ZIP is attended by employees from supervisory levels to executive management, whilst TARP is rolled out specifically to underground staff. Each of these courses was attended by around 2 people. 3 Black Mountain Mining

32 GROOMING LEADERS FROM LOCAL OPERATIONS - THE STORY OF NATHAN WILLIAMS Nathan Williams joined BMM when it was a part of the Anglo group. Here s what he has to say about the culture transformation and his career enrichment. Creating opportunity from 'end of life' projects BMM's organisational transition from Anglo to Vedanta ownership can only be described as transformational! Whereas Anglo saw asset life to only 216 at BMM, Vedanta has heavily invested in exploration to extend BMM life until 22 and Vedanta has successfully concluded Gamsberg feasibility study to add 25 years life to the asset. Swartberg Mine feasibility study is also under way. With this ore reserve development, a vision of 'long life, low cost' was driven at BMM and unit cost in cents per pound of metal was reduced by 4% within the first 3 years of takeover, while metal production was increased by 15% despite declining metal ore grades. The Vedanta leadership approach to the business was much more hands-on and focused on growth and sustainability of the organisation. This made the business more entrepreneurial and less bureaucratic. Global opportunities 3 companies across 2 different continents GM at BMM meant being in charge of the business operations. I was also accountable for the overall performance and was director on the Company Board. Extensive stakeholder engagement to ensure permits as well as social license to operate for Gamsberg with SA provincial and national ministries were a part of my key responsibilities. Initiating mine tailings development to saleable iron ore product, which will eventually reduce unit operating costs for the sustainable future as by product credits was one of my achievement highlights. All in all, I was very happy with my role and responsibilities. However, after 12 years at BMM, global exposure to the mining and metals business was beckoning. I was selected to join Hindustan Zinc's Global Marketing Office in Mumbai India, as part of Vedanta's Global Leadership Programme. The first ten months were dedicated to understanding the entire metal value chain, customers' perspectives and its macroeconomic impacts on commodity business. I was then made responsible for domestic marketing of 6, tons zinc,12, tons lead and 5 tons silver metal. Through this role, I contributed to an increase in sales EBITDA of $4mn and helped retain a market share of 88% for the zinc business. I have now moved to Sterlite Copper business in Thoothukudi Tamil Nadu, India and am currently deployed in the commercial and acid business. The learning curve has been fantastic for me. Me and my family have become global citizens and are experiencing the change from the 3 people small town of Aggeneys in SA to the 19 million people mega-city of Mumbai, India. I am now a confident professional who looks forward to ploughing back my learnings and richer life experience into Vedanta's growth path for my dear land of Africa. Conflict management through strategic leadership Soon after our takeover of BMM, we the Executive Leadership Team adopted the Values Driven Leadership (VDL) programme with a consultant who enabled us to change the culture of the organisation. The VDL initiative sought to bring about a new culture of operational excellence, collective ownership and growth. We wanted to align the personal values of our employees with the values of the organisation. We wanted people to discover their potential and realise that they too, could become world-class and deliver best in class performance even from a lesser known place such as Aggeneys! We also invested in leadership training for our supervisors and first line managers in the areas of supervision, empowerment of teams, safety and personal leadership, and emotional intelligence. Through these initiatives, our relationship with the unions underwent a paradigm shift and we were able to engage with them at a more strategic level. In this way, we maintained industrial harmony even amidst the Marikana saga in other parts of the country. This focus on human resource development led by strategic vision resulted in a significant turnaround in the business. Sustainability Report

33 Performance Appraisals Black Mountain Mining plans, tracks and reviews employee performance on an annual basis. At the start of the business year, managers and employees agree on their Key Performance Indicators. A performance review between a manager and an employee is encouraged at least once a quarter. At the end of the business year, a performance appraisal is conducted. Individual development plans form a part of the Performance Management system, to ensure any gaps are addressed. All job grades from C4 to E band levels within the business have performance contracts in place. Performance Feedback Executives Male Female Total Total Number of Employees Total Number of Employees receiving regular performance appraisals Percentage 19.24% 24.44% 19.89% Employee Benefits Apart from regular benefits, BMM has two retirement schemes to support the future of its retiring employees. These retirement schemes are administered through the Black Mountain Mining (PTY) Limited South African Pension & Provident Funds. Both funds are administered by Alexander Forbes, a registered financial service provider. Membership to either fund is compulsory to all permanent employees under the age of 6 years, depending on their position category. We provide healthcare to full time employees only. BMM has a comprehensive medical benefits programme, including hospitalisation. Furthermore we also provide employees with Accidental Death Benefits and Funeral cover. Maternity leave is granted as per law and is applicable to full time employees. Female employees who are expecting and who work in an area where they are likely to be exposed to lead will be removed from such an area and all efforts are made to reassign her to another area for the duration of the pregnancy. Upon return to work, the same provision will apply until such time that the mother stops breastfeeding or after six months, whichever comes first. BMM does not offer paternity leave, but all employees have a 3 day per year Family Responsibility Leave entitlement. Of the 8 women who availed of maternity leave, 7 resumed work after the leave. Deserving and promising employees receive study grants, and are put through Leadership and Management Development Programmes. The Employee Assistance Programme, administered by Careways, offers Financial Planning, Counselling and Wellbeing services to employees. Furthermore, proper financial planning is administered to employees who are close to retirement. Employees who are medically unfit to continue with employment (Medical Incapacity) will receive a lump sum payout of 6 months basic salary on termination of service. Contribution to Benefit Plan (in USD) Contributions to Provident and Other Funds ,973,58 4,546,629 5,35, Black Mountain Mining

34 Future Forum With the life of a mine being finite, we have made provisions to ensure that our employees are insured to handle life after mine closure. Future Forum is to address the impact of the loss of jobs and other issues associated with mine closure, well in advance of them occurring, should no additional resource be identified that may increase the current life of mine. The key functions of the Future Forum are: Generate awareness amongst employees and all other interested and affected parties of the Social Labour and Mine Closure Plans Act as a communication mechanism on mine related issues Identify solutions to problems and challenges that may impact on operations Discuss issues related to retrenchment/downscaling and turn-around strategies Develop and implement suitable prevention or re-deployment strategies in the management of retrenchments and co-ordinate the ratification process Mobilise the Department of Labour's Social Plan Services (Technical Assistance, Job Advice Centre, Retrenchment Response Team, etc.) Health and Safety We are committed to providing an accident-free and safe working environment to our employees, contractors and the communities in which we operate. This is an integral part of our business philosophy and is laid down in our health and safety policies, standards and working procedures. We have a well-established and comprehensive Safety, Health, Environment and Quality Policy that underlines our commitment to create a healthy, hygienic and injury-free workplace. Safety is a collectively achieved state of well-being and we encourage participation of every individual employee in contributing to development, implementation and monitoring of safe and healthy practices at the workplace. Safety is a priority at BMM and safety training is a primary and integral part of our operations. Our entire workforce is represented in formal joint management-worker health and safety committees that help monitor safety at the work place. Emphasis on safe production processes is laid down in our formal agreements with employee unions. These formal agreements also include provisions for proactive and remedial care, including benefits such as medical and accident cover. Commitment towards Zero Accidents Despite having excellent safety standards ensuring the safety of our employees, we suffered one fatality this year. In June 213, we lost an employee in an underground mining incident, which involved falling rocks in the process of charging the work face explosives. Sustainability Report

