Environment

By nature of our mining and processing activities we have an impact on the environment where we operate. Producing PGMs whilst limiting degradation of the environment and using resources more efficiently is at the core of the sustainable development business case for the Company. We share global anxiety around environmental degradation and resource scarcity in particular water and energy resources as we are dependant on these resources in order to function. By adopting new or cleaner technologies, we make production processes more efficient, reduce costs and improve quality environmental degradation. Our approach to environmental management is founded on our value of zero harm to the environment, best international environmental practice and compliance with legislative and other requirements. Management of our environmental aspects and risks is underpinned by our Safety and Sustainable Development Policy and supported by group targets, standards and guidelines.

In response to the global financial crisis, the Environmental Departments were restructured and focus given to efficient in-house consulting as opposed to the utilisation of external consultants, which has cumulated in approximate savings of US$589,544. Accountability for environmental management resides with the Board of Directors and our CEO. They are supported by the Environmental Department, which provides the Company policy, minimum standards and guidelines and audits the implementation of these requirements whilst line management remains accountable for ensuring effective implementation of these requirements through management systems.

On an international and national scale, we partake in a number of forums to contribute to government decision-making and to create a platform for collaboration with industry peers and government on issues pertaining to environmental management. We are a member of the South African Chamber of Mine’s Environmental Policy Committee and specific working groups, the Steering Committee for the Centre of Sustainability at the University of the Witwatersrand and of the ICMM working groups. We are also represented on a number of government committees, focusing on the development of policy and legislation.

Corporate and operational environmental risks are identified as part of the Company risk management programme on both a formal and an ad hoc basis. Our material issues in terms of environmental aspects include the following:

§ Obtaining or maintaining ISO 14001 certification at all operations;

§ Compliance with legislation, regulations and permits;

§ Access to, security of and improving efficiency in the use of energy resources;

§ Access to, security of and improving efficiency in the use of water resources;

§ Minimising impacts of our operations on air quality;

§ Understanding the risks and opportunities presented by climate change;

§ Eliminating waste disposal to landfill;

§ Responsible materials stewardship;

§ Supporting biodiversity and minimising impacts on land resources; and

§ Minimising closure costs and environmental risks through integrated environmental management and closure planning.

Key environmental risks and opportunities relating to each discipline within environmental management along with key strategies, targets and procedures for implementation, successes and challenges are discussed within the respective sections on the environmental disciplines. Initiatives to mitigate significant impacts of our products and services are reported on, and where possible the extent to which impacts have been mitigated.

We assess the eco-efficiency and health, safety and environmental impacts as well as the effects of incorporating best practice, more responsible behaviour and cleaner more efficient technology in the various stages of our products through numerous impact assessments, internal and external auditing, data trend analysis and life cycle assessments.