Northam Platinum : Sustainable Development Report 2022

Northam Holdings: Mining that matters

Sustainability report 2022

Introductioni	Our sustainability	Health, safety	Our environment	Our people	Our communities	Appendix
	approach	and wellness

Mining

that matters

Mining and processing of Platinum Group Metals (PGMs) is complex. The conversion of mined ore to saleable metal involves several stages of metallurgical processing.

Northam Platinum Holdings Limited (Northam Holdings, Northam or the group) is an integrated, mine to market PGM producer. Integral to our ongoing production growth strategy has been our investment in expanding the capacity and flexibility of our downstream metallurgical processing facilities. This is enabling us to treat growing production from our own operations together with that of our PGM recycling business, as well as to offer downstream processing services to other producers.

Our metallurgical operations are located at the Zondereinde mine, and comprises smelter and base metal removal facilities. Our main smelter facility boasts two independent furnaces, furnace

1 and furnace 2, which treat primary concentrates from mining. Each furnace has dedicated upfront dryers, and two separate and interchangeable iron-reduction convertors. In addition, we have recently commissioned a dedicated recycling smelter facility comprising two furnaces and their supporting infrastructure.

The smelter facilities produce convertor matte, which feeds our base metal removal plant, wherein nickel is recovered as a nickel sulphate precipitate, and pure copper plate is extracted in an electro-winning circuit. The remaining high-grade PGM concentrate at this stage is shipped to our toll refiners for separation into final saleable metals. We sell these metals to our customer base.

The photograph on the front cover of this report shows molten matte being tapped from our number 1 smelter furnace which was rebuilt and upgraded during the first half of this financial year.

Contents

Introduction

1. Our reporting suite
2. Our growing operations
3. Sustainability highlights
4. CEO welcome

Our sustainability approach

1. Sustainability framework
2. How we govern sustainability

1. Sustainability management

1. Stakeholder relationships
2. Our material issues

Health, safety and wellness

23 Safety

29 Health and wellness

Our environment

1. Environmental management

1. Climate change and energy

1. Air quality management

1. Water use and management

1. Biodiversity and land management

1. Waste management and tailings

Our people

63 Our people strategy

1. Learning and development

1. Diversity and inclusion

Our communities

1. Uplifting our communities

1. Responsible sourcing

Appendix

96 Assurance report

105 GRI standards checklist

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Introductioni	Our sustainability	Health, safety	Our environment	Our people	Our communities	Appendix
	approach	and wellness

Our reporting suite

This sustainability report complements our annual integrated report 2022 and the other online documents in our reporting suite. This report covers financial year 2022 and presents our sustainability performance and data from 1 July 2021 to 30 June 2022. This report has been prepared in accordance with the Core requirements of Global Reporting Initiative (GRI) Standards and the GRI index can be found on page 105.

The full reporting suite can be accessed at www.northam.co.za Northam's Sustainable development reporting guidelines

Northam Holdings:		Northam Holdings:		Northam Holdings:
Mining that matters		Mining that matters		Mining that matters

Navigation icons

We use the capitals concept to convey quantitative and qualitative information. The degree and nature of the impact that our material issues have upon our business and the various capitals have also been considered throughout the report.

Capitals

Financial	Manufactured	Social
Human	Natural	Intellectual

Stakeholders

Communities	Customers	Employees
Government and	Industry associations	Investors and providers
regulatory authorities	of funding
Suppliers of goods and services	Unions	Non-governmental
organisation

Annual integrated report		Annual financial statements		Summarised financial results
Northam Holdings:			Northam Holdings:			Northam Holdings:
Mining that matters			Mining that matters			Mining that matters
Corporate governance report		Mineral Resources and		Notice of the 2022
			Mineral Reserves statement		Annual General Meeting

Board and committees

A	Audit and risk	I	Investment committee
	committee
B	Board of directors	IT	IT steering committee
E	Executive committee	M	Management review
			committees
H	Health, safety and	N	Nomination committee
	environmental committee

1. Remuneration committee
2. Social, ethics, human resources and transformation committee

Sustainability report 2022

Northam Holdings:

Mining that matters

Northam Holdings:

Mining that matters

Remuneration report

Sustainability report

Links

Refers to other pages in this report

Refers to supporting documents on our website: www.northam.co.za

COVID-19 issue

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Introductioni	Our sustainability	Health, safety	Our environment	Our people	Our communities	Appendix
	approach	and wellness

Our growing operations

	Other operations
	33.7%
Polokwane	interest in SSG Holdings
Proprietary Limited, which

We are an independent, empowered,

Zondereinde

TOTAL EMPLOYEES

	provides security, cleaning and
Mokgalakwena	facility services to the group.

integrated PGM producer. Our strategy of growing production down the cost curve whilst reducing operational risk remains in place. Our recent acquisition of an investment in RBPlat is in line with this strategy.