35 In the event of this unfortunate incident, we have strengthened our safety procedures to ensure 1% safety of our employees. Post this, we have upgraded the safety system to the enhanced Trigger Action Response Management (TARP) system. Through the TARP system, we have initiated the following measures: Readdressed discipline in respect of health and safety Safe drilling procedure to be revised to address face shape (i.r.t. overhangs) Review the Code of Practice for Rockfall in Massive Mining specifically referring to stress fractures and wedge failures Enhance issued based risk assessment when mining faces have not been mined for 6 months or more Specific Rock Engineering focus groups to continue to create awareness of stress planes and possible intersections of these planes with other contacts in the working face Review mining layout assessment procedure for planning, rock engineering and geology Review all relevant standards and procedures Changing Behaviour towards Safety An unsafe act by an individual is often a behavioural issue attitudes, cultural influences, etc. come in the way of an effective safety management system. BMM initiated a Zero Incident Process,a behaviour based safety management system, facilitated by an Australian company called SENTIS. Zero Incident Process (ZIP) is a psychologically designed safety process built to empower the employee to be safe in all aspects of life. ZIP does this by empowering the employees to analyse and develop an insight into the way one's brain works, the way one thinks to understand one's attitudes, as well as values. The key benefits of the programme are: Change in the attitude among employees Improvement in teamwork and communication Production targets being met regularly ZIP project has largely been a success story in empowering employees to take charge of their own safety and also providing life skills that can be taken home and used to positively influence peers Influencing individuals not only to look after own safety but also their colleagues' Safety being used as a currency to buy important personal values, i.e. family upkeep During the reporting year, xx % of our employees have attended ZIP training. We aim to cover xx in Training of different sections is reported in the following table: Module 1 Module 1&2 Module people 265 people (completed the course) 265 people Embedding Initiatives based on ZIP Based on the ZIP strategy, we initiated several safety awareness initiatives with the purpose of having zero incidents in the operations. Hand and Finger Campaign: We identified 5 things that are important to an individual including family members and launched a campaign using the analogy of the 5 fingers in a hand. If one finger gets hurt, it affects the entire hand. This analogy worked effectively as it directly co-relates with an employee and the 5 most important things in life. 34 Black Mountain Mining

36 Playing Safe: We took the message of Safety First to the community of Aggeneys, albeit in a 'fun' and entertaining way. Ganarama Productions together with our Safety Representatives team staged a play to convey the message in a way that was both entertaining and effective. Unsafe working situations were demonstrated and re-enacted, with the comedians capturing the message in a fun, family-friendly way by dancing, tripping, singing and rapping various safety slogans. Children participated in a quiz on safety and were rewarded with gifts. On a more serious note, with regard to the same subject, the police alerted the audience on the importance of road safety. The management signed the Safety Pledge before the day was out. An hour-long programme was thus enjoyed with peals of laughter in a safe way! The absenteeism rates were 4.28%, calculated based on sick leaves totalling 8752 days. In , BMM's overall Lost Time Injury Frequency Rate (LTIFR) reduced from 2.5 in to 2.33 per 1,, man hours worked. Total No. of missed (absentee) days over the period Total No. of workforce days worked for same period Absentee Rate = Total # of missed (absentee) days over the period Total No. of workforce days worked for same period Total Absenteeism 24,239 24, % Sick Leave, IOD, Unpaid Sick, AWOP , % Injuries related to the women workforce during the reporting period, incident rate, frequency of incidents and severity are listed in the table below: Type of Injuries and other details Overall Male By Gender Female Total No. of Injury Incidents This can include: * Injuries inflicted at the work place * Injuries inflicted during travel, commuting, etc. * Occupational Disease Incidents like ergonomic injuries, both major and minor like RSI, Stress, etc No. of lost days due to injuries * Total No. of Person Hours Worked Total No. of Employees TRIFR = (MTC + LTI + FAT) No. of incidents X 1,, Total No. of Hours worked 23 3, LTIFR = (LTI) No. of incidents X 1,, Total Person Hours Worked 2.33 Severity Rate (LTI) = Total No. of Lost Days Total No. of Incidents Sustainability Report

37 Occupational Health For us, Occupational Health means the implementation of sustainable systems to reduce and eliminate health related hazards and risks. The main health hazards remain noise and dust exposure with health effects including NIHL, silicosis and lead related effects. With respect to work place exposures, we have been taking precautionary measures to reduce exposure to lead and silica dust, such as: Spraying system in the Deeps decline Removal and dilution with ventilation Dust extraction system at 44 and 39 level tip areas Dust extraction system at 45 level crusher area Dust suppression system at the crusher area in the plant 45 minute re-entry period after blasting underground No smoking policy for underground; smoking only permitted in designated areas on surface Laundering of Personal Protective Equipment Shower after each shift Blood Lead Monitoring as part of our Medical Surveillance Programme Action and withdrawal limit system implemented, with a coaching and training system for exposures in access of the limits When pregnant, removal from lead risk areas as part of Job Placement matrix Personal Dust Monitoring Training, communication and awareness through induction, toolbox talks and monthly Ventilation & Occupational Hygiene Talk Topics On-going and future health objectives include further reduction of exposures, focusing on work-related physical risks and to promoting and supporting healthy behaviours of employees at work and at home. Lead exposure is regularly monitored in both male and female employees. There have been no recorded cases of Silicosis in BMM. 36 Black Mountain Mining

38 THE ENVIRONMENT STORY BMM is primarily an underground mine with a Cut-and-Fill mining method. Our Deeps mine has a vertical shaft of 1795m with an additional decline access. This decline is the main haulage road for transporting the ore mined between production levels and for accessing the underground workings with vehicles. Mining and the environment have a symbiotic relationship and BMM is committed to achieving a harmonious balance between profitability and environmental management. Our operations are certified for ISO 141 and OHSAS 181. Sustainability is core to our business philosophy as ingrained from our holding company, Vedanta Resources. We acknowledge that mining per se is environmentally damaging activity, therefore minimisation and mitigation of environmental impacts is an integral element of our decision making. Energy and water cost play an important part of our cost of production, in addition to our moral responsibility of conserving natural resources for the future. Energy and water targets are always part of business plan exercises and we aim to reduce our consumption on a continual basis. The management at BMM regular reviews our performance on resources consumption, and provides necessary support where leapfrogging of performance is possible in lieu of technological advancement. We also attempt to internalise the cost of environment into our overall cost of production to minimise the impacts. To this effect, it we have started calculating the environmental cost of environmental incidents to internalise the loss/cost. The focus of the environment management team is to put in place an effective system that ensures the regeneration of the mined resources, by implementing the best practices for mines closure and environmental rehabilitation. We have 5 focus areas for environmental management Energy, Water, Biodiversity, Air and Waste. Energy Waste Water Focus Air Biodiversity BMM s Primary Conservation Objective is as follows: The protection and management of the landscape, biodiversity and resources of BMM for the longterm conservation of these landscapes, biodiversity and resources. Biodiversity management is integrated at Black Mountain Mine by means of external commitments, third party baseline studies and management plans, internal ISO141 Environmental Management System (EMS) and the BAP. Sustainability Report

