Empowering our employees

OUR EMPLOYEES ARE CORE TO OUR SUCCESS AS A BUSINESS. EMPOWERING OUR EMPLOYEES REQUIRES A SAFE AND HEALTHY ENVIRONMENT, OPPORTUNITIES TO DEVELOP AND RECOGNITION FOR GOOD PERFORMANCE. EFFECTIVE MANAGEMENT OF HUMAN CAPITAL ATTRACTS, DEVELOPS AND RETAINS THE BEST TALENT.

Our employees

As at 30 September 2010 a total of 23,915 employees were in permanent employment with Lonmin. This represented an increase of 10% compared to the same period last year. Of these employees, 23,822 are employed at the Marikana operations and PMR operations, 52 at the Limpopo operations and 41 employees at our head offices and exploration activities.

We have 9,131 full time contractor personnel registered on our database. The full-time employee equivalent number is significantly lower than the 10,497 reported last year. This decrease is due to improved measuring and management of contractor data and a drive to employ contractors on a permanent basis within Lonmin, where it makes sense to do so.

Our Human Capital Strategy focuses on strategically sourcing skills, encouraging and facilitating personal development, providing competitive recognition, and empowering women and historically disadvantaged South Africans (HDSAs). Fundamental to the achievement of our goals is that we are able to foster and maintain our sound relationship with employees and contractors.

EMPOWERING HISTORICALLY DISADVANTAGED SOUTH AFRICANS

Our management approach

We recognise that the South African mining industry has created both wealth and a problematic social legacy. We appreciate that Lonmin must play a role in rectifying historicalinjustice through the empowerment of HDSAs. Our approach is to ensure that the value that our employees bring to our operations is reciprocated by value that the Companyoffers to their careers and livelihoods and also to South African society.

Our performance

Highlights

• We have met and exceeded our target of 40% of designated groups represented in management with 43.3% of designated groups in management.
• In collaboration with the International Finance Corporation we have published a guide to integrating women into the workforce. This guide is aimed at the mining industry at large and has informed our approach to women in mining.
• The number of women in the workforce has increased by 52% since the start of the Lonmin-International Finance Corporation Women in Mining programme in 2007.

Challenges

• Our principal risk is the possible withdrawal of our Mining Licences resulting from failure to deliver commitments made in our SLP regarding training and empowerment of our employees and communities.
• We had three reported incidents of sexual harassment and four incidents of discrimination.

Focus in 2011

• UEmployment Equity: continuing to facilitate an increase in designated groups in management representation through prioritized recruitment and retention programmes. Increase the Balance Score Card weighting on the achievement of Employment Equity targets.
• Linking the performance assessment of individuals to the achievement of Employment Equity targets.

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