10 721

JOBS CREATED

414

ƒ Mineral Resources 79.6 Moz 4E
ƒ	LoM > 30 years
ƒ	1 underground conventional

Mokopane

Limpopo

Bokoni

100.0%

interest in Northam Recovery Services, our US recycling operation.

Amandelbult

Union

Pilanesberg Sedibelo

	mining module
ƒ Mining Merensky and UG2
ƒ	2 PGM concentrators
ƒ	1 chrome concentrator
ƒ	2 TSFs
ƒ	2 smelter furnaces
ƒ	2 convertors
ƒ	1 BMR

Dwaalkop

• Mineral Resources (attributable)7.1 Moz 4E*
• New order mining right
• Undeveloped Merensky and UG2 Mineral Resources

Groblersdal

Twickenham

Marula

Modikwa

Two Rivers

Mototolo

Der Brochen

Mashishing

RBPlat*

• Mineral Resources (attributable) 23.1 Moz 4E*
• LoM > 30 years
• 3 underground mining modules (2 conventional, 1 mechanised)
• Mining Merensky and UG2
• 2 PGM concentrators
• 2 TSFs
• Purchase of concentrate agreement with Anglo-American Platinum Refining Services

• Estimated at 31 December 2021

Key:

●Wholly-owned operations ●Joint arrangement

●Significant interest

●Other peer operations ●Cities/towns

-Main Roads

Implats

RPM	Crocodile River
Rustenburg

Eastern & Western Plats Pandora

Eland

TOTAL EMPLOYEES

3 329

JOBS CREATED

1 720

ƒ Mineral Resources 14.4 Moz 4E ƒ LoM > 30 years

ƒ 3 underground hybrid mining modules ƒ 1 open pit mining module

ƒ Mining UG2

ƒ Undeveloped Merensky

Mineral Resources

ƒ 1 PGM concentrator

ƒ 1 chrome concentrator ƒ 4 TSFs

Pretoria

Johannesburg

Booysendal

TOTAL EMPLOYEES

7 102

JOBS CREATED

730

	ƒ Mineral Resources 101.3 Moz 4E
	ƒ LoM > 25 years with significant
		additional Merensky and UG2
		Mineral Resources
Emalahleni	ƒ	6 underground mechanised
	mining modules

• Mining Merensky and UG2
• 2 PGM concentrators
• 2 chrome concentrators
• 2 TSFs

0

50

100 km

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Introductioni	Our sustainability	Health, safety	Our environment	Our people	Our communities	Appendix
	approach	and wellness

Sustainability highlights

Health, safety and wellness

• A particular highlight was at Booysendal where we surpassed seven million fatality free shifts in January 2022
• Northam recorded an 99% recovery rate as a result of our agile response to COVID-19

Our environment

• In 2021 we set a target to reduce total GHG emissions by 27% and our carbon intensity by 60% by 2030 from a 2019 baseline. We have made good progress in drafting our roadmap to achieve these targets, which will include a combination of onsite solar installations and two wind energy projects
• Installation of two 1MW solar rooftop installations completed at Eland and Booysendal
• Scope 1 and 2 GHG emission intensity improved by 20% from 2019 baseline to 165kg CO2e/tonne milled
• Total water unit consumption has improved by 47% from 8.3 kl/tonne milled in 2016 to 4.4 kl/tonne milled in F2022
• Increased our biodiversity off-set area with an additional 171 ha to 3 339 haLA

Our people

• Grown total employment to 21 152
• Created 2 864 new meaningful and sustainable jobs in F2022
• 27% of permanent new engagements in F2022 were women
• 50% of bursars in F2022 were woman

Our communities

• Completed the renovation of education infrastructure of three schools in the Eastern Cape to the value of R14million
• Booysendal North operations five-year Social and Labour Plan for F2020 to F2024 has been approved by the DMRE in December 2021
• Eland five-year Social and Labour Plan for F2019 to F2023 has been approved by the DMRE in March 2022

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