39 BMM has integrated biodiversity management as part of the ISO141 Environmental Management System (EMS). It further includes biodiversity in life of mine planning, resource allocation, operational training and closure planning. During the reporting period, we did not receive any complaints regarding environmental impacts of our activities. Energy As we continue to expand, our consumption of energy increases as well. We strive to balance this desire for growth with the need for energy conservation. As part of our focus on sustainable mining, we endeavour to reduce inefficiencies where possible. We understand that energy efficiency can help us preserve the environment and limit climate change, while also serving as a significant source of cost savings. Our focus is on reducing our overall energy consumption through a range of initiatives. We have established and implemented clear objectives under environment management systems for energy conservation. Energy Consumption (GJ) Energy Consumption Direct Energy(GJ) Direct Sp. Energy (GJ/T) Indirect Energy (GJ) Indirect Sp. Energy (GJ/T) , , , , , , Direct Energy Indirect Energy Energy Saving Initiatives BMM has actively undertaken initiatives to save energy. The following table provides details of a few of our initiatives and savings achieved in terms of cost and energy. Energy Savings Initiatives Savings Achieved (Savings/Year) Area/Location Saving Initiative Estimated Electricity Savings (MWh) Cost Saving (USD 's) High Low High Low Village Electrical Pre Paid Metering , Village Load Management (Geysers) Plant, Deeps Power Sub Metering Project Deeps Reduce Winder speed to 14m/s Plant, Deeps Crushers standing during peak hours No hoisting during peak hours Broken Hill, Plant Compressed air optimisation Broken Hill, Plant, Village and Deeps Replace lights with low energy units CFL Black Mountain Mining

40 As a responsible mining company, we treat the water used to treat the ore before being released. We also constantly strive to maximise water recycling and focus on sustainable usage of water. We try to achieve this by constant maintenance, surveys to minimise large water usage and innovating processes for reduced usage of fresh water. Water consumed by the mine is largely drawn from the Orange River, which is a large river with seasonal fluctuations in water volumes and is prone to floods during the rainy season in upper catchments. BMM buys water from Pella water - board. During the reporting period, our mining operations had consumed 1,584,394 cubic metres of water. The amount of processed water recycled at our facilities is 359,148 cubic metres (14% of total water used). We recycle water utilised for sanitation separately. Underground dams and settling ponds were built to optimise water recycling. Water Mining is a water-intensive activity and we are cognisant of the impacts of our activities on water. To combat and mitigate the impacts of our mining activities on water, BMM has developed a Water Management Policy and procedure in line with the Vedanta Sustainability Governance system and the same is under implementation. Details of water consumption at our mine and township are listed in the table below: Operations Industrial Domestic (industrial area) Others- Contractors Total Water Consumption in Operations Project Construction (BIG Projects) Domestic (Township) Grand Total (Water Consumption) Consumption of Water (cubic metres) 1,31,459 2,283,26 5,469 1,584, ,443,778 3,3,3 Effluent Discharge At BMM, we have a zero-discharge policy and there is no discharge outside our operational boundaries. By employing these practices, we maintain a balance between what is needed for our business and what is good for the environment. The run-off water / effluents are monitored regularly and are well within the prescribed limits. They are discharged as per statutory and regulatory requirements. BMM monitors wastewater generated and recyled from our processes and our sanitary wastewater independently. Total sanitary wastewater generated was 183,158 cubic metres out of which 23,8 cubic metres of wastewater was recycled. Type Details Cubic Metres/year Process Wastewater Sanitary Wastewater Total wastewater generated Total wastewater recycled Total wastewater generated Total treated sanitation water recycled 2,49, , ,158 23,8 Air Emissions and Ambient Air Quality At BMM, all necessary steps are undertaken to maintain the air quality and to monitor the air that is released from our mining activity. Mines, unlike manufacturing units, are not a significant source of SOx and NOx, and these levels are well within the limits. Air pollution from mining usually is in the form of dust. We try hard to minimise this through various dust suppression mechanisms such as regularly wetting the roads within and surrounding the mines, washing the wheel base of trucks carrying ore and covering the ore with tarpaulin during transport, using truck mounted sweeping machines to clear dust from the roads and covering our dumps. We also use fuel efficient machinery and schedule regular maintenance for them. The average dust fall rate for BMM for was mg/m²/day. The permissible dust fall rate is 6 <D> 12 mg/m²/day. Average dust fall rate for the Gamsberg area is mg/m²/day. Sustainability Report

41 Ozone Depleting Substance As part of our process to manage ozone-depleting substances, we adopted a policy on ODS which entails purchasing equipment free from CFCs, halons and MCFs. Our monitoring of ODS has shown that there is no significant ODS release into the atmosphere from our activities. ODS containing equipment is restricted to the use of air conditioners in offices. Carbon Emissions We are aware that climate change can have a severe impact on our operations. We regularly keep track of our carbon emissions and are open to undertake initiatives to reduce our carbon footprint. CO2 Emission Total CO2 (tco2) 147,64 142, ,597 Sp.CO Biodiversity The loss of Biodiverstiy is a top concern for all mining operations. BMM, situated within the locality of Bushmanland, is sensitive towards the vulnerability and irreplaceability of the land and its biodiversity. Ensuring biodiversity protection of this area is one of the key environmental objectives of BMM. The implications of not protecting these areas have both local and global consequences, and being an integral part of the community also makes for a strong business case for BMM to do its utmost to protect the land and species biodiversity of the areas in which it operates. As per Vedanta's IBAT screening process, the following sites are categorised into low, medium and high categories: Name of operating sites Category Size of operational site (Ha) Details of the Site BMM Aggeneys Medium 742ha Non-operational and undisturbed areas managed as BMM Swartberg Medium 25 ha biodiversity protection area since operation is situated near a BMM Gamsberg High 1221 ha biodiversity hotspot BMM's Biodiversity Action Plan has significantly evolved over the years. The main aim of this plan is to ensure legal compliance in terms of BMM environmental authorisations and South African legislation, to apply best practices in Biodiversity management, to make sure that no opportunities for conservation and enhancement of biodiversity are overlooked throughout the project lifecycle of BMM and also to continuously monitor progress on the efforts of biodiversity conservation and record the same in order to make required improvements to our biodiversity action plan. The third version of our plan was out in December 213, with an update of our plans and implementation of the same. The responsibility of Biodiversity Management at BMM is shared by all functions. Functions which are accountable and responsible for BMM's biodiversity performance are as follows: Advisory Internal Vedanta Sustainability Team & External - IUCN Accountable BMM General Manager Responsible Safety and Sustainability Manager Gamsberg Project Head Executer Monitoring Officer Environmental Manager Biodiversity Manager ESO Gamsberg Impact Management & Rehabilitation Gamsberg Mining Manager Plant Manager Contract Manager 4 Black Mountain Mining

