Last month Kumba Iron Ore (Kumba) released the company’s year-end financial results for the twelve month period ending 31 December 2018. The colossal iron ore company indicated that the significance of the results is the value the company continues to share with its stakeholders.
The company’s CEO, Themba Mkhwanazi said, “for us, long-term success can only be possible if we have mutually beneficial partnerships with our employees and contractors, our customers, shareholders, government, suppliers, and the communities we operate in. Our people are at the heart of our business and investing in them not only rewards them for their hard work, but it also strengthens our business.”
The world class iron ore miner sated that it supported its employees and their families with 4.6 billion rand in salaries and benefits. Kumba indicated that it remains in strong, long-term relationships with its customers – some of which have been with them for more than 40 years. “By improving the quality of our products, we believe we are better able to serve their needs,” Mkhwanazi said, adding that, “For our shareholders, including our employees and our empowerment partners, we created 12.7 billion rand of value in dividends”.
The company paid approximately R4billion over to SARS as its tax obligations during the year under review and a further R1billion in royalties. Kumba further stated that it procured products and services from black suppliers to the value of almost R12billion, of which more than 10% was spent on 267 host community businesses. “In line with our aspiration to create 3 jobs for every 1 permanent onsite job by 2025, these businesses created around 2 700 new jobs and provided income for over 16 000 people,” Mkhwanazi explained.
According to Mkhwanazi, R124 million was spent on social investment projects across the province. The company boasted about the “purpose-built” suburb of Siyathemba. Siyathemba was built in Kathu after the relocation of the many residents from Dingleton, where new mining operations have begun.
According to the Kumba’s Sustainable Development Report of the last four years (2014 to 2018) huge progress has been made. So far, Kumba has invested in excess of R300 million, a total of R313 461 670 to be exact, towards sustainable development in Siyathemba.
Local businesses that have benefitted from providing services under the Siyathemba settlement Programme include:
• Vikele Construction, specialising in construction and landscaping services;
• Louisque 703 and Jan Saal, specialising in electrical, demolition, landscaping and fencing services;
• Colren Trading; a women-led small business specialising in light scale construction;
• Mocwagole Passenger Transport, specialising in transport services; and
• Dingleton Skoonmaak Dienste, a women-led small business specialising in cleaning services.
“All these highlight the value that Kumba has delivered to our stakeholders including employees and host communities on inclusive growth in the areas where we operate. This demonstrates our commitment to President Ramaphosa’s 10 points challenge to the Mining industry,” Mkhwanazi concluded.