42 BMM's biodiversity plan has outlined key performance areas that have been identified, with objectives specified for management as well. Among the key performance indicators are Biodiversity Management Structures, Mine Plan Delineation, Conservation Area Management, Education & Training, Restoration & Rehabilitation and Monitoring & Reporting. We have identified the following as high, medium and low risk areas and each have their own management objectives to work on. High Risk - Improve on-ground integrity from current baseline Medium Risk - Maintain on-ground integrity from current baseline Low Risk - Rehabilitation and recreation BMM has been actively involved in the Namaqua Biodiversity Advisory Forum (NAMBAF) since 212 and is seen as a key stakeholder at this forum. BMM occupies 39,43 hectares of land in the Bushmanland Inselberg area. We have identfied 429 species of flora and fauna in the area, 67 of which are unique to the area and 87 are classified as globally threatened (as of 25). The area revealed 397 fauna species, out of which 15 species were found to be species of conservation concern meeting criteria for threat and/or rarity. A few of these are as follows: Conophytumangelicae subsp. angelicae (dwarf form) Aloe microstigma Azimatetracantha Tylecodon sulphurous Mesembryanthemuminachabense BMM has also earmarked 11 habitats in which these species are found in as being of conservation concern. Extensive research revealed many species of fauna that inhabit the Bushmanland area. A few of the important species identified are as follows: 13 species of ants 14 species of frogs and 53 species of reptiles A total of 45 bird species have been observed, out of which Lanner falcon and Sclater's Lark are identified as near threatened and Red Lark as Vulnerable as per IUCN's Red List. 4 near threatened mammals recorded are - Cape Horseshoe Bat (Rhinolophuscapensis), Darling's Horseshoe Bat (Rhinolophus darling), Dassie Rat (Petromustypicus) and Littledale's Whistling Rat (Parotomyslittledalei). In addition, the near threatened Brown Hyena and Leopard are also known to occur here. Various initiatives and plans have been put in place to implement the Biodiversity Action Plan, which have been delegated to BMM's management. The management and employees are equally committed to the success of the implementation of the plan. Black Mountain Mining collaborates with IUCN to develop a Sustainable Biodiversity Management System in the Namaqua Region CASE STUDY The Namaqua in South Africa contains sensitive ecosystems with critical value for biodiversity conservation, local livelihoods, eco-tourism and agriculture. Researchers highlight that Namaqualand plant and faunal diversity is particularly vulnerable to anthropogenic impacts and climate change and therefore needs to be at the forefront of the development agenda in the region. Following the World Summit on Sustainable Development in 22, the South African Department of Minerals & Energy (DME) initiated a Strategic Framework for Sustainable Development in the Mining Sector. The framework envisioned that by 21 the South African minerals and petroleum sector would be able to contribute optimally to sustainable development through sustainable and responsible mining. Sustainability Report

43 Black Mountain Mining collaborates with IUCN to develop a Sustainable Biodiversity Management System in the Namaqua Region CASE STUDY Black Mountain Mining a subsidiary of Vedanta Resources Plc, is a responsible company and strongly support Government of South Africa's framework of sustainable development and its objectives. We therefore took a decision in 213 in lieu of proposed expansion projects to partner with an international NGO, i.e. International Union for Conservation of Nature (IUCN), to support, enhance and diversify rural livelihoods within Namaqualand through support to green enterprise development and innovative biodiversity and livelihood options and technologies. Recently the partnership has been finalised and we are currently working on developing plans for the next 5 years. Under the aegis of this partnership, an Independent Review Panel (IRP) with leading experts in the field of environment, biodiversity and environmental law has been set up to provide advice on programmes that will avoid, mitigate or offset biodiversity impacts during operations and at mine closure, to ensure rehabilitation planning and implementation at Gamsberg and to review and provide technical advice on BMM's Biodiversity Management System. A Biodiversity and Livelihoods Coordination Committee (BLCC) has been set up with retired judge A. Gildenhuys as an independent chairperson, to oversee and advise on BMM's corporate social responsibility programmes in Namaqualand. This will be carried out in collaboration with conservation and development Non-Governmental Organisations (NGOs) and Community Based Organisations (CBOs) operating within the region. The Story of Game Camp The Need Black Mountain Mining is located in a Biodiversity hotspot. Two bird species, the Red Lark and the Sclater's Lark are currently threatened species as a consequence of overgrazing due to farming activities. Hence, we made efforts to preserve these threatened species. CASE STUDY Game Camp: The Path We Chose We attempted to protect the habitat in which these bird species once lived. A 9ha area containing the habitat for both the Red Lark and Sclater's Lark was chosen for this purpose. Other species, the Springbuck / Gazelle and Oryx were introduced to the camp to complete the habitat. Fences were built around this area to prevent migration of animals. Food supplements were supplied in the form of salt blocks and game blocks. During the severe drought in , additional feed was also provided. Three watering points were created, two of which were fed by potable water from the town and the third from a borehole equipped with a solar pump and dam. Population management of the game was applied periodically and it was easy to maintain this since it was an enclosed area with no large predators. USD 7, was spent on feed and maintenance of the camp infrastructure in the year 213. Our Achievement The BMM Game Camp is listed on the IUCN red list of threatened species as part of the Conservation Actions Underway. Important populations are found in private reserves at Black Mountain Mine Nature Reserve (7-9 pairs, including the adjacent Haramoep farm). This has the largest number of breeding pairs in a conservation area. Other smaller wild animals such as Bat-eared foxes, Aardvark, Smith's red rock rabbit, Four-striped mouse, Brants's whistling rat, Weateren rock elefant shrew (sengi) are also allowed free reign in the Game Camp. The game camp has thus become a success story to bring these threatened species back to their homes. 42 Black Mountain Mining

44 The Story of Game Camp Species 214 Removed Estimate after CASE STUDY Springbuck Blesbuck Oryx Red Hartebeest Waste As part of our regular operations, we produce mainly non-hazardous wastes. Black Mountain Mining has a sort-at-source approach to waste management. Waste is sorted into domestic/general waste, hazardous waste, salvage waste (most metals) and wood. Wastes such as overburden, tailings, slag and other waste from plants are collected, stored and disposed of appropriately. Out of 847,647 tons of tailings that resulted due to our mining operations, 283,73 tons (33%) were recycled. None of the hazardous waste falling under the terms of the Basel Convention Annex I, II, III and VIII is transported, imported, exported or treated at our operations. BMM outsources its waste management and has two registered disposal units on its property. Waste Recycling at Black Mountain Mining CASE STUDY The Past Way back in 23, the concept of recycling of waste did not exist in BMM. Huge amounts of waste generated from our operations would be dumped in the Waste Transit Facility (Salvage Yard) before they were sent to landfill sites. These waste dumps were an eyesore in the mining area. Gradually, this affected the surrounding environment. Our Effort to Re-organise our Past We initiated the practice of separating recyclables from the compostable. Then we started recycling scrap metal, steel, rubber and e-waste, which were sold off occasionally at auctions that were held by the mine. In 29, we started recycling of waste paper also. Since 212, the recycling activity has been an integral system in the BMM premises. We now recycle glass, e-waste, tins and cans, plastic (PET), PVC pipe and HDPE pipes. The Present We have two licensed waste disposal facilities: for general waste and garden waste. We also have a Waste Transit Facility (Salvage Yard), where all the hazardous waste is sorted and stored before it is sent to Vissershok, a registered hazardous landfill site. The BMM initiative to improve waste recycling in its operations has expanded and it now includes the Aggeneys community. We are continuously on the lookout for ways to improve our waste reduction and increase recycling rates. Our next pilot project revolves around commissioning of a composting plant to recycle organic waste generated by gardening activities at our mining area and the community of Aggeneys. In our endeavours to improve recycling and reduce our waste streams, we have embarked on a project where the waste volumes from our processing plant will be reduced significantly. This will entail the removal of magnetite from the current tailings and also the reclamation of the tailings dam in future. When this project is successful the current volume of material disposed to the tailings dam will be reduced by at least 4%. Units Paper Glass Plastic Metal Tons Sustainability Report

45 Wastes generated during the reporting period are mentioned below: Waste generated (tons) Waste disposed (tons) Disposal method Waste generated (tons) Waste disposed (tons) Disposal method Waste generated (tons) Waste disposed (tons) Disposal method Copper cable Recovered Recovered Recovered Fire extinguisher bottles Recovered Recovered Recovered Glass Recovered Recovered Recovered Hazardous waste 21.8 Landfill Landfill Landfill HDPE pipes Recovered Recovered Recovered Oily steel Scrap Steel Scrap Steel Scrap Steel Paper bales 4 Recovered 12.8 Recovered Recovered PVC pipe Recovered Recovered Recovered Rubber Recovered Recovered Recovered Scrap metal Recovered Recovered Recovered Scrap steel Recovered Recovered Recovered Tins and cans Recovered Recovered Recovered Hazardous Waste: Hazardous waste is transported to Vissershok Waste Management facility. Used/old oil is stored in containers at the Main Workshop and Oilkol. Oilkol is ISO 141 certified, and ensures safe collection, handling, transportation, storage and delivery of used lube oil, waste oil, used oil filters and SANS1228 classified dangerous goods throughout Southern Africa to Oilkol operated storage facilities. Oilkol are approved re-processors and users. The collected used oil and waste oil is disposed of at approved ISO141 certified refiners. Composting BMM is running out of air space at our current garden landfill site. Instead of applying for a new landfill site, we are planning to convert all garden waste into compost. By doing this, we will be saving millions, since the cost for a new landfill site is ±65 million. The compost project will be managed as a community project, once the feasibility of the project is established in an agreement between BMM and the community based company, they will manage the compost site full time. The market for compost is especially good with large scale irrigation farming alongside the Lower Orange River Valley, which is in close proximity to the town of Aggeneys. Currently, the project is in a feasibility phase and it is envisaged that commercial operation of the project will commence in 215. The intent is that the next stage of the project would develop into a large scale composting facility. We also provided compost training to the community to encourage composting at home. Besides BMM's interest in reaching financial and environmental sustainability, minimising waste also forms part of the South African national vision of a plan for zero waste by landfill by 222. Ozone Depleting Substances We are in the process of phasing out R22 gas at Khai-Nam Engineering & Supply Pty Ltd completely. Retrofit the current air conditioners from R22 to R41A. R22 gas would be replaced with R41A gas which has an ODS potential of zero. The replacement of the gases would be done only when required. Further, all purchases of new air-conditioners and parts/accessories have to be adaptable to the R41A gas. Also, no new installations will be done with the old R22 units, unless it is an old unit that must be shifted. Volumes of R22 gas purchase for the year was 68 kgs. Environmental Investments During the reporting period of , BMM has not received fines due to non-compliance with environmental laws and regulations. Environmental Expenditure Monitoring Biodiversity Game Camp Audit Specialist Studies Training & Awareness Total Investments For (in USD) 111, , , , , , , Black Mountain Mining

46 Product Responsibility BMM recognises the fact that we can positively influence our value chain, therefore we want to work towards ensuring that the minerals and metals that we produce are responsibly used by our consumers. Raw Material Consumption Raw Materials Chemicals used in process UOM Crome Balls Senkol 7 2kg Dr Sulphur Prills 1 Ton Bags Sodium Ethyl Xanthate Senfroth 65b Zinc Sulphate Mono Hydrate 75kg Cuphlex Potassium Amyl Xanthate Ammonium Bicarbonate 25kg Item Desc:rod Mill Rods Powdered Unslaked Lime (bulk) Sodium Cyanide Liquid Bulk Portland Type 1 To Sabs Env 197-1:1992 Chryso Multiflow ,61 1, , , ,622 1, , , , ,51 88,27 4,498,62 141, KG KG KG KG KG KG KG KG KG EA MT MT MT L Explosives used 4,183 23,56 46,795 3,577 25,59 17, ,581 83,392 24,795 BOXES CASE EA Adding to the Product Wealth In order to reduce the volume of tailings being stored, BMM has initiated plans to start producing Magnetite concentrate. A pilot plant was commissioned to test the viability of producing marketable Magnetite and between October 213 and March 214, 1, tons of concentrate were produced and sold. This not only provides additional revenue for the company, it also creates jobs with a focus on employment for female employees. CASE STUDY A feasibility study is underway, assessing the profitability of running a full-scale magnetite plant producing approximately 8, tons per year. Currently, transporting the magnetite concentrate from Aggeneys to the customer (domestic or export) remains the biggest challenge. Once the feasibility study is completed, the project will be presented to the Vedanta Board for approval. If approved, the first production from the full-scale plant is likely to be 1-12 months from start of construction. Since magnetite is present in all ore types being treated at BMM, the full-scale magnetite plant will continue to operate for life of mine. Phase Two of the project will consider the treatment of the existing tailings stored at the Tailings Storage Facility since this also contains Magnetite. Sustainability Report

47 COMMUNITY THE PARTNERSHIPS WE MINE Black Mountain Mining recognises its critical role in contributing to the socio economic development of the Khai-Ma Local Municipality, located in the Namaqua Region, Northern Cape where its operations are based. Majority of the income generated in the community is derived from BMM and we are aware of the total dependence of the people in the community on BMM for their livelihood. We believe in building mutually beneficial relationships with the communities in which we operate. We follow an integrated CSR approach with our CSR initiatives also linked to the entire value chain, and focus on relevant areas like preferential procurement, enterprise development and capacity building initiatives, including the bursary scheme, internships, learnership opportunities and artisan skills training. Our CSR scope also encompasses internal and external components to ensure that the Aggeneys community is covered too without disadvantaging local host communities. We intend to have the town of Aggeneys open to local communities to foster co-operation and collaborative projects, as well as prospective employees that are covered through the bursary scheme and other forms of training. The active participation of communities is critical to ensure that interventions are targeted and remain responsive to local concerns and needs. Our integrated CSR approach also includes a Social and Labour Plan (SLP) as approved by the Northern Cape Department of Minerals and Resources (DMR). The following were the main Local Economic Development Projects for the term and the total spend during the reporting year. Brick Making Plant and Infrastructure Development - 251, USD Community Study and Social Trust USD Enterprise Development - Small Business Development Centre - 3,79.9 USD Children's Activity Parks - 14, USD The Black Mountain Mining LED projects funded by BMM and as agreed with the Khai-Ma Local Municipality for the term are as below: Black Mountain Mining LED projects for Category Project Description Financial Provisions Year 214 Year 215 Year 216 Year 217 Year 218 TOTAL In USD Health Care Improving health care quality and extent In partnership with the provincial Health Department the Operation will see a number of new projects implemented. The immediate project that will be implemented is the eye clinic aimed at reducing the cataract operations backlog. 247, , , , , , Black Mountain Mining

48 Black Mountain Mining LED projects for Category Project Description Financial Provisions Year 214 Year 215 Year 216 Year 217 Year 218 TOTAL In USD Education Continuation of current community assistance with regard to skills development. 79, , , , , , Poverty Alleviation Partnering with NGOs/technical specialists to alleviate poverty in line with economic diversification in the region Agriculture is the primary sectoral employer of the affected region and therefore this alternate economy needs to be supported and developed inclusive of the necessary support in ensuring that Agriculture can weather the challenges of climate and biodiversity challenges: Assistance to communities to establish subsistence farms (stock and vegetation); Assistance to current subsistence farmers who are successful, to expand to commercial farming; Projects linked to assist farmers to farm responsibly with biodiversity and climate change in mind; Establishment of Agro-processing as an alternate economy 494, This will be in association with KMLM, relevant Government Departments and NGOs/technical specialists 39, , , , , SMME Development/ Job Creation/Access to start-up funding 59, , , , ,32.78 Infrastructure, Institutional & Skills Development Reconstruction & revamping of Libraries 98, , Equipment for Day Care Centres 19, , , , , , Community Upliftment Arts & Craft, Sports and Youth Development 49, , , , , ,169.9 Total 395, , , , , ,581, Need-based Interventions In addition to the LED projects based on SLP, BMM also undertakes various need-based interventions, in the areas of health, education, agriculture, livelihood and infrastructure, in a highly structured and process-driven approach. These programmes are evolved based on the community's needs identified through consultative and intense stakeholder engagement and as revealed in baseline studies. In the implementation of these initiatives, BMM has not received any complaints relating to land use or customary rights of local communities. Education BMM has invested in the the overall development of students in the surrounding communty. We have implemented in education related projects and provided necessary infrastructure to help students in their educational endeavours. Our initiatives have positively influenced the teaching community and students and helped them to develop key skills required in current trending careers. Black Mountain Mining has embarked on various initiatives in support of education in the Khai-Ma municipal area. Sustainability Report

49 Impacting education through technology - ipads at Schools CASE STUDY ischoolafrica initiative works in schools across South Africa; from pre-primary to Grade 12, from township schools to the most rural communities. Through access to the ipad programme and Youth Press team campaign, schools including both teachers and students achieve excellence in digital citizenship, motivation and self-esteem. The ischoolafrica initiative was introduced to the Black Mountain Mining schools in February 213. Educators attended workshops to learn how to use the ipad as a tool in their classroom's daily activities. ischoolafrica facilitators visited teachers in their classrooms and through show-and-tell sessions allowed educators to show off their ipad lessons and learnings. Aggeneys Sekondêr/Secondary received a press team kit and training. They produced videos according to themes that included an introduction to Aggeneys, the role of social media in schools and local heroes. The team was also given the opportunity by the Department of Rural Development and Land Reform to visit the 1913 Land Act exhibition in Cape Town during July 213. The results seen shows the number of educators and learners impacted by the programme: School No. of teachers No. of classes Subjects impacted No. of learners impacted Aggeneys Primary 5 6 Foundation Numeracy Literacy Life Sciences 235 Francois Visser Primêr, Pofadder St Philomina Primêr, Onseepkans 6 6 Foundation 178 Numeracy Literacy Life Sciences 5 5 Foundation Numeracy Literacy Natural Science 132 Pella Primary, Pella 4 7 Foundation Numeracy Literacy Computer Literacy 132 Total Black Mountain Mining

50 Impacting education through technology - ipads at Schools CASE STUDY A 1st person account of the experience of the project Luzelle Simmers - Grade R teacher, Francois Visser Primary 'I am a 24-year-old educator. Due to many socio-economic circumstances Francois Visser is an underperforming school, the community is riddled with alcohol and drug abuse, with many students coming from broken homes and children who suffer from Fetal Alcohol Syndrome. Teaching in these conditions is extremely challenging, but we, as a staff, do our best to provide for their special needs. I love the ipad programme as there is no such thing as a boring lesson anymore; the students are engaged with all of their senses. As a grade R teacher I find that the students have more confidence to create their own work. Even the slow students produce projects to be proud of. I was so happy when my young students were the first class in the school to know the English alphabet thanks to ipad apps used.' Supporting Schools BMM's interest in supporting schools in Aggeneys can be demonstrated by the following initiatives it is has undertaken over the years: Subsiding teacher salaries to improve learner-teacher ratios Provision of free transport to and from schools as well as during extra-mural activities outside Aggeneys Provision of municipal services free of charge Support through ongoing maintenance of school infrastructure and amenities. In the 214/15 financial year BMM has committed funds to further improve education, especially in the areas of skills development through bursaries and the promotion of key subjects like mathematics and science in schools. Early Childhood Development Centre Black Mountain Mining initiated and continues to fund the ECD centre for children in Aggeneys. The centre came about after the amalgamation of the Liewe Heksie and Heidie & Peter pre-schools. Other than preparing the little children for their formal education in the years to come, Aggadapies Edification Centre serves an important function of keeping children safe and cared for while their parents are at work. The centre operates from 6am to 6pm. Aggeneys International Academy In addition, BMM has also established a new Private School under the name of Aggeneys International Academy (AIA). This English-medium school opened its doors in January 214. It promises to provide quality education of international standard. Sustainability Report

51 This school is very important in the sense that it does not only provide education but also helps in the retention of scarce skills in the area. As BMM is a subsidiary of a multi-national company with a wide business footprint, it is important that the mining town like Aggeneys should reflect international character so as to provide a suitable home for all, employees and contractors alike. Thus it is not surprising to see children from various backgrounds, nationalities and ethnic groups learning and growing together in one school. Maturing from its inaugural academic year, there is no doubt that AIA will produce excellent achievers who will grow up to become responsible and productive citizens in their adult life. Healthcare Access to basic healthcare is a primary necessity of every human being. BMM extends its support to address basic health needs of the community by creating healthcare facilities at the doorstep and promoting the overall health status of people across its areas of operation. Healthcare programmes constitute need-driven (requests from stakeholders) and proactive initiatives by the Company towards critical health issues. An important focus is contribution to achievement under the United Nation's Millennium Development Goals (MDGs) of promoting maternal, child health and eradication of diseases. Short-term objective: To meet day-to-day basic health needs of the community Long-term objective: To create a facility that is easily accessible to the community Cataract Surgery Target in Northern Cape CASE STUDY Black Mountain Mining supports cataract surgeries in the Northern Cape. After the successful completion of 47 operations under the pilot programme in December 212, BMM management set a target of 4 surgeries at the start of the 213/214 financial year. This cataract project, which started as a brainchild of the CEO, Kishore Kumar, is propelled by the desire to touch and have a lasting impact on the lives of the aged and destitute, especially in the remote areas like the Namaqua and ZF Mgcawu districts. The objective was is to fund the cataract surgery project in order to address public sector backlogs and in support of the UN's Vision 22 Strategy, an initiative fully supported by the South African government. Ours is a humble but noble intention to contribute toward zero cataract in the Northern Cape. The project has resulted in 44 successfully completed cases in the financial year ending April 214. The eye clinics were conducted in the towns of Aggeneys, Upington, Alexander Bay and Calvinia. Some of the complicated surgeries were referred to Kimberley Hospital. One of the key highlights of the programme was the operation on 13-year old centenarian, Ms. Anna Boer from Safari Street in Groblershoop, near Upington. The project was endorsed by the Northern Cape MEC of Health, MxolisiSokatsha, who attended its launch in September 213. With a total of 451 blind and partially-blind people having their sight restored thus far in the Northern Cape, it proves that private-public partnerships can go a long way in improving the wellbeing of citizens in South Africa. In this programme BMM partnered with the Provincial Department of Health, African Vision and the South African Council for the Blind. The great news is that BMM has undertaken to continue with the cataract project in the 214/215 financial year. Another 4 surgeries are planned to be completed by March Black Mountain Mining

52 Soup- Kitchen Project: BMM upgraded, furnished and equipped a disused building in Pella, in the Northern Cape province of South Africa and turned it into a soup kitchen for the community. Black Mountain Mining is proud to be associated with this project as it came about in response to a legitimate need felt by the community. This facility continues to cater for the elderly and sick members of the community. In this regard the Department of Health is a critical partner and the clinic is providing some support to the centre. In the true spirit of Ubuntu (human-ness) community members continue to demonstrate their empathy by participating as volunteers in the activities of the soup kitchen. Sustainable Livelihood The communities surrounding the mine depend largely on the mine for their livelihoods. BMM has undertaken many initiatives and projects to create jobs. This enables the community members to be self sufficient and can look forward to stable careers after the closure of mines as well. Brick making project for Khai-Ma Community CASE STUDY Black Mountain Mining established and funded a brick-making project in community of Pella. The project is operated by a nonprofit organization with effect from November 212. Currently this emerging business has the capacity to produce 1 bricks per day. The machine can also be re-molded to produce interlocking blocks, small cement bricks and two types of hollow bricks. The brick-making project has secured contracts to supply the bricks for 6 RDP houses in the municipal area. Prospects are also good that the project will secure contracts to supply projects under the Expanded Public Works Programme. In addition, individuals from the community also place orders for bricks from the project from time to time. The community benefits immensely from this project as it has not only created 1 permanent jobs, but the people of the broader Khai-ma municipal area now have access to cheaper bricks of high quality and standard. Other Initiatives As part of the infrastructure upgrade under the our Social and Labour Plan provision, we installed palisade fencing at the municipal offices in Pofadder in the Northern Cape province of South Africa. Fencing was also installed at public parks. In addition to this, fencing was also provided at the Onseepkans primary school and sports ground. Library Upgrades in Aggenys: In 213 Black Mountain Mining provided 1 computers and internet connectivity to the library in Aggeneys. The computers came with proper furniture to make it comfortable to use by the local community and learners from the various schools. As a result of this initiative, residents in Aggeneys are able to conduct research much easier at the library. Learners from the local schools also find it easier to search the internet and complete their assignments at the library. This project also contributes to the culture of reading and life-long learning for self-development. Sustainability Report

53 In the coming years Black Mountain Mining has committed funds through the Social and Labour Plan to further upgrade libraries in the Khai-ma Municipality in order to provide more space, equipment and important software to improve the quality of the service at the libraries. In this regard BMM will work in close partnership with the Department of Sports, Arts and Culture. Recreational Facility upgrades: Black Mountain Mining funded the development and upgrading of various recreational facilities in the broader Khai-ma Municipality. As part of this initiative, activity parks were developed in 4 schools situated in Pella, Pofadder, Onseepkans and Witbank respectively. In addition a communal swimming pool was established in Pofadder while a pavilion was developed at the Witbank sports ground. Restored Community Water Provision: Following the 212 Orange River floods in the region, the water purification plant at Witbank was badly damaged. For some time residents dependent on water ferried via trucks from Pella for their daily needs. Black Mountain Mining intervened by upgrading the water plant. This resulted in approximately 5 people having their potable water being restored. Employees and Families in Community Work: Our employees and their families also chip in to help in community work. We have an active ladies forum in Aggeneys, which participates voluntary in community drives and look after improvements in the town. A three-hour-long workshop was conducted by the Ladies' Forum, during which the women of Aggeneys listed out the different needs and wants for the community. What stood out most in the workshop was the compassion and the need they saw to help the town's children addressing concerns of their freedom, safety and the lack of stimulating activities for them. There are many women with art and craft skills, however, without the proper infrastructure to train or sell their crafts, most of them do not feel confident to create craft items. The culmination of the workshop was steps to be undertaken by the Ladies' forum in organising workshops to help these women get training and support for selling their crafts. Peer Educators The Black Mountain Mining Peer Educators was formed in 24 as, per requirement by the Government of South Africa to fight the HIV/AIDS pandemic. Our key activities revolve around: Employee Volunteering Wellness program National Health Calendar activities HIV/AIDs is a prevalent issue at Khai-Ma region, and as Peer educators, we consider it our duty towards the protection of our people at the workplace and the communities, educating them on the benefits of Safe Sex, abstination, prevention and the effects of HIV/AIDS We also organised a 3-day wellness program as the Health day in September 213. All the staff weretested for Sugar, Cholesterol, and HIV. In association, with the Ministry of Health the Peer Educators conducted avoluntary Counselling and Testing (VCT) Drive. Over 171 people participated in the program. Miners walk for Cancer The peer educators organised a Relay for Life at Aggeneys in support of the nationwide fundraising campaign for CANSA Relay for Life. The residents of Aggeneys and especially the employees of BMM participated in the South Africa project to raise funds for cancer support and to offer support to those in treatment, by a 12-hour all-night walking marathon, a symbol that cancer never sleeps and does not discriminate. BMM raised a whopping USD thousand. 52 Black Mountain Mining

54 GLOSSARY ACT UP AIA AWOP BAP BEE BLCC BMM CBOs CEO CFC CFL CL CO2 COO CSR DMR EBITDA ECD EMS ERP EXCO FLP FoG FTE-F FTE-M GJ GJ/t GM GRI Ha HDPE HIV/AIDS HOD HR ICMM IDP IFC IOD ISO IUCN Km Ktpa LED Accelerated Competency Tracking and Upgradation Aggeneys International Academy Absent Without Pay Biodiversity Action Plan Black Economic Empowerment Programme Biodiversity Livelihoods and Co-ordination Committee Black Mountain Mining Community Based Organisations Chief Executive Officer Chlorofluorocarbon Compact Fluoroscent Lamp Contract Labour Carbon Dioxide Chief Operating Officer Corporate Social Responsibility Department of Minerals and Resources Earnings Before Income Tax, Depreciation and Amortization Early Childhood Development Environment Management Systems Enterprise Resource Planning Executive Committee Frontline Leadership Programme Fall of Ground Full-Time Employees-Females Full-Time Employees-Males Giga Joules Giga Joules per tonne General Manager Global Reporting Initiative Hectare High Density Polyethylene Human Immunodeficiency Syndrome/ Acquired Immunodeficiency Syndrome Head of Department Human Resources International Council on Mining and Metals Individual Development Plans International Finance Corporation Injured on Duty International Organisation of Standardisation International Union for Conservation of Nature kilometer Kilotonnes per annum Local Economic Development Sustainability Report

55 LTI LTIFR m m/s MCF MDGs mg/m2/day MQA MT Mwh NAMBAF NGO NOx ODS OECD OHSAS PET plc PVC RDP SA SD SHEQ SLP SMME's SOX SOx TARP TRIFR UG UN USD VCT VDL VP VP-HR VSAP YoY ZIP Lost Time Injury Lost Time Injury Frequency Rate metre metre per second Methyl Chloroform Millennium Development Goals milligram per metre square per day Mining Qualifications Authority Metric Tonnes Mega Watt Hour Namaqua Biodiversity Advisory Forum Non Governmental Organisation Nitrogen Oxide Ozone depleting substance Organisation for Economic Co-operation and Development Occupational Health and Safety Assessment Series Polyethylene Teraphthalate Private limited company Poly Vinyl Chloride Reconstruction and Development Programme South Africa Sustainability Development Safety, Health and Environment Quality Social and Labour Plan Small, Micro, Medium Enterprises Sarbanes-Oaxley Sulphur Oxide Trigger Action Response Plan Total Recordable Injury Frequency Rate Underground United Nations United States Dollar Voluntary Counselling and Testing Drive Values Driven Leadership Vice President Vice President-Human Resources Vedanta Sustainability Assurance Programme Year on Year Zero Incident Process 54 Black Mountain Mining

56 GRI INDEX G3.1 Content Index Profile Disclosure Application Level: A STANDARD DISCLOSURES PART I: Profile Disclosures 1. Strategy and Analysis Description Reported Page Explanation No. 1.1 Statement from the most senior decision-maker of the organization Description of key impacts, risks, and opportunities. 2. Organizational Profile 2.1 Name of the organization. 2.2 Primary brands, products, and/or services. 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 2.4 Location of organization's headquarters. 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). 2.8 Scale of the reporting organization. 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.1 Awards received in the reporting period. 3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 3.2 Date of most recent previous report (if any). 3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents. 3.5 Process for defining report content. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. 17, , , , , 1 No change 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. 2 Sustainability Report

57 3.1 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods) Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report Table identifying the location of the Standard Disclosures in the report. None None 55 First Report First Report 3.13 Policy and current practice with regard to seeking external assurance for the report. Profile Disclosure 4. Governance, Commitments, and Engagement Description Reported Page Explanation No. 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance). None Processes in place for the highest governance body to ensure conflicts of interest are avoided. 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. 14, Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4.1 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance Explanation of whether and how the precautionary approach or principle is addressed by the organization Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. 1, 12 12, ,41 12, Black Mountain Mining

58 STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) G3 DMA Description Reported Page Explanation No. DMA EC Disclosure on Management Approach EC Aspects Economic performance Market presence Indirect economic impacts DMA EN Disclosure on Management Approach EN Aspects Materials Energy Water Biodiversity Emissions, effluents and waste Products and services Compliance Transport Partial Overall DMA LA Disclosure on Management Approach LA Aspects Employment Labor/management relations Occupational health and safety Training and education Diversity and equal opportunity Equal remuneration for women and men DMA HR Disclosure on Management Approach HR Aspects Investment and procurement practices Non-discrimination Freedom of association and collective bargaining Child labor Prevention of forced and compulsory labor Security practices Partially Indigenous rights Assessment 19, 2 Remediation 19, 2 DMA SO Disclosure on Management Approach SO 19,46-52 Aspects Local communities Corruption 19 Public policy 5, 41 Anti-competitive behaviour 19 Compliance 44 DMA PR Disclosure on Management Approach PR 45 Aspects Customer health and safety 45 Product and service labelling 45 Marketing communications 45 Customer privacy 45 Compliance 45 STANDARD DISCLOSURES PART III: Performance Indicators Economic Performance Description Reported Page Explanation Indicator No. EC1 Economic performance Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments , , 36 37, , ,3 26, , , 2 19, , 2 15 EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change. EC3 Coverage of the organization's defined benefit plan obligations. EC4 Significant financial assistance received from government No financial assistance Sustainability Report

59 EC5 EC6 EC7 Market Presence Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation , 25 EC8 EC9 Performance Indicator Water EN8 Total water withdrawal by source. EN9 Water sources significantly affected by withdrawal of water. EN1 Percentage and total volume of water recycled and reused. Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12 MM1 EN13 Habitats protected or restored. EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. MM2 EN15 Indirect economic impacts Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Environmental Description Reported Page Explanation No. Materials EN1 Materials used by weight or volume. EN2 Percentage of materials used that are recycled input materials. Energy EN3 Direct energy consumption by primary energy source. EN4 Indirect energy consumption by primary source. EN5 Energy saved due to conservation and efficiency improvements. EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. EN7 Understanding and describing significant indirect economic impacts, including the extent of impacts. Initiatives to reduce indirect energy consumption and reductions achieved. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated. The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place. Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk , , 41 41, 42 41, Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. EN19 Emissions of ozone-depleting substances by weight. Partial EN2 NOx, SOx, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination. EN22 Total weight of waste by type and disposal method. MM3 Total amounts of overburden, rock, tailings, and sludges and their associated risks Black Mountain Mining

60 EN23 Total number and volume of significant spills. EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. None 43 No occurrence EN25 EN26 EN27 Performance Indicator EN28 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. Products and services Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Percentage of products sold and their packaging materials that are reclaimed by category. Description Reported Page Explanation No. Compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations , EN29 Transport Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. Partial Overall EN3 Total environmental protection expenditures and investments by type Performance Indicator LA1 LA2 LA3 Social: Labor Practices and Decent Work Description Reported Page Explanation No. Employment Total workforce by employment type, employment contract, and region, broken down by gender. Total number and rate of new employee hires and employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. LA15 Return to work and retention rates after parental leave, by gender. Labor/management relations LA4 Percentage of employees covered by collective bargaining agreements. 24, 25 28, 29 25, LA5 MM4 LA6 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Number of strikes and lock-outs exceeding one week's duration, by country. Occupational health and safety Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on occupational health and safety programs LA7 LA8 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender. Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Partial 35 36, 52 LA9 Health and safety topics covered in formal agreements with trade unions. 33 LA1 LA11 Training and education Average hours of training per year per employee by gender, and by employee category. Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. 29, 3 29, 33 Sustainability Report

61 LA12 Performance Indicator LA13 LA14 Performance Indicator HR1 HR2 HR3 Percentage of employees receiving regular performance and career development reviews, by gender. Description Reported Page Explanation No. Diversity and equal opportunity Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. Equal remuneration for women and men Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. Social: Human Rights Description Reported Page Explanation No. Investment and procurement practices Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken. Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Partially Non-discrimination HR4 Total number of incidents of discrimination and corrective actions taken HR5 Freedom of association and collective bargaining Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights. 19, 2 HR6 Child labor Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. 19, 2 HR7 Forced and compulsory labor Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. 19, 2 HR8 Security practices Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations. Partially 19 MM5 Total number of operations taking place in or adjacent to Indigenous Peoples' territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples' communities. 19 HR9 HR1 HR11 Indigenous rights Total number of incidents of violations involving rights of indigenous people and actions taken. Assessment Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. Remediation Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms , 2 6 Black Mountain Mining

62 Performance Indicator SO1 MM6 MM7 MM8 Social: Society Description Reported Page Explanation No. Local communities Percentage of operations with implemented local community engagement, impact assessments, and development programs. Number and description of significant disputes relating to land use, customary rights of local communities and Indigenous Peoples. The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and Indigenous Peoples, and the outcomes. Artisanal and small- scale mining Number (and percentage) or company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks. 46, 47 2, 46 2, 46 No artisanal or small-scale mines near our operations MM9 Resettlement Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process. No sites with resettlements Closure planning MM1 SO9 SO1 Number and percentage of operations with closure plans. Operations with significant potential or actual negative impacts on local communities. Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities Corruption SO2 SO3 SO4 Actions taken in response to incidents of corruption. Public policy SO5 Public policy positions and participation in public policy development and lobbying. SO6 SO7 SO8 Performance Indicator Percentage and total number of business units analyzed for risks related to corruption. Percentage of employees trained in organization's anti-corruption policies and procedures. Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Anti-competitive behaviour Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes. Compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Social: Product Responsibility Description Reported Page Explanation No. Materials Stewardship MM11 Programs and progress relating to materials stewardship. Customer health and safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures , 41 None No financial contribution done No legal action taken No fines paid PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. 44 No non-compliance issues PR3 Product and service labelling Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. 1, 45 We do not manufacture any products that require labelling or packaging Sustainability Report

63 PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes. 45 No non-compliance PR5 PR6 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Marketing communications Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Partially No advertising or marketing used for our products PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. 45 No non-compliance PR8 PR9 Customer privacy Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Compliance Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services No complaints No non-compliance GRI Application Level We self-declare the 214 Sustainability Report to satisfy Application level A of GRI G3.1 Guidelines. 62 Black Mountain Mining

64 Report Development: Green Evangelist, India Black Mountain Mining (Pty) Ltd. 1 Penge Road, Aggeneys, Northern Cape Province, 8893, South Africa Telephone: +27